9 Ways Businesses and the Self-Employed Can Improve Their Creditworthiness

Business Credit Card


For the self-employed, it is not always easy to get a loan. Creditworthiness not only has a decisive influence on lending but also on the amount of interest. The better the credit rating, the cheaper interest rates are granted. The banks carry out a rating for the credit check, in which they check the probability of a payment default on the basis of various factors and mathematical methods. Grades are awarded for the rating.


Aside from getting simple approval NET 30 accounts, companies and the self-employed can improve their creditworthiness with various measures in order to have better chances of lending.


1. Query your own creditworthiness

In order to improve creditworthiness, it is important to know about the current state of creditworthiness. Once a year, companies and the self-employed have the right to request a free self-disclosure from a credit agency such as Creditreform or Bürgel. The self-disclosure informs about the creditworthiness index and about any existing negative entries, but unfortunately can only be requested in writing.


A qualitative credit report is subject to a fee and contains information on solvency and possible risks. With a paid membership in a credit agency, companies and the self-employed can always be informed about their creditworthiness and receive clues to improve their creditworthiness. Bankenscore.de enables the self-employed, entrepreneurs, and craftsmen to check their creditworthiness free of charge and to correct data if necessary, for this purpose Bankenscore works together with several credit agencies.


2. Keep data up to date

In order to improve creditworthiness, it is important that the data stored with the credit agencies are always up-to-date, as this is the first point of contact for banks in lending processes. To do this, you can enter into a dialogue with the credit agencies or easily update your data online via Bankenscore. Simply upload annual financial statements, business evaluations and comparisons of planned and actual figures on the platform – Bankenscore passes this data on to information on your behalf.


If a business evaluation contains negative figures, you can provide the corresponding explanations. In the event of deviations from the planned figures, the deviations should be justified in the actual figures. Increased costs for personnel and high inventories should be justified, for example with a large order or a tight timeframe for the execution of the orders. It makes sense to give the credit agencies an insight into the order books. This can have a positive effect on the rating.


Up-to-date data helps to build a relationship of trust. Don’t underestimate this and upload your current data now.


3. Do not overdraw existing credit lines

In order to improve creditworthiness, it is important for the self-employed, craftsmen, and companies not to overdraw the credit lines granted by the bank. Together with the current account, the bank grants its customers a current account credit. This credit line should be exhausted to a maximum of 70 to 80 percent. This has a positive effect on creditworthiness and gives companies and the self-employed additional space for unforeseen expenses. Liquidity planning can help not to overdraw the credit line. It provides an overview of the available financial resources as well as of inputs and expenditures. Financial bottlenecks can be quickly identified and you have the opportunity to respond to them.


4. Revenue and earnings planning

Revenue and earnings planning is not only an important objective, but it is also helpful in lending. Banks require companies and the self-employed to have a clear concept before deciding on lending. It is important to regularly check whether the plan specifications are actually achieved. There will always be deviations between the actual figures and the planned figures. It is important that the actual figures are as close as possible to the plan specifications. The business evaluation provides an important basis for the bank when deciding on lending. The business evaluation does not always reflect the current situation. You should therefore prepare the business evaluation for the bank and make appropriate explanations of the figures.


5. Identify possible solutions to problems

Problems with customers and payment defaults can never be ruled out. There may be defects in the goods that cause customers not to accept the goods. Problems with quality management can also occur. It is of no use to you to conceal these problems from the bank. Such problems come to light at the latest in the annual financial statements. The analysts of the banks and credit agencies recognize such problems on the basis of the business figures and follow-ups. It has a beneficial effect on the creditworthiness to address such problems at the credit agencies at an early stage and submit the appropriate solutions. Together with the bank, you can work on a solution to eliminate such problems at an early stage.


ALSO READ: 5 Advantages (Plus Disadvantages) of Credit Cards


6. Short vendor term

A short vendor term has a decisive influence on the rating. You should therefore react to invoices as quickly as possible. Many self-employed people grant their customers discounts in the event of a short-term payment. These discounts should be exhausted. Not only do they offer a financial advantage because a lower invoice amount has to be paid, but they also help to improve creditworthiness. Fast payment of invoices improves the relationship with suppliers and ensures long-term supplier relationships. It can lead to better conditions at the suppliers.


7. Improvement of the equity ratio

An important criterion for assessing creditworthiness is the equity ratio. The better the equity ratio, the better the rating. Equity provides stability and is available in the long term. Should company insolvency occur, the existing equity can only be used when the creditors’ claims have been met. The equity ratio is the ratio of the company’s equity to total assets. The equity ratio can be improved by creating reserves for important investments and unforeseen expenses, as well as by refraining from profit withdrawals.


To always be liquid and improve the equity ratio, you can also sell all or part of your receivables to a factoring company. With factoring, you get money at short notice. The fees for factoring must be taken into account. Factoring can also be worthwhile for the self-employed and for start-ups to get money quickly.


The equity ratio should be at least 30 percent to ensure solid financing. If the equity ratio drops below 10 percent, it can be difficult to get a loan.


8. Carefully plan investments and pre-financing

Self-employed and medium-sized companies have to invest in order to assert themselves against the competition and to keep their finger on the pulse. If a larger order is pending, pre-financing is often required, as companies and self-employed people have to buy materials and possibly increase the staff. Reserves can help, but they are not always enough. The more reserves there are, the better the equity ratio. In the event of a short-term financial need, you should inform the bank as soon as possible and present the reasons for the financial needs. In order to react quickly to the increased financial requirements, it is important to get a loan as quickly as possible. In this way, companies do not default on the payment of invoices.


9. Checking the creditworthiness of new customers and business partners

Self-employed entrepreneurs can improve their own creditworthiness by checking the creditworthiness of their new customers and business partners. This is especially important for large orders, where companies have to make advance payments and stock up on the necessary material. In this way, companies can protect themselves so as not to get into a fraudster or an insolvent company. Especially for the self-employed and start-ups, a customer’s default can lead to great financial difficulties. Information about the creditworthiness of companies is provided by various credit agencies.



For the self-employed and companies, a good credit rating is important in order to obtain loans. The banks carry out a rating before lending and check the probability of default of the companies. With various measures, companies and the self-employed can improve their creditworthiness in the long term. This includes a constant dialogue with the credit agencies and the bank, the unsolicited presentation of business figures, the improvement of the equity ratio, the creation of reserves, and the information of the bank about increased financial needs. Should there be financial bottlenecks or sharp deviations of the actual figures from the planned figures, the bank must be informed. It is important to submit the appropriate solutions to the bank.

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Why You Should Add Insurance to Your Budget?

As a young adult, you have limited financial resources, which is why budgeting is so important. Saving money for the future and covering unexpected costs are both essential to your long-term financial health. Unfortunately, these things often take a backseat to other expenses like rent or car payments.

To make your finances work in the short-term while also considering the long-term, you’ll need to balance them with insurance. Financial advisors often suggest that everyone add insurance as part of their budget and even businesses have business partnership insurance. 

If you are reluctant to get one for your own, then the following lines might just persuade you to think otherwise.

Auto Insurance

Even if you don’t drive for a living, you may drive to school or work and visit friends occasionally. If you’re behind the wheel, you need car insurance. Auto insurance is a type of insurance that covers the damages and injuries that occur while operating a car.

If you cause an accident, the other driver may be able to get compensation for medical bills, property damage, and more. On the other hand, if you’re the one at fault, the other party may be able to collect on your car insurance to cover their expenses. Auto insurance helps protect you financially in the case of an accident.

Health Insurance

Health insurance is another type of coverage that you should add to your budget. It helps protect you from the costs of serious illnesses. Health insurance also covers other health-related expenses, like prescriptions and therapy.

Health insurance protects you from the financial burden of illness.

If you or someone in your family gets sick, you may have to pay a lot of money for treatment. Without health insurance, you may be forced to go into debt or skip important treatments. Health insurance can help avoid this by covering the costs of treatment and keeping you financially solvent.

Homeowner’s and Condo Insurance

Homeowner’s or condo insurance is an important type of insurance to add to your budget. It protects your home from damage and natural disasters, like fires and floods. 

This type of insurance is fairly inexpensive. If your home suffers damage, like a broken window or a collapsed roof, homeowner’s insurance can help cover the costs. Although homeowner’s insurance covers some damage, it may not cover all of it. You may be required to pay out of pocket to cover any remaining expenses.

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Things You Must Know About Your Finances

The most important financial lessons aren’t always about money.

You don’t have to be millionaire but at least not having to worry about your finances.

Understand what risk is and what you should take

Risk initially sounds negative because you can lose something. Because of this, you are often taught as children not to take too many risks. This also makes sense when you are small, because then you often cannot see the consequences of risks.

