In times of crisis, sound financial management is not only necessary for large corporations but also for people . Five expert tips to follow and what not would have to implement. How make more effective use of credit cards.
market movements not only affect large companies and brokers. Also impact on those who have an income and seek to generate some savings for the future.
But since the onset of the crisis that engulfed financial markets, this possibility has been complicated, while there was an increased cost of money, which goes against the levels of consumption.
Although the slumping investor portfolios managed to recover, from April this year, in many cases continue to be seriously damaged by the poor performance of local and global markets over the past 18 months.
is in these difficult times, when every investor should consider what their real financial situation. It is a great temptation to think that things never get better, but if history has taught us anything it is that nothing lasts forever.
Financial Advice in times of crisis
alternatives arise when evaluating different ways. Are beginning to be signs that the worst is over. For example, some actions show interesting tours, like government bonds, while seeking refuge in the dollar is always a valid and time deposits at least help cover the dreaded inflation.
However, in light of the results of the last legislative elections, there are numerous questions about what might happen with the economy in the second half of the year. That is why, to pass this first stage without any major surprises, it would be appropriate to apply some of the strategies presented by Dave Kansas, director of Web site FiLife and associated with The Wall Street Journal.
considered crucial to stay calm and concentrate on yourself, consider five tips that should definitely go and five things you should not do:
- What to do:
1. Reduce your debt more expensive. In a context of sustained economic growth, such as experienced in our country over the past five years, is likely to have registered a significant increase in the balance of credit cards and other debts. In times when income is not attached to inflation, such excess hang over us like sword of Damocles.
The first thing you should do is try to renegotiate the onerous debt even before considering any additional form of savings. A smart strategy is to raise the partial cancellation of the debt or the length of time to relieve the permanent exit of funds.
2. Stick to a budget. The savings should be a central and exclusive in difficult times. This means sticking to a budget, accurately measure your spending and find ways to save money. You're probably eating away from home more than they realize, or does not rationalize the use of energy, for example.
Having a budget is a discipline that many have forgotten and should be rediscovered. For example, for Consumer Education Center (CEC), caution and common sense are attributes to put into practice now more than nunca.Desde that organization, considered that "these are times to buy some, what is necessary and seek the alternatives that gives the market. Avoid getting what we know we can not afford. " They also warned that "it is time to personal loans or mortgages, are tempting but in times of uncertainty we do not know future interest be charged by the bank."
The Internet has numerous sites that offer tips for planning expenses and find ways to save money. Some of them have active virtual communities where they cover a variety of personal finance. When you have to change their consumption habits can be very helpful to talk with others who are doing the same.
Having a budget is a discipline that many have forgotten and should be rediscovered. For example, for Consumer Education Center (CEC), caution and common sense are attributes to put into practice now more than nunca.Desde that organization, considered that "these are times to buy some, what is necessary and seek the alternatives that gives the market. Avoid getting what we know we can not afford. " They also warned that "it is time to personal loans or mortgages, are tempting but in times of uncertainty we do not know future interest be charged by the bank."
The Internet has numerous sites that offer tips for planning expenses and find ways to save money. Some of them have active virtual communities where they cover a variety of personal finance. When you have to change their consumption habits can be very helpful to talk with others who are doing the same.
3. Protect yourself against inflation. Although it is part of the lives of Argentines now, inflation is not an issue that worries too much, but many analysts believe will become a problem in the medium term.
Given the possibility that the permanent price rise back to center stage, should take measures to hedge against this scourge. Unfortunately, in our country there are no instruments adjusted for rising prices, which normally is the best channel to prevent the loss of purchasing power.
In this situation, traditional coverage is the parallel dollar time deposits. So far this year, the dollar rose above inflation and deposits in banks are practically in line with private estimates of "real inflation" beyond what is published by the INDEC.
Given the possibility that the permanent price rise back to center stage, should take measures to hedge against this scourge. Unfortunately, in our country there are no instruments adjusted for rising prices, which normally is the best channel to prevent the loss of purchasing power.
In this situation, traditional coverage is the parallel dollar time deposits. So far this year, the dollar rose above inflation and deposits in banks are practically in line with private estimates of "real inflation" beyond what is published by the INDEC.
4. If you operate on the stock exchange has a market strategy. For those who venture into the stock and bond markets, despite recent increase in prices, investors remain cautious about the future of the bag. While it is not advisable to throw himself fully to this activity, it is desirable to maintain a diversified among stocks, bonds and cash.
And this, especially for those for whom retirement is approaching slowly but surely, it is extremely useful to define the ideal proportion of the investment portfolio.
And this, especially for those for whom retirement is approaching slowly but surely, it is extremely useful to define the ideal proportion of the investment portfolio.
5. Preserve what you have. One of the lessons to be learned in recent years is that trying to quick gains in the stock market or mortgage your home are not the best ways to get cash. If we act wisely, the most appropriate have a strategy to keep the proceeds. In addition to diversifying assets, it is also desirable to maintain diversification in the stock market. And always keep an emergency fund in a safe place, such as time deposits or foreign currency. Experts recommend booking the equivalent of six months of income that will help in the event the person becomes unemployed.
Don'ts:
1. Do not bury your money. As things stand, can seem very attractive totally forget any kind of financial risk. In plain language, get all the cash under the mattress or safe. This could extend even to the savings in foreign currency.
Fear that the financial system into crisis again, uncertainty about the stock market and gloomy environment has prompted many investors to think that this is the smarter alternative. But in reality it is not. Excessive fear can be expensive, most in an inflationary context.
