Author: Complete Controller

If you are used to living on only one salary and have never had your own business, then the field of investment probably seems complicated and mysterious to you. But you can learn everything! There are a few simple rules that novice investors should know in order not to be disappointed at first. In terms of risk and expected return, many financial instruments differ. We’ve compiled a list of ten assets that can generate a monthly profit. They’re simple to run, don’t demand much money, and maybe done by even novice newbies.

Decide on the amount of investment

Starting capital – what should it be? Theoretically, you can begin your investment activity with any amount. For example, buy shares for $1.5 thousand. But such investments will not bring any tangible profit. It is recommended to have at least $15 to $25 thousand —naturally, the larger your investment, the higher your passive income. Bonds have a distinct edge over equities regarding price stability and predictability. It indicates that this financial instrument carries a lower risk profile. When we compare it to bank deposits, we can see that it is more profitable.

Risk and return are directly related

The immutable rule of the exchange, and indeed of business in general, is the more you risk, the higher the profitability. That indicates that the most appealing offers can either enrich or deplete your assets. As a result, you must consider if you have the financial means to accept such risks and whether your budget can survive such losses. It’s worth mentioning that keeping a trading account is a paid service that comes with a commission. You’ll also have to pay for withdrawals, conversions, and depository services, among other things. In addition, the state requires that gains from stock be taxed.

Invest only in areas in which you are well versed

A realtor understands real estate, not agriculture or heavy industry. Therefore, it is more expedient for him to deal with residential or commercial real estate. It combines an investment tool and life insurance that protects the family’s financial well-being. Most often, it is equal to the number of contributions paid. If this does not happen, then at the end of the contract, the client receives the paid contributions and the profitability earned by the chosen investment strategy.

Make deposits regularly

It will not be enough to invest only once. Profits must be reinvested, and then the financial instrument will eventually grow into compound interest. In this way, even a modest start-up capital will turn into an excellent passive income. A bank deposit will immediately come to mind if you think about where you can profitably invest money. Indeed, this is the most popular type of investment. In addition to traditional deposits, banks also offer savings accounts for specific purposes. They are convenient in that money can be withdrawn at any time and, at the same time, not lost on the interest rate. But on such accounts, minimal interest is charged, usually 4% to 7% per annum. Given inflation, these percentages become meaningless; they help, at best, to save their funds and not to increase them.

Diversify your cash

Please send them to different assets. Ideally, an investment portfolio should contain equal shares of real estate, bonds, and stocks. Investing in only one financial instrument is too risky. It is well said in the famous English proverb: “Do not keep all your eggs in one box.” You can try to invest money in stocks – securities traded on the stock exchange. By law, an individual must first open a brokerage account. It is through him that the management of shares is carried out. Then you can earn income in the form of dividends (income from shares will be fixed, and the meeting of shareholders determines its amount, and dividends are paid once a quarter, half a year, or a year). You can earn income by buying and selling shares (since stock prices fluctuate, you can seize the moment and buy them at an affordable price and then sell them at a high price – this is the investor’s profit).

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

According to Stanford University’s Carol Dweck, people develop a growth mindset when working hard and learning new skills. While intellect is advantageous, it does not ensure that corporate leaders would adopt growth personality traits.

A growth mentality necessitates taking calculated risks and having a strong desire to achieve and expand in business. People must use their intellects to learn new systems, embrace change, and overcome their fear of failure.

The assumption that a person’s mental power and talents are fixed, on the other hand, is known as a fixed mindset. People who grow at a fixed rate excel because they are innately more intelligent, motivated, or capable.

The attributes of a successful businessman

Business expertise

A successful businessperson must be well-versed in his field, and they must clearly articulate the organization’s aims and objectives. He must have a thorough understanding of all the different functional domains. Knowledge of business, finance, marketing, and commercial law must be supplemented by knowledge of business, finance, marketing, and commercial law. To handle complicated business problems, knowledge in all these disciplines is required.

Positive Personality

Having a pleasant personality is usually a plus. A businessperson’s nature encompasses a variety of attributes and talents that are important for success. Marketers must be able to impress others and elicit complete cooperation from those around them. He must treat his employees and customers with respect. Others are more likely to do business with someone benevolent. Instead, rudeness and irritability are avoided.

