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Category Archives: Money


How to build a solid budget in 2019

How to build a solid budget in 2019

Starting from the first day of 2019, people started to reshuffle their budget to manage 2018 holiday overspending. The process is tough but it’ll put your finances back on track normally within 4 to 5 months. But don’t you think that your entire year budget should be organized too? Yes, of course.

It is the high time to rearrange your finances in order by following some fresh ideas and build your budget for the entire 2019.

Organize your calendar, prepare a spreadsheet, and start working on your budget. Here are a few hardcore tips you should consider.

  1. Start with a clean slate approach

It’s the best method you must apply while creating your entire budget from scratch. Do not add expenses or subtract costs from your existing budget plan for 2018. The clean slate approach is a comfortable way to build a budget, giving importance to each and every expense required for you.

Don’t forget to add expense that has a profit-driven purpose, known as zero-based budgeting.

  1. Check credit score and credit report

Your credit score has an impact on the interest rates while you apply for credit cards, mortgages, and other important loans. Having a bad credit score may ruin your budget. It may also prevent you from getting further credit and gradually increase your interest rates.

In case of identity theft, you might be getting huge unpaid bills as some crook might have created new credit card accounts in your name. As a result, a huge credit card debt may ruin your credit score totally along with your finances. So, it is important to improve your credit score and check your credit report regularly for any errors or signs of fraud.

  1. Anticipate incoming expenses

If you have anticipated any big expenses coming nearby like – tuition fees, license renewals, home renovation, car payment, grocery bills, cable bill, etc, asap add that expense into your budget plan. Do not wait until you get the exact bills over your head. You may not have enough time to manage these expenses by manipulating your current budget.

Don’t forget to include positive items as well. Add your income rise or unexpected fund which may help you to manage a monthly budget easily for a couple of months.

  1. Save first and spend later

Many people follow a budget plan for handling the expenses only. They put savings on a secondary priority. They estimate expenses and save whatever is left after paying off the bills. But, the best approach is to do the opposite. You may save first and spend later.

You may save a minimum of 15% of your paycheck every month and start doing monthly expenses from the remaining 85%. This way, you’ll force yourself to maintain a budget within limited money along with saving a fixed amount every month.

  1. Review last years’ data

You should have clear data on your last years’ unfinished financial goals. Combine those unfinished goals with your current financial goals for this year. Consider adjusting your budgeting method. You need to have a proper idea on whether or not you need to reduce your costs, increase your savings, pay off your debts, or adjust other resources.

This way your old data on the previous year may help you to track and allocate this years’ budget.

Stick to your budget throughout the year, and modify your strategies if an emergency happens. You don’t need to be a financial planner to successfully manage your budget plan. Follow above given tips, do your hard work with proper discipline, your finances will shine in 2019. Best of luck.

How a good credit score can save you thousands

How a good credit score can save you thousands

Your credit score is the most important aspect of your financial life. Without a good credit score, you won’t be able to get any loan or even opt for a decent job. Sounds freaky..isn’t it? Yes, your employer may also check your credit score while appointing you for his/her company.

So, basically, having a good credit score is essential for everyone.

Many of us didn’t know having a good credit score can actually save your thousands of dollars. How? Check out the below-given benefits to get the idea:

a. Lower interest rates on credit cards

One way a good credit score can save a lot of money from your wallet is on credit card interest. A good credit score may help you to get lucrative rates on popular credit cards, which will save a good amount every month on interest if you carry a balance. It is best to pay off your entire balance every month if you want to avoid incurring credit card debts.

