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UK Statistics Show More Britons are Now Placing Savings in Passive InvestmentsUK Statistics Show More Britons are Now Placing Savings in Passive Investments

The 2020 UK Savings Statistics revealed that an average UK citizen had saved £6,757, while Adult ISAs fell from a previous £6,466 in (2017-18) to £6,049 (2018-19). The findings also indicated that the average amount placed in investment programs rose from a previous £994 to a current figure of £1,020. Even if minimal, the latter info indicates that UK citizens are now making conscious efforts to improve their personal finance by placing their savings in passive investment programs.

Moreover, the report also showed that the number of Adult ISAs had increased to more than 11 million (2018-19), when compared to the previous 10 million plus in 2017-2018. The UK’s Individual Savings Account (ISA) program for one allows citizens to hold cash, shares, and a mixture of securities by way of unit trusts; whilst earning extra by way of tax-free dividends, capital gains and interest income.

Even more encouraging is that the number of Junior ISAs is also rising, as statistical data indicate that nearly 50,000 additional accounts were opened in 2018-19. Apparently, there is an increased number of British parents who are also investing for the future of their children.

UK Citizens are Overcoming Their Lack of Confidence in Investing Their Money

Financial service providers believe that one of the things that is holding back other Britons from investing their saved money is their level of financial literacy. According to a 2017 survey study commissioned by Bank of Leumi, nine (9) out of ten (10) UK think that they are undereducated when it comes to personal finance, more so when it comes to investing.

Due to this knowledge gap, fintech innovators have made their services more transparent and easier to understand. That way, more consumers will have greater confidence in placing their money in passive investments once they have a better understanding of their options.

One such UK fintech firm that has taken this initiative is True Potential Investor a digital wealth management company based in Newcastle City upon Tyne.

In 2014, the firm collaborated with the Open University to establish the True Potential Center for the Public Understanding of Finance. The goal is to provide public education about savings and investments to help UK adults map out financial plans for a better future. The center’s free personal finance courses have since become very popular among adult Britons looking to improve their financial literacy.

A Quick Glimpse at True Potential Investor

Using a True Potential Investor review published in the Ask Traders website as reference, we learned that this digital investment management company was founded in 2007 by a group of professionals with extensive experience in providing investment management services and developing financial services technology. The company has made it their mission to help UK citizens grow their savings. Doing so will empower the latter to easily meet goals of saving enough funds that will enable them to settle in comfortable retirement in the future.

True Potential Investor (TPI) provides a user-friendly robo-advisor platform with mobile app support. Unlike other providers of fully-automated services, those looking to invest their money with TPI can try out the digital investment services even for a minimum amount of £1. Once an account is set up online, a TPI member can choose any of three types of savings account, namely:

  • Stock & Shares Individual Savings Account (ISA),
  • General Investment Account (GIA)
  • Personal Pension Account.

Based on a TPI member’s investment risk preference, they will further select one of five options deemed as the suitable portfolio management approach for their savings account. The five portfolio options are labeled according to the type of risk involved, namely: Balanced, Cautious, Defensive, Growth and Aggressive.

Simple Ways to Pay Credit Card Debt that WorksSimple Ways to Pay Credit Card Debt that Works

If you are having a hard time paying for your https://www.thepropertybuyingcompany.co.uk/landers/cash-house-buyers due to outstanding balances from your credit card, then now may be the time to rethink of your finances. It is essential to come up with a plan on how to zero it out and start fresh. Luckily, there are strategies and tips that can help you out. It may not work for everyone but it’s enough to give ideas on how to carry out your plan.

Focus on One Debt at a Time

Do you have balance from several credit cards? If yes, then be sure to pay the least minimum among each credit card. Then after, concentrate on paying the total balance on one card. There are actually a couple of ways on how you can do this:

  1. Review the interest rate of your statement of account. By doing so, you’ll figure out which charge among your credit card has the highest interest. Once you do, focus on clearing that out and then move on to the lowest ones.
  2. Pay the credit card that has the smallest balance then take the cash you’re paying for it and use it in paying the one with the next smallest balance.

Pay above the Minimum

As you are reading your card statement, you’ll see there how much is the minimum you should be paying on your credit card. If you opt to pay only for the minimum balance, it is going to take longer in paying off the bill entirely. Unlike if you make a bit of sacrifice in paying more than the minimum required, you’d be paying less in overall interest.

