5 Money Tips You Shouldn’t Ignore

5 Money Tips You Shouldn't Ignore | Ajay NagpalEveryone wants to be wise with money. However, not everybody knows how to do that, even if they aren’t spendthrifts. If you receive certain tips about personal finance from a pro or from someone who knows personally how to manage their finances, you should really listen. Here are five money tips you should never ignore.

Never Go Into Debt

One of the most obvious tips regarding your finances is to never go into debt. That means that if you have a credit card, be smart when you make purchases on it. The best thing to do is to never outspend beyond your means and always pay your credit card bills on time. It will ensure that you are paying off your debt in a timely manner and that you will have a good credit score. It is also helpful to have a credit card with a low introductory APR and initial zero percent interest rate.

Invest in Stocks

Many people make the mistake of putting their money in the bank and only in the bank. Although you will earn interest on whatever you have in your savings account, anything in checking gets zero interest. The best option, especially in the long term, is to invest your finances in the market. You will get the most out of your finances when you invest in stocks that are at least medium risk as the market fluctuates. In addition, investing ensures that your amount will increase over time. You may also want to sell stocks when they go high and stop investing when the market is down.

Invest in a Home

Investing in a home is always a good idea. Buying your own place to call home is better for your long term financial life and your life in general. In comparison, renting can end up becoming a considerably more costly venture because landlords can raise the rent if you aren’t lucky enough to get a place that is rent controlled. You can also increase the value of your home when you own it by making repairs and improvements over the years. Additionally, you can legally rent to tenants for some extra cash as well.

College is a Must

If you really want to earn a good salary, having a college education and degree is an absolute necessity. The majority of employers require a degree before they will consider hiring a new employee. However, keep in mind that you must be dedicated when you go to college. The worst thing to do is enter college, garner tons of student loans and then drop out.

Retire Mortgage Free

Avoid going into retirement with a mortgage. The last thing you want to do is to dip into your retirement funds early, because it results in big penalties later on. It can make retiring more of a burden than anything else because you will find that your retirement finances are depleted when you really need them.

With these helpful money tips, you will certainly become a personal finance master and can enjoy your money in the long term.

The Importance Of Financial Literacy In Today’s Society

The Importance Of Financial Literacy In Today’s Society | Ajay NagpalFinancial literacy is a term used to describe financial, credit and debt management and the knowledge necessary to make financial decisions responsibly. This includes anything from how to avoid debt to how a checking account works. The daily decisions made by an average family when trying to buy a home, balance a budget, save for retirement or fund their children’s education are reliant upon financial literacy.

Lack of financial literacy is a global problem, occurring both in developing economies and in developed or advanced economies. Here are a few trends that show the importance of making thoughtful decisions about finances:

  1. There are complex options

Recently, consumers are being asked to choose between a number of investments and savings products. The products are more complex than in past. Consumers are asked to choose amongst product options that offer various interest rates and maturities. Many people aren’t adequately educated to make these decisions. Choosing complex financial instruments that have a wide range of options can impact a consumer’s ability to finance an education, buy a home, or save for retirement.

2) Consumers are responsible for more of the financial decisions

In past generations, people could depend on pension funds to provide more of their retirement funding. Pension funds are managed by professionals, so the financial burden was placed on companies or governments that sponsored them. Consumers were not a part of that decision-making process and usually did not even contribute their own funds. It was rare for consumers to be made aware of the funding status or investments held by the pension. Now, the responsibility for retirement planning has shifted to the consumers. Pensions are now a rarity, especially among new workers. Employees are instead being offered the ability to participate in 401K savings plans. In these plans, they need to make investment decisions and contribute to the plans.

3) The marketplace is changing

The financial landscape is constantly changing. Because the marketplace is now global, there are many more participants in the market than there used to be, and many more factors that can affect it. Technological advances such as electronic trading have caused the financial markets to be even more volatile. These factors lead to conflicting views. As a result, it can be difficult to set up, implement and follow a financial roadmap.