As adults, however, the people who take risks at least from time to time are usually richer, more successful and happier.

In many areas, the higher the risk, the more you can win and lose. That’s why it’s important to only take “smart” risks. These are the ones whose negative consequences are just manageable enough that you could live with the bad outcome.

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Cabinet Craft: Financial Planning Tips

The size of your business does not determine whether you should budget or not. Most financial experts recommend that individuals and families create a financial plan. This allows you to set financial goals, cut unnecessary expenses, and ensure that commitments are met on time. All these advantages apply to companies as well.


Some helpful tips for kitchen cabinet business financial planning

Know your real income as a small business

Financial stress and lack of capital are among the top challenges facing small business owners.

Before you can create a budget, you need to know: is that true? Does your business make money and how much? When will the income come? If you answer these questions, you already know how much money you’re working with. That’s the amount you have to pay bills, staff and yourself, plus invest in growing your wholesale kitchen cabinets business.


Understand your expenses as a small business

Once you know how much you’re taking in, make a list of all the small business expenses.

If you’re not sure what expenses to list, create a monthly expenses report for the past three to six months. Determine the average monthly expenses for each area to estimate for the future.


Link your spending planning with the sales expectation

Take your time reviewing your spending. Determine if they are necessary and important. You may be able to reduce some expenses to build financial reserves. In some cases, you may need to move expenses from one area to another. Also get an overview of how much you are dependent on loans and whether your future, expected income can cover the instalments.

wholesale kitchen cabinets

Create a business plan that you can refer to

Once you have set goals for your business, create a written business plan. The plan should include at least the following:

  • Income forecasts divided into manageable periods. Some companies break down sales for each individual day. Other SMEs plan budgets on a monthly basis. You may need to try which variant of financial planning works best for your business.
  • Spending broken down into periods that make sense for your business.
  • Expenditure planning on the expected expenses in the various areas
  • Comparative figures for the last month including expected income and expenses and actual figures.


Explain financial planning to employees and hold them accountable

Share the numbers from your business plan with your employees as appropriate. You don’t have to and shouldn’t reveal every detail. For example, the employees must not know how high your wage costs are. However, they should understand what funds are available for their particular department.

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Phoenix and its Phenomenal Success in Post Pandemic Recovery

In 2021, the City of Phoenix. Arizona achieved an important milestone by being named by The Milken Institute as one of the The Best-Performing Cities of the year. The recognition naturally elevated Phoenix’s status as a Tier 1 City, ranked 7th among the large US cities with the best performance metrics recognized as Foundations for Growth and Recovery. The latter represents a set of playbook solutions instituted by the Obama administration in achieving economic recovery during the 2008 financial crisis.

A closer look at the foundations for economic development showed that building and supporting a technology-adept culture is an important element. Apparently, a number of Phoenix technology companies are into offering an extensive range of solutions in helping organizations hurdle the various challenges that emerged as results of the COVID-19 global health crisis. Technological solutions include innovative high performance tools for managing and streamlining systems and various digital applications to use for streamlining business processes, and in capturing important data.

Aside from being home to Arizona State University, Phoenix has recently seen the relocation of telecommunications companies and numerous high-tech industries. The warmer climate during winter has made the city an attractive relocation site for the consulate offices of about 30 foreign governments. Not to forget to mention that Phoenix’s tourism destinations are greatly influenced by the city’s highly successful golfing industry.

Actually, Phoenix is way ahead of other Arizona cities. Two smaller cities in Arizona were recongized as Tier 2 cities, namely Lake Havasu and Prescott Valley; ranked 16 and 25, respectively. Tucson was able to get into the list of Tier 2 cities by landing on the the 41 spot. Other smaller Arizona cities were elevated to Tier 3 category, Yuma (No. 66) and Sierra Vista (No. 100). Flagstaff fell to Tier 4 as the city dropped to Number 169 from its previous 82nd position in 2020.

Arizona’s economy continues to recover in light of its technology-driven industries, which made embracing ecommerce and application of digital solutions much easier to accomplish. Yet Phoenix has seen the most success by far, which SEO companies believe is partly the result of the Local SEO techniques applied by businesses located in the city and nearby areas.

Why Focusing on Local SEO is Important

Local SEO searchers are usually launched by consumers who want to buy or look for services near them. Capturing the attention and patronage of local consumers is obviously a good foundation for economic development.

As part of the streamlining processes, local businesses spend money on local suppliers and providers of services including employees. Money therefore will mostly circulate within the city and state, which makes the cost of living more affordable for the employed members of the community. Moreover, the taxes paid by local businesses to the local and state governments will be used to finance economic and social programs and projects that benefit the local residents.

Local SEO are search engine optimization techniques that make the ecommerce website of a business more visible to local consumers. These are usually users conducting searches for a certain type of business professional by adding their geographical location to key phrases.

According to Google, about 30% of searches launched by smartphone users indicate specific location as part of the keyphrases used. The greater impact is that around 28% of the consumers who searched for a store or provider near them, had actually ordered online or at least visited the store on the same day.

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Investing: Risk Investments on Stocks and Bonds

Money on laptop

As one of the most popular and accessible ways to invest, stocks and bonds allow you to reap the rewards of owning a part of a company or project and even allow you the highest interest savings accounts. However, as with any investment, people should understand the risks before buying them. Here are some things to keep in mind before buying stocks or bonds:

Bonds: Risk Investment

With the purchase of a bond, the creditor acquires the right to regular interest payments and the repayment of his capital after the end of the respective term. If the company encounters payment difficulties during this term, the bond creditor, in contrast to the shareholder, is given priority.

This preferential treatment is probably the greatest advantage of bonds over shares. Apart from that, of course, bonds also entail special risks. The preferential treatment of the bond creditor over the shareholder does not necessarily protect against a total loss. In addition to this issuer risk, bondholders must also accept inflation, interest rate, price, and currency risk.

Stocks: Risk Investment

In contrast to lenders, shareholders receive voting rights due to their direct participation in the company, which can be exercised at an annual general meeting. In addition, in the event of distribution, shareholders are entitled to a part of the profit paid out. In addition, in the event of a capital increase, shareholders are entitled to a subscription right, which enables the priority purchase of new shares.

Of course, the classic risks that affect bondholders also apply to shareholders. Due to the higher susceptibility to fluctuations or higher volatility, as well as the subordinate treatment in the event of insolvency, equities nevertheless carry a much higher risk than bonds. Because while the bondholder can be relatively indifferent to the business development of the issuer as long as it is still solvent, the shareholder has a very great interest in the respective company developing well economically. Because only an excellent business model paired with a positive economic development offers the long-term chance of rising share prices.

Read also: Difference Between Investing And Gambling

Diversified Investments: A Mix of Stocks and Bonds

“The only thing that is free when it comes to investing is diversification,” says Harry M. Markowitz, probably the best-known saying. For the purpose of portfolio optimization, the US economist developed the so-called capital market theory in the 1950s, which deals with the interaction between return and risk.

With the help of this theory, Markowitz was able to show that the risk of an asset class can be minimized if the investor positions himself diversified. “What is for free according to Markowitz is not the diversification itself, but the positive effect that investors buy with it. […] By diversifying their capital, investors can reduce their risk of loss on the one hand and increase their chances of return on the other,” says Die Assessment of the DWS fund manager Henning Potstada.

However, investors should not only position themselves broadly within one asset class but also diversify their assets across different assets. “The most important thing when it comes to diversification, however, is the correct distribution of assets across different asset classes, such as equities, bonds, currencies, and commodities,” the DWS manager continues.

Accordingly, it can be worthwhile for investors if they fill their securities portfolio with both bonds and shares. However, it is not possible to give a general answer as to which exact division between these two asset classes makes sense. “There is no general rule on how an investor should structure his portfolio with stocks and [bonds]. It depends on the person in question – their investment goals, their investment horizon, their risk tolerance, and their age,” says Potstada in a report by DWS.

The classic stock-bond rule of thumb is obsolete

The classic equity-bond rule of thumb “100 minus your age”, which is used to calculate the supposedly optimal equity ratio, is well known but is no longer up-to-date. The formula states that by the time a person turns 30, they should invest 70 percent of their investment capital in stocks and 30 percent in bonds.

However, with a current life expectancy in Switzerland of 81.4 years for men and 85.3 years for women, a 30-year-old person still has at least 51 or 55 years ahead of them, which makes a 30% bond share seem unnecessary. Because of the greater risk that an investor takes on over time with shares, he also receives a so-called share premium, which brings with it a significant difference in return. In addition, it is statistically verified that the world’s major stock indices, such as the S&P 500, have never made a loss within an investment period of around 10 years.