Your credit card company has to chart this to your statement so by that, you could see how it is applied to your bill.

Be Clear on Your Priorities

You have to start categorizing your spending on a monthly basis. To give you an example, figure out how much you are spending on your groceries, housing, leisure, transport and so on. Your credit card statement can be an invaluable tool as well since many issuers are categorizing the spending on the statement.

Once done, figure out areas where you could cut back. After that, take the money you have allocated and use it as additional payment on your outstanding balance.

Patience and Discipline

Indeed, it is difficult to get out of debt. But with a bit of determination and patience and application of some of these tips, you can succeed.

How GDP is Computed?How GDP is Computed?

GDP or Gross Domestic Product is simply the total market or monetary value of all services like private schools debt collection, cleaning companies, contracting etc. and finished goods such as consumer electronics, automobile, textile and more that are produced within the country in a given period. GDP serves as a comprehensive tool for assessing the current economic health of a country.

Despite the fact that GDP is usually computed yearly, sometimes it is calculated every 3 months or per quarter. In United States for instance, the US government is releasing their annual GDP estimate for every fiscal quarter and also, for calendar year. The data presented in the report includes real-time information. In US, it is the Bureau of Economic Analysis or BEA that is tasked to compute the GDP. They do this by utilizing data ascertained via surveys of builders, retailers, manufacturers and also, by reading trade flows.

Biggest Contributor in GDP Calculation

Computing the GDP of a country is encompassing all public and private consumption, investments, government outlays, paid-in construction costs, addition to private inventories, foreign balance of trade and everything in between.

Out of all elements that compose the GDP of a country, foreign balance of trade is the most important. Country’s GDP has the tendency to increase when its overall value of services and goods that domestic producers sell in other countries have exceeded the total value of the foreign services and goods that its domestic consumers are buying.

When such thing happens, the country then have surplus in trade. Now, assuming that what happened is the opposite where the amount that the domestic consumers are spending on foreign products are larger than total sum of the domestic producers can sell to its foreign consumers, then this is referred to as trade deficit. In such cases, the GDP of the country is more likely to drop.

Variations in Calculating GDP

There are many other ways of computing the GDP and some of it are:

Nominal GPD – this is evaluated at the current price of the market either local or international. This is done using the currency market exchange rate to be able to compare the GDP of the country primarily in terms of financial terms.

Purchasing Power Parity – short for PPP and is measured in international dollars. With this method, it is used to adjust the differences both in costs of living and local prices to be able ot make cross-country comparisons of real income, living standards and real output.

How Countries Navigating through National Debt?How Countries Navigating through National Debt?

It is a common scenario among average individuals to apply a loan at accreditloan.com when they run short of money to pay their dues and needs an immediate backup. Things are quite difficult already for an individual. But what about for an entire country? For most of the developing economies, the only possible way for them to keep progress is by issuing sovereign debt. So how countries are dealing with their national debt while also surviving to grow?

Several countries, particularly the developing economies are issuing debt in an effort to raise funds. This is the same to how a business takes a loan in financing new project or how a family may be applying for a mortgage. The only difference in this analogy is the size. Sovereign debt loan will most probably cover billions of dollars while business or personal loans will just be a tiny fraction of this amount.

Understanding Sovereign Debt

Sovereign debt is basically the promise of the government in paying the money it borrowed. It’s the value of bonds that are issued by the country’s government. An obvious difference between sovereign debt as well as government debt is the fact that the letter is being issued in domestic currency while the former is issued using foreign currency. The loan is being guaranteed by the country of issue.

Before going for a sovereign debt of the government, the investors carefully determine the involve risks of the investment. Sometimes, the debt of a country like the US is deemed risk free while debt of developing or emerging countries carries bigger risks.

There are multiple variables that come into play just as:

  • The plan of the government in repaying the debt
  • The possibility of the country to default and;
  • Government stability

At times, this risk analysis is almost the same to how corporate debt is performed. Though when it comes to sovereign debt, the investors may at times left more exposed. Due to the political and economic risks for sovereign debt outweighs the debt from developed countries, the debt is usually given with a rating below the safe AA and AAA status and might be deemed to be lower than the investment grade.