This strategy is very helpful to avoid costly interest fees, and also helps to improve your credit scores.

b. Pay less on your mortgage

Good credit scores can help you to save money on your mortgage costs. If you have a good credit score, your mortgage lender may offer you a lower down payment and lower interest rate. For most of the homebuyers, the savings in mortgage interest fees is one of the biggest benefits that a good credit score can give them.

c. Payless insurance premiums

Your credit scores can help you to lower your insurance premium on an auto or homeowner’s policy. In many states, insurers prefer those credit-based insurance scores that can assess the risk of filing claims on your policy. If you have a good credit score, your positive credit activities such as on-time payment may help to get a higher credit-based insurance score. So, technically it’ll lower your insurance premium rates. Negative credit activity, such as a high amount of debt, can badly affect your credit-based insurance score and your insurance premiums can be higher.

d. Good interest rates while taking out student loans

Borrowers, especially students may save as much as $19,000 over the course of their loans by refinancing their federal student loans through private student loans. Normally, if you have a good credit score, private lenders may allow you lower interest rates on student loans. Consumers or students with good income and good credit score may refinance their student loans to lower interest rates. But they must have an excellent credit score to get the best offers with student loan refinancing.

e. Other credit card benefits

The option for savings isn’t always available in form of low monthly payments. Having a good credit score may have lots of other rewards and bonuses. Having a good credit score may give you benefits such as cash back on shopping, or airline miles while traveling if you use a credit card for making the payments. With higher credit scores, you may become eligible for higher bonuses and offers. These rewards and perks may save you hundreds or even thousands of dollars when you are going on a vacation.

So, what are you waiting for? Try as best as you can to build your credit score and refrain yourself from the activities that may harm your score. Good luck.

Financial resolution for 2019 - Make your financial life better and easier

Financial resolution for 2019 – Make your financial life better and easier

In every new year, you have the chance to make financial resolutions with a challenge. The challenge is to maintain the resolutions at any cost, throughout the year. Some of us win the challenge, some don’t. But with a solid plan in place, you can easily stick to them, and you’ll be glad you did.

To ring the bell in the new year 2019, let us consider these 6 most important financial resolutions and how you can successfully maintain them.

 

  1. Prepare a proper budget and stick to it

The new year will be the best time to start a proper budget. With a solid budget, you can track your money each month and analyze how much money you need to meet your daily expenses. This may help you to fulfill all of your other financial resolutions.

You can use a spreadsheet to create a budget plan. However, you may also use Mint.com where you don’t have to log in manually and add your transaction. Mint pulls in all your financial data from your bank accounts, loans, and credit cards automatically. You can access it by using your smartphone or tablet anytime, from anywhere.

 

  1. Pay off your debts

Your total debts may include credit cards, utility bills, student loans, payday loans, car loans, medical debts, or mortgages. But most of us typically looking to pay off unsecured debts like credit card debt, utility bills, payday loans, medical debts, etc.

Getting rid of debts will be the most amazing thing in your life! A huge weight will be removed from your head once you pay them off. It’s very liberating and feels awesome when you have no debts and a mind-blowing credit score in your profile.

 

  1. Spend less money

In today’s world, technology made our life so easy that by using an smartphone app you can easily spend a lot to buy any commodity or book any service through online transactions. You can buy your clothes, shoes, and even order services like food or transportation by clicking a simple cell phone app. This is what you need to avoid on a first priority basis. If you can’t control your spending, then you won’t be able to save money, and also can’t pay off your debts.

You may use a trick to control your spending habit. If you want to buy something, don’t buy it immediately. Make a list in your smartphone and add the item you want to buy. Give yourself a 15 day window to think. If 15 days later you still need to buy the thing, buy it without fail. But if 15 days later you feel the opposite and do not want to spend money on that thing, remove the item from your list.

Overspending money is a bad habit and you must avoid it at any cost. Your should always try to develop good spending habits like buying only essential things for your home, always make a list before buying things, getting homemade meals instead of having lunch in an expensive hotel, etc.

 

  1. Start an emergency fund

As per the recent Bankrate survey, conducted this year, only 39% of Americans are able to pay an unexpected $1,000 expense by using their savings fund. Even worse, the Federal Reserve found the fact that 40% of Americans even can’t bear a $400 emergency expense.

Without having a proper emergency fund, most of the Americans are incurring debts while covering unexpected costs.

