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April 17, 2017
Whether you are saving for a new car, a special holiday or a new baby, you need a plan to get you there. It will likely mean sacrificing some of your monthly luxuries for a while, but most of us have corners we can cut somewhere in our budgets. If you plan ahead you can...
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Making the decision to buy your first home is an exciting one. From researching locations to finding and viewing properties, it’s easy for first-time buyers to get caught up in the thrill of purchasing their dream house. Before allowing yourself to get carried away, there are key factors that should be considered regarding the investment....
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Earning money is never an easy task. If you want to know the sum that you can make from 1 million dollars per year, you can’t exactly provide the digit amount. It depends on a number of factors. These factors include the interest rate. If you don’t have any knowledge of the economy and market...
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Manage Your Money: How to Stop Mindless Spending and Save for What Really Matters

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budgetWhether you are saving for a new car, a special holiday or a new baby, you need a plan to get you there. It will likely mean sacrificing some of your monthly luxuries for a while, but most of us have corners we can cut somewhere in our budgets. If you plan ahead you can make it work and you might not even notice where you have cut back.

Step One: Take a good, long look at your monthly spending

Track your spending religiously for a month if you don’t already have a good idea of what you have going out. Once it is all on paper, you will see exactly why you don’t have any money left at the end of the month, and it will be obvious where you should be cutting back. It’s all about shifting priorities. Take a few hundred off the entertainment budget and move it over to make a credit card balance disappear. Cancel your gym membership and do home exercise videos or go for long walks instead. Remember to pay off your credit card balance each month going forward, so it doesn’t get out of control.

Step Two: Set a goal and visualize yourself reaching it

Maybe your goal is to reward yourself with a new car. You work hard, and you should be able to drive your dream car one day. The small sacrifices you are making in order to put money away for a new car will be much easier if you spend time visualizing yourself driving that Dodge Challenger down a long, winding road into the sunset. If your goal is a once-in-a-lifetime trip to Italy or Australia, print out some photos and put them up on your fridge where you will see them every day. Better yet, put them in your wallet to remind you why you aren’t doing any impulse spending.

Step Three: Make your money work for you

“Spend” your money ahead of time. That is, have each dollar allocated to either a regular monthly budget item, your retirement savings account, your special savings account, or bills. If all of the money is spoken for, there won’t be any lying around, tempting you to overspend. Many people find that living on a Zero-Sum Budget works wonders in helping them save for their goals.

When you are getting used to your new budget, you will have to work on your willpower. Know where you are tempted to spend in excess of your budget, and avoid those places altogether. And if you see something you really want to buy but it will mean breaking the budget you have set, ask yourself, is it worth more to me than my goal of a new car or a trip to Italy? If the answer is no, your budget is safe, your goal is in sight and that thing you thought you wanted will still be around when you have reached your savings goal.

New Beginnings: 6 Challenges to Consider Before Signing for Your Starter Home

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new-home-1540889_640Making the decision to buy your first home is an exciting one. From researching locations to finding and viewing properties, it’s easy for first-time buyers to get caught up in the thrill of purchasing their dream house. Before allowing yourself to get carried away, there are key factors that should be considered regarding the investment.

As a homebuyer looking for a starter home, the first step should involve asking various questions that will determine if the time is right. Considering factors like your financial situation, personal life or career status will help you understand if you’re ready to invest in your starter home. Below are just a few questions that relate to your readiness to buy your first home: 

Have You Considered All Costs?

All too often first-time homebuyers base their budget on the sale price of the home and the mortgage payments they will have to make. The reality is that buying a home comes with an array of added costs that are generally overlooked by new buyers. These hidden costs include those coming from home inspections, appraisal fees, closing costs, moving expenses, homeowners insurance and an array of others.

Homebuyers should consider all the costs that come with buying a home so as to have a comprehensive understanding of what they are getting into. Thinking about these added costs can also help minimize their impact, such as comparing homeowners insurance rates online to find the most affordable insurer to work with through platforms like CoverHound.

Do You Have Enough Money Saved?

Having money saved up prior to purchasing your first home is beneficial for a number of reasons. First off, it allows you wiggle room in case any renovations or repairs need to be made prior to moving in. Second, the more money you have saved, the more likely you are able to provide a substantial down payment. Down payments are crucial to getting you a good rate on your mortgage.

Is Your Credit Score in Good Standing?

Your credit score plays a major role in determining what interest rate you will receive when taking out a home loan. Before thinking about buying your starter home, take a good look at your credit score and decide if it’s the number you want to go in with.

