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Guide (quick) to manage your finances in 2020

Mazhar Hassan



Do you feel that money escapes your hands? Does a car or hitch for an apartment seem unattainable goals? Make these tips the 10 commandments of your financial life. And become an investor.

“Saving is the basis of fortune,” says the saying. But among many professionals, especially if they are young and single, temptation to waste prevails. Managing your finances in a responsible way not only has to do with securing the future, but with reaching short, medium and long-term objectives on such concrete topics as going on vacation or buying a house. Are you determined to change your relationship with money and improve your quality of life? Here are 10 tips that will help you do it. Remember that it is never too late!

1. Spend time with your finances. There is a myth that economically successful people have a natural gift for money management or, simply, luck. The reality is that building a heritage requires discipline, perseverance and above all, that you dedicate time.

Start by reading as much as you can on the subject to understand how money works. There are very good books for novice investors, such as the bestselling Rich Father, Poor Father , by Robert Kiyosaki, or How to handle your money (without going crazy in the attempt) , by Adina Chelminsky. 

Also, spend at least one hour per week to review and analyze your finances. Start by calculating the value of your assets: for this, subtract the total of your assets (what you own, such as cash, checking accounts, real estate, cars, furniture, etc.) all your liabilities (loans, credits, credit card balances, etc.). This exercise will help you recognize what financial position you are in.

2. Eliminate debts. Debt means committing future income. Some example? Not being able to invest the money to generate interest or take advantage of that 50% discount in the room we need.

Take advantage of salary increases, bonuses, bonuses or savings funds you received at the end of the year to get rid of debts. If the level of your liabilities is such that you feel in a dead-end situation, ask for help. Get in touch with your creditors and explain the situation, they will be the most interested in finding a way to pay them. You can also seek guidance with your financial institution, consumer protection agencies in your state, family and trusted friends. It is very important that you be very sincere and realistic with the creditor, and with yourself, when setting the amount you will pay monthly. And the next time I tempt you to borrow to buy that plasma screen or go to Acapulco on the weekend, remember that money should work for you. And not you for him.

3. Build your budget. If you are one of those who finish the fortnight in red, something is wrong in your planning. And surely it is the so-called “ant spending”, those small and unnecessary waste you fall into, such as paying the interest on the credit card or throwing away the pantry that was spoiled.

Help yourself with a personal budget. Cmienza pointing for a month all our expenses. The more details they have, the better you can realize how you should modify their consumption pattern. You will be surprised at everything you spend on unimportant things.

hen add the fixed expenses, whether monthly (rent, telephone, tuition) or those with a quarterly, semi-annual or annual (taxes, insurance, etc.), from which you must calculate their corresponding monthly amount. Once your expenses have been consolidated, analyze them and eliminate those that you consider superfluous.

Finally, make a distribution of your salary next month according to your priorities. Do not forget to allocate a percentage to savings, if possible not less than 10%. Consider it a fixed expense in your budget. 

4. Engage yourself just to build heritage. Indebtedness implies a great responsibility, so think long before doing so. Request a loan to acquire goods such as a car or a house “that help you consolidate your assets”, but avoid doing so to buy appliances or take those vacations that are far from your possibilities. Keep in mind that the credit fee should not exceed 20% to 30% of your income. If not, you will surely get into trouble.

Specialists recommend meditating on the following points:

– A credit will affect all financial aspects of your life. Make sure you can afford it. It also analyzes your way of spending and attitude towards commitments.
– Consider the total cost of the credit, including opening costs, commissions, etc., and take it as a fixed cost that you must include in your budget.
– Upon receiving your income, and to avoid temptations, the first thing you have to do is separate the fee from the credit you must pay in a certain period.

5. Control your credit cards. With credit cards, and the possibility of making minimum payments, the great temptation is to spend money that you don’t have. But usually it is forgotten that the annual interests of a card can reach 60%, and end up committing whole months of salary.

First of all, a card should help you facilitate the payment of your expenses (in short, a plastic can finance you without costs up to 45 days) and take advantage of offers. That is why the smartest way to use it is to pay the total debt, something that only 30% of cardholders do in Mexico. Also, be very careful with the famous “interest-free installments”, because if for example you embark on 18-month plans for Christmas gifts, next year you will continue paying the expenses of these holidays! Makes sense? Don’t let yourself be bombarded by offers from banks and financial institutions and stay away from the temptation to handle more than two credit cards. Use mainly one to keep a better control of your expenses and take advantage of the benefits of membership programs. Keep another to get out of unforeseen events,

6. Make sure. Against popular belief, insurance is an investment, not an expense. You must take care of your assets (the car, for example) against unforeseen events. And not to mention if it is about health. In addition, facing an emergency or catastrophic situation can break a patrimony of years. Did you know that an emergency appendicitis operation in a private hospital can cost between $ 80,000 and 150,000 pesos?

To understand how insurance works, the most important points are:
– Sum assured. It is the total expenses that your insurance will cover.
– Coverage Diseases, waiting times and hospitals included in your insurance.
– Deductible. It is a fixed amount of money that the insured must pay at the time of receiving coverage for an accident.
– Coinsurance. It is the percentage of the total cost of the loss that is borne by the insured.
– Assistance services. Extra benefits, such as ambulance transfer and medical fees at preferential prices. 

