What to Know About Loans

If someone wants to take a loan and asks for your advice, you probably are more than willing to help, but do you really know what a loan is, what you should know before plunging into the ocean of loans. Now we all know loans are available for the purchase of houses, consumer electronics, refurbishment, education, marriage, health and many other reasons that are not possible in your current budget.

The Big Question

This brings us to perhaps the biggest question that needs an answer. That question is- Is it worth taking a loan for vacations if it is paid back? The answer is NO. A loan is meant to make funds easy in the pocket but not for entertainment purposes. A loan should only be used for productive reasons and a vacation is not on the list. A loan should only be used for buying a commodity like house, car or to pay a big utility bill.

Point to Consider

One should consider taking a loan only if it is really required. After all, there is no sense in paying interest for a long period, unless required. If you still need to take a loan, do consider the below questions:

1- Who can get a loan: Generally, as long as you can pay the loan back, you’re eligible. Even a minor can under guardian supervision. A bank makes a decision according to your monthly income. If you are taking from an outsource, then it depends on your income or what you are keeping against the loan, like a loan against gold or property.

2- Rate of interest: Usually the first place to take a loan from us the bank you have an account with. Though this seems like the best way to avail a loan, still if you do a little research on other possibilities like online possibilities, is not a bad option.

3- Suitable EMI: If you avail a loan from the bank, the EMI is set basically according to the monthly payment you have with you after deducting any taxes like income tax etc. A suitable EMI deduction for you should be 10% of your monthly income so you still have an adequate amount of money for other bills and expenses. Hence, a little money management can help you increase the EMI to 30% and clear your loan sooner.

4- Loan Against Property/Gold: Loan against property or gold is given on part of the full value of the property or gold. Say your gold item is 15,000. You can easily get a loan of 10,000 on it.

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5 Ways Refinancing Your Home Loan Can Help You

We take a look at 5 ways refinancing your home loan could help you:

1. 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.

2. 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.

3. You could be eligible for a home loan with better features

There are some great home loan features around at the moment, and refinancing could offer you the opportunity to take advantage or more flexible features. Some money saving features to look for are:

Flexible repayments: You might want to switch to a home loan that allows you to make lump repayments without fees or open up an offset account to reduce your interest.

Redraw: Allows you to withdraw extra payments if you need cash. Look for a loan offering free redraws.

There are also some pretty cool boutique features, like getting a repayment holiday (a break from repayments), or the loan portability which allows you to take your home loan with you when you move without much hassle.

4. 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.

5. 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.

What should I consider before refinancing?

Cost of refinancing

While refinancing has some amazing benefits, there are costs associated with refinancing your home loan – costs that may outweigh the potential benefits. Following are two of the main costs associated with refinancing:

Exit Fees

Exit fees may apply when you pay out a loan early, usually in the first three to five years of your term. It could be a percentage of the remaining loan balance or it may be a set charge. Check your loan contract for more details. Although exit fees have been banned on new loans taken out after 1 July 2011, they could still apply to loans taken out before this date.

Borrowing costs

When you refinance, your new lender may charge a range of upfront fees. However not all lenders charge these fees and some may be negotiable.

Case Study

Let’s have a look at a refinancing example using some numbers to better understand the benefits and costs.

The situation:

Sue has a $300,000 loan repayable over 25 years. Her current rate is 6.4% and her monthly repayments are $2,006.

If Sue can refinance to a loan with a rate of 5.9% a rate reduction of 0.50%, she can lower her repayments to $1,914, a saving of $92 each month.

The solution:

Looking at the cost side of things, we’ll assume Sue will pay $1,000 to refinance her loan. In this case it would take about 11 months ($1,000 divided by $92) for Sue to claw back the costs through the savings she makes.

The outcome:

That’s not a bad time frame. If it was to take several years to recover her costs, refinancing may not be worthwhile.

Should you refinance?

