Consumers debt is creeping again on our doorsteps; it seems that we quickly forgot the Great Recession. Debt of Americas started rising in 2014 and continued so far, in 2016 has come to the astronomical figure of 3,56 trillion. The job market is lacking in the U.S. instead of employing 160,000 new workers, it only opened the positions for 38,000.
Even though many people are doing great so far, these numbers should serve us as a reminder what should we expect if we aren’t careful enough. It’s important to make financial decisions based on own financial status because many things can give you superficial appearance.
Learn to make a difference between credit and wealth
During the recent financial crisis in 2009, revolving credit card debt rose at 98%. While people fight hard not to use credit cards and only in necessary situations, credit card borrowing is still on the rise. Though this might be a great news for retail stores and entrepreneurs, recent history indicates that consumers need to make a clear difference between the money they have and the money they borrowed and in this process avoid circular debt.
Consumers need to be very careful when paying with credit card and avoid making short – term purchases which they aren’t able to cover at the end of the month. It’s important to cover your debt and make sure you have a clean balance at the end of every month. In another way, they will end up in long – term debt which will be hard to clean.
Embrace affordable way of life
There is often a clear difference between consumers and government spending in the periods of recession. Harsh measures may be applied to compensate reckless spending which can indicate lower salaries but more expensive life. We have here two extremes which can doom the economy and provoke economic doom of households, where people struggle to become wealthier and to accomplish long – term financial independence and stability.
When the crisis times strike, consumers need to embrace new affordable and frugal way of life. What’s most important they need to recognize the crisis in advance and stop spending what they already don’t have. It’s the only way to get out of the crisis financially undamaged. But many of the American are yet to learn this because they live comfortable lives and think that crisis will never appear again.
If they have reasonable spending and borrowing policy and develop a frugal lifestyle, they will be able to develop long – term financial stability and never struggle for the cash.
Don’t buy stuff you don’t need
Many of us have a habit of buying stuff we don’t need, if we have one t – shirt, we want ten more. It is important to recognize the wasted money, why do you need a new car when you have one that’s working perfectly fine, you will only create a bigger debt that can affect your financial stability in the longer run.
If you still want that thing, don’t use your home budget, but earn some money aside, like trading binary options, with the help of auto binary robot you can become an expert and have money for your small pleasures. Read More »
Based on the data of the American Consumer Credit Counseling, around 80% of all Americans would help family members financially; the younger population is even more generous, 92% of them would lend money to the family. Every one of us comes to the point in life when is struggling for the money, and we always expect the family to help us first. But, what happens when we are the one who are supposed to lend the money?
According to ACCC, loans between family members reached an enormous figure in 2013, $89 billion and 15% of people who lend the money, didn’t expect the return. Americans rather choose family and friends to borrow money than going to the banks and taking loans.
Loans between family members is a delicate subject, and they need to be very careful because money may damage their family relations. When you are asked to lend some money, here’s what you can do, except keeping your eyes wide open, and maybe your wallet was hidden.
Don’t expect the return
This should be your starting point, when you are going into a family loan situation, expect never to see that money because you will feel surprised If the money comes and you will avoid disappointment if the money was never returned. When you are landing money, remember that there isn’t a gift money every money you lend should be properly returned, but in some cases maybe not.
Expect money in slow repayments
Family loans have different repayment dynamic than regular loans because the person you lend the money doesn’t fell the pressure like would normally do when doing to the bank. In most cases the family member will ask to borrow the money because he can’t get it in a bank or the interests rates are often really high. Borrowers of this money don’t take this loan seriously, and that’s why they have so casual approach. This is a specific situation because you can’t seek from friends and family interest and hope to have a good relationship.
Compose a checklist
Sometimes family member doesn’t have another alternative than to borrow money from the family, due to not – existing or damaged credit rating. This is a business transaction, and you should observe it like that. For example, some family member asked you to borrow money. Here’s what you should include in the checklist: has he asked me in the past to borrow money, did he return it, was it in the designed time, how are my chances for the return this time, why does he need the money? The most important question to ask him is, how are you going to repay me the funds? His budget might be already burdened with other obligations.
Advise him to take into consideration another job, to empower his budget. Trading binary options are a great source of income, and you don’t need a big investment. This website http://www.top10binarystrategy.com/ offers great opportunities for the start and teaches you how to proceed. Read More »
There are many non – financial decisions that at first sight don’t look like that, but they have the ability to affect your whole life, for example, earning potential, retirement funds, and debt. In this article, we are going to review three most common life situations which people should start looking from a financial perspective.
You may have finance and budgeting in your little finger, planned your whole life ahead of you, thought about retirement and you may still end up broke when you are 40. Divorce can take half of your assets and savings and obligate you to payment till the rest of your life. So, think wisely who you marry because this is one of the most important life’s decisions and can shape your financial state later. We often here term “good divorce”, but let’s get clear, there isn’t good divorce, only think about legal fees you will have to pay. On the other hand, staying married won’t guarantee you healthy financial environment either. When you choose a partner, apart from being in love, you need to have same financial goals and same attitude towards money. It’s important to discuss every financial decision with your partner and to make a right one, from the start. In this way, you will manage to avoid problems that may appear along the way.
Since the science has advanced to much, having children now is the matter of choice. You can find contraceptive in every pharmacy and decide when is the right moment for children. To give your children best possible upbringing, you need to have good financial status. Many couples consider having children as a serious decision that will affect their financial state for the next decade or two and all that connected with the loss of income. And sometimes, you might need to support your children when they are in their 20s because secondary schooling seems to be a common thing.
Having children shouldn’t be a deal-breaker in any couple’s life, that should be your personal choice. Once you set up your financial priorities, you will enjoy in parenting.
For most students, post – secondary education is a great opportunity to pursue their career. But, to have a successful career, you need to decide which degree you want to have. It isn’t a wise decision to invest tons of money in something that you will hardly ever use and something that won’t bring you income. The market is tough today, so you need to bring a right decision. It’s a nice thing to follow your heart, but you need to make this decision based on market’s demands. Lots of people can’t afford losing time and money without some financial return, so they decide to take part time jobs while schooling. Some of them even trade binary options to have pocket money, a great way to start is at this website http://www.top10binarystrategy.com/.
It is important to evaluate your future education and compare it with market’s demands because you need something that will bring you money. Read More »