THE ROLE OF BUDGETING IN FINANCES

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Introduction 

Being a graduate of a prestigious university and making a considerable income does not guarantee your financial safety. According to Parkinson’s law of spending, which states that expenses rise to meet income, people’s expenses will always increase proportionally to their income. This law validates the idea that people do not end up poor only because of the absence of money but also because of a lack of financial literacy. 

Financial literacy is the effective knowledge and understanding of using financial products, such as savings accounts, investments, and insurance, and skills, such as budgeting and debt management, to manage money and save individuals from financial unaccountability, fraud, and scams. 

To be financially literate is to have an intricate understanding of how money behaves; by doing so, you have established a life-long profitable relationship with money. Most people don’t get financially trained in college, but thanks to “Effective Business Idea,” you are about to gain the power to control your finances with a free financial education. 

The most fundamental knowledge you must acquire when working towards financial independence is the skill of budgeting. Budgeting plays a vital role in ensuring adequate money inflow and outflow, helping to increase accountability and prudence.  

What is a budget?

A budget is a planned estimate of anticipated income and expenditures for a certain period in the future, and it is created and reevaluated regularly. Everyone, from individuals to families of varying means, as well as governments and corporations, may benefit from developing and sticking to a budget.

Budgeting helps you control your monthly spending, prepare for the unexpected(rainy days), and buy luxury goods and properties without debt. Keeping a budget can be a smooth process; it doesn’t restrict you from buying what you want, but rather, it gives you the freedom to maintain a grip on your finances and a clearer picture of where your money is going.

Introduction to Budgeting

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8 Things to Avoid Spending Money On When Starting Your Catfish Farming Business: Practical Tips for Beginners

Starting a catfish farming business can be exciting and potentially lucrative, but it requires careful planning and smart financial decisions. When I began my own catfish farm, I made several costly mistakes that could have been avoided. In this post, I’ll share what I’ve learned about unnecessary catfish expenses and offer practical tips to help you succeed from the start.

What is insurance? Types of insurance, and why do you need one?

What is insurance? Types of insurance, and why do you need one?

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With a good Insurance policy, the insurance company promises to pay for certain losses, damages, sickness, or deaths in exchange. Insurance is a contract, usually shown by a policy, in which the user agrees to pay a certain fee to an insurance company or the state. It’s a way to protect your finances and handle risks. It protects you from unpredictable losses, damages, or injuries, empowering you to manage risks and control your financial future.

The company responsible for providing insurance is known as an insurance company or, for short, an Insurer. The one seeking to be insured is called a policyholder, which is the person who buys the insurance policy. The policy covers the organisation, person, or product, referred to as the Insured, the entity protected by the insurance policy.

In exchange for this payment, the insurer promises to pay the insured if a loss covered by the policy happens. Even though this loss is not only a financial one, it must be measurable in money. Also, the insurance deal usually involves something in which the covered has an insurable stake, shown by ownership, possession, or a relationship already in place. 

This differentiates insurance from gambling; whatever is being insured must have a direct link with the policyholder. For example, you cannot insure your neighbour’s house or cars because, in the case of damage, you do not have anything to lose in that accident. This financial security is a crucial benefit of insurance, providing reassurance about your financial stability.

Is Trust Wallet a safe place for my Tokens?

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A Brief History of Trust Wallet

Trust Wallet was the brainchild of the visionary Viktor Radchenko, an ingenious Ukrainian investor and founder. His journey began in Ukraine and took a significant turn when he moved to the US in 2011, driven by his ambitious goal of making a global impact. It was in the US that he continued his adventure and eventually founded Trust Wallet. 

After its launch in 2017, it swiftly climbed the ranks to become a top contender in the cryptocurrency utility list. Its initial users were drawn to its unique ability to identify and reveal any ERC-20 token associated with their address. 

As 2018 approached, the founders of this popular cryptocurrency wallet stepped up their game, enhancing its features and addressing the growing concerns of its user base. 

