The Forex market is the most liquid market on the planet, this is just conceivable because of its tendency of trading by means of O.T.C technique and its extensive variety of members over the globe drawing a gigantic measure of money each trading day and in a normal of 4.2 trillion dollars. Forex rates are dependably moving. At the point when traders are new, here and there the moves appear to be puzzling and irregular. Numerous things influence the development of trade rates between nations. One thing that is dependably a hidden variable that is steady is the interest rate of a money. As a rule, it’s viewed as great practice anyplace to pick up interest on your money. Individuals all over put resources into money market funds, and bonds, and a wide range of speculation instruments that offer paid interest as an end-result of the utilization of the money. A huge favourable position of approaching a forex trading account is to use forex trading signals

The interest rate differential works out when you discover a nation that has a low-interest rate to offer. A set up like this is called convey trading. Convey trading is the point at which you pick a cash match that has a money with a high-interest rate, and a cash with a low-interest rate and you hold it for the cash that pays more interest. Utilizing every day rollover, you get paid day by day on the distinction in interest between the two nations. On the off chance that you’ve utilized some use, you can make a decent return versus the capital required to make the exchange. The question is, how do interest rates influence monetary standards? The simple answer is that it makes worldwide financial specialists empty their money into nations so they can get a bit of the arrival. As interest rates go up, interest in that nation’s money goes up. In the event that a nation raises interest rates over an amplified timeframe, this can cause a wide pattern against different monetary forms. Money just keeps on heaping into these monetary standards until there is any sign that the gathering may end soon. The drawback of this way to deal with trading is that it’s extremely chance touchy.

Anything that could influence economies universally can shake an interest rate exchange to the centre. This sort of shake up doesn’t come regularly, yet when it does, it leaves calamity afterward for anybody that isn’t readied. Amid the money related emergency of 2008, high-interest cash matches once in a while moved more than 1000 pips every day as the world economy turned out to be extremely unverifiable. For a considerable length of time after at whatever time any progression of the recuperation looked unstable& better to use a professional trading signal service, comparative littler flip outs would happen. Once in a while a nation will have a high-interest rate however a falling cash. Such a divergence is generally a sign that the measure of interest they are paying isn’t justified regardless of the hazard required. The other thing it can show is that there are signs that rates will be brought down soon.

In any case, I Thought Interest Rates Did Not Move Very Often? While beyond any doubt rates don’t move much, desires on the bearing and slant of rate changes appear to change on seven days to-week premise. A standout amongst the most well-known markets for watching changing interest rate desires are 2-Year Government Debt like the US 2-Yr Treasury like a. As a forex trader, it’s great to take a gander at the full picture. How is the nation getting along financially? Why are they raising or bringing down interest rates? Also, you have to think about the nation that you’re matching the high-interest cash against. This is every one of the a session of connection. Now and again it’s one of the monetary forms in the match that is causing development, and now and then it’s both, so it’s constantly great to consider the full picture. There are constantly numerous components that move a money, however interest is one of the main elements, just taken after by hazard. On the off chance that you can comprehend those two variables when making exchanges, you’ll be okay the length of you don’t try too hard.


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How to Get a Financial Education on the Cheap

Where did you learn most of what you know about finance, money and investing? Since financial literacy is barely taught in most public schools, many people learn about money from their parents, friends or coworkers. But very often the people who teach know very little themselves.

It is important to understand why financial literacy is so important and find reputable and cheap sources to get a financial education.

Why Do You Need to Be Financially Literate?

We deal with money on a daily basis. We work most of our lives earning and saving it so we can someday retire and live off our passive income. But money can work against you just as easily as it can work for you.

Understanding basic financial concepts such as budgeting, living below your means, saving for emergencies and large upcoming expenses, investing and planning for retirement is very important if you want to be financially successful. Once you learn how money works, you will be able to make it work for you, increase your wealth, retire earlier and create a better life for you and your family.

Getting a Cheap Financial Education

Contrary to what you may think, you don’t need to go to an expensive college or university, attend seminars or buy overpriced training programs to learn how to better manage your money and make smarter financial decisions.

