Month : January 2016


Building a Passive Income Stream with Forex Trading

There are some traders who take on a full-time position within the world of the Forex markets. However, this may not necessarily be a luxury that you can afford at the present. It is a well-known fact that many successful investors have started their careers only trading on a part-time business; perhaps a few hours after work. This type of passive investment strategy can prove to be just as rewarding and it may even allow you to become financially independent over time. How can such an income stream be generated and what guidelines should be adopted?

Appreciating Limitations

Any shrewd investment strategy will first need to address the degree of risk that is involved. Most passive Forex investors are the antithesis of the traditional day trader in the fact that they try to limit any perceived risks as much as possible. Furthermore, the funds invested represent capital that can be lost without a substantial negative impact upon their personal wealth. There is little room for gut instinct or one-off trading. Instead, a buy-and-hold approach is employed until sufficient wealth has accrued over time. This is one of the most conservative ways to make certain that profits are predictable and steady. Still, there is always a risk that a position may significantly change and this must be appreciated.

The Power of Diversification

The majority of passive investment portfolios are quite varied in terms of their assets and currency pairs. For example, one’s primary means to generate profit could consist of following the relationship between the United States dollar and the British pound. However, other pairs such as the euro and the yen could also exist alongside CFD positions. The main intent here is to offset potential losses associated with one position thanks to gains in another. A well-rounded portfolio is one that is capable of superseding any sudden volatility within the Forex markets. As this environment is so liquid, such an approach is indeed wise.

Choosing the Right Trading Platform

Many individuals are now choosing to trade from the comfort or their home or office. These so-called “armchair investors” will obviously need to select the most optimal trading platform for their needs. In theory, the best will be able to accommodate both short- and long-term strategies. There are several other variables to take into account. Examples of areas to highlight include:

  • The number of currency pairs available.

  • The ability to gain access to longitudinal charts.

  • The presence of automatic stop-loss algorithms.

  • Live access to all of the major markets 24 hours a day during normal business days.

CMC Markets is able to address these and numerous other discrete needs. The end result is a platform which is specifically intended to expedite any trade.

Passive income generation is an excellent way to enjoy financial independence over time. Particularly useful when one is approaching retirement or for those on a fixed budget, this method is continuing to gain popularity throughout the United Kingdom.

Home Ownership

Tips for Parents: How to Help Your Child Buy a House

The housing market has recently been difficult to access for first-time homebuyers. Coming up with money for a down payment and closing costs is an obstacle for many. Parents often offer or are called upon to help their children in purchasing a home. If you’re a parent who’s thinking of helping out, you’re not alone. According to a recent GfK Custom Research North America survey, 13 percent of parents with children between 20 and 38 years old helped their children to purchase a home in the last five years. Of those, 65 percent helped with the down payment and 24 percent assisted with closing costs. Helping your children to purchase a home is not without its pitfalls, however. Follow these tips to not only assist your children effectively, but also to protect yourself in the process.

Where’s the Money?

Before you make promises, examine your own finances. Are you in a position to lend a hand without jeopardizing your own financial well-being? Do you have funds available? The best funding source to help your children to purchase a home is discretionary cash. For example, consider using money that is sitting in a no- or low-interest savings account. Whatever you do, don’t be tempted to cash in on your retirement savings, retirement accounts, or IRAs. You won’t have time to recoup lost retirement funds before you need them. There may be hefty fines and tax consequences from using retirement money as well.

The real test of deciding whether or not to give your child a specific amount of money is to ask yourself if you have the ability to live a financially secure life without it. If the answer is yes, go for it. If not, don’t sacrifice your own welfare.

The Gift that Keeps on Giving

If you contribute money to the purchase of your child’s home, give it as a gift, not as a loan. Provide your child with a gift letter, in which you state that the money is a gift and that you do not expect repayment. Otherwise, it will be considered a loan, potentially making it more difficult for your child to qualify for a mortgage. The federal government regulates the procedure for gift contributions and restricts some types of donor sources. For example, sellers, builders, real estate agents, and brokers are prohibited from gifting money to buyers.

Other Ways to Help

If you don’t have cash on hand, there are other ways to help. For example, if your child’s income is too low to qualify for a mortgage loan, you can co-sign for the loan and refinance later in the child’s name. There are downsides to this type of transaction, however, so use it with caution. The loan will impact your credit, and if your child misses a payment, you will be held financially responsible.

Look into the resources that the government offers for first-time, low-income, or other specific types of borrowers. Nearly every state has some type of program to help with down payments, and many local housing authorities do as well. Some charities offer home buying incentives that contribute matching funds. Check out the latest programs from the Federal Housing Administration and Veterans Affairs.

As a parent, you inevitably want what’s best for your child. If you have the means, helping your child to purchase a house is one of the best gifts any parent can give.

Money Management

Cash Window

No-one particularly wants to take out a loan unless they feel they really need too. With jobs being quite hard to come by these days, and money running low, more and more people feel they need to borrow money for important things, such as paying bills, or being able to afford enough food for the rest of the month. is a direct pay day loans lender dealing in lifestyle loans. Like many loan companies out there, you need to make sure you understand what you are dealing with before you take one out. Many of them have high interest rates that you need to make sure you can afford to pay back. If you do this, you won’t have the worry when you find out later that you have more to pay back than you initially thought.