The yield differential between stocks and bonds

Investors who put $1 in long-term US Treasuries between 1925 and 2005 made a total of about $71 after 80 years, which equates to an annual nominal return of 5.5 percent. However, investors who put their US dollars into an S&P 500 ETF during this period would have been worth US$2,658 with an annual nominal return of 10.4%. Of course, there were no ETFs in 1925, but the enormous difference in returns shows what long-term opportunities the stock market offers compared to the bond market.

Due to this fact, investors should not shy away from a high share quota. In addition, the current phase of low-interest rates means that bonds with a good credit rating, even without taking the inflation rate into account, represent a predictable loss for creditors.

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E-business and E-commerce – What Makes These Business Models Different

The early beginnings of e-business was in 1989, of which the most significant ecommerce website that rolled out is the Amazon online store built by Jeff Bezos in 1990. Ecommerce back then was actually only a part of the larger Internet-based commerce known as ebusiness.

Until later years, smartphone users got into the habit of buying various items online, from clothes, shoes, food, tickets, music and games, to registering for online services and investing in different financial instruments. E-commerce had actually taken roots during the years prior to the COVID-19 outbreak — but it took a pandemic for it to become the norm.

Whereas before, people still preferred to go to physical retail stores simply because shopping per se is a form of recreation. In addition, trying on or testing a product before buying it was the best way to make a purchase. However as the turn of events has it, online store websites became the mainstream representations of ecommerce.

Ecommerce therefore basically references the ecommerce websites serving as online retail spaces in the Internet where selling and buying activities between sellers and consumers take place. A website is an ecommerce store only if there is an established system and methods of payment and shipment of goods.

The e-business aspect, on the other hand, embraces the entire concept of running and maintaining an online platform on which to build, market and manage ecommerce websites and related physical spaces serving as stores, offices, warehouses and shipping points.

While an ecommerce website is wholly dependent on online sales, an ebusiness has different types of ecommerce websites and nature of online transactions as sources of revenues, including from brick and mortar customers who use cashless payment methods.

Most Popular Types of E-commerce Websites

Today, ecommerce is not just about online shoppers and retail store owners or resellers. Ecommerce websites can be categorized based on the type of organization/s or individuals involved and the interchangeable roles they play when transacting their buying and selling business online. Although there are as many as 11 types, the most popular are widely known in the ecommerce world via their acronyms: B2C, B2B, C2C and C2B. That being the case, the ecommerce development company in charge of developing a type of ecommerce website will have to take into account aspects that are relevant to their respective ecommerce roles

B2C or Business-to-Consumer

This is most well known to the average consumer as the sale of goods between sites are exchanges of goods or services between a supplier, distributor or wholesaler who does business with an entrepreneur looking to sell online on a retail basis.

B2B or Business-to-Business:

A B2B platform distinguishes the transaction that transpires as those entered by a manufacturer with suppliers, the logistics and supply chain sector and companies that handle local and global wholesale distribution of products.

C2C or Consumer-to-Consumer

A C2C is an ecommerce website that makes it possible for consumers to exchange or sell used or home-crafted valuable goods to interested consumers. Ebay and Etsy are classic examples of C2C ecommerce websites,

C2B or Consumer-to-Business

A C2B site involves individuals who usually offer services or intellectual property to businesses. Independent app developers, website developers, freelance SEO experts or creators of promotional materials like social media influencers paid by companies to boost the marketing promotions of their brand.

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What Does Finance In Companies Include?

Finance and accounting include all areas of the company that are related to finance. You can document, monitor and control all incoming and outgoing cash and service flows here. This creates the basis for conclusive accounting.

Sections of finance and accounting


On the one hand, finance and accounting serve to map operational value streams and be able to present them to outsiders, such as banks, the tax office, etc. On the other hand, it provides all the business data that the company needs for planning, management and ongoing monitoring.


External accounting discloses the company’s financial situation to the outside world. Its aim is to inform the addressees and to be accountable to them.


In contrast, internal accounting is not bound by legal requirements but serves to plan, control and coordinate business processes. Controlling therefore goes hand in hand with finance and accounting.

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Difference Between Investing And Gambling

Investing is using capital to make a profit. For example, investing in real estate means buying a property and intending to resell it at a higher price. But be careful because you can also lose money investing, and you might encounter a housing market crash.
Unlike investing, gambling is a game of chance, which usually involves betting on outcomes that can be randomly determined. You will never know when you will win or lose. Gambling can also be risky as there is no guarantee that you will come out with more money than you put in!

Investing and gambling are two very different concepts. One is a calculated risk; the other is more like hope.


-Taking a calculated risk with an expectation of profit, with the primary goal of making money.
-You have a good understanding of what you’re investing in.
-The outcome has a predictable range of possibilities, and the investor understands the possible outcomes and their probability.
-You know exactly how much you will lose or gain if you make that investment, or at least as close as possible (assuming perfect market conditions).


-A game of chance where someone risks their money to win more.
-The outcome can be unpredictable, and there is no way to know if they will make any

Investing is a smarter way of making money. You will not get rich quickly, but you have more chances of making big money. Gambling tends to be riskier and has higher payouts, but you are more likely to lose your initial investment.
Investing involves taking a risk for potential future financial gain. When an individual invests some amount in an asset, they expect that asset’s market value to rise in the future and generate profit for them as compared to what they invested in it. On the other hand, gambling involves risking something with the hope of achieving high rewards that are mathematically improbable, have a low probability of success, or is highly uncertain.

Investing is typically not a short-term effort. It is a long-term investment and requires the potential for a future payoff to make it worth the effort. On the other hand, gambling can be done in mere minutes, and it’s more about luck than anything else.
An investor’s goal is to get their money back with some profit from their investment, while gamblers are looking to win money.

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Some Tips For Your Own Financial Plan

A good financial plan is not only equipped with numbers, but also with the appropriate explanations. You must ensure that the financial plan appears plausible to your counterpart. For this, you can use references in your financial plan or refer to research. This makes your plan more transparent and possibly more conclusive.


Advice on preparing a financial plan

If you don’t know how to deal with your company figures, you can get extensive advice and help as part of a coaching session. A coach can help to find suitable financing and provide support with the creation of a business plan. Sometimes it even makes a lot of sense to get help from this direction.

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Debit Cards : Conditions that Could Limit Its Use for Cashless Transactions

Nowadays people can go cashless to make a purchase or pay for services without using credit cards, as there are now debit cards and mobile payment solutions. Anyone who has a savings or checking account knows what a debit card is, as it is also used as an automated teller machine (ATM) card. Although payment transactions are directly deducted from the deposit balance of a card holder, there could be instances when the Point-of-Sale (POS) machine of a commercial establishment declines processing of debit card payment for some reason or another.

Possible Reasons a Debit Card is Declined as Payment Instrument

There are some conditions with which debit cards work, when presented as a payment instrument; or when using the card to withdraw money from automated teller machines. Be in the know that if a debit card is to be used for the first time, it must first be activated by the bank in which the deposit is maintained.

Sufficiency of Account Balance – The first condition of course is the sufficiency of the deposit balance, because as a rule, overdrafts or negative balances in any deposit account is not allowed.

Network Connections and Accreditations – ATMs will process only bank cards linked to the network of the banking system to which the issuing bank is connected. Similarly, debit cards are acceptable as payment only in commercial establishments that have accreditation with a payment network system like Visa or Mastercard, or both. It is therefore important to first check the accreditation of the store or establishment.


Daily Withdrawal and Purchase Limits – Banks usually impose a daily purchase limit, similar to the daily withdrawal limit observed when withdrawing cash via ATMs. Take note that the limit is based on the daily total, regardless of the variety and number of stores from which purchases were made during the day. Once the limit has been reached, the card holder will have to pay cash or use a mobile payment app in paying for any other purchases he or she needs to make for that day.

Frozen Account Due to Notice of Garnishment – There are cases when a card holder is not aware that his deposit account has been fully or partially frozen in connection with a notice of garnishment received by the bank. A writ of garnishment is a court order issued by a judge, in favor of a creditor seeking payment of a debt owed by a bank depositor named in the notice.

Expired or Physically Defective Debit Card – The debit card may have already expired or the card itself has some physical defect that makes reading of necessary information impossible for the POS machine.

In knowing some of the most common reasons why commercial establishments decline a debit card as mode of payment, the next logical step is to know how to fix a declined debit card in order to complete a payment transaction. Apparently, reasons like a garnishment or an expired/defective card necessitates coordinating with an authorized representative of the bank.

