Twenty business – Puro Veinte http://puroveinte.com/ Wed, 16 Nov 2022 14:45:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://puroveinte.com/wp-content/uploads/2021/11/icon-120x120.png Twenty business – Puro Veinte http://puroveinte.com/ 32 32 New Poll: Millions of Americans Make Tough Decisions Due to Avoidable Payroll Mistakes https://puroveinte.com/new-poll-millions-of-americans-make-tough-decisions-due-to-avoidable-payroll-mistakes/ Wed, 16 Nov 2022 14:45:00 +0000 https://puroveinte.com/new-poll-millions-of-americans-make-tough-decisions-due-to-avoidable-payroll-mistakes/ OKLAHOMA CITY–(BUSINESS WIRE)–Payroll errors drive nearly one in five American adults to take drastic financial action, according to a survey by Morning Consult for Paycom Software Inc. (NYSE:PAYC)a leading provider of comprehensive cloud-based human capital management software. Additionally, the survey of 2,210 American adults found that nearly 6 in 10 Americans would have difficulty paying […]]]>

OKLAHOMA CITY–()–Payroll errors drive nearly one in five American adults to take drastic financial action, according to a survey by Morning Consult for Paycom Software Inc. (NYSE:PAYC)a leading provider of comprehensive cloud-based human capital management software.

Additionally, the survey of 2,210 American adults found that nearly 6 in 10 Americans would have difficulty paying bills and making purchases if their check was just $100 short.

“Many Americans find themselves financially strained, especially during the holidays, and this data underscores the importance of perfect payroll,” said Chad Richison, founder and CEO of Paycom. “Workers shouldn’t have to choose between food and medicine because of an unnecessary payroll error, which is why it’s important they have access to find and fix errors before their payroll is run. .”

Payroll challenges negatively impact Americans’ ability to stay afloat

According to the survey, 1 in 5 Americans have experienced at least one payroll error in the past year, and 80% have been pressured into action, including those who had to:

  • skipping utility bill payments

  • overdraw their checking accounts

  • give up groceries

  • missing rent, mortgage, loan and/or credit card payments

The finances of the vast majority of Americans are negatively affected by mistakes

The vast majority of Americans (86%) would feel adverse effects if they lost a check, and:

  • 82% of Americans say they would struggle to pay their bills if more than $500 was missing from their check.

  • 58% would struggle to pay bills and make purchases if only $100 was missing.

  • 40% are vulnerable to poverty if they miss a check, which means they would experience two high-impact outcomes, such as inability to pay groceries, missing bills/rent, or overdrawn accounts.

An imperfect payroll harms employer-employee relations

As employers look to improve retention, the survey yielded a sobering number: 7 in 10 workers said missing a check impacts job satisfaction.

The good news: Almost all workers surveyed said the ability to check and correct errors before payday would positively affect them personally and/or professionally.

Paycom’s Beti®the self-service payroll solution, guides employees to find and correct payroll errors before submission.

Methodology page: https://paycom.com/learn-more/morning-consult-0922

About Paycom

As a payroll and HR technology leader, Oklahoma City-based Paycom is redefining the human capital management industry by enabling companies to effectively navigate a rapidly changing business environment. Its cloud-based software solution relies on a central system of record kept in a single database for all human capital management functions, providing the functionality companies need to manage the complete lifecycle of employment, from recruitment to retirement. Paycom has the ability to serve businesses of all sizes and in all industries. As a leading human capital management provider, Paycom serves customers in all 50 states from offices across the country.

]]>
Achieve predicts moderate spending on gifts and travel for the 2022 holiday season https://puroveinte.com/achieve-predicts-moderate-spending-on-gifts-and-travel-for-the-2022-holiday-season/ Mon, 14 Nov 2022 20:00:41 +0000 https://puroveinte.com/achieve-predicts-moderate-spending-on-gifts-and-travel-for-the-2022-holiday-season/ Only 14% of US consumers say they set aside savings for holiday shopping. SAN MATEO, Calif., November 14, 2022 /PRNewswire/ — Americans plan to take a restrained approach to gifts, travel and other spending this holiday season, a sentiment boosted by economic concerns over inflation, rising interest rates interest, layoffs and the threat of a […]]]>

Only 14% of US consumers say they set aside savings for holiday shopping.

SAN MATEO, Calif., November 14, 2022 /PRNewswire/ — Americans plan to take a restrained approach to gifts, travel and other spending this holiday season, a sentiment boosted by economic concerns over inflation, rising interest rates interest, layoffs and the threat of a looming recession, according to a new report by Reachthe leader in digital personal finance.

The 2022 Season Expenditure Report, published by the Achieve Center for Consumer Insights, found that 69% of American adults plan to cap their gift spending at $500 this year, while 14% said they don’t plan to buy gifts. The report also found that only 14% of Americans say they have separate savings for vacation-related expenses, while one in five consumers wish they had created a dedicated vacation savings plan.

“While most Americans plan for limited travel this year, many still wish they had done a better job preparing financially for the holiday season,” said Achieve co-founder and co-CEO Brad Stroh. “The large gap between consumers making holiday savings plans is particularly concerning, given that household debt is at peak levels and growing.”

The data and conclusions of the 2022 Season Expenditure Report are based on an online survey of 1,000 U.S. consumers ages 18-65, including a statistically significant sample of Gen Z adults. Data is representative of Census Bureau benchmarks of the U.S. population for the age, sex, race and ethnicity.

Stay home for the holidays

Nearly half of respondents plan to celebrate the holidays at home this year, while 28% say they have no plans at all. Of those who will travel, most plan to stay in the United States, usually to visit family. Respondents with an annual household income above $100,000 are almost three times more likely to take a domestic holiday during the holiday season than those with an income below $100,000. The report also found that feelings about gifts vary by age, gender and relationship status.

  • Women were about twice as likely as men to say they put a lot of effort into choosing gifts.
  • Men were almost three times more likely than women to say they like giving away tech gadgets.
  • Baby boomers were the most likely to say they dislike giving gifts, while millennials and Gen Z were the most likely to say they were generous and caring.
  • Married respondents were more likely to consider themselves last-minute shoppers than single, engaged/living with a partner, or divorced/widowed consumers.

“Finances are a significant contributor to holiday stress,” Stroh said. “But consumers who stick to their budget and focus on their priorities this season will get through the holidays with less stress and potentially more money in their bank accounts.”

