Benefits of having a financial goal

In a world full of increasing distractions, it is incredibly beneficial to have goals. These help you stay on track and mean that you always have something to work towards, which can lower feelings of listlessness and depression. In particular, because money is such an important commodity in daily lives, the benefits of having a financial goal cannot be understated. Here are some reasons why setting those sights on established monetary goals are so good for you. The Credit Union gives the best tips on how to come up with the financial goals.



coins and pensFinancial goals can give you an idea of where you are and where you want to go. It is all too easy to ignore your current financial state and bury your head in the sand when bills start dropping through your door. However, setting yourself financial goals (be it simply repaying money that you owe, or striving to earn a certain amount by a certain time), will force you to acknowledge your situation and look for ways to improve it, which makes you feel more in control of your life.

Sound financial decision

Financial goals can make you realize ways that you are wasting money that you weren’t aware of. They say that pennies make pounds, and all too often it goes the other way, with small amounts being paid out adding up to sums that take us all by surprise and leaving us with a shortfall at the end of the month. Buying that panini or coffee instead of making breakfast at home might seem like just a little spend, but it can easily add up. Having financial goals makes you more aware of what you are spending your money on, and can help you curb those bad habits so that all of your intentions are on where you want to be financially.

Understand priorities

Financial goals will make you understand where your priorities lie. It could be that you have thought about making money, which will, in turn, lead to a better lifestyle for you and those you care about, but you have left it as a pipe dream (meaning that you have no clear path towards it).


wallet and winch Setting your intentions on your financial goals mean that you will stop putting other things (like nights out drinking, expensive, needless purchases, those constant coffees, and paninis) in front of the bigger picture. Create and focus on your financial goals, and you might just surprise yourself with how quickly you achieve them.

Binary options trading – The basics and most popular types

Although many business investors are still unfamiliar with them, binary trading options have become quite popular and attractive in the last couple of years. Even though they are often confused with mutual funds, bonds and stocks, binary options are quite different. They are also quite simpler, as well.

Instead of making an investment in a particular company, like Facebook, Google or Exxon, with binary options, you will essentially bet on fluctuations in the prices of various options. If you make a correct prediction, you will win a certain, predetermined sum of money. If you make a wrong prediction, you will lose your entire investment.

No rights or wrongs

man in suit holding cash Losses and gains are not actually determined by how “right” or “wrong” you end up being. What this actually means, is that you will earn the exact sum of money, regardless of whether the stock you are betting on is valued at $20, $21 or $21.50. Also, if you make a wrong bet, you will still lose your money, regardless of whether you missed your prediction by a couple of dollars or a single cent.

Different types

Binary options trading can be conducted in the US, Canada or on an international level. When trading, you also have the option of investing in both international and national options. When it comes to the actual types of binary options, the following are some of the most popular and prominent on the market.

Touch-based options

Touch options come in three main types; the double touch, the no touch and the touch options. If you decide to bet on a touch option, you will basically bet that the value of a particular option will rise above or up to a certain amount. However, if you decide to invest in a no touch option, it means that you will bet that the value of a particular investment will decrease to a certain level. Lastly, betting on a double touch binary option will mean that you will place two different investment bets on two different options. Should you make such an investment, you will earn money in case either of these predictions ends up being correct.

All of these options are usually bought over the weekends and subsequently traded during the weeks. Once you make your bets, you will have an entire week to make a certain number of changes, which can lead you to earn or lose the money.

Digital binary options

These are. Perhaps, the most popular types of binary options, mainly due to their simplicity. They are also more commonly known as call-put or up-down options, as the investors only have to bet whether the options will fall below or rise above the active price of the option within a certain period.

This period can be as long as an entire day or as short as 10-15 minutes. Once this period is over, you will receive an email informing you about the current prices of the options you bet on.

60 – second options

climbing steps These options are, for the most part, almost identical to the digital options. The only notable difference between them is that you will bet that a certain stock price will fall or rise in value over the period of 60 seconds. As with the digital options, here, you will also win or lose depending on the accuracy of your predictions, regardless of how much money you lost or earned.

Finance Tips For Small Business Owners

Fashion a budget

A budget lays out a financial plan for moving forward. The budget acts as a guiding principle for the business. A budgeted can clearly forecast whether the projected income levels are sufficient for the business expansion plans if any. A budget also shows expenditure patterns that one could do without to reduce wastage.

Get professional help

cashMost small business owners fall prey of not having professional help where managing their finances is concerned. A professional accountant/bookkeeper will reduce your burden on financial management. Their expertise will assist in gaining insight on economic growth opportunities and also expense reduction opportunities. It may cost the business to hire an experienced professional, but in the long run, it is a benefit to the financial management of the enterprise.

Effective debt management

In the case of external financing, it is prudent for the business owner to be aware of the funding methods available so as to get the best funding method available, to reduce the risk of getting deep into debt. The cost of funding should also be a key consideration in choosing the financing option.

