Save Money Or Borrow Money


Save Money Or Borrow Money Always select loans that have a high interest rate and tried to get rid of them as soon as possible because of the high interest private loans if they were the same for a long time will cost you a lot in spite of the monthly may not look you in charge of the matter.

The Step 2 Wealth Review and question that arises a lot of times when what have some extra money, you are paying some of your debts or save that money and invest it until you need in the future? It is the same question that will face if you need to buy something, you tend to use your money that hoard it or recourse to borrowing? Know us through the following article for any solutions may be right for you when it comes to a choice between saving or borrowing.


Borrowing or savings?
As a result of the need to meet the needs of ordinary life such as searching for owning a home or buy a car, sheltering individuals to borrow from financial institutions to get the appropriate funds on a reimbursable basis this amount Halal specified period of time, by paying a sum of money to this institution on a monthly basis and in return for interest agreed. There are many types of loans that differ in terms of size of the loan, repayment period, and the interest rate.

For example, consumer loans are where the maturity period of loans small compared to own real estate, while the interest rate on buying your purposes by credit card is too high compared to other types of loans. So before you decide between recourse to borrowing or the use of your savings in the acquisition of your needs, or what you need to do when you have an extra amount of money, you have to know the total cost of each loan, and then compare the returns expected from the private Richard Williams Step 2 Wealth account the process of saving. By way of illustration follow us the following example:

We will assume that you have a local bank savings account worth $ 2,000 and an interest rate equal to 3%, and you’ve earlier borrowing from the same bank an estimated $ 2,000 with an interest rate equal to 20%. With the end of the year will be the cost of the loan granted by the bank Eyak is 400 (0.2 * 2000) dollars while will have you gained from your savings account back up to $ 60 (0.03 * 2000). In other words, you still have to pay the value of $ 340 (400-60) Any difference between the cost of the loan and the yield savings account.

The bottom line is, that if you use the amount set by the savings account to pay your debts to the end of the year provided a total of $340 (the amount that you need to pay the bank Discounted him yield savings account). In general, the cost of borrowing always be higher than the interest rates offered by financial institutions on bank deposits and other savings accounts ratio. This is because banks and other financial institutions that grant loans depends on the Step 2 Wealth profit by granting loans at a higher rate of interest which gives customers the savings accounts interest rate business model.
Practical Tips
– Always select the loans that have a high interest rate and tried to get rid of them as soon as possible because of the high interest private loans if they were the same for a long time will cost you a lot in spite of the monthly Dfoatk may not look you in charge of the matter.

– Always avoid borrowing excessively, sometimes pushes you may want to own a certain thing to go into debt in an exaggerated manner. Although it is almost impossible to avoid borrowing from banks, try as much as possible to give yourself a good time to look for the best option for you with regard to financial institutions. And tried to do calculates the cost of the loan accurately to know the true size of the loan at the end of the maturity period.

– After getting rid of high-interest rate loans, then saving the remaining money in savings accounts, you generate a return similar to bank deposits certificates or other savings accounts, which may vary from state to state, even though the interest rate may not be high, and may not exceed 3% on an annual basis to it Sthamik of inflation and the decline in the value of money over time.

– Be sure to avoid borrowing through a credit to your card (make purchases when they do not have the balance), although the credit card used for the acquisition of consumer purposes not be of high value, however, the interest rate may be too high has sometimes up to 20 % in some countries, so always know the size of the cost of each operation.

– Create a savings urgent situations that may occur from time to time and that is not unexpected expense, you may need a plane ticket to travel, or repair something goes wrong in your home, a small savings special expenses unexpected expense will protect the asylum external borrowing.

– It is very important to have a sound financial condition, that is, you know how to manage your Money and expenses so that you have some extra money for an emergency, because the development of a permanent plan to manage your expenses and Mdackhelk will avoid falling into financial difficulties in the future.

Model Investment Portfolios Examples

Investment Portfolios Examples

Model Investment Portfolios Examples The Tesler APP company raised a variety of choices and systems portfolio of regional and international institutions as well as the management of individual investors and owners of financial solvency.

The company is providing management services for each investment portfolio alone, some of which include investments in parts of the Arab world in general or in specific countries in the region. Includes portfolio management services specific regard to the level of risk as well as the investment objectives determined by each client that, given that the financial portfolio management services covering equity funds and capital protection, as well as compliant investment funds with the provisions of Islamic Sharia funds, balanced funds and index strategies and fixed income. It features a team to provide the best service levels in the region through regular communication with customers in various means of communication, as well as the semi-annual visits, with a review of the most urgent developments on the performance of the investment portfolio and other market developments and risk reports on a monthly basis and quarterly basis.

Investment Portfolios Examples
Investment Portfolios Examples

Governor of stock-based investment the Governor of stock fundamental analysis and evaluation mechanisms absolute strategy in order to maximize return on investment long term by investing in capital markets countries of the Arab world. Investment managers and works to pump investments in shares of listed companies in order to achieve the highest return on investment, according to the levels of absorption of each client risks alone.