Holiday Payment Trends

Consumers plan to use a combination of methods to pay for holiday spending on gifts, new outfits, food and entertainment. Most will rely on available funds accessed from their bank accounts, supplemented by credit card spending. Although the overall use of paper checks is minimal, a surprising 9% of Millennials expect to use them, compared to only 4% in each of Gen Xers and Baby Boomers. Other payment methods, such as payday loans and money orders, play a much smaller role in most consumers’ holiday shopping.

  • While freebies can be moderate, 20% of respondents said they expect their credit card debt to increase by $1,000 or more over the holidays.
  • Gen X (5%) and Gen Y (6%) expect they will need the most help managing their vacation debt. Separately, 65% of baby boomers — the highest proportion of any generation — believe they will keep their spending under control.
  • Of those who expect to rack up more than $5,000 in credit card debt over the holidays, 17% believe they will need outside help to pay off their debt. Conversely, only 2% of consumers planning to add less than $500 to their credit card balance believe they will need the same type of assistance.

Tips from Achieve: 5 Steps to Building a Holiday Budget

Many people resist making a budget because they think it only serves to limit spending. Instead, think of your budget as a tool that helps direct spending to the things that are most important to you. Any good budget is based on setting priorities and setting realistic goals.

  1. Figure out how much you can spend this year without incurring unnecessary debt.
  2. Carefully consider and list everything and everyone you plan to spend money on during the holiday season. Include gifts, greeting cards, decorations, holiday meals and year-end gratuities for service providers. Finally, don’t forget about future travel expenses, even if you’re only traveling across town to visit loved ones.
  3. Then start listing gift ideas and include prices. You may need to modify the gifts you want to buy to avoid going over your budget constraints.
  4. If the budget seems tight, but you don’t want to take someone off your gift list, the gift of time can mean so much more than a wrapped gift.
  5. Remember what your vision of vacations is and that vacations were never meant to create financial stress.

About the Achieve Consumer Information Center

The Achieve Center for Consumer Insights is an ongoing initiative that leverages Achieve’s team of digital personal finance experts to provide a view into the state of consumer finances. In addition to sharing insights drawn from Achieve’s proprietary data and analysis, Achieve’s Consumer Insights Hub publishes in-depth research, tailored data and thoughtful commentary in support of Achieve’s mission. Achieve to help everyday people borrow and stay on the path to a better financial future.

About Reach

Reach is the leader in digital personal finance. Our solutions help everyday people engage and stay on the path to a better financial future, through innovative technology and personalized coaching. Leveraging proprietary data and analytics, our solutions are tailored to every stage of a consumer’s financial journey and include personal loans, home loans, debt relief, and financial tools and education. . Based in San Mateo, Calif., Achieve has more than 2,700 dedicated employees across the country with centers in California, Arizona and Texas and has consistently been recognized as the Best Place to Work.

Achieve and its affiliates are subsidiaries of Freedom Financial Network Funding, LLC, including Bills.com, LLC d/b/a reach.com (NMLS ID #138464) Equal Housing Lender; Freedom Financial Asset Management, LLC (NMLS ID #227977); Freedom Resolution (NMLS ID #1248929); and Lendage, LLC d/b/a Achieve Loans (NMLS ID #1810501), Equal Housing Lender.

Quote Show original content to download multimedia:https://www.prnewswire.com/news-releases/achieve-predicts-subdued-spending-on-gifts-travel-for-2022-holiday-season-301677463.html

SOURCE Go

]]>
Is a payday advance from a bank better than a personal loan? https://puroveinte.com/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Sat, 12 Nov 2022 12:32:00 +0000 https://puroveinte.com/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Image source: Getty Images Many of us have been there. You had a car accident, and now you have to pay the mechanic to fix it. This unexpected expense will cost you a few hundred dollars, and like 60% of Americans, you are not able to cover it with your savings. Moreover, you only have […]]]>

Image source: Getty Images

Many of us have been there. You had a car accident, and now you have to pay the mechanic to fix it. This unexpected expense will cost you a few hundred dollars, and like 60% of Americans, you are not able to cover it with your savings. Moreover, you only have money left for the bare necessities in your current account, and your next payday is several days away. What should you do?

You have a few options in this situation. Read on to learn more about bank payday advances versus personal loans, and how to decide which is right for you.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

What is a salary advance?

A payday advance loan from a bank or box is called a small loan. These are loans generally between $100 and $1,000 granted by a bank to account holders. The intention is to give consumers an alternative to predatory payday loans (see below) when they are in a financial bind. If your bank offers them, you’ll get the money you need quickly and pay it back from your next paycheck via direct deposit, or over a period of weeks or months. You will have to pay a fee (either a fixed dollar amount or a small percentage of what you borrow) and interest for the service.

You may soon hear more about payday advances; a Bloomberg Law report in early October 2022 noted that federal regulators want banks to be able to offer them, but banks need more guidance from regulatory agencies moving forward. Personal loans, on the other hand, are already reliably available for your emergency borrowing needs.

What is a personal loan?

A Personal loan is a fairly easy way to borrow a lump sum of money. They usually come with lower interest rates than many other quick cash solutions, like credit cards or payday loans (and certainly lower than payday loans). However, if your credit is not in top shape, you may not be eligible for the best personal loan rates available.

Personal loans are generally in the amount of $1,000 to $100,000, and can often be funded fairly quickly after your application is approved. In some cases you can get the money the same day or the next day. Is there another way to borrow money fast? Yes, but you probably want to stay away.

Try to avoid payday loans

Although it may seem counterintuitive (after all, there’s “payday” in the name), it’s a good idea to avoid payday loans. And depending on where you live, they may be illegal in your area; they have been banned in 13 states and the District of Columbia. Payday loans are small, short-term loans of $500 or less, usually with a very high interest rate.

As of 2022, typical payday loan rates range from 28% to 1,950%. These loans often trick consumers in a cycle of debt from which they cannot easily escape. Can’t repay your loan on your next payday? That’s fine, the lender will turn it into a new payday loan for you! How nice of them. Your best choice is probably a payday loan or a personal loan.

How do you choose?

There are a few things to consider when choosing between a payday advance and a personal loan.

How much money do you need?