You need to take some immediate measures to stop this from happening with you. You should set up automatic transfers from your paychecks to your savings account every month. This way you can create a good emergency gradually, and you won’t be tempted to spend it rather than saving it.

Experts recommend we should save at least 6 months’ worth of expenses saved in emergency fund. So, consider slicing down your paycheck before you start spending, and list it as a new year financial resolution.

 

  1. Know and build your credit score

Do you check your credit score on a regular basis? No!! Then it is the first thing you list as a financial resolution.

Your credit score is an important financial factor which reflects your financial credibility to the lenders and creditors. By considering your credit score they’ll have an idea about how healthy your finances are. Good credit scores range from 700-749, and scores of 750 and higher are considered excellent.

You must also concentrate on building a healthy credit score. I know it’ll take time like all other good things in our life. You just have to follow some easy steps on the path to good credit, like paying your bills on time and full, use your credit as low as possible, pay off your old debts as soon as possible, etc.

 

  1. Work on your retirement savings

Saving for retirement is one of the most important financial goals that has to be taken care off seriously. For that reason, as a financial resolution you must also consider saving for retirement as soon as possible. So, you may follow these tips to build a decent retirement savings for your older days.

      a. Initiate your 401(k) plan – Invest a % of your pretax income directly into your employee-sponsored 401(k) plan. Most companies may also contribute the same amount from their end.

      b. Open or fund an individual retirement account (IRA) – If you don’t have access to an employee-sponsored plan, you may then opt for an IRA. It has similar tax benefits like a 401(k). The IRS have increased the contribution limits for IRAs and 401(k)s for the 2019 tax year, and also raised the income phaseout ranges for IRAs.

      c. Opt for a Roth IRA or Roth 401(k) – You may not get immediate tax benefit in a Roth IRA or Roth 401(k). But you may become eligible for a tax-free income in retirement.

 

I think starting 2019 with these financial resolution will be enough for now. Start working on these financial aspects, you’ll gradually find out more things that you need to take care of. Keep your cool and work wisely.

How to stop yourself from overspending in this coming winter holidays

How to stop yourself from overspending in this coming winter holidays

Winter holidays are the most amazing time of the year. It is the time when you can spend time with your family and friends, and fill your tummy with tasty holiday treats. Most importantly, holidays are the perfect time to shop for every age group!

But there’s only one problem that you may encounter. It’ll be too easy for you to spend a lot just for the sake of fun. But spending too much can make you suffer in the next few months and you might get depressed while fighting with the huge credit card debts, until your bank account can start breathing again.

Here are a few important tricks you can apply and help yourself to avoid overspending in winter holidays this year.

  1. Organize your spending

Make a list of all the persons you want to buy gifts for and what you want to gift them. It will help you to avoid the rush before Christmas. Apart from that, this way you can avoid spending too much $$$ when a neighbor from next door invites you for a party.

  1. Stop overbuying food items

Christmas is the time of indulging your taste buds! But it doesn’t mean you have to buy a lot of food in this Christmas eve. Start making a list of the foods that you want to eat and share with your loved ones. This will help you to get the headcount and it’ll be easier to make the perfect portion sizes. THis way you can reduce wastage of food and save a lot from your food budget.

  1. Opt for online shopping

You might love buying things after seeing the displays in a department store. But have you ever think of shopping online? Try online shopping websites like Amazon or ebay or any other, or search at Google the gifts you are looking for. You may also visit the brand’s website directly rather than going to a department store. Trust me, you’ll find many discounts and offers waiting for you!

  1. Book tickets in advance every time

If you want to go somewhere in this holiday, try to book your ticket 12 weeks in advance. By doing so, you may get ticket on a special discounted rate. Normally, ticket prices can increase around the festive period, so it’s wise to get them booked as soon as you have the tour plan.

  1. Use cashback credit cards

Cashback credit cards are the best means which you can use to make purchases for holidays. Normally a cash back credit card comes with minimum 5% cash back facility and you can have it in most of the cards. This way you can shop instantly and with a cheaper rate.