On July 31, 2018, the famous exchange company Binance acquired Trust Wallet, adding another layer of security to Binance’s services. Even though Binance had acquired the cryptocurrency wallet, Viktor stayed through and continued to steer the wallet toward advancement. It is no wonder Trust Wallet made it to the list of the top ten most downloaded cryptocurrency wallets in 2023. 

Related: Your Ultimate Guide to Cryptocurrency Wallets

What is Unique about Trust Wallet? 

Trust Wallet is a software-based cryptocurrency wallet that is user-friendly and easy to use on desktop computers and mobile phones. It’s a cheap option for new and experienced crypto users, with only fees for sending assets and a 1% fee for buying crypto in the app. 

It works with 61 cryptocurrencies and lets users add their coins to track digital assets. Additionally, it works with Bitcoin and Ethereum, making it compatible with major players in the cryptocurrency world.

There are several ways to get help with the wallet’s customer service, such as a help page that caters for frequently asked questions and a direct email to the customer centre.

Six Top Ways Artificial Inteligence Can Grow Your Small Business Enterprise 

Six Top Ways AI Can Grow Your Small Business Enterprise  cover title

Small and medium-sized businesses face many challenges as they strive to grow and stay relevant in today’s ever-changing business world. One key strategy for remaining competitive is adopting advanced technologies, with artificial intelligence (AI) standing out as a particularly important tool.

AI has become a top priority for businesses of all sizes. More than 50% of small and medium-sized businesses have already started using AI, and this number is expected to grow even more in the future. Even major companies like Amazon and Google are using AI to drive innovation and strengthen their positions in the market. We previously wrote a blog post on “Artificial Intelligence: history, impact and future expectations.

In this blog post, we’ll explore why AI has become so important and how it has the potential to completely change the way small and medium-sized businesses operate. We’ll look at real-life examples and the benefits of AI, showing why it’s not just a trendy term but a crucial tool for businesses that want to succeed in today’s digital world. 

Stock Market: The Basics, Rules, and Success Tools

Introduction to the Stock Market: Bull Run

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What Is the Stock Market?

Stocks can also be called equities and represent securities in which an individual or a body has a percentage interest in a public company. If you hold all the shares of a company, you have voting power over its management.

The stocks listed for trading on the different stock exchanges make up what is often known as the stock market. Shares of publicly traded organisations are traded on several exchanges.

The stock market, governed by well-defined regulations, ensures that all transactions proceed in an orderly manner. This knowledge empowers you, as an investor, to navigate the market with confidence. Trading stocks can be done through formula exchanges or over-the-counter marketplaces, giving you the freedom to choose the method that suits your strategy.

Here is a list of renowned stock exchanges in the US:

Why do companies sell stocks? 

Through an initial public offering (IPO), a private firm takes a significant step towards growth and expansion. The company, now publicly owned and traded, gains a new level of visibility and access to funds for expansion and resource acquisition. This transition opens up a world of possibilities, boosting the company’s capability and potentially leading to significant growth. 

The disadvantage of going public is that it strips the founder or founding team of all control over the business and limits management. 

Individual and corporate investors who believe the company will succeed will purchase such stock offerings, becoming company shareholders. Any dividends and profits from the shares are distributed to the shareholders. Being a shareholder is like bearing the company’s fruit or pain. Hence, If the firm runs out of money, it can also see its investment decline in value or perish totally.

Investment banks are essential to the initial public offering (IPO) process because they contribute to the share selection and underwriting processes. They decide on the price of the shares and the amount to be issued at the IPO. The initial public offering (IPO) procedure may lead to substantial agreements between investment banks and issuing firms worth hundreds of millions of dollars or perhaps one billion dollars or more.

How is the Stock Market regulated?

The Stock Market is regulated mainly by a local financial/monetary regulatory body/institute. The Securities and Exchange Commission (SEC) is a US federal facility that regulates the US stock market. 

To ensure that all market participants are similarly informed, the SEC imposes specific rules, such as enforcing the timely submission of financial reports every quarter and rapid notification of pertinent business changes. For instance, if a company fails to submit its financial report within the specified time, the SEC can suspend its trading activities until the report is submitted.