To adapt the cost or premium of insurance to your budget, “play” with factors such as the sum insured, the deductible and coinsurance. A sum insured without limits is not the same as one of one million pesos. Or a deductible of $ 4,000 that of $ 17,000. Analyze your ability to pay and what support you have in case of an unforeseen event. And very important: contract with legally established companies. 

7. Save with a goal. Saving to save is very difficult, and you will surely be discouraged soon. Money should be a means to help you reach a goal, not an end. “The most important thing is to have a short-term, attainable goal, because nothing teaches better than success,” says Mayer of IFIP.

7. Save with a goal. Saving to save is very difficult, and you will surely be discouraged soon. Money should be a means to help you reach a goal, not an end. “The most important thing is to have a short-term, attainable goal, because nothing teaches better than success,” says Mayer of IFIP.

Your goal can be from changing the model of your car next year to delivering the hitch of your apartment in three years. Once that goal is established, and based on your budget, you must design a financial plan to achieve it that includes the following points:

– Investment objective (what do I want the money for?).
– Term (how long do I want to gather it?).
– Initial capital (how much money can I start?).
– Investment instruments (how will I maximize the return on my savings?). 

The finishing touch is to have the discipline to follow that investment strategy. To help you, there are operators and distributors of investment funds that offer to direct your periodic contributions directly from checking accounts, as if it were your telephone or cable TV account.

8. Put your savings to work. Do not leave your money under the mattress and make it generate a return, even if it is minimal. You can not only invest in financial instruments, but also in a capital asset to start your own business or even in yourself, which you always dreamed of doing that diploma in marketing to get a better job.

If you have already decided on a bank or a financial institution, do not stay in the traditional term investment accounts or promissory notes. Funds or investment companies can give you more attractive returns. The important thing is that you define what resources you can invest, what goals you want to reach and what risks you are willing to take. Approach financial institutions to help you define your investor profile and make the best decisions. Measure your risks and be patient. Many people expect spectacular gains in the short term and get discouraged soon.

9. Diversify yourself. If you are determined to be part of an investment fund, the best thing, as long as your initial capital allows, is that you distribute it in two or three different options to diversify the risk. 

This diversification must be directly related to your investor profile. That is, with your age, liquidity needs, with the investment horizon that you have set and with your level of risk aversion. For example, if your goal is to hand over a house in five years, you can allocate 10% of your capital to a liquid fund, which allows you to face an emergency; 20% to a medium-term fund, which gives you more interesting returns; and the rest to a higher risk fund, but that assures you more significant gains in the long term (not less than three years).

10. Buy currencies just to protect yourself. Due to decades of devaluations and economic instability, many people acquired the habit of saving in dollars and keeping them at home or in the bank’s safe. But, in the last five years, betting against the Mexican peso has not been a very profitable alternative for small and medium investors. 

The picture will not be different during 2008. Analysts estimate that next year the peso will depreciate around 4% against the dollar, while against the euro it could do so between 6% and 7% at most. Therefore, the recommendation is that you prefer this investment option only if you have debts or payments scheduled in currencies, but not if you are looking to maximize the performance of your savings.

Where high yields can be obtained by investing in foreign currency is in the so-called International Foreign Exchange Market or Foreign Exchange Market (Forex). It is a market that operates 24 hours a day, so it has great liquidity and allows to obtain large profits (or losses) in short periods. It is one of the most risky and volatile markets, in which powerful investors invest with a highly diversified portfolio, and who can afford to speculate and lose.

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What are the ways to choose the right truck finance service?





More and more people are now taking on jobs that are directly or indirectly related to heavy lifting on the roads. This is why the truck purchase is increasing dramatically in popularity. Truck related jobs can earn you a good fortune, and this is why more people are getting into the industry.

There are many ways in which trucks can be purchased in a convenient manner. One of them is to choose the right truck finance service. This can be done in many ways. Here are some of the tips to consider when choosing the right truck finance:

Determine the needs

The first and foremost step that you need to take into account is to determine what your needs and preferences are. Each and every person has a different preference when it comes to choosing the right truck finance. You should ask yourself questions in relation to the type of trucks you want, the size of the truck that is needed for your business, the usage of the truck, and what would be the frequency with which you will utilize the truck. This will impact your financing options.

Consider different products

This is a no brainer. There is no doubt in the fact that comparison shopping has always helped people purchase trucks. You need to consider the wide range of financing options in the market. Each option would have different features that may suit you in a distinct manner. Know about the interest rates and other pertinent terms and conditions that would impact your selection. Lenders like AGM Finance can be consulted for better details.

Factor in the taxation issue

Taxation is another important issue that is not only relevant from a legal perspective but also from a financial view. It can save you a great deal of money. If you factor in the taxation aspects of truck finance, you can save more money than expected. Therefore, look for the tax concessions that you get when you consult any lender. It will be helpful in the long term.

Consult a professional

Choosing a good borrowing option can sometimes be a difficult task. It requires a lot of decision making. For example, you need to know what the exact terms and conditions are and how much the interest payable will be. This can have an impact on the decisions that you will take. Therefore, you need to consult a professional who is an expert in the field. This will enable you not only to make well-informed decisions but also get a good deal that will tend to be lucrative in the short term and the long term. Hence, you should advisably consult a broker.

The bottom line

Above are some of the major factors that you must take into account when choosing the right truck finance. However, this is not an exhaustive list, and you must look for more options in order to get hands-on the right option available in the market.

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