Money in Your Life—How Much Is Enough

Quite sadly, it is an irrefutable fact that we are living in a materialistic world. There is no escaping the fact. Actually, if you think about it, almost everything that we do—right from the start of our day until the time we retire to bed—we are doing it for money or for some other such similar material gain. The things that we do for other reasons, such as our physical development and maintenance and our spiritual growth are precious little in comparison to the things we do for money.

 

We are addicted to money. The more we get of it, the more we want. We want money to be at our disposal all the time, and we want money salted away so that we feel that we will be able to spend our future lives in luxury as well.

 

But, the important question is—how much money is enough? When should we put the tabs on it?

 

The bitter truth is that our lifestyles today have become such that we are chasing after money all the time. When we earn enough money to acquire one of our satisfactions, we feel the urge to earn more money and look for something bigger than that. Wants are unlimited. We always generate higher wants in our mind and then set ourselves to bring it to fruition as well.

 

If we put it in very simple terms, then you are doing very well if you have enough money to:

• Pay all your bills

• Pay for your necessities

• Pay for luxuries such as clothes, various electronic products, and so on

• Pay for your holidays 

• Pay for investment for your business’ growth

• Pay for your future investment plans

… and so on.

 

Maybe we forgot to add something in the above list, but you get the picture. The main point is that you have to have money for everything that is important for your survival and for the pursuits of your mind and for security in the future. Remember that we earn money to live—it should never happen the other way round.

 

Having said all that, we need to point out that it is not wrong to dream about becoming rich… You can dream, but for that you will need to keep rotating money. You earn money, you put it into your business, then you earn more money and improve your business still further.

 

In any case, money is important but you should not have money just for the sake of having money. You should use it for enhancing yourself; not for making yourself more complacent and vainer about your achievements. 

What Attracts Money?

People are always trying to find ways and means in which they can generate more money and make their lives more materialistically contented. We cannot deny the importance of money—though it a very superficial requirement for our existence, it is a requirement all the same.

 

But the sadder part is that people have the completely wrong idea about bringing money into their lives. What is it that attracts money? What are the factors that can make you richer in terms of money?

 

The first thing, and most people totally miss out on this, is to stay positive. Money cannot be attracted by negativism. You cannot think low about yourself, be stressed and depressed, have hate or jealousy in your mind, or try to mow down other people, and bring money in your money. Such negative elements will only push money farther away from you. Even if you have attracted such money, when you become vulnerable to such negative ideas, you will find the money going away slowly from your possession.

 

When you are positive, you are optimistic about yourself. This optimism manifests itself in various ways. You have a better frame of mind, and hence your efforts benefit from your good intentions. You are able to pool your resources in a better way. Various things automatically align themselves in such a manner that you are able to get better results and you reach your goals sooner.

 

In fact, the Law of Attraction says, in no unclear terms, how positive thoughts can help bring positive results. This has, today, become one of the fundamental laws of self-improvement, something that even leadership and self-improvement gurus are propounding in their various debates, speeches and discourses.

 

The other thing that attracts money is dedicated effort. Your dedication should be such that you focus on the quality of the work you are providing, not on the money that it will bring in. When you devote your energies to creating a better standard of your work, then people will automatically throng to acquire whatever you are promoting. Be zealous and passionate about your work, brook no compromises in giving the best quality, and you will see how your business becomes stable and the cash registers start ringing.

 

If you want to attract money, really the only way to do it is by being optimistic and honest. Shun all debilitating thoughts from your mind, and pool your energies into providing concerted effort so that everyone gets a great impression about you. This is what brings steadfast money into your life, and your balances never seem to dwindle. 

 

Corporate Finance and Its Characteristics

A field of finance that deals with financial decisions which are done by business enterprises is known as corporate finance. It will also involve the tools and the analysis that is used to make these decisions. Corporate finance has many different aspects and goals. One of the main goals of this type of finance is to make sure that the corporate value is maximized and at the same time make sure the financial risks of the same firm are well managed. The investment decision is one of the determinants of success and failure of successful corporate finance. Investment decision is mainly done using project valuation, flexibility valuation and quantifying uncertainty. 

