bookmark_borderFinancial Investments

The idea is to start small; you do not need pots of money to invest. Here is a list of possible areas where you can venture into to understand smart investing. These financial investments should be at your New Year’s resolution list as they are a combination of risk-taking, investment amount and return of investment (ROI). These investment ideas will allow you can to balance your short-term and long term financial interests.

Real Estate: This investment option carries medium risk and investors need to select the right property to get the highest return.

Unit Trust: This is a collective investment plan that permits small and medium investors with similar investment ideas to pool in their funds and invest in a portfolio of securities. The pooled funds include cash, bonds, shares, properties etc. These are long-term, safe, and adopt a steady approach towards investing. By investing in unit trusts, investors with limited time can gain higher returns from capital markets. This investment option carries low to medium risk and suits the common man who is interested in equities but does not have the funds to expand independently.

Fixed Deposits: Fixed Deposits (also known as Time Deposits) offer a guaranteed rate of return on your investment. Almost all Malaysian banks offer fixed deposit accounts as they ensure hassle-free management and has government insurance. Moreover, fixed deposits offer a higher rate of interest than savings accounts and can be open with a relatively low minimum investment amount.

Invest in gold: Investing in gold is always considered good as it is an indispensable asset across cultures and geographical boundaries. Gold investment can either be made in physical form (like buying gold jewellery, gold coins, or bars) or by means of ‘paper gold’ (via Gold Investment Accounts of banks).

Insurance: Investment linked insurance policies or ILPs provide extensive coverage and a good return upon maturity. These investments do not require large investment capital.

Amanah Saham Bumiputera: This is a low-risk investment option that you can consider if you are planning for long-term investment. This is tailored specifically for Malaysian Bumiputera and is managed by Amanah Saham Nasional Berhad which is a fully-owned subsidiary of Permodalan Nasional Berhad.

bookmark_borderWays Refinancing Your Home Loan

You could consolidate your debt

Many of us have multiple debts like car or credit card along with our home loan. Often our car and credit card loans have pretty high interest rates, meaning more out of your pocket.

Refinancing could give you the opportunity to merge your debts and potentially reduce the overall interest you’re paying, streamlining all of higher interest debts into one lower interest debt and reducing your monthly repayments.

The interest rate on a home loan is usually significantly lower than the other types of credit. Helping you to save on interest charges and pay debt off sooner.

You could release some equity in your current property

You may be thinking about joining the thousands of Australians that have invested in property, renovating your home or traipsing around Europe on that trip of a lifetime. With your current home usually being your most valuable asset, it only makes sense to release as much of the value in your home as possible.

Home equity is the difference between your home’s current value and the balance of your mortgage. For example, if your home is worth $600,000 and you have a mortgage of $200,000 remaining, your home equity is $400,000. That’s money that can be used to build wealth.

Not so long ago, the only way home owners could access their home equity was to sell up and upgrade to another property. These days, home loans are flexible and it’s possible to get access to the equity in your home without having to sell up. Reviewing your home loan can help you see exactly how much equity is available to you, and refinancing can help you access the equity to use for other things.

Your lender’s rate is no longer competitive

We’ll start with the popular one first. One of the main reasons people choose to refinance their loan is to get a lower interest rate, and put more money back into their pockets instead of paying the banks.

When done correctly, refinancing your home loan could save you thousands over the life of your loan, and free up cash now.

You could switch between variable & fixed rates

Another popular reason to refinance your home loan is to switch between a variable rate and a fixed rate. With a fixed rate, some want peace of mind. That is, knowing exactly how much their monthly repayments will be without the possibility of it changing for a set period is worth a slight increase in rate.

Conversely, you may decide you’d like to take advantage of a lower variable rate as you can accept the risk that rates may rise in future.

bookmark_borderAbout Merits of Credit Cards

A credit card can free the holder from the headache of obtaining funds. It is a good source of all-time money. But, it is necessary to educate students which card is best for them. Student cards invariably have low credit limits. This is done to put a cap on student spending. This will make the student self-dependent and help him/her take his own decisions when it comes to deciding his needs and his wants. Normally, a student spends on books, CDs, food, clothes and electronic accessories. Student cards which are jointly issued with a parent offer two bills, one to the parent and the other to the student. This enables the parent to check the spending patterns of their ward.

Student cards are fairly easy to get. All banks are falling over themselves to issue their own credit cards to students. This normally happens with students who are joining some professional course like engineering, medical, management, etc. Students from these courses generally need cash at a short notice.

There are other cards for adults, which offer many benefits to the user. Some of these benefits include no surcharge for fuel on certain petrol pumps, discounts on ticket booking on the Indian railway website, discount offers in dining at fine dining restaurants, preferential health insurance, accidental insurance benefits, discounts in film theatres, reward points on spending on the card, discounts on food at well-known outlets like Pizza Hut, Coffee Day, Dominoes, etc. Additionally, some cards also offer doctor-on-call, concierge services, cash back on paying utility bills, etc. There are a lot of credit cards from other banks or financial institutions, all of which have tie-ups with their partners through which they offer discounts to customers. Credit cards are particularly useful when we must cash at a short notice in the time of medical emergencies or calamities.

bookmark_borderMake Cash Online Fast

Crafts can be sold online if you are handy at making something quickly that people may want. There are also stock photos that can be sold. They are simple to take. You can post them to your stock photo account. This money can be made passively.

