Oil Prices – How Low is Low?

Thanks to oil producing countries in Middle East, particularly Saudi Arabia, the production of oil has pushed through an all-time high of 50 dollars per barrel. It’s the lowest it has reached since 2017.  US President Donald Trump hailed this drop, which is a huge decrease of 32% from its most recent peak.

On the other hand, despite lower gas prices, this drop is not likely to return net gain for US economy. According to experts…

“Where some made gains from the lower oil prices, some are losing on the other end.”

How much do US Depend on Imported Oil?

These days, US is more independent in terms of energy than it were for the past decade. To date, net petroleum imports have gone down 14% of total US consumption of petrol from 60% in 2005. The IEA or International Energy Agency firmly believes that the US will soon start exporting oil than importing it. This is from the first time the country has done so in the 50s, which can mark stark reversal.

In midyear of the New Millennium, a technique called hydraulic fracturing was introduced and used by different countries, which can be seen in WOT. This is a process to which liquid is injected into the ground at very high pressure in order to loosen oil reserves. As a result, it becomes economically viable and easier to pump crude oil even from shale deposits.

With the rise of new technology as well as increasing oil prices globally, allowed wells in North Dakota and Texas has expanded operations resulting to the demand of various professionals including truck drivers, diesel mechanics and anyone who are involved in oil production. And not to mention, all these jobs have high pay grade.

As a matter of fact, there are around 1.7 million jobs that have been opened and created due to fracking. This is in accordance to the data provided by US Chamber of Commerce. However, the study is also attributed to the increased perils and threats of water contamination and earthquakes.

Should we Go Low or High? It should be Somewhere in the Middle

The increased domestic production indicates as well that several parts of US economy become exposed than they’re used to when prices start to fall. The lower oil prices obviously mean that there’s less revenue. This can potentially result to reduced capital expenditures and layoffs. Grocery stores, restaurants and hosts of ancillary businesses that are relying on oil industry workers might lose the moment when producers pulled back.

While oil prices are threatening certain US regions, the country’s economy as a whole is still cushioned from worst case scenarios. It’s a big thanks to vast diversification that the country has. The lower prices of one barrel of oil indicates lower costs as well as improved margins among businesses which utilize big volumes of it – think of freight and shipment companies.

Smarter Ways of Spending Your Money

Does it ever happen to you when you badly need cash and it happens that your wallet is empty? This puts anyone in a frustrating and stressful situation.

Regardless of how big or little money you have, spending smartly is always a good idea.

This allows you to make the most out of your finances.

By following the tips that are discussed in this article, you won’t just be able to reduce your expenditures but also, you’ll learn how to adopt safer overall approach when shopping. If you are ready for a whole new method of spending, then it’s strongly recommended that you read the entire content of this article.

Tip number 1. Make a Budget

Monitor both your income and spending. This will play a vital role in having accurate view of how your finances go at the moment. It will be wise as well to write down your expenses in a notebook and save receipts of items you buy. Then at the end of each month, review it all and get the total of your expenses. Once done, check where you can reduce or make adjustments.

Tip number 2. Plan Purchases ahead of Time

Impulsive decisions when shopping or buying can easily balloon your overall expenditures. Luckily, there is a simple way of preventing this from happening. You can write down whatever you need to purchase while at home and you are at your right mind.

Tip number 3. Shop Alone

Friends who are fond of shopping, children or even just a close friend whose preference you respect influences yours can also add to your expenses at the end of your shopping. Thus, if you know that you are easily influenced by other people’s decision, better do the shopping alone.

Tip number 4. Pay in Cash and in Full

Debit and credit cards can effortlessly increase your spending for a couple of reason for one, it gives you more money to spend than what you really can and since no visible money is on hand, it does not register as if you made a real purchase. Likewise, utilizing delayed payment scheme would make it difficult to realize how much you are spending on a daily or monthly basis. Besides, if you bring this to Tucson accounting services, they will suggest to refrain from using such, unless it is an urgent matter.

