Latest financial crisis is an unpleasant event for global economic activity. However history is full of financial crisis and economic turmoil. The main question in a financial crisis is how to handle our money in such an economic slowdown with prudence, care and effectiveness. In the following lines we present some money ideas.
Buyer’s power is our first concept. Do the words bargains, deals, discounts, offer seem familiar to you? Buyer’s power is the ability a buyer or consumer has in terms of determining the final price of any product or service. Fixed prices are put aside in any financial crisis and the idea of bargain becomes a natural habit. In an era of financial trouble with liquidity constraints where cash is the king any smart business owner will be more than happy if you give a great incentive to pay for cash in exchange of a severe discount. And by cash we do not mean payment via credit card but simply payment with notes. The concept of buyer’s power is often associated only with seasonal offers such as Christmas. This is a mistake simply because you just have to do one thing, which is ask for a discount or bargain-shopping in everyday life from cheap goods to more expensive products. A classical example is the offers that almost all auto-makers are doing. If they can make you a brave discount of a couple of thousands dollars even without asking for it, then don’t you think that at your local mall any store will be willing to save you some money shopping or buy more goods with the same amount of money? Try it and ask for discounts daily. With this practice you will save a few or more money depending on your personal shopping style.
Personal finance is very important especially in modern times where financial needs, styles and habits are changing. The main cause of this recent financial crisis was the broken link between risk management and anticipated or expected return. Inadequate supervising measures caused a domino of economic slowdown in global economies. So an education about personal finance is crucial and could be accompanied with prioritizing needs from absolute necessary to possibly lavish ones. A priority list that has all our income sources and not only our current but also the possible expenses is very practical when a decision on how to spend our limited is reached. The happy even of a child birth in following month could possibly postpone definitely the new car purchase. A conservative approach in spending money is most appropriate in this money and business crisis underlined by the fact that we do not know and cannot guess the duration of the economic slowdown. Loans can be renegotiated with financial institutions as lower interest rates make money cheaper and if you can afford to prepay in advance any business or mortgage loan then a great boost in liquidity constraint can happen. It is now the time to fix your personal finance balance sheet removing troubled assets and placing more efficient money making sources.
Investing in latest days seems like a bad joke to many people. But investing is different than speculation. Most investment opportunities appear in extreme times where fear, anxiety and despair are intense like the last few months. Many stocks have lost a significant percentage of their values and seem real bargains at current levels. But investing simply because cheap is attractive is not enough. Investing is not simple. And often cheap gets cheaper. Instead of investing blindly and speculating on assumptions that a 5 dollar stock that has lost almost 90% of its value must be cheap although it could go to 2 dollars in a matter of weeks or days and then be a really bargain try to educate yourself and read behind the lines, the boring balance sheet and financial reports of companies that have strong cash flow. We mentioned before that cash is king. Same rule applies to stock investing. Companies with solid balance sheet and low or moderate debt with sustainable cash flow will be able to survive the financial restriction. When people prioritize and restructure their spending lifestyle what are safe companies and not safe bets because a bet is mere speculation. Have the odds with your favor. Picking tops or bottoms is very dangerous but defining an investment plan with quality versus quantity orientation and with a time horizon of a couple of years does not seem totally out of date or irrational. Make a detailed research and analysis. One last thought. Companies on front page of magazines may not be a good example of buying prospects because many people will push artificially their stock prices up. And one fundamental investment rule is buy low and sell high. Differentiate yourself from the speculators herd.
Latest financial crisis as it seems is severe and will be present for an unknown time. Best practice to face it is to educate ourselves and think for practical ideas outside the box.
Stavros Georgiadis
http://www.articlesbase.com/personal-finance-articles/financial-crisis-how-to-handle-your-money-in-latest-financial-crisis-676618.html
An international racketeer?
Today i got an email, the content are the following, tell me is she an international racketeer!
Dearest,
Iam by name Jasmine Annabel.
Firstly I thank you for your response to my email; Enlined with my message I sent to you with my pictures, Do not be surprise or get offended for receiving this message from me please, Its just that I have been obliged to lay a mere trust on you due to my situation here in the refugee camp,
Let me first of all reveal my self to you, and I will require the best of your honesty after your knowing about me and whom that I am, I will really like us to have a good relationship inspite of anything because I have this feeling that you are my man and you will not betray me at the end.
ABOUT MY LIFE,
I decided to contact you because of the urgency of my situation here in the refugee camp, I am a single daughter of my step-mother, I am 24 years old I grew up in Liberia my country, I had my college certificate in the year 2000, I admited in the University in 2002 there I did my one year subject in nursing before the political crisis in my country began, Before the crisis My father was killed by some rebels, they accuse my father of coup attempt, and i lost my family during the crisis and so many of my family members our house was burnt down, I lost all my important documents like / international passport / Birth Certificate / University ID card.
I am constrained to contact you because of the maltreatment i am receiving from my step mother. She planned to take away all my late father’s treasury and properties from me since the unexpected death of my beloved Father .
So, I decided to run away to any African country so i had to run to where I am presently seeking asylum under the Private charity organization for the Refugee here in Dakar, Republic of Senegal. I wish to contact you personally for a long term relationship that may lead us to somewhere better if we work well on it.
My father of blessed memory deposited the sum of (US$5, 700, 000.00) (five Million seven Hundred Thousand Dollars) in a financial company with my name as the next of kin. and some other money as family treasure in a security firm in europe However, I shall forward you the contact information of the bank and some documents for your confirmation in your acceptance to assist me for the transfer and investment of the fund.As you will help me in an invsetment, and i will like to complete my studies under you, as i was in my 1st year in the university, when the crisis started.
After the transaction you will arrange for my trip to join you over there in your country for us to share this feelings face to face. But i was told that this will involve some money for charges before the transfer of the fund into any account that we will provide.
We will invest the fund me and you, or if you don’t intend staying with me then It will be my pleasure to compensate you out of the total money for your services and the balance shall be my investment capital. This is the reason why I decided to contact you. Please all communications should be through this email address only, for confidential purposes.
As soon as I receive your positive response showing your interest I will put things into action immediately. In the light of the above, I shall appreciate an urgent message indicating your ability and willingness to handle this relationship and transaction sincerely.
Awaiting your urgent and positive response. Please do keep this only to your self please I begg you not to disclose it to anyone untill i come over , once the fund has been transfered.
Meanwhile the name of the Revrend father that i am using his computer to send this messages to you is Rev Benjamine Samuel, his office Telephone number (00221 76587 39 12) you can call him today and tell him to call me so that you can talk to me please because i want to hear your voice but don’t tell him anything about the money deposited by my late father please, for security reasons.
Awaiting to hear from you soonest!
Yours Forever,
Jasmine Annabel
How ever i want you to stand by me to claim theses money, in a security company and the once in the bank ok!
SCAM…don’t get involved and don’t reply
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first of all, cant you read? it says SPAM written all over it. people who believe stupid stories are scammed A LOT.
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Uh… I get at least a dozen of these every week.
They are scams to get you to give them your bank account number or a credit card number so they can steal you blind.
The tip-off is the fact that it is ANYWHERE outside of the US, and the story is just about always the same… someone is a survivor of some bloody coup, and looking for a safe place to stash a large sum of money and you would get a percentage for helping them.
Don’t bite… just block and delete.
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