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5 Advantages (Plus Disadvantages) of Credit Cards

Customer inserting her credit card in POS


More than 50% of people nowadays have a credit card. Nevertheless, debit cards and cash continue to gain popularity over credit cards. In 2015, 50% of purchases were settled with a debit card, 49.5% were paid in cash and only 0.5% were paid with a credit card. If you compare the advantages of a credit card with those of a debit card, the credit card wins brilliantly and it seems incomprehensible that we do not all pay massively with this piece of plastic. With a good credit card promotion and positive credit card reviews, you even get it completely free for the first year!


1. Purchases are automatically insured for 180 days to a year

If you pay in a physical store or a webshop with your debit card, the products are not insured. If you drop your brand new camera, you pay for the costs yourself. However, if you have made the payment with a credit card, you can claim automatic insurance. This insurance also applies to business purchases made with your business credit card. Are you a student? Even then it is possible to enjoy all credit card benefits. There are special credit cards for students.

2. Delivery guarantee

If you order something in a webshop, you automatically have a delivery guarantee. If your order is not delivered or you receive a counterfeit product, for example, the credit card company reverses the payment and you, therefore, pay nothing.

This also applies to a holiday that you have paid for with your credit card. If the travel organization goes bankrupt, you can claim a refund.

3. Worldwide ease of payment

Abroad you can not pay everywhere with your debit card, while with your credit card you can even go to the most remote island. Not only can you pay for your drinks with it, but you always have ‘money’ in your pocket in the event of calamities. Are you going on holiday soon and don’t have a credit card yet? You can always apply for a credit card urgently. Your new card will be shipped within 24, so you can enjoy all the benefits of a credit card during your holiday.

4. Credit card can serve as a deposit

If you book a hotel room or rent a car, you are obliged to pay a deposit. With a credit card, you do not have to put this amount on the table in cash. The rental company or the hotel will reserve an amount on your credit card that serves as a deposit. When returning the car or checking out at the hotel, this reservation of the deposit will be canceled. When renting a car, keep in mind that the limit on your credit card is high enough. If you have also paid for your flight tickets with your card that month, part of your limit has already been used. In that case, there may no longer be enough space for the rental company to reserve the entire deposit.

5. Credit option

If you have to make a large purchase and you do not have enough money in your account at that time, you can pay with your card and refund the purchase in installments. If you own a credit card for such a one-time large purchase, you do not have to take out a loan from your bank. Keep in mind that the interest you pay is high. Incidentally, you will only pay interest when the usual payment term has expired and you have chosen to pay in installments.

This credit option does not apply to prepaid credit cards.


ALSO READ: 3 Tips for Managing Online Casino Finances



1. Annual own contribution

The convenience of a credit card comes with a price tag in the form of an annual contribution. Before you purchase a credit card, it is important to first check with your bank whether there may be a free credit card in your package. If not, compare all credit cards to make the right choice. This way you avoid an unnecessarily high annual contribution.

2. Susceptible to fraud

If you have lost your credit card, it is a piece of cake for the finder to make online purchases with it or to pay with it at restaurants, shops, etc. As long as no PIN is requested, the finder can go about his business without any problems. The credit card companies are available 24 hours a day to report the loss of your card. Once the credit card is blocked, no payment is possible.

The credit card company keeps an eye on your card, as soon as they suspect fraud, they take measures.

3. High interest on the outstanding balance

These interest costs amount to a maximum of 12% above the statutory interest rate and can therefore rise to 15% with a regular interest rate of 3%. This is high knowing that a regular interest rate for personal loans and revolving credits is between 8% and 11%.

4. High cash withdrawal fees

Do not use your credit card as a replacement for your debit card, withdrawing cash with your card is expensive. Per withdrawal, you pay up to € 10 in transaction costs. If you do this several times a month, you will lose a few hundred euros per year. If your balance is insufficient to withdraw money with your regular card, the temptation is probably great to use your credit card. Be careful with this! Once becomes twice and before you know it it’s a habit.

5. Debt accumulation

If you have multiple credit cards with the possibility to repay in installments, you can buy items with any card up to your limit. You may not be able to pay them all at the end of the month with the great danger that you will build up debts. Sooner or later you have to pay off those debts and with an interest rate that can reach up to 15%, that is a heavy burden.


So there are also quite a few disadvantages to a credit card. If you want to benefit from all the advantages of a credit card but do not feel like the disadvantages, choose to buy a prepaid credit card. With a prepaid card, you benefit from the free insurance, delivery guarantee, and worldwide ease of payment and you can also use it as a deposit. However, because you have to deposit the money yourself in advance, you do not have to be afraid that you will make debts and you keep full control over your money affairs.

The prepaid credit card is also suitable for people who do not qualify for a regular credit card because of their income. For example, students can also enjoy all the benefits of a credit card.


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What Are The Advantages Of Financing

If you want to develop your business further then you need financial resources.


Benefits of debt financing

Those who want to finance planned expenses and investments through borrowed capital benefit from a high degree of self-determination. The reason for this is that lenders have no say in the use of the funds.

In this context, they will not entitle the donors to a share of any profits arising from this capital.

In addition, you must pay the interest on the borrowed capital. You can book this as an expense which ultimately reduces the company’s tax burden.

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Bitcoin and Co As The Payment System Of Tomorrow

Opinions differ when it comes to the future and potential of the cryptocurrency Bitcoin. The full Bitcoin Immediate platform review features the advantages and potentials of Bitcoin. For some, it is the payment system of the future, as it offers the possibility of direct transactions independent of banks. Others, however, are more skeptical. They doubt that Bitcoin and Co are stable and scalable enough to seriously compete with the established financial system.

How scalable is the Bitcoin system?

So far, Bitcoin has mainly had advantages where money is to be transferred across national borders. Because in the classic banking system, at least three to four banks are involved in such a foreign transfer and the whole thing takes several days. The same transaction using Bitcoins, on the other hand, takes only minutes and takes place without intermediaries. However, all those who are pursuing criminal intentions are also taking advantage of this at the moment.

But the Bitcoin system and its blockchain are still rather manageable – and in terms of the volume of their transactions not even remotely comparable to that of a banking system. If more financial transactions are to be processed via the Bitcoin system in the future, the speed of transactions must increase above all. Because so far, the around 100,000 computer nodes of the Bitcoin miners need around ten minutes for a transaction block.

“Therefore, the volume and speed of international payment transactions could not be mapped using bitcoins,” says Salomon Fiedler from the Kiel Institute for the World Economy. However, Bitcoin miners see it differently. They do see opportunities to increase the speed and volume of transactions – for example, by processing more transactions per block.

Read also: Financial Opportunities In The World of Cryptocurrency

Are cryptocurrencies stable enough?

Another factor is the stability of Bitcoin and Co. “So far, strong fluctuations in the purchasing power of cryptocurrencies have made it difficult to use them as an exchange medium for larger parts of the population,” say Fiedler and his colleagues from the Kiel Institute for the World Economy. “Because buyers and sellers need to be able to predict, at least in the short term, whether today’s tomorrow’s trade will still be profitable or not.”

However, she and other experts see the strong fluctuations in the value of Bitcoin more as “teething troubles” of the system. “Once the crypto gold rush ends, with people using cryptocurrency primarily as an object of speculation, then the volatility will likely subside,” said Fiedler and his colleagues. In her estimation, Bitcoin and Co could then gain in importance for payment transactions – especially if enough people are dissatisfied with the established banking system.

The question of energy

By then at the latest, however, the energy problem is likely to get even worse. It is still unclear how much the electricity demand for Bitcoin and Co will increase if the number of users and transactions increases. Because the mining computers are also becoming more and more powerful and energy-efficient. On the other hand, the algorithms of the system ensure that the mining of bitcoins and thus the creation of new blocks remains complex despite technological advances.

The path to “green” bitcoins is at least one way to make the cryptocurrency less harmful to the climate and thus more sustainable. But if the system continues to grow, the remaining reserves of excess electricity from renewable sources could also shrink. The Bitcoin miners would then again compete more strongly with other infrastructures on the electricity market.

At this point at the latest, cryptocurrencies also require social decisions: “As a society, we have to ask ourselves what an international financial system is worth to us and how many resources we want to allocate to it,” says Mathis Schultz from Northern Bitcoin.

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Financial Expert In Digital Business

The role of financial experts in companies is becoming more important. On the one hand, they continue to take on checking and controlling tasks. As analysts, consultants and big data experts, they are increasingly taking on the role of strategists. They are assessing the opportunities and risks of new business models for companies.

Role of chief financial officer

The chief financial officer (CFO) of a large company always has two sides in mind. On the one hand, he looks at the internal financial structures.