Tip number 5. Think beyond Marketing

Outside influences are big factor that affects how we spend our hard earned money. So be watchful and aware of all reasons why you are drawn to the product and not just base everything on the marketing associated to it.

What You Need To Know About Bitcoin Loans

Will you take the chance to get a loan in this unpredictable currency for such low-interest rates and without the need for credit requirements?

Just like everything else around Bitcoin, using this cryptocurrency to get a loan is not the same as financing loans in dollars. The interest rate tends to be low, and your credit standing doesn’t really make a difference, the money emanates from individuals and not from financial institutions. But taking a loan against bitcoin is also riskier. Learn more about bitcoins through pheeva.com.

Bitcoins, How They Work?

To better understand how loans via Bitcoins work, you have to really know what Bitcoin is. Bitcoin is entirely on the web. It is decentralized and no specific organizations, individuals or countries have control over it. This enables Bitcoin owners to trade with each other with no participation of third parties just like banking institutions.

Transaction records are published in an electronic ledger known as blockchain that virtually anyone can see. Blockchain depends on multiple anonymous computers, referred to as miners, to confirm the legitimacy of each transaction prior to joining the blockchain to avoid fraudulence. Blockchain is distributed to all users of bitcoin as opposed to it staying in one server. This is to avoid hackers from penetrating the blockchain system.

How Do Bitcoin Loans Work?

At a basic level, a Bitcoin loan works like a traditional term loan. You borrow money and pay it back with interest and fees for an established time period. You can actually pay by set installment or at one-time payment. This really depends on the lender and your choice. Short term Bitcoin Loans and Bitcoin lines of credit is also available for borrowers.

This is the end of most similarities. Since Bitcoin is not associated with virtually any central authorities or banking organization, your standard Bitcoin loan will come from other users of Bitcoin. You will likewise have to charge any commission for the current exchange rate to your fee.

The simplest method to obtain a Bitcoin loan is usually to link the investor (lender) to the borrower by using a peer-to-peer system, generally for a price. You will first need to open an account and wait for it to be verified in order to connect to potential lenders.

Bitcoin Lenders

Bitcoin lenders do not depend on standard methods of assessing your credit standing, including your credit rating. Rather, the system offers you a trust rating depending on how much they are able to validate your identification and credit history – at times known as credit rating or standing. To obtain a high level of trust, you may be required to submit a lot of documentation.

After verifying your account, you generally have to choose a loan type and then fill out an application form and submit. You potentially can receive a loan offer within a few hours and get funding at the moment you accept the offer.

General Rule to be Remembered Regarding Payday Advances

More often than not, payday lender receives a negative impression from the public. This is because people see them to be taking advantage of the financial challenges that applicants have and give high interests loan on a short term basis. But for those who are in need of payday advances, taking out such loan is the last resort for their predicament.

What Exactly are Payday Loans or Advances?

Technically, payday loan is small amount loan borrowed to be returned for short timeframe. Oftentimes, they’re paid on the next paycheck, hence the name.

A lot of people are taking advantage of payday loans contrary to popular belief.

This is to assist them in meeting financial setbacks like lacking of funds to pay for utility bills or if there’s an emergency to be addressed such as medical bill, car repair and whatnot.

A common period for this loan is 14 days with a limit of typically 500 dollars or less. However, there are lenders that are allowing applicants to loan to as much as 1,000 dollars. What truly makes this loan attractive is that, applicants do not necessarily need to have good credit rating to become qualified. On the other hand, you must know that this shouldn’t be used as a long term financial solution.

You must know that you’ll be charged with high refinancing fee that keeps accumulating month after month if you fail to repay the loan on the agreed date. If this is not addressed immediately, it will cause negative remark on your financial rating.

Who are the Candidates for Payday Loans?

Your credit score is never an issue when you apply for payday loan. However, there are other qualifications that must be met to be able to get an approval. Here are the basic requirements you must meet:

  • Be a resident of the state where the payday loan is offered
  • Submit proof that you have steady cash flow (job, alimony or other sources of income)
  • Provide bank account information and Social Security Number and;
  • Be of legal age (varies on the state you live)

So long as you meet these requirements, you can apply for payday loan and get high chances of approval.