What if the Country Defaulted?

Defaulting on sovereign debt might be a lot complicated than defaulting on corporate debts. This is simply because of the fact that domestic assets can’t be seized in paying the funds back. Instead, the terms of debt is renegotiated, and usually leaving the lender in unfavorable position.

Where to Spend Money During a Pandemic?Where to Spend Money During a Pandemic?

Hoarding phase has finally settled. Now, the realities of social as well as physical distancing and the pandemic that Covid-19 brought are settling in. You may now wonder whether it is still good to buy your “wants” during these times. Perhaps, you are thinking hard if you should push through for a major purchase such as a new car or a new home.

Taking the dive on major purchases throughout this time is still like trying to navigate on uncharted waters. The same is true for financial experts. However as per their expert advice among families who are looking forward to spend their money regardless of the situation will depend on the situation.

Focus on the Essentials First

Does your pay cut off or has unfortunately lost your job? If yes, now may not be the ideal time to worry about the next purchase you should make aside from necessities similar to:

  • Housing
  • Food
  • Utilities

In the event that you are already struggling to stay afloat on a day to day basis meeting these necessities, then making a new purchase of that “want” is probably out of the equation.

On the other hand, if you are blessed to be part of those lucky people who were quick to adjust to a “work from home” setup or was just able to keep their employment, then most probably, your income is still intact.

Regardless, if the economy hampered, rest assured that the ripples could be widespread and delayed. With this in mind, financial experts agree that it is better to take every decision with caution, even though if there’s a Coronavirus relief program.

Say for example that you are in a bad financial shape no matter if the pandemic is to be blamed or not, buying high-priced items like a new car or going on a vacation will never be a smart move.

Revisiting Your Goals

In these times of pandemic, there is a high possibility that you are heavily relying on your credit card while sticking to a hair-tight budget. This makes it the perfect time to make reevaluation of your financial goals.

According to experts, the primary objective among families in such time is preserving flexibility of cash flow no matter whether your finances are impacted or not. Meaning to say, being able to have cash on hand if things go south. Additionally, it may mean to delay some major purchases that you have planned long ago, monitoring your spending and come up with a pandemic budget for essentials and food in short term.

Just in case that all else fails, you may try getting a loan at https://www.southeasttitleloans.com to cover for some expenses.

Economics and Finance are Interchangeably Used but Separate SubjectsEconomics and Finance are Interchangeably Used but Separate Subjects

Even though finance and economics are presented and taught to be individual disciplines on their own, these two are actually influencing, informing and interrelate each other. Investors do care about studies related to these subjects for they can significantly influence the market to certain degree. It is imperative for investors to steer clear on “either/or” arguments about finance and economics. Both have valid applications and thus, important.

A Deeper Look for Better Understanding

Generally speaking, economics’ attention is more on a broader scale like how a market, region or the entire country is performing. Aside from that, economics are focused on public policy whereas in finance, it is centered more on industry-or-company-specific. Finance on the other hand is centered on how investors and companies are evaluating risk and return. If we are going to go back in history, economics are more theoretical while finance is more practical. Yet, the distinction becomes less pronounced for the past two decades.

The truth is, the said disciplines may sound converging in some aspects. Professionals and experts in finance and economics are employed in corporations, financial markets and even the government itself. At some point, there will be a separation but, both are more likely to stay important to investors, markets and economy for the following years.

Finance

If we are going to look at finance on different angles, it describes anything that comprises the financial system and the study of the financial instruments. These elements can include but not limited to the following:

  • Management
  • Creation and study of money
  • Credit
  • Banking
  • Investments and;
  • Liability

Finance may also be divided into 3 categories similar to public finance, corporate finance and personal finance.

Finance usually focused on studying interest rates, prices, cash flow as well as financial markets. On a broader sense, finance has the tendency of focusing around topics which include time value of money, cost of capital, rates of return, quantification of risks and optimal financial structures.

What about Economics?

Economics is more of a social science and it focused on studying the consumption, distribution and production of goods and services; with the focus of explaining how its agent interacts and how itself works. Economics also have two main branches and these are the:

  1. Macroeconomics – it studies how aggregate economy is behaving and often studies inflation, GDP, national income and changes in unemployment.
  2. Microeconomics – this studies the economic tendencies or what is more likely to happen when someone makes certain decisions or when certain factors of production have been changed.

