Monthly Archives: August 2018

How much to save a month to have a financial balance

Are you among the 65% of people who stay awake at night for money worries? Managing your money can definitely be overwhelming, especially if you do not know how much you should save a month to have a financial balance that gives you peace and tranquility. The good news is that you do not have to do much to control your finances. You just have to follow some simple rules to take care of your expenses and solve your most pressing money problems.

It is not about not spending anything and limiting yourself completely, but about leading a healthy economic life by learning to save money in a short time .

We have prepared a brief questionnaire that will help you achieve financial balance and, above all, the peace of mind you deserve. In addition, we present you with five basic financial rules that will change your life and put you on the path to a more prosperous future.

How much to save per month

How much to save per month

 

Everyone has a unique situation and there are no specific financial numbers that define success, but there are some practical rules that can help you measure your progress. These rules will put you on the right track.

Spend less than you earn

More than 75% of full-time workers live on a daily basis with the monthly salary they receive. That is to say, they do not manage to generate savings or form a patrimony or, even worse, they are indebted and they do not manage to leave the vicious circle of the collection of interests.

Unfortunately, it is impossible to get ahead and achieve a financial balance if you spend more than you generate. In order to save, you must have money at the end of the month and for this, you have to cut unnecessary expenses and not give in to the sudden impulse to buy anything.

You need to reduce your expenses and find a way to increase your income.

One way to increase your income is through some extra activities you can do from home. You can do crafts, cook cakes, knit clothes or do a garage sale.

Institute a 24-hour rule for large purchases

Many people feel guilty after making purchases, especially when they are aware that the expense was unnecessary and that they bought something they do not really need. Spending a lot of money on something that does not bring joy to your life is a waste.

To stop the blame and make sure you get the value of each purchase, establish a waiting period of at least 24 hours before making a large purchase.

Of course, the definition of “large” purchase will vary according to your income. But, in general, any purchase that exceeds $ 1,000 is a big one.

The 24-hour waiting period gives you time to think if it’s really worth a big expense: Do you really need that new cell phone or is there something better you can buy or get with all that money?

A waiting period also gives you time to find a better deal. If you can not get the item out of your head and decide to buy it, you can save some pesos anyway if you are looking for the best offer.

Put yourself in the same channel with your partner

Money is the main cause of stress in relationships. Not only does fighting for money make it difficult to get along with your partner, it also makes it difficult to achieve financial goals.

If you are trying to save or leave a debt and your partner lives in the mall, you will never get out of your troubles.

To make sure they are in the same channel, make time to talk and agree on household finances. Make agreements on the goals you want to achieve.

Think and write down how much you want to save and what your financial goals are for the future. Then, find ways to work together to achieve your plans.

If you constantly fight over expenses, it may be best for each to have a separate account with a mutually agreed amount of money for entertainment and free expenses.

Save for the lean season

Image result for emergency moneyEmergencies are going to happen. Unfortunately, almost 60% of people do not have enough money in the bank to cover an emergency. More than half of households facing an economic crisis are slow to recover their financial equilibrium for more than six months.

If you do not have savings for the lean times, you will perpetually end up in debt when you have to solve an emergency with your credit card.

This will derail the payment efforts and make saving more difficult. An ideal goal is to save enough cash to cover between 3 and 6 months of living expenses.

If that seems insurmountable, start saving a little money each month until you have at least $ 20,000. You can grow your emergency fund little by little, but at least you can cover some financial emergencies without resorting to credit cards.

Prioritize your retirement savings

Even if you do not follow any of the other rules that we have suggested, this is the most important, which you must obey with rigor. You must save money for your retirement. Once you can no longer work, there will be nothing you can do, so you must act now.

Before paying anything other than the most essential bills, divert a portion of your salary to invest in a retirement fund or pension program. Ideally, you should save at least 15% of your income.

What is the level of debt I can handle?

