For many years it was thought that buying real estate was the best way for an ordinary working family to build up their wealth. It is too simplistic to say that people 30 or 40 years ago bought real estate which is now worth many times more than their purchase price. The best way to look at home ownership is to look at what percentage of their income at the time was needed to fund the purchase and the ongoing monthly mortgage costs. Having said that owning a home means no rent. The bottom line is the calculation on owning real estate involves more than simple figures on a piece of paper.

Real Estate

In recent years the recession has called into question whether it is worth taking a risk with investing in real estate, perhaps being overly optimistic on buying something that it is difficult to afford. Recessions occur periodically but in general families can expect the value of their properties to grow. It is a medium to long term exercise to grow an asset and in the situation when many people approaching retirement have such limited funds set aside that asset growth may be needed to provide a comfortable retirement.

Demands on Your Pay Check

The problem that many of the younger working generations face these days is they are struggling to meet their current financial commitments and therefore find it difficult to save the necessary deposit. Those starting out on a career find so many demands on their pay check. Student loans are an obvious problem and graduates who used a credit card to fund their student lifestyle often have expensive card balances to handle. Even being able to pay the monthly minimum that is required stretches finances. If this is your problem then a word of advice; get a cheaper personal loan at a cheaper rate of interest, get rid of that balance by using the urgent loan to pay it off and only use the card in the future when you can afford to pay the month end balance in full.

The point is that you cannot spend your time balancing your debts and save the money you need to get a deposit for real estate. Equally you will struggle to invest for the future anyway and certainly not be able to get the money together to have an emergency fund unless you understand financial management and have the self-discipline to follow a budget.

Those who leave home for a new city to start their careers face the prospect of finding somewhere to live; it will cost money even if it is shared accommodation. Perhaps you are luckier? If you can live at home and your parents understand that you are saving for your own place then your monthly expenditure may be far less than your friends who have significant rent to pay.

Living at Home

In the USA today it seems that an increasing number of people, even up to the age of 35, are living at home rather than moving out. The important thing is that if you have the chance to live at home that you use your money wisely; don’t spend everything you earn on things you don’t need. Devise a saving strategy with a clear idea of what you are aiming for financially.

No one teaches financial management at school and unfortunately some people learn the hard way. Investing in general is an alien concept on those in their 20s, even their 30s because they often have a problem identifying spare money that they can use. Alternatively they think that if they have a specific amount in the bank then they can spend it all before the next pay check comes in.

Budget

Don’t fool yourself into thinking that there is no point in saving because with interest rates so low there is no real growth available. You need to look beyond the very short term. Once you decide to live by a sensible budget you can expect to have a surplus to use for a few things that will potentially help your financial future:

• Saving towards a deposit for real estate.
• Accumulating an emergency fund, ideally a minimum of three months regular expenditure
• Investing so that you have the chance of building up a retirement fund that will provide for comfortable retirement

In many ways these things are interlinked. Unless you understand the importance of planning for the future you have little chance of owning real estate and ultimately building up the assets to provide a comfortable future.

When trading in financial products there are quite a few things which must be kept in mind. First and foremost, understanding the basics of the trading is the most important. if you are into forex trading, then understanding the basics of various currencies is the first starting point. Without this being in place it would not be advisable to get into the market. The same is the case with commodities, stocks and shares. Each one has its own uniqueness and special features which must be taken into account.

There are some basic rules and regulations to trading which must be followed irrespective of the product that is being dealt. Further understanding the psyche behind CFD is something which we must all understand. We will look at 10 such tips which could help our CFD trading from the psychological points of view.

1. Fear

Fear of losing is one of the biggest psychological factors which make many people stay indoors as far as CFD is concerned. They fear the transition from demo account to real money and this should be overcome.

2. Greed

Being greedy is another big psychological attribute which you should control when it comes to trading in CFDs. It could lead to overtrading and getting into the market at the wrong time and should be avoided at all costs. Correcting this psychological attribute is of paramount importance.

3. Stress

Stress is another factor which could lead to wrong decisions being made. Hence when you enter this market you must be in the right frame of mind mentally. Having some problem in the background could create more problems than solutions.

4. Anger

You could have had a bad day in the trading and would be seething inside. When you enter the market the next session of the next day, it would be wrong to carry over the anger forward. This would lead you to desperation and in nine out of ten cases you will end up making mistakes.

5. Joy

It is quite possible that a particular day you could have made a big profit and you could be in a state of euphoria and joy. As a mature CFD investor, you must understand that the each day is new and unique. Hence, it would be wrong to carry forward the euphoric state of mind to the next trading session. This is what reputed service providers like CMC Markets teach their clients.

