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26 Feb 2018

Does Having a Credit Card Increase Your Expenses?

Credit cards give people a reason to spend money. However, careless spending leads to debt and increases your expenses as a result. Why do people use their credit cards then when they know what the future holds for them—credit card bills? It is simple and convenient to reach for your credit card than give cash.

Hence, the question: “Does having a credit card increase your expenses?” becomes true for them. The following points will make you aware of the bad habits that may increase your expenses:

 You Spend More than You Earn
When you are using your credit card on a regular basis, you lose track on the material things you are spending your hard earned money on each day. If you continue to spend carelessly, your credit card debt will increase, especially if you miss a payment.

That is not all you need to worry about, as you will find it difficult to save money, as most of your money will go to paying off the credit card bill each month. Instead, why don’t you reserve paying items with a huge price tag with your credit card, only use it during emergencies, or use it pay off a certain utility bill.

 Your Wants Take Precedence over Your Needs
You are unable to differentiate between your wants and your needs. You tend to prioritize your wants above your needs. If you have developed a habit of doing this, you need to correct it. You need to refrain from using your credit card for clothes, shoes, fast food restaurants, or other high-end products, unless you really need it such as a brand new fridge, a microwave, etc.

Try this strategy: You see something you really like. Do not buy it, but go home. The next day, think if you really want it and if you do, buy it.

 You Use Your Credit Card More than Your Debit Card
When you use your credit card, you have a mindset that you will repay it at the end of each month. Repeated purchases on the credit card increase your bill. If you cannot repay it and do not pay before the due date, you will incur a late fee. If you have debit card, you will know you are spending your own money. When you are making a purchase with a debit card, you will think twice if you should go ahead or not. It is better keep your debit card in your to wallet and leave your credit card at home.

 You Make Random Purchases

You use your credit card to make random and minor purchases, a point discussed briefly in one of the headings. If you are purchasing grocery items such as a gallon of milk or bread with your credit card, you need to stop, as you are only increasing your expenses.

If you use your credit card without thinking, you are increasing your expenses, especially if they are already high.…

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11 Jan 2018

Interesting Facts about the UK Pound and Sterling Few People Know

UK has long been a hub of economic activity and even to this day a large number of investors around the world prefer to make their investments and savings in the United Kingdom. One of the reasons for this has been the strict application of rules and regulations inside the UK. On top of that, the wide variety of monetary instruments being offered by the country has attracted people. One of the most important beneficiaries of this rise in investment in the UK has been its currency, the Pound and Sterling.

The currency of UK forms the backbone of the country’s economy. This article takes a look at some of the interesting facts about the Pound and Sterling that few people are actually aware of.

Fact #1: There is no One Authority to Issue Bank Notes in the UK

Typically in most countries, there is one bank that is in charge of the issuance of currency notes in the country. For example the US Federal Reserve in the US. However, in the UK, there are different banks that are allowed to issue bank notes for their own separate areas for example, the Royal Bank of Scotland, The Bank of Scotland and the Clydesdale Bank issues notes for Scotland. In Ireland, Pound notes are issued by the First trust Bank, Bank of Ireland, Ulster Bank and Danske Bank. In England and Wales, the Bank of England is in charge of this.

Fact #2: The Nazis Produced Counterfeit Sterling Notes

At the time of World War II, Nazi Germany tried to destabilize the British economy by producing forged British Sterling notes in large quantities in a move intended to devalue their currency. By the time the war finished, the British currency had 12% of the forged notes in rolling. To tackle that, the British pulled all high value notes from the market and added a metal thread to their notes to help in their identification.

Fact #3: It is the oldest currency in the world

Not many people know it but the British pound is one of the oldest currencies in the world. The currency has been used by empires and realms for centuries. In fact, it is even older than England itself. The pound was originally created in 8th Century at the Kingdom of Mercia.

Fact #4: The Currency has Titans and Giants

The pound and sterling currency has notes of £100 million and £1 million in existence. Despite not being available to the general public, these notes are available with the Northern Irish and Scottish Banks. The reason for the existence of such notes is because have to hold the equal amount their issue in notes with them.

Fact #5: We Don’t Want Your Change

In the UK, shop keepers are allowed to refuse to accept any payment that is made in too small a change. For example payment of 20 pounds in 1p and 2p can be refused by a shop keeper legally.
These are some of the many facts about the Pound and Sterling in the UK. …

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21 Nov 2017

The Most Common Things People Use Their Savings Account Earnings On?