We’ve gone through the potential benefits of refinancing, the costs associated and a short example. That’s a lot to take in. When it comes time to make a decision about refinancing your home loan, the best suggestion is to sit down with a mortgage broker you trust to help you go through your options.

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Habits and Your Financial Health

There is a saying “you are what you eat”. There is another saying that is equally as important – “you are a product of your habits”. Using an analogy of an ocean liner – how would you steer it to change course in a meaningful way? Very slowly but consistently. If you can envision an ocean liner, you would turn the heading ever so slightly – fractions of a degree toward the direction you want to go. Someone watching the ship would not even realize that anything had happened. As time passes on, the effect of the small change in direction compounds and becomes larger and larger. By the time you reach your destination, you may be hundreds or thousands of miles from the original navigation. If you tried to steer that ocean liner all at once, would you succeed? You would likely overdo it and cause an accident, or get so far off course that you would lose time correcting the direction again.

What does this have to do with money and habits? Everything. If you have a goal of making or saving more money and get a ton of great ideas, and then try to implement them all at once, what would likely happen? Failure! None of the multitude of changes that you tried to do would stick and there would be no effect. What about going to a semi-nar and picking one change that you can make easily, and you make this change for a long period of time? You would likely be more successful. This is one of the secrets of changing money habits and letting time do its magic. If you make a change that is hardly perceptible (i.e. painless), then this method will hardly be a strain.

What are some examples of this? Have you heard of the latte factor? The latte factor is making one incremental change per day – not purchasing that cup of coffee and saving the money. Due to the frequency of how many cups of coffee someone would buy over years of their lifetime, this would add up to meaningful savings. Another version is instead of buying a latte, you buy a regular coffee and add your milk or cream to it. This would save you $2 per day as an example. After 365 days, you have saved over $700 per year from this one incremental habit change. The ocean liner analogy shows the effect of compounding the change to make it even larger. What would you do with the $700? Let’s say you invested it over 10 years. On top of the $700 x 10 years of contributions, you are also making a return on this investment. As a wild guess, let’s say you made $3500 in return over the 10 years – about 5% per year on average. Now the effect is compounded. You can then take this money and deposit it into an RRSP and get a tax refund which would amplify the effect a while longer.

The latte factor has been beaten to death in many blogs and financial circles. The point of the latte factor is an example of one small habit that can lead to large changes over a long period of time if applied consistently. There are many other habits that can achieve this result. How about saving $1 per day on buying bananas from your local grocery store? How about negotiating a slightly better rate on your cell phone plan? How about purchasing the basic gym membership instead of the deluxe one that includes less but would suit your needs exactly? How about wasting slightly less food each day and buying a little bit less? Maybe keeping the computer, cell phone or cars that you drive one year longer than you used to? Ask yourself what the trade-off may be in doing these things – but if there really isn’t anything lost then you have found a habit that will create more money.

There are techniques that say you need to do a routine for 21 days to make it stick. This is basically saying that by doing it for this long, you are making the habit automatic. It will get to the point that when you don’t do it, you will miss it! Why not be creative and see what habits you can change that add incremental effects over time?

Do you want to: Learn how the world of money really works without the need of a time consuming or expensive course of study? Discuss what you want to achieve according to your horizon? Restructure your finances to achieve your goals? Advice that is not affiliated with any institution or any product – an independent opinion?

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Tips to Encourage Tenants to Pay Rent on Time

Clear Communication

Landlords are aware of the importance of communication especially in terms of paying rent for a house or apartment. They should be clear about the price of rent. They also have to put down everything in writing, including the late fees as a consequence of not paying on the due date. This way, tenants will avoid paying late just because they do not know the exact date when the rent is due. In addition, this would help tenants set aside a budget for rent. They should know the amount to pay and the date to pay it.

Tip

When preparing the new rental agreement, landlords should make sure that the tenants put their signature and date on all pages of the documents to serve as proof that the tenants have read and understood what is written on the lease agreement and landlords should give them a copy of the signed document.