 

Project valuation will depend with a firm’s method of valuation. In most cases the system that is used is a DCF (Discounted Cash Flow) valuation method. The area that has the highest value is selected as long as the value has been evaluated by the resulting NPV (Net Present Value). To achieve such a situation, one will need to estimate the timing and size of any cash flows that are incremental. The increments should be a result of the project and no other outside factors. Cash flows are further discounted to get the present value after which they are summed. The net that is gotten from the initial investment outlay is termed as the NPV. There are many factors that will affect the NPV and they will vary with the project and other factors. 

 

Valuing flexibility is the next step in corporate finance. When you are valuing flexibility, there are some things that should be kept into consideration. Flexibility in a project is the ability of the project changing how it has been planned. In the financial world, this change can be an increase or decrease of the required income. This means that flexibility can have a negative or positive impact. To prevent a negative impact on flexibility, valuation of the same should be done. Valuation is done by looking at any variables and probability of the requirements. More complex method of analyzing flexibility is through the use of DTA (Data Tree Analysis) and ROA (Real Option Analysis). 

 

The last part of corporate finance is quantifying uncertainty. Uncertainty is the risk that is gotten by unknowns in a project. This can be through unpredictable circumstances. There are several formulas which are used to quantify uncertainty. The project will determine the type of formula which will be used. 

Things about Personal Finance that You Should Know

Personal finance can be defined as applying the principles associated with finance to a family or an individual. These principles are applied to the monetary decisions that are going to be made. Personal finance is used to look at the way a family or an individual will earn an income, budget it and save. This is normally done over a certain period of time. There are some basics principles that are used in personal finance. The principles used will have a direct impact on the level of management of personal finance. Financial planning is a key aspect of personal finance. It is mainly broken down into four parts. 

 

The first part is assessment. Assessment is done by checking out one’s personal income and expenditures. If you are looking to assess your financial situation, you should have records about your income and expenditure. This can be done by creating your own balance sheet. This way, you will be able to know where you are spending too much of you income if you happen to be in financial straits. In the event that you are managing your finances well, the balance sheet can be used to show you how you can improve your finances or how you can re-invest to get a better income. 

 

Secondly, you need to set goals after the assessment. Setting goals will act as your guideline to a better financial situation. This should be done whether you are financially stable or you are suffering high expenditures. You can have short term goals and long-term goals. The goals should be realistic to avoid being over optimistic. When you set your financial goals, you will have a direction towards financial planning. These goals will also remind you how to use your income well. Once you have set goals, you need to create a plan and execute it.

 

The final step will require the creation of a good plan to get to your goals and an execution of the same. The financial plan should be simple and it should not be too optimistic. Make plans according to what you are sure that can be achieved instead of what you want to achieve. You can make plans to invest in other areas like the stock market or increase you remuneration at work. The plan has to be executed once it has been made. Execution is the hardest part as it will require a lot of sacrifice and commitment. If all these aspects are applied, one is sure to have good personal finance management. 

What Does Public Finance Mean to You?

A field of economics that is mainly used to pay for government related activities is mainly referred to as public finance. Public finance also constitutes the administration of these activities. The income gotten from public finance is mainly through the use of three different sources. These sources are taxes, debts and seignior age. These three sources of income will make sure that the government has a sufficient source of income. 

 

The first type of income generation is through taxes. Taxes are the highest contributor to the income generated by the government. It is not only significant due to the importance of all the revenue that has been collected, but also due to the problems that are experienced due to high tax levied. The main reason taxes are levied is to create revenue for a government. This is also the reason why in most countries the levels of tax are quite high. The level of tax is high in order for a government to fulfill its obligations. Though it is high, taxation is also used to make sure that there is some level of equality through re-distribution of wealth. Apart from this, taxation is used to control inflation. If taxation was low, the money that should have gone into tax would have been sent to consumption and would lead to inflation. Taxes are levied through different platforms and they vary from one country to another. 