Islamic conservative investment strategy aims to achieve long-term returns through capital formation portfolio of equities and fixed income instruments and other securities compliant with the provisions of Islamic Sharia Arab markets. The team pursues a unique strategy in the allocation of investment assets in accordance with the provisions of Islamic Sharia.

Conservative, balanced investment strategy aims to achieve long-term yields, with the employment of capital protection mechanisms to invest in a balanced set of shares of listed companies and fixed income capital markets in the Arab world.

Governor capital protection aims to achieve investment returns exceed the return on bank deposits during the four-year period, with the adoption of mechanisms to protect the capital to invest in tools that vary between deposits and fixed-income bonds and bills and other Arab world. This strategy seeks to achieve pre-defined revenue and related indicators of the stock market in times of economic recovery while ensuring that the initial capital protection during periods of turmoil.

Governor of fixed-income investment strategy aims to achieve long-term capital growth by investing in government fixed income instruments, as well as bills and bonds of listed companies in the Arab world. The investment works to recruit successful mechanisms in the allocation of investment assets the Governor of fixed income to achieve capital growth, according to the levels of potential risk manager.

Governor stock indexes investment strategy aims to outperform the local and regional stock indexes by investing in a variety of shares of listed companies Arab bourses. Featuring conservative investing in listed securities in the region with a review of the contents of the Tesler Investments portfolio on a quarterly basis (every three months) to avoid deviation of the difference between the index’s performance and the performance of the investment portfolio.

4 Tips For Better Financial Situation in 2017

Gateway Perth

4 Tips For Better Financial Situation in 2017 Each of us is subject to different conditions from the others, but you must do this step in order to prepare for unexpected events.

Gateway Perth
Gateway Perth

Funds for emergencies:

Finance your resources are exposed to sudden setback when they get sick or lose your job, and if you do not have the necessary funds for emergencies of this, you can refer to the savings that you saved for your future goals. As for the person who earns a salary, it means starting the process of saving from scratch. Besides, most of us, the loans should be repaid and thus any emergency situation that may lead to a failure to pay, and this could jeopardize your credit history. It is necessary to have available an emergency fund, in order to possess the ability to meet your expenses for a period of between four to six months in case of emergency. In case you do not have enough in the account, calculate the amount of emergency ideal amount that you need, and start saving immediately to reach the desired level.

The achievement of financial stability requires saving four months of income. In the case of families with children, they need to provide six months of income at least.

Pay Yourself First

This basic rule concerning the understanding of a simple equation: Income – Savings = expenses, which means that no matter what your income is, you first need to allocate funds in order to save and then make purchases and optional routines. This method ensures you not to overlook the important contributions of the basic goals in life such as retirement, for example, it can be achieved through systematic planning to invest or automatic transfer to your child’s savings account.


To transfer, for example, that the monthly income of 10,000 dirhams, Based on the way, “Pay yourself first” savings on top of the list comes not at the end. In the sense that you have to resort to automatic deduction of the amount of AED 1500 (15%) of each paycheck to file it in a savings account. You can pay your bills and rent / housing loan and all the other expenses of the remaining amount.

Other helpful tips:

Pay your bills on time to avoid late fees, interest and penalties. Do not forget to check invoices to monitor any error or an increase in the amount deducted.

It’s not about the size of the money earned by even amounts to hoard it.
Good financial plan the advantage of being flexible and subject to change depending on changes in your life and your circumstances. It is necessary to review the monthly budget and make modifications.
Although the financing of university education for your child is one of the most important gifts you can provide for him, but it is one of the most expensive gifts with regret.
Did you know that it is possible that inflation affects the pension income due to increased costs of goods purchased by the lower value of your savings. Put inflation into account when calculating retirement needs.
Early plans for financial freedom will be too late if you’re on the verge of retirement. Think of the income you’ll need in retirement and how to get it.
Four other strategies to help you adjust your debts

1. Get a low interest rate

Ask your bank, which got it on your credit card to reduce the rate of profit or converting high credit card debt rate of profit to another card at lower rates.

2. Assistance loans to pay off debt

Apply for a loan to pay off debt, as long as the rate of profit is lower. Where you can pay off the debt more quickly if this is the rate that you pay less in order to turn your money to the amount borrowed. More importantly, you should pay a single monthly payment only.

3. Improve the debt payment strategy

Then pay with the greatest profit rate debt at the beginning. Perhaps requires a longer time to pay off, but you will be able to save money by snowball strategy. Alternatively, you can pay off your loans smaller first to ensure the disposal of payable bill.

4. Pay more than the minimum

Many people fall into the trap make small payments enter the debt circle. Because of non-payment, increasing balance. In order to avoid this, try to add any bonuses or additional funds on balance, this would reduce the time period for the repayment of debt significantly.