Fear that the financial system into crisis again, uncertainty about the stock market and gloomy environment has prompted many investors to think that this is the smarter alternative. But in reality it is not. Excessive fear can be expensive, most in an inflationary context.
2. Do not go behind the returns. This can be a great temptation in any market, but especially today. The bonds had a great performance in recent times, but some analysts believe may are creating a bubble that could burst at some point.
In short, it is convenient to buy in an exaggerated way that those assets have already seen a performance so outstanding. More likely is that the party is nearing completion and most of the gains have already been harvested. That could guide the investment portfolio is very pronounced in one direction, making it too exposed to profit taking of the assets that came to have a great performance.
In short, it is convenient to buy in an exaggerated way that those assets have already seen a performance so outstanding. More likely is that the party is nearing completion and most of the gains have already been harvested. That could guide the investment portfolio is very pronounced in one direction, making it too exposed to profit taking of the assets that came to have a great performance.
3. We must not abandon diversification. In times of uncertainties investors tend to generate a desire to remain under shelter and increase their cash holdings. This kind of behavior really is like going behind the performance. It is convenient to be disciplined.
Staying true to a diversified strategy and rebalance assets each year to reduce their exposure to stocks whose prices rise faster than the market average.
Staying true to a diversified strategy and rebalance assets each year to reduce their exposure to stocks whose prices rise faster than the market average.
4. No need to stop saving for retirement. In hard times, people tend to focus only on what is in front of each one of them: to defeat bills, the savings and what happens every day. But all alike will want to retire at some point, so that means that we must remain discipline to save for when that day comes.
is important to analyze the structure of savings for retirement and ensure that assets are diversified and balanced. Ignoring the savings-and-stop increasing them will cause problems when you want to stop working.
is important to analyze the structure of savings for retirement and ensure that assets are diversified and balanced. Ignoring the savings-and-stop increasing them will cause problems when you want to stop working.
5. Do not ignore common sense. Many of the recent problems are due to the lack of common sense. Emerged everywhere scammers promised excessive yields and misled many investors. For many people, certain markets such as stock and real estate to a lesser extent, were betting on who could never lose. Others spent much more than they could permitirse.Las personal finance, ultimately boil down to common sense. It is essential to eliminate high-cost debt and sticking to a budget. It is essential to save for retirement, and make sure you can afford the house in which they live.
In conclusion: we must be prudent, save and invest wisely. Return to these basics will help us all to rebuild our savings, many or few, and walking towards a better time.
Credit Cards: how to cope in difficult times
As reported by the Central Bank, the month of March were 11.8 million credit card users. This figure is significantly lower than that recorded a year ago, showing that the cycle of expansion in recent years not only came to an end but began to go the opposite way.
Parallel to this decline is manifest increase in the delay of the families, so also should be clear about the particular precautions.
In this regard, it is desirable to avoid unnecessary expenses, information on costs and interest rates, always check account statements, and timely payments to cover before choosing a plastic compare the options available. Other aspects to consider, according to the CEC, are:
1 - Compare the options. Not all cards offer the same cost either. Privileged users generally subjective issues such as brand or the issuing bank. But there are objective questions (interest rate, administrative costs). In the local market financed the cost of card can go from 19% to 65% annually depending on the plastic. Of course when you have better credit histories, better financing terms will give your bank.
2 - How and when to use a card. Always choose the one that best fits one's ability to pay and financial need.
3 - Avoid unnecessary cards. Often banks do promotions that include card issuance in a "bonus" to lure customers, such as free lifetime renewal, reclamation of certain expenses, without additional charge.
While at first instance have an additional card can provide an alternative source of funding, the weather can affect the client's payment capacity.
While at first instance have an additional card can provide an alternative source of funding, the weather can affect the client's payment capacity.
4 – Cancelar las tarjetas que no se van a usar. Quien reciba una tarjeta que no solicitó debe tener en cuenta que está prohibido el envío de tarjetas que generen algún cargo sin requerimiento previo del consumidor. De todas formas, si confirma que se quedará con un plástico, sepa que tarde o temprano deberá pagar por él.
5 – Informarse bien. A la hora de aceptar una tarjeta, es vital tener en cuenta los siguientes aspectos:
Tasas de interés.
Comisiones.
Costo financiero total.
Respaldo en caso de robo o extravío.
Seguros asociados.
Importe que se cobra habitualmente late fees.
Commission to charge for cash withdrawal at an ATM credit card.
Others.
Comisiones.
Costo financiero total.
Respaldo en caso de robo o extravío.
Seguros asociados.
Importe que se cobra habitualmente late fees.
Commission to charge for cash withdrawal at an ATM credit card.
Others.
6 - Avoid making extra expenses or purchases that may be in cash. Seem obvious, but sometimes the obvious is what is most neglected. When you start to use the card for daily use, it can accumulate a debt which can then be difficult to pay.
7 - Cover-time payments. Every time you stop in time to pay the debt, banks often charge interest for late payments and this can lead to a record in data banks.
8 - Pay more than the minimum. A payment above the minimum amount improves the balance of the account and reduce the term of the debt. This also helps to keep control of finances.
9 - Always check the account balance and keep the receipts. Should you find errors or omissions in its summary, the customer has 30 days to contact your bank and fix it.
10 - Always Report lost, stolen or misplaced. Keep in mind that insurance against theft is activated at 0.00 hours a day you made the complaint in question, so it is important that as soon as it detects the fact, terminated.
