Top Money Mistakes that We Keep Making

Have you set your next 5-year financial goal? A dream home? A bigger car? Freedom from debt?
No matter what your goals are, let us tell you that if you continue believing the common money
myths (as have been mentioned below) then there is every chance of your goals getting frustrated very soon. Some of these myths are a result of misinformation. You might as well be doing everything right with your money but it’s misinformation that may end up impacting your
financial goals. Documented below are few such money myths that you should duly steer clear of.

Myth #1: You end up undervaluing “cash”
That’s because most of them have already forgotten that during the recent economic decline
(2007-2009), people actually suffered significantly because they didn’t have enough cash in
hand. It is always important to keep a substantial amount of money handy. You can accumulate
3-months of your savings as cash. It would be more sagacious if you are actually in a position to
save up to 9-12 months’ of your living expenses. Do remember – contrary to what you may
believe- cash is important!

Myth #2: Each and every debt is bad debt
The reality is – not all debts actually hold you back! You are carrying a high balance on your
credit card. This will end up costing you way more than what you had actually borrowed. True
enough! You might as well have taken a quick loan which you are being unable to pay back!
The situation isn’t desirable either! We still will maintain that not all debts out there actually
hold you back in life. Just think about mortgage loans, student loans and business loans. These
loans are taken out for bigger purposes and they only help you continue moving forward in life.

Myth #3: You have to loan money to your relations
You think that loaning money to your family shows that you actually care. In reality, however,
it’s a gross money mistake because money borrowed by your family members is hardly paid
back. It ruins relationships as well. Financial experts, however, prefer giving money as gift to
your family (if you have got the money in the first place). Never ever think of loaning it.

Myth #4: There is no point in saving small
You are not being able to contribute big to your savings and this is precisely the reason why
there is no point in saving at all! That’s what you think! And, if you have already been acting on
this belief (i.e. you haven’t really saved up anything because you thought that small savings are
not worth it) then you have already committed a major gaffe. Think about a situation where you
start saving as early as 24 or 25. Even a 10% or 12% saving from your paycheck along with your
employer’s contribution to 401 (K) can actually help you save up enough for your retirement!
Can you think of any other major financial mistake which we keep on making without
acknowledging its detrimental impact on our lifestyle or future financial goals?


What is the best way to send money overseas?

The global nature of the world now means that most people have family or friends living overseas. Even if this is a temporary arrangement, such as a child studying abroad for a year, it means that finding a secure way to get money to them is key. The problem for many though is the sheer amount of choice out there when it comes to international money transfer. From bank transfer to e-payment apps and beyond, there are lots of different methods that you could choose.

Which is the best way to send money overseas?

Online money transfer providers

The safest and most secure way to send money abroad is via professional online money transfer companies. These reputable and simple-to-use foreign exchange companies allow you to make international payments with no fuss. To really make the most of this method though, it is vital to conduct a comparison of international money transfer providers. This will mean that you get the best exchange rate to use on the money transfer when you do it.

Why are online money transfer providers so amazing?

If you are new to using these kinds of online solutions to make international payments, then here are a few reasons why they are so popular:


  • Security one major plus point with using this method is the superb security and safety they offer. When you transfer money in this way, you can have full peace of mind that your personal details and cash are safe. The most reputable companies will keep client funds in a segregated account for added safety.


  • Lower fees for virtually all of the FX companies that you can use to send money abroad, the fees you will pay are much lower. This means that it is cheaper for you to send money, and more of what you do send reaches the recipient. Compared to other methods, such as bank transfer or e-payment apps, this is a real bonus.


  • Easy to use transferring money via an international money provider is easy to do and can be done by anyone. As long as you have a PC and an internet connection, you are good to go! Making the transfer is very simple and usually just involves selecting some options from drop-down boxes on-screen.


  • Better exchange rates one of the big reasons that people use online FX companies is that they usually offer better exchange rates than banks or apps. As with the fees, this means that more of the money you send is there when converted into the foreign currency the other end. If you take the time to compare the various transfer providers to find out the best exchange rate on the day, you can really reap the benefits.

Transfer money online to anywhere in the world

If you want the flexibility to safely transfer money to anywhere in the world with the best exchange rates on the day, then online international money transfer providers are the best choice. There are many to choose from now, so you should have no trouble in finding the perfect one to use.



Starting a business when you are in debt

We all know this is the age of the entrepreneur. There are new business startups going live every week, and the digital economy has provided unprecedented opportunities. That’s all positive news, but this could equally be described as the age of easy credit and escalating debt. Credit card debt, student loans, store cards – most of us have a little personal debt. And some of us have a lot. The question is how does personal debt affect your aspirations towards starting up in business on your own? Let’s find out.

What is your starting point?

The fact that you are asking the question at all suggests that you probably have debt that runs to four or five figures – or maybe more. How serious a problem your debt might be for your new business aspirations depends on how much you owe, whether you are currently making the payments OK and how much income and savings you currently have.

In other words, to find out more about the debt management solutions you might need to put in place, you really need to sit down with a professional who does this for a living. They will be able to take you through different options such as refinancing, debt management plans and IVAs.

A business needs money

Whatever people say about low barriers to entry and start up costs being reduced in the digital age, any business still needs some funding to get it off the ground. There are more options open than there have ever been, and your personal debt can be a deciding factor in choosing the most appropriate source.

A business loan from a bank is the most common and simple solution for raising funds. Of course, they will look closely at your personal credit history, and if your credit rating is poor, they will probably show you the door.

There are other fish in the sea – some lenders specialize in dealing with poor credit ratings, as there are many, many people in the same boat. Naturally enough, they take a risk-based approach, meaning that if they are taking a chance on you, they want something back in terms of higher interest rates.

Alternative funding

In many cases, alternative funding options work better when your credit score is less than perfect. These include crowdfunding, peer to peer lending, working with angel investors or even seeking help and backing from family and friends.

The key to making a success of any of these is to treat each option with the same level of professionalism, in terms of creating your business plan and demonstrating why this is a sound investment. Angel investors are no fools, so if you treat every option, even your family, with the same attitude, you can’t go wrong.

Potential stumbling blocks

The other point to keep in mind is any impact that solving your personal finances might have on your ability to launch a business. A debt management plan or even an IVA is fine, for example, but if you opt for a debt relief order or you file for bankruptcy, it will affect your ability to establish or direct a company.

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