Published on: 13 June 2019
Last Updated on: 28 June 2021
What are your investment goals? Some of the most common savings and investment goals people have are retirement, education funds for children, saving to buy a home, starting a business, switching to a more satisfying but lower paying career, getting married, or even going on a vacation. These are all great reasons to save and invest, and they all come with different investment strategies, timelines, and risk tolerance.
None of them are mutually exclusive. In fact, you should probably be balancing a few of these investment goals at the same time. Whatever your other savings goals, retirement should always be on your mind, and that means long-term growth with a balanced portfolio. While goals such as buying a house or going on vacation may have much shorter timelines, retirement offers an opportunity to grow your savings to new heights through compound interest and balancing high-growth, high-risk investments with low-risk alternatives.
Invest in Low-Risk Assets like Gold:
One low-risk asset you should consider buying is gold. Many investors consider it superior to other low-risk assets like treasury deposits or money market deposit accounts. There are a few qualities that make gold a better investment:
Inflation-proof; since 1971, the value of a dollar has gone from 1/40 of an ounce to 1/1300 of an ounce, while the gold-housing ratio (the relative value between gold and real estate) is about the same.
Highly desirable when inflation is higher than interest rates.
Performs well when stocks do poorly, helping you offset losses.
Highly liquid and you can sell easily even when stocks are considered toxic.
Buy gold online for a cost-efficient way to add it to your portfolio. The prices will be lower than a physical shop, and shops today are often in the business of selling more collectible coins. Get straight to the punch by buying coins and bars that were made for the modern investor – straightforward, predictable costs and no-nonsense products.
Bullion vs. Paper:
Gold bullion is your safest bet for investing. You have maximum control and minimum third-party risks. Paper or ETFs place your money and your trust in management and trading practices that aren’t easy to understand, such as lending and futures trading. Gold bullion is by far the more secure option.
Buy Gold Bars or Coins:
Now that you’ve limited your options to physical gold bullion, there is still a lot to choose from. Gold bars and coins are more cost-effective products. All forms will have premiums over spot prices. It costs mints labor and machining to create bars and coins, and companies face expenses such as shipping, storage, and insurance, which they recoup through premiums.
Gold bars have less production value than coins, so they are an excellent way to save and buy at something closer to spot prices.
Gold can help you meet your investment goals. Allocating a portion of your portfolio to gold means you have a highly liquid, inflation proof asset you can depend on whenever you need it, whatever the market looks like.
Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.
You need to make sure that you have considered how you will buy insurance before you get started managing your company. Most people who run a large business like this think that they just need to get insurance for their vehicles, but you should be a bit more clever with the insurance that you buy. There are some steps below that will make your life much easier, and each of those steps will be easy to follow because you only need to have a look at what your options are when talking to an agent. Let the agent guide you and realize that you have a lot of things that actually need an insurance policy.
Insure The Vehicles First
When you work with a company such as Connect Business Insurance, you will still insure the vehicles first. You need to have insurance if you plan to send the vehicles on the road. You need to get the vehicles valued and insured properly so that they can be replaced on their own. A lot of companies just own the trucks, and you are hauling someone else’s trailer. Even if you own your trailers, they get their own insurance when you have the policies written up.
Insure The Trailers
You can insure the trailers with no trouble because they have their own value in and of themselves. When you do not own the trailers, your partner needs to insure their own trailers. They will cover the loss of the trailer in the event of an accident, and you can move on to other types of insurance that will actually pay to replace the items that are in the trailers.
Property Loss Insurance
You can get property loss insurance that will pay for the loss of anything that was in the trailers in the first place. When you are getting a policy like this, you need to get a general replacement value that could be used for anything that you are hauling. All you need to do is keep track of the things that are in your trailers because that will help you file the claims in the future. You also need to remember that you must have these manifests ready for any insurance claim if the partner is paying for the loss of property.
Profit Loss
You can take out business insurance that will be used to pay for lost profits. When you need to shut your business or stop using trailers or trucks, you can use insurance to pay for lost profits. This is how a business can afford to stop working when it has an emergency. You also need to remember that these policies have different values based on how much you think a lost day of work is worth. Let the agent value your workday for you so that there is no confusion.
Use The Agent Often
You should use an agent in all cases because that is the only person who can properly value your policy, write the policy, and offer customer care.
Read Also:
How To Choose The Best Auto Insurance Company?
Have You Paid Enough Attention To Liability Insurance When Launching Your HHA Business?
Many people already know that mutual funds and stocks can be excellent sources of income and present great opportunities for investment. When it comes to monetary assets that give outstanding dividends, then the concepts of stocks and mutual funds are quite easy to understand and they have the potential of maximizing your earnings.
Both stocks or funds are now known to be some of the most popular investment vehicles that many investors are interested in. This article discusses mutual funds vs stocks.