Failure to follow the rules might result in the suspension of trade and other sanctions.

New York Stock Exchange

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Who is a Stockbroker?

A stockbroker is a middleman between the stock exchanges and those willing to invest(Investor). They assist investors by providing advice on potential investments, executing trades, and managing their portfolios. They also keep investors updated on market trends and changes that may affect their investments. Most people ready to invest in the stock market need more patience to learn the skills of the market; they naturally prefer to rely on the expertise of someone skilled in stock buying and selling. 

Significance of a Stock-Simulator 

A stock market simulator is a valuable tool that allows you to enter the market without the risk of losing your hard-earned money. It provides a safe learning environment where you can experience the ups and downs of trading stocks without the fear of financial loss. This sense of security can help you build confidence and develop your trading skills without the pressure of real-world consequences.

Are Online Banks Trustworthy?

Are Online Banks Trust worthy

Online banks are financial firms that provide banking services mainly or totally through the Internet. Their services range from account opening to bill payments and CD investments. 

Online banks operate 24/7 and offer lower fees, fewer time limits, higher savings and CD rates, and cashback rewards.

The main drawback of Online banks is their exclusive virtual operation: Customers will be unable to deposit or withdraw cash due to this. Some online banks offer ATM services, like Capital One 360, blending physical and virtual operations, widely recognised as online. However, these developments still do not entirely remove the doubt many still have about online banks. 

In this blog post, you will get a very definite understanding of how online banks handle security and if you can trust an online bank to keep your earnings.

FDIC’s role in bank security

In 1933, Congress inaugurated the Federal Deposit Insurance Corporation (FDIC) to keep the country’s banking system stable and the public’s trust in it. This was an urgent and highly needed move because, in the 1920s, spanning into the early 30s, a national bank failure resulted in a severe loss of many American savings. 

The FDIC has been saddled with the responsibility of Insuring financial institutions, bringing accountability, and increasing customer protection. Part of the duties is to make significant economic issues easily resolvable. Since its inception, the FDIC has proven its capacity over the years by changing the US banking security trajectory. 

Aside from federal government funding, the FDIC collects premiums from its members to cover expenses and compensate depositors at failing banks. The bank deposits the money into a Deposit Insurance Fund (DIF), with banks paying based on insured deposit balances and risk levels.

Related blog post: What are online banks? Features, Drawbacks & Reputable Banks.

What are online banks? Features, Drawbacks & Reputable Banks.

What are online banks

What are online banks?

Online banks are also known as e-banks, web banks, electronic banks, or, in the US, direct banks. These institutions primarily or solely operate online, utilizing websites, mobile apps, and digital channels instead of physical branches.

Financial institutions provide digital experiences via mobile apps for seamless online account access and transaction execution. Online banks differ from these in that they do not have physical branches. 

Capital One 360 runs a hybrid structure with a handful of physical offices and an imposing digital structure. It is, in a real sense, regarded as an online bank. This hybrid structure gives a great impression to those who want the low transaction rates that come with online banking and the confident assurance that comes with traditional brick-and-mortar banks

A brief history of online banks

On October 1, 1989, First Direct began offering 24-hour telephone banking in the United Kingdom. That decision paved the way for the introduction of online banking, which started in the early 1990s with the commercialisation of the Internet when computers became more prominent.

The first online (direct) Bank in the US was Security First Network Bank (SFNB), established in 1995 and pioneered the insurance of direct banks by the Federal Deposit Insurance Corporation (FDIC). This Bank proved that online banking was a move in the right direction despite its inability to close its initial year in profit.   

As internet banking grew, so did the willingness of customers to use the Internet for banking. The FDIC’s banking report shows that at least 60% of bank users do at least one or more forms of banking activity online. This statistic is also responsible for the fast-rising growth of exclusive online banks.  

