Age is one of the biggest determining factors when investing and for each age, some assets can pave the path to success in the markets.
According to experts, young people must take a risk and bet on profitability and when they approach 60 the objective is to protect their assets by sacrificing profits.
From 25 to 35 years old:
At this stage of life, investments should be directed to higher risk products because the young person has a long time to recoup losses if an investment does not go well.
That risk is justified by the possibility of obtaining more profit.
From 35 to 45 years old:
In this range, a 30% investment in fixed income and 70% in variable income is recommended.
This stage is characterized by having large expenses: mortgage, children, car, etc.
And the investment capacity decreases. By assets, mutual funds and pension plans are the most appropriate, along with investment in the stock market.
From 45 to 55 years old:
For this age range, experts propose to increase the fixed income to 45% and reduce the variable to 55%.
In these years, salaries increase so that the ability to save is greater.
And stocks and funds are the most convenient financial products for this age.
Which type of credit involves a set limit based on what a consumer pays upfront?
The most important are Consumer Credits, Commercial Credits, and Mortgage Credits.
Credits are a way of accessing money to meet personal and business goals.
Credit is a loan of money that a financial institution grants to its client, with the commitment that in the future.
The client will repay said loan gradually or in a single payment and with additional interest.
That compensates whoever lends the money, for all the time that they did not have that amount through prepayment.
Among the most common types of credits we find the following:
Consumer Credits: Amount of money granted by the Bank to people for the acquisition of goods or payment of services.
That is normally agreed to be paid in the short or medium-term (1 to 4 years).
Commercial Credits: Amount of money that the Bank grants to companies of different sizes to satisfy the needs of working capital.
It should be noted that it is a trading name, typical of each institution that grants it.
Mortgage Credits: Credit granted by the Bank for the acquisition of a property already built, land, as well as for the construction of houses, offices, and another real estate.
What is likely to happen if a borrower misses a payment?
The failure of the underlying borrowers to make repayments by the terms of a loan will hurt the performance of the Issuer.
The investor’s ability to earn an income is almost entirely dependent on such payments being made in a timely and complete manner.
Default rates are relatively stable and are fully accounted for in consumer loan rates.
Furthermore, the investor can sell any loan at any time at a price equal to its reserve value. Offering the investor an alternative source of income generation.
Why might stores choose to list $5 items for two for $10?
It is simply to encourage customers to buy more than one item.
What is the first step in setting up a budget?
When making a business budget it is necessary to take into account several elements. Such as income and expenses, taxes, travel expenses, among many others. We will talk about them below so do not stop reading.
The list of the monthly income of the company:
The list of monthly fixed expenses as well as the list of variable expenses.
Within these expenses, you have to take into account salaries, payment of services as well as travel expenses.
Defining your cash flow is critical, which you can do by calculating the difference between income and expenses.
Steps for creating a budget:
Prepare a sheet:
it can be from Excel, in which the expenses to be made are classified so that in this way to categorize in what is going to be spent.
It is very important to adequately define priorities and above all manage an emergency or savings fund that allows resources to face unforeseen events.
In this first step, currency changes or other variants that influence the company must be taken into account.
Ideally, this review should be carried out by an expert advisor to help optimize the budget, this person may be in charge of finances within the company.
Define financial goals:
The second step is to define the financial goals of the company and its strategic plan.
By defining the goals, we will be able to budget appropriately and a real objective can be managed.
One goal would be to increase the company’s net income at the close of the fiscal year.
This is something that can be measured and therefore achieved.
Likewise, it is important to analyze the trends in expenses and income from other years.
Considering the real information of the company. When you know the average expense of each category of expenses, you must establish a limit amount for each one.
Performing this work is very useful when looking to prioritize the budget, as it will give you a clearer view of the use of income.
When budgeting, you need to forecast revenue:
You must consider the estimated sales amount and the factors that influence it.
Such as demand, the target market, competition, production capacity, and the average price in the market, as well as the capacity of your current clients.
When making this forecast, you can take into account 3 scenarios that are high, moderate, or low sales.
Keep in mind that what is sought when forecasting sales is to estimate as accurately and as real as possible the sales that you may have.
In such a way that with this information you can make certain decisions that influence the hiring of personnel, in production, in the purchase of inputs, etc.
When making this sales forecast, you can make use of historical data (considering previous sales and the current trend).