4) Lack of government aid

One of the biggest courses of retirement income in the past was Social Security. However, the amount paid by Social Security currently is not enough, and Social Security may become completely unavailable in the future. According to the Social Security Board of Trustees, the Social Security Trust fund may be depleted by 2033. At this point, Social Security serves more as a potential safety net that may or may not provides the amount necessary for basic survival.

5) Longer life spans

The last reason is a bit more simple: we’re living longer. As time progresses, the average lifespan is increasing. As a result, we need more retirement savings than prior generations do.

Financial literacy has always been instrumental in helping consumers make smart financial decisions, but now, it’s more important than ever. Make sure you stay informed so that you know what to do when posed with a series of financial options that can drastically affect your life.

 

13 Promising Fintech Startups to Watch in 2017

13 Fintech Startups to Watch in 2017 - Ajay NagpalPlainly, the financial industry is abuzz with new fintech startup enterprises, many firms bolstering new technology and innovative ideas. In the upcoming year, we’re promised to see increased performance by these dynamic financial technology firms.

An example of a new business that’s waded through the thick and crowded banking and financial sector is Due.com. Due.com is incredible firm, which publishes daily content for its tens of thousands of users, and it offers an invoicing service that allows customers better access to reports, data, and software for the digital design of logos and invoices. Read on to learn the names of other startups that promise to make a splash in 2017:

SoFi: SoFi is brilliant because it manages to offer opportunities for refinancing personal debts and students, as well as MBA loans and mortgages. More than that the platform, which offers opportunities to investors, has acquired approximately $7 billion in outstanding loan volume. The tech newcomer proves that need-based apps that tip toward newness can easily draw the eyes and interests of users and investors.

Planwise: The data-driven tool that was developed in partnership with inSTEDD. The platform allows planners and responders in low-resource settings to service and emboldens others in cost-effective ways. The platform was designed to assist the needy with confidence and skills in financial planning. The user-friendly software program assesses financial situation illustrates monetary goals and offers plans-of-actions. Tools for accessing financial milestones, choosing the right mortgage, and managing a personal loan are facilitated by the platform. PlanwiseConnect is an affordability browser created by the browser, which integrates all property websites in the U.S.

LendUp: This platform is a payday loan alternative that offers credit cards and online loans. More than that, free financial education and opportunities for credit building are made possible through this platform, which helps users to avoid debt. The LendUp Ladder program helps responsible borrowers to avoid debt, offering them better rates and longer terms on future loans.

Nok Nok Labs: Nok Nok Labs, a company that once raised $8.25m to enable biometric authentication for enterprise and $16.25M Series C Funding Round, searches for the future of mobile authentication. Their work helps to develop innovative authentication technology for e-commerce customers, Also, this firm has assembled a skilled web security team offers superior customer service.

Trulioo: Trulioo is an online identity verification company that developed GlobalGateway, which is used in coordination with compliance system from all over the world, assisting financial services and payment providers for the sake of compliance with international Anti-Money Laundering (AML).  

FinCon: FinCon is a firm that was created for the purposes of drawing together fintech companies for networking opportunities. The firm provides a forum for startups to meet and share, and it offers information about upcoming conferences. The firm allows small business owners an opportunity to observe innovation solutions, regarding accounting needs, invoicing, and payroll.

Giftly: Giftly is a nifty platform that’s a far more flexible and convenient ways to provide gift cards to friends, family, and acquaintances. Basically, their motto is “Buy a gift card. Send instantly, print at home, or deliver by mail. These gift cards can be used at merchants within the U.S. and the District of Columbia.

Wealthfront: Wealthfront is fully-automated investment management firm, which employs advanced software for the purposes of reducing tax liabilities, which can vary according to economic conditions. This platform allows you to invest your money with minimum work, likewise, you can monitor opportunities, and harvest tax losses.

Plaid: Plaid is a piece of technology that eases access to high-quality transaction data, it validates account ownership in mere seconds, and it organizes banking data into comprehensive data.

