The financial recession affected all of us, so today, we would think twice before spending ten thousands dollars on a Caribbean cruise. Today, the average US and EU citizen must raise the money for a vacation for several months. During this period, it is a good idea to invest your money, to cover factors like inflation. The micro lending companies could be of great help, as those companies would find small business opportunities for you that could be started with a few hundreds dollars. This way, you can invest your money now, knowing that four months later, you will have it back, plus an interest of 10-30%.
It is a lot better than investing in banking deposits, isn’t it? The interests are bigger, and you will also help a business entrepreneur that does not have any other method at his disposal to obtain the respective funds. After a while, you can create a direct connection with the respective person, so you would become full business partners.
The small industries in the developing countries have advantages and disadvantages. On the other hand, they have cheap labor force and materials, experience gained for centuries and the willingness to work for a better future. On the other hand, the poor governments of those countries might not be able to sustain those small businesses. Sometimes, we are talking about countries with budgets 1000 times smaller than the one of the United States. In those countries, every dollar counts, and a solid business can be started with only a few hundreds of dollars. With the help of the micro lending websites, the connection between small investors from rich countries and the small entrepreneurs from developing countries is made, with advantages on both sides.
Starting out in the world of employment can be very exciting for young adults; who no doubt will go nuts with their first payment or payments and spend wildly. The sensible ones will soon begin to think about the future and want to know the best ways to save and possibly invest their money. There are some helpful finance tips for young people to set them on the right path to making their money work for them and eventually reap the benefits.
Self-control doesn’t come easily to the young but is necessary in financial areas. Weekly or monthly budgets are the best idea and should include all outgoings like rent and bills, as well as a fixed amount for personal expenses; with the rest going into a savings account. Young people are advised to steer clear of credit cards, at least until they have accumulated some savings; when they will be able to use a credit card for convenience knowing that they are able to pay off the bill comfortably at the end of the month, without accumulating interest. A bank debit card is just as acceptable for electronic purchases and a much more sensible option for everyone; not just young people.
When saving for a large purchase like a car or possibly a future home; money is best saved in a high interest savings account, where it is not immediately accessible and will speed up your saving by adding attractive amounts of interest; particularly on long-term investment.
Financial tips for young people must of course include student loans; which are a reasonably affordable option for borrowing money to pay for studying expenses. These loans are for varying amounts according to requirements and do not have to be repaid until studying is completed and you begin to earn a reasonable salary: first jobs are generally not very well paid; so even then you will not have to begin repayments but can wait until your salary surpasses a fixed threshold.
Most colleges and universities have a student money adviser to help you with any concerns about loans and repayment; or you can also do some research online. Most banks have special bank accounts for students and some offer interest-free overdraft that can be repaid after graduation.
A bank’s information desk and even the bank manager are available for advice and are always willing to provide finance tips for young people who are about to enter university, or just starting out in the employment world.