If you made some financial mistakes in the past and are now working on improving your credit score, it may be best to hold off before buying a home. Holding off and waiting for your credit rating to increase will pay off immensely in the long-run and is often times worth the patience.

How Long Do You Plan on Living There?

Real estate agents and financial experts generally suggest the “five year rule” when buying a home. Although there are other factors that influence how long to hold on to your starter home, the rule states that it takes roughly five years for homeowners to recoup the expenses of buying and selling.

If there is any doubt that you will need to sell earlier, consider holding off on the purchase until you’re in a good position to settle down.

Are You Buying with a Significant Other or Individually?

Most first-time homebuyers today are less likely to be married than in previous years, according to a Zillow analysis. Buying a home with a spouse or domestic partner can be beneficial for the process, as combining resources and cash gives you more options and capabilities.

If you do decide to buy with another person, make sure to have some ground rules and go over any concerns or questions either party might have. This will help you avoid any unforeseen complications that could come up in the years following the purchase.

Are You in the Right Place in Your Career for this Investment?

This questions not only considers your current place of employment, but also the stability of the job, whether you are considering career changes or any other employment-related concerns. When looking to buy your starter home, make sure every factor that involves your career is stable and secure, and you’re not considering any major changes.

Buying a starter home is an exciting time for first-time buyers. At the same token, it can be a challenging and confusing process. Asking yourself the questions listed above, and any others that may be relevant to your situation, will help in avoiding future obstacles in the near- or long-term future.

How Much Interest Does 1 Million Dollars Earn Per Year?

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How Much Interest Does 1 Million Dollars Earn Per YearEarning money is never an easy task. If you want to know the sum that you can make from 1 million dollars per year, you can’t exactly provide the digit amount. It depends on a number of factors. These factors include the interest rate.
If you don’t have any knowledge of the economy and market conditions and where you invest, it is better to hire the CFA (Certified Financial Planner) or CPA (Certified Public Accountant) who will provide you good advice regarding your money.

What are the economic conditions? Whether there is instability? Inflation rates? Loan rate? And a lot more. You need to know each factor first to estimate the interest you can earn. If the interest rates are higher, it is better as it can result in earning a significant amount of money in the long periods of time.

A million dollars is a great amount of money, and one can get various amounts of interest per year by investing it in different sectors. But this much amount of Defining the exact amount, however, is not possible as the number varies relying upon the kind of investment that you do other than the factors mentioned above. There are various options and ways in which you can invest the million dollars.

US Treasury Bonds

The first way where you can invest million dollars is through US Treasury bonds. The present rate for a 30 year US Treasury security is 3.08% so you would gain roughly $30,800 from the one million dollars every year. That’s a good investment. Depending on the country you live in and the current rate, you can speculate the amount you can earn.

Savings account

If you decided to put the 1 million dollar saving account, it is not a good choice of investment as you could expect to earn only one thousand dollars each year which is a very little amount.

Stock Market

Putting your money on the stock market can offer good returns for individuals needing to invest one million dollars, yet they are far riskier than any of alternate securities. But higher risk, higher returns. The risk can be reduced by investing your money in various companies that have been there for a long time and earn stable profits.

One good advantage of investing in more than one company increases your portfolio, in case you lose money from one company, you can earn from the other. This diversification reduces risk to a great extent.

Mutual Funds

Mutual funds are another option, and it is less risky, but at the same time, the rate of interest is also lower. The interest rate for stocks also varies. It truly relies on upon your investment strategy and market conditions.

This interest rate fluctuates. For instance, if you have invested one million toward the start of 2003, you would have earned an arrival of 3.54% per year. That would equal with $1,326,817.31 per year. If you invested the same amount at the start of 2007, you’d have an annualized return of – 2.48%, which means you will lose an average of $18,906.27 a year.

Get Corporate Bonds

Corporate bonds are another investment choice for 1 million dollars. The return on these government bonds are low, and you can lose money depending on the inflation rates. But in 2017, inflation rates are expected to rise. So instead of investing in government bonds, you can invest in high credit companies as they pay higher yields with limited risk.

Real Estate

A Real Estate Investment Trust (REIT) is an organization that owns and manages the properties like buildings, shopping plazas, and offices. This sector usually gives a high return, and so there are many advantages of investing in this sector. Real estate is a tangible asset, so inflation is a hedge against inflation. Investors hold an asset that appreciates in value and at the same time get profits.