Cooperate

A businessperson must deal with a variety of complicated challenges. He must be adaptable to various individuals and situations. To address his difficulties, he will need to enlist the help of a significant number of people. It would help if you relied on people in today’s corporate world; businesspeople must be able to work with others and acquire their cooperation.

Brave

The Company has a lot of challenges that we must deal with. Different parties’ requirements can sometimes conflict with one another. Consumers, employees, and governments all want firms to focus on their needs. He must strike a balance between competing interests. A businessman’s boldness and foresight will aid him in making critical judgments. He should not feel helpless in the face of adversity. Nowadays, running a business is a difficult task. Only those who know how to face challenges with a grin will be successful.

A businessman’s initiative and decision-making power are tested daily. He must also make difficult choices. He must be capable of making timely decisions. He must channel the team’s energies toward the Company’s objectives. He must take the initiative in dealing with various issues and view them as challenges.

Friendly attitude toward staff and customers

“Customer Satisfaction” is crucial to the success of any company. He should endeavor to learn his consumers’ preferences and dislikes to keep them pleased. He should also try to comprehend the employees’ issues and push them to work harder. He will gain the Company’s favor by maintaining friendly ties with staff and customers.

Honesty

One of the most critical attributes a businessperson should possess is honesty. He must be truthful to others. Customers will not stay with a merchant that sells things based on false promises or advertising for long. On the other side, he will be able to build a solid reputation for his items if he is honest with his customers.

Duty

A businessman must be accountable for his staff’ diverse activities. He has all power and responsibility as a leader. This quality will instill confidence in employees, allowing them to take on problems with greater boldness. At the time of tracking, subordinates should not be disappointed.

Discipline

Discipline is an essential aspect of a successful businessperson’s personality, and he must pay his employees in advance. He must adhere to the guidelines of the letter. First and foremost, he must be disciplined to expect others to be disciplined. Discipline is necessary for the operation and management of any firm.

Adaptability

Circumstances are constantly changing. A businessperson must be able to adjust to changing circumstances. It needs to pass a few tests. He must not lose hope and must be able to adapt to his new surroundings. Businesses cannot function in a static environment; commercial operations have undergone various modifications. People in business’s dynamism is required to develop the business world. As a result, an intelligent businessperson must be able to adapt to changing circumstances.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Business people may often find it challenging to check or control financial transactions. A list of incoming or outgoing transaction records is undoubtedly necessary for the smooth running of the business.

Failure to control and check credit transactions will result in losses you cannot anticipate in advance.

Therefore, to overcome this, we will discuss some essential tips on controlling outgoing transactions (credits) in the internal business operations.

Record all sales and purchase transactions

If you make a sale and purchase transaction, make sure and collect all evidence of the transaction, which can be recorded in the form of notes, struck, receipts, receipts, and so on. Try not to let anything be lost because if one is missing, it will make it difficult for you to make calculations later; if everything has been collected, you can complete a debit transaction and a credit transaction.

If everything has been collected, you can start grouping transactions, whichever is a debit or credit transaction.

Journalize transactions

If you are in which class the debit and credit transactions are, make a transaction journal. You will know what dealings you have done, so it is better if every time you make a transaction, make a recording journal, so you don’t forget. Still, if you don’t have time to record it, you can make it at the end of the week if possible, not more than one week, for recording a good journal has the date, account, debit, and credit values, if possible, add the transaction number and transaction description.

Separating journal contents into ledgers

Unlike the journal form, the general ledger will be grouped based on the type of transaction. For example, the cash account will contain all transactions related to your cash, then the accounts the receivable account will have transactions of your receivables. Therefore, you will form many tables to separate each commerce class and be careful in transferring from the general ledger journal to avoid transactions left behind.

The balance sheet is one element of the financial statement that explicitly reports the description and value of the shareholders’ assets, liabilities, and capital in a certain period.

The balance sheet report aims to determine whether the debit and credit values are balanced.

Pay attention to the balance sheet

The balance sheet is an element of the financial statements that report on the assets, liabilities, and shareholder capital for a certain period. The balance report determines whether the debit and credit values are balanced. If the journals and ledgers have been made correctly, you must balance the numbers on the debits and credits. Otherwise, there is a possibility that transactions have not been recorded or are wrong in the trade—account registrar.

Making financial reporting

Now is the time to make a financial report after you have done everything, from recording all transactions, making journals, transferring to the general ledger, and paying attention to the balance sheet. This report serves to see all the transaction activities that you do. It is helpful to see whether your business is experiencing a profit or loss. From this, you can think about what you should do for your next business.

