It is surprising how many people do not see the point of being financially savvy. It’s always someone else’s responsibility – father, spouse, partner etc. What happens if your life circumstances change and you are suddenly without the person who managed your financial affairs? You will then have to take a crash course in investment education and battle while coping with the loss of your loved one. As a result, it is worth taking charge of your finances right from the start.
In today’s world, 99% of the population has some form of debt. We practice a culture of instant gratification and buy what we want instead of what we need. It does not matter whether we can afford it or not; thereby ending up in a state of over indebtedness as well as adding to the global financial crisis. The reality is that this over indebtedness and financial crisis is not going to change unless we change our spending habits.
The biggest shocker of all is that most college students aren’t just graduating with a degree, but also with massive student loans. For the most part, they hold down part-time jobs while studying which contributes to their living expenses while studying; however, the income from their part-time and summer jobs does not cover the cost of a tertiary education. Consequently, these students start out their working life at a disadvantage by having to pay off bank loans while being paid an entry-level wage.
How do you become financially free?
- The most important point is to admit that you are over-indebted and living beyond your means. This might not seem important, but taking ownership of your behaviour is important as a starting point.
- The next step is to draw up a budget. It’s important to know how much income you have to spend and what your living costs are.
- Paying off debt can be considered a form of investing as bank interest rates on debt are always far higher than interest rates offered on investment accounts. Consequently, it is important to pay off as much of our debt as possible every month.
- Look at investing in moderately aggressive investment schemes. A good example of a moderately aggressive investment is Binary Options Trading.
What is Binary Options Trading?
Binary Options is a form of trading that takes place within the global financial markets. Unlike most traditional trading instruments, trading in Binary Options is easy to understand. You do not buy or sell an asset such as a stock or commodity, you trade on the movement of the value of the underlying asset within a certain period of time. There will only every be two results to every trade. You predict the movement of the value of the underlying asset correctly or incorrectly.
For example, you might choose to trade on the fact that the value of Google shares will move up or down within 30 – 60 seconds. You place a fixed amount, for example $25, to secure your trade. If your prediction is successful, you retain your $25, plus you can earn up to 90% profit on each winning trade. On the other hand, if your prediction is incorrect, you only lose the fixed amount that you secured the trade with.
In order to trade on Binary Options, you need to open a trading account with a reputable broker. There are several reputable brokers but Stern Options are an expert Binary Options trading broker. They offer a wide range of stocks, indices, currencies, commodities for you to trade on, as well as an education centre or trading academy. Stern’s dedicated staff are hand to help you advance from being a beginner trader to being able to make advanced trades. It’s important to work through the documentation that the education centre offers, then move onto Stern’s demo system, before finally moving onto their live trading platform.
In order to survive the modern concrete jungle, it’s vital to take charge of your own finances right from the outset. Part of taking ownership of your financial situation, is to ensure that you avail yourself of any investment education opportunities. In this way, you won’t be left destitute or without any financial means of supporting yourself.