Trading Bitcoin for Additional Daily, Weekly or Monthly Cash Flow

Bitcoins are the latest craze in digital currency and many investors and traders alike jumped in the bandwagon. Fact is, any exchange market trades Bitcoins or BTC. However, before you started doing so, let me remind you that it is quite a risk. Yes it is true that you can earn big sum of money in the process but, if you are being careless and mindless with your decisions, you can actually lose twice as much of your potential earnings. Thus, it is imperative to be cautious before making your next steps.

BTC is Synonymous to Real Money

To give you a better idea about BTC, it is actually a currency like real money but in digital form. It can be saved, invested on and spent. Cryptocurrencies has once circulated the market and huge interests of people have paved way for the rise of Bitcoin.

This trend started way back in 2009 by an anonymous person with a handle of “Satoshi Nakamoto”. Since then, BTC gained track and from the starting rate of just $2, it jumped quickly to $266. This had happened in just a short span of time from February to April.

A process called mining is used to generate Bitcoin which uses powerful and complex computer algorithms otherwise known as Blocks.

Three Ways of Generating Bitcoins

The moment when a block is decrypted, you are rewarded with 50 BTC. Normally, solving single problem is time consuming process, potentially it can take you a year or more. Don’t worry if you are not mathematically gifted. There are many other methods of getting BTCs. You will learn more about this as you read on.

  1. First is by directly buying BTCs where you simply exchange physical money for it much like any other normal transactions. It’s straightforward.
  2. Another way of having BTCs is by becoming a player in BTC market. A clear-cut way is to purchase a dedicated computer, install mining software and begin decrypting blocks. While this process is fairly easy, be ready for its turtle-like progress.
  3. You can go right to the market and find dependable and trustworthy Bitcoin exchanges. But before you make BTCs, you first have to sign up and create an account. This keeps you updated with all working and hottest Bitcoin stocks. You may trade BTCs at any trading platform online. If you want to learn more about this approach, you may simply visit http://vipsignals.trade.

There are many opportunities in getting Bitcoins. However, it’s best that you allot time understanding it first to really make the most of what you’re doing.

Robo-Advisors: Poised to Change the Future of Investment Management

Automation is fast invading the field of investment management. Artificial intelligence called Robo-Advisors are now offering cloud-based, computer-aided investment recommendations tailor fit to the wealth, risk tolerance and time span of an investor.

Operating online as financial management service providers, Robo-Advisors use a set of rules or computer algorithms, in determining the most appropriate product for a client. Its most noteworthy benefit are fees that are substantially lower than those charged by human wealth-management advisors.

Computer algorithms though depend on the business model set down by a Robo-Advisor.

Examples of Robo-Advisor Business Models

Robo-advisor services currently available to choose online, come in different business models but have common business traits. They all use advanced and sophisticated computer technology following a set of algorithms in offering auto investment platforms; usually involving Exchange Traded Funds (ETFs) such as stocks, bonds and other marketable commodities.

The fees charged are minimal, whilst the investment portfolio recommended are bespoke to a particular type of investment venturer; i.e. newbies, moneyed individuals, entities, or even human-based financial service companies. Communication with clients are generally coursed through emails, video chats or phones, instead of the conventional face-to-face approach practiced by human financial investment handlers.

A Robo-Advisor may have a business-to business model (B2B), therefore offering investment platforms to financial advisers seeking for appropriate investment products they intend to recommend to their own set of clientele.

Some others offer hybrid services of furnishing automated investment platform and of giving access to highly trained financial consultants. This model affords wealthier investors the automated investment tools, options and human insights that will empower them to manage financial assets on their own, using a single automated platform.

In not limiting the availability of cloud-based automated investment platforms to wealthier investors, there are online Robo-Advisors centered on offering goal-based investment services to newbies or beginner venturers. This business model do not require a minimum investment amount. Its investment portfolio is built in ways that minimize taxes on earnings, and are tailor fit based on investor’s account fund, and on information individually submitted as answers to a set of personalized questionnaires.

