Top 7 Things to Consider Before You Start Investing -
By Linda Terrill
Be it investors, potential investors or general public who is looking to start investing, everyone gets excited the minute they have extra cash on their hands and one of the usual plans is to invest it for quick profits. People want to start making their money work for them and that's a very understandable and rational thought but sure enough one needs to be practical about their finances as well. There is a lot of due diligence and groundwork that goes into understanding the financial markets before one must start investing and it's for their best as well!
An investment making company will generally help you get started with your investment and offer you end-to-end insights into how to make more money and how to invest money to achieve your financial goals. However, there are a few things you as an investor must consider before approaching any Asset Management Company or getting started on your investment journey.
Here are the top 7 things one should consider before they start investing to make more money:
1. Pay Off Prior Dues
No investment can start without you actually being done paying off your dues and clearing your credit. A clean slate for all your debts is very essential to begin investing stress free and focusing on returns.
2. Create Cash Emergency Fund
Before you start investing it is very important for you to have a separate cash fund prepared just in case of emergencies. There is no questioning the volatility of the market and you can't really depend on redeeming from market when in dire need. Having an emergency fund lets you start your investment journey with a bit more ease.
3. Create Financial Goals
One of the most important questions often asked is how to invest money and earn quick profits! However, there is much more to investing than just expecting returns. It is equally important to have your financial goals set it place and invest accordingly. Be it buying a dream home, car or saving for retirement, an investment making company will know exactly how to help you get started.
4. Understand Financial Instruments
There are tons of financial instruments in the market which offer numerous benefits. The bigger question often is what you as an investor wish to achieve, quick profit, long term stability, lesser risk or just saving for the future? It's not tough to make more money with your investments as long as your priorities are already quite clear.
5. Due Diligence on Investment Options
Asset Management Companies have a variety of financial instruments that an investor can pick from and ensure that they make more money. If you want to know how to invest money wisely on the other hand then it is best if you do your due diligence on all the financial products in the market and then make an informed decision to earn quick profits.
6. Research on market trends
How to invest money wisely is indeed a question every investor should be asking themselves or the investment making company who is helping them build a portfolio. Keeping updated about the market, staying on top of news in the world markets and knowing the current business trends makes it easier for the investors to pick their financial instruments for investment.
7. Evaluate your risk bearing capacity
Every individual has their own risk bearing capacities. An investment making company will often ask you the risk level your profile fits in as an investor as it helps them decide where and how to invest money and earn quick profits. How to invest money is often a question answered at the expense of how much risk are you willing to take for the same.
As simple and lucrative investing and making quick profit sounds, the truth is that unless you have a foundation in place and thorough research to build up, your investment portfolio won't be solid.
Asset Management Companies are there to help investors with their portfolio, right from researching and investing to managing and reinvesting investors' wealth. If you are new to the world of investing then these pointers will make sure that it doesn't seem intimidating anymore!
Your Credit Rating Explained - UK Only -
By Jim Romand
Having a bad credit rating will severely limit your borrowing options when it comes to consolidating your debts. If you have declared yourself bankrupt, have a CCJ (county court judgement) or defaulted on payments then you will find yourself up against it when trying to secure credit from a lender.
There are two main credit reference agencies in the UK that lenders will normally use, Equifax (08700 100 583) and Experian (0870 241 6212). These agencies supply information to the lender in order for them to give a fair assessment as to whether you should be eligible for credit.
The agencies compile their information about you from a number of sources including the electoral roll and then give you a credit score. The more points you get, the better your chances. However, every time you apply for credit you leave an electronic footprint on your record which can be seen by a potential lender. Finally, the lender, not the agencies, decide as to whether you should be given credit based on their own criteria and your credit history.
Usually, if you have a low credit score, the only credit available to you is through what is called the 'sub-prime' market. This is where the lenders charge you high interest rates to compensate for high risk involved in giving you credit.
If you are refused credit from a lender, they MUST say why. The Data Protection Act allows you to have a review of your credit application if credit scoring was used to help the lender decide.
Re-building your credit rating
If you have a low credit score and want to improve your credit rating then the first thing you should do is to make sure that all your payments to creditors are made on time. A late payment will almost certainly mean points deducted of your credit score. If you find yourself in the position that you simply cannot make payment, tell the creditor and make the payment as soon as you can.
Make sure that your credit history is correct and up to date by obtaining a copy of your credit history through the credit reference agencies. Any out of date or false information on your credit history could stop you gaining credit from lenders.
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One mistake a lot of people make is not putting themselves on the electoral roll. Even if you have no interest in voting you should make sure you are listed as this will give you crucial points on your credit scoring.
If you have previously declared bankruptcy and the order has become annulled, make sure a copy of the discharge of annulment is given to the credit reference agencies.
Other ways of boosting your credit rating include taking out store cards and making sure you pay them off on time every month. The more accounts you open and keep up to date with payments, the better your credit rating will become. Don't forget, you are only opening these accounts as a means to boost your rating, not as an opportunity to go on a shopping spree!
Whatever method of boosting your credit rating you choose, it will take time for your rating to improve, so be patient. Also, if you are still being refused credit, don't apply for credit too many times in a short space of time as this will have a negative affect on your credit rating.
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