Money Management

6 Reasons Why Investing In Certified Pre-Owned Cars Makes Sense

Buying a car is a huge investment. For this reason, you might be apprehensive about spending on a second-hand car because you are not sure you have a guarantee on quality. It is common to buy a second hand car only to have it quit on you after the first few drives.

However, you should not shy away from buying all second had vehicles. The key to ensuring that your investment in a second hand car will pay off is to buy a certified one.

For a used car to be certified, the manufacturer has to refurbish, inspect and then give certification vouching for its condition and roadworthiness.

Below are some of the benefits you will get from investing in a certified pre-owned car:

  1. Quality Standards for a bargain

For a car to make it to the certification program, it has to be in good shape. Car manufacturers work with specialists to select the best looking and best running used cars that will not present any problems.

After the manufacturer refurbishes the vehicle, it will have restored it to an ‘almost new’ state. To buy an ‘almost new’ car for a fraction of what you will use on a new car is truly a bargain.

  1. Warranty

An ordinary second hand car has no warranty. On the other hand, certified pre-owned cars have a warranty extension that includes a guarantee on the power train (that is, the parts that power the car and allow it to move, such as the engine)

  1. High inspection and reconditioning standards

The manufacturer stakes its brand name on the vehicle. For this reason, before release of the vehicle into the market for resale, it has to be subject to rigorous inspection.

You can therefore have the assurance that by the time the manufacturer allows issuance of a guarantee on a used vehicle, each part has undergone careful inspection and certification.

You can find out more about what constitutes a rigorous inspection by referring to the 150 or 300 point inspection lists.

  1. 24/7 roadside emergency assistance

You will get the added benefit of road side emergency service. As every car is bound to experience technical problems, knowing that you can call the manufacturer for assistance is of great comfort.

  1. Low interest car loans

Even one percent extra on a loan amount can interfere with your ability to repay your loan in the long term. A deal that offers you lower interest is therefore one to jump on.

As the car is almost in new condition, the bank will offer you a loan with better interest rates hence your loan will be significantly lower.

  1. Free servicing and Maintenance

Car maintenance can be quite costly. As your car will come with a warranty, the manufacturer could allow free servicing or free part replacements for a certain period or for a certain mileage limit. This will save you a lot of money.

Based on the above, you can see that investing in a certified pre-owned car is safe and cost-effective decision.

About the author

June Hempi has 10 years’ experience working as a loans officer. She has issued many loans for certified pre-owned cars to many satisfied customers. Read more on her website to see what she has to say.

Investing

How Penny Stocks Can Mean Big Profits

In the traditional investing world, penny stocks are looked upon with disdain. The pink sheets or OTC stocks, names thrown around with derision because of how penny stocks have always been looked at. Smaller cap companies were listed on actually pink-colored sheets back in the day and old school Wall Streeters looked the sheets and over-the-counter stocks as beneath them. Because of that, though, they have always had kind of an appeal for outsiders and mavericks.

Which is a great for day traders. Those labels fit day traders perfectly. Day traders by nature go against the grain and they are always searching for outliers. And volatility. Which you can get a ton of when you are trading penny stocks. Penny stocks are notorious for their volatility. The price goes up and down very often, due to fluctuations that can be discerned into a pattern. If you spend enough time looking at the screens.

Screen time is very, very important when you are trying to learn how to become a day trader. In the old days, logging screen time as a day trader meant putting some cold, hard cash into a brokerage account and trading it. No classes, no practice, no safety net. Just real, actual risk for your nest egg. Day traders in the late 1990s and early 2000s put their money on the line, took their lumps and learned on the job. Penny stocks were a way to make money for them, but they had lose money on penny stocks first, in order to find out what not to do.

That does not apply anymore. Today, you can use a day trading education site like Warrior Trading to get out into the world of day trading without actually risking money. You can take the online classes to understand strategies and techniques for finding the best penny stocks to trade. Then you can hang out in the chat room in order to understand how traders actually do it and talk about it on a day-to-day basis. And, best of all, you can spend time paper trading, which means getting into a simulated trading environment and trading virtual currency at the speed of the real market.

But before you do all that you want to be able to find penny stocks that are ripe for big gains. First off, what is a penny stock. It does not actually cost pennies. Penny stocks are generally thought of as companies that trade between $2 and $10 per share. That share price range can cover a whole range of companies, from fintech and biotech to mining concerns and low-level media companies. The range of business is huge. But the good thing is, you do not have to be an expert in those industries in order to trade the stocks. You just need to be able to look for patterns and jump on the trades early and ride them to the right result.

Profit/loss ratio is important and so is overall risk management. You can’t be right on every single trade, so you need to be prepared to be wrong about 40% of the time. Just try to make the profits at least double the losses so that the 60% success rate will leave you in the black.

Passion

Take A Small Step To Reach Your Passion

What is it that’s keeping you where you are in life? Why is it that you are living paycheck to paycheck? There’s nothing wrong with that life style, if that’s your passion. But if you want more, why don’t you have more?

Maybe you don’t have more because you’re not following your passion. It’s not easy to change your mindset and realize that you can follow your passion.

Look at me, I never thought that I would be able to help people with their financial life because of the way my finances were. But if you want something bad enough, you can overcome those obstacles that are stopping you.