6. Being Patient

Rome wasn’t built in a day. Hence it is important to understand the virtue of being patient as far as your CFD transactions are concerned. You have to perfect the art of entry and this not happen in a day or two. It could take a few months and you may have to go through many demo sessions. Only after being reasonably sure about the demo sessions should you get into the live scenario. The more patient you are, the more would be the prospect of making money.

7. Learn To Stay Calm And Composed

Being overtly euphoric or getting unnecessarily tensed up should be avoided at all points of time. If you are calm and composed, you will be able to come out with a concrete plan of action for the session. You are less likely to be driven by gut feelings, sentiments and emotions and will trade based on logic and ground realities.

8. Learning To Be Decisive

Another big reason why people end up losing money in CFDs is because they are not as decisive as they should be. If you decide to enter a market your decision should be firm and not wavering. The same is the case when you decide to exit the market.

9. Learn To Trade In Right Sizes

Another psychological barrier is your inability to choose the right size of trading. It should neither be too big nor too small. This comes with knowledge and also with your ability to keep psychological and emotional factors away from such trading decisions.

10. Keep Sentiments Away

At the end of the day there is no denying the fact that you must act based on facts and figures alone and should avoid bringing in sentiments because of obvious reasons.

Hence at the end of the day keeping one’s psychological factors in check and making good use of them could lead to success in CFD trading.

If you are trying to plan for your retirement, want to try your hand at the stock market, or plan to do other important financial planning, having a financial advisor would be in your best interest. A financial advisor will ensure you put your money to the best use. If you have never had a financial advisor and aren’t sure what you should be looking for, know these important tips for hiring a financial advisor.

Consider Pay Structure

Different financial planners work on a different pay structure and you want to make sure you understand what it is and consider it before you hire anyone. Some advisors are commission-based, and that’s something that you want to avoid. When a financial advisor works on commission, that means they’ll make more money if you purchase certain insurance packages or invest in some mutual funds. You don’t want a financial advisor that is constantly pushing certain types of investments and insurance on you just so they can make some more money. You want a financial advisor that will work in only your best interest. Of course, fee-based financial advisors still have their downfall. Typically, this type of advisor earns about 1% of your annual assets. This means the advisor might encourage you to buy an expensive home or property that you don’t particularly need. However, it might be easier for you to pass on a house that you know you don’t need than pass on an insurance package that you don’t quite understand. If you can find an affordable financial planner that charges by the hour, that would probably be in your best interest. They make the same amount of money, even if you opt out of insurance packages or a private island. These planners have the purest motives, and you don’t have to worry about anyone pushing you to buy things you don’t need.

Check Their Background

When you hire a financial planner, don’t forget that they’re working for you, not the other way around. Many people hire services like this and feel like they need to be submissive. You should be interviewing the advisor. Ask if the person has ever been convicted of a crime, ask to see the license, and ask the advisor to write down references that you can call. The person you are hiring is going to have some control over your money, and you need to make sure that it’s someone you can trust. You wouldn’t put your hard-earned money in the hands of a stranger on the street, so you shouldn’t put it in the hands of a stranger behind a desk.

Ask for Recommendations
 
The most simple thing you can do is ask around for recommendations. Asking friends and work colleagues if they recommend anyone is your best bet. If there are people you trust who have been seeing the same financial advisor for years with success, it’s a good indication that it’s an advisor you would want to work with. It’s best to avoid a financial advisor no one knows. It doesn’t mean they won’t be good at the job; but when it comes to your money, it’s better not to take any chances. Financial advisors who work for large, regulated companies tend to come highly recommended, so check out those companies. You can look at the Fisher Investments top 10 RIA here.

Verify Credentials

Just looking at credentials doesn’t prove anything, you need to verify them. The financial advisor should be a certified financial planner (CFP). If certified financial planners get into any trouble, their disciplines become public knowledge. These disciplines can include a suspension, letters of admonition, or even a license revocation. The good thing about this public knowledge is that it’s very easy to find. You can simply go to the website, click on the state, and there are lists of names under each type of discipline. Make sure you look through the list and ensure the financial planner you are looking into isn’t on it. If they are, move on to the next person. You can also verify the certification on the same page. All you have to do is fill out the person’s information and you will know for sure.

Avoid Guarantees

You might find a financial advisor that continues to brag about performance and guarantees you certain returns in investments. There are rarely guarantees in the financial world, so this is a huge red flag. When you interview your financial advisor, pay attention to everything the person is saying. Make sure he or she isn’t promising a market-beating performance a certain return after a certain amount of time. If the person seems overly confident, it would be in your best interest to thank them for their time and walk away.

Hiring a financial advisor is a great way to manage your money. Just make sure you find someone you can trust so your money is in good hands. Follow these tips so you can be confident in your decision.