In a perfect world, not having debts would be the best answer. But we must bear in mind that sometimes we do not have enough money to face a health emergency or to undertake a home remodeling project or the purchase of a good.

Most experts agree that your total monthly debt payments should not exceed 36% of your gross monthly income. That is, if you earn 10,000 pesos, the maximum you have to pay for debts per month is 3,600 pesos. This is a good stop, if you can reduce this number you will be in very good shape.

One of the most used savings rules is to save at least 10% of your income. Keep in mind that this usually means that you are saving additional money in a retirement or retirement plan as well.

The 10% rule applies to the creation of a savings mattress for unexpected expenses, college education or other goals.

When it comes to how much you should save for retirement, you should review the program agreement you have for when you stop working. In some cases it is pertinent to invest the money you save extra to increase the amount you will receive at the end.

Younger people who have more time to save should strive for a minimum of 10%, although the closer they are to retirement, it is better to increase savings between 20% and 30%, depending on their ability to save.

Create a fund for emergencies

An emergency fund is used to cover expenses when there is a sudden loss of income or other financial emergency. Most experts suggest that a home should have between three and six months of expenses available in case of an emergency.

So, if your monthly obligations amount to $ 9,500, you must 9 try to keep between $ 28,500 and $ 57,000 in your emergency fund.

Do not forget about retirement

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Many experts use the assumption that you should opt for approximately 75 to 80% of the income you received before withdrawing.

Remember that you will not allocate a part of your monthly money to the financing of your retirement, so your average monthly income will be almost the same.

Another way to think about it is with the assumption of a lump sum that says that your total retirement savings should be approximately 20 times greater than your annual retirement expenses that are not covered by external income sources, such as social security or a pension .

How much should you invest for a house

You must start by calculating the proportion of debt with respect to your income that you should have, remember that your debts should not exceed 36% of your income per month. Minimize your debts and you will know how much money you can allocate to the purchase of a house.

Another golden rule for housing is that you should buy a house that does not cost more than two and a half or three times your annual income. For example, if between you and your partner earn and your spouse together earn $ 288,000 per year, you should not invest more than $ 576,144- $ 864,000 in an apartment or house.

Conclusion

Start with what you can save. Increase aggressively your savings, including the diversion of your increases to your retirement and / or retirement funds, until you have reached your savings goal.

Living in accordance with these golden rules of money management is not easy. But if you can achieve it, the rewards are worth it.

A happier marriage, more financial security and the ability to stop worrying about money are benefits that will pay big dividends once you control your financial life.

Achieving financial balance is possible, all you have to do is cut unnecessary expenses, contain your consumer impulses, organize your purchase plans, allocate fixed amounts to your savings, generate an emergency fund, save money for your retirement and develop a adequate financial culture.

Tips for not making bad financial decisions that you will regret in a year

Google prohibits payday loan advertisements

Image result for google officeNot long ago, Google made the announcement of “… banning its system of advertisements regarding payday loans and other related products.” Collectively, the internet in general and the financial world more specifically, have let out a sigh of relief. Later, after reading the official report and taking a moment to think about it, some began to question this decision. Did Google make this decision based on its moral code? Is it up to Google to decide what is morally right or wrong?

Opinions vary greatly on the subject. Ours are falling in the middle of this issue, payday lenders are misleading predators and their ads target those who have low incomes or are desperate to get the money they need.

Convenient and timely access to any financial assistance is something that many Canadians are looking for. We believe that this is a service that must exist and we are working hard to offer it and improve it every day.

Google declaration

In a recent statement, Google wrote “… today, we want to share with you an update that will take effect July 13, 2016: we will ban payday loan advertising and other related products from our advertising system. . We will no longer advertise loans where repayment must be made within 60 days of the date of grant. In the United States, we also want to prohibit loan advertisements with an APR of 36% or more. “

Advertising with Google is a big part of any marketing campaign. Millions of people use Google daily and if your company’s advertising is seen by even a tiny fraction of people, it will dramatically increase traffic to your website, blog or store. Google is a recognized name and the company knows it, we quote “This change is intended to protect our users from unfair and dangerous financial products and will not affect companies that offer loans such as mortgages, commercial loans, auto loans , student loans or revolving lines of credit (credit cards). “

The company does not intend to get rid of all alternative lenders; it is only trying to protect its users from the dubious and predatory practices of payday loan companies.