If necessary, you can use accounting software such as Zahir Accounting, a practical application to help your business needs and prepare your business financial statements. You only need to input all types of existing transactions, and the software will process them later. It is more practical and saves you time preparing financial reports for your business. It may be a little difficult for those who are just starting to use this method, but if you do it every time, you will get used to making books of account for the business you run.

Bookkeeping and reporting are essential for running a business because if you cannot control the debits and credits of the company you are running, it will be fatal.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Big business mistakes: bookkeeping and reporting delay

The financial tracking of a firm is an area that is sometimes disregarded. You can purchase high-quality accounting software for a monthly or yearly price. However, if you do not use the system effectively, it will be ineffective.

Data input and frantic work naturally take a back seat when dealing with product management and immediate customer support needs. Because you only have so many hours in the day, you will draw your attention to essential chores. The most typical reason these chores are postponed is that other obligations take up a lot of time.

Keeping up with these crucial activities, on the other hand, is a huge error! Obtaining financial tracking statements may cause future problems. You won’t be going to make an informed decision for your business until you have complete information on its financial situation.

Starting: Regaining Control of Accounting Systems

You can spend hours going over records and projects, but your progress will be limited until you leverage the expertise of a professional accountant. You won’t be able to properly install sound systems if you don’t have accounting experience.

Why not hire someone who knows what they’re doing instead of reinventing the wheel? Their knowledge can help you transform your small business’s system. It’s better to use a tried-and-true accounting system than to try to create one from scratch.

So, to begin, hire an accounting staff to assist you in running your organization. We specialize in accounting services for small businesses at Easier Accounting. We’ve worked with various clients and have direct knowledge of what works. This way, we can provide you with the most appropriate advice on how to get your business back on track.

Accountants, both in-house and outsourced

Is it more reasonable to hire staff or outsource accounting services now that you need someone to assist you? You can hire an employee if you’re new to outsourcing based on your experience. You should be conscious of the financial strain a full-time employee may be under. Accounting outsourcing might help you save money by using the background of your new workforce.

Most of the accounting software is hosted in the cloud. As a result, you are no longer bound by geography. You may collaborate with accounting teams globally, regardless of where your company is based. You could choose the group of people working best for your firm if you don’t need back-office help.

Put in the effort and resources necessary to get back on track

After you’ve hired an outsourced accounting team, you’ll need to set aside some time to give the information your company requires. Your accountant will request information about your bank accounts, credit cards, transactions, and other financial matters. This data needs to be arranged into a system, something your new accountant won’t be able to achieve without your assistance.

So, make sure you take the time to gather the information needed. You may focus on other obligations inside the firm after having the details down.

Make your company’s finances a top priority

Bookkeeping and bookkeeping should be a primary focus for any small business in the future. If you don’t prioritize these duties, you’ll quickly fall behind and end up in the same situation.

Most business owners are overworked and find it challenging to prioritize financial tracking independently. As a result, the best answer is to give continuing accounting and bookkeeping services that will keep you informed about current events. These experts will keep you updated on correct financial information without interfering with your daily routine.

Accounting services can help you grow your business

You may use the skills of an experienced team of accountants to clean up your ledgers and ensure continued service and grow your company’s future prosperity. You’ll see how important it is to have consistent accounting management to make better financial decisions for your organization.

Financial forecasts are worth their weight in gold. You can help your business expand by moving from a “reactive” to an “active” accounting approach by staying ahead of the frantic accounting duties. Dirty literature might make you feel like you’re continuously attempting to rave a raging fire. On the other hand, an organized accounting system will assist you in making the future. Once you’ve got the existing financial issues straightened out, you can focus on driving your firm ahead.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

It’s important to set up a general framework before developing diversity strategies and specific plans for different situations.

The way indirect factors are allocated in a company should be practical and purposeful. If you accurately account for the direct costs of a specific product or service in the accounting system, you can figure out the real cost of running the business.

On the other hand, overhead costs are extra expenses not directly linked to making or providing specific goods or services. These include organizational and production management expenses, which need to be carefully distributed based on chosen methods.

Legislative Definition of Overhead

The idea of “overhead costs” isn’t specifically defined in the rules for accounting. This term is more about management accounting than regular accounting. It’s related to estimating the costs of building, renovation, and maintenance of construction facilities, as well as work to maintain cultural heritage sites. It’s not officially approved by law but comes from cost management practices.