Neighborly: Neighborly is a platform that caters to the public finance issue. It endeavors to address a generation of public financing issues by making municipal bonds accessible to the gentry, enabling them to invest in public places and civic causes that they truly care about. The technology is protected by bank-grade security, which is equipped with a consumer protection system and anti-fraud software. The that Neighborly does promises to build bridges between the nation’s public places and global banks.

Realty Shares: RealtyShare provides opportunities for investors to diversify their portfolios through partial investments in properties. These investors can invest as little as $5,000 into any property across the nation, fulfilling the goal of helping to fund important real estate projects through crowdfunding efforts. This means that money lenders, high loan fees, and the stringent guidelines of banks can be avoided.

TrueAccord: TrueAccord has helped to reimage the world of debt collection by using advanced technologies, such as machine learning and behavioral analytics, to increase recovery rates and reduce compliance risk. At the same time, the  suite of tools gives customers the best experience possible, helping collectors to improve the bottom line, organize data, reduce needed reserves, and improve efficiency.

Adyen: Ayden is an ideal globalized payments system that’s revolutionized and redefined the payment industry by making available a product that manages billions. Also, they have a built technology infrastructure that’s capable of meeting the need of growing businesses, connecting payment methods to card schemes, and enabling business payment management on a universal system.

Top 5 Financial Websites Where You Can Access Financial Information

Top 5 Financial Websites Where You Can Access Financial Information | Ajay NagpalFinancial news and updates are important to every person wishing to succeed as an investor. For you to stay updated on issues that affect the financial market, it is also important to follow the different trends in the industry. An authoritative financial reporting can help you to identify various business opportunities and make judgments regarding your financial policies.

To stay abreast, regarding the current financial information, you may have to subscribe to a number of financial websites. Here are some of the best financial websites in the US:

CNN Money

CNNMoney.com is a financial website where you can get all global finance and economy news. Some of the information covered in the site includes personal firms, SMB business news, and investment news relating to major industries or companies.

The reports are found in the form of videos, blog posts, and original content from various financial magazines. CNN Money is a subsidiary of Time Warner.

Bloomberg

Bloomberg provides financial information from every industry. The firm also provides finance research services and analytics that are crucial for making informed financial decisions. Bloomberg allows you to open an account that links you to more than 325,000 thousand businesspeople.

At Bloomberg, you can gain access to various investment ideas and meet entrepreneurial partners who you can team up with to establish a venture. Bloomberg maintains one of the most resourceful financial websites in the world supported by offices in more than 190 regions.

Forbes

The Forbes website publishes different information regarding industry news, news from major companies, and other market-related news. Some of the information you can access on the site include a company’s debt, income statements, balance sheet, and cash flow statements.

Forbes also publishes entrepreneurial ideas from successful entrepreneurs in the financial industry. The information posted on the Forbes website can help entrepreneurs with free ideas on how to start and establish a venture.

Kiplinger

Kiplinger is a Washington DC- based company that publishes market trends and financial advice. The publications are used to educate managers. The commercial website is visited by more than a million users in a month.

For more than 80 years, Kiplinger has been providing necessary financial information to its clients. The firm has been honored with Business Ethics Award due to its outstanding contributions to the finance industry.

The firm’s website contains information on loans, retirement benefits, commodity market prices, real estate, mistakes that prevent one from making profits, and insurance.

The Street

The street was founded by Jim Cramer and Martin Peretz. On the site, one can review the latest stock market news, corporate earnings, financial analytics, and economic growth of various countries.

Moreover, one can access the most current commodity market news. Additionally, users benefit from free financial services with an option to open a premium account.

Each financial website featured above contains a wealth of information on the financial and investment worlds. The information is useful to investors and organizations’ managers who have to maintain the stability of their businesses.

