Tag Archives: financial goals

Ways to Avoid Lifestyle Inflation

 600x4001

Most people would dream of having a well-paid job and finances to be able to live a better life. Improving your earning potential allows you to stretch your budget on important things. However, more often than not, what happens is that when a person’s income increases so do their lifestyle. This concept is commonly known as lifestyle inflation. It means that when a person’s salary expands, their spending habits become greater, too.

In this article, you are going to learn on how to avoid lifestyle inflation and ensure that you are living within your means and that you are using the added money for significant things. Making plans on how to use the money to ensure financial security is an advantage.

  1. The best way to avoid something is to be conscious about it

As you transition from a phase where you have “enough” money to a period where you earn some “extra,” it gives you the feeling like you deserve to enjoy life for a moment. However, what happens is that such extends until a period where you find yourself struggling with your finances as you were not able to save up for what is essential.

The added amount on your paycheck must not be regarded as “fun” money but rather a means for you to be able to prepare for your future.

  1. The best way to avoid something is to scrutinize it thoroughly

When you receive a raise, you have to understand that you really cannot enjoy the whole amount added to your salary. This is because taxes take a toll on your money. You have to take the time to look into your budget and realize that the extra money does not necessarily mean that you can spend it on expensive items and dine outs.

  1. The best way to avoid something is to control it

If you want to protect the extra money you get from a salary raise, you have to transfer it to another savings account as soon as possible. If you only have a single bank account, it is advisable that you set up another one so you can be able to transfer your extra money into that account. This helps you avoid spending it on unnecessary things.

Another strategy is to set up your account automatically, wherein the excess money can be transferred after every pay period to your savings account without becoming hesitant of what you should do with your money every time.

  1. The best way to avoid something is to have a clear goal in mind

Failing to create clear personal objectives lures you to spending the extra money on items that do not bring you a step closer to your goal. Sit down and think thoroughly about the goals that you wanted to achieve either in a short span of time or for something that is long-term.

You are less inclined to using up the extra money if you stay focused on your goals and how much self-control you need to have in order to definitely achieve them.

Conclusion

It is really tempting to know that you have the extra money in hand after a raise. But with the above-mentioned tips, you now have the choice how are you going to use your money in order to meet both of your short-term and long-term goals.

Alright! If you want to be updated with the latest news about the latest market news and updates, subscribe now! Trade12 is here to answer any question regarding online trading, commodities, stocks, technology, and economy. Sign up for an account at Trade12.com or you can even download the Trade12 app. Available for both iOS and Android devices.

Advertisements

Tips to Put in Mind When Dealing with IPO Stocks

600x4001

A number of people say that buying IPO stocks is an exciting part when investing in the stock market. In order to make better investment decisions, it is important that one reads investing guidelines and know-hows. Analysis and understanding must be applied to better utilize your readings. If you are one of the people who are eyeing on investing in IPO stocks, written here are some tips you can take into consideration.

What is an IPO?

Initial Public Offering or IPO is the manner where the shares or stock of a private company is opened to the public. Usually, this is done by smaller, starting companies that seek to expand their capitals. For some cases, there are large private companies that would like to begin being publicly traded.

What makes IPO exciting?

Buying IPO stocks seem to attract the attention of both traders and investors in the stock market. Traders make the most out of the price rallies that follow after a company’s listing period. On the other hand, it is a chance for investors to be a part of a particular company’s beginnings until it grows massively in the market.

 

What are some of the tips that you can consider when dealing with an IPO stock?

1. Develop a plan.

Knowing your financial goals matters a lot. Yet, as your goals begin to unfold before your very eyes, planning is an integral part. Following a plan helps you to stay on track and recognize your stock market strategy.

It can also help you come up with an educated decision if you should buy such IPO stock or even deciding if you are going to hold it for a short, medium, or long-term period.

2. Do your research about the company.

In today’s social media age, cases of people giving in to herd mentality are increasing. There are people who believed instantly to an advice and then they get hyped afterwards. It is important to be cautious of stock market tips that you follow.

The best thing to do is to research and study the fundamentals of the company which will be out for an IPO. Is it a company looking for operations expansion or one that will use the money to pay enduring debts?

Consider a company that must qualify to any of the following: part of a growing industry, with good earning records, having a dependable management, offer top-quality and unique products and one having a robust balance sheet.

3. Steer clear of first day listing volatility.

Avoid buying shares during the initial days of listing as this period is usually volatile. Basing it from history, IPOs do trade higher than that of their offering price during such stretch.

For short-term traders, they will do their profit-taking activity after several days. The ideal period to buy the IPO stock is after the correction period where the stock has recovered.

Conclusion

When dealing with an IPO stock, a well-informed investor can outpace and perform better than the others. A number of companies go public every month, it is best to apply the following tips mentioned in this post.

Alright! If you want to be updated with the latest news about the latest market news and updates, subscribe now! Trade12 is here to answer any question regarding online trading, commodities, stocks, technology, and economy. Sign up for an account at Trade12.com or you can even download the Trade12 app. Available for both iOS and Android devices.