Talk to the tenant to know the reason for late payments.

Tenants may have just forgotten the due date or they did not have sufficient funds to pay the rent. Whatever the reason, landlords can discuss whether changing the payment or due date could help. As an example, they may opt to make smaller payments more frequently. Tenants could also set up a direct debit that will make it less likely for them to forget paying on time.

Tip

Landlords can let the tenants choose the date and frequency of payments that are most convenient for them. When they set up a direct debit, tenants will not be worried about missing the monthly payment. Also, landlords do not need to spend time and effort on following-up late payments.

Charge fees for late payments

When tenants are charged for late payments, this will encourage them to pay rent on the due date. The rental agreement should be clear about any late payment fees.

Give a discount for paying on time.

Property manager companies may like to consider giving a little discount to tenants who pay rent on time. This small gesture can encourage tenants to always pay on time. This also reduces the amount of stress and time used in following-up late payments.

Tip

The best thing to do is give a discount to tenants who pay by direct debit. This payment method allows rent to be automatically deducted on the due date every month. With direct debit, property manager companies will know if a payment has failed. There is no need for them to check their bank statement since they know what happened.

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Key SEO Tactics Everyone Should Know

· What is SEO?

Fundamental search engine optimisation (SEO) will enable you to position your site appropriately, to be found on the top priority of the search engines. The objective of foundational SEO is not to cheat or for “amusement” of the web crawlers. The reason is to:

1. Create an awesome, consistent client encounter.

2. Communicate to the web crawlers your expectations so they can prescribe your site for significant quests.

· What does it encompass?

Here are some of the many SEO factors which you can undertake for optimising your website.

1. Website SEO Audit

An SEO review can come in changing levels of detail and multifaceted nature. A basic site review can be as short as a couple of pages long and would address glaring on-page issues, for example, missing titles, and absence of substance.

2. On-Page SEO

On-page (now and then approached site) website improvement is the way toward executing the essential changes as suggested by an SEO review. These progressions can be actualized by the site proprietor (on the off chance that they have the ability) or an organisation.

3. Content Development

Search engine optimisation content improvement is the way toward making site content which can arrive in an assortment of structures, including content (e.g. articles, whitepapers, papers, inquire about archives, instructional exercises, and glossaries), infographics (data illustrations), PDFs, accessible databases, web apparatuses, and so forth.

4. Link Development

Since backlinks are the most vital section of any website streamlining work, and in the interim the most monotonous and consequently most costly (accepting they are good quality networks and not just irregular archive entries and blog remark spam) part, there are many specialist organizations who offer modest third party referencing administrations keeping in mind the end goal to draw in and awe potential customers.

5. Code Optimization

Code development is an administration you can suppose at the rarest accounts of website improvement companies, as it includes an update of your site HTML. The streamlining of your HTML can affect internet searcher rankings in several ways.

· The best service providers – The Trusted Ones

Today, there are several SEO companies which can get an effective digital strategy planned out for you. Here are a few tips to help you choose a trusted seo service provider.

1. The company should provide complete administrations that give results to their customers and banding together offices. They should offer their administrations to various organisations running from private ventures with a nearby enthusiasm to endeavours with a national or worldwide reach.

2. They should have a background marked by working with organisations of every kind and keep on offering their administrations in various countries.

3. They should probably give you an exceptional yield on your SEO speculation. By utilising propelled execution estimation, detailing, and quality control apparatuses, they should guarantee that your battle really acquires applicable leads-individuals who are prepared to lick that “purchase” catch. Their image of SEO expands change rates, prompts more deals, and diminishes your advertising costs as time goes on.

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Easy And Effective Ways To Do A Competitor Analysis

Competitor Analysis is a process of identifying the strategies, strengths, and weakness of the mover and shaker of your niche. It helps to upgrade your strategy in a good manner and help you win the battle. It is one of the most important aspects of any marketing plan that every entrepreneur should adopt for the better outcomes and for understanding what points they are missing and how much they need to improve. Well, doing it is not as tough as it sounds, thanks to the number of tools available on the internet or intranet. So, if you are new to this, take a look, how to do competitor analysis for improving your strategy like a pro.

