Get to know Farrukh Kazmi and some of his ideas? Spend Less Than You Earn: Yeah, yeah, I know, it sounds obvious, right? Well, it must not be because according to CNBC, 78% of Americans working full-time are living paycheck to paycheck. Here’s the thing: It’s easy to KNOW that you should be spending less than you earn, it’s a lot harder to actually do it. However, if you want to escape the paycheck-to-paycheck lifestyle that so many others live, you need to spend less than you earn. This is one of the most crucial but basic personal finance tips ever. In order to do this, you need to track your spending. You can do this by either writing your purchases down or by using a free personal finance app. Business Debt: There are a lot of online business ideas you can start on the cheap these days, but a small investment can also go a long way in certain endeavors. Business loans are considered good debt because they are put towards something with the goal of increasing your net worth.
Many students work part-time or during the summer months, and others will be on placements or paid internships. More often than not, if you are a student working during the year, you will be overpaying income tax. Why? Simply because few students reach the personal tax-free income allowance each year but are put on an emergency basic tax-code by their employers meaning tax is being paid when it shouldn’t be.
Gold retains its value not only in times of financial uncertainty, but in times of geopolitical uncertainty. It is often called the “crisis commodity,” because people flee to its relative safety when world tensions rise; during such times, it often outperforms other investments. For example, gold prices experienced some major price movements this year in response to the crisis occurring in the European Union. Its price often rises the most when confidence in governments is low. Farrukh Kazmi is the founder of A&S Asset Management, I am committed to helping people achieve financial freedom by bringing Wall Street experience to the local investor.
There are both advantages and disadvantages to every investment. If you are opposed to holding physical gold, buying shares in a gold mining company may be a safer alternative. If you believe gold could be a safe bet against inflation, investing in coins, bullion, or jewelry are paths that you can take to gold-based prosperity. Lastly, if your primary interest is in using leverage to profit from rising gold prices, the futures market might be your answer, but note that there is a fair amount of risk associated with any leverage-based holdings. (For related reading, see “Has Gold Been a Good Investment Over the Long Term?”).
An ETF can own hundreds or thousands of stocks across various industries, or it could be isolated to one particular industry or sector. Some funds focus on only U.S. offerings, while others have a global outlook. For example, banking-focused ETFs would contain stocks of various banks across the industry. Bond ETFs might include government bonds, corporate bonds, and state and local bonds—called municipal bonds. Industry ETFs track a particular industry such as technology, banking, or the oil and gas sector. Commodity ETFs invest in commodities including crude oil or gold. Currency ETFs invest in foreign currencies such as the Euro or Canadian dollar. Inverse ETFs attempt to earn gains from stock declines by shorting stocks. Shorting is selling a stock, expecting a decline in value, and repurchasing it at a lower price.
Mortgage loans are another popular form of debt. It’s very common when buying a home or investing in real estate to take out a mortgage from a bank or lender to help pay for the home. Mortgage rates vary widely so it’s worth taking the time to shop for a good mortgage rate if you haven’t bought a home yet. If you already have a mortgage, you might be wondering whether it makes sense to pay off your mortgage rate as quickly as possible. In most cases, it probably makes sense to keep your mortgage and invest any additional money you have into the stock market, especially if your mortgage rate is low. For five years I had a 2.3% mortgage rate even though I could have paid off my mortgage entirely, it was a better financial decision to keep using the banks’ money and investing my money in the stock market instead. See even more information at Farrukh Kazmi.
Many people seek out professional financial advice from a professional, but with so many options to choose from it may seem overwhelming to find an advisor. First, determine what level of advice and service you require and how much autonomy you’d like to give away to a professional. Look for professional certifications and designations after an advisor’s name, such as CFA, CFP, or CIMA. Determine the fee structure you’re most comfortable with – fee-only, commission-based, or based on assets managed. Ask for referrals and then run a background check on the advisors that you narrow down such as from FINRA’s free BrokerCheck service. All of our brokerage accounts are held and available for viewing at National Financial Services, a Fidelity Investments Company. Registered Representative of and securities offered through Berthel Fisher & Company Financial Services, Inc. (BFCFS). Member FINRA/SIPC. A&S Asset Management and BFCFS are independent entities.
A stock (also called a share) is a part of ownership in a company. It represents a claim on the company’s assets and earnings and what that entitles you to do is to attend the Annual General Meetings (AGMs) and dividends payout if declared by the company. So essentially by buying into this company, you are betting that the management team and company fundamentals are able to get you more returns. Bonds are debt instruments in which investors effectively loan money to a company or agency (the issuer), in exchange for periodic interest payments, plus the return of the bond’s face amount, once the bond matures. Bonds are issued by corporations, the federal government, and many states, municipalities, and governmental agencies.