leverage

Jul

2021

Understanding Your Credit Card Statement Part 2

Reading Time: 2 minutes

Credit cards are a good way to build your credit score standing. Banks and other lending institutions use credit scores to assess and evaluate the potential risk of lending you some money. That’s why it is important that you use your credit card wisely. The only way to achieve this is by understanding your credit card statement and how it works. In this second part of the series, let’s focus on the credit limit. Below is a list of additional terms and description in understanding your credit card statement part 2.

Understanding Your Credit Card Statement Part 2

Credit card issuers put credit limits on your credit card for a good reason. The limits are there to benefit both you and the credit card issuer. The amount is based on a computation that it is easy for both parties to manage the credit. Your limits are normally based on your capacity to pay. Being consciously aware of these limits will help you be able to utilize your credit card well.

5. Credit Limit

Your credit limit is the maximum amount that you can borrow on your credit card every cycle. The amount is decided by the credit card issuer based on certain factors such as your monthly income, credit score and account history.

TIP: Keep your credit limit in check. Going over your credit limit will result to hefty penalties and affect your credit rating.

6. Overlimit Amount

Any amount in excess of your credit limit is the overlimit amount. The overlimit amount is subject to penalties. It is also added up to your minimum amount due.

TIP: Avoid the embarrassment of an unapproved or declined transactions by making purchases above your credit limit. In addition, do bear in mind that there are penalties when you go above your credit limit. And besides, going above your credit limit means your credit card usage is already more than your capacity to pay.

7. Available Credit Limit

This is the amount available for you to spend. It is actually your credit limit minus your total amount due less any other pending transactions.

TIP: It is advisable to always have an available credit in your credit card for emergency purposes. In addition, having a lot of available credit limit at any given time is good for your credit score.

8. Cash Advance Limit

The cash advance limit is the maximum amount that you are allowed to withdraw in cash. Some credit cards have the same credit limit and cash advance limit while others set a separate amount for cash advance.

TIP: Never use the cash advance feature of credit card unless you really need to or there is urgency in the situation. Although it is a convenient way to get cash fast, the interest rate for cash advance is much higher compared to personal loans.

First Published in Pinoy Smart Living on 28.06.2019

Feature Photo by Andrea Piacquadio from Pexels

Dec

2020

Can Stock Options Trading Make You Rich?

Reading Time: 2 minutes

If you know what you are doing, yes, stock options trading can make you rich.

But if you are thinking that it is some form of a get rich quick scheme, then you are wrong. Sorry to disappoint you but there is no such thing.

Don’t fall for get rich quick schemes. It takes time and effort to build wealth properly.
– Dave Ramsey

Like any other investment vehicles, stock options trading carries its own degree of risk. When you invest in something, you are always exposing yourself to the uncertainty of the situation. There is always a chance that the result will not turn out to be the way you expect them to be. In fact, if you are not careful, you might end up losing a lot of money trading options.

The good news is that there is actually a way to minimize risk. But first, you must get rid of the get rich quick mindset. Success and wealth does not happen overnight. It takes a lot of time and effort. Once you realized this, then you are now ready to make your investment.

However, going into trading without knowledge is akin to gambling. It is no longer investing.

Without wisdom, gold is quickly lost by those who have it, but with wisdom, gold can be secured by those who have it not.
– George S. Clason

Financial literacy is always the first step in achieving your financial goals. Since stock options trading requires technical knowledge, it helps to have mentors that can teach you about stock options, especially for beginners.

Mentors are people who are experts in that particular field. Stock option trading mentors are seasoned traders. They have deep understanding, knowledge, skills and expertise on the trade. They don’t just make predictions. because they have used proven and tested strategies for years. Moreover, they read company profiles and financial statements, analyze data and study chart patterns. They use algorithmic trading programs and fundamental analysis. Then, they come up with sound and efficient strategies using the knowledge and information that they have.

Yes, you can read and study about stock options trading on your own. But having the guidance of mentors can make your journey towards wealth easier and faster.

Good luck!

Interested in knowing more about stock options trading? Register for a free webinar now.

Feature Image from Pixabay Images.

Jun

2020

Building Wealth and Success Through Leverage

Reading Time: 3 minutes

Many people dream of becoming wealthy. However, the road to wealth and success is long, hard and winding. This is the reason why only a few made it big. Most people gave up along the way. Unknown to many, there is a shorter way to success and that is through leverage. It is possible but very difficult to make it on your own. After all, we are all humans and we all have limitations. But building wealth and success through leverage will allow you to use resources that is beyond what you can offer making the journey a lot easier and faster.