It is in our human nature to want things that other people have. Hence, at times people spend their savings on something outrageous or something they have been dying to buy for ages. It might be a television set your next door neighbour had just bought or a gaming console that just came out that triggered the impulse. However, every person has different needs and from time to time they get the urge to splurge a little.

Following are some of the things that people spend their savings on:


People often open a bank savings account just for the sake of saving up for a big investment, like buying a car. They might see their neighbour or friend driving something fancy and decide it is time for them to upgrade too. An average person spends around £3,900 in a year, which means around £80 a week. This means, if a person decides to invest in a car, then this amount increases and the money is spent from a savings account.

However, how much they earn on their savings account varies depending on their choice of bank and terms. This directly translates into the time required to save up on their investment.

Restaurants and Hotels

A single person living in a dorm or an apartment usually does not cook. There might be a dozen reasons for ordering food such as working late or they often forget to eat and groceries go bad, etc. An average person spends around £3,016 in a year, which means around £58 a week on food. This amount is only 8% lower than the amount spent on restaurants and hotels. Most people order pizza, Chinese or Thai food on a regular basis, which is how they explain spending their savings on something they love.

Clothing and Footwear

Everybody likes to wear good clothes, especially on special occasions. People often spend extra money on clothes for their first day at job, for a wedding, or for a party, among other occasions. Though the amount spent on clothing is less than that spent on cars and restaurants, it is still something that people pay from their earnings from their bank savings account.

Availing Services

Nowadays, men and women both spend equal amount of money to make themselves look beautiful. While a woman might go to a spa to get the royal treatment, a man will go get a sauna bath to relax from his hectic work schedule. The additional cost of these services are often borne using one’s earnings from a savings account.

Household Goods

People often go a little crazy in buying the latest household appliances or goods such as a baker might want a six burner stove with an oven while an avid football watch might want a 52″ inch plasma. People usually indulge in these items if they have a bank savings account.

In UK, people spend most of their money on transport, food, and recreation. The amount of money used above their spending limit usually comes out of the earnings they gain from a savings account. …

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26 Oct 2016

What Is the Importance of Stock Market Broker in the Investment Journey?

Over the past few years, the role of the broker has evolved greatly. If you are considering an investment in the stock market, get in touch with a broker. In the realm of general finance, stock market investment is something where you reap high returns only when the investment is done carefully. Now, the role of a broker is not restricted to buying and selling of stocks. You can wade through the entire process of investment with the help of a broker. The broker can provide you information on the shares after conducting a thorough market research. Thus, you can consider investing on alternative asset while subscribing to the mutual fund schemes and IPOs. Broker of stock market can also provide you financial assistance. Thus, in short, the broker has become a one stop solution to all your market investment. Let us now peruse through the role played by a broker.

Well, the primary function of a broker is always buying and selling of stocks. He will act as the connecting link between the company and the investor. With the help of a broker, you can invest or transact on stock market with ease and comfort. If you sign up a broker, he will buy or sell the shares on your behalf. In fact, online trading facility allows the investors to execute trades directly on the online trading platform. Just after the transaction is completed, you get the information on purchase and sales of stocks. You will get the account details in written form.

In the USA, most brokerage houses have their own team for conducting researches on the companies and their stocks. They evaluate the macro-economic scenario which affects the stock market. It is basing on the various inputs forwarded by research team that the brokerage house recommends the purchase and sale of stocks.

Brokers also provide intra-day stock trading tips and an idea on how the market will trend. They offer alerts on stocks and news on a continuous basis. If you wish to improve on your knowledge about stock trading, you can attend investor educational program organized by a broker. You will get a knack of stock trading.

Most of the brokers offer personalized service to their clients. Brokerage houses hire relationship managers to talk to the clients. These relationship managers act as advisors in stock trading. They inform the clients when to make investments and what to purchase. You can get great help for intra-day trading.

Nowadays, stock brokers are financially sound. They are well capitalized with strong balance sheet featuring high equity along with debt on books. Most of the brokerage houses provide financial assistance to the clients or investors. You can take position in the market after the payment of the amount.

The Future is Yours

In-a-nutshell, today’s brokers have become one-stop-investment solution provider. They have multiple roles to perform. On the other hand, brokers offer a lot of ease and convenience. With them, one can attain financial goals with the wide range of services and advises.…

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