Can You Afford Not To Look After Your Personal Finance?

Investing is a subject a lot of people don’t want to think about. And there is good reason for that. Investing seems scary. It either sounds like something only the rich do or something that only a skilled professional can do. But the truth is that investing is something that everyone can and should do—as soon as possible.

Why should you start now?

Think about this. There are two ways to make money. You can exchange your time for money or you can make your money work for you. Most of us work 40 hours a week. In this case, you are trading your time for money. But wouldn’t you rather earn more than you are making? If you are making $1,000, wouldn’t you rather be earning $5,000? Most people think the only way to earn more is to work more. Work overtime is their motto! But there is more to life than working. Investing gives you the chance to let your money work for you—saving you time and earning you money.

But is the purpose of investing to get rich?

Some people don’t invest because they think that investing is something you do to get rich. They figure they’ll never earn enough to get rich, so why bother. But that’s not what investing is for. Investing is a way for you to be able to maintain your current lifestyle.

Think about this: what if the company you worked for suddenly closed down? What are you going to do when you get to retirement? Sometimes working more is not a viable option. Investing gives you another source of savings and earning income. You don’t invest to become a multi-millionaire (of course no one would stop you if that happens); you invest so that you can provide for yourself in the way you are accustomed to both before and after retirement.

Many people are convinced that investing is the right thing to do at this point, but, there are some misconceptions people have about investing that prevents them from actually doing it. These misconceptions are that:

Investing is too hard

Investing is too risky

You need a lot of money to invest

Let’s look at each one of these misconceptions.

Investing is too hard
You may think that investing is just too hard. But a lot of that has to do with the terminology of the investment industry. I mean who knows what Fed Fund rates, mutual funds, indexes, or blue chip stocks are? But you don’t need to be scared off by a bunch of words—in the end they are just words. Just like you probably didn’t know what PMI was before you bought your first house or what APR was before you got your first credit card, you can learn what these things are. And you will find that they aren’t so hard to learn. And if you seek the advice of a professional, they can explain it to you.

Investing is too risky.

Some people have the idea that investing is risky. Movies such as “Wall Street”, no doubt, lead people to think that. But the fact is that investing is only as risky as you want it to be. Do you want to take huge risks? You can invest in international stocks. Want to play it safe? Go with bonds. The risk level is up to you and only you.

I can’t afford to invest.

Many people think they can’t afford to invest. But when you look at the alternatives (social security may not be there, job security is not 100%), you really have to ask yourself how can you afford not to invest. And the earlier you start, the more money you will earn. Even if it’s only a small amount, the money you invest today will earn you big in the future.




About the Author

Mika Hamilton is editor and founder of the Global Investment Institute. http:www.global-investment-institute.com

Written by: Mika Hamilton

Business Finance Expert Series:'Comparing Factoring of other Financing Options"

There are a number of financial options in the market and you need to analyze each in detail to determine which suits you the best. A business can be financed with help from private investors, lenders and financial institutions depending on your needs and priorities.

Varied Commercial Financial Options

Credit Lines: In this the lender is actually a bank. The bank gives c redit lines to ( h ttp://www.hjventures.com/factoring/credit-analysis.html ) fill the temporary shortages of business like inventories, receivables etc. These shortages are mostly due to the time difference between the payouts and the collections. Unlike factoring, financing through credit line requires a good credibility record along with the collateral. Banks also require business owners to maintain the obligatory balance of funds in their accounts.

Short-term Loans: As the name suggests these are the loans that are sought for term of a year or less and are generally secured. They are taken to meet expenses like insurance or to cash over the discounts offered by the supplier and are mostly paid back in lump sum at the maturity.

Asset-Based Loans: Similar to factoring, asset-based loans are raised on current assets like inventory or accounts receivables ( http://www.hjventures.com/factoring/accounts-receivables.html ) . However its ambit goes wider to include varied current assets while in factoring it is limited to account receivables. The lender has a security in the assets of a company and are mostly sought to meet the working capital needs.

Contract Financing: In this kind of financing funds are advanced in accordance with the work performed till date. Criteria on which finance are provided under contract financing is the credibility of business to complete a contract and its ability to perform. Under this contracts are used as collateral to get short-term loans.

When it is difficult to obtain finance through banks factoring is a promising option. The method also relieves small companies of the expenses involved with collection of receivables. It is not a one-time transaction and is generally provided on a contractual basis.


Learn more about factoring / business finance:
http://www.hjventures.com/factoring/factoring-glossary.html

About the author:

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard's business plans have secured several million dollars in funding. For more information