A payday advance loan, if you can get one from your bank or credit union, is probably best for borrowing smaller amounts. If your auto repair bill is $350, but the smallest personal loan amount you can take out is $1,000, that’s not ideal. If your surprise expense is larger, you’ll likely get a better interest rate with a personal loan (plus payday advances from your bank may be capped at $500).

How fast do you need it?

If you can wait a few days and have good credit, you may be better off with a personal loan – again, because of interest rates. That said, if your bank offers payday advance loans, they might approve you fairly quickly if you’re an existing customer in good standing. It has already registered you and can access your finances in the form of your bank account(s). Plus, your bank can easily send the money you borrow directly to your account.

How long do you need to pay it back?

This is where a personal loan probably has the advantage. You will have more time to repay a personal loan (months to years) than a payday loan (weeks to months). But again, a lot depends on the amount of money you need to borrow.

Payday advance loans and personal loans have their place, and if you ever get into trouble and need to borrow a relatively small amount of money, both are worth considering. However, it is definitely in your best interest to avoid payday loans.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

]]>
FirstCash Holdings: Profit taking (NASDAQ: FCFS) https://puroveinte.com/firstcash-holdings-profit-taking-nasdaq-fcfs/ Wed, 09 Nov 2022 23:07:00 +0000 https://puroveinte.com/firstcash-holdings-profit-taking-nasdaq-fcfs/ Martin157900 A few months ago, I launched the cover of FirstCash Holdings Inc. (NASDAQ:FCFS) with a bull article. My main bullish thesis is that countercyclical pawnbroking is poised to outperform during the current tough economic times. While I keep on Like FirstCash’s countercyclical pawnbroking business, I’m increasingly worried about an impending recession and its impact […]]]>

Martin157900

A few months ago, I launched the cover of FirstCash Holdings Inc. (NASDAQ:FCFS) with a bull article. My main bullish thesis is that countercyclical pawnbroking is poised to outperform during the current tough economic times.

While I keep on Like FirstCash’s countercyclical pawnbroking business, I’m increasingly worried about an impending recession and its impact on the cyclical POS LTO business. After a quick 20% gain on my bullish call, I recommend investors take profits and look for opportunities elsewhere.

Brief overview of the company

For those unfamiliar with FirstCash Holdings Inc., the company is the largest pawn shop operator in the United States and Latin America, with over 2,800 outlets. FirstCash also operates a point-of-sale (“POS”) payment solution that offers hire-purchase (“LTO”) loans to consumers with limited credit.

Unlike other forms of consumer lending such as payday loans, the credit risk associated with pawn loans is very low because the loan receivables are fully secured at a fraction of the market value of the collateral.

Historically, the use of pawnbroking services has tended to be countercyclical as financially strained consumers increase their use of alternative credit solutions like pawnbrokers under difficult economic conditions. In fact, US FirstCash stores saw their pledge receivables increase by 50% during the 2008 financial crisis (Figure 1).

Pawnbrokers are countercyclical

Figure 1 – Pawnbrokers are countercyclical (FCFS investor presentation)

The 2020 COVID pandemic was an unusual economic downturn as pledge receivables actually declined for FirstCash. This was likely because government stimulus checks had been issued to help financially strained consumers, often beyond their monthly income. For example, according to a recent CNBC article Looking at the lessons from the COVID stimulus, we can see that those earning less than $10,000 in adjusted gross income received over $3,900 from the 3 rounds of COVID stimulus, or over 39% of their gross income. Similarly, those earning between $10,000 and $20,000 received nearly $4,800 in COVID stimulation (Figure 2).

COVID stimulus checks

Figure 2 – COVID stimulus checks (CNBC)

However, with the end of government stimulus measures and inflation weighing on household budgets, the use of pawnshops has increased in recent quarters.

Excellent results in the third quarter confirm the thesis

Figures reported by FirstCash in their latest quarterly results certainly confirmed my bullish thesis on pawnbroking. Q3/2022 consolidated revenue increased 68% year-on-year to $672 million and adj. EPS rose 55% year-on-year to $1.30, easily beating Wall Street estimates of $1.17/share.

In my opinion, the highlight of the quarterly release was management’s outlook for 2022 and beyond as it relates to the pawn sector. In the management’s own words:

Cash-to-customer funding (new pawns and direct purchases of goods from customers) in the United States and Latin America remain exceptionally strong, with October funding above pre-pandemic comparative levels in 2019 and growth continued double-digit same-store pawnbrokers over the past year.

– FirstCash Q3/2022 press release

Looking at the details, we can see that US pawnbroking grew 15% year-on-year to $280m, surpassing the Q3/2019 level. Similarly, within the Latin American segment, pledge receivables increased 17% year-on-year to a record $125 million (Figure 3).

FCFS Pawn Operation Metrics

Figure 3 – FirstCash token operating metrics (Author created with data from company press releases)

Crucially, I believe there is still plenty of room for growth for pawnshops over the next few quarters, as loan volumes are still low relative to historical numbers.

For example, in the US segment, if we look at the additional operational metrics provided by the company in its press releases, we can see that the average loan size in Q3/2022 was $232, compared to $167 in Q3/2019. . This means that the total number of loans outstanding in Q3/2022 was 1.2 million ($280 million in receivables divided by $232), a decrease of 25% from 1.6 million loans in Q3/2022. 2019.

Per store, the average store had only 1,120 loans outstanding in Q3/2022 compared to over 1,500 loans in Q3/2019 and over 1,700 loans at the peak of 2017. Similarly, in the Latin American segment, the number of loans per store was 894 in Q3/2022 compared to 1,083 in Q3/2019 and more than 1,200 at the peak of 2017. As a result, FirstCash still has plenty of room to do more pawnshops, provided that it has the balance sheet capacity to extend them.

Amended Revolving Credit Facility Supports Additional Growth

To meet balance sheet capacity, FirstCash amended its revolving credit facility at the end of August, increasing the size from $500 million to $590 million with an additional $200 million accordion function.

This new credit facility should give FirstCash more than enough runway to grow its loan receivables over the next few quarters, as only $338 million has been drawn as of September 30, 2022 (Figure 4).

