Money Management

Serious Saving – The Only Way To Safeguard Your Future?

Many people associate “saving” with “scrimping” – but is it really necessary to cut out on luxuries to build up your savings? Obviously, avoiding outgoing expenditure is an easy way to guarantee you have some money leftover to put into your funds – but an equally important part of saving is what you actually do with your money once you’ve set it aside.

The olden days of storing wads of £50 notes under the mattress are long gone, as savvy savers know they can take advantage of the huge number of savings products on offer to the general public. With the advent of the internet, it’s easier to compare savings accounts, and switch providers, than ever before.

Simply relying that your current account bank offers you the best long terms savings plan may be a costly mistake – with just an hour’s research, you could save hundreds or thousands by checking interest rates against the competitors. Sometimes there are factors to consider beyond high interest rates, such as easy access, initial deposit requirements or support for additional services like loans; regardless, looking at the market as a whole will help you.

The most efficient products to consider will be online savings accounts and cash ISAs. The latter can be especially high-yielding as these savings will be entirely tax-free for that financial year. However, there are limits on how much you can deposit (currently £5,640 – though with a stocks and shares ISA you can invest up to £11,280), which means if you are planning to invest significant amounts you will have to expand your portfolio.

Taking control of your savings accounts may not be the most entertaining thing you could spend your time doing – but if you think about how much enjoyment you could get out of the money you save, you’ll see how it is easily worth it.

Investing

5 Reasons to Look at Fixed Term Savings

As the knowledge towards sound investment opportunities grow, more and more people are finding it hard to resist the pull of fixed term savings rates bank accounts; and why not? This investment asset carries a number of advantages over other forms of investment. If you are looking for the perfect blend of low risk-high reward bank instruments, it is hard to look past the value that fixed term bank savings accounts offer. 

Here are 5 reasons why one should pay attention to fixed term savings accounts: 

  1. Risk mitigation. Sure, it is also sexy to invest in assets like stocks, mutual funds, or binary options among others but it does not mean those assets will assure you of solid returns. In fact, if there is any important lesson that one should take note after the 2008 economic crisis, it is that safer investment choices are in vogue, unless until the economy has fully recovered. Fixed term savings accounts offer minimal risks in terms of investment without compromising your money’s potential to earn.
  2. Profit. Fixed term savings accounts offer earning potential of up to 5% per year while savings accounts barely crack 1% and higher. Investors looking to balance risk and profit should take a good long look at fixed term investments to see if there is any other option that provides just as much return without incurring bigger risks.
  3. Fixed Term investments preach fiscal responsibility. The fact that money is tied up in fixed term investments mean people are less compelled to go out to spend it. This is advantageous for people looking for a reason to save, and not spend.
  4. History. Fixed term savings investments are not new; hence, the system has been tested again and again by many investors. Who says you have to reinvent the wheel to earn? By selecting more proven investment methods, you are more likely to reap the rewards of a sound investment.
  5. Competitiveness. There are many banks that offer fixed term savings accounts and these banks tend to outdo each other in terms of the attractiveness of the offer. Of course, that can only mean good things for the investor. Find the best offers and you’ll put your money in a better position to succeed. 

Fixed term savings accounts are great ways to save money without embracing unnecessary risks. Take a good long look at the offers and pick the one that’s best for you. 

Book Reviews

Should You Buy This Book? Review: The Five Lessons

TheFiveLessons I’m changing up the title to be more about you and less about me. I think that’s a little easier to write about.

This weeks book is The Five Lessons A Millionaire Taught Me About Life And Wealth.

I found it to be okay. It really doesn’t stand out from most books. That’s what I thought until I got to lesson 4. That’s where I really found this book to shine. In the beginning it talks about earning extra income and then it goes into 4 mindsets of the millionaire mind. This section really impacted me because I believe anyone that has trouble saving money can have a big change if they adopt these mindsets. I’ll give you the 4 mindsets but you really get the impact by reading about them.

The 4 mindsets are:

  1. Carefully consider each expenditure
  2. Believe that freedom and power are better than momentary pleasure
  3. Don’t equate spending with happiness
  4. Protect the nest egg

Should You Buy It?

