Archives 2020

How to Afford New Technology

It can be great to keep up with the latest technology. Whether that means a new desktop or laptop computer, a new mobile device, television, set top box, camera, fitness device or music player, there are so many things that we might want to keep up to date. The problem is that because there is so much that we may want, it will get very expensive to keep it all up to date. However, things do seem to go out of date very quickly and so it is always tempting to get the most recent things. This is especially true if what we have does not do everything, we want it to or if it breaks. It can be good to know how to finance this though as we could be regularly buying updated items. There are different options and it is worth considering them and thinking about which might be the best for you.

Loans

Some people will borrow the money in order to make the purchases that they want. This can often be a fast solution, especially if you use a credit source you already have arranged such as an overdraft or credit card. If you have to organise a loan it will take a bit longer, but it can be quicker than some other ways of saving. If you have a poor credit record then taking out a loan may not be an option that is suitable for you though. You may not be able to borrow the money at all or you may only have the option of very expensive borrowing. Even if you do not have a poor credit record and can borrow easily, it will still cost you money to borrow. There will be interest to pay on any borrowing and there may be fees as well and it is therefore worth thinking hard about whether you want to pay that extra money or whether you would rather wait. It can be tricky to decide so it can be worth calculating how much extra you will pay and then you can decide whether you think that is worth paying or whether you would rather look for an alternative method.

Savings

If you have savings then it could be worth using them to pay for your new technology and then repaying them afterwards. This will not be much different to making repayments on a loan but there are advantages. Firstly, it will not cost you so much as although you will miss out on the interest you would have otherwise have got on your account, this loss will not be as much money as you would have to have paid out on loan interest. It is also more flexible as you will not have to always put money back into the savings account, if you have a tricky month then you could spend it on other things. While it is important to save, having that flexibility could be very helpful.

Some people like to hold onto their savings and borrow money, even though this is more expensive. This can be for a number of reasons such as them no calculating the cost and not realising it is dearer, them having the money put aside for a specific thing or it being so hard to save they want to keep the money. It should be carefully considered that it will be possible to save again, but holding onto savings is likely to be much more expensive than using them in the place of borrowing. Once the savings are gone you should be able to replenish them over time but if you need money before then, you can always borrow but hopefully you will not need to.

Save up

If you have no savings, then an option could be to save up for what you want. This is not always that easy, as there is often something else that we would like to spend our money on. However, if you set your mind to it, you should be able to give up some luxury products so that you have more money available to save instead. Make sure that you think about what you are aiming for and then you can decide where to prioritise your spending and what you are prepared to cut out in order to save up more.

Gifts

Some people are lucky enough to get really generous gifts when they are celebrating a birthday or perhaps Christmas or at other times of the year. This means that there could be an opportunity to ask for new technology for gifts. Now obviously some pieces will be much more expensive than one person can afford. But it might be possible to ask people to get together to pay for something or to give you money towards it.

How to Find the Best Investments

There are many options for investing our money but it can be rather difficult to know what might be the best option for you. There are places that you can go for help though and if you are a first time investor or have not done it that much before, then it can be a good idea to seek help rather than doing everything yourself. This is more important with investments than other types of finance as there is a risk involved. With an investment you buy something with your money, that you hope will go up in value. Then when it has gone up enough you sell it and make a profit. However, there is a risk that it may go down in value rather than up or that you need to sell it before it makes much money. With some investments you may even find that you have to pay more in. So, it is a good idea to make sure that you really know what you are doing.

Financial Advisor

A financial advisor that specialises in investment will tend to be the only place that some people go for help. They will trust the advisor to know all about the possible options and to find the best possible investment based on the funds that you have available. You will need to make sure that you find an independent financial advisor though as some are attached to financial organisations and therefore can only recommend products from that place. However, an independent financial advisor will be able to recommend products from any organisation and therefore they should not show any bias. This means that you will be more likely to get a recommendation of a product that is really closely suited to your needs. It is important though, to make sure that you are very clear when you explain to your financial advisor how much risk you are willing to take with your money. They will then make sure that the recommendations that they make will suit that. It is worth noting that you will have to pay for the services of an independent financial advisor. However, if they do their job well, you should be able to make back the money you spent very easily in the higher returns that you get as a result of their advice.

Friends and family

It can be useful to chat to friends and family about investments, if they have any themselves. They will be able to tell you about their experiences and whether they will recommend a particular type of investment, a financial advisor or a specific company that they invest with. It is a good idea to question them closely in order to find out what they like and dislike about what they have used as that will enable you to decide whether you think that those things will be a problem for you or not. As friends and family want to help you and have no reason to be biased then they are really good people to ask. They will want to give you helpful advice. It can be hard sometimes, to ask friends and family about finances, but it can be so useful if you do.

Websites

There are loads of websites which have information about finance, loans, mortgages etc and some of these do have investment information. The main problem though, with looking at websites, is that you have no idea where the information comes from and whether it is even correct. This means that you will need to make sure that you find out where the source of the information is from first. Find out whether the information is put together by a qualified professional and whether the site has any reason to be biased. It might be that it is put together by a company that wants you to use them to help you to invest or wants you to invest in them and they may have reason to bias your decision.

Own Research

Doing your own research can be valuable as it means thatyou can be sure that you will not be biased and you can look in as much detail as you need. It can be really time consuming though and you will need to be prepared to learn a lot of new things. It can feel good to be in control though and be able to make sure that you have a full understanding of what you are investing in.

It can be a good idea to use a combination of things. If you use some websites and do some research yourself to start with then you will have some basic information. Speak to friends and family and you will have a better understanding of what they are recommending and then you can decide whether you think that it will be better to use a financial advisor or whether you feel like you have enough knowledge without using one.