Modified FirstCash Credit Facility

Figure 4 – Amended FirstCash Credit Facility (FCFS Report Q3/2022 10Q)

Profitable LTO POS so far…

One of the key risks I highlighted in my previous article was America First Finance’s (“AFF”) LTO POS payments business which FirstCash acquired in December 2021 for $1.17 billion. Management feedback so far suggests that the LTO business continues to perform well despite the economic headwinds.

AFF continued to grow its market share in the LTO space, with approximately 8,600 active retail and e-commerce merchant partners in Q3/2022, a 40% year-over-year increase. Adj. segment operating profit totaled $28 million in Q3/2022 and $78 million year-to-date.

Provision for loan and lease losses was about 31% of adjusted revenue, showing how risky customers are (Figure 5).

AFF-segment

Figure 5 – FirstCash AFF segmented financial data (FCFS press release Q3/2022)

… But will it continue to be in recession?

While LTO and pawn both serve the same limited credit customer, the two companies have subtle but important differences in operations and credit management. As mentioned above, pawnbroking tends to have very low loan losses because loan receivables are fully collateralized and the pawnbroker lends only a fraction of the market value of the merchandise. The customer also brings the merchandise to the store, so operationally it’s very efficient.

On the other hand, the LTO business lends on the retail value of the commodity. Although LTO lease payments are priced to account for high potential loan losses (more than 30% according to AFF’s financial statements), the actual loss rate is variable and can be influenced by the economy. Additionally, customers tend to keep merchandise at home (a major category for LTO is furniture and big-box items like televisions), and repossessing merchandise in the event of a defect can be inconvenient. .

Traditional LTO players like Aaron (NAA) and Rent-A-Center (RCII) have extensive store networks, so when customers don’t pay, merchandise can be picked up and put back into circulation quickly. Although the AFF allows customers to return goods to FirstCash pawnshops, it is unclear how successful this will be if economic conditions deteriorate and defaults increase. A small footprint pawnshop is probably not designed to handle large furniture or appliances.

Finally, AFF was only launched in 2013, so the POS LTO business model was never tested in a real recession. Unfortunately, according to conference board and other economic forecasters, a recession in the United States is virtually a foregone conclusion over the next 12 months (Figure 6).

Probability of recession in the United States

Figure 6 – 96% probability of recession in the United States (Conference)

The techniques suggest a break

Technically, after aggressively recovering from the strong Q3 2022 earnings report, FirstCash has hit resistance near 2019 highs that will take time to overcome. I wouldn’t be surprised if the stock consolidates here for a few weeks at least (Figure 7).

FCFS stalling at resistance

Figure 7 – FCFS stalling at resistance (Author created with price chart from stockcharts.com)

The next big catalyst for FCFS is Q4 2022 earnings which are not expected until early 2023.

Even more stretched valuations

After the recent rally, FirstCash’s valuation has further stretched relative to the financial sector. FCFS is now trading at 18.7x Fwd P/E versus 10.3x for the sector. As a reminder, the valuation was only 16.1x when I wrote my primer article a few months ago (Figure 8).

FCFS valuation even more stretched

Figure 8 – Even tighter FCFS valuation (Looking for Alpha)

Conclusion

While I continue to like FirstCash’s countercyclical pawnbroking business, I am increasingly concerned about an impending recession and its impact on the cyclical POS LTO business. After a quick 20% gain on my bullish call, with valuations even more stretched, I recommend investors take profits and look for opportunities elsewhere.

]]>
How to reduce the cost of a cash advance https://puroveinte.com/how-to-reduce-the-cost-of-a-cash-advance/ Sat, 05 Nov 2022 14:05:58 +0000 https://puroveinte.com/how-to-reduce-the-cost-of-a-cash-advance/ If you already have a credit card, getting a cash advance is very easy. But it can also be super expensive. Before borrowing money from your credit card, make sure you understand how a cash advance works, how you can minimize cash advance fees, and whether there are better alternatives. How do cash advances work? […]]]>

If you already have a credit card, getting a cash advance is very easy.

But it can also be super expensive. Before borrowing money from your credit card, make sure you understand how a cash advance works, how you can minimize cash advance fees, and whether there are better alternatives.

How do cash advances work?

A cash advance is a way to borrow money from your credit card company. You can initiate your cash advance online, through cash advance checks sent with your credit card statement, or through an ATM.

To withdraw money from an ATM using a cash advance, you will need the PIN associated with your credit card. You will then need to agree to all cash advance fees before you can get your money. You may also incur ATM fees.

If you’re starting the cash advance online, you can set it up to be deposited directly into your checking account via an ACH transfer. You’ll also need to agree to any cash advance fees before you get your money this way.

Another way to get a cash advance is to use convenience checks that your credit card issuer sends with your statements. These may be provided with every statement, every few months, or once a year upon renewal, depending on your credit card issuer. As soon as you sign and submit the check, you agree to the terms of the cash advance.

Your cash advance limit may be lower than your credit card purchase limit. Check your documentation or contact your card issuer to find out your credit limit for a cash advance.

What makes credit card cash advances so expensive?

Cash advances are an extremely expensive way to borrow, even more expensive than using your credit card to make a purchase. Cash advances come with additional transaction fees and higher APR than regular credit card purchases. And that APR starts accumulating immediately unlike credit card purchases.

Transaction fees

The first expense to consider is transaction fees. These fees are usually between 3% and 5%. Typically, there is a minimum charge of around $10.

Let’s say you took out a $250 credit card cash advance with a 3% transaction fee, but a minimum transaction fee of $10. Three percent of $250 is $7.50, but that’s less than the minimum charge. You would therefore be charged a $10 transaction fee, even if it is higher than 3%.

But if you take out a $1,500 cash advance, 3% would be $45. Since 3% is more than the minimum transaction fee of $10, you would pay $45 in transaction fees.

High APR

Credit cards almost always have a high APR. But each card actually comes with at least two APRS: one for purchases, then another for cash advances. The cash advance APR is almost always higher.

This is true even if you sign up for a card with a 0% introductory APR. This 0% rate generally applies for a fixed period, say 12 months, and generally only applies to credit card purchases or balance transfers. It generally does not apply to the APR for cash advances.

Interest begins to accrue immediately

Not only do credit card cash advances come with a higher APR, but that interest starts accumulating immediately. With credit card purchases, you’ll enjoy a grace period and you won’t pay interest if you pay your balance in full by the due date on your first statement after purchase.