Mutual Funds Versus Stocks
It’s worth noting that stocks refer to the physical representation of part of a company’s value that can be traded on the stock market. Therefore, when a company decides to go public and issues its shares, it means the combined value of the shares either owned by persons or the company is what makes the total value of that company.
As a result, being a shareholder means you own a small part of the company and you can take part in all the annual shareholder meetings.
On the other hand, mutual funds are made of a pool of funds gathered from several investors to buy securities, such as stocks, bonds, and other assets. Simply put, mutual funds refer to a collection of bonds and stocks that fund managers manage. Hence, if it's a debt mutual fund, then it can have government bonds and securities, while an equity mutual fund can have stocks.
Ideally, an investment in mutual funds is a type of investment in bonds and stocks that is managed by an investment firm. Direct investment in stocks is considered to be an active type of investment that involves you handling the buying and selling of the products yourself.
For a new investor, perhaps it’s a good idea to choose mutual funds as it allows the experts to handle the investment on your behalf. Direct investment in a share is great for people who understand the market and can manage it themselves.
Key Differences Between Mutual Funds And Stocks
Keep in mind that shares are usually offered to the public as a business growth strategy for companies while mutual funds are just an investment for people. Because mutual funds are a portfolio of stocks belonging to a company and managed by a fund manager, it means you cannot control the trade of stocks. Also, you cannot decide to exit from some of the stocks that are in the portfolio.
As explained earlier, with mutual funds, an investor is not involved directly in the management of a portfolio except when it’s the time to choose the fund. This is the reason why it makes sense for new investors to opt for mutual funds, especially those who know little about the stock market.
Direct investment in shares needs a good knowledge of the company's performances and the stock market. No doubt, it’s a hands-on activity that needs quick market decisions and is suitable for experienced stock traders.
Read Also:
Why Off-Plan Investment Is Beneficial For Expats
Mistakes that Expats Make when they Move Overseas
6 Steps to make Your Trade Show a Success
Before entering into marriage, you and your soon-to-be lifetime partner should talk about finances. Both of you might have different ways of handling your finances.
Settling down and starting to grow a family is one big responsibility that both of you will share. One may be frugal and minimalist, while the other is the opposite. Your differences, if not taken seriously, like by discussing it, might cause a collision.
Just let me share one fact about what happens in marriage nowadays. Few are getting married. Many are getting divorced. And according to Forbes, one of the factors why couples end up divorcing is money issues. Unsettled issues!
It's not the main factor, but somehow, it contributes tension to the couple. And we don't want to let that happen to you. This article aims to help you understand what a couple should do in creating your budget.
Take this opportunity to know what couples should do in handling money. These best-picked tips will guide you in building your budget.
Vital Tips For an Effective Budget-
Communicate at all times:
Discussing financial matters is vital, and it's the only way to know each other, especially in handling money.
Let's face reality. Not all couples have the same spending habits. One might want to save more and choose to live a simple lifestyle, while the other might want the opposite.
As you can see, managing your finances contrasts with the other. With that scenario, both of you might encounter some financial struggles while building your budget goals.
Through proper communication, you can set things up with an open mind. But both should adjust each other's expectations. This way, you can organize everything and meet one's goal.
Remember, this isn't a simple game to win. It's a real-life game that both should work together as one.
Categorize your budget:
If both of you feel like your goals are somewhat overwhelming, you have to remember that you can only eat an elephant one bite at a time.
By simply categorizing your budget, you can have a more exact path to follow. You can see which to prioritize and which is more necessary. Do it one step at a time.
As you continue to discuss things, one should jot down everything. This way, you won't miss or forget some information or idea.
Identify your household needs:
Both should identify your household needs. This way, it will become easy for you to categorize them. List them down. Afterward, you order them to either mandatory expenses, significant, nice, or unnecessary.
Don't forget to include your existing debts on your list. May it be a mortgage loan, credit card, other outstanding debts, car loans, utility bills, food, and other different personal needs.
After listing things, you can now identify which category it is.
Mandatory expenses and significant ones should be your top priority. The rest will be considered as your minor focus.
You might be wondering what mandatory expense is? In layman's terms, mandatory means something that obliges you to perform. That means "mandatory expenses" are something that obliges you to settle.
For instance, debts that should be settled fall to mandatory expenses. Whatever type of debt it is, it will be considered mandatory spending.
Settling debts might be overwhelming. Why not consider paying your debts in full using a personal loan from a licensed money lender Tampines? It's a form of debt consolidation. It merely means combining your debts into one.
For example, you consolidate all your credit card debts and pay them using a loan from moneylender woodlands. You settle your debts in total, with lower interest and one monthly payment.
If there's something you are paying because you need it, you can categorize it as a pressing need.
Important or significant things refer to your basic needs. Foods, clothing, water, electricity, internet connection, and the likes are your basic needs.