What Is Included in The Overhead?

Each organization independently determines which expenses cannot be directly attributed to the cost of production but are incurred during the production of goods or services.

Typically, overhead costs include salaries for administrative, managerial, and general production personnel, insurance premiums for the Pension Fund, depreciation of fixed assets not directly used in production, maintenance and repair costs for such assets, and rent for non-production facilities like offices or general production premises.

Overhead Allocation

As mentioned earlier, overhead costs cannot be directly assigned to a specific product, project, or service. Therefore, they need to be allocated to the cost of goods sold each month (or at the end of another designated period) using a reasonable allocation method laid out in the accounting policy.

So, you can allocate overhead costs to the cost price in proportion to the:

1. Salary of production personnel.
2. Actual cost of raw materials and materials used in production.
3. Standard cost of products (works, services).
4. Proceeds from selling a specific type of product (work, service).
5. Sales volume (in quantitative terms), etc.

It’s imperative to figure out how to distribute costs and tie them to the main factor in making products or providing services. For example, if the most considerable cost of doing work is paying employees, then it makes sense to factor in overhead costs based on their salaries.

If each product brings in different profits and sales depending on the type of product, it might be better to allocate overhead costs based on the revenue from each product. This way, you get a more accurate idea of how much profit each product is making.

It’s easy to work out how much you make from direct costs, but then you need to figure out the overall efficiency of the whole operation. This leads to the question of how to divide up overhead costs properly. There might not be one right answer to this, but there are methods for doing it. It’s essential to understand why you’re doing it before you start.

Each management report should help make decisions. These steps will make the company more efficient and improve its financial position. If dividing up the costs makes decision-making more manageable and helps the company save money without causing any problems, then it definitely makes sense.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

In today’s fast-paced world, where the hustle culture is glorified and the lines between work and personal life are increasingly blurred, the importance of self-care has never been more critical—especially for entrepreneurs.

Entrepreneurs, by nature, are known to wear multiple hats, juggling the myriad responsibilities of their business while trying to maintain a semblance of personal life. This balancing act, though admirable, can take a significant toll on one’s physical, emotional, and mental health if not managed properly. Thus, embracing self-care is not just a luxury but a necessity for entrepreneurs aiming for long-term success and well-being.

What is Self-Care?

Firstly, it’s essential to understand that self-care encompasses a broad spectrum of activities and practices aimed at self-care. These can range from ensuring adequate sleep, maintaining a healthy diet, and exercising to setting boundaries and seeking mental health support when needed.

Neglecting these aspects can lead to burnout, decreased productivity, and even serious health issues for entrepreneurs, who often find themselves caught in the never-ending cycle of business operations.

The Findings

The findings are quite concerning. According to a comprehensive study conducted by Michael Freeman, a clinical professor at the University of California, San Francisco, it was revealed that entrepreneurs are 50% more likely to report experiencing a mental health condition compared to the general population.

The study also identified specific mental health conditions that are more prevalent among entrepreneurs, including major depression, attention-deficit hyperactivity disorder (ADHD), substance use disorders, and bipolar diagnoses. This underscores the critical need for tailored mental health support and resources to be integrated into the entrepreneurial community, as well as the importance of promoting self-care practices as a fundamental part of the entrepreneurial lifestyle.

Moreover, the physical toll of entrepreneurship cannot be overlooked. Long hours, chronic stress, and the constant pressure to perform can exacerbate health problems or lead to new ones. A survey by Bank of America found that 88% of small business owners report experiencing stress, with 39% saying their stress levels are high. High stress can lead to a myriad of health issues, including heart disease, obesity, and diabetes.

Incorporating regular physical activity, healthy eating, and adequate rest into one’s routine can mitigate these risks, enhance overall health, and enable entrepreneurs to bring their best selves to their businesses.

Bigger Picture

Beyond the individual, self-care has broader implications for the business itself. Entrepreneurs in good physical and mental health are more likely to make sound decisions, maintain positive relationships with employees and clients, and foster a creative and innovative work environment.

In contrast, the neglect of self-care can lead to impaired judgment, loss of motivation, and strained professional relationships, which can ultimately jeopardize the success of the business.