What is Leverage?

The Cambridge dictionary defines leverage as to use something that you already have in order to achieve something new or better.

In short, leverage is using something to achieve something with less effort. Think of it as a lever. A lever is a bar that you use to make your work easier. It allows you to use less force to lift or move objects. Items such as scissors, nail clippers, hammer, staplers, bottle openers, brooms and gym equipments are all examples of levers. They are machines or equipments that you use on a daily basis to make your life easier.

A Lever is used to make things easier.
Image Credit: OpenClipart-Vectors from Pixabay Images

Just as you use leverage to make your life easier on a daily basis, you can also use leverage on your journey towards building wealth and success. Using leverage is the same as working smarter rather than harder.

The hours that ordinary people waste, extraordinary people leverage.
– Robin Sharma

What are the different forms of leverage?

There are many forms of leverage that you can use on your journey to wealth and success. Here are some of them:

1. Financial Leverage (Other People’s Money)

In finance / economics, leverage is defined as to use money to get more money. In short, it is using other people’s money to start a business, buy an asset or finance an investment. Examples are borrowing money from a bank to purchase real estate or looking for an investor to your business.

2. Time Leverage (Other People’s Time)

Did you know that the wealthy thinks that time is more valuable than money? Why? It is is simple you can use time to buy more money but you cannot use money to buy more time. Even if you lose all you money, you can still get it back but with time, you cannot do that. Whether you are rich or poor, successful or struggling, we all have 24 hours in a day, no more no less.

So, stop doing everything on your own. Delegate some of the work to others so that you can focus on doing the important tasks.

3. Talent Leverage (Other People’s Knowledge)

No one is a master in everything. Let’s face it, there are other people who are more talented than you. They have more experienced and have greater skills than you in a particular field. Why not use them to have an organizational advantage? Make them a member of your team and a part of your support group.

4. Network Leverage (Other People’s Connections)

Networking is important in our lives especially if you have a business or you are into sales. However, humans have limitations as far as connections and social relationships are concern. That’s why you need to tap into other people’s network to expand your own.

5. Marketing Leverage (Other People’s Audiences)

If you are a business owner, a blogger or a social media influencer, you know that it is hard to establish a brand especially if you are a start-up. Through marketing leverage, you utilize other people’s audiences through their magazines, newsletters, etc. to communicate your message and build awareness of your product or service.

In short, what matter your goals in life are or what industry you are in, leverage can multiply your efficiency. You can use just one form or you can use all at the same time. The point is, you accelerate your growth through leverage.

Remember, work smarter not harder.

Feature Image by Gerd Altmann from Pixabay Images

Jun

2020

The Wind Beneath Your Wings

Reading Time: 2 minutes

Our lives are always undergoing change. Change always brings with it some stress and discomfort. After all, change entails that we adapt to new things, new people, new situations. It puts us in a place where we have to go out of our comfort zones. Unless we learn to adapt, we will always be uncomfortable with the changes around us.

When things change, the more you resist, the harder it will be for you. It’s because when things around you change; you need to change yourself too in order to adapt. On the other hand, if you want things around you to change; you need to transform yourself first.

There will be times when the wind beneath your wings blows as a hurricane. That is not time for self pity. It is time to be thankful that you learned how to fly.
— Patti Dawn Swanson, Sierra

In order to change, you will need not only your internal motivation but also external resources to help you succeed. You might need to learn a new skill, seek the help of a mentor or coach, read books, take an online course or watch video tutorials to acquire new skills and knowledge. These are important components that will help you soar into your transformation. They are like the wind beneath your wings that will help keep you afloat amidst the storms in your life so you can come out better than you were before.

Imagine change as a wave of ups and downs that you have to go through in life. Most of us will initially change this downward motion. These are the times when we feel down and even directionless. We often feel anxious and full of worries. It’s times like this when we think that our fears are becoming reality. The present seems out of our control and the future looks bleak and even scary.

Change is like a test or a series of tests. Each test you overcome will help you become the person you want to be so you can live the life you want. Instead of resisting change, recognize that it is an opportunity to better yourself and level up your life. When you take the time and effort to allow for your own transformation; you will find that the world is transformed as well.

Feature Image: Original Image by jakov zadro from Pixabay.