However, top financial managers also look at the external factors that influence the world of finance. And that look is worrying today. Nevertheless, despite political turbulence and an unstable global economic situation, the mood among chief financial officers is still cautiously optimistic.

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Lawyer: Financing The Cost of Your Study

The cost of studying, the study period, and the sacrifice of personal life are just a few things that a budding Los Angles dog bite attorney should pay attention to.


Budding Los Angles dog bite attorney: Are you ready to invest financially in studies?

You have to keep in mind that the fee for law studies, but also the costs for further studies are quite high. However, it is not certain that after you become a lawyer you will be well off socially and economically. Surely, however, there are many lawyers who have a comfortable life and earn quite well.

Los Angles dog bite attorney

Los Angles dog bite attorney: Are you ready to dedicate several years to further your studies?

In addition to the fact that law studies last several years, you have to keep in mind that these studies are quite complex. These involve exchanges of experience and the development of law magazines. It also involves other activities that make law students busy.


How do you cope with the stress of a stressful environment?

During the period of law studies, students need to accomplish numerous tests. Often, your level is determined by a test taken at the end of a course. In fact, success is, in part, a student’s ability to pass a test with flying colors.


Los Angles dog bite attorney: Do you have emotions when you speak in public?

To be a successful lawyer, you need to feel comfortable presenting information to the public. This is especially in front of a large group of people, which includes clients, potential clients, jurors, judges, advocates, witnesses, or colleagues. In a trial, the lawyer must feel comfortable when presenting his plea to the judge in the courtroom.

Los Angles dog bite attorney: Do you have analytical thinking?

Logical reasoning and critical thinking skills are essential for the practice of law. You need analytical skills in any area of ​​law, whether you are analyzing a complex case or developing a strategy for judging a case. If you like logic games, critical thinking and research, you might also like practising law.


Are you ready to develop your customers but also a new business?

Many law firms are responsible for the development of their clients.  You base compensation, bonuses, lotteries and partnership opportunities on the lawyer’s ability to invest and attract business to his or her law firm. In today’s competitive industry, the best way to protect your future is to develop your business experience.

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Car Financing: Auto Loan Calculator

Did you know that for some people, the car is just a means to an end? For others, it is the fulfilment of a long-cherished dream. However, only a few people can finance a car with their savings, i.e. without credit. Fortunately, there are many ways to get auto finance that fits your individual situation. You can use Auto loan calculator with trade in and fulfil your dream car.


Auto loan calculator with trade in: How do I pay for a new car?

Auto loan calculator with trade in

If you want to buy a car, it can be a new car or a used car. In addition, a distinction is made between private purchases and purchases from dealers. In both cases, cash purchase is a popular option. You pay the entire amount directly in cash or by transfer. Often you even get a cash discount. At best, you have saved enough money so that you don’t have to take out a loan. However, since a car usually costs a four to the five-digit amount, this is not always possible.


You then have the option to take out a loan in order to be able to pay off the seller. You often have the option of financing the car at the dealer, which is also a form of a loan. If you cannot pay cash for a new or used vehicle, you can apply for a car loan in different variants.


Auto loan calculator with trade in: What can you get a car loan for?

As the name suggests, a car loan is always earmarked. You can only use the money from a lender such as a bank or a dealer to buy a new car. Similar purchases such as a mobile home, a used car or a motorcycle are also possible in many cases. To be on the safe side, you should clarify the possible purposes again before borrowing.

Auto loan calculator with trade in: When and for whom the car loan makes sense

In principle, the car loan is always beneficial if you need an automobile but do not have enough savings to buy it in full. The financing can help you to financially manage the purchase anyway. You have the vehicle directly at your disposal, but you can pay it off in monthly instalments.

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Financial Literacy Is Life Literacy

Handling money wisely is an essential everyday and life skill in economized societies. But is it seen by parents and educational institutions as a real cultural technique that needs to be mastered and taught?

A rethink is only just beginning

Although you live in an economized society, they teach the sustainable use of money and resources to children and young people.  However, they don’t do it in a targeted and committed manner.

In times of an increasingly self-optimizing existence, awareness of financial and business ethics is becoming the order of the day.

Young people need solid economic knowledge. This will enlighten and prepare them. On the one hand, it will help you find your way safely in the heavily monetized present. On the other hand, you get an overview. Also, you understand complex financial services and financial products.

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3 Tips for Managing Online Casino Finances

Money on laptop


Online casinos have become one of the fastest-growing kinds of recreation and entertainment. Even casual gamers are embracing online casinos because they will play games at no cost or for money. If you choose to enjoy the complete casino experience and bet money, there are some monetary aspects you wish to give some thought to.

Not least, you may have to confirm you’ve got a budgetary plan for using a web casino. Financial considerations are vital whether you’re sports betting, playing slots (or 온라인슬롯 in Hangul), or table games. Because online casinos are inherently fast-paced – especially compared to land-based casinos – keeping track of cash is even more important.

Below we are going to suggest a number of the highest tips for budgeting when playing a web casino. The concept is for your money to last as long as possible, for you to possess fun, and not feel financially insecure.

Set a Budget

Before you begin having fun on an internet casino, you may have to make a transparent financial statement. Your goal should be to form a budget that may not leave you financially burdened. You’ll be able to try this by ensuring you merely spend income on a web casino. In other words, don’t spend what you can’t. The foremost important thing is to stay within your budget once it’s been created. So, if you spend all of your take-ups into account the day, walk-off and are available back the following day.

Don’t be a Sore Loser

If you don’t like losing, online casinos don’t seem to be for you. It’s an easy fact of a lifetime of the casino realm that sometimes you may lose. In fact, on some days you will hit a nasty run of consecutive losses. Again, it’s important you don’t spend over your set budget when losing. Knowing when to prevent playing is one of the keys to success and making your money go further.

Even if you’ve got not spent your budget and are on a losing run, walking away for the day could also be a decent choice. Sure, you may win big on the subsequent game but sometimes it’s just better to chop your losses at the correct time.


ALSO READ: Always Keep An Outline Of Your Finances


Use Profits to Your Advantage

While losses happen, wins also are frequent, and sometimes you’ll end up in profit. Managing your profits is a wonderful thanks to getting the foremost from the web casino experience. Again, this might mean walking away at the correct time when your money is within the green. Knowing the way to use your profits can facilitate your play for extended and have more fun.

There is a system that enables this to happen. It’s worth noting this is often not a betting system (which never works whether or not they’re fun) but instead allows you to finance your profits into gaming. So, once you win, split the profits into two 50% shares. Bank 1/2 your winnings as money you won’t touch on the casino… it’s yours.

With the opposite 50% of the profit, re-invest it into the sport. If you win again you’ll be able to repeat the strategy and bank more profits while continuing to play. If you would like, you may bank quite 50% profit, but you ought to avoid reinvesting over 50% of your winnings.

You are Now Able to Enjoy

It is always worth remembering that your preferred goal when visiting an internet casino should be to own fun. You’ll develop some wins along the way otherwise you may find yourself losing but if you continue a budget that’s within your financial means, then you’ll be able to get the foremost from the casino experience.


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Realistic Price Estimation For Successful Home Sales

Assessing the value of your own property is often difficult. Of course, you want to get the best possible price when selling your home. However, you should keep in mind that a purchase price that is too high could put off potential buyers. Experience has shown that there is nothing worse than gradually lowering the price. Because the prospective buyers observe the market very closely and over a longer period of time. The popular saying ” forge the iron while it’s hot ” hits the bull’s eye. The longer a sale goes on with more and more price adjustments, the greater the risk that the property will eventually be “burned” on the market, and not at all there is more demand.

Avoid excessive prices & determine realistic market value!

On the other hand, you don’t want to give your property away, of course. So how do you estimate the realistic price?

Compare Property Prices

There are different ways here. If you want to sell your house fast, you can, for example, compare your property in advance with properties offered online and observe the market situation via the major real estate portals. It should urgently be taken into account that there are also a number of inflated offers to be found there. These can include considerable room for maneuver. Sometimes the properties on offer are not sold at all or not at the offer price in the end.

Check out Market Reports

Another possibility for rough pricing is property market reports, which are available from the local expert committee. These market reports are based on statistical evaluations of concluded sales contracts, which are carried out by the expert committee. In this way, you can find out about the development of the real estate market in the region in comparison with previous years. However, forecasts for further development are not part of the property market reports. Also, online portals, banks, and real estate agents offer market reports. But you have to keep in mind that every property is different and only market reports and comparisons with other properties on offer can provide rough clues. In this respect, another option for a realistic price assessment appears particularly advisable, namely an appraisal or a valuation for your property.