Identify Your Competitors: The first and foremost step of competitor analysis is identifying who your competitors are? You cannot analyze their strategies until or unless you know about them. Therefore, identifying them is a must and important in all possible manner.
Take A Tour Of Their Website And Analyze Properly: A deep dive into the website of your competitor is a must to understand what they are doing and if you are doing the same, so, at what point they are better at you. A basic inspection will help you in long-term and support you find out a lot that further improves your strategy.
Spy On Your Competitor’s Keywords: A smart move is important to beat the tough market competition and therefore, you have to determine with which keyword your competitors are ranking high. Also, you should check the keyword density to get the better idea.
Evaluate Their Backlinks: Backlinks are important for the ranking of your website and you have to analyze your competitor’s site properly to identify from which sources they get links for their website, so, you can get your backlinks from the same.
Keen Eye On Their Social Media Handling: Social Media is important nowadays, therefore, you should keep a keen eye on their social activities. It helps you understand how active and engaged, they are with the audience and how frequent they share a post and what type. This may help you improve your social media strategy to drive more traffic.
After understanding all the barriers to your entry, make an effective strategy for SEO that delivers outcomes better than before. Learn new things and improve your strategy and not only copy them. Also, you can take SEO Expert help if you don’t have the time or enough knowledge to do this on your own.

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Things No One Told You About Search Engine Optimization

Well if one fine day you make up your mind to enter the SEO industry, and you try and get some serious tips and tricks to master your SEO game, you’d only get dispirited. This is because there is no official instruction manual that Google offers. Of course, you’ll find tons of instructional blogs and articles floating around and then there are also Google Webmasters’ guidelines that will do well to acquaint you with white hat SEO, but to be honest, most of what you learn is through and experimentation and experience.

When I started my journey as an organic SEO practitioner, I wasn’t aware of the whole story. Now when I look back, I think how things would have been completely different had someone familiarized me with some of the insider information.

So in this article, I would like to talk about things no one tells you about SEO. And as it turns out in time, these are some of the most important things you need to know about Search Engine Optimization.

There isn’t any single solution but tons of options – like I stated at the start, there’s no hard and fast manual that states to the point solutions to all your problems. Now if you present a particular problem to a panel of experts, you are sure to get many different opinions and solutions in return. This can turn out to be confusing. All these opinions point to similar goals, just taking a different path to reach the conclusion.

The target never remains static – You don’t shoot at the place where your target stands. You aim for the place where your target will be. But you see, SEO involves a number of algorithms and ranking factors. Just when you think you’ve figured it all, Google would update or tweak some of its algorithms, and that changes it all. So I’d suggest you to familiarize yourself with search engine guidelines early on in your career. It’s equally important to keep yourself updated with Google’s blog posts. Being connected with a proficient search engine optimization company and its social accounts can also acquaint you with important concepts.

Tools are just tools; not a wish-granting entity – The internet is brimming with tools, few shinier than the others. But as the old saying goes, not all that glitters is gold. So don’t waste your time on every new tool that enters the market because none of them is going to be a cure to all your problems. Do your own research, compare tools against their each other and look for reviews. The best SEO agency knows what it’s doing, and that’s because it sticks to its prominent tools.

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Benefits of Credit Card Machines for Business

Other than credit card machines, technology has produced many notable effects, including the credit card machine. In the 21st century, people open themselves up to technology from the very center of their being. It has the added benefit of leading to an increase in the use of credit and debit cards. Additionally, the coronavirus’ arrival has also contributed to the increased use of contactless transactions. EMV cards are replacing magistrate premium cards. EMV chip cards give you the ability to make contactless payments. The merchants must have advanced payment terminals to accept such payments.