What is a payday loan?

 What is a payday loan?

In case you were not aware of the new debate about payday loans and are not sure of the definition of such a loan, here is a brief overview:

  • Payday loans are usually $ 1,500 or less
  • An approval the same day is usually guaranteed
  • They are short term loans, which can be repaid with your next paycheck
  • Their interest rates are extremely high; some have a rate up to 500%
  • They have very little reasonable diligence, you just have to prove your income and your address.

Payday loan borrowers often fall into what is known as the payday loan cycle. It is a borrower who borrows on his salary to be able to repay the first. Often this will take months and the borrower will have to re-borrow until he can no longer take loans to repay the previous ones.

Why are payday loans so popular?

You are probably wondering why someone would like to have a payday loan when these are very expensive. The fact is, payday loans are convenient and relatively easy to obtain. When you are faced with a personal or financial emergency and you do not have surplus money, a payday loan may seem like the only option available.

This is why a payday loan advertisement can be very damaging, it directly targets those who are desperate with nowhere to go.

Alternatives to payday loans

 Alternatives to payday loans

There are countless and excellent alternatives to payday loans. The online loan industry is constantly growing. This year alone, we have witnessed the success of some of our peers, helping many Canadians who, like you, have been approved for a loan when traditional banks close their doors.

At Prêts Québec, we are proud to be one of the best alternatives to payday loans in Canada and we will continue to listen to our clients by ensuring that they have all the financial tools they need to succeed in their financial goals.

Why do Americans search for loans that are online?

Brussels, March 14 (EFE). – The European Commission (EC) proposed today to promote the creation of a secondary market to give exit between interested buyers to the bankrupt credits accumulated by the European Union bank so that the entities can eliminate of its scales those loans with a risk of default and very high default.
In a package with measures to reduce unproductive credits, Brussels also provides non-binding guidelines to member countries to create in their territory, if they wish, bad banks that absorb and concentrate those impaired assets.

After the financial crisis, these loans are at historically high levels in the Twenty-eight, despite the disparities between the community partners, and weigh the viability and credit capacity of banks, as well as the reputation of the entire European sector- website.

“As Europe and its economy regain strength, Europe must take advantage of the momentum and accelerate the reduction of non-performing loans, which is essential to further reduce the risks in the European banking sector and strengthen its resilience,” the statement said. Vice President of the EC for the Euro, Valdis Dombrovskis.

In that sense, he added that with fewer failed loans in their scales, “banks can give more loans to households and businesses.”

For the secondary market where banks can sell their bad loans to investors or credit management companies, the Commission’s initiative defines the activity of these companies, establishes common rules on authorization and supervision and imposes rules of conduct throughout the European Union.

Specifically, it specifies the entry conditions to the market for credit managers or administrators.

Normally, investors do not ask the bank to which they bought the unproductive loans that they continue to administer and collect the credits, but leave that activity in the hands of independent companies called managers or credit administrators, said Brussels.

According to the EC, the scarcity of these companies “discourages” buyers from entering the market, so establishing access conditions and rules of conduct for them is “crucial” if the secondary market is to be developed.

Buyers of failed loans should notify their authorities of their purchases, and investors from non-EU clubs buying consumer loans will have to resort to credit managers authorized by the EU.

The Executive’s proposal also includes the development of a community passport that allows investors to do business in all the Member States of the European Union.

As for the guidelines for creating bad banks in the countries, they cover aspects such as the principles for their establishment, governance, the operations they carry out or the assumptions in which they can receive public support.

The Commission also asks banks to hold reserve funds to cover the risks associated with credits issued in the future “that may become unproductive.”