This is not the case with cash advances. There is no grace period. You start owing interest the moment the money comes out of the ATM (or is transferred to your bank account). Because interest starts accumulating immediately, it becomes much more expensive to pay off much faster.

What is the average cost of a cash advance?

The cost of your credit card cash advance varies depending on the amount you borrow. To simplify this analysis, let’s say you borrow $1,000. The average cash advance fees and interest rates on a cash advance are:

  • 3% to 5% transaction fees
  • 24.99% APR

On a balance of $1,000, your transaction fees can range from $30 to $50. With an APR of 24.99%, if you pay off your balance on the 30th day, you will owe approximately $20.83 in interest. If it only took a month to repay the money, the total financing costs would be between $50.83 and $70.83.

The longer it takes you to pay off the debt, the more it costs. Credit card interest is usually compounded daily. This means that what seems like a manageable amount of interest at first can quickly spiral out of control.

How to reduce the cost of a cash advance

A credit card cash advance is an expensive way to borrow, and one that you should avoid if possible. But if you find yourself in a situation where you absolutely need it, there are several ways to slow the bleeding. These are simple concepts, but they may not be easy to implement.

Minimize the amount you borrow

The fees and interest on your cash advance are a percentage of the amount you borrow. This means that one of the best ways to limit your interest and fees is to reduce the amount you borrow.

If you borrow this money to pay a down payment on a car loan so you have transportation to your place of work, maybe you don’t get the fanciest vehicle model. Instead, get something functional, safe and affordable without all the bells and whistles.

You can also try to negotiate with the dealer on the base price, which should reduce the amount required for a down payment by the bank.

Anything you can do to reduce the amount you borrow through a credit card cash advance is worth considering.

Repay your cash advance as soon as possible

Just trying to scrape together enough money to buy groceries until payday? Then be sure to repay your cash advance as soon as your paycheck hits your account.

Since interest is compounded daily, each day you owe money will significantly increase your amount owed, the longer it will take you to pay it off.

Cash Advance Alternatives

If you need cash fast, there are other products you might want to consider. Some are better than credit card cash advances – and some are worse.

Personal loan vs cash advance

Personal loans tend to be cheaper than cash advances if you have good credit. Unsecured personal loans don’t require any collateral, and you ideally want one with a fixed interest rate for predictable monthly payments.

If you have good to excellent credityou might expect these loans to come with a APR somewhere between 7% and 20%. If you have poor credit, however, interest rates could be even higher than cash advances.

Personal loans sometimes come with an origination fee, which is an additional fee, but is also already factored into the cost of the APR. If you take out one of these loans, the ideal is to find one without any prepayment penalty. That way, if you pay off the loan early to save money on interest, you won’t have to incur any additional expenses.

Also beware of personal loans with lump sum payments. With these loans, your monthly payment will be lower at the start, but you will only have one lump sum payment at the end. If you can’t afford the lump sum payment, you’re back to where you started – you need to borrow more money.

One downside to these loans is that they tend to have terms of at least one year, although you can find some with shorter terms. Another problem is that if you only need to borrow a few hundred dollars, most financial institutions offer a minimum amount between $500 and $1,000. So you might end up borrowing more than you need.

In many cases, a personal loan is preferable to a cash advance. But keep in mind that if you have bad credit or the interest rate offered to you is over 20%, this might not be the case. Run your own personal numbers with care.

Payday loan vs cash advance

The interest rate announced by payday loan lenders are rarely in terms of APR. If it did, it would often be over 100%.

Different states have different laws governing exactly how much payday lenders are allowed to charge, but even still, a cash advance will be considerably cheaper than a payday loan.

Borrowing money from family and friends versus a cash advance

If you are in a difficult financial situation, you can always ask a family member or friend for help. Depending on your relationship and the amount of money, they may keep the debt informal or draw up a formal contract with or without interest.

Before borrowing money from family or friends, make sure you can afford to pay them back in the near future. If you can’t, it can hurt your relationship. However, if you can find a favorable and realistic arrangement, this method is likely to be less expensive than taking out a cash advance.

Ask for help or cash advance

Take a cash advance to cover something like a utility bill? There may be a program to help you so you don’t have to borrow from your credit card company.

For utility bills in particular, there are usually two options: payment plans or charitable aid programs.

If your utility company offers you a payment plan, they may be willing to spread your current balance over several months, making repayment more achievable than paying it all in one lump sum. They can also set you up with a plan that estimates equal payments over the course of a year, so you don’t pay $20 for heat in July and $300 in January. Instead, you might get a more stable monthly bill of $150 or something.

If there is a state, government, or charitable program associated with your utility, it may have funds available to help people going through economic hardship. It may hurt your ego to apply for a program like this, but the amount of interest and main, it saves you money and helps you keep the lights on without going into unaffordable debt.

Brynne Conroy, a Pittsburgh-based writer, is the founder of the blog Femme Frugality and the author of “The Feminist Financial Handbook.” She is a regular contributor to The Penny Hoarder.


]]>
OMNIS Wins Halloween Business Idea Pitch Contest https://puroveinte.com/omnis-wins-halloween-business-idea-pitch-contest/ Thu, 03 Nov 2022 19:26:03 +0000 https://puroveinte.com/omnis-wins-halloween-business-idea-pitch-contest/ Body of the review The fourth edition Halloween Presentation Contesthosted by the New business accelerator and the Herbert College of Commercesaw 19 teams compete for $5,000 in seed funding, in front of a panel of industry pro judges inside the Broadway Event Space and Theatre. Once the scores are counted, OMNIS emerged victorious and received […]]]>

Body of the review

The fourth edition Halloween Presentation Contesthosted by the New business accelerator and the Herbert College of Commercesaw 19 teams compete for $5,000 in seed funding, in front of a panel of industry pro judges inside the Broadway Event Space and Theatre.

Once the scores are counted, OMNIS emerged victorious and received $2,000 from the prize pool. OMNIS is a participatory social platform where individuals borrow money through short-term community and peer-to-peer microloans, and where others can borrow money to meet their immediate needs.

Zakariya Veasy, a senior software engineering specialist, founded OMNIS to solve the problem of people with limited credit histories being marginalized by traditional banks and exploited by predatory payday loan companies. “Far too often, the underbanked and unbanked are forced to turn to high-interest payday loans to stay afloat at 400% interest on average,” Veasy said. “The value proposition for OMNIS users is that it builds credit for underserved and neglected demographics. With OMNIS, users build community financial literacy and close generational wealth and credit gaps at across the country.