This is a great book if you’re having trouble or you know someone who is having trouble getting finances under control. The most likely culprit is your mindset and this book will for sure help you or them with that. If this book just had the mindset section I would still recommend it. That part really makes the book and it’s truly worth the book price.

Buy It

The Five Lessons New

The Five Lessons Used

Debt Management

Don’t Let Debt Overload You

Debt is a huge burden when it’s accumulated for the wrong reasons. Using credit cards to by the next big thing is never the way to go when it comes to being financially responsible.

However there are times when debt is ok. For instance, you want to buy a house. Yes it is possible to buy one with cash but that would probably take a decade if not more. So getting a loan for something like that isn’t a bad thing. If you can benefit from going back to school in order to be able to get a better job in the future, private student loans will also be debt that is ok as it may be impossible to pay a university outright.

A car loan also isn’t that bad because a car is a necessity for most people. Of course you should be getting it for it’s purpose if you’re going into debt and not necessarily because it’s the best looking sports car available.

And another time it’s ok to get a loan….a significant hit to your finances. For instance you lose your job and you’re about to be homeless. Getting a loan to cover your mortgage isn’t the worst thing you can do. Of course, you should have cut everything to the bone as far as your expenses.

Debt is everywhere and most people have it. But don’t let it take over your life.

Surprised at the state of UK consumer loans? View how quickly UK consumers accumulate debt with this live debt ticker.

Breaking down UK loans infographic

This infographic is brought to you by QuickQuid

Investing

Learn to think outside of the box

There are many ways you can try to make money but the best way is by broadening your view. The strategy, analysis, and the other things will always be there but if you cannot your view, there is no way you can get out of your failures. Most people only fail in their trades because they have a fixed view. They cannot think outside of the box and they are always losing the money. Even when they are presented with the new opportunity, they compare it with the old opportunity and they do not place the trades. This article will tell you how you can broaden your view that will ultimately make you successful.

The traditional way of trading

Everyone in the United Kingdom knows about Forex trading profession. Trading is an extremely profitable business for the right candidate. By using a leverage trading account, you can easily make a big profit even with small initial investment. But always remember the risk factors involved in currency trading business. Those who trade with aggression are nothing but gambles in this industry. You have to use a strategic approach to find good trades. Even after doing all the calculations of won’t be able to win all trades. Though we have access to modern tools and EAs, it’s better to use the traditional way of trading. Try to understand the manual trading strategy and learn more to improve your knowledge.

Staying with the herd

We all know it’s better to stay with the herd. But this proverb is not applicable to the traders in the exchange traded funds community. Since the majority of the traders are losing money, it’s highly imperative you don’t follow the herd. Start using your knowledge and focus on the long-term market trend. Take all the time you need but prepare yourself properly. Learn to think outside of the box and implement a simplified strategy to make real money in this profession.

Commoners can never be the king

One of the things you need to know that, the common traders can never be the king. They only obey and listen to what the other people are telling them and as a result, they never get to make their profit. If you are always listening to your mentors, you can never learn to trade. Get out of your comfort zone and feel the difference. There is a saying that “miracle happens when you get out of your comfort zone” this is true and also for the traders. When you are placing your trades for the next time, think of this concept and try to be different. People may be surprised but do not get scared. This is how the professionals have grown their career and become successful among thousands of traders.

Broaden your view

One of the reasons people lose their money is for their fixed mindset. Your mindset will determine what strategy you will choose, what you will avoid and how you can progress in your career. They are more important than your strategy and they guide you in the right directions. If your mindset is fixed, you will have a hard time accepting new trends. Remember, there is no trend or volatility fixed. Everything changes and so need you. Try to view the market form a broader angle and you will be surprised. There are many chances and opportunities knocking at your door but you need to see where those doors are.

Do not get stuck in a position

Be like moving water and you will feel the freedom of placing trades. What most people do is they get stuck in their position which was developed a long time ago. Their strategies have changed, their experience has grown but they are still in the old position. You need a bigger seat when you grow up, always try to learn new things that may expand your view.