Finance

Things to consider when moving to a Cheaper City

Darryl Bachmeier Dec 12, 2020 Finance
Are you thinking the current city you live in and lifestyle filtered your spending income at a dangerous rate? You feel helpless despite your best efforts. It is time for something completely different - something many people you know have used it, but never had the chance or strength to do it yourself until now. So what can you do? If the cost of living proves to be too difficult for your budget, is moving to a cheaper city the best answer? Therefore, before you start preparing for the move, keep in mind that moving is not the right answer for everyone. Definitely, this is one of the most crucial ways to deal with a difficult financial situation. However, for some, higher mortgages or rental prices can lower their finances and leave them with less money to save or pay off debts. If you can relate, “Should I go to...

Pros and Drawbacks of Having a Joint Account

Darryl Bachmeier Nov 18, 2020 Finance
As a disclaimer, this article will not touch base on love in marriage. Rather, it’ll explore one marital challenge that couples used to face at the beginning, and even throughout their marriage - joint versus separate finances. We are regarding marriage as a union where two people become “one” both in Biblical and practical contexts. You cohabit, share assets and liabilities, and procreate. It is interesting to note that marriage does not alter each other’s person. Rather, it celebrates each spouse’s uniqueness by complementing each other. What unites them in marriage is accountability in decision making, as well as mutual stand in major issues. Getting married is a huge milestone for two people individually and as a couple. But after the excitement weans, the reality creeps. There are many things that you need to face together moving forward, and from the moment you signed your marriage certificate, you are in...

When you get rich quickly, bad things happen

Darryl Bachmeier Oct 10, 2020 Finance
You may have heard that if you want to get rich quickly, bad things happen. Some believe in this while others think it is a myth and nothing more. Regardless of what you believe, the truth is explained here. Getting rich quickly isn’t ideal nor something you will want in your life. Here’s why and how this translates into your life. Getting rich quickly isn’t realistic If you get rich quickly, bad things that happen to you is just a part of the story. The first thing you need to understand is that there is not a quick (legal) way to get rich quickly. Yes, you can win a lottery or something similar, but the odds for that are minimalistic. The main reason why this happens is the law of equity. Basically, what you invest or put in reflects what you are going to get. The best example is using...

How to build credit score

Darryl Bachmeier Oct 8, 2020 Finance
Each financial decision you take can affect your credit rating and your ability to obtain work, credit, credit cards, basic utilities and services, whether renting an apartment or leasing a car. Good financial choices help lenders and businesses find you at low risk. The chances of getting financial opportunities, including higher credit limits and lower interest rates, are high. Credit scores vary. If you have never had a loan or you have made financial mistakes, prudent decisions and responsible actions, over time, a positive credit report can lead to financial benefits. Wondering how to set up a mortgage loan? You have come to the right place. Why should you create a credit score? Your credit history represents a record of your ability to repay debts on time. This is an important piece of information that a financial institution will review when considering whether you can lend (e.g. credit card, loan,...

All about Average American spending habits

Darryl Bachmeier Oct 2, 2020 Finance
America is currently the world’s biggest economy which is majorly due to its high consumer spending, contributing about 70% of its $20 trillion economy. Multiple factors such as low unemployment, young population, technological innovation, and high average incomes have contributed to America’s fat economy. That being said, have you ever wondered how the people living in the world’s biggest economy spend their money? In this article, we’ll go over the spending habits of average Americans, and also try figuring out any major issues in the way their economy works right now. Housing A major chunk of US household’s income is spent on housing. This can be mortgages, rental payments, utilities, and household equipment. With a growing population, the demand for housing continues to grow in America, and considering the high costs associated with owning a house, it is no surprise that around 30% of the income is spent on housing-related...

Your Loyalty is Costing You More

Darryl Bachmeier Sep 24, 2020 Finance
We have always applauded loyalty as a virtue. Be it in relationships or to your favorite brand of fast food or mobile service holder. But have you ever wondered how much have you gained from this loyalty? Do these companies give you special discounts for staying with them, say 9 years? If your answer is in the negative, perhaps it’s time to reevaluate where we commit as a “loyal customer” What is a Loyalty Card? A customer loyalty card is a program that gives the customers the ability to identify as a regular customer. Companies arrange this program to allure customers to keep returning to them in exchange for exclusive offers, discounts, and package deals. The customer can also save points on the cards from the purchases and use the points to buy something else. As a result, the customer finds an incentive to keep returning to the brand. What...

Assets versus Liabilities

Darryl Bachmeier Sep 22, 2020 Finance
Assets and liability are considered the two main components of a business. It is also important in an individual’s personal life. Banks always ask for a statement of current assets and liabilities from their clients before providing them a loan. Why is this necessary? That’s because the bank needs a clear idea of your current financial position and check if you are capable enough for paying back the loan with interest in the foreseeable future. So it is of utmost necessity for an individual and also a company to have a clear understanding of what assets and liabilities mean. If you cannot differentiate between the two, then don’t worry. We will explain to you in detail what these are. So, stick with us till the end. What are assets? Let’s start with assets because it is easier to understand. Assets are things that you own, both physical and abstract. As...