Nice things give you fun and convenience, but not that important. For example, car accessories, upgrading or changing phones, buying too many dresses. Everything's look nice but not necessary.
Unnecessary things are simply those that don't have value. For instance, you purchased an online subscription that you seldom use for leisure. It's a total expense that you don't benefit anything. And it only cost you money.
Spending money to buy trendy things, eat at a restaurant, and travel around is not bad. As long as you know to discipline yourself. You can never deprive your happiness in reaching your goals.
But if you want to achieve your financial goals faster successfully, you have to be patient. Always remember that it takes strong commitment and determination to do it. Saving more, spending less will help you a lot.
Set money goals:
Setting goals means taking in-depth planning. It is about creating a path towards your goal, guiding you on how to achieve it.
Achieving your money goals is not impossible as long as you make a well-thought plan. To make it happen, both of you must cooperate with your plan.
Visualize what both of you want to have. Both should be specific.
Let’s say you are dreaming of buying a condominium property. In what location? How big should it be? Would it be a two-bedroom or three-bedroom unit? Such questions show what particular property you dream of having.
Aside from being specific, you evaluate whether it is realistic and achievable in your current state. Your partner dreams of having a sports car. The question is, is it realistic to get such a thing based on both financial capabilities?
The next thing you must consider is the time-frame. Home property is expensive and needs a considerable amount of money. If you aim to buy one, you have to set a timeline.
Just say, after two to three years, you will buy your dream property for your family. Within those three years, both will have to work hard and commit to saving a part of your income until you reach your specific goal.
The mentioned tips above will be the most thoughtful way to start building your budget goals. Otherwise, the case can probably push you to sacrifice valuable things. You and your partner should evaluate your money flow before you decide.
Determine how much you earn:
The next thing you do after setting your goals is to determine how much earning you have. There are types of income that we make - gross and net income. Among these two, net income is what you are going to use in creating a budget.
Gross income is a sum of money before your taxes and deductions. In contrast, the net income is your take-home pay.
The question is, are both of you work as a salaried employee or not? If you are an employee paid hourly, your income would likely be stable.
But if you work seasonally, or you are self-employed, that means you earn irregularly. That said, you have to track your income section monthly.
Track your spendings by having a meeting:
You both need to track your spendings. You can do it daily, weekly, or monthly. But for couples who have just begun to create their budget goals, it is recommended to do it every day. You can eventually do it weekly or monthly.
You talk about where your progress is towards your budget goals. You check every spending you take on different categories and manage what's left.
You can do less work by using some financial apps exclusively designed for couples to organize and track finances. It gives convenience and, at the same time, can make your meetings shorter and more effective.
The Grand Debate – Joint or Single Account
Any newlywed couple's financial choice is whether to open joint or separate accounts.
Now, many might love the idea of sharing finances such closely, or while others might run away from the idea.
There is not wrong or right about having a savings account. It is all about advantages and disadvantages based on your relationship with money and each other.
Some like more autonomy when it comes to financial reasons!
However, you should decide upon assessing both the pros and cons of the matter!
When it Comes to Joint Accounts
Many couples opt to open joint accounts as a way to keep their finances simple. With a joint account, each partner puts their income into one account, making it easier to manage household bills and expenses and work together to reach their financial goals.
It also promotes transparency and trust, and as everything is out in the open, you and your partner will both be on the same page when it comes to spending money.
Joint accounts can also make it easier to achieve long-term savings goals such as buying a house or traveling.
However, you will need to communicate well because if you have different spending priorities, this could cause tension.
In terms of Separate Accounts
On the other hand, keeping separate accounts can help partners feel more in control of their finances. This is especially true if one tends to spend more on hobbies or interests.
With separate accounts, both individuals agree on how much money they will contribute toward shared expenses (like rent, groceries, and utilities) and what they’ll keep for themselves.
While this approach allows for independence, it requires open lines of communication and clearly defined expectations.
Are you ready to begin your financial journey?
Creating a budget has to be undergone through in-depth planning. Start-ups aren’t easy.
Both of you might face financial challenges along the way. However, with concrete planning, if both are committed to achieving the goals, nothing is impossible. Follow what you should do, focus, and get it one by one.
You should also consider discussing bank accounts, and other matters early on.
In the end, some couples find that sharing a hybrid approach works best for them.
This is where they have one joint account for shared expenses and then each maintain a separate individual account for their own personal spending.
This way both individuals get some level of independence with their finances while still maintaining financial transparency.
The most important part here is to communicate on a regular basis and adjust along the way to ensure both individuals’ needs are being met and goals are being achieved.
Read Also:
Make Your Savings Goals Come True with Gold
Eight Essential Tips For Getting Out Of Debt
The Importance Of Saving: The Bedrock of a Bright Financial Future