Here is what you can do to learn more about personal finance and investing without spending much or any money at all:

  • Read books. Books are an outstanding source of knowledge on any subject, including finance. They usually offer a comprehensive account of a particular topic from start to finish. There is a book on virtually every financial subject.
  • Follow finance blogs. Blogs are very unique sources of financial education, since they offer financial advice from real people with real problems and real solutions. The authors may not be professional financial advisors (although some are), but share how regular people deal with money problems.
  • Watch money-related TV channels. Watching CNBC or Bloomberg TV is probably not your favorite pastime, but there are tons of great television programs that can teach you about many different financial topics, from making your first budget to creating a diversified retirement portfolio.
  • Attend free classes. Many colleges and universities offer free financial classes on a one-time or regular basis. These classes vary in their content and length, but can nevertheless be very helpful. Check with your local schools, colleges or universities to see if there are any that are coming up in your area.

You should never stop learning about finance, as well as all other areas of life. Education opens new doors, possibilities and opportunities. And since most of the above methods are very cheap or free, you have nothing to lose!

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Financial Literacy – A Tool For Wealth Creation

In a few words, “financial literacy” means being knowledgeable about financial matters. Everyday of our lives we deal with money. We make money and we spend it. Financial literacy encompasses making and spending money. Making money and spending it are two different things. This article is concerned towards spending money rightly. Next edition will delve more into making money.

Let me ask a question. Which one is more difficult: making money or spending money? I know you might say making money. If you say making money and spending it any how, you are right but making money and spending it rightly you are wrong. Because of lack of financial knowledge most monies people make are lost or wasted. If you do an investigation on people’s finances you will find out that majority of what people earn goes into expenses. That means that people’s incomes don’t get multiplied (invested).Let me give a simple illustration, suppose you earn N5M annually and at the end of the year you find out you spent the income on: gas, rent, clothing, fuel, etc. All these are expenses and they don’t add towards assets acquisition. The best way to manage your expenses or keep it low is to have a budget. A budget tells you what to spend on and how much to spend; it is a financial guide. Once you have a budget you guard against impulse buying.

In a simple definition assets can be said to be something of monetary value. In Accounting parlance there are two types: Fixed assets and Current assets. In wealth creation parlance there are two types of assets, depreciating assets and Non-Depreciating assets. Non-Depreciating Assets are assets that increase in value. Depreciating assets are assets that decrease in value due to wear and tear or decay. Examples are motor vehicles, furniture, household equipments, clothing, etc. These are items we need for our daily upkeep. These items have various rates of depreciation. From the pack, clothing has the highest rate of depreciation. The clothe you buy today might depreciate up to 70% in the next six months. Household equipment has an average rate of depreciation. Motor Vehicles have a fair rate of depreciation. The mistake most middle-class people do is that they invest a lot of their monies in depreciating assets. Before I continue let me define middle class in Nigerian context. A middle-class woman is one who earns about N2M to about N10M annually. The normal middle-class woman spends money on designer perfumes, designer clothes, sophisticated handsets, jewelleries, etc. These are depreciating assets and their disposal value is low. The plight of the middle-class woman was made worse during the recent banks crisis which was caused by banks CEO’s wasteful and fraudulent practices over the years. Most women left their various bank still owing because they were living on loans. To worsen the matter some of them used their loans for frivolous things. Those that even invested never invested on Non-depreciating assets. At the present most of them are licking their lips over their mistakes. If only they were financially literate they could have been wiser.

The assets that actually make you rich are Non-depreciating assets. Assets like Land, Houses, precious stones, antiques, shares, art work, bonds, etc. The land you buy today might appreciate 300% depending on the town and area. Take Abuja for instance, those who bought land in the nineties had about 1000% return in investment about ten years after. Currently in Abuja places like Kubwa, Mararaba, Karshi, Gwagwalada, Nyanya, Karu, etc are investors delight because of its affordability. Lagos has a sprawling real estate business. Workers are patronizing these real estate firms that sell lands in estates in places like: Awoyaya, Lekki, Ajah, Sango Otta, Mowe, Alagbado, Agbara etc. The beauty of their deals is that they allow installment payments. A plot of land in Alagbado, Agbara, Sango Otta and Mowe goes for about N500,000 upwards. Some of them give a grace of up to four years to pay up. Another interesting thing about them is that these estates have nice neighborhoods and facilities. Some of the facilities you may enjoy while staying in these estates are: Global C of O, Perimeter Fencing with Gate, Shopping Malls, CCTV, Banking Facilities, Street Light on all Roads, Waste Disposal System, International Schools (Nursery, Primary and Secondary), etc.