  1. Apply voucher codes

Like any other holidays, winter holidays are also one of the best time for endless shopping and endless spending. So, to provide a relief to your wallet, you may sign up to a couple of voucher code sites before buying gifts for Christmas or arrange a dinner. This way you can easily reduce spending on holiday shopping and buy preferable gifts at a cheap price.

Conclusion

Black friday and cyber monday are two important dates for holiday shopping. Make sure you can fully optimize these days and grab all the lucrative deal/offers.

Thanksgiving dinner - How to make it budget-friendly and save money

Thanksgiving dinner – How to make it budget-friendly and save money

Do you want to save money on Thanksgiving? You may think it’s difficult to celebrate a Thanksgiving dinner within a budget. But trust me, there are many unique tips and tricks to save money on a Thanksgiving dinner.

 

How to save money on Thanksgiving dinner like a pro

Check out some fantastic money saving tips for food for Thanksgiving dinner.

 

1. Buy seasonal fruit and veggies

It is obvious, you’ll pay a much lesser price for fruit and veggies that are available in this season.

Seasonal things are cheaper and remain fresh also than out of season produce, so you have less risk that they’ll go off before using.

 

2. Buy generic items for the dinner preparation

You might need a lot of things for your Thanksgiving dinner party. But before buying such items, make sure you focus on generic items rather than brand names. If you look closely, there is barely any difference between a generic item and the branded item. The more you analyze, you’ll find the main factor is the price. So, why do you spend $10 to $20 more for a similar quality item? The choice is easy now, isn’t it?

 

3. Plan way before the day comes

Start thinking about the Thanksgiving dinner party at least one week earlier. It can help you to save your wallet.

For example, if you buy frozen turkeys in advance, it’ll be cheaper than buying fresh ones just before the big day. Don’t worry about the taste, it’s just as good as a normal one.

If you have enough time, you can search for cheaper stuff for recipes.

You may also check out for the deals on other ingredients, particularly stuff that is available as frozen.

 

4. Try to buy in bulk

Bulk buying can be beneficial if you plan for a big party. Many stores offer lucrative discounts on bulk purchases. It may possible that you can get one or two free turkeys if you buy 5 or more in a bulk. But you must stay alert and avoid overbuying.

 

5. Prepare food what you actually require

We often become so excited about Thanksgiving that we start making 6 types of dessert, 4 types of side dishes, and the biggest turkey you find till Thanksgiving.

We become so much devoted to the ceremony that having a mountain of leftovers doesn’t bother us anymore.

You may stop this habit if you want. To save money, you can use the leftovers as office lunches for the next few weeks, But make sure you preserve them good.

The best thing would be only making what you actually need.

Make 2 or 3 dishes, and make them well. People often taste 1 or 2 desserts at a time, not more.

 

6. Only make what your guests actually like

There’s absolutely no reason why you have to serve certain dishes for it to be a “real” Thanksgiving.

For example, if half of your family hates green beans, why serve them even if it’s “traditional”? On the same point, if your family love pumpkin pie and always eat the whole thing whether or not the filling is made fresh or is from a can, then you should definitely choose the cheaper option.

By simply giving them what they like rather than feeling like you “have” to serve certain foods, your guests will definitely be satisfied with their Thanksgiving dinner.

 

7. Think about the leftovers

You’ll have leftovers, trust me! It happens.

So have a plan ahead of time, how will you manage them.

For example, you can keep your leftover turkey meat in your refrigerator. But what will you do with the carcass? Use it to make stock. Have some leftover veggies? Use them to make a delicious soup for lunch.

Keep all the leftovers and freeze them until you can use them for preparing meals.

 

8. Call for a Thanksgiving potluck dinner

There’s no doubt that one of the main expenses we bear for the Thanksgiving period is food. So another best way to limit your costs can be throwing a potluck dinner.

Just ask your guests to prepare and bring a dish of their choosing. Make sure you discuss the items so that you can avoid any repetition of dishes.