Understand the Importance

Many successful entrepreneurs have recognized the importance of self-care and shared their routines and practices, highlighting how these contribute to their effectiveness and success.

For instance, Bill Gates is known for his “think weeks,” when he takes a week off twice a year to disconnect, read, and consider his company’s future.

After collapsing from exhaustion and sleep deprivation, Arianna Huffington founded Thrive Global, a company dedicated to combating burnout and promoting wellness.

These examples illustrate how prioritizing self-care can lead to not only personal well-being but also professional growth and success.

Where to Start

To integrate self-care into the entrepreneurial lifestyle, one must start with a mindset shift, recognizing that taking care of oneself is not selfish but essential. Setting realistic goals, delegating tasks, and setting boundaries are critical steps in this process. Additionally, entrepreneurs should make use of tools and resources available to them, such as apps for meditation, fitness, and time management, and seek out communities or networks for support.

Summary

In conclusion, the entrepreneurial journey is as challenging as it is rewarding. In the pursuit of success, it’s easy to overlook the most critical component of the equation—oneself. However, the evidence is clear: neglecting self-care can have dire consequences, both personally and professionally. By prioritizing self-care, entrepreneurs can safeguard their health, foster a positive work environment, and set the stage for sustained success. Ultimately, the greatest investment an entrepreneur can make is in themselves.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Passive investing usually means that the investor devotes a minimum of time to analyzing individual securities and the market situation. Instead, he focuses on determining the asset allocation that suits him—the portfolio’s proportion of stocks, bonds, and other assets—and strives to diversify.

Instead of individual stocks and bonds, passive investors often use exchange-traded funds. This makes it easy to create a diversified portfolio: the funds contain tens and hundreds of stocks and bonds.

Numerous lazy strategies are built on this principle. We have already written about four lazy portfolios and six more strategies for passive investing.

A passive investor will receive a return at the market level in which he invests; that is, he will not be able to overtake it. On the other hand, he will not lag the market. And since markets tend to rise in the long run, the outcome is likely to be good.

At the same time, the investor does not spend much time and effort on portfolio management. This means that he can pay more attention to income growth, save more money, etc. Reaching the goal can be more beneficial than trying to beat the market.

All strategies in the stock market can be divided into speculation and active and passive investments. Private investors often try different approaches until they determine which method brings the best result. I will tell you how the passive investor works.

The passive investor’s strategy is “buy and hold.” This means that he is not trying to overtake the market but is counting on the growth of quotations in the future. At the same time, a passive investor invests money for years or even decades. He makes few transactions and pays small commissions to the broker.

The main instruments of a passive investor are ETFs. These are exchange-traded funds, including index funds. Investing in funds provides several benefits:

1. You cannot study companies’ economic models and not dive into fundamental analysis.
2. It is possible not to follow the daily market situation.
3. A portfolio consisting of stocks or funds is diversified by default.
4. Reduced risk.

Since the passive investor does not have to monitor news and charts or worry about price fluctuations, he rarely makes decisions at purchase.

The most striking example of successful passive investing is Warren Buffett’s famous bet with Protégé Partners in December 2007. Buffett bet he would bet on the S&P 500 and beat an opponent who had bet on active management in five different funds. He made a bet over ten years, and Buffett won: By the end of 2017, the S&P 500 index fund was up 125%, while Protégé Partners managed to earn about 88% during this time, which was the best result of the five funds selected.

Passive investing is suitable for those who set long-term financial goals and are not ready to spend much time on asset management. ETFs on stock and bond indices can show good results in 5-10 years. In this case, you do not have to track the financial performance of companies and select stocks individually.

The following conversation is about setting financial goals.

If you have a portfolio of securities worth more than 3 million rubles, we recommend that you conduct an audit – it’s free. You will receive a professional personal broker opinion based on Argus Research and BCS Global Markets analytics.

Yield

The amount of income from investments is one of the first conditions for choosing one or another investment instrument. A long-term investment is an essential factor in increasing profitability.

Attention! All types of speculation, designed to receive large incomes in the shortest possible time, are taken out of the scope of the review.

The degree of increased initial contribution over a certain period is called the return on investment. It can be expressed as a percentage or in currency. Depending on the way of expression, two types of investment income are distinguished:

percentage (dividend).

Cost

Interest income is expressed in the funds that the issuing company accrues per share.

Reference. The conversion of interest into money shows the dividend value of the share.