The importance of acquisition of shares cannot be over emphasized. There are two ways you can buy shares: Public Offer or through Stock Brokers. Over the years shares acquisition has been beneficial to Nigerians. The beauty about shares is that the gains are plethora. After every end of an accounting year of any company you invest in; if they make profit you are likely to get dividends. You might also get bonus shares after the end of the accounting year. Trading of shares is also a means of making money if the price appreciates. Recently share prices dropped globally signaling world wide recession. In Nigeria people lost money in the stock market because of the crash in price. Most recently the All Share Index of the Nigerian Stock Market has increased signaling an improvement in the Stock Market. It is advisable to invest in the Stock Market now, either for the future or for trading.

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Financial Literacy 101

It doesn’t take a genius to understand money. Money is nothing more than a tool, no different than a hammer and nail, or even a computer. It is a means to an end and should never be feared. Money is misunderstood by too many people and rather than being able to harness its power, they end up being enslaved by it. Financial literacy is paramount, especially in today’s economy, which is in tatters. It is terribly unfortunate that this subject is not given much attention in schools, for it is the most important one that impacts all of our lives every single day. For those who want to take control of their finances and break free of the stranglehold that our economic system has on us, the following will help steer you in the right direction:

Get your money to work for you rather than you working for it. The majority of the population is trapped in the vicious cycle of working themselves to death but staying barely ahead of their expenses, if even that. We are plagued by this debt-ridden society created and controlled by ”The Money Masters” of the International Banking Elite. The good news is, there are numerous ways of using this venomous system to your advantage and fairing well. What you need to do is implement strategies that offer you a return on your money with the least effort required. A combination of living within your means (NOT ON CREDIT!) and a solid investment plan in ASSETS will help you break free.

Assets are things you own whereas liabilities are what you owe. Good assets can generate income such as rental properties, rent to own homes, certain businesses, tax lien certificates, precious metals etc… We often think that a house and a car are assets, but financial experts always classify them as liabilities, since they have to be paid every month and don’t normally generate cash-flow on their own. Devote your time to money-generating assets which will be the foundation of your diversified investment portfolio.

Starting your own business is a great way to build lasting wealth. That’s not to say it won’t take a tremendous amount of work, dedication, and sacrifice, so never fall for hype and get rich quick scams because they never work. What does work is having a solid product or service to market whether it be yours or someone else’s and implementing a solid marketing plan. Working for yourself with very little overhead is ideal. Do your research and never gamble.

Your goal is to be a wise entrepreneur, and investor. The average small business takes anywhere from 3-10 years to turn a significant profit from which you will be able to live from so don’t quit your day job! Use your income from your job to acquire assets and grow your enterprise. The great thing about owning your business is that while you are building it (and not yet seeing a profit) you can still take advantage of numerous business-related tax deductions based on things you spend money on anyway such as: mortgage/rent, hydro, heat, home and car insurance, property/school taxes, condo fees, interest on certain loans, phone, internet, gas, car maintenance, restaurant bills, office supplies, furniture, and more. Saving money is just as good as making it!

The problem with people who struggle to grow their money is that they keep on working for somebody else and don’t maximize the earning potential of their money by acquiring the proper assets. Many also don’t start their own small/home business on the side and end up paying a good portion of their yearly salaries away in income tax. Lastly, too many live beyond their means. Exercise restraint and keep things simple and manageable! The majority of hard-working people are toiling away for others and not for themselves. And after all that, they face the terrible realization that they do not have much, or anything at all in some cases to show for all those years.

The solution is to invest in yourself. It just makes sense. Use the rat race, banking, and taxation systems to your advantage. Build your business, and invest in things that will generate cash flow for years to come while putting the least amount you can out of your own pocket. Leverage other people’s money and expertise (banks, renters, other investors, financial advisors, etc…) to grow your portfolio and you will be financially free much sooner than you think. Financial freedom will bring something far greater, personal freedom!

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