This will help to not only share the costs but also save the time and hard work for preparing the dishes!

 

Conclusion

By doing a little pre-event planning, budgeting, and smart shopping you can enjoy your Thanksgiving dinner with lots of saving.

This thanksgiving make way for charity and better finances

This thanksgiving make way for charity and better finances!

If Squanto never offered the pilgrims, coming from the other side of the world, a place to stay and food to eat, then thanksgiving day would not have taken the form as it is today….

It was a long difficult time of suffering, and a brief history of charity and love, that made the foundation of thanksgiving. If you don’t know who’s Squanto, then let me tell you, ‘he was the dude, back then’.

When the english pilgrims stepped down from the merchant ship Mayflower on Cape Cod, they were welcomed by heavy snow, draught, unfavorable conditions, and other threats from nature.

That’s exactly when Squanto appeared. A tribal man from the jungle, had feathers on his head, and spoke broken English.

He offered the dying and weathered englishmen shelter, and food.

Squanto taught them how to plant crops and how to beat the harsh weather conditions of the Atlantic.

So, now it was time for the englishmen to pay thanks and show gratitude to Squanto and his native american tribe.

It was then, that the first thanksgiving season was observed, where food, fresh harvests, and other household objects were exchanged among the people of the native tribe and the pilgrims.

Then after 2 centuries, our former president Mr. Abraham Lincoln officially declared a special day that is to be considered a holiday and should be marked as thanksgiving day.

Since then we have been celebrating thanksgiving each year, where we invite our family members and friends, and have big feasts and get-togethers.

But are all of us actually celebrating this festivity the way it’s meant to be done? Guess not. Thanksgiving itself means to show gratitude and give thanks, which many of us don’t follow.

In this blog post however, it is a question of finances.
I believe, this thanksgiving it’s time for us to offer gratitude with an act of charity so as to respect our financial independence, and say thanks to the Almighty, who makes it possible for us to earn and live!

What should you do on thanksgiving?

A little charity is what I am asking you to do. Nothing more.

As you receive your paycheck for this month, try to scrap out a little percentage (say 5% or 10% – even 1 dollar will do), and donate it to some charity foundation or association.

There are numerous charity organizations in our country that you can donate to.

Even your local church will pull out the job too. Just go ahead and do the charity. Offer your thanks for the financial happiness you are experiencing in the present time!

Trust me, your thanksgiving will be the most blessed one, and can’t get more better if you do some charity!

But that’s not all. Charity is one part. Do you know how charity influences better finances?

I recently went through a few blogs and articles on psychology and finances. They are defining charity and donations at a different level.

It’s said that when you give away a portion of your money for moral investment, it brings in happiness and influences you to have more wealth, so that you can receive more happiness like this in the future by donating more money.

Charity is an investment. Not something that will give you good returns in terms of money. But it ensures that you are sharing your wealth for worldly reasons.

Obviously you can ignore this belief, but remember that charity will surely force you to have more income, and will give you a strong reason to sustain your existence.

 

Life is short mate. You are born today, and you die tomorrow, before you even know it.

Hence do something, for which you will never leave any regret behind, when you are gone.

Have a wonderful and happy thanksgiving.

The naked truth of today's education: Debt and depression!

The Naked Truth of Today’s Education: Debt and Depression!

Imparting education and knowledge is probably the most respected objective of our human civilization. This is where we humans tend to be different from other animals.

Our scope of ‘knowledge’, ‘education’ and ‘understanding’ is probably the widest when compared to other animals, species, or objects in this world! We know how to pass down knowledge from one generation to the other, in its exact sense!

But as time progresses, we seem to be losing the real meaning of education, and we have started to take everything for granted!

Why am i saying this you might ask, when nearly every single child can afford education these days!

 

 

Education according to the most ethical definition is understanding and knowing this world! How this world functions, and what is our purpose on Earth!

 

But, dices are now rolled on some other side, and education has become a monetary base, where teachers are no more educators, and all that most of the students understand, is they need a job and a good salary to survive!