Other teams that have received funding include:

  • Rodopto, founded by Scott Rowe, uses drones to plant crops that can be converted into renewable diesel fuel and received $1,000.

  • Stretch & Go, founded by Josh Green and Tristin Pettus, is a device providing the critical method for stretching the hamstrings awarded $500

  • BAE, founded by William Murphy and Avery Arasin, is an app that allows students to connect with other students within their own college ecosystem awarded $500

  • AbGlo, founded by Marianne Madsen, Holli Michaels and Courtney Montague, is a fitness device that provides visual feedback to correct lower back posture received the $1,000 Special Category Award provided by the Thomas Walter Center for Technology Management.

The Halloween Business Idea Pitch Contest discovers and rewards early-stage business products, services, or concepts emerging from Auburn University students. Winner of last year, Room2Room Moversfounded by Brooks Fuller, a recent graduate of Harbert, is currently experiencing significant commercial success.

Special recognition and appreciation goes to the judges who supported this year’s competition:

Comments that competing teams share each year are that, while the prize money is important, ideas and offers of support from alumni, which will help them in their longer-term business planning efforts, are a long way off. the most valuable elements of the experience. It proves once again that the people of Auburn always come back and always give back.

Congratulations to all the teams that participated in the Halloween 2022 pitch contest: Atlas Esports – AbGlo – BAE – Balance Buddy – Bridal Jeans – Drop Out Flags – Flavivirus Resource Center – Gym Rat U – HyperTransport – Kaopetronite – LoLo Baking – Menu Match – OMNIS – Plainsman Financial Consulting – Rodopto – Seat Key – Stretch & Go – Tennis Taps – Your future is today.

NEXT : tiger cage where start-ups will compete for $50,000 in start-up capital!

Applications to participate in Tiger Cage must be submitted by November 16, with the competition starting on January 27.

To sign up for Tiger Cage, click here or contact Lou BifanoDirector of the New Venture Accelerator at loubifano@auburn.edu for more information.

]]>
How to apply for a payday loan with Viva Payday Loans today https://puroveinte.com/how-to-apply-for-a-payday-loan-with-viva-payday-loans-today/ Mon, 31 Oct 2022 19:17:10 +0000 https://puroveinte.com/how-to-apply-for-a-payday-loan-with-viva-payday-loans-today/ A payday loan can be your solution if you need money quickly. Applying for a payday loan is easy, and Viva Payday Loans can help you get the money you need with as little hassle as possible. In this blog post, we’ll walk you through the application process step by step to get your loan […]]]>


A payday loan can be your solution if you need money quickly. Applying for a payday loan is easy, and Viva Payday Loans can help you get the money you need with as little hassle as possible.

In this blog post, we’ll walk you through the application process step by step to get your loan approved as quickly as possible.

What is a payday loan and why is it important?

A payday loan is a short-term loan where you can borrow money against your next paycheck. Payday loans are usually small, ranging from $100 to $500, and are meant to help you out until your next payday.

Payday loans can come in handy in a variety of situations, including paying for an unexpected car repair or covering a bill due before your next paycheck arrives. Whatever the reason, a payday loan can give you the financial help you need.

Payday loan application process with Viva Payday Loans

Applying for a payday loan with Viva Payday Loans is quick and easy. We understand that when you need money, you need it fast. that’s why we offer fast payday loans online. Below is a step-by-step guide on how to apply for a payday loan with us:

1. Fill in your personal information

First, complete our online application form with your personal information. This includes your name, contact information and employment information. Next, please select the amount you need and how long you intend to pay it back.

Once you have done this, click “Apply Now” to apply for the loan. We will then review your application and decide whether or not to approve the loan. We will then contact you to inform you of the outcome of the decision.

2. Provide proof of income

The next step is to provide proof of your income. This can be in the form of a pay stub, bank statement, or other type of document proving that you have a regular source of income. Once you have provided this information, the lender will usually ask you to fax or email it, after which they will review your application and make a decision.

If you are approved for a payday loan, the lender will usually deposit the money into your bank account the next business day. You can then use the money for whatever purpose you see fit. Just be sure to repay the loan on time, as failure can result in high fees and interest.

3. Fill in your bank details

Once you have provided proof of income, the next step is to provide us with your bank details. This includes your account number, routing number, and name as it appears on your statement. You may also need a social security number to perform a soft credit check.

This will not affect your credit rating and is used to verify your identity and to ensure that you qualify for a loan. With this information, we can deposit your loan money directly into your account and set up direct debits so that you can pay off your loan without hassle.

4. Accept the fees and terms

Once we have all the necessary information from you, we will review your loan agreement. This document will outline the terms and conditions of your payday loan, including the repayment schedule, fees, and interest charges. Please take the time to read and understand this agreement before signing it.

If you have any questions about the loan agreement, our customer service representatives will be happy to help you. Once you are ready to sign, electronic sign online or return the signed contract by fax or mail. We will process your loan and get your money as soon as possible!

5. Receive your loan

You will receive your loan in one business day or less if you are approved for a payday loan with Viva Payday Loans. The funds will be deposited directly into your bank account and you can use them immediately.

That aside, Viva Payday Loans offers plenty of convenient repayment options. You can choose to pay off your loan in full on your next payday, or you can make smaller payments over a period of time. There are no penalties for early repayment; you will not be charged interest until you have taken out the loan.

Final Thoughts

Applying for a payday loan with Viva Payday Loans is simple and convenient. The application process only takes a few minutes and you can apply for a loan online or over the phone. Once you submit your request, the funds will be deposited into your bank account within 24 hours.

This is paid advertising. The loan websites reviewed are loan matching services, not direct lenders. Therefore, they are not directly involved in the acceptance of your loan application. Applying for a loan with the websites does not guarantee acceptance of a loan. This article does not provide financial advice, please seek the assistance of a financial advisor if you need financial assistance. Loans available only to US residents. The owner of the loan website(s) may be paid by a third party if you apply for a loan.

