Where to put Your Money Besides a Savings Account

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Savings accounts continue to offer low rates of interest, leaving many people wondering whether they are even worth bothering with. Ever since the current low-interest environment bit, savers have been looking at alternative ways to get more from their money. Things may be on the way up, but even headline-making best-buy accounts are only offering a couple of percent.

While savings accounts are pretty much unbeatable when it comes to keeping your money secure, there are some alternatives you might want to consider, whether you have a lot or a little to put aside.

Extra Mortgage or Loan Repayments

This might not seem like the most attractive choice at first, because it means giving up all access to the money you put aside. However, it will usually leave you better off overall than putting your money into savings. Think of your finances like a balance sheet. On one side you have money and assets in your possession, on the other side you have debts. Subtract debts from what you have to get your net worth. Both debts and savings grow over time due to interest rates, and your debts probably grow faster because interest rates are almost certainly higher. By removing a chunk of debt instead of adding a chunk of savings, you are having the same initial effect on your overall “worth,” and having a bigger impact over time because it will reduce the growth of those debts and lead them to be paid off sooner. Even paying a little extra can make a big difference if done regularly over time. Of course, you should still only consider this if you are sure you won’t need that money in the future.

Peer-to-Peer (P2P) Lending

Those with a lot of money are investing in properties to get more out of their money, and those who are clued up on the stock market or have access to professional advice (these also tend to be those with a lot to save) might turn to stocks. Peer-to-peer (P2P) lending, which sees you provide money for a person or business who wants to take out a loan, is another investment option, but this time it is equally open and equally useful for those with small savings and those with large amounts. While all investments carry risks and this is what rightly puts off those who could afford to invest but can’t afford to lose, P2P is very much one of the safer options. It has been rated as not much more risky than a bank, and many of the online platforms offering this service have been designed to make the experience as close as possible to managing a traditional savings account. Various fixed terms are available from a few months to a few years, and the interest rates far exceed anything the banks are offering.

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Things to Remember For Successful Mortgages in 2012

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Problematic economies and lower home values continue to pound entire Europe as the Euro Zone crisis continues to swallow one country up to another. However, this can be seen as an opportunity for many home owners who wish to take out mortgage. As long as you keep all these tips on hand, you’ll find that you’ll be much more successful in getting the mortgage loan you deserve.

1. Credit Scores Should Be At An All-Time High

Your credit score is the most important factor when it comes to getting any type of financing. Have your credit scores updated by a credit monitoring bureau and see to it that the copy you receive has no issues to speak of. Your credit score should be higher than 680 but not lower than 620.

2. Have the Necessary Documents Ready

Your income tax returns, pay slips and other documents deemed necessary for the transaction should be ready before you even apply. Be sure to keep spare hard and electronic copies of these documents as well. Should the lender lose any of your information while processing your application, it would be easy to send them another copy. Remember, the more delays you face in making your application, the more your deposits are placed in jeopardy.

3. Shop Around, Don’t Stick to One

More and more attractive rates go with low-value houses, especially those with high mortgage values. Should the economy get better soon enough, you’ll find that you missed some great opportunities with other real estates. Get at least three brokers and get their figures. After gauging your financial capabilities, you can choose to select one of them or combine them, whichever is convenient.

4. Your Financial Capability

Don’t wait for the lender to tell you how much mortgage you can get. Always prepare for the worst. Prepare for both low and high mortgage that you can receive, plan your budget and leave some space for your other expenses. Having your finances organized can help you get out of economic trouble in the future.

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Investment Strategies: Knowing Your Game Plan

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The word ‘investment’ is a really gigantic word. When one tells you that you’re about to make an investment, it means that a significant part of your life can change because of the particular event. Investment is originally a financial term but the significance of its definition is also the same. Knowing how to make an important investment strategy is important to ensure that you are making the right decision in going for an investment.

1. Life Goals

Every action is driven by an earlier decision. Having a clear-cut life goal in your head can make all the difference in your decisions. If you wish to make your business grow, then that should be the driving factor of the decisions you are to make in terms of investments. Remember, you cannot make a good decision if you are not able to determine the life goal you have in mind.

2. Understanding Basic Economics

In making an economic decision, you don’t really have to know about the chances of success and the mathematics behind the probabilities. You only need to understand basic economics. When you place your money on the hand of the pitching company or individual, make sure to be updated to where the money goes. Understand basic economics; it can save you from making a bad decision. Most pitchers often discuss how the money flow goes in and out of the company or organization, which can help you gauge your decision.

3. Less Expenses Than Your Revenue

Investments and income are like products that you sell at a business. You sell them a few percentages higher per product based on the average expense it required to make the product. Spending less on your expenses and lesser than the amount of income or profit you get from your investment can help you gain more in the future, especially if the business you invested in thrives in the long run.

4. Emergency Funds

For every income or profit you get, make sure to make a savings account that will serve as your emergency funds. Sometimes, even if you know you’ve made a right decision about your investment and surely you did, yet something wrong happened in the long run, you need something that can help you get back up on your feet.

If your investment is in terms or financing a house or taking out a loan, you might like to read more about how to gauge your financial advisers. You might also like to know how to manage your bank accounts properly and how to invest in insurances properly.

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