What is a Fixed or Variable Interest Rate Loans?

In a financial setup, particularly when taking out a loan or giving out a loan, it’s important to understand the types of interest rate that is placed on top of your loan. While there are other forms of interest rates, there are two common types of loans used when taking out a loan, whether it be a mortgage loan, a personal loan, or even on quick loans – the variable interest rate and the fixed interest rate.

A variable rate loan is a type of loan where the interest rate of the outstanding balance changes as the market interest rate changes. Therefore, your payment will differ too when payment is combined with the principal of the loan

A fixed-rate loan is a loan that maintains a fixed interest rate over the life of the loan, regardless of market interest rates. This will cause payments to remain precisely the same for the whole period. Regardless of a fixed-rate financial loan or a variable loan will rely on the current interest rate at the time the loan is withdrawn and also on the term of the loan.

A loan with a fixed interest rate for its entire period means it maintains the current interest rate of the market at the time the loan was taken out plus or minus the specific spread of the borrower. In general, if the interest rate is relatively low however is almost going to increase, it is most beneficial to secure your financial loan at a fixed rate of interest. In accordance with the terms of your agreement, even if the interest rate rises to a higher level, your interest rate on the new loan will remain unchanged. In contrast, if the rate of interest is in a downward movement, then it is most beneficial to take on a variable-rate loan. This means that your interest rate will be reduced as the interest rate in the market also declines.

Which is a better interest rate? Fixed or Variable?

This conversation is basic, however, the reason will never turn into an even more difficult scenario. Research uncovered that as time passes, the borrower will probably pay a smaller interest in total having a variable interest rate loan compared to a fixed interest rate loan. Nevertheless, traditional trends are not always a measure of potential results. The borrower should also look into the amortization length of the loan. If the amortization of the loan is longer, there is a greater effect on the loan’s interest rate and the payments made.

As a result, in the context of falling interest rates, adjustable-rate mortgages (ARM) are good for borrowers, nevertheless, when interest rates surge, home loan repayments will spike dramatically. Make use of tools such as a Mortgage Calculator to calculate how your total mortgage amount will vary with respect to the type of mortgage you decide on.

Compound Interest: When and How It Works to Your Advantage or Disadvantage

Compound interest is touted as one investment element that rich people harness to keep their money growing. Instead of investing all excess or idle money into a new business venture, funds are placed on investment tools that have greater potential to grow by way of interests.

Once money earned as interest becomes new cash fund, it can simply be allowed to stay and form part of the original investment. The entire amount will then rollover as new investment. The invested amount now constitutes the original principal, plus the interest earned by that principal. Basically, interest is compounded, since money earned as interest will also earn as new investment.

Ideally, that is how compounded interest works if all conditions favorable to your investment are present.

Keep in mind though that investing in tools like shares of stocks, bonds, mutual funds and bank products such as time deposits or money market accounts, include risks that are dependent on current conditions. Putting all monies in a single investment tool exposes the entire fund to potential risks. That being the case, it is also important to know the degree of risks involved as well to keep abreast of conditions that could adversely impact an investment.

Compound Interests Can Also Increase Credit Expenditures

Have an awareness that purchasing by way of credit cards increases actual costs of the commodities purchased. Credit card companies make a profit by collecting interest on every amount paid for and in behalf of a credit cardholder. If a particular purchase is not settled on the due date, the interest on that particular purchase is then compounded.

Although credit card companies may seem to give some leeway for settling a credit card debt by recommending a minimum amount of payment, be in the know that this does not work to a cardholder’s advantage.

Minimum monthly payments usually apply as payment of the current interest due on an outstanding credit card debt. This denotes that the principal amount plus any unpaid compounded interests are not reduced; but instead, they remain subject to collection of past due interests and other penalty charges.

Continuing to purchase via credit cards and paying minimum amounts therefore increases the principal balance on which interests are compounded.

The worst part is that even if a cardholder increases his or her payment with an aim to reduce the principal, the money paid will first apply as payment of default charges, past due interests and the interest on principal. As a result, only a fraction of the amount paid will reduce the principal balance.