 

Debt is another source of government revenue. This sounds to be quite farfetched but it is true. Government debt is also known as national or public debt. This is mainly any amount of money that is owed by one or any of the government levels. In some governments, there is the issuance of revenue bonds which are mainly based on the government’s taxing authority. Since the government represents the people of a country, a government debt will be seen as a public debt. This means that the government debt can either be internal or external. Internal debt is owed to lenders of the said country while external debt is owed to lenders who are foreign. 

 

Seignior age is the final main source of government income. This is a term that is used to define the revenue that is gotten by the government from issuing currency. Seignior age comes about as a difference between the face value of the money and the costs of producing, distributing and removing the note or coin from circulation. This type of revenue is mostly significant in countries that do not have an advanced industrial platform. 

What Finance Copywriting Means to You

The word finance simply implies anything that is affiliated to money. On the other hand, copywriting means marketing anything using written words. Therefore, finance copywriting means marketing financial items using written documents. Basically, it involves writing books or articles related to the recent financial situation. In the recent past, the economy has been on the downward trend worldwide. Due to this, many think that financial reading items have lost their market. On the contrary, this business is booming right now. This is because many want to know how they can make an extra dollar at such a time when the economy is not doing well. 

 

To prove this fact, go through the recent best seller books of the week and scrutinize the kind of books that are on the list. You will find that no single week will pass without a finance book or two in the lists. This just shows how well this market is doing. Magazines that are affiliated with finance are also on the forefront of the best seller magazines. The same applies to our libraries and online bookstores; shelves are full of finance copy writes. Generally, this market is doing well unlike what many expected. 

 

Finance copywriting is associated with good salaries. Especially at such a time when the market is doing incredibly well, one is assured of good returns at the end of it all. However, there are also other advantages that are associated with this trade. One of them is the opportunity to know the financial sector inside out. The research that one does plus the interaction with finance elites in the course of writing really equips the individual with a lot of knowledge pertaining to finance and its sub-topics. This kind of information might come in handy in your own life, for example when budgeting for your expenses. 

 

This trade involves a wide range of topics that are all under finance. They include the likes of coin dealers, mortgage, financial markets, trade organizations and mutual funds to mention just but a few. Due to this, one will always be guaranteed of something to write about. Demand for such reading materials will always be high. Clients include entrepreneurs who want to know how the markets are doing; individuals who are planning to open up their business/companies, companies or even finance students. With such a wide range of clients, then job security is a guarantee. Generally, finance copywriting is a good way of earning an extra dollar; try it!

Your Finance and You

Finance can be simply defined as some things that deal with money time and risk in a single platform. This being the case, there are different platforms of finance that can be found in an organization. These platforms will also vary according to the needs of the organization and its requirements. Most of finance is divided into personal, business, corporate and public finance. These platforms of finance have different characteristics. However, they are based on more or less the same principals. The overview of finance is simple and it can be understood by an average individual. 

 

Finance is basically an aspect of business management. This means that an organization or an individual will have to know how finance works in order for them to understand its impact in their life. It is mainly associated with the acquisition and the use of funds of a business entity or an individual. In finance, there is the income that is generated and the expenditure. Income is the amount of money that has been gotten in total. This can be through payments for goods and services. The expenditure is the amount of money that has been used to generate the income. It can come in terms of costs of buying goods, expenses while providing a service or use for any other business that was related to the generation of income. 

 

Finance management is the act of making sure that the income is higher than the expenditure. When the income is higher than the expenditure, it means that the entity is making a profit. This is in turn means that the entity is able to run comfortably on its own. An entity that is running on its own has good financial management and smooth running of other branches of business. However, when the income is lower than the expenditure, there is poor management of finance and the business in general. Entities that make losses are those that experience this situation. To avoid it, the entity will have to know why there are expenses which are exceeding the income. 