I realized that the experiences and knowledge I gained from my past will help me get people to their dreams as well.

It’s all about taking small steps to reach your passion.

For instance, let’s say your passion is to be a professional golfer, but you don’t have any experience. What would you do?

Well, you could go to golf courses and apply to work in the restaurant or club house. You wouldn’t directly be working with golf, but you’d be surrounded with people that play it.

Maybe you’re working one day and you bring it up to somebody that you want to be a professional golfer. They may say “I know a guy that can help you out and teach you the ropes.”

Now you’re that much closer to becoming a professional golfer.

And this happened because you took a small step towards your passion. You just need to take that first step to surround yourself with your dream.

So don’t look at a job as a way to earn money, look at it as a way to lead you to your passion. If your job is only earning you money, then it’s not a job worth having.

So look at your job now and decide if it is teaching you anything about your passion. If it’s not then look for one that will. Don’t wait till tomorrow because that’s just pushing that small step further away and making it harder to take any steps forward.

Help other people take a small step by Tweeting this post and Facebook Sharing it.

 

So what’s your passion? What small step are you taking today to get you there?

Investing

Forex: the Trading Option That’s Taken the World by Storm

Forex or foreign exchange is the process of buying and selling currency. The simplest way to think of forex (or FX as it is sometimes known) is to think of a travel agent. When you go on holiday you buy the currency of the country you’re going to and sell the currency of the country you’re in. Essentially, you’re trading currency and this is very similar to forex trading.

What is Forex?

The forex market is one of the most liquid financial markets in the world and the daily volume of trade is around $4 trillion. This is because currencies have to be traded constantly in order for business to be conducted between countries. There’s no central forex location due to the global nature of the markets and its size means that it cannot be influenced by a single person or company. Realistically, it can only be shaped by world events.

Buying, Selling and Exchange Rates

Forex trading involves the simultaneous buying of one currency and the selling of another. Each transaction has to happen in a pair and each currency has an abbreviation e.g. EUR for the euro. The ability to trade these currencies stems from the fact that the value of both currencies in the pair is constantly changing.

In forex, any exchange rate between currency pairs are labelled as the bid price and the ask price. The difference between these two prices is known as ‘the spread’ and this is how your forex broker will make its money. As with any business, prices will vary between brokers, so shop around to make sure that you get the best deal.

Points and Pips

 

In order to turn a profit, you have to know exactly how spreads are measured. So, let’s look at an example:

If USD/EUR has a bid price of 1.400 and an ask price of 1.403 then the spread is three points or, as they’re known in the world of forex, three ‘pips’. A ‘pip’ is the smallest denomination that a currency can move by and this is the same for all currencies the world over.

How Often Can You Trade?

Due to the fact that the forex market is global and doesn’t have a central base, you can trade whenever you want from anywhere in the world. The forex market does not open at weekends, however, and this is the only time that you cannot place a bet. Just think of it being open 24 hours a day, 5 days a week. This means that you can trade at practically any time you want.

So, Why Invest in Forex?

If you regularly keep up with the news and follow the latest financial announcements then you have the opportunity to make a profit from forex. There’s no experience required and you can start from scratch whenever. Try watching some educational videos on trading basics to learn more and, if you think that forex is right for you, find yourself a broker and start investing. 

Money Management

Is there an alternative to using a payday loan?

Very few of us can get through life without getting involved in some kind of loan application process.  Even if we don’t want to borrow money, it is more or less forced upon us if we want to buy a home.  But when it comes to borrowing smaller sums of money, there are several alternatives.  But before you decide which the best one for you is, consider your financial position and your circumstances.  It is not always the traditional ways of borrowing which are the best.

With a payday loan you are not just talking about a lesser period of borrowing but also a much faster processing time.  Long terms loans (mortgages, personal loans) can take weeks to process and intense credit checks.  Because payday loans do not involve the same type of credit checks, they may be easier to obtain if your credit is less than perfect. 

Companies like wonga offer a short term loan which is simple to obtain via a very user friendly website.  These types of loans are also a good alternative to using credit cards or bank overdrafts as the repayment date is set when you take out the cash advance.    Referring to these types of loans as payday loans is actually misleading.  A payday loan implies borrowing against your salary and some companies do this by taking post-dated cheques etc. to guarantee the loan.  A loan from wonga does not work in this way.  They check your details online and within minutes the money can be in your chosen account.  You then just have to pay it back, in full, on the chosen date.

But under what circumstances might a short term loan be useful?  Basically any situation where you have run out of funds and need money in an emergency.  Imagine the nightmare scenario that you are unable to pay the monthly repayment which is due on a long term loan like a mortgage. Missing this payment will not only cost you interest charges and fees but will immediately impact upon your credit file, giving you a black mark going forward.  And once you have a black mark on there, it is not that easy to get rid of.  Using a short term loan in these circumstances enables you to make the repayment, thereby preserving your prising credit history and without costing you a fortune in interest charges.  You simple pay back the money as soon as you have cash available, which has to be within a month or less. 

So there are plenty of alternatives to the unfortunately labelled ‘payday loan’.  A simple search online will give you plenty of options and it is up to you to choose carefully and only deal with the reputable, well known, branded companies.

Borrow in haste, repent at leisure so the old saying goes.  But this does not have to be the case if you research your chosen method carefully and comply fully with the payback terms.