Tips of the week:
1. If you want to be a successful investor, then you should plan better. There are no fancy tricks to good investments.
Investing is not a cakewalk and there are no simple rules to emerge out as a successful investor. Like the returns, risks of loss are also plenty in the world of investing. You should have adequate knowledge, proper planning, intelligence, mental resilience so as to come out as a victorious investor.
2. Giving gifts is easier if you know the personality style of the recipient.
It is an usual practice to give gifts to the near and dear ones in the festive occasions. If you are well aware of the personality style of the person whom you are giving the gift, it becomes very easy to select the right gift for that person.
3. You cannot justify your brand new car by thinking that it will keep on holding value. Vehicles lose value quickly!
With time, machines depreciate in value. Cars are also machines. You need to keep it in mind that the value of the cars declines at a very fast rate.
4. It is better to avoid buying things that you can't afford with money that you don't have just to impress people who don't bother about you!
The expenses that you make should be within your control. Out of excitement, you should not spend beyond your limits. You need to make sure that you spend according to your budget.
5. Teach your kids that there is a connection between work and money – if you work, you will get money and if you don't, then you won't get money!
There is no substitute to hard work. Only by working hard, you can improve your fortune. Hard work enriches you financially as well as emotionally.
Queries of the week:
1. Why should you regularly review your credit report?
Credit report showcases your credit history. If there in any late payment, default, foreclosure or any other credit-related scar, these are shown up in the credit report. Moreover, there might be some errors in the report too. In order to check, whether the report is correct in all respects, you need to review the report on a regular basis. This is important because before making you a loan offer, your lender pulls your credit report.
2. What are some of the alternatives to invest money in stock market?
You can invest in comparatively safe avenues such as government bonds. Again, if you are not comfortable in directly investing in stocks, then you can opt for investing in mutual funds.
3. What things should you keep in mind during the holiday season so that you do not get financially stressed?
Make it a simple, low-profile and family affair. Make a budget for the festive occasion and make sure that you don't cross your budgetary limit.
4. Will it be possible to sell off the car if I owe money on it?
Before purchasing the car, the buyer will check whether any lien is attached to it. It will be difficult to sell off such cars. Anyways, you can come to an agreement with the buyer on what to do with the unpaid amount. If some agreement is reached, then you can sell the car.
5. Will it be a good option for women to take control of their finances or should they give that responsibility to their husbands?
Whether you are a man or a woman is not the main thing here. The important thing is that if you are comfortable in managing your own finances, then you should do it on your own. Otherwise, you can take expert's help. In fact, studies show that women are better in managing finances than the men.
Active rain posts of the week:
1. Qualification criteria of obtaining a jumbo loan
If your aim is to own a big and luxurious house, then you have to go for a jumbo loan. Jumbo loan amount is more than the conforming loan amount set forth by the Office of Federal Housing Enterprise Oversight (OFHEO). Jumbo loans are not guaranteed by the Freddie Mac or Fannie Mae. Institutions other than Freddie Mac and Fannie Mae are responsible for securitizing jumbo mortgage loans. Since the jumbo mortgages carry higher credit risks, the rate of interest on these loans is comparatively higher than the mortgages securitized by Fannie Mae or Freddie Mac.
2. Different costs involved in a VA loan
VA loans are aimed at the veterans in the country as well as their spouses and these loans are guaranteed by the Department of Veterans Affairs. The most lucrative feature of this loan is that no down payment is required for this loan. But, some closing costs and fees are applicable to this loan. Some of these fees are paid by the home buyers whereas some of these are borne by the home sellers.