Work with a Real Estate Broker

Many real estate brokers offer for your customer’s valuations. These are often even free of charge. In order to get a solid estimate of the currently achievable purchase price, you should pay attention to the experience and market knowledge of the company. If you want to work with a broker, the market value of your property will be determined after an initial on-site appointment on the basis of empirical values ​​and current market data. The value of the property is determined on the basis of various criteria.

For example, the location, the size and distribution of the property, the size of the property (standard land values), the standard of equipment, and the state of maintenance determine the price of the property. In the case of rented single and multi-family houses and apartments, the income, the type of contracts concluded, the division of the community of owners, and the like also play a role. an important role. Overall, this usually gives a very realistic picture of the currently best possible real estate purchase price on the open market.

Assessment by an Appraiser

However, there are also cases in which a market value assessment by an appraiser is advisable. This is the case, for example, when the value of the property is required due to legal disputes in divorce or inheritance matters. In Europe, the real value, income value, or comparative value method is used to determine the market value.

The market value indicates the most likely to be achieved price if the object would be sold on the valuation date in the ordinary course of business, according to § 194 Building Code. This means that all contracting parties act prudently without pressure and time pressure, have the necessary expertise and that seller and buyer are not in a personal relationship with each other (no “friendship price”). However, apart from this definition, the real real estate market usually does not have such ideal conditions, so that the actual proceeds from the real estate sale can deviate from the market value.


In summary, you should, at best with the support of an expert, be clear about your ideas on the one hand and the realistically achievable sales price on the other. This should be the best possible price, but not an inflated price. Also, consider any existing defects and necessary maintenance measures for the property. Plan some leeway for possible negotiations and consider the financial possibilities of your target group of buyers.

If you have previously financed your property and the financing has not yet been redeemed, you must also take the ongoing financing into account. The purchase price or your financial means must be sufficient to replace your previous financing. In addition, other fees may apply, such as an early repayment fee charged by the bank or the speculation tax when selling a property that is not owner-occupied within 10 years. This would lead too far at this point. As you can already see, determining the best selling price is one of the key points (and sticking points) of preparation.

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Always Keep An Outline Of Your Finances

The future is exceptionally unpredictable. There are always things that you can’t plan for even how hard you try. However, what you can do is prepare as best you can.

Financial management makes sense

It is very significant to always have an outline of your own finances. This will provide you a solid knowledge of your liabilities, liquidity, and income. Moreover, it supports your current needs, reduces financial stress, and builds a security net for your retirement.

Where does financial planning begin?

The first stage in financial planning is to know where you are now. You need to keep track of all of your expenses, income, and the current amount of money in your accounts.

To get an outline of your finances, you can do this manually on a piece of paper, a household book, or in Excel.

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Millennials Possessed By Money

Millennials (born after 1986) grew up during the financial crisis. 88% of American millennials, according to Forbes research, value happiness over material possessions and money. Millennials spend a lot of money and time on travel. This sometimes seems to be related to the uncertain economic future in which millennials grew up. However, what this research also shows is that this group is relatively concerned about money. More than 43% say they don’t have enough money to afford proper health care should they become ill, and a whopping 46% are highly indebted as a result of education. Fortunately, the health care system and the student loan system in the Netherlands are now much better organized than in the United States, but are millennials here also so paradoxical when it comes to money? So on the one hand indicate that you do not consider the value of money and possessions to be a determining factor in life, but on the other hand, do you have a lot of worries about money?. By the way, you can visit this sites.

Are Millennial Participation Plans Affordable?

And does thinking about money, experiences and possessions influence the way millennials participate in the company? Can Millennials Pay for Participation Plans? And if they can, do they want to spend their thirteenth month on stocks? Or would they rather save that for a big trip? Research from ProShare, the UK equivalent of SNPI, shows that millennials do indeed indicate that “affordability” is a problem with participation plans and the biggest reason for not participating. Interestingly, ProShare’s research shows that for the two generations above the millennials, the pragmatic and the lost generation, the affordability of participation plans is a much bigger problem. As many as 58% of the lost generation participants indicate that the affordability of the plans is an issue.


How do we see that reflected in our research, how do the generations value the balance between money, work, and experience? No surprise is the large differences in the first question in the survey, which is about the property and then specific homeownership. Only 32% of millennials own homes versus nearly 90% of other respondents. However, the desire to buy a house in the future among millennials is great, 93% of the millennials without a house still want to buy a house in the future. Millennials are even slightly more materialistic than the other respondents. With the statement “possessions are not important in my life”, 74% of millennials disagree compared to 61% of other generations. Millennials consider experiences more important than possessions (74%), but the pragmatic generation (78%) find this slightly more important than the other generations (71%). Major differences lie in the appreciation of work. Only 9.3% of millennials say work is the most important thing in their life compared to 20.5% of other age groups. This difference is mainly due to the fact that 60% of baby boomers indicate that work is the most important thing in their lives. The differences are minimal, but millennials value the level of income from work slightly more than other age groups. However, in this study too, the pragmatic generation attaches the most value to income from work. Millennials are the most indifferent of all age groups about bonuses: only 39% consider being rewarded through bonuses or profit-sharing important compared to an average of 59% over the other generations. This 59% is fairly evenly distributed over the other generations. Millennials find leisure slightly less important than salary compared to the other age groups in the study: 60% would rather have more free time than more salary, compared to 63% of the other age groups.

Millennial myths debunked!

“Millennials don’t care about possessions, they care about experiences” is a common assumption. However, we do not see this in our research. Millennials indicate that possessions are important. But it also seems that millennials can’t – or don’t want to – choose. After all, they also indicate that experiences are important. We also see in other studies that the idealism of millennials is overestimated. Millennials, for example, are the most important group in the housing market in the Netherlands. All generations indicate that they consider experiences more important than possessions, the differences are too small to speculate further. What is striking is that millennials and the generation above, the pragmatic generation, also seek experiences in their work. They want to learn and make friends at work. For the baby boomers, it seems that they have already found that, they give work an important place in their lives.

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Finance Experts Urge Investors to Diversify Amidst Economic Volatility

Although the US Federal Reserve has taken steps that helped prevent adverse developments in the securities markets, finance experts urge investors to diversify. It’s important to keep in mind that the markets have been operating in an economy enhanced by fiscal and monetary stimulus.

As it is, some Fed officials are already sounding off that the buying of mortgaged-backed securities and Treasury bonds will start receding toward the end the year. On the other hand, members of the Federal Open Market Committee, which makes key decisions regarding interest rates, hinted that rates on short-term securities will increase by the year-end of 2022, which is sooner than was expected. Bear in mind that the value of bonds decline if interest rates increase.

According to U.S. Bank’s Rob Haworth, a Senior Director of Investment Strategy, buying of mortgage and Treasury bonds as well as low interest rates had provided critical support for investors. Such actions helped curb any substantial downward movement transpiring in the stock and bond markets.

Fed Officials Finally Admits Inflation Reversal Won’t Happen Sooner

The S&P 500 responded well as it grew by 21.6 percent during the first eight months of this year. According to the Feds, actual increase in corporate earnings had driven the higher stock prices.

However, the Federal Reserve’s Central Bank finally admitted las Wednesday that inflation will continue to increase as it will take longer for a reversal to happen. In fact the Feds raised their estimation of average inflation rates from a previous 3.4% to 4.2%.

Since inflation impacts consumer behavior, a decline in buying activities as a result of increased prices, will in turn impact the earnings of some corporations.

Financial Expert Offers Insight on Sectors to Consider as Diversification Options

At the U.S. Bank, Eric Freedman, the Chief Investment Officer said they have been closely monitoring if inflation will spur reactions that could create challenges for the securities market.

Freedman believes that economic volatility that results from public policies usually occurs in specific industries and does not affect the general economy. That being the case, Freedman mentioned certain sectors that U.S. Bank investment leaders will pay attention to because they offer long term potentials.

He describes such industries as being well positioned to realize benefits from long-term economic trends. They are in particular, the industries focused on helping people stay productive such e-commerce and information technology. While before, these sectors had lagged behind as performers, they remain resilient as they offer services that work toward creating a stronger economy.

The healthcare is another industry to consider, as most consumers are now into products that can extend life expectancies. Consumers have demonstrated they are inclined to look for products and services that will enable them to take better care of themselves, including those that help them stay physically and mentally active.

Diversification of holdings is still the key to keeping one’s portfolio attuned to the level of comfort maintained as part of a sound strategy. A properly diversified portfolio is one in which the risk level will not greatly impact the yields of high return investments regardless of how economic events play out.

