A Fool and His Money » finance

Another Credit Crunch on the horizon

Michael — Mon, 04 Oct 2010 15:29:06 +0000

As the UK still struggles to cope with surviving a Credit Crunch it looks like we could be on the verge of another one.
The New Economics Foundation (NEF) has reported that taxpayers could be forced to help plug a £25bn-a-month funding gap. Despite an estimated £1.2 trillion which has already been pumped into the banking system, we might once again see the banks begging for government help.
This prediction is based on the NEF’s report “Where did our money go?”, which warns that the industry is on a collision course for a severe funding crisis when current financial lifelines are withdrawn.
The report also states that, if the government is aware of this it would therefore explain the severity of its’ inevitable cuts. i.e. they are preparing government (taxpayer) funds for a further round of bail-outs.

To read the report in full please click here.

Is the economy reviving?

Rob — Tue, 02 Feb 2010 09:19:57 +0000

I remember mentioned about the downfall of the economy previously and also about how the financial specialists all over the world predicted that in 2010 the economy will start to become stronger and the so called recession will begin to disappear.

What do you think of this?

Do you think the economy is actually recovering from 2009? A few would say yes however the majority will be saying that nothing seems to have changed except prices increasing even more!

The best course of action to take for each individual is to begin their own recovery and those close to them.

Is the credit crunch really that bad?

Ahmed — Wed, 18 Feb 2009 09:13:24 +0000

What’s your opinion?

Well let’s look at this from another perspective. Before anything, yes, the credit crunch has some effect however the bigger problem lies with us. Look at your spending habits and ponder over it for a short period of time and you will realise that the biggest problem is our spending habits.

Times like this come and go so we need to tailor ourselves to these times. Once the recession passes, we can get back to our normal daily routines.

So when times are hard, they aren’t really that bad. It’s just us who don’t want to change and live on less. This needs to be done. It’s not going to last forever, right?

Diamonds…

Ahmed — Mon, 26 Jan 2009 13:19:30 +0000

A little different today. Are diamonds worth purchasing for personal use?

We all know that good quality diamond engagement rings can cost up to and beyond £100,000.

My advice? Don’t buy a diamond ring if you can afford it. Why? It will put you into long term difficulties and stress.

The reason for this is that, as you may have read in the media, people go to great lengths for some occasions where they try an imitate celebrities. The best example: Weddings.

In this day and age, people go beyond their limit and take out massive loans for weddings which at the time seems needed however once the wedding is over – a couple of months down the line – people start to realise what they have done but then? It’s too late!

I’m not saying don’t spend on weddings and special events but be reasonable. Instead of looking at diamond engagement rings for £30,000 plus, which is beyond your limit, buy one for cheaper. This will not only give you less problems in the future but will make you relationship stronger.

And a final note: Try to save early and don’t take a loan out. You will realise the immense benefit of this once you start reading stories about people who have been through such a time.

Stay far from taking loans

Ahmed — Thu, 04 Dec 2008 09:18:44 +0000

We have all heard of the credit crunch now and we all know the effects it has had across the globe at a corporate level as well as an individual level.

Why has it had so much effect?

When people and businesses take out loans, they hope the interest rates will remain the same throughout the period of the loan; and plan accordingly. But, as we all know, this is not the case and those individuals and business suffer. Not suffering that lasts a day, a week, or even a month. Financial problems that can potentially last a lifetime.

Even during the recession and credit crunch, you will hear all sorts from ‘Loans’ to ‘Low Loans’ to ‘Secured Loans‘ to even ‘Free Loans’!

Even if your business is doing really well and you think it won’t be a problem. Just look at the world banks. They came down in a fraction of days. Even Google are starting to struggle financially, although they still make a good profit. How do we know this? They have started taking on new staff and using existing staff to fill up new positions.

You can read all about people who have taken loans without considering the consequences and see what they go through in their day to day lives.

The knowledge of Debt Recovery

Ahmed — Mon, 01 Dec 2008 11:02:16 +0000

The knowledge of Debt Recovery is extremely crucial for most businesses from day 1. Why is this? Many, and I mean, many businesses have gone bust a couple of years into the business due to transactions made within the first few months of the business.

Sooner or later it will catch up to you.

In the beginning, you can manage this yourself but as you business grows, it will be best to have someone else manage this area of the business. this can internally or externally. It would probably be best to go externally first and when your business is large enough, hire a full time specialist.

There is lots of help available all over for all areas in money and debt.

Below are some tips for if you left it too late:

Tip number one: Don’t freak out!
This is the number one thing that breaks bust’s a business. By freaking out, you are just making it worse for yourself and your business
Plan, Plan, Plan
Although you have been hit, and been hit HARD, don’t worry, you still have time, probably a few months. You need to plan seriously and get everything right the first time. Otherwise, say good buy to your business.
If it’s very serious, consult a Debt Recovery Company.

Buying a home during the current mortgage climate

Ahmed — Wed, 12 Nov 2008 15:18:10 +0000

Now, by just reading the title, you would probably call me the fool. Correct? Well read on and i’m sure you will admit that you’re the fool.

Now, why on earth would you want to buy a house when there is no guarantee what’s going to happened the next minute? It’s correct that this is a tough choice but think about it, Houses are starting to go cheap compared to what they were, and this price is dropping daily, especially with the desperate sellers out there.

Look at Manchester, London, Edinburgh, Birmingham and the whole of England.

When dealing with houses, flats and living quarters, you have to be very wise as you will probably spend a good amount of your life there.

There are many people who are willing to rent you their home and after some time let you purchase the home at a fixed price. For example, the short term rent Edinburgh has to offer can help you greatly as it’s short term. Once you are a bit well off, you can consider buying a property.

So what’s your opinion? Buying a house from the beginning or going on a short term rent plan and thereafter consider buying a home?

Tips to Survive the Recession

Ahmed — Mon, 10 Nov 2008 15:07:35 +0000

Im sure most people in the world have heard of the recent credit crises and the recession in which countries are falling one by one.

I’ve put together some tips which, if followed, will prove very beneficial.

Lower your budget across everything
Don’t worry, you will increase this again after some time
Don’t borrow from any place
Start to increase on savings slowly
Just incase…
Read my previous post on how to make some extra cash!

Although it’s a very small list, its benefits are endless… Just be careful if you have a lot of investments, especially abroad, and if you don’t, that’s good and keep it this way until a good amount of time after the recession.

Preventing Identity Fraud

Ahmed — Tue, 21 Oct 2008 14:52:22 +0000

An increasing number of people are becoming victims of ID fraud. I’ve gathered together a list of point to prevent this from happening to you:

Safeguard you National Insurance Number
Purchase a paper shredder
Scan your bank statements carefully
Report stolen cards immediately
Change your PIN frequently
Don’t be the fool

By following these simple steps, you can safeguard yourself from ID fraud. This is not a guarantee…

Especially in this day and age, it’s very important to also keep up with technology as almost everything involving money is conducted through the internet. Keep up to date and stay safe.

How should I buy office supplies?

Ahmed — Fri, 17 Oct 2008 10:53:53 +0000

Every business needs office supplies. Below is a list to keep in mind when you do:

Look into your needs
Don’t overspend or you may fall into problems later – specially for the new business.
Work out your budget
Trust me…
If you are looking to purchase some furniture – Make sure you go with measurements
You won’t believe how many go without these and end up with more than they bargained for…
Triple check your list – twice
This is important
Check the papers for bargains
Look around online very well
you can find almost anything online…