Financial Safety Advice

Gradually the international financial crisis is being on the road, because the United States and some European and Asian powers have begun to show positive indicators that venture a possible financial recovery by the end of this year and early next. It is clear that the global crisis will persist for several months but do not discard a positive outlet.

Given this possible scenario, and although the Spanish economy is experiencing a good situation, we will recall the main investment options for the next few days, but always depend on whether we have any previous savings or get money for it.

On the property side, the buildings at present are maintained in unstable, since the outbreak of the financial crisis have suffered price cuts and now begin to try to recover value.If we have sufficient capital to buy a property and sell to more value in the future could be an option.

In the property sector, one option is the public debt. On this segment, will try with treasury bills and bonds, for the benefit of this investment is that earnings are paid in advance. On the banking side, deposits are a good option for those who do not want to suffer too many risks, quite the contrary with the Stock Exchange, although not impossible, to demand some knowledge and time to a good decision that will translate into money.

None of these revenue-generating secure. The key, as we always say, is diversification.

Taking into account the conditions of the mortgage loans that are offered today, and the value of one-bedroom apartment in Buenos Aires, a person would have to borrow from a bank for 15 years, paying monthly U.S. $ 1,000 access to home ownership. Even if it could save u $ s1.800 pay off the debt in just 30 months. What for you? Mario Gomez, the real estate market expert and in charge of the course “The real estate and personal finance” Global Investor campus, provides the answer.

This week, the newspaper La Nacion published an article titled: “You have to earn $ 11,000 to pay a mortgage.” The calculation arises to estimate the income share ratio down the banks (30%), for someone who goes into debt for 70% of a department of u $ s 78,000 (60 m2 at the average prices that publishes Real Estate Report) . In short, those who take a credit of $ s54.000 have to pay for 15 years some U.S. $ 1,000 to pay off the loan, interest, insurance and taxes, using the French system of depreciation.

However, this family group earns revenue by about $ s3.000, if over 30 months save 60% of their income (u $ s 1,800 per month), agree to the $ s 54,000. It is true that would be adjusted for two and a half years and live with 40% of household income, but soon could put together as in 15 years of lending commitments. Read the rest of this entry →

Wealth is not the same as income. If one does a very good income each year and spends it all, you are not becoming richer. You are simply living a high standard of living. Wealth is what you accumulate, not what you spend.

MYTH ONE: INCOME vs. WEALTH. Therefore, to demystify first aspect of the rich is the bond that is usually done between income and wealth. They are two completely different concepts and it is very important that we see it that way.

How did the millionaires to become rich? Probably be thinking that the main source of wealth is the heritage or family tradition. But most of these millionaires are not descendants of Rockefeller. Over 80% of millionaires are ordinary people who accumulated wealth in one generation.

They did a slow, steady, without signing a multimillion-dollar contract with a football team or a record company without winning the lottery without actually becoming a character from the likes Madonna.

MYTH 2: THE 80% of millionaires are first-generation. Wealth is, in most cases, the result of a lifestyle that includes hard work, perseverance, planning and, more importantly, self-discipline. Read the rest of this entry →