Thus, Brussels proposes to introduce common minimum levels of coverage for newly created loans that deteriorate and if an entity does not have the minimum reserve amounts, deductions from its own funds will be applied.

In addition, it seeks to enable the accelerated extrajudicial execution of the guaranteed loans, so that in case of default by the borrower, the bank or another preferred creditor can recover the guarantee quickly without going to court.

However, these processes are limited to credits granted to companies and will be subject to safeguards, but they can never be used with consumer loans.

On Wednesday, the EU executive also published a new report on the number of impaired assets in the EU, according to which they fell to represent 4.4% of total loans during the third quarter of 2017, a year-on-year decrease of 1.1 percentage points and the lowest figure since the last three months of 2014.

Should I charge rent to my adult children?

When adult children live at home, the idea of ​​charging them rent inevitably crosses our minds. How much should you charge to your children, who are well into adulthood, to live in the family home? Will there be different related to this money? What are your expectations and those of your children? When it comes to money and children, there are a lot of difficult decisions to make, most of them on a personal level. So, if you’ve decided that your adult children do not have to pay rent, that’s fine, but here we’re going to play devil’s advocate and take a look at why charging your kids for rent could be a good idea.

Opportunity to teach them a lesson about money

Image result for adult children money

At some point in life, you have learned the value of money and what income means. Maybe your parents taught you this at a very young age. Maybe you still try to learn it. In any case, you should want your children to also have the opportunity to know the power of money. Charging them with rent is a great way to show them.

Life is not free or even affordable sometimes

 Life is not free or even affordable sometimes

When your 25-year-old is working full time and lives at home for free, the amount of money spent on what he wants is priceless once in the real world and can not be maintained outside the family nest . By charging rent, it will force them to learn how to better manage their cash flow. Going from zero fixed fees to one may not seem like a major change, but it will definitely help your child make better financial decisions.

Financial independence, or at least some understanding of what is needed to achieve independence, is one of the best gifts you can give to your child. Life is not easy or free or affordable sometimes. Teach it to your children and it will be less shocking for them and they will be less likely to come home at the slightest problem.

Consider other types of rentals

 Consider other types of rentals

If you do not really want to charge a fixed fee to your child to live at home, you can still consider other forms of rent. There is no reason for your child not to contribute at home. Anyway, you can delegate to your child certain tasks that must be accomplished, whether it’s a weekly grocery store, laundry, dishes, taking care of the pet company, to go and bring back the youngest brother or all those things. You will not automatically teach them the value of money but they will understand the time and maintenance that a home requires.

You could also ask your children to set financial goals and contribute to their savings account the time they live under your roof. You can use this option as an opportunity to help them save for a down payment, repay a student loan debt, or simply save on rainy days. In this way, you will not charge them rent, but you will teach them a lesson anyway.

How to approach the subject of rent

Do you have trouble addressing the subject of rent? Here are some tips that will help you get started and get your child to pay his rent.

  • Keep in mind that you are the parents, that the house is yours and that you worked had to pay it
  • Also keep in mind that your child is now an adult and should be mature enough to understand what it means and how much it actually costs.
  • Tell your child that you want to talk to him about how much it costs you to make him live at home
  • Sit down and discuss the subject.
  • Explain that you are willing to make a friend price
  • Make sure your child knows that you simply want help covering the cost of household items and the benefits that are available daily.
  • Accept the price and set a date when the rent must be paid. You can also discuss what will happen if your child is unable to pay rent on time etc.

If you are nervous or unwilling to pay rent to your adult children, know that you are putting your own financial stability at risk simply to allow them to live at home for a few years. By charging them rent, you will help your child learn how to manage his money and reduce the financial burden on your household budget.