Return on cost shows the increase in the value of an asset compared to its original price.

Attention! Ownership of shares provides an opportunity to receive both types of income. The shareholder may receive dividends if provided for by the dividend policy of the issuer or sell shares on the stock exchange. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

In the past, when interest rates peaked at 12% or even 20%, it was a self-written rule to deposit money in the bank. However, when interest rates are at an all-time low, many people are becoming interested in investing their income. This trend has gained momentum during the corona pandemic when reduced consumption has often meant that people had more money left to save. When it has also become technically easier to open an investment savings account yourself, the number of share savers has increased.

Separate The Chaff from The Wheat

It’s necessary to know what applies in the stock market, just as it’s essential to carry a life jacket when going out on the lake. And among stock savers, many myths abound about how the market behaves, which may not all be rooted.

Get Access to The Experts’ Knowledge

We have analyzed statistics from the world’s stock exchanges 50 years back to test whether three joint statements reflect the actual development of the stock exchange during this period. And not everyone passes the test. Nobody can forecast the future, but we feel that history can teach us something. Therefore, we have examined broad global stock indices and made an analysis that shows some of the collective knowledge that professional investors have.

Time

The first statement is that time works for you regarding stock investments. The longer the investment horizon you have, the better your odds of getting a positive return, even during periods of uncertainty and even crises. It is true if you have invested widely in global equities. Our analyzes show that the longer you keep your holdings, the greater the probability of a positive return. We also usually recommend that you have an investment horizon of at least three years to reduce the risk of needing your invested money just during a stock market decline.

All Or Nothing

The second statement says that if you are going to invest a large sum of money, then it is better to invest a little over time instead of all your capital at once. The risk is so significant that the stock market collapses when you invest. It is fake. Historically, the stock market has been more likely to go up than down. The market needs to go down during the same period as you invest a little at a time if it is to pay to do so. Otherwise, it would have been better to support everything at once. The probability that you can time a downturn while investing a little at a time is relatively low. But if the alternative is to have the money uninvested in an account in the meantime because you are worried about a downturn, can it be better to invest a little at a time because it feels safer? The risk indeed decreases when you spread your investments over time, which works well with monthly savings linked to your salary, and it may be better to invest a little at a time than not at all. But our main philosophy is to find the right, individual level of risk by putting together a mixed portfolio and thinking long-term, rather than spreading stock savings over time, which the historical statistics confirm.

Conclusion

Today, there is a record amount of money in bank accounts, and we believe that a large part of this money is long-term savings that have not been invested. Unfortunately, this money is there without any return as the big banks do not give any interest on the account. We believe instead in investing this money against the stock market. But essential to keep in mind: do not make decisions based on emotions; only trade with long-term money and feel free to invest your money in installments. Not even professional investors with excellent knowledge and good data can know when a downturn will begin or end. And historically, there has been no winning strategy to wait for a stock market crash.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

When you spend time planning, there will be more time to enjoy your free time and relax. For many, spending increases during the holidays, so it may pay to make a separate budget for the summer months. It also pays to think about how you finance your summer. Remember that what is produced on credit must also be repaid with interest and service fees. With the following tips, you build up and keep your holiday budget.

A good tip to start with, which is not directly about traveling cheaply but is still essential, is that you should try to save money for your trip in advance. If you expect to go away in the summer or would like to, you also have something specific to save money. A trip is also enjoyable, so it might be easier to save money for one than for something else.

1. How big is the holiday fund?

Start by charting how much you must move around during the holidays. According to Nordea’s survey, the average holiday budget of Finnish households was 1450 euros in the summer of 2018. It is moderate, and everyone must start with their financial situation. Someone spends more, another less. The main thing is that you do not live on your assets and do not overestimate the available resources, and do not underestimate your expenses.

2. By what means do you finance the holiday?

Some save up for a holiday fund. Someone else receives holiday pay, and a third uses the salary income. If you look at the statistics from last year, 15 percent of Finns planned to finance their summer at least in part with borrowed money. If we do not plan and make a holiday budget, the risk increases that we spend more money than we originally intended, increasing the temptation to take out a loan for the rest of the holiday. Before you choose to pay by credit, it pays to think about how it feels to open the credit card invoice as it dims through the post office on a rainy September day. The day of payment comes sooner or later, and then you also must pay interest and service fees.