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Why Goals Are Important To Your Finances

Some people have dreams that they want to come true at some point. Other people don’t have dreams, they have goals. The difference between a dream and a goal is very simple.

Goals have a plan. Goals with a concrete plan are also important for your financial planning. Otherwise, it just remains a beautiful dream.

Why do you need investment goals and a strategy?

Goals give you orientation in everyday life. Goals help you to stay motivated, ensure a sense of achievement and direct the focus on the essential things. The starting point for this should always be the actual situation. Only those who know their investment goals can make good investment decisions.

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Aplusasset Investment: Mistakes to Avoid

Investing is one of the smartest things you can do with your money. But if you’re not careful, you can end up falling for a scam and even losing more than what you originally had.


Aplusasset Investment Mistake 1: Having No Goals or a Plan

It’s like going into a crazy workout without a plan of attack. Before you start investing in, you need to have clear goals. This will help you find appropriate tools and strategies to achieve what you need.

Aplusasset Investment Mistake 2: Not Having an Advisor

Especially if you are a beginner you need someone who can give you the best advice and who is a guide to what you are looking for. You need to do the research and find the right person for you, taking into account your needs and how much you would like your advisor to be involved in the decisions.

Aplusasset Investment Mistake 3: Not Understanding How an Investment Works

You need to research all about an investment first before making an investment. This is the only way in which you can understand the risks associated with the investment, including potential losses or returns. You need to think about how it will fit into your existing portfolio.

Aplusasset Investment Mistake 4: Investing in a Trend

There are investments that become very popular at some point. But that is by no means a sufficient reason to do it. The most important thing is that you find something that is good for what you are looking for.

Aplusasset Investment Mistake 5: Failure to Pay Attention to Fees

Every investor must pay a fee on their investments and that can reduce the return. Hence, you need to consider this and the risks to be sure that the option you choose is the best possible for you.

Aplusasset Investment Mistake 6: You Rely On History

Past performance is not an indicator of future performance. An investment that went well last year can fail the following year. Pay attention to the current market, the risks and the allocation of resources.

Aplusasset Investment Mistake 7: Not Capitalizing Income

You can make the money you save grow by investing it for a return. And you can make it grow even faster by investing the money you make along with the money you originally invested.

Aplusasset Investment Mistake 8: Don’t Diversify

Investing in the same thing all the time isn’t necessarily the safest thing to do. Diversification, i.e. basically investing in different categories, industries and areas, can help to reduce the risk.

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Buying Expensive Gaming PCs on Amazon Made Easier

Gaming PC Setup


Purchasing a fantastic gambling PC is not affordable. It’s true that you can find a machine that plays games for about $500 but it is most likely not likely to operate anything in Ultra configurations. If you would like to experience games in their graphic best, you want a rig that is around $1000. Paying that form of cash upfront is not straightforward. Luckily, Amazon has a brand new program that makes it possible for clients to fund their gambling PC buys. In this way, people can invest in smaller payments within a time period rather than all at one time.

According to Destructoid, Amazon currently includes a monthly payment method for pricey things. The machine changes payments over five months rather than making customers pay a lump sum. If a person purchases a gaming PC for $2000, they can elect to pay $400 for 5 weeks. To make matters better, the lending system comes in zero percent interest. Amazon says that there are “no finance charges, no hidden or interest charges, and no credit check or program demanded.” That is not a bad deal in any way!

This funding option is available for items such as laptops, notebooks, monitors, PC parts, tablets, elements, drives and storage, memory, media, and PC and tablet computer accessories. You’re able to fund a whole computer or only the components you want to construct. Clients have a lot of alternatives given everyone the things they could fund. Much like Electro Finance’s computer payment plans.


ALSO READ: Protecting Your Finances From Identity Theft


Destructoid additionally points out that the app is not just elastic. You may just cover five installments. It’s assumed that Amazon will bill your credit or debit card each month. It’s all up to the client to be certain that they have sufficient cash in their bank accounts to cover Amazon. Should they receive an overdraft charge, that is on them. But if they are accountable this shouldn’t be a problem. It is probably a fantastic idea to be certain you have enough cash to get a gaming PC in the first place before using this program.

Please be aware this app is available to clients who meet particular criteria. It appears to require people to be located in the USA, possesses an account above a year older, possesses a credit card connected to said accounts, which the client has a fantastic payment history. And, this application only applies to specific items (in this circumstance, PCs and their parts).

Back when I received my gaming PC I needed to invest $1500 upfront at Micro Center. I had my cash prepared, but I shall admit a choice similar to this could have benefited me greatly. I am sure many people who wish to try their hands in PC gambling or merely would like a more potent rig will leap onto this system. However, like I said up top, make sure you have cash in the bank to cover off Amazon monthly. The very last thing you need is an issue with your financial institution.


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What is an Investment Bank?

A lot of people don’t understand what an Investment bank is. Investment banks as an industry is really is one of the oldest industries which has ever existed. The reason why it’s been able to survive so long is because it was able to adapt and change its business module over time. The name hasn’t changed, although the business has changed to keep up with the times and the name has not changed, people has the same assumption as what an Investment bank was in the past. So many assumed that you will only find investment bankers. This is not always the case. Investment banking as a division is a very small part of what an Investment bank is.
Investment bank is an institution which advises and helps its client execute financial transactions. Investments banks have three main types of clients: Companies, Government, Individual.

There are some large investment banks and they do far more than just advising and executing financial transactions in behalf of its clients. They also have visions where they buy and sell securities, stocks, shares, bonds and derivatives. There are divisions who are dedicated for just research, other divisions will be for management.
Main Divisions of an Investment Bank:
1. Investment Banking (IBD)
2. Sales and Trading
3. prop Trading
4. Wealth Management
5. Private Banking

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Financial Analyst – What Do They Do?

You’ll find financial analyst roles in a variety of different organizations. Since investing has become more complex, there are literally thousands of stocks, bonds and funds to choose from. That’s why an advice from a financial analyst is in great demand. They do the research that help investors make decisions. The analysts examine a company’s financial records, its projections and even its competitors to get an idea whether it’s a smart investment or a risky one. While analysts travel to visit companies they’re analyzing for a firsthand look, much job is done from an office desk using computers and phones. Based upon their research, they make recommendations to their clients.

Some analysts advise banks, insurance companies and other large investment groups. Other analysts are employed by firms that handle investments for individuals. In neither case, the requirements are the same, you need strong math and analytical skills. As well as keen business skills. A college education is usually a must. To move ahead in the field, a financial analyst must seek an advance degree in business and earn as certification as a chartered financial analyst.
More and more organizations and individuals are turning to invest to increase the return on their money. That means the job outlook for a financial analyst is becoming increasingly in demand.

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5 Awesome Benefits of Life Insurance

Family at the beach


We get it: nobody wants to consider death—for us or those we love. And plenty of individuals equate life assurance with death. And while it’s there if the worst were to happen, it may also do numerous other things, and doesn’t need to break your budget while doing it. Take a look at these great reasons to think about life insurance:

1. It’s a part of a sound financial statement.

Insufficient coverage has severe consequences for several families. Our 2019 Insurance Barometer found that four in 10 households with no life assurance would have immediate trouble paying living expenses if their primary jobholder died. Life assurance that is also applicable for those with health conditions like cancer helps with planning for your loved ones’ long-term health and happiness, providing you with peace of mind that your loved ones are financially protected.

If someone would suffer financially after you die, you wish insurance a bit like you would like a savings or bank account. The money from the policy’s benefit can help your family meet many important financial needs like funeral costs, daily living expenses, and college funding.

2. It’s not as expensive as you’re thinking that.

Many consumers believe that insurance is either too complicated or too expensive to contemplate, creating a barrier to ownership with only 57 percent of individuals owning life assurance in 2019. Genuinely, life assurance is inexpensive and far more accessible than you just think. For a healthy 30-year-old, for instance, they’ll get a 20-year term life assurance policy with $250,000 of coverage for about $13 a month. After you break it down like that, it’s easier to take into account and less scary to give some thought to.


ALSO READ: What are the Role of Banks in the Economy?


3. It can build cash value over time.

Permanent life assurance features a cash value or cash surrender value, which suggests it can build cash value over time additionally to providing a benefit to your beneficiaries. A bit like most retirement and tuition savings plans, cash values can accumulate on a tax-deferred basis and be utilized in the long run for any purpose you wish—a payment on a home, college tuition, or maybe income for your retirement.

This can be an honest option because the borrowing rates tend to be relatively low and it’s not obsessed with credit checks or other restrictions. Detain mind, though, you’re ultimately chargeable for repaying any loan as started, to create sure your beneficiary receives the benefit you had envisioned for them.

