Monthly Archives: September 2018

How To Achieve Budgeting Success?

How To Achieve Budgeting Success?

Budgeting is an art and it requires a lot of time and knowledge to frame a perfect budget for the individual and it also requires a lot of effort too.  When you consider any financial goals and the means of achieving it, budgeting is the prime tool which gives the detailed picture of the financial goals and the best possible ways to achieve them without any deviations.

A good budget will be in such a way that it should also include some provision for minor changes in case of any certain forced situations to do so.  As a whole, budgeting is a good habit for any individual which helps to track all their income and expenses so that they can monitor and regulate the money flow as well as able to establish a good control over unwanted expenses.

A good budgeting process requires a thorough knowledge of the subject and you should understand the basic concepts involved in a budget so that you can create your own family budget.  This post aimed to offer enough knowledge of the budgeting components and when you create a budget for your family, be sure that you include the following successful budgeting features;

  • Track accurate expenses: It is always necessary to track the accurate expenses for your family including your personal expenses.  If you know your expenses well in advance, it will help to create a budget within the limits so that your expenses may not exceed this limit.
  • Track your income: Include all your incomes as well as the family member’s income for the purpose of budgeting so that you can create the appropriate income and expense statement which helps to give a detailed picture about it.
  • Manage your expenses: When you create a family budget, it is necessary to manage all your expenses within the budget limit or else you may end with the additional amount of money which may create a lag or problem in the next budget.  So it is necessary to manage all your expenses within the budget.
  • Track your cash and credit purchases: Cash and credit purchases should be checked regularly in order to have good control over the expenses and also to know the amount of cash in hand and your credit limit too.  Try to build good credit so that you can have a good financial position.
  • Provision for savings: Also make some provision for savings in your budget.  It may be in the form of different investments or with a combination of financial securities.  If you wish you can also enter as a Bitcoin trade to earn more profit for your investment.
  • Execute good control: After creating a budget, it is necessary to execute them in the right way and also to ensure effective control over the budget.  Track for any deviations in order to manage it.

How To Perfectly Monitor Your Investments

How To Perfectly Monitor Your Investments

The process of wealth creation does not end with investment.  You have to monitor them perfectly till you sell your assets.  Read on to know the best investment monitoring tips:

Bank deposits:  Make a list of them according to the chronological order of the maturity dates.  Set reminders in your mobiles so that you can suitably reinvest them.  Most banks provide auto reinvest option.  Hence if you would be busy and will not be able to monitor your FDs, opt for auto-renewal of these.  Another checkpoint regarding FDs is that you have to track whether any tax is deducted.  Check whether the correct amount is deducted according to your interest income.

Cryptos:  The advantage of Cryptos is that they do not require much monitoring when you trade using apps.  For example, BTC profit review says that no emotional quotient is involved when using the trading software.  Automated bots trade in cryptos based on the pre-defined limit set by the user.

Mutual funds:  Investing in a mutual fund requires some serious pre-investment analysis.   Before investing it becomes necessary to read the fund facts.  Find out where your money is going to be invested.  Depending upon your risk appetite select the right type of fund.  Analyze the charges levied.  You should not quit mutual funds when the share market is down.  Instead, you can begin investing in mutual funds during that time.  When the market is low, the units credited will be more for the same amount of investment.  Wait for a long period and redeem the money when the share market is booming.  Your returns will be more.  As these funds are taken care by expert fund managers the investor need not worry much about monitoring.  Entering and exiting the fund at right time is very important.

Land and building:  Investment in land and building involve a huge amount.  Hence monitoring their value and maintaining them properly is most required.  Only when they are maintained properly the resale value will be more.  Appreciation of land and building takes considerable time.  Hence patience is needed.  Also, sufficient care must be taken to ensure that tenants do not create any legal issues.  When you are buying land or building in a far away location, visit them regularly to avoid encroachment issues.  As far as building is concerned, even if they become dilapidated, the land fetches value.  Building fetches rental income.  Depreciation on the building can be claimed as an expense while paying tax.

Commodity Trading: An Overview

Commodity Trading: An Overview

Everything in the world revolves around money and Trading is a great platform for overall economic growth, new innovation, and development of mankind. Commodity trading is one of the aspects of trading which is prevailing since ages. Commodity trading is the same as that of equity trading, which involves buying and selling of commodities. Commodities are the basic raw materials or fundamental units that contribute to a healthier and wealthier lifestyle.

Types of commodities:

Commodities are categorized into the following groups

  • Agriculture
  • Energy
  • Livestock
  • Metals

The commodities are highly volatile and hence it is necessary to educate oneself before dabbling into the market. And also regular monitoring is required as commodity trading is a day to day affair and the changes in their value are more apparent. The commodity trading is carried out in two precise states: 1) Over the counter (OTC) and 2,) Exchange based.

OTC trading is straightforward and carried out in a single day. For instance, the trader purchases gold for a price of $1000 per ounce and sell the same to other customers with some profit. The same way we buy jewels in the jewelry shop.

The Exchange-based or future trade involves buying contracts. It means they have an expiry period for the contract and within that speculated time period physical delivery of the underlying commodity takes place. The value per unit fluctuates according to the market status and this the product acquisition takes place accordingly.

The commodity market is open 24×7. It offers high flexibility and we should be aware of its attribute of higher leverage.

Is Cryptocurrency, a commodity?

This is a critical question. Every trader is aware that the cryptocurrencies are assets and they do not possess intrinsic value. The Federal judge in the US gave a historic judgment citing Bitcoin as a commodity recently. This raises an important question. Will the cryptocurrencies are taxed, the same way as that of other commodities? The answer to this is still not clear! That is why the Governments of different countries are trying to devise principles and policies to regulate cryptocurrency trading. On the other hand, due to the massive support from the people, the trade experts and analysts have developed various easy to use trading bots like Bitcoin Trader to encourage crypto investments. Whatever, the Bitcoins and other digital currencies are becoming undeniable commodities in the WorldTrade platform.