]]>
How to Choose the Best Loan Company for Bad Credit https://puroveinte.com/how-to-choose-the-best-loan-company-for-bad-credit/ Thu, 27 Oct 2022 21:33:45 +0000 https://puroveinte.com/how-to-choose-the-best-loan-company-for-bad-credit/ A loan for bad credit is a personal loan for consumers in credit difficulty. It is relatively easy to apply and most lenders make quick loan decisions and offer quick funding turnarounds. You may also qualify for a bad credit loan if you have little or no credit history, and most lenders generally don’t limit […]]]>

A loan for bad credit is a personal loan for consumers in credit difficulty. It is relatively easy to apply and most lenders make quick loan decisions and offer quick funding turnarounds. You may also qualify for a bad credit loan if you have little or no credit history, and most lenders generally don’t limit how funds can be used.

These loan products usually come with high interest rates because they are risky for the lender. It is therefore important to shop around to find the best deal. But the interest rate on most bad credit loans is fixed, so the monthly payment amount won’t change. Loan proceeds are allocated in a lump sum and payable in equal monthly installments over a specified period.

Before applying for a loan for bad credit, understand the loan types to identify the best option and select a loan term that suits your financial situation. You also need to be prequalified, calculate loan costs, and evaluate lenders based on their reputation and the incentives they offer.

1. Know what type of bad credit loan you need

There are four main types of bad credit loans: secured, unsecured, payday and cash advance. Some require collateral, which makes them riskier for the borrower. Here’s what to know about each option:

  • Cash advance: This expensive option is available from some credit card issuers and involves withdrawing funds from your credit card’s available balance. The amount you borrow will be added to your existing account balance, but you can expect to pay a higher interest rate than that charged for purchases made with the card.
  • Secured loan: You will need collateral to get approved for a secured loan, and the lender may seize your property and sell it to recoup their losses if you are late on payment. The advantage is that these loan products are easier to obtain if you have bad credit. Also, the rate will usually be lower than what you would get with an unsecured loan.
  • Unsecured loan: You won’t need collateral to qualify and could qualify for a hefty amount. The downside is that your interest rate will be higher with a lower credit score.
  • Payday loan: A payday loan can be used as a last resort if you cannot qualify for a personal loan or borrow from family or friends. It is a short term loan of $500 or less. It comes with an excessive interest rate, usually in the triple digits, and is payable on the day of your next payday. Moreover, they can lead to a dangerous cycle of debt if you are forced to extend the term of the loan.

2. Choose the loan terms that suit you best

Most bad credit loans have repayment periods of between two and five years (with the exception of payday loans, which are due on your next payday). It can be tempting to opt for an extended term loan product to get a more affordable payment. However, making the balance longer means you’ll pay more interest over time, making a shorter loan term ideal if you want to pay off what you owe faster and save a lot of interest.

Use a loan calculator to calculate the difference between monthly payments and interest charges for different repayment periods. This will give you a better idea of ​​what to expect and help you choose the best loan term for your financial situation.

3. Pre-qualify or try to determine what your offers would be

Get prequalified online with the lenders you are considering to assess your chances of approval. The process is simple and can usually be completed online in minutes without hurting your credit score, as it only requires a soft credit check. If there’s a match, you can view potential loan offers, including loan amount, term, interest rate, and monthly payment, before moving forward with a formal request.

4. Calculate loan costs

Once you’re prequalified with a few lenders, compare the interest rates on offers for the same loan amount and repayment period to determine which are the most competitive. Evaluate each lender’s fees before making a formal request.
You might find that one lender charges a higher interest rate but far less in fees than another option with a much lower rate. And in this case, they might be the best choice to minimize overall borrowing costs.

5. Review customer experience and reviews

The lender should offer customer support by phone, online, or both at times that suit your busy schedule. It’s also essential that the application experience is seamless and that the lender allows you to manage your loan online.

Also, you should look online for reviews to get an idea of ​​the level of service they offer. It’s not unusual to see a few negative reviews here and there, but most should indicate a satisfying customer experience. Otherwise, you may want to look elsewhere to borrow the funds you need.

6. Identify helpful perks

In addition to giving you a seamless application experience and fast funding, some bad credit lenders offer other perks to help improve your overall financial health. For example, you can have free access to your credit score directly from the online dashboard. Or there may be an assortment of financial tools, including calculators and educational articles, to provide the information needed to make sound financial decisions in the future.

7. Beware of predatory lenders and scams

Loans for bad credit are readily available from several financial institutions, both physical and online. Not all lenders are the same and some should be avoided. Some lenders may even be crooks.

Avoid lenders that aren’t registered to do business in your state, offer guaranteed approvals without a credit check, or require an upfront payment to approve you for a loan. It is equally important that they have a secure website and a physical address.

At the end of the line

Several loan options for bad credit could be suitable. But before applying for a loan, research loan types and shop around for quotes. When narrowing down your options, you also want to evaluate lenders based on their reputation, loan costs, terms, and customer service to find the best one for you.

]]>
In a pinch? Here are the four loans you can get the fastest https://puroveinte.com/in-a-pinch-here-are-the-four-loans-you-can-get-the-fastest/ Sun, 23 Oct 2022 14:30:49 +0000 https://puroveinte.com/in-a-pinch-here-are-the-four-loans-you-can-get-the-fastest/ Image source: Getty Images When you’re in a bind and need cash fast, it’s important to know what your options are. There are different types of loans that you can get relatively quickly, depending on your needs. Before taking out a personal loan, it’s important to understand the different types of personal loans and find […]]]>

Image source: Getty Images

When you’re in a bind and need cash fast, it’s important to know what your options are. There are different types of loans that you can get relatively quickly, depending on your needs. Before taking out a personal loan, it’s important to understand the different types of personal loans and find the one that’s right for you. Here are four of the most common.

1. Credit cards

If you have good credit, you may be able to get a cash advance on your credit card. This is usually a quick and easy process, but it will come with high interest rates. So if you are able to repay the loan quickly, this could be a good option. Cash advances can be very useful in an emergency situation when you need money immediately.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

Another advantage of using a credit card for a cash advance is that you may already have money available on your line of credit that you can use. This can be useful if you don’t want to take out a new loan or use other assets as collateral. However, using a credit card for a cash advance also has some drawbacks. First, as mentioned earlier, interest rates on cash advances are usually very high. This means that if you don’t repay the loan quickly, you could end up paying a lot of interest. Also, most credit cards have limits on how much you can borrow as a loan. So if you need a large sum of money, this might not be the best option.