 

Wonder, how many of them know, why they are born, and why they should survive!


In this blog post we will cover two biggest impact of modern education on this society and the students in general.
These are student loan debt and depression!

 

The current student loan debt scenario:

 

Real education is definitely costly. If a student aims to teach himself about the world on his own, then it is very expensive and time taking! Here by expensive I not only mean in terms of money.
One cannot easily make life the sole tutor and sail on the sea of knowledge!


If you become a student of life, then philosophically speaking, you will be walking down a tough road!


And, i can’t explain it to you, what roads you will take up on your quest of knowledge!

 

That’s the reason why our society has put up well functioning schools and universities to give people education at an affordable cost! The first such well known school was of Plato’s in Athens, known as ‘The Academy’!

But we humans have changed the meaning over time, and currently our education system is run by monarch sophists, who only understand money!

 

The present student loan debt in USA stands at a hefty $1.53 trillion as of second quarter of 2018.

I mean seriously??

Wonderful, how we have reduced the cost of education!!

This huge amount of debt is making the parents fall financially sick! They are getting burdened due to their children’s debts!

Families are getting destroyed because of this huge indebtedness. And, guess what, student loans are probably the toughest form of debt to escape!

A mortgage, you can give back your house as a collateral. Same with an auto loan! But student loans? No way man, they have no collaterals attached!

Either you can go for loan forgiveness, or run behind consolidation companies, if you are unable to pay off your student loan debt!

Whatever, it’s time when we must believe, that schools and universities should realize the fact, that they are charging huge amounts of money in the name of education! And they must stop doing so for a better upliftment of education in the society!

 

Depression rate among students are increasing:

 

What is childhood made up of? I can’t think or rather don’t want to think of anything except happiness!

 

But by going to schools, that’s the only thing students are not getting! They are pressurized to become ants, carrying the burden of forced knowledge, to finally become intelligent morons.

 

They start to believe that grades are the only thing that matters, and degree is the only thing that they must hold onto! Nobody teaches them about how to be loyal to their parents, or that we humans are also vulnerable like any other object, or no one except the almighty (if you believe in it), can save us when death calls!

 

So ultimately they come out as lemonade corked in a wine bottle!

 

But in the middle of it all, students are getting depressed due to the modern education system! They feel like they are tempted to compete among their peer groups for grades! What if they don’t score good in exams? What if they can’t get into a world class college??

 

Their lives have become full of ‘what ifs’, and what do we have as the end result? Family chaos, students committing suicide, parents bashing kids,… and so on!

 

I have very well accepted the fact, that everything’s happening because it’s meant to happen! And, that time is God!


But ultimately, can’t we just not teach our children about life and ethics, instead of making them envious of someone else’s happiness?

 

We are humans, and it is our duty to make our kids understand what real human smells like! Even a bison can fight, and a lion can kill, but it is only human who understands consequences!

Why build wealth when in the end you will be dead

Why build wealth when in the end you will be dead?

It is the age-long truth that we all came empty-handed and we all will go empty-handed. What matters the most is what lies in between!

We are all meant to live in joy and happiness. That what makes us feel good! Makes us content!

Satisfaction, pleasure, happiness, is what we all search and thrive for! Our times are limited. It is now or never. Everything’s ‘happening’, not ‘happened’ neither ‘will happen’. So, live the present in complete harmony.

But there’s something weird in the middle of everything! People believe in possession instead of sharing!

Hence I came up with this topic that will try to explore what makes wealth so important – that we gotta fight hard to build it, while in the end we will possess nothing and say goodbye!

 

Why do we need money?

We can completely survive without money. But what will then value the hard work we do. The work that gives some productive output while utilizing the costliest of everything, ‘Time’!

We all need something in return! This world is a complete give and take! Hence to unify everything, we need money!

And everything’s worth a certain amount of money! Money has the purchasing power!

Hence money can technically buy anything that’s not an emotion and that lies under human jurisdiction!