Sometimes, our monthly income doesn’t quite stretch far enough for us to be able to pay for things we desperately need. It might be that you can afford everything each month but can’t afford to save anything, making it difficult when things go wrong, for example your car breaking beyond repair and you need to buy a new one, or your child desperately needing some new clothes that you really can’t afford right now.

Cash Window allows you to pay the money back that you borrowed in a number of ways. You can set up a monthly direct debit to an amount that suits your financial situation and also have the opportunity to pay back more at some points than others if you can afford too. There’s no deadline to paying back the money which means you can substitute it into your monthly outgoings until it’s paid off.

You can decide on an amount (however big or small) that you need to borrow which is great, especially if you just need to borrow and extra £100 to see you through to the end of the month.


How to carry out effective credit check for renters

As a landlord, a good tenant is what you need to sleep easy at night. This is because you are guaranteed that your rent will be paid in good time and your property will not be damaged. When you have a bad tenant on the other hand, all you think about is the state of your property and investment while constantly receiving calls from angry neighbors.

Any prospective tenant can act as the best tenant in the initial stage of application, but to be sure that you are getting the best tenant, ensure you check rental history to be safe.

When finding a new tenant for your property, there are two choices, you can either hire a rental property management company to check for you and pay them a certain amount, or you can do it yourself.

In the case where you have to carry out credit check for renters yourself, the following are some of the steps you can follow to guide you:

  • Application request

You can do this by asking all the potential tenants to complete an application. You can either create your own personalized application or request for one from a real estate company. Ensure that your application form covers all the details you want to find out about the said tenant, especially the financial information, personal information and employment information.

Also, be sure to note that you might require to carry out a background check by crb direct if necessary and that by signing that application form, the tenant grants you the authority to check into his or her personal, employment and financial history.

In any rental application, the following details should be presented in the form:

  1. Financial information such as credit cards, bank accounts which include minimum monthly payments so as to provide an oversight on the tenant’s ability to pay rent every month.
  2. Current level of income- the duration that the tenant has been employed in his place of work and whether he has switched jobs and if so, find out why.
  3. Current level of income- does the income cover monthly rent payments and other living expenses.
  4. Previous landlords contact information and amounts of rent previously paid and the reason why the tenant left the previous property. This helps you assess whether there are any gaps in the tenant’s rental history.
  5. Details of their lifestyle which will help you find out whether they have pets, and the number of occupants.
  6. Personal references of the tenant.

After the tenant has filled the application form, read it through carefully to see whether there was any information omitted as this may be a red flag that the tenant is hiding something.

  • Credit Check

It is always a good idea to check the credit of a prospective tenant. This check reveals details about the tenant’s previous credit history. Some of the things to consider when reviewing a credit report include:

  1. Credit history- look out for any late payments, charged off credit cards, collections accounts, etc. This will help you not to entrust your property to a tenant with serious delinquencies.
  2. Current Debt- a tenant with maxed out credit cards or unpaid hefty loans may have a difficult time keeping up with rent payments.
Mind Over Money

How To Work Towards Financial Freedom

Financial freedom sounds like a wonderful dream that many people find hard or impossible to reach. However, the truth is, you do not need a lot of skill or education to start your journey towards financial freedom. Successful professionals are no more likely than ordinary folks to become financially free, because the rules governing financial freedom are quite different from what we are used to learning at school.

Why would I want Financial Freedom?

The goal of financial freedom is to be able to lead a lifestyle that you choose without having to worry about money. This seems like a big goal for many. The important thing to remember is that financial freedom is all about your time and your life, and not just about money. So if you can earn double what you are earning now by putting in twice the number of hours, that doesn’t seem like a great start to a journey you would look forward to. You should be able to make money without having to work as hard.

1 goes in 2 come out

Financial freedom is never achieved by working harder, only smarter. Of course this also requires hard work but in a different way. What you need to realize is that to be financially free, you will need to invest money to make more money. So, the source of your income is diversified and is moved away from the linear relationship of time and money. What this means is that you do not want to be working twice as hard to make twice as much. You could work the same amount, invest in good opportunities and let these investments make money for you.

Knowledge is power

There is no single investment that can be called best. There are thousands of opportunities available and different options suit different people, based on their appetite, personalities, financial position, etc. However, no matter what type of investment you choose, you need to know in detail about the market. Knowledge is indeed power in almost all types of investments. So if you are looking at real estate, make sure you understand how the market works and what kind of houses attract higher rental incomes. You should also know which places are best suited for this investment. If you are investing in the stock market, you need to carefully understand the different kinds of analysis and also know how to read the balance sheets of companies you want to invest in.

It takes time and effort to work towards financial freedom, but it is certainly worth the efforts. You will no longer need to rely on your next paycheck to meet your expenses and if you work smart, you can make enough so you can buy everything that money buys. Financial freedom is all about creating alternative sources of income so that you do not have to work for the money – let the money work for you and make more money. That, in a nutshell, is how financial freedom works.