 

Finding out where the problem lies should not be a difficult task. In most cases, the problem is a result of spending too much money on the expenses. The costs of running the entity should be reviewed and adjusted. If this does not work, then the products being offered should have an adjustment on price. When these two things are implemented, the entity will start recovering and making profits. 

Cheap Personal Finance

You may be in need of some extra cash so that you can accomplish something, say renovating your home, clearing debts or for a certain business deal. You may find that the money you have with you or in the bank is not enough to fully meet the need. Therefore, you may have the need for personal finance. 

 

The reason why it is known as personal finance is because this is money needed to meet some needs that are somewhat personal in nature as opposed to the other needs like buying a house, purchasing a score of land or setting up a business. There are many personal finance schemes available in the market, but you need to know how to get the best personal finance scheme that will work for you and that will come with the best rates and terms.

 

There are many personal finance schemes out there that are cheap. They come in many shapes, but the most common one is the secured one. In this you give collateral as you take the cash. Personal finance schemes that are secured with collateral are the best and they are the cheapest. The reason why they are cheap is because the lender is confident that the cash will be paid back because they have your item at hand. Therefore, secured personal finance schemes are cheaper than the non-secured ones. 

 

The repayment period also varies in different personal finance schemes. There are those schemes that require that you pay off the whole amount together with interest within a period of five years. However, there are those that give repayment periods that are stretched to over twenty years. Also, the allowed lending amount varies. Some personal finance schemes give only three thousand dollars while others even give up to fifty thousand dollars! 

 

Unsecured personal finance option can also be considered, depending on the nature of your need and your willingness. In this personal finance scheme, you are given the financing without any form of collateral. However, the limitation with this scheme is that the allowed lending amount ranges from five hundred dollars to fifteen thousand dollars. 

 

Also, the interest rate for this unsecured personal finance option is a bit higher, because of the fact that there is no security. The repayment period is also very short, ranging from one to ten years’ time. For the best personal finance schemes, you can go online and make an application.

How Well Do You Manage Your Finances?

Financial management of your personal finances is one of the hardest things you may have to do in your life. It is very hard to know whether or not you manage your personal finances well, unless you ask yourself some questions. 

 

First and foremost, you need to ask yourself is, “how well can you manage without using your credit card?” If you are very dependent on the credit card that you cannot do without it for the month, then your personal finance management has not yet grown to maturity. Doing without your credit card is not something you will learn to do overnight; it needs a lot of patience and sacrifice to break from such a habit. You first need to gradually but steadily pay off all the pending debts in your credit cards. This will call for debt consolidation so that the interest rates you pay will lower.

 

Secondly, the best indicator of how will or badly you manage your finances is your savings account. How much savings do you have? Over what period of time have you made these savings? How much do you dig back into the savings to meet your needs and wants? It is very disastrous when you have absolutely no personal savings. You should ensure that you save at least ten percent of your monthly or daily income. If you use more than ninety percent of what you get, then you should improve your personal finance management skills. There is no way you will get your personal finances in order if you have no savings to fall back to.

 

Thirdly, look at the status of your job or business. How much do you get from it in a month or week? How stable is it? What is the future like for the job or business? Does it meet your expenses? If not, what is your next plan for making more money? Do not rely on your job alone if you want to be in a good position to manage your personal finances. Consider doing business, whether small or big. 

 

Lastly, you need to know the stats of your emergency funds. Do you have sufficient medical emergency funds? Are you in any retirement benefit plan? You should make use of such plans, especially the government ones. This will ensure that your future is secured financially and that you will be prepared in case of any emergencies.

Manage Your Personal Finance

Most people have issues with their personal finances, and they have never come to a point where they have full control over their personal finances. Most people think that management of personal finances will only be possible when they start making millions of dollars every month. However, this is not true. This assumption usually makes people reluctant to take control of their money and they end up in financial crisis. 