Credit and debit cards are used almost exclusively in today’s business world. To take your business to the next level, you must associate it with a credit card machine. The processing and payment services you need for online sales include a merchant processor that provides you with an online payment gateway. There will always be online modes that people will prefer to use, regardless of the volume of transactions. As a result, you have to use an advanced piece of equipment, such as a credit card machine, in tandem with your business.

Advantages:

Just because we’re living in the 21st century, it’s impossible to conceive of life without modern technology. A large number of businessmen prefer to stick to established business models. However, sometimes you have to alter your plans according to the current situation. This means that you need to be one step ahead of everyone else in the business. You will lose customers otherwise. An establishment that gets access to a credit card machine will enjoy countless benefits. Listed the benefits; so, don’t miss the following:

Obtain Legal Recognition for Your Company:

Accepting card payments using digital payment terminals is a legitimate business practice, so it should help your company a lot. The card brand name will be printed on the POS, and thus the customers will have no problem noticing it. This logo will be featured on the same online marketplace as well. The greater the number of customers from outside the country, the more money you’ll make.

Increase Your Profitability:

To accept various forms of payment, like credit cards, Google Pay, Apple Pay, and more, use a credit card machine at your business. Creating a positive impression on your customers is quite simple, but it also keeps your customers loyal. A credit card machine, thus granting flexibility in the ecosystem of online payment, provides customers with many payment options, thus allowing them to pay bills in various ways.

How to stay ahead of the competition:

Many businessmen have not yet fully embraced digital equipment, making small-business models in the early stages of transition. To accept online payments, your business equipment must be upgraded. If customers are no longer carrying cash, you can outpace your competitors. Research has shown that when customers use their cards to make a purchase, they spend more. Additionally, because you will make a substantial profit from accepting card payments, it’s highly recommended that you do so.

Cash Flow Improving Measures:

The customers’ card payments get settled quickly when they pay with a card. Everything is done electronically, so you don’t have to go to the bank to deposit the money. Additionally, you don’t have to wait for customers to pay you. Your cash flow will thus improve.

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Are You Choosing the Right Stock Market Advisory Company

What do you do if you want to learn driving a car? You will try to find an expert teacher, isn’t it? You do not want to avail the services of a novice individual to help you out, but a professional person can provide you the vital tips and most importantly guide you efficiently. Similarly, when it comes to investing in the stock market for the first time, you require a knowledgeable advice to attain your financial goals and get profitable returns.

If you are a beginner, then it is quite obvious that you may be having no information about the process of buying the right shares in the market. In such a situation, getting the right tips from an experienced financial advisor or a registered advisory company will truly prove to be a great blessing in disguise. However, there are some of the important things that have to be kept in mind while choosing the top stock market advisory company, which are as follows:

How much assistance do you actually require?

Before you make up your mind to hire an advisor, it is imperative that you must first decide about the kind of service you require from them. You may need their help at the beginning or during the time of any issues. This is because an advisor has to formulate a map according to your requirements. Hence, it is suggested to ascertain your needs first and then take further action.

Choose a top ranked advisory company

It is a very important point that has to be taken into the consideration. Availing services of the well known advisory company or a financial advisor is an absolute necessity. Make it a point to carry out a proper background or research work about the company. Check out their credentials, reputation, experience, etc before hiring them.

Asking for a sample financial plan initially makes sense

When hiring a financial advisor, then do not forget to ask for sample plan first. It is imperative to note that there is no such thing called the perfect plan. A sample plan will help you to determine whether an advisory company is actually making sense according your requirements or not.

Conclusion

The financial planners or advisory companies can really turn out to be the greatest asset for you if you choose the best one. They are just like the professional sailors who can help you out to sail through stock investment related problems quite efficiently.

Deepak is a financial advisor who likes to provide quality tips to the people facing any issues with regard to investing in the stock market. He likes to keep himself updated about the stock market by reading articles, news and blogs, etc.

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5 Areas Where Interest Rates Matter!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!

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