Early Financial Education: Equipping Youngsters With Tools to Acquire Financial Freedom

Ajay Nagpal, Early Financial EducationEarly financial education is crucial; in fact, some, including a blog post published on DaveRamsey.com argues that these fundamentals are necessary, as this knowledge will help children to one day manage their finances, balances, and budgets once they’ve graduated from college and look to take care of their own personal finances. Financial literacy, which an ability to understand how money functions in the world, is considered necessary for personal success.  Teaching young people about how someone earns money or makes money, as well as how one manages money, invests money, or event donates money positions them for a distinct pathway to financial freedom.

Money management international published a post about teaching children financial lessons through fundraisers. This is an incredible idea because 70 percent of U.S. children are asked to participate in fundraisers on behalf of their community, organization, or school.  This opportunity allows most parents to teach their growing children basic math skills as well as financial responsibility. Also, fundraisers help children to basic business skills, goal setting, charitable giving, and budgeting.

The proposition of a fundraiser begins as a noble initiative but becomes so much more when it offers children a tiered system by which they can earn prizes and trinkets after they’ve set realistic goals and earned money for a project using only the resources made available to them. Counting change, organizing receipts and demonstrating responsibility conditions them to be suited for entrepreneurship. However, fundraisers aren’t the only way to direct children to grow their financial knowledge. There are numerous ways to help children get an early start on money management:

For younger lots, such as those in elementary and kindergarten, ‘simple’ tends work be best.

  • Lead by example: Be mindful that your children are looking to your habits to learn about expenditure.  Your children notice your conversations and bouts about frivolousness and frugality. Practice healthy habits. Also, rather than paying with your credit card each time you visit the mall or grocery store, use physical cash and count the money out, so your child gains a better understanding of what a $10 bill can purchase them and how much change is due.
  • Mason jars over piggy banks: Rather than storing change in the piggy bank, help your child to store his or her money in a transparent jar so that they’re offered a visual image of financial accumulation. They’re likely to develop pride around watching their personal wealth mature. Encouraging them to count the money often and view it as a reserve, rather than something to be spent, is an important way to push him to see the long effects of long-term saving.
  • Money doesn’t grow on trees: Prior to any adventure involving the spending of money, share your budget with your child and educate them on how much everything costs. Also, when shopping, allow them a bill or two from their personal saving jar and allow them to understand what they can or can’t afford with the money they have on hand.

Teenagers and adolescents have increased awareness/understanding of money, as many of them have jobs or they receive an allowance,  however, many still forget that money isn’t a magical object that merely appears, so continue to teach them in ways that are diverse, yet simple.

  • Weighing decisions; Teach your child about the importance of financial choices. By demonstrating opportunity costs, they learn that if they choose to spend money a game console, they won’t have the money to purchase a new mp3 player.
  • Philanthropy and charitable giving: Young people should recognize the importance of giving as early as possible because it instills the importance of community, and they giving has an intrinsic effect. While some give money to charities or churches, others choose to fundraise, volunteer or donate goods.
  • Earning allowance: Kids shouldn’t merely be given a stipend for floating around their home, children should earn their allowances through chores and housework, so that understand the process by which employment and occupation function. Consider giving them a slight raise when they’ve proven that they’re committed to their tasks, and consider decreases when they’ve demonstrated that they’re not interested in earning.
  • Banking account: While checking accounts come much later, it’s never too early to get a child a banking account, which would not only equip them with responsibility but teach them that money management is more than personal but institutional. Also, they’ll learn about interest and percentages, and learn that they’ll earn more interest through saving more.
  • Credit card dangers: Credit cards are going to piped right into your child’s hands as soon as he or she turns 18, so it’s important for you to communicate that your credit and financial existence can be horrifically wreaked by making poor credit card choices early.
  • Employment: The best way to teach financial responsibility is enable your child to understand the value of earning their own money. Help your child scan the papers and ask friends so that your child get comfortable with the prospect of earning money during school breaks or even after school. This will acquaint your child with notions of esteem, leadership, and importance.  

To put it simply have to prepare yourself to talk to you children about money and equip your child with the tools to succeed financially. Being honest, setting family goals, and discussing value may put your child on the path to becoming a leader in the financial industry or a developer of educational fintech applications that may make it easier of future generations to access and utilize personal wealth.