 

We need a house to live, food to eat, water to drink, electricity to bring lights to nights, and so on!

We are all working for each other. Some plow the field, some sew clothes, someone’s supervising the turbines so that we never run out of electricity, and the list goes on and on.

So monetary wealth is important!

As you can very well see, if you are not a productive member of the society, you can never understand the worth of money.

Only those who have done something productive, have valued money!

Don’t expect to get your pair of jeans for free, the daily bread for free, or rather anything for free.

Do the hard work, walk the tough road, get paid, and buy what you want and desire!

 

So why build wealth when in the end you are dead and can’t have anything?

Because unless you have a pleasurable life, you won’t have a pleasurable death! A wise friend of mine said it’s better to die in a golden bed rather beside a sewage!

Quite true!

We want satisfaction and happiness. If we can’t claim anything on this earth as ours, then our reason to live is nil!

Hence don’t get carried away by this fact that “there’s no need for anything, as, in the end, it doesn’t really matter.”

Well, in the end probably it won’t matter, but as of now, it does matter!!

 

Your tools to build wealth?

Consider ample savings. Claim as much money as you can and make it rightfully yours. But obviously not via evil means.

Savings and investments are what you should do. If needed,  switch to a better job that pays you well and that offers growth!

Have more income to experiment with more money! Your aim should be to build wealth that can compensate your daily needs, even if the market hits high rates of inflation, and you have no source of income!

Take seriously your retirement savings and always pay attention to what inflation can do to your money!

So, build wealth to live for the present and not for the future!

Build wealth even if in the end it doesn’t really matter!

Know what is inflation and what it can do to your money

Know what is inflation and what it can do to your money!

When does an object increases in value, and when does it lose its price?! Is it easy to answer? Yes, it is!

Let’s get this clear. Anything that’s got a huge availability, or one that’s easy to found, doesn’t cost much. Anything that’s rare is costly.

Compare some random objects like Iron and Gold, Pebbles and Coals, Lions and Dogs, Chickens and Lambs, and so on.

 

Supply and availability is the very general idea that determines an object’s worth.

You can pretty well say that if pollution level keeps on rising the way it is right now, then probably after a few centuries, oxygen and water will become the costliest substances on this Earth. Pheewww!!!

That’s too much to take in, is it?

Here’s the answer; “Inflation” is not something that happens due to an external force. It’s us, the humans, who created currencies, divided lands, assigned values to objects, and hence suffer imbalances in what this world can offer! This imbalance between supply/availability, and demand/necessity is what we may call inflation.

 

As per economical terms, inflation is the rise of prices of any object, good, or commodity. Deflation, on the other hand, is just the opposite!

If by any chance next year, the farmers see a huge increase in jute cultivation, then prices of jute goodies will drop!

This is how the market works. It thrives on the availability and rarity of products!


What causes inflation?

Very difficult to say! There can be many factors. Natural calamities or disasters, civil war, lack of labors, low supply of products, a sudden increase in demand of a certain object, an abrupt increase in cash flow from reserve banks, and anything that creates a scarcity in an object’s supply or increases drastically the object’s demand!

 

Why can’t the reserve banks print more notes to fight inflation?

It’s not bad to think like that! I mean seriously, why can’t they just keep on pumping cash?

Well, there’s the problem. Most of the goods that we have, I mean those that have physical or economical existence (bonds, funds, etc.) are limited! On the other hand, the money we have will become endless!

Ultimately what happens is, you are left with extra money after purchasing a good and the money becomes useless! Or the product, you are after, increases in price, as there’s more demand since everyone’s after it because all have the cash!

That’s when inflation occurs!

But throughout the ages, as we know the poor is dominated and the rich get richer while the poor get poorer! That’s because, those who are smart enough to track inflation and those who have the money, buy extra commodities before the market hits inflation! It, in turn, increases the demand because more products are purchased and that results in an increase in the price of the product.

Now the poor can’t buy the product as they still don’t have the money. Plus the price of the product has also increased!!!

