To give you tips for investing. Banks employ an army of salespeople. Half a dozen Exchange Magazine courting every week at the kiosk to their attention. And tried a large part of the advertising industry, to convince you of funds, and insurance.
But one of the most important tips when it comes to their money, you rarely hear:
Do you have a mortgage on the house? A loan for the car? The last holiday still not paid off? The furniture? Before you think about where the remaining money will be invested at the best is, first of all: Get rid of debt! Because usually you can even earn money with the best equipment is not as much as you need to pay for their loans to interest rates.
Money or property values ??- what is worthwhile and when?
If it were not so, the bank would invest in the financial markets themselves, instead of giving them a loan. Another reason for interest, dividends and capital gains tax you have to. Lending rates, however, you usually pay out of taxed income. This means that you must not only be smarter than the banks and professional investors looking for lucrative investments, too permanently. You must also make up the taxes. This is a game that you can not ultimately win. Therefore there is a relatively simple rule: Before you start thinking about the investment, you should make sure that you reduce the debt to a minimum.
Particularly dangerous - especially expensive because - are those forms of debt, facing no stable value asset. An overdraft facility for the checking account. Or a minus on the credit card of the last shopping trip, installment loans or leases.
Much less expensive - and in some cases quite reasonable - however, are loans that take you to buy a house or apartment. An object of value, therefore, retains the careful selection and with a little luck, its value or even increases.
Then there are forms of debt that we do not perceive as such. A lease is for example no more than a liability. Because you are indeed one with the contract, the obligation to pay the rent money every month. A mortgage can also be quite useful if the alternative is an expensive form of debt this: the lease.
Even a car you have leased, is nothing other than a loan. You pay and pay and when the contract expires, the car still belongs to them not once - unless you pay again and buy the vehicle. Such a design may, in exceptional cases be tax makes sense, for example if you have your own business or are self-employed. In general, however, a leasing contract is a lump on the leg.
Almost every insurance works similarly. With the completion of the policy, you commit to a regular payment - that's one reason why I recommend that a minimum amount of insurance.
A particularly bizarre example is a so-called deposit insurance. Never heard of it? Now, while you complete an insurance policy that serves their landlord as security for a deposit and replacement. Costs only five percent of the bail amount annually. Plus of course a super low one-time service fee. It's worth it for those who earn year after year with surely more than ten percent return on their investments. But the very such insurance will not need to.
YUBTABSQKH6V
But one of the most important tips when it comes to their money, you rarely hear:
Do you have a mortgage on the house? A loan for the car? The last holiday still not paid off? The furniture? Before you think about where the remaining money will be invested at the best is, first of all: Get rid of debt! Because usually you can even earn money with the best equipment is not as much as you need to pay for their loans to interest rates.
Money or property values ??- what is worthwhile and when?
If it were not so, the bank would invest in the financial markets themselves, instead of giving them a loan. Another reason for interest, dividends and capital gains tax you have to. Lending rates, however, you usually pay out of taxed income. This means that you must not only be smarter than the banks and professional investors looking for lucrative investments, too permanently. You must also make up the taxes. This is a game that you can not ultimately win. Therefore there is a relatively simple rule: Before you start thinking about the investment, you should make sure that you reduce the debt to a minimum.
Particularly dangerous - especially expensive because - are those forms of debt, facing no stable value asset. An overdraft facility for the checking account. Or a minus on the credit card of the last shopping trip, installment loans or leases.
Much less expensive - and in some cases quite reasonable - however, are loans that take you to buy a house or apartment. An object of value, therefore, retains the careful selection and with a little luck, its value or even increases.
Then there are forms of debt that we do not perceive as such. A lease is for example no more than a liability. Because you are indeed one with the contract, the obligation to pay the rent money every month. A mortgage can also be quite useful if the alternative is an expensive form of debt this: the lease.
Even a car you have leased, is nothing other than a loan. You pay and pay and when the contract expires, the car still belongs to them not once - unless you pay again and buy the vehicle. Such a design may, in exceptional cases be tax makes sense, for example if you have your own business or are self-employed. In general, however, a leasing contract is a lump on the leg.
Almost every insurance works similarly. With the completion of the policy, you commit to a regular payment - that's one reason why I recommend that a minimum amount of insurance.
A particularly bizarre example is a so-called deposit insurance. Never heard of it? Now, while you complete an insurance policy that serves their landlord as security for a deposit and replacement. Costs only five percent of the bail amount annually. Plus of course a super low one-time service fee. It's worth it for those who earn year after year with surely more than ten percent return on their investments. But the very such insurance will not need to.
YUBTABSQKH6V