‘C2C Conversaciones’, a forum to advance the social and solidarity economy

It is a forum promoted by the Alternative and Solidarity Economy Network of Madrid 

other Social and Solidarity Economy organizations that are part of the REAS Network, in a context of growing visibility and measures to support this economy , in the one that its promoters consider necessary to stop to look at how, with whom and for what things are being done. A forum for professionals, activists and organizations that develop actions to promote and accompany Social Economy and Solidarity initiatives.

Throughout four sessions, they will work in four areas of work that will be coordinated by people and organizations of reference in each one of them and are the result of an accumulated reflection on the part of the promoter organizations to be able to advance on the main challenges and blockages that they detect in their practices.

Analyze and discuss the transformation of companies to the ESS; the financing and scalability of the projects, the creation of models of initiatives linked to people who work in precariousness and how collective work can improve their conditions, and advance on entrepreneurial models.

Madrid Fashion Week, this year more sustainable

Madrid Fashion Week, this year more sustainable

The Circular Project , founder of the Sustainable Fashion Association of Madrid, returns to the foreground sustainable fashion with a new proposal: Smart Fashion = Slow Fashion. Madrid: Sustainable Development Objective , which will be held coinciding with the Fashion Week in Madrid , from January 23 to 30.

In collaboration with the Association of Fashion Designers of Spain and the international platform Slow Fashion World, an exhibition and a day of meetings and conferences have been organized on January 27, at El Paracaidista, Calle de la Palma 10, in Madrid.

Smart Fashion = Slow Fashion will present a selection of national and international designers who are working under the guidelines of sustainable fashion and ecodesign and who research, design and fashion a fashion that goes one step forward “to alleviate the tremendous impact of the industry textile getting to minimize it and even cancel it “, the organizers point out.

“An exhibition that will be structured by the 17 Sustainable Development Goals and therefore will be 17 designers who will represent each of them with the intention of bringing them closer to the public and capture the attention on the global commitment that is under way to stop the deterioration environmental and social aspects of the planet “, they affirm.

In this way, national brands such as Ecoalf in collaboration with Sybilla

In this way, national brands such as Ecoalf in collaboration with Sybilla

Laura Escribano Atelier, Parallel Dimensions, SayPlease, Susana Nakatani, Sylvia Calvo BCN , Irema, Avasan , Yanapaqi, Sidikai, Monikako kids, Sepiia or international like Coatally , Baraa, Qaytu, Hilar, Ek Katha, Herdentier, Common Texture will join forces and ecodesign to show that fashion and another industry is on the way .

“An intelligent, innovative fashion that investigates to increasingly minimize the consumption of resources and environmental pollution but also improves the working conditions of the entire production chain”, they add.

The exhibition will end with the day of January 27, a day of lectures on an intelligent fashion that takes into account each and every one of the factors involved in the creation of a garment and at the same time there will be international communications with various actors of Sustainable fashion from various parts of the world.

The European Parliament establishes in its Resolution on how to avoid the waste of food what is understood as food waste: the set of discarded food products of the agri-food chain for economic, aesthetic reasons or due to the proximity of the expiration date, but which follow being perfectly edible and suitable for human consumption and that, in the absence of possible alternative uses, end up eliminated as waste .

desperdicio2

Data from the Spanish Ministry of Agriculture (MAPA) indicate that during the period between October 2015 and September 2016, Spanish households dumped 1.245,9 million kilos of food in conditions to be consumed (24 million kilos per week) . A figure that states, according to the MAPA, the awareness of families in the fight against food waste, as it represents a reduction of 6% over the previous period, ie, thrown away 80.1 million kilos less . In March 2017, the Spanish people had disposed of 1.1% less food than on the same date the previous year.

Wasting food also means unnecessary use of scarce resources such as land, water and energy and also contributes to climate change: for every kilogram of food produced, 4.5 kg of carbon dioxide (CO2) is thrown into the atmosphere .

To begin to reduce household waste and gain awareness, nothing is as easy as adapting the shopping list to what you are going to consume , taking into account expiration dates and preferential consumption, follow the conservation recommendations of the food and freeze food that will not be consumed.