4. Life assurance will be quite just life assurance.

Riders to a life assurance contract or a particular quiet policy can enhance coverage. As an example, you’ll have an insurance policy, sometimes called a hybrid policy, that features a long-term care benefit to buying long-term care services. If this is often something you wish down the road, you’ll be able to benefit from it, otherwise, there’s a benefit for your beneficiary. There are a variety of various riders available which will facilitate your customize and boost your coverage.

5. It can help maximize your retirement.

If the financial obligations you had after you first purchased a permanent life assurance policy have ended, your policy can tackle a replacement life and benefit your retirement. Structured correctly, your policy can provide supplemental retirement income via policy loans and withdrawals or maybe options for long-term care benefits.

Life insurance may maximize a pension by supplementing a surviving spouse’s income or establish a life assurance trust to permit you to depart this world to your heirs outside of your estate (often avoiding both estate and income taxes).


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Why Do Our Budgets Fail?

Studies show that more and more people are budgeting their money nowadays. But the downfall is that many of them run out of money before the end of their pay period. Why are people’s budget failing? Here are some reasons and a solution to these problems:

1. NO fun. No matter what their budget or circumstances are, every person needs some fun money set aside. They can spend it on anything they want. Make sure to set aside a portion for fun money every month, even if you’re paying off debt. It does not have to be a lot but needs to be there.
2. Too complicated. People track every tiny detail. One should be tracking income and expenses but not in such detail. If not sustainable you’re not going to stick with it if it’s too much a job to keep it detailed. Make it simple to actually stick on it.

3. guessing. Don’t guess on how much you should spend on. Look back, check your bank statements, credit card statements and look on all your expenses and average them out to get a total on how much you actually spend. If you find this out, you can set aside and figure out how much your budget should be.
4. Not measuring. Regularly check on your budget, at least monthly and follow-up to see how you are doing. Always make it a habit to evaluate.
5. Perfection. For many they want their budget to be perfect. They put so much time and effort but note despite this, it is never going to be perfect. We are constantly changing and adapting. Work out on irregularities.

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Jobs for Finance Majors

Is a degree in Finance worth it? Studying finance can help in studying future performance and future growth whether be it a business or the economy as a whole. It is mainly focused on planning, strategy and growth. Finance is more forward looking. When you take a degree in Finance, there is a lot of flexibility when it comes to what types of job and careers you could go into after you get your degree.

Here’s a list of jobs you can land when taking Finance as a degree:

  1. Investment Banking Analyst. One is likely to work with an Investment Bank. You will be having clients and it is important to know what their financial goals are. Through this goals you will analyze what is best to put in a portfolio for a particular customer. This job’s average annual income is at 90,000 USD.
  2. Quantitative Risk Analyst. This job would usually use Mathematics and other complex models in order to analyze the risk of a certain financial decision. You study plenty of data and use a lot of models. Your goal is assessing the risks that a certain company when Investing. This job’s average annual income is at 95,000 USD.
  3. Actuary. This job is also involving analyzing risks. Their job is to assess the financial damage or financial on goings of a certain risk. You will be working closely with Insurance Companies. This job’s average annual income is at 100,000 USD.
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Why the UK-FCA Banned Selling of Crypto Trading Options to Retail Investors

In mid-2020, UK’s financial regulator the FCA, issued a ruling disallowing the sale and promotion of trading options on cryptocurrencies to retail investors. While many of UK’s retail investors cannot afford to invest on bitcoins today, due to its current high price value, many turned to Contracts for Differences (CFDs) as an alternative trading option. After all, CFDs do not involve buying of a cryptocurrency as an investment asset, but only entails taking a financial position on how the price of a particular crypto asset will trend and behave crypto trading sites.


FCA’s Explanation for the Ruling

The Financial Conduct Authority or FCA explained that the reason behind the ruling is that cryptocurrencies like bitcoin, ethereum, litecoin, ripple and the likes, are unregulated assets and are not specified investments by virtue of legislation. That being the case, there are no policies, rules and guidelines that apply to their sale and purchase when traded as an investment asset.

Although trading on financial derivatives is an option available to UK’s institutional investors, the contracts executed and held as investment instruments, are for specified investments like stocks, foreign currencies and other valuable commodities like oil, and precious metals or gems.

However, it came to the attention of the FCA that majority of those who tend to suffer sudden and unexpected losses are the retail investors, and mostly the amateurs. Mainly because, unlike institutional investors, many of those who are new to the investing field do not understand that cryptocurrencies are high risks because of their volatile nature.

Who are the Institutional Investors?

An institutional investor can be an individual or organization that participate in trading activities by directly buying and/or selling securities in blocks or large quantities. Doing so earn them the right to receive preferential treatment as well as give them the ability to negotiate for lower fees. This denotes that if you’re into piece-meal investing through the services of a broker, you account as one of the retail investors in the financial markets.

Institutional investors are those whose business is to provide investing services on behalf of different people, usually as investment managers of pension funds, hedge funds, mutual funds or endowment funds. Other known institutional investors are investment and trust banks, commercial insurance companies and private equity investors.

Generally, people entrust their money to institutional investors who are highly reputable; particularly those whose expertise and knowledge of the financial markets make it possible for their money to grow. If the results are otherwise, contracts can end while those with surplus money will simply choose another investment manager or bank.

Inasmuch as institutional investors move large blocks of holdings over securities, bonds and other investment assets, how they move such investment products tend to influence the markets. Take note that when institutional investors began embracing the concept of using bitcoins as hedge funds, BTC prices started soaring to record-breaking levels.

Still, not all institutional investors are alike, which is why retail investors who possess the expertise and experience prefer to take control and management of their own investing activities, usually with the help of a broker. An investment broker is different from an institutional investor because as broker, he trades securities on behalf of a retail investor based on the buying and/or selling decisions of the latter.

While savvy retail investors also dabble into options trading by way of financial derivatives, they engage the services of brokers licensed by the UK’s FCA. Based on the recent report entitled “3rd Global Cryptoasset Benchmarking Study” released by the University of Cambridge, most crypto investments firms operating in the UK do so without the required FCA licence.

One such firm reviewed by the AstTrader team of analysts is Tradeo. Still, if you’re not a UK resident and want to learn more about this CFD broker since the firm is also popular as a provider of a social trading platform, a comprehensive Tradeo.

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What is a Financial Adviser?

Whether you are planning for retirement or simply creating a personal budget we usually get help from an expert who can offer some advises. However, note that every person’s financial situation is unique thus the services of a specialized financial professional is required. A Financial Adviser is a person who helps anyone manage their money. This title is a general descriptor.

Designations given to financial advisers:

  1. Stock Broker. These are people who buy and sell stocks and other securities on behalf of clients usually for a fee or commission.
  2. Certified Financial Planner. They make use of holistic approach for a person’s financial situation. They would give advice on estate planning, retirement planning, insurance needs and personal finances. This is the most common designation.

Requirements to be a CFP:

  • Hold strict ethical and performance standards
  • Required to have financial planning experience and pass a board exam

3. Investment Advisor. They are specialized financial professionals. Their role is to build investment portfolio based on goals, timeline, and risk tolerance. These tools will help build, manage and transfer wealth.

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What are the Role of Banks in the Economy?

Commercial banks are a vital element of any functioning market economy. Banks have two principal tasks or functions.

1. Commercial banks facilitate any transfer of payment between private households, companies and Government entities. Cash plays only a minor role on our daily lives compared to banks who organize a large part of our monetary dealings. This can be done through electronic transactions without any bank notes or coins involved.

2. Another important function of banks is that they act as a financial intermediary for people and businesses that save money and to those who needs loans. It’s most important functions being an intermediary are:

  • Pooling of assets
  • Maturity transformations.
  • Risks transformation for savers and providers of capital.
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Protecting Your Finances From Identity Theft

Many people become a victim of financial scams and identity theft. These crimes are heavy because they cost the victims so much loss of money and time, depression and anxiety.

Here are some ways to help you get protected from these crimes. This can keep your finances secured.

  1. Protect your personal information and data. Do not share your personal information to anyone be it online or personally. Many people become a victim to these. Keep your personal information secured offline and online. Be alert for these kinds of people when. Know who you are talking to before sharing information. Never post and share your full name, mailing address, contact numbers or any account number. Be wise and alert.
  2. Always keep your passwords to yourself. This is a private information that you should always keep safe.
  3. Make it a habit to check your credit. This is important. You have to check your finances regularly to check and verify for any doubtful activity.
  4. Keep your gadgets and devices safe. Installing spywares and antiviruses in your computers and devices can protect you from these criminals.
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