 

Others think that taking steps to manage personal finances is a harsh and exaggerated, and they just live each day as it comes. Others live with the dream of becoming financially free one day and they therefore see no need to bother planning for the few peanuts they presently have. This is a very wrong perception, and it is imp0ortant that you take charge of your personal finances. 

 

One simple tip is to make good use of free samples. Why should you buy something when you can get a smaller version of it for free? It sounds funny, but it helps. Also, be a good steward of your plastic money.

 

If you are very extravagant, then avoid having a credit card; go for a debit one. Open a savings account instead of a current account, because your rate of withdrawal will be regulated. Make an effort to save money and reward yourself when your aims are met. It also makes more sense to buy things in bulk. Do a month’s shopping instead of buying what you need every day. 

 

This is especially with dry foods and foods that have a long shelve life. Things are much cheaper when they are bought in bulk, and you will find more offers on bulk items than on single ones. It is also cheaper to transport many items at once than to go ton the store everyday or every week. Remember, saving money is not only in the price at which you buy them, but also in the effort, time and money you spend to get them to your house.

 

When going to the convenience store, always have a list and stick to it. This is to avoid impulse buying, because this is what affects many people’s personal finances. Have someone who will keep you accountable, say a spouse or a friend. Practice sticking to the shopping list and it will become natural to you with time. Mark your progress, and give yourself incentives and rewards for every progress you make.

Personal Finance—Make Your Own Budget

When people hear the word “finance” mentioned, their mind goes into business and corporate matters. However, the bare truth is that finances start at your piggy bank at home to your plastic money in the wallet to your bank account. 

 

This is what personal finance is all about. You should be a manager of your own finances, or else you will end up in disaster sooner or later. Finance experts say that if you cannot save at least ten percent of what you are earning, then you are in financial disaster. This means that out of ten thousand dollars, a thousand should go into the savings account. This rule applies regardless of how much money you are earning, and it does not apply to the rich and wealthy, as many people think. 

 

Personal finance management cannot be done verbally, and therefore there is need to write down the plan so that it will be easy to implement it. It is natural for human beings to forget that they swore never to overspend especially when they are looking at an item that is flashy and exciting, and more so when this item has been their dream item. 

 

Therefore, a personal finance budget is the way to go. This will keep you accountable, and if you are strict enough to stick to it, then you can be sure to get to the level where you are financially free. Financial freedom is not a point when you get more cash than your bank account can hold; it is that point when your finances are no longer in control of you – you are the one controlling them. 

 

As you make your personal finance budget, use actual figures. It is wrong to use estimated figures, unless it is quite inevitable. When it is not possible to have the actual prices, make an estimate but ensure that it is on the higher side. 

 

However, even this is not the best way to go, because you may put unnecessary strain on your budget. Find out the current prices of food items, clothing, entertainment, leisure, beauty, health, and every other need that is predictable. 

 

Health needs are not easily predictable, but they can only be accurately predicted when you have a member of the family that has a certain chronic illness that requires a certain amount of money every month. However, the 10% named above that should not be spent is what covers any unexpected needs and it also stands to meet any future expenses like a holiday, a car, long term further education, a new house, etc. 

Protect Your Personal Finances

What is the present status of your personal finances? The best way through which you can review this status is by first checking your personal savings. You should have constant and consistent saving habits. Also, your dependability on plastic money should say a lot about the status of your personal finances. 

 

Your personal finances are okay if you can survive for about three months without even looking at your credit cards. If you have accumulated a lot of credit card debts, you need to strategize a way through which these debts ca be aid in the easiest and cheapest way. Consider consolidating your debts, because this will ensure that you pay the debts using a cheaper rate of interest, and this will save you money in the long run. 

 

The reason why you need to protect your personal finances is because of the insecurity in the people’s financial future. One thing that can make you aware of the need to protect your personal finances early enough is the rate at which jobless people are increasing, the rate at which prices of food and energy are raising and the rate at which inflation is occurring. The interest rates on almost everything are increasing at an alarming rate, and this is very worrying. Therefore, you need to secure the future of you and your family and loved ones by putting in order your personal finances.