When a product is flipped, it’s bought and sold for more. This is another method of how to make cash online fast. Some people invest time and efforts in to repairs when they flip items. You can flip by finding good deals as well. Web domains can be flipped. Topics, industries, and keywords should be researched. Those that are trending buy relevant domain names. They are sold to parties who are interested in buying them. You can grab a domain name before a business opens in your area. You can offer to sell them the domain name at a decent price. There is a decent income from this method. Wholesale items have good deals as well. If you know a wholesaler, you can get an excellent deal on some items.

There are apps that can be used to make money online as well. Gigwalk, CheckPoints, and WeReward are three examples of those apps. You can get paid for doing marketing tasks which may include scanning items at a grocery store.

Filling out online surveys is another method of how to make cash online fast. They generally pay you a few dollars for each survey. The surveys are short. There is very little effort involved.

You can also enter sweepstakes. If you select sweepstakes carefully, you can get some free items that you can sell online for quick cash. You can also search for internet databases. Some of these databases are free and some are subscription. These databases can get you into thousands of sweepstakes. When you enter sweepstakes, you need to make sure the prize is an item that you can make good money off of. Another thing to consider is checking the internet classifieds for quick jobs as well.

bookmark_borderControl Your Financial Future

Learning how to significantly raise money can dramatically change your life. All it takes is commitment toward the power and independence that come from knowledge. This may not be a difficult task for some people to achieve with money; however, it is for others who have no money or source of income. People who are struggling to survive are not concentrating on investments.

The first key to put some extra dollars in your pocket is positive results. All it takes is a commitment to save money. Just as every pound you lose maintains the willpower you need to stay on a diet, every dollar you actually save will reinforce your commitment to financial success. This means understanding your needs to remain financially balanced.

The second key is to understand how financial experts and institutions operate. Keep in mind for which these people work. No stock broker will tell you to take money out of your stocks and invest in real estate. Your banker will never tell you to take money out of your savings account and go see a precious metal dealer, even if he or she foresees a weakened or devalued dollar.

This does not make them a bad person. They have a job to do and are regulated by various government agencies. Their primary job is to keep their institutions afloat and to see things from a professional prospective. Not to go out of their way to give you the big picture. Although they want your business, be aggressive and ask questions. Never forget that banking, securities, real estate, and insurance are among the most competitive industries on earth.

The third and final key is to structure your spending. Before making a major purchase, research the product or service and get a better idea of what the item should cost by setting a fixed amount aside for that purpose. Paying a few extra cents or even dollars now and then should not do much damage, however, convenience or some other benefit of making the purchase then and there warrants paying a little more. Realistically, overpaying on major purchases can mean significant loss of future purchasing power.

bookmark_borderGet a Home Renovation Loan

Probably because of their discomfort while living in a home that they don’t like, they would want to renovate as soon as possible. They either use their savings or loan money from banks just to have their desires granted. But should a person get a loan for renovation or should they save money until they have enough?

Some renovations are needed immediately. For example if your heating system is not making enough heat and winter is coming. Naturally, you want to get a renovation company to modernize your plumbing and make your home more efficient in keeping heat inside during winter. You should loan for that renovation.

On the other hand, if you simply want to make your home more beautiful or look more modern, then you should save money for the renovation because these are not urgent and they don’t require immediate attention.

Note that “urgency” is an ambiguous term as it can mean different things for different people. For example, a person who is always stressed out may consider renovating his house as urgent because he only feels more stressed when he comes home after work. Meanwhile, for others who are not as stressed as the person from the previous example may not consider renovation an urgent issue. It all depends on the person because everyone experiences the world in different ways.

Loaning for a home renovation is okay when the renovation is really needed and if there is no other option. However, loan will make the renovation more expensive than it should be because now you have to pay for the interest of your loan.