What to do then?!

Well, according to the words of Jim Morrison “We could plan a murder Or start a religion.

 

What Inflation can do to your money?

Money itself has no intrinsic value. It’s worth something because we believe so! Else it can only be used to warm ourselves on a cold winter night by burning them!

No matter who says what inflation can’t be stopped! Our needs are increasing and the only thing that’s becoming cheap is technology! Rest everything is skyrocketing!

Believe it or not, inflation is going to take over you savings sometime soon, if you can’t find ways to increase your amounts!

But one relief is there that with huge rates of inflation, all forms of savings accounts receive higher interest rates!

Still, you can’t rely completely on that as there are exceptions and anomalies!

So invest!
Yes, investment can only save you. Your money should always be working and be a part of the circulation. Hiding it underground will only get useless unless your money’s made of gold or silver or platinum!

The more it is a part of the circulation, the more is it influenced by the rise and fall of inflation!

 

Footnote: Don’t forget to consult a financial advisor and see what investment options are suitable for you! Also, savings accounts are a part of investments. Always keep one or more savings accounts open. This means bank accounts and not cash stashed under your pillow!

Save money without making any frugal plan

What you’ll think if I told you that you can save dollars without doing anything or without making any frugal plan? I guess you will be shocked or assume that I’m just kidding?

When you fall in debt, it’s hard to get rid of it. So, it’s better if you can save enough money to pay off your debts easily.

It was easy to learn about the conventional ways to save money by reading tutorials, or by following online videos, TV shows, or from Ebooks. But how about saving money without doing nothing, is there any way?

After a lot of research and discussion with my friends, I have found few ways to save dollars doing nothing or without any frugal plan. Let’s check them out guys.

  1. Quit drinking and smoking

Everybody should hate drinking and smoking. Actually it is ridiculous spending $120 on liquor or cigarettes. They actually have zero health benefits. Additionally, the cost of alcohol or cigarettes is high. There’s no meaning of converting your hard earned money into ashes.

Healthwise, both nicotine and alcohol can make you sick. Cigarettes causes lung cancer and alcohol may damage your liver.

The average cost of cigarettes are between $6 and $8. Expensive ones cost around $12.85. Recently, Mayor Bill de Blasio in New York announced that the cost of cigarettes will be increased to $13 from $10, each pack. So, if you are a chain smoker, then your total monthly expense will be sky high. Check out the price of cigarettes state-by-state and compare the prices. It’s better just quit smoking…you know.

  1. Say “No” to drugs

Never trust a person who is into drugs; even in vacations. Drugs have dragged too many people into living hell. Drugs not only affect your health and finances, but also demolished your family life. You’ll become isolated from your family, friends, even from society.

The drug is an addiction. Stay away from people who used to have recreational drugs. Selling and buying drugs is an illegal offence. So, avoid drugs at any cost.

  1. Stop pinning

We, humans are selfish, greedy and unsatisfied in every aspect. They pine for costly things which they don’t even require. People want fast cars, want to watch latest movies, want to wear the trendiest fashion, use the latest sound system, play latest video games, etc. What we fail to understand that these are only waste of money, nothing more.

If you want to save money, then stop pining for the greatest things. You can buy a good conditioned used car, a second hand music system may also give you the same experience. You can play free online video games. You can read free eBooks. You can watch latest movies later online, totally free. It’s that easy.

  1. Avoid junk foods

Don’t forget one thing, the more you eat, the more you pay. Junk foods not only make you fatter, but also drain your savings. It is tough to ignore delicious burgers, pizzas, french fries, ice cream, cookies, and hot dogs. But you must draw a line.

Start avoiding junk foods for a month. You’ll be surprised that your body and wallet, both will become healthy..

Conclusion

Drive safely and obey traffic rules. It will help you to save a good amount on auto insurance premiums. The lower your premium, the lower will be your car maintenance cost. Accidents not only can ruin your life, but it can cause fatal damage to someone else.