MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

How To Help Your Family Financially

Admit it! Financial conversations can be awkward, but your relatives can save you in the future. Support them and your relationships with the help of these tips:

PROVIDING A LOAN

One of the most controversial yet clear-cut way to help a family member in need is by providing a loan. The loan is ideally short and straightforward. One must write the terms and conditions that both parties will sign into. This will help ensure a binding financial agreement. Other details that you should clarify include:

a. the total amount of the loan,
b. the installment conditions (e.g., monthly basis),
c. the interest rate calculation,
d. the payment deadlines, and
e. the legal action necessary to cease the payment.

CHIPPING IN AS A GROUP

Tackling a dilemma as a group will maximize your efforts and resources. Say your parents are asking you for an allowance. If your siblings are in a capable position to contribute their funds then, you must ask them. However, you must access whether they have a good relationship with your parents too.

Please involve your partners in the discussions as you do not want to create resentment between siblings and their spouses. If they cannot afford to loan money, they may suggest other ways to help (e.g., accompanying your parents during weekend errands).

EXTENDING AN OFFER

Providing a short-term loan can only last for a specific period of time. On the other hand, offering a means of living can go a long way! Consider hiring or recommending your relative to assist your company’s needs. The job can help him or her to earn money for paying bills or debts.

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Treat your relative like any other employee. Layout the job description as well as the task deadlines. Ensure that you will be able to deal with incomplete or poor quality of work.

GIVING NON-MONETARY ASSISTANCE

Some people may not be comfortable with the act of loaning money without the guarantee of getting payment. If you are unwilling to give cash to a family member, opt for giving non-monetary assistance such as gift certificates or gift cards. This way, you will have more control over what your money will be used for.

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No arguments there!

Sources: 1 & 2

4 Indoor Plants Believed To Attract Money

There are a host of beautiful indoor plants that have powerful effects on one’s prosperity. Whether it be money or luck, the following plants have earned a reputation for bestowing those who take care of them.

#1: MONEY TREE

As the name suggests, the Money Tree is recognized as one of the luckiest plants out there! Fung Shui principles highlight its abilities to purify air and to absorb radiation. It energizes the flat by increasing oxygen inflow and filtering air. To absorb radiation, it is recommended to keep the plant close to the Wi-Fi router, computer, or television.

The position of the plant is important too. You must keep it indoors in the southeast direction of the living room.

#2: JADE PLANT

The Jade Plant or Crassula ovata is a succulent with small pink or white flowers. This common houseplant is native to South Africa and Mozambique. Much of its popularity is rooted from its low maintenance nature. It requires little water to survive in indoor conditions.

Image Credits: pixabay.com

With regards to its appearance, its shiny and smooth leaves appear to have a yellow-green color. The branches are impressively thick too.

#3: LUCKY BAMBOO

Generally speaking, a bamboo is an amazing plant that brings peace and wise energy to your home. It teaches an individual how to be flexible for its spirit to freely flow or heal within. It is more than just an addition to your aesthetic!

In Feng Shui, the amount of stalks signify different aspects. Two stalks bring positive energy to your love life. Three stalks evoke happiness, five stalks give good health, and eight stalks bring wealth. Furthermore, a lucky bamboo with 21 stalks may bring good fortune and good health to your life.

#4: PEACE LILY

Last but not the least is the Peace Lily. This deep green plant laced with white blooms helps you to prosper physically, mentally, and financially. It can detoxify your air and get rid of the following toxins: formaldehyde, benzene and carbon monoxide. Bid farewell to the medical expenses caused by these!

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Moreover, this type of plant is super easy to care for. It survives best in shaded or dark environments such as small offices and corner closets. Interesting, right?

Sources: 1, 2, 3, & 4

Is Forex trading profitable?

Onprofitability: a definition

In the business world, an economic activity is profitable if it’s able to generate earnings relative to the associated expenses. In other words, profitability is basically the ability of making monetary gains from a given activity. In the financial world, on the other hand, profitability is often related to the ability of generating a positive risk-adjusted-return at a given point of time, even consistently over time. Given the first definition, it’s safe to assume that the Foreign Exchange market is profitable since it is clear that is possible to make money in the market, otherwise, it wouldn’t exist according to basic economic laws. Naturally, this is only taking the ability of making positive net gains into account, bringing risk into the picture makes our question a little bit trickier since it is known that the Forex market is particularly risky, which means that the chance of having an actual return differing from the expected outcome return is not negligible. In other words: you can lose money easily on Forex, especially if you’re not skilled enough.

Facing the reality: Forex is not a magic alternative

The internet is full of promises claiming the ability of making impossible returns with minimum effort. Those scams are not exclusive of the Forex market, however, it’s a fact that they are common in the industry. Reality is that Forex is like any market, having the proper skills and the determination of taking the necessary amount of risk to generate profits is essential, and despite all of that, making surreal profits in a reduced time span (way higher than those of skilled Hedge Funds) is not a possibility.