bookmark_borderMost Common Sales Tricks

  • The Psychology Test
    To be successful in selling to you, a seller must quickly work out what kind of a person you are so they can adjust their sales pitch to appeal to someone like you. If you’re a positive, extrovert, glass-half-full person, then they’ll probably try to sell the dream – stress how what they’re selling will improve your life. But if you’re more of a glass-half-empty worrier, then the seller will sell security – focus more on the features and performance of what’s being sold.
  • The Make-a-Friend
    Sellers will have many tricks to make us like them as the more we like someone, the more likely we are to buy from them. One of the most frequently used techniques is called active listening. With active listening the seller will use all kinds of non-verbal gestures such as leaning forward, inclining their head slightly to one side, widening their eyes, pursing their lips thoughtfully and stroking their chin to show their interest in us. Some sellers even sit in front of the mirror at home practising their active listening skills.
  • The Trust Me
    Many salespeople are trained to portray themselves as trusted advisers helping us make the right buying decision rather than being seen as commission-hungry vultures slavering to get hold of our money. One of many ways of achieving this is the same side of the table. Rather than standing or sitting opposite the customer creating a situation where the seller and buyer are like adversaries facing each other, the seller changes their position so they’re standing or sitting almost beside the customer as if they’re working together with the customer to solve the customer’s problem – which house, car, TV, phone or insurance to buy.
  • The Persuaders
    Having managed to get us interested in buying something, the seller then needs to get us to make the decision to move ahead. To put pressure on us, they might try the closing door – suggest there’s only a limited time to get the deal they’re offering; or the phantom buyer – tell us there are other people interested in buying what we want even if this isn’t true; auction fever – use other real or phantom buyers to make us feel we have to offer a higher price if we’re to get what we want; or even the deliberate mistake – when adding up the price of something, they deliberately ‘forget’ some small part so that the buyer, thinking they’re smarter than the seller, rushes to complete the deal.
  • The One-Step Negotiation
    In the West, we’re used to most things we buy having fixed prices and so often feel uncomfortable haggling over price. Sellers understand this and will often quote an inflated price then allow us to negotiate a small reduction. Relieved at having supposedly achieved a price cut, most of us will then buy. Very few buyers will do two- three- and even four-step negotiations.

bookmark_borderReasons to Live Without Credit Cards

  • The higher cost credit accounts normally add a reward or award program. This works by your accumulating points on a per dollar spent basis and once you have enough points you can redeem on a variety of goods. Having rewards and awards benefit is just another thing on the list to do in a busy life, so get rid of your points and buying things you don’t really need.
  • Simplify your life and have less bookkeeping and account paying to do.The less accounts you have the less you need to look after, particularly if you are a busy business person.
  • To make payments easier just have a debit card attached to your relevant bank account which allows the card to be used as a credit account anyway. This way you can avoid any extra fees. Just be sure to have some money in your account.
  • By having these cards, you may at some stage miss a payment or overdraw your limit and be stung with fees or the big interest charges they have. Not having one avoids these fees.
  • For some it is just a recipe for disaster to have a credit card, each requires discipline and control. If this is not you or for younger people try cutting them up. It can be an expensive lesson to spend and spend with ease only to have year of repayment pain ahead of you.
  • Security risks are getting higher. Commonly unauthorised transactions occur recently in investigations and explanations, phone calls to phone centres yuck. Swipe coping and paywave security are not overly trustable. So beware your credit card security too.
  • Try transferring your card to a low interest period card transfer. Then once repaid; you can get rid of it.
  • Making the mistake of not repaying a credit account can end up as bad credit history for you. This will mean you may not get loans in the future.

bookmark_borderExchange Investing Money

The currencies exchange rate is the gain, and in exchange investing money slightest movement in the currency can fetch these companies thousands and thousands of dollars as they invest in bulk.

Forex trading is somewhat different than equity trading, and even individuals can attempt it, but exchange investing money is mostly tried by HNI (High net worth individuals) as it requires one to deposit a heavy sum. In the same D-mat account one needs to deposit extra and your account will be opened for exchange investing money.

There is a simple rule: Exchange of currencies from one hand to another at an ongoing price during the market hours. Exchange investing money is all about investing money in foreign currencies. One makes a profit by selling the currency at a higher price than the buying price. The economy of the country, its GDP, inflation everything counts in the rise of its currency. If US dollar slides because of any reason it is likely that the foreign currency will gain ground.

Exchange investing money is a highly liquid investing and one gets to trade 24 hrs a day. So now it is pretty much clear that money used to invest in money is called Forex or foreign exchange. One can determine currency moves through charts and graphs as well. Make sure to read about currency frauds and scams before venturing into this field.

The bottom line: exchange investing money is a very lucrative field, but only when you focus all your energy there. If you don’t know what you’re doing, this can be devastating to your portfolio.

If you do plan on investing with this field, take your time, learn the ropes, and make sure you know what you’re doing before getting in here. Once you are financially educated, you can start investing, and watch yourself get rich from exchange investing money.

bookmark_borderMoney Market Accounts

Money market accounts are usually subject to higher interest rates. This means that you get more for doing essentially the same thing as keeping your money in a classic savings account. This is because money market accounts are pooled in a different fund used by investors to produce higher profits. This more aggressive form of investing can potentially open up to loss of funds, but this is highly unlikely and has never actually occurred. With the risk being this low, the higher interest rates are widely accepted as a smart trade off.

Another benefit is that you have more access to the money you deposit into it. Unlike a savings account where you may withdraw a maximum of three times per month, you are allowed to withdraw or transfer out six timers per billing statement. Additionally, most banks will allow you the option to write checks directly from it. Even better, many banks will also allow you to pair a debit card with the account for easier withdrawals and spending. This allows for greater flexibility than a standard savings account.

As mentioned above, these accounts have never lost any money. This makes them a safer place to leave your money while still receiving a decent return. With the volatile nature of the stock market, this is certainly a better guarantee to maintain and build your funds.

While a money market account is more appealing than traditional savings in terms of returns, it certainly does not compare to the returns of a mutual fund or other stock options. If your primary interest is to generate greater income, then this safer option might not be for you. To put it into comparison, a stock can return on average 8-10% while these bring closer to 2-4%. At best, you are looking at making half of the amount.