Without strong economics, it can make some individuals be in a downward spiral of losing their finances and forced to contact San Diego bankruptcy lawyers.

Understanding GDP and its Importance to a CountryUnderstanding GDP and its Importance to a Country

In economics, you will constantly hear or read about GDP or the Gross Domestic Product. This is the total market value or monetary value of all finished goods as well as services that is produced within the country’s territory in a given period of time. Here included all businesses regardless of its size and industry such as property management companies Atlanta. This is a broader scope of all the domestic production in a region and it acts as a thorough scorecard of how the economics of a country performs.

A Deeper Look at GDP

Even though GDP is calculated on a yearly basis, it may be calculated as well every quarter. Just as example in the US, the government is releasing an annual estimate of its GDP both every quarter and year. Majority of individual data sets will be given also in real terms. Meaning to say, the data will be adjusted as per price changes and therefore, the net of inflation.

GDP Basics

As mentioned earlier, GDP is the total market and monetary value of all finished services and goods produced for a given time in a country or region. This includes literally everything under its sovereign like:

  • Public and Private Consumption
  • Investments
  • Government Outlays
  • Additions to Private Inventories
  • Paid-in Construction Costs
  • Foreign Balance of Trades

Types of Measurements for GDP

Nominal GDP is basically how raw data is measured. Real GDP takes into consideration how inflation impacts a country and enables comparison of the economic output from the past years. Then GDP per capita is used in measuring GDP per person in national population which is quite useful in comparing GDP data among other countries.

Balance of trade is among the vital components of GDP formula for a country. GDP increased whenever the total value of services and goods that domestic producers make a successful sale to foreigners and it exceeded total value of foreign services and goods that the domestic consumers buy. This is otherwise called as trade surplus. If ever domestic consumers spent more on foreign products than what their domestic producers offer, this is a trade deficit and thus, it decreases the GDP.

Calculating GDP Based on Spending

Expenditure approach is otherwise called as spending approach. It is calculating spending by different groups operating within the economy. This approach could be calculated by applying the formula below:

  • GDP = C + G + I + NX, or Consumption + Government Spending + Investment + Net Exports

Teaching Loan Sharks a LessonTeaching Loan Sharks a Lesson

Thinking of doing business with loan sharks to fill up your financial needs? Well best to consider other financial options available. As much as possible, avoid transacting with them. These lenders are unlicensed and implement high rates of interest. Most cases, they are pressuring and threatening borrowers to frighten them and repay their loans. Given that these lenders aren’t licensed, it is, therefore, safe to say that they are transacting illegally.

Rather than falling to the hands of these businesses, it is preferable to seek financial services offered by https://mycaraccidentcashadvance.com/ wherein you can be certain that they are licensed.

The thing is, there are instances in which loan sharks is the only viable option available. When such time comes, how would you react and transact with these financial institutions? Good thing for you, there are tips that can help you in dealing with them.

Seek Help from a Financial Expert

It is recommended to consult with legal financial experts regardless of what your lending concerns are. When doing so, you are able to steer clear of dealing with loan sharks. At the same time, you will be enlightened with other ways of borrowing money from your loan advisor. Keep in mind that there’s nothing wrong in taking a loan. This is given that you know where you are getting your personal loan and on how you will be managing the money you borrowed.

Is the Lender Legitimate?

Part of your job is to confirm that the lender is legit. Have you recognized that there are many loan sharks who are presenting themselves as a licensed lender? But after performing thorough investigation, you’ll be surprised that they turned out to be illegal.

See to it that the lender is certified. They must secure lending licensed that’s issued by the government. If such information is lacking, then you may consider this is as a red flag. Therefore, it is preferable if you would stop transacting with them right there and then.

Don’t Panic

The very first thing you have to do is to keep your posture. Never let the loan sharks see that you are aware of their efforts of trickery.

Doing this may put you into risks and more problems.

No More Payments!

As you report your predicament to the right authority, it is preferable to stop making payments for your debt. Since these loan sharks are illegally transacting, it only indicates that they’ve got no rights in lending money or receiving payments to their debtors. You have to know your rights and the law being a borrower.