Avoid carrying over outstanding bills and bad debts to a new business quarter.  Making debt repayment an urgency of the business ensures you reduce your liabilities in due time.

Your financials should always be updated

Use the automated accounting software’s to record for your business dealings. Using the accounting software’s eliminates the monotony of keying in items in a computer as the traditional methods which are quite a tedious process, despite being a paramount part of a small business. With a record of your business transactions, you can always have weekly and monthly reports of your financials to check business progress.

Avoid staff expansion

Employees inflate business costs as much as they are an asset to the firm. Apart from the salary that is due to them, there are other expenses involved i.e. desk and furniture, taxes, medical cover, computer, the cost of refreshments, etc. This costs can, in the long run, exceed the salary. In place of hiring consider outsourcing the services and also having consultants and freelancers who use their resources to give you results. General cost of having an employee is more expensive than the above options.

Have different accounts for business and personal

cash in pocket New small business owners are always tempted to mix business finances and personal. They have cross-financing where they use private money for the firm and vice versa. To avoid this pitfall kindly keep accounts for the business from the onset and if personal money is injected into the enterprise, it should be treated as a financing option.

Guidelines To Penny Stock Investing

Penny stocks are highly speculative stocks valued at less than a dollar. Most of these stocks do not usually trade on the stock exchange. Many investors may buy shares cheaply and then sell them after a while making huge profits. This is possible as an investor can hold thousands of shares for a small amount of capital. There are several guidelines to penny stock investing

Tips on penny stock investing

Use limit orders

Investors may be manipulated to buy penny stocks at prices that may not be the same as the value of the said share. This is because these penny stocks trade very thinly. There is, therefore, a deviance between the bid and the asking price. Market makers can try to make some quick bucks by fooling the investors. Limit orders enable the investors to buy penny stocks at their price.

Trade during regular hours

After-hours trading can occur due to small volumes of stock. This trading is certainly not correct, as it does not effectively show a match between buyers and the sellers of stocks. Trading during after-hours can open gateways for trading stocks above or below the closing price of the stock. When dealing with penny stocks the increase or decrease of a few pennies can make or halt a trade.

Buy or sell for a reason

Investors should not buy or sell the stock just because they are moving. Investors of penny stocks should carefully analyze the stock and know the reason why they are buying the stocks. This is especially for stocks that have already increased in value. An investor must have a good reason to invest in these stocks otherwise they may end up investing in stocks that will not be profitable.

Do not go for performance

graph Many investors chase trade, and this is a big mistake that investors make as they invest in penny stocks. These investors often wait for the stock to take off to start investing in them. This is not right, as time may not be on the investor’s side when they finally decide to invest. To avoid this, investors should be able to invest in stocks at the right time and follow the proper guidelines to make productive investments.

Expects 90-day holding period

Penny stocks can be very unstable in nature. At times, they move up and down. Being unpredictable investors should expect a holding period of up to 90 days. This will give the investors time to study the trends of the stock and even sell them if they see it going down soon.

Personal Loans

Personal loans refer to unsecured loans that a person takes when in dire need of money or during hard financial times. In most cases, it usually comes as a last option when all other avenues of getting money have been exploited with no luck. Personal loans are usually processed quickly, and the cash is wired straight into the borrower’s account. However, it is important to consider a lot of things before taking up these loans.

Factors to consider before taking a personal loan

Check for hidden chargespocket with credit cards

Due to desperation and the need for money, a lot of people are never keen on reading through the contract provided by the bank before signing and taking the loan. This usually comes as a shocker later on when one realizes the mistakes he or she has made. It is always good to take your time and ensure that you have gone through all the documentations. If possible, tag someone along whose is experienced in that field to guide you.

Interest rates

Most people that go for the unsecured loans are usually desperate for cash. Financial institutions usually charge interest rates that are relatively higher, for these loans. This is because one does not have to provide personal assets as collateral. It is often termed as a gamble since the lender does not have a guarantee that their money will be paid back. Interest rates will always vary depending on the financial institutions that one goes for. It is, therefore, important to sample out and know interest rates charged by different other institutions that offer loans.

Penalty charges

money and gavel Most of these financial institutions, usually penalize loan defaulters in different ways when loans are not paid back on time. Borrowers should be able to know; what kind of penalty they may be faced with so as to find well ways to avert such problems when faced with them. When taking up these loans it is good to have contingency plans whereby, if one is not able to pay on time, you can still outsource funds from other places to avoid paying the huge penalties.

Purpose of the loan

Reason to taking up a loan is also important. Is it because of a need or greed? Institutions usually give priority when it comes to personal loans depending on the need and not greed. Genuine borrowers will always be considered first, especially those that borrow loans for hospital, education, and marriages. Financial analysts will always advise people not to take personal loans to invest in non-sure ventures such us stock exchange as risks usually involved are high.