 

You should watch how you manage your debts. One thing that really wastes your cash is the interest rates. Most of the times, one usually ends up paying for more than double of what they actually owe, and this is all because of the interest rates. It therefore is very detrimental to the health of your personal finances when you are paying more than five credit card debts. The best way you can manage these debts is by doing consolidation. You can approach any financer, say a bank, and ask for a debt consolidation loan. When they accept, they pay off all your debts and consolidate them into one, and you therefore end up paying only one financer, meaning that the interest will be much lower.

 

Personal finance budgeting is also a must in securing your finances. Budgeting does not only apply to those who earn five hundred dollars every month; it applies to the multibillionaires too. There is absolutely no way your personal finances can be secure if you do not have a good personal finance budget. A budget acts as a guideline to your spending and it ensures that the money is fairly and appropriately distributed among all needs.

How to Tackle Fashion Angel Investors

Incredible highs, incredible lows. That’s what the fashion industry is made of. If have made that decision to step out into the fashion world, you might be in need of a little help from Fashion Angel Investors. Being successful, especially in fashion is all about having some good connections as well as good backing. It’s more important even then having talent. This is what a fashion-angel-investor can help you with. 

 

Why would you need one?

 

When you’ve just started out it’s good to think about hiring someone to invest in the business. A financier is better than a venture capital firm. Venture investment is quite different these days than it used to be. Before the rise of technology, these firms often had smaller businesses approach them for funding, this has changed because of the fact that venture-capitalists have a good deal more money at their disposal. They now prefer to invest in bigger companies and businesses. 

 

Angel investor groups are filling the vacancy left by the venture capitalists. Being an accredited investor is a basic requirement for an angel investor. This means they have more cash than the actual amount at disposal. A cautious angel investor will be able to invest ten percent of what they have into your business. 

 

Financing is very important in fashion business. The fashion industry requires a lot of funding to start out because: 

 

• Lots of money goes towards marketing

• You have to attend a lot of social events in order to meet potential clients. 

• Experienced and skillful tailors and seamstresses are necessary. 

• You need good designers who have talent and a good education.

• All the material for your clothes, shoes and other accessories should be of the highest quality. 

 

How Do You Get Their Attention? 

 

These are all costly investments. In the fashion industry you need to have enough working capital from the very beginning. At the beginning it’s not possible to generate all the capital you need solely from your business. If you’re rich to begin with, then of course it won’t be a problem for you. Unfortunately, most people don’t have enough money from the beginning and will need to find a way to fund the undertaking. 

 

Before trying to approach the fashion angel investors it would be a good idea to create a business plan in order to convince them. Don’t reveal your trade secrets, but do give the necessary details. A lot of times the fashion-angel-investors will be able to understand what you are trying to do without a great deal of explanation. 

 

You can propose that they become a part of your company. You could attract attention to your business through press releases. The investors always look through the press releases to see the upcoming businesses. Be sure to do as much networking as you can, in order to attract the right investors. 

Diversification Is Important

“Do not put all of your eggs in one basket!” You have in all likelihood heard that again and again over your life... and when it comes to investment, it is really true. 

 

Diversification is the key to successful investment. All successful investors build up portfolios that are widely diversified, and you ought to as well!

 

Broadening your investitures may include buying assorted stocks in a lot of different industries. It might include buying bonds, investment in money market accounts, or even in some real estate. The key is to invest in a lot of different arenas – not simply one.

 

Over time, enquiry has shown that investors who have broadened portfolios commonly see more reproducible and stable returns on their investitures than those who simply invest in one thing. By investing in a lot of different markets, you'll in reality be at less risk too.