Proper trading strategies and risk aversion

Like any market, having success in Forex is related to the quality of the involved trading strategies and the behavior of the investor. Both are important components in the making of a successful trader in any market, and both require concessions, time and money. Acquiring the ability to make the right decisions, designing proper trading strategies and being able to manage the risk properly takes time and a huge amount of effort, besides that, a proper behavior is required, if you are a Risk Averse investor this might not be the right option for you if your purpose is making economic gains, since is a fact that profits are proportional to the amount of risk the investor is willing to take. It’s also important to get a proper training and to have access to the right information, since (as we just said) the internet is full of scams and empty promises.

Coming back to the initial question: is Forex profitable?

Like many things in life, the answer depends on who you ask. If you ask an investor who has been trading successfully for years after spending a considerable amount of time and money the answer is probably going to be positive, otherwise, he wouldn’t invest his time and efforts in such activity. On the other hand, if you ask an unexperienced risk averse investor you might get a negative answer, since (as we stated above) Forex is not a magic mechanism and being successful requires effort. The best first step is to find the right forex broker for your needs with a recommended website CompareForexBrokers.com.

Why Do People Think That You’re Poor?

Whether it is the way you dress up or the way you carry yourself, people are usually quick to judge whether you are wealthy or not.

I vividly recall the time when my university friend asked me hangout. In our tight group, she announced that I should be given the opportunity to choose the restaurant that night. I was flattered at first until she stressed that I was the “poorest” one. I soon realized that the girl was not a genuine friend. True friends support each other no matter what.

Her perception was influenced by the fact that I did not have a job at that time and was only relying on my parents’ allowance. Knowing how much money an individual makes can completely change your perception of them. As much as you want to deny that money makes no difference in your perceptions, it definitely does!

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People can judge your worth in a variety of ways including these:

#1: WHAT YOU WEAR

It goes without saying that your clothing leaves a lasting impression. In a snap of a finger, a person can determine whether you are a successful businessman or an unemployed student. Flashing your designer bags and watches can give you a heads up!

#2: HOW YOU TRAVEL

In some cases, your form of transportation can send a message about how much you make. People who travel via car are seen as more successful than those people who take public transportation. The same goes for people who travel via business class as supposed to travelling via economy class.

#3: WHERE YOU LIVE

Singapore’s land scarcity has led to living situations such as government housing, landed estates, and condominiums. The last two options are perceived as more lavish than living in HDB flats. Size and location matters!

#4: HOW YOU SPEND

Being frugal may be seen as a poor man’s strategy to survive. Some people feel the need to fly under the radar when couponing. While, others are ready to open their coupon binder and shop. A stranger may perceive your fondness for coupons as a desperate move.

#5: WHAT YOUR FACIAL CUES ARE

A study once compared the faces of different groups that vary per gender and race. As it turns out, the other factors mattered less. People carried a “wealthy appearance” due to their facial cues. Some faces seem to be more experienced and are deemed to belong to the poorer group.

According to Psychologist Thora Bjornsdottir, a PhD candidate at the University of Toronto, “the signals in your face about your social class can actually then perpetuate it”. People with a wealthy apperance are more likely to be hired for the job as it creates a self-fulling prophecy, which influences your interactions and opportunities.

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Whether someone seems poor or not, it is important to know that our feelings should be tied up with how people act with their money. Are they greedy or generous? Are they willing to loan to a relative or not?

5 Important Queries To Ask Before Getting A Credit Card

1. WHICH ONE DO I NEED TO APPLY FOR?

Like a tempting box of chocolates, all credit cards are not made the same. Be sure to shop around and to compare cards of similar types. You must know the necessary requirements, sign-up offers, rewards program, and other perks that come with it. Some cards may offer free airport luggage, while others may offer car rental insurance. Choose the benefits that suit your needs.

2. ARE YOU ELIGIBLE?

Applying for a credit card is a straightforward process that requires basic information such as your NRIC and primary address. Know which information and documents are needed to apply for said credit card. For security purposes, some institutions may extend their research by knowing your mother’s maiden name.

3. IS IT BETTER TO APPLY FOR A CREDIT OR DEBIT CARD?

The most significant difference between debit and credit cards is protection against fraud. If someone makes a fraudulent charge with your debit card, the money is directly deducted out of your bank account. It may take weeks to get a refund. When it comes to a credit card, you can dispute that the charges never left your account.

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Other benefits offered by credit cards include extended warranties, rewards programs, and return guarantees.

4. WHAT ON EARTH IS A CASH BACK?

Credit card companies offer different programs for redemption. When a credit card company gives you a certain percentage of what you put into your card then, that is called a cash back. You may be able to use this as a credit toward your current statement, to purchase gift cards, to get discounts when you shop online, or to deposit the money back to your bank account.

5. WHAT IS A STATEMENT CREDIT?

The positive amount on your credit card bill is called a statement credit. If you unintentionally overpay, many credit cards will apply a statement credit toward your future purchases. The act of applying for a cash back to a statement credit may lower your balance.

Image Credits: pixabay.com

Sources: 1, 2, & 3

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