2. Payday Loans

Payday loans are one of the fastest ways to get cash, but they come with high interest rates and fees. They’re usually only for small amounts of money, so if you need a lot of cash quickly, they’re probably not the best option. However, if you just need a little extra money to last you until your next paycheck, a payday loan might work. Payday loans are not ideal, Nevertheless. These are short-term, high-interest loans, usually due by your next payday in a single amount. Currently, 37 states regulate payday loans due to their high costs.

Payday loans are usually for $500 or less and are due on your next payday. Depending on state laws, people can get payday loans online or through a storefront lender. A typical two-week payday loan can have annual percentage rates (APR) as high as 400%. By comparison, credit card APRs can range from 12% to 30%. Payday loans should be considered an option of last resort.

3. Pawnbroker

Pawnbrokers are short-term loans secured by an object of value that people bring to a pawnbroker. As they are backed by the value of the object, they are cheaper than payday loans but are more expensive than a conventional loan. Pawnbrokers are regulated by the government. This type of loan is ideal for people who need cash quickly without a credit check.

Loan terms vary by pawnbroker. People can use valuables, such as jewelry or electronics, to get a loan based on the value of the item. No credit check is required. Those who may not qualify for a traditional loan can consider a pawnbroker. Once the loan amount is paid off, you will receive your items. If you don’t pay it back, the pawnbroker can seize the secured items.

4. Securities Lending

Title loans are another quick way to get cash. They are short lived secured personal loans supported by your car. Financial institutions put a lien on your car. If you are unable to repay the loan, they can seize your car, as it is used as collateral. Title loans generally do not consider your credit and can be approved quickly. However, a title loan is very expensive, with an APR of around 300%.

These are four of the most common types of loans that you can get relatively quickly. Consider which one best suits your needs and compare interest rates and fees before you apply. Understand how these personal loans work can help you make a smarter decision.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

]]>
Here’s how to start building your net worth now https://puroveinte.com/heres-how-to-start-building-your-net-worth-now/ Mon, 17 Oct 2022 11:00:47 +0000 https://puroveinte.com/heres-how-to-start-building-your-net-worth-now/ Yulia Grigoryeva / Shutterstock.com When you think of the term “net worth,” you might imagine middle-aged people investors discuss the stock market or their real estate portfolio. But many financial experts agree that the best time to start thinking about your net worth is in your twenties. The future of finance: Gen Z and how […]]]>

Yulia Grigoryeva / Shutterstock.com

When you think of the term “net worth,” you might imagine middle-aged people investors discuss the stock market or their real estate portfolio. But many financial experts agree that the best time to start thinking about your net worth is in your twenties.

The future of finance: Gen Z and how they relate to money
After: 5 things you need to do when your savings hit $50,000

These years provide an early opportunity to pay off debt, increase your income, and start investing, setting you up for future financial success.

So if you’re ready to start minimizing your debt and increasing your assets, here’s what financial experts recommend.

Start saving and investing as soon as possible

According to a recent GOBankingRates survey, the majority of Gen Z (43%) have yet to start investing.

Among young people who invest, the majority (24%) put their money in real estate. Other popular investment strategies among Gen Z include stocks (22%), 401(k) or IRAs (17%), mutual funds or ETFs (14%), and cryptocurrency ( 11%).

Choosing to invest at a young age requires seeing the financial big picture, which can be difficult, said Benjamin Koval, CFP and founder of SoundPath retirement strategies.

“Everyone wants to have a financially healthy retirement, but many are too caught up in the day-to-day of their lives to prepare well,” he said. “While it’s true that certain short-term priorities need to be addressed first, the effects of compound interest make saving early much more beneficial than trying to catch up later in life.”

For this reason, he recommends young people set up automatic transfers to retirement accounts and other investments. It’s easier to start investing a set amount of money — and stay consistent — if you never see it in your bank account to begin with, he noted.

Take our poll : Do you believe in quiet stopping?

Develop good financial habits now instead of later

Rising inflation has put a strain on the finances of many people, including Gen Z. GOBankingRates found that most young people (nearly 27%) spent 21% to 30% of their income on rent or housing, more than 18% were spending 31% to 40% of their paycheck and a further 18% are spending 41% to 50%.

These high housing costs may not leave much room for savings and investment. It is therefore even more important that young people develop sound financial habits now.

“Be aware of how you spend your money,” said Carlos Legaspy, wealth manager and CEO of Insight Securities. “Often shopping is impulsive and you arrive at payday not knowing where your previous paycheck went.”

To make it easier to save, Legaspy recommends making a game out of it. Look for the satisfaction of finding discounts, cutting coupons, and getting great value for your hard-earned money.

“Bottom line,” he said, “you have to spend less than you earn.”

Save half your raises for your future self

A Common Mistake Andrew McNair, Investment Advisor and President of SWAN Capital – sees young people being overly cautious about investing in their 401(k)s.

“If you’re generally happy with your current lifestyle, I recommend splitting every future raise — 50% for yourself now and 50% for your ‘future self,’” he said. “Then set an Apple or Google reminder every six months to increase your 401(k) by 1% and remember to rebalance your allocations while logged in.”

Take advantage of recessions

It’s easy to panic when a recession sets in, especially if you’re young with student loans, high rent or mortgage payments, and mounting responsibilities.

But instead of fearing recessions, McNair encourages Gen Z to view them as opportunities.

“If you have a 20-year investment horizon, put on blinders during market declines,” he said. “Think of recessions as opportunities to buy additional stocks while selling.”

Beware of fad investments

It can be fun to sit down with your friends and discuss the latest investing fads, but watch out for “pub tips,” Koval warned.

“The world is full of people sitting at the local bar talking about how the uranium mines off the coast of Peru are the best investments you can make,” he said. “Worse still, the many sales organizations try to convince the world of how they have the inside knowledge to make you rich. There may be a place in an investment strategy for speculative investments – risk tolerance permitting – but most of your funds should be in more traditional vehicles.

As a youngster, time is your friend, which makes more traditional investments like the S&P 500 a safer option than current trends like Bitcoin, he added: “Don’t get so caught up in a fad. that you are exposing yourself to unnecessary risks. ”

More from GOBankingRates

This article originally appeared on GOBankingRates.com: Gen Z: Here’s how to start building your net worth right now

]]>