Lenders use the FICO score when deciding whether or not to approve you for a loan or new line of credit. There are many factors that affect your credit score.
These include:
When you have a low credit score from owning too much debt or from other factors hurting your credit, it is hard for you to apply for loans or become creditworthy. Here are tips on how you can raise your credit score:
1 Comment
What is a Loan?Money you borrow with interest that you need to pay back. What are Student Loans?A type of loan designed to help students pay for schooling and expenses related to schooling. Two Types of Federal Student Loans
https://studentaid.ed.gov/sa/types/loans#types Tips On How to Pay Off Student Loans Faster
Common Mistakes
How to Avoid a Loan Scam1. Avoid Upfront Payments 2. Be Wary of Aggressive Sales Pitches 3. Don't Give Out Your Personal Info 4. Do Your Research Report being scammed to the CFPB, the Federal Trade Commission (FTC) and your state attorney general's office. ResourcesStudent Loan Refinancing and Consolidation Cheat Sheet
https://studentloanhero.com/student-loan-refinancing-cheat-sheet/?utm_source=automationemail&utm_medium=email&utm_campaign=refi-refiautomation&utm_content=ba-email1 Student Loans 101 https://myfedloan.org/borrowers/student-loans-101/ Is the Government Making Money off of Your Student Loans? http://money.cnn.com/2016/08/04/pf/college/federal-student-loan-profit/index.html?iid=EL Student Loan Basics https://www.discover.com/student-loans/college-planning/loans-101.html Don’t Be Fooled By Student Debt Relief Scams http://money.cnn.com/2016/08/16/pf/college/student-debt-relief-scams/index.html?iid=ELStudent Loan Refinancing and Consolidation Cheat Sheet https://studentloanhero.com/student-loan-refinancing-cheat-sheet/?utm_source=automationemail&utm_medium=email&utm_campaign=refi-refiautomation&utm_content=ba-email1 Student Loans 101 https://myfedloan.org/borrowers/student-loans-101/ Is the Government Making Money off of Your Student Loans? http://money.cnn.com/2016/08/04/pf/college/federal-student-loan-profit/index.html?iid=EL Student Loan Basics https://www.discover.com/student-loans/college-planning/loans-101.html Don’t Be Fooled By Student Debt Relief Scams http://money.cnn.com/2016/08/16/pf/college/student-debt-relief-scams/index.html?iid=EL 1. Don't think- know and act
2. Always be prepared so you have the freedom to act on instinct 3. Don't be motivated by money or anything external 4. Never be satisfied 5. Always be in control 6. Be true to yourself 7. Never let off the pressure 8. Don't be afraid of the consequences of failure 9. Don't compete with others. Make them compete with you 10. Never stop learning 11. Success isn't tough- it only increases the pressure 12. Don't get crushed by success 13. Completely own it when you screw up 14. Let your work speak for itself 15. Always work on your mental strength 16. Confidence is your greatest asset 17. Surround yourself with people who remind you of the future, not the past 18. Let things go, but never forget 19. Have clear goals 20. Respond immediately, rather than analyzing or stalling 21. Choose simplicity over complication 22. Never be jealous or envious of someone else's accomplishments 23. Take the shot every time 24. Don't think and act 10x 25. Don't get caught up in the results of your success. Always remain focused on what got you those results: the work. 26. Set goals that far exceed your current capabilities 27. Make time for recovery and rejuvenation 28. Start before you're ready 29. If you need permission, you probably shouldn't do it 30. Don't make exceptions 1. The ability to distinguish "temporarily out of favor" from "wrong".
2. The willingness to adapt views you wish were permanent. 3. The ability to be comfortable being miserable. 4. The ability to distinguish when analytics vs. psychology is necessary.
Economics has become a religion. It runs the world and it creates wealth for many. Here are seven different types of economic theories: Neoclassicists: Individuals as utility-maximizing algorithms; utility driven transactions. Keynesians: How to prevent recessions from turning into depressions in the short run; a fall in aggregate demand must be reversed through increased investment. Monetarists: Money supply should be the government's sole economic-policy tool and be used to maintain price stability through equilibrium of the money supply. Rational Expectations: Disagrees with Keynesians and Monetarists. People make choices based on rational outlook, available information, and past experiences. Austrian School Libertarians: The workings of the broad economy are the sum 0f smaller individual decisions and actions. Empiricists: Evidence-based; use data. Marxists: The specialization of the labor force coupled with a growing population, pushes wages down, and the value of goods and services does not accurately account for the true cost of labor.
Bonds are great conservative investments that offer lower, but more safe yields. But being more safe does not mean there is no risk. Here are five examples of bond risks: Interest rates and bond prices carry an inverse relationship- As interest rates fall, the price of bonds generally rise and vice versa. Reinvestment risk- Having to reinvest proceeds at a lower rate than the funds were previously earning. Inflation risk- If inflation increases dramatically, investors will see their purchasing power erode and may actually achieve a negative rate of return. Credit/Default risk- If the bonds (certificates of debt) are not repaid, then the investors lose their initial principle. Corporate bonds are not guaranteed by the full faith and credit of the US government. Liquidity risk- Risk that an investor might not be able to sell his corporate bonds quickly due to a thin market.
Making a mistake with your finances can be very dangerous. It could cause you to go into debt, lose money that you can not afford to lose or could put you in a state of misery. It is important to keep your finances safe and secure, and you can do this by learning from other people's mistakes. Here is a list of some pivotal mistakes: 1. Chasing performance 2. Expecting success with a limited time commitment 3. Making important financial decisions without sound counsel 4. Becoming your own financial adviser 5. Not including your spouse 6. Not equipping the next generation Fix these mistakes! Prevent these mistakes from happening! Keep Climbing.