Notable features of Online banks

Like traditional banks, online banks cater to all the services most bank users need. These include account opening, savings, fund transfers, and bill payments. Some online banks can offer savings even in the absence of physical offices because of ATM networks where customers can deposit and withdraw money with no or very minimal charges. 

The complete digital structure adopted by most online banks is responsible for lower operational costs because they do not have to pay rent, buy many buildings, or worry about high maintenance costs. 

Below are a few notable features of online banks:

  • 24/7 Access

Traditional banks have designated working hours before and after which they do not attend to more customers. The case is different with online banks, which offer a 24-hour service accessible anywhere as long as access to a broadband network exists.

  • Attractive Interest Rates

Are you looking for the best CD rates? Then, an online bank is one of your best options. Online banks are likelier to give the highest annual percentage yield (APY).

A certificate of deposit (CD) allows customers to save for a set amount of time and earn interest. CDs differ from savings accounts because you can only touch the money at the end of the term, or you’ll have to pay fees or lose interest.

  • A small deposit is required to open an account

Most internet banks don’t make you keep a minimum balance like most traditional banks do. You usually only need a small amount of money to open an account with them, or nothing at all. 

  • Competitive incentives

Traditional banks entice customers with attractive interest rates and incentives like referral bonuses and cashback rewards on transactions.

  • Zero charges on ATM withdrawals

Online banks tend to operate fee-free ATM transactions, and even when they do not, they tend to offer a certain number of free transactions during the day. 

  • Better Online Experiences

Because online banks operate exclusively or primarily online, they are prone to investing mainly in this specialisation. A 2018 Bain and Company survey reveals traditional banks’ lag in crucial customer-centric areas compared to online banks.

How To Start A Career As A Social Media Manager (Easy Guide with Resources)

Embarking on the path of social media management has been a transformative and empowering experience for me, both creatively and financially. When I graduated from school in 2020, I knew that I needed to find a way to achieve financial stability, and I found my solution in the dynamic world of social media. By managing the online presence of a solo makeup brand from the comfort of my home, I gained valuable experience and developed a deep understanding of the industry.

Today, as I continue to navigate this ever-evolving landscape, I am confident in my abilities and eager to share my hard-earned insights and practical tips on how to embark on a successful career as a social media manager.

What is Social media management?

The Ultimate Financial Literacy Guide: Six Places to Acquire Knowledge.

Financial Literacy: Key  Image

Do you want to acquire an intricate knowledge of finances and get ahead financially? There is always an opportunity to improve financially, ranging from free courses to programs costing thousands of dollars. 

Financial literacy is essential for managing money well, making wise choices, and becoming financially stable in the long run. Proper financial knowledge has a good impact on individual and corporate saving habits. The Financial Industry Regulatory Authority (FINRA) did a study that showed people who know more about money are more likely to save for emergencies and handle their day-to-day finances better.

In this blog post, we will consider six channels through which anyone can acquire financial knowledge.

1. University degree (Finance-related courses) 

Are you looking to get financial education inside the walls of a school (either in person or online)? So, the word “finance” could be used for any course that teaches how to spend and handle money.

If you get a degree in Finance, you will know a lot about corporate Finance, which is business finance. Accounting, Valuation, Risk Management, International Finance, and Economics are all courses connected to Finance and will help you learn a lot about them.

A bachelor’s programme typically lasts three to four years, with some four-year programmes requiring students to intern at local businesses as a condition of graduation. Finance is often taught as part of a Bachelor of Business Administration or Bachelor of Economics. 

Here are a few prominent institutions that offer finance-related courses: 

Another academic option to consider if you want to spend less is going for a short-term financial course. 

2. Short-term Finance courses

A short-term finance course is ideal for those seeking affordable education without the commitment of a multi-year college degree. It’s also great for workers who want to move up in their jobs by getting a certificate in finance from a well-known school.

The great thing about a short-term course is that any novice or professional can enrol and improve their personal or organisational financial life. While some short-term finance courses require experience, many are open to people without a background in finance.

A short-term finance certificate programme teaches you how to make the most of your chances in the financial markets and make smart choices about money and investments. 

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