3. What do you want to do during the holidays?

Once you know what resources you must move around with, it’s time to think about how you want to spend your money. Generate a checklist of items you wish to perform and a cost estimate for each. When you look at the larger picture, it can be easier to select what appeals to you the most and is most cost-effective. Also, remember that not everything has to be expensive to be enjoyable and soothing. How does it sound with a bike ride to the neighboring town with friends? It will be extra fun if you plan and prepare a lunch bag together to take with you on the trip.

4. Discuss with others what you will spend the holiday with

In situations where several people are involved in the holiday celebration, it can be good to discuss before starting the planning work. What are the expectations of everyone on holiday? What budget do you have to move? There may be people who have different financial conditions in a larger group. To meet others’ expectations, it’s not a good idea to go into debt and fund your portion of the vacation on credit. Dare to say if you feel that the costs are too high.

5. Make a status check in the middle of the holiday

Although it is a holiday, and it can feel not easy to pull out a budget sheet and receipts, it may be appropriate to make a position check. How much have you spent on the money you budgeted for the holiday? And how much do you have available for the end of the holiday? When you do a location check, you avoid exceeding budgets and unpleasant surprises. If you can save a little money every month for fun, you can try to save money that is earmarked for a holiday trip. Of course, how much money you need for the trip depends on what you want to do and where you want to go, so you can adjust how much you spend a little.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A mortgage is a kind of guarantee for paying a loan or financing, for example, in a financial institution, which is usually contracted by an individual or legal entity. It is worth mentioning this guarantee is operationalized through the offer of an asset, which is generally agreed upon between parties through a property. In this way, a type of “insurance” for the creditor is established. Suppose the debtor does not correctly honor its commitments agreed upon when closing the contract, becoming a defaulter. In that case, the creditor can take over the referred mortgaged asset to settle part or even the total amount of this debt.

The mortgage meaning still generates many doubts in people. So, when discussing what a mortgage is, clarifying each peculiarity is essential to understand what it means. You can then offer this property as collateral for the loan to the bank. In this case, notice that the bank’s risk is now much lower. Because, if you become in default, the bank can execute the guarantee through the sale of the property that covers, in excess, the total amount of the loan.

What Do Lenders Usually Focus on When You Apply for A Loan?

Loan providers cling to the 3 C’s, cash, credit, and collateral. Cash means you have enough of it for the down payment and closing costs. Good credit means you have borrowed money in the past and made payments in full. Warranty is the security your home represents for financing. Lenders want to make sure the home you buy is worth enough to cover what you borrow. If the borrower’s financial burden is too significant, there is a risk that he will not be able to repay all his loans and the mortgage regularly. The client must have money left for food, utility bills, taxes, and other obligatory expenses.

Reasons For Rejection

Most often, problems in obtaining a mortgage arise from the owners of a “gray” business, who, at the same time, cannot make an initial payment of 50% of the cost of an apartment. Moreover, as a rule, such difficulties arise with every third client in the elite and business segments: they are afraid to show the bank a lot of documents, thus reducing the risks of relations with the tax authorities. However, income is not why the borrower cannot count on a mortgage. “In general, banks are loyal to such borrowers, offering programs for them on two documents without proof of wages. You can also provide a certificate of income in the form of a bank. It also happens when borrowers overestimate their capabilities – asking for too much credit. In such a situation, the bank may approve a smaller amount based on the analysis of the borrower’s income.

Credit History

The primary record of credit histories provides only information about the bureau of credit histories, in which the credit history is stored, but not the credit history itself. Poor credit history can lead to a mortgage being denied, so it’s good to double-check ahead of time to ensure everything is in line. However, everything is somewhat more complicated: 91% of all banks rely on information from main bureaus. The rest are used only by small banks in the regions; these bureaus can be called small-town ones. A person’s credit history can be in any of these bureaus, one or several at once. To find out where it is, you should use the bank’s central catalog of credit histories.

Dealing With Credit Mistakes

To get a complete picture, you need to check all the bureaus that contain information about a potential borrower. “The fact is that sometimes the data in different databases turns out to be different. These are banal errors, but they can be a reason for refusing a mortgage. For example, some customers regularly paid on their consumer loans. But when his credit history was checked, which was in three bureaus at once, the information turned out to be completely different: according to one of the versions, there were no delays in payments; according to another, the wait was up to 30 days, and in the third case, it varies from 30 to 60 days.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.