Here at Alchanati Campbell and Associates, we are always in the know of current events and trends in the market & in the economy, and we are always looking for faults that could cause a downturn of the US economy. We are obligated to know these key points because our investing strategy has a strong correlation to the ups-and-downs of the market. On November 5, 2017, we predicted that the market will have a correction due to one of these reasons:
1) President Trump/American Politics/North Korea 2) Federal Reserve raising interest rates too quickly 3) China's economic growth slipping 4) US Productivity growth failing to accelerate 5) Bitcoin imploding 6) Deregulation/Fraud 7) Companies and the overall stock market being overvalued 8) Auto loans defaulting 9) General state of the European Union/Catalonia, Spain/Brexit With this in mind, we are actively tracking the patterns in market data waiting until one of the bearish signals are triggered. Our investing strategy is simple, low risk, and very effective, and we are able to turn profit when the market is at its lows and at its highs. Keep Climbing
Financial independence is reaching a point in your life where your passive income outweighs your expenses. Money is no longer a problem or a stress. Most people believe financial independence is for when you retire and no longer work, but it can happen at any point in your life.
In order to reach financial independence, there are six steps to follow: 1. Cash Flow- Earn more than one source of income and manage your expenses 2. Emergency Fund- Save 3-6+ months' income and prepare for unexpected expenses 3. Debt Management- Consolidate debt and eliminate debt! 4. Proper Protection- Protect against loss of income and protect family assets from risk of loss 5. Build Wealth- Strive to outpace inflation and reduce taxes with tax-advantaged investments 6. Preserve Wealth- Build a family legacy! Everyone wants to be financially independent, but sometimes it is hard to start planning for it. If you want to learn more on how Alchanati & Associates can help you or if you are interested and need help with starting now, contact us now! Keep Climbing Everyone has their own definition of success. My definition of success is the achievement of specific goals adding up to the end goal of personal financial independence. In order to have your "success," you must start habits that will help you obtain it.
Some key habits of financially successful people are: 1. They spend time with other successful people- People with similar values share similar life goals! 2. They accomplish things everyday in order to achieve big future goals- The little things add up! 3. They set their own agenda- Have more control in your personal and professional life! 4. They spend wisely- Time and money! 5. They have multiple sources of income- You can never rely on only one! It is said that it takes 21 days to form a new habit so start now! Everyone uses money, wants money, needs money, works for money, thinks about money, desires money, and we all know money is the way we get the things we need and want. But do you know what money is?
Money is the medium of exchange. Centuries ago, people would barter to obtain the goods and services they needed by trading resources that were abundant to them, but not abundant to others. This terms the concept of transferability. In order to barter fairly, you needed to know how much of your resource would equal the amount of the other resource. Then in the 17th century, commodity money was created; using a type of good that functioned as currency. These goods had to be widely desired, valuable, easily storable, and portable. Gold and other precious metals are examples of this; they are widely used as a traded commodity, and before the 1970s, Gold was used to back paper currency in the US. Fiat Money is another type of money. It is inconvertible paper money made legal tender by the government, and it does not need to be backed by a commodity. Its value is set by supply and demand, people's faith in its worth, and by inflation or purchasing power. How is money measured? Money is measured by calculating three categories: M1, M2, and M3. M1: All physical denominations of coins and currency, demand deposits, and travelers' checkers. M2: All the money found in M1 + all time-related deposits, savings account's deposits, and non-institutional money market funds. M3: All the money found in M2 + all large time deposits, institutional money market funds, short-term repurchase agreements, and larger liquid assets. Adding M1, M2, and M3 together equals a country's money supply. How is money created? Money is created by either the Central Bank printing the bills or by them buying government fixed-income securities in the market. To buy these securities, the Central Bank can either create the money out of thin air or it can lower interest rates and allow banks to extend low-cost loans. This encourages businesses and individuals to borrow and spend more, and this increases the money supply in the economy. Money has changed in form throughout history, but there has always been a medium of exchange and a form of value. Money has many different forms, but it can be used anywhere because it is established and used everywhere. Is Real Estate a good investment?
Investing in real estate has become increasingly popular over the last 50 years. Investing in real estate can be complicated, but very profitable. There are many ways to invest in real estate: Rental Properties is one of the oldest practices. A person will buy a property and rent it out. The landlord is responsible for paying the mortgage, taxes, and maintenance costs, and the tenant is responsible for paying the rent and maintaining the property in accordance to their contract. Ideally, the rent paid should either cover the rental property expenses plus some more as profit or the landlord could choose to charge a rent that covers only the expenses and mortgage, and then make the monthly profit once the mortgage is completely paid off. Real Estate Investment Groups are like small mutual funds for rental properties. A company will buy a set of apartment blocks or condos and then allow investors to buy them through the company. The company takes care of the management in exchange for a percentage of the monthly rent. Real Estate Trading is buying properties with the intention of holding them for a short period of time, often no more than three to four months, and then sell them for a profit. This can also be termed "flipping houses." This technique is based on buying properties that are undervalued or that are in a hot market. Flippers can either buy the properties, wait until the value increases, and then sell for a profit or buy the properties, make improvements, and then sell for a profit. REITs or Real Estate Investment Trusts are created when a corporation uses investors' money to purchase and operate income properties. These are like stocks; they are sold on public exchanges and REITs pay out dividends to it's shareholders just like some stocks. There is no assured profit with real estate investing. There is always the risk of the property going underwater, you defaulting on your mortgage, or one of the tenants causing damages to one of your rental properties. But if you are willing and able to invest in real estate, you should take up the opportunity and reap the benefits of it. |
AuthorMy name is Camden Alchanati and my goal is to teach you how to create a future of financial stability and growth! Archives
June 2020
|