 

For example, if you've invested all of your revenue in one stock, and that stock takes a substantial dip, you'll most likely discover that you have lost all of your revenue. On the other hand, if you've invested in 10 different stocks, and 9 are doing well while one plunges, you're still in fairly good condition.

 

A good diversification will commonly include stocks, bonds, real estate, and hard currency. It might take time to broaden your portfolio. Depending upon how much you have to initially vest, you might have to begin with one sort of investment, and invest in additional areas as time passes.

 

This is all right, but if you are able to split up your initial investment among assorted types of investments, you'll discover that you have a lower risk of turning a loss on your money, and over time, you'll encounter better returns.

 

Experts likewise hint that you spread your investment revenue evenly among your investments. Put differently, if you begin with a hundred thousand dollars to invest, invest twenty-five thousand in stocks, twenty-five thousand in real estate, twenty five thousand in bonds, and place twenty five thousand in an interest carrying savings account.

Why You Ought To Invest

Investment matters have become more and more crucial over the years, as the time to come with social security benefits turns unknown.

 

Individuals would like to guarantee their futures, and they know that if they're depending upon Social Security benefits, and in a few cases pension plans, that they might be in for a crude awakening when they no more have the ability to take in a steady income. Investing is the answer to the unknowns of the time to come.

 

You might have been laying aside money in a low interest savings account throughout the years. At present, you would like to see that money grow at a quicker pace. Maybe you’ve come into money or received a big windfall, and you require a way to make that income grow. Once again, investments are the answer. 

 

Investing is likewise a way of getting the things that you wish, such as a new house, a college education for your youngsters, or expensive ‘playthings.’ Naturally, your financial goals will influence what sort of investing you do.

 

If you wish or need to bring in a lot of income fast, you would be more interested in higher risk investments, which will give you a bigger return in a shorter sum of time. If you're saving for something in the faraway future, like retirement, you would want to make safer investitures that grow over a longer time period. 

 

The total purpose of investing is to produce wealth and security, over a time period. It's important to recall that you will not always be able to take in an income... you'll eventually prefer to retire.

 

You likewise can't count on the social security system to do what you anticipate it to do. As we have seen with Enron, you likewise can't necessarily depend upon your company’s pension plan either. So, once again, investing is the key to guaranteeing your own financial future, but you have to make wise investments!

4 Smart Tips to Using Credit Cards

Plastic money, which comes in form of credit cards, is really loved and highly used. There is nothing you cannot purchase with one swipe of the credit card. Credit companies make a multi-billion dollars kill every year on credit card users. This kill is made when they deduct their charges and when they fine you for late payments, transfers and over-limits. However, a credit card can be a good servant if used wisely but a bad master when used unwisely. As a matter of fact, you can even get bonuses when you learn how to wisely use your plastic. The following tips will be of great help to you.

• There are many credit card companies to choose from; choose the best. The best credit card you can have is one that has good rates of interest and an open bonus system. Some credit cards usually have rewards for you, if you use it wisely. The rewards range from cash back to college fees for your kids. You can have a look at the customer reviews on a credit card before choosing it to be your plastic. Such reviews will give you the best image of the credit card, and the experiences of other customers will help you make the right choice.

• Avoid carrying balances on your plastic. Credit card companies reward those who have a clean record when it comes to having balances in their credit cards. Paying off the balances usually relieves you of the burden of paying huge amounts of interest. Make it your aim to pay off any balance in your credit card ever month.

•  Learn how to communicate with your credit card company. When you have a balance that has been forwarded to the next month, pick up your phone and talk to your credit card company and see whether it is possible for the interest rate to be cut down. However, you can only benefit from such a step if you have previously kept a clean record of clearing balances with the company.

• Avoid cash advances like plague. As a matter of fact, use cash advances only when you are faced with an emergency and there is no other way out. It is very easy to ask for a cash advance, because when you get it you feel as if you have been given free money. However, such advances usually attract heavy interests and charges when you delay payment. 

Use these smart tips when you use credit cards and then you will not feel them to be the monster that they are usually touted to be.