Budgeting

The Essential Options Trading Guide

Options come will a lot of advantages which ETFs and stocks cannot offer singlehandedly. However, the crux of the matter is its proper understanding and use. Multiple asset classes help construct investor portfolios. Options have a similar purpose and are powerful because it helps to enhance the collection of the investor. A particular circumstance will have an option scenario that applies to the goal of the investor. Generation of income of recurring nature is possible through options. Options can also be put to use when the stock market is declining. Brokerage Investment Accounts can be used to buy options, which is similar to any other asset class.

Options as derivatives-The best way to describe risk and a chance to decline the condition of the economy rests in the word derivatives. A wide variety of securities fall under the category of derivatives that includes forwards, swaps, etc. Options fall under the category of derivatives because an underlying asset decides their value.

Call and Put options-The options that provide you the right to purchase at a particular period of time in a specific price and sell a stock at a certain time with a certain amount of money respectively are termed as Call and Put Options. 

Options Obligations-Initially, when you purchase the particular option contract, it comes with a right but not an obligation. We can anticipate the maximum loss in case of an options contracts is the premium amount. Also, the price of the options is derived from the underlying assets. They fall into the category of derivatives. 

What are the things to do with options?

Buy and sell Calls- Buy the call option can to achieve a long position in the underlying stock. On the other hand, if there’s selling of a naked call, it means a cut-down place in the underlying stock.

Buy and sell Puts-Here it is a different and opposite scenario. Purchasing a put means a short position in the underlying stock and selling it denotes more extended position in the same.

What are the different terminologies associated with Options?

Strike Price- The price at which an underlying stock is to be purchased or sold.

Listed Option- The trade of an option on a National Options Exchange is called a listed option.

Out-of-the-money-A situation where the underlying of a call option is under the strike price, then that option is out-of-the-money.

At-the-money-A situation where the price of the underlying is next to the strike price, then the option is said to be at-the-money.

Options have numerous uses which have the potential to be beneficial. A few of them are speculation, hedging, and spreads. However, there are certain risks when it comes to Options which can be dealt with wisely with proper understanding. If we can have an in-depth analysis and insight about options, we can use it to its fullest potential. We can grab many opportunities that it provides.


How does Fortnite Make Money?

How does Fortnite Make Money?

Fortnite is a third-person videogame, developed by Epic games. It was released in the year 2017. This is a multiplayer zombie survival game. This game can be played in computers as well as in mobiles. Players can play as an individual as well as in teams of 2 and 4.This game is played by millions and millions of gamers across 40 plus countries of the world. Fortnite generated $1.2 billion dollars revenue between July 2017 and May 2018. This game is not only played by the gamers but also watched or viewed by millions of fans at the same time. Fortnite is one of the most popular games in today’s world.

Process of making money by Fortnite

Though the game is free to play, it generates a huge amount of revenue. The main source of revenue made by this game is by selling a virtual currency, known as “V bucks”. This V bucks are bought by the gamers by using real money. The minimum amount of V bucks one can buy is 1000 V bucks, which cost $10. 2500 V bucks costs $ 25, 6000 V bucks costs $ 60 and the maximum amount of V bucks one can buy is 10,000, price of which is $100. This V bucks are used by the players to buy in-game premium items. By using this in-game currency, you can buy cosmetic items for your character, emotes that is dance moves, skins, outfits and accessories.

Another strategy used by Fortnite is that some accessories are available in the virtual store of the game for a limited time, which results in more sales of the accessories within a short time period. Another strategy used by the manufacturers for making money is by selling the battle passes. The battle passes helps the players to unlock various in-game rewards. These battle passes are offered to the players according to their ranks and leagues. Each battle pass has it own objectives and rewards. Apart from the free passes, one can also buy the premium passes using the V bucks. This enables them to unlock various in-game rewards throughout the season.

You can also buy the different loot boxes using the V bucks. This loot boxes contains different types of rewards such as bonus boosts, characters, different accessories, etc. Another main source of money is the selling of outfits to the players. You can unlock different skins and outfits by increasing your rank but there are certain premium outfits which are only available in exchange of V bucks. You can also buy different weapons by using the V bucks.

According to the research conducted by SuperData, Fortnite has gained $ 2.5 billion dollars revenue in 2018.


Confused About Rented Dwelling Coverage? We Have the Answers

Confused About Rented Dwelling Coverage? We Have the Answers

When you are first starting out as a landlord, it can be difficult to navigate all the legal requirements as well as ensure your investment is fully covered from risk. Finding the right insurance for your rental property is of the utmost importance, especially since people you don’t know all that well will be staying in your property.

While rented dwelling coverage is not required by law, it is highly recommended that you take out a policy to cover your rented condo a or home. Something you should know about rented dwelling coverage going in is that most insurance companies consider rental properties to be a totally different type of risk since compared to an owner occupied dwelling. Different underwriting criteria and guidelines apply to rented dwellings.  you, the owner, are not living there full time. Getting this insurance will provide you with certain types of coverage, including:

Building Insurance covers damages to the structure on your rental property. The structure could be either a single dwelling like a house or part of a multiple dwelling such as a condominium. Some insurance providers will only cover certain types of damage to your rental property while others will provide fuller coverage.

Premises Liability provides coverage to you if someone is injured on your rental property caused due to your negligence.

Property Insurance covers your belongings that are in the rental property such as furniture, appliances, window coverings, etc. Talk to us to assist you in getting  the most comprehensive coverage provided by various insurance companies.

Rental Income Insurance

Rental income

Having a new stream of income from your rental property is a tremendous benefit to those who have secondary properties, especially if you have a mortgage to pay off. However, if your rental property gets damaged and tenants cannot occupy it, you have no way to earn this income.

Getting a rental income coverage can provide the income you would have earned in case of an insured loss.  In most cases, providers of this type of insurance will allow you to set the amount you’d like to recover if you ever need to make a claim. Getting the proper amount of rental income coverage is very important taking into account the length of time it would take to repair the damaged property.

Require Tenant Insurance

Another way to mitigate risk is to make it condition of rental agreement that the tenant has their own tenant insurance policy.  Your insurance will protect your property but not your tenants or their belongings. Another reason to require tenant insurance is that if one of your tenants causes damage to someone else’s home, you could be held responsible if they do not have their own personal liability insurance policy.

Your rental property is a huge investment. Not having it covered as fully as it could be would be a huge mistake. Getting comprehensive insurance to protect your investment will pay for itself both in peace of mind and in case of an insured loss.

About the Author

kristopher

Kristopher Parks graduated with a Bachelor’s in finance at the University of Calgary.  He has over 10 years of experience in the insurance industry as an agent/broker.  He enjoys spending his free time with his family by going to hockey games and camping.  If you’d like to contact him, you can do so at his LinkedIn.


How to Get a Job Teaching English Abroad

How to Get a Job Teaching English Abroad

Introduction

If an individual is interested in teaching English abroad then he or she should go ahead to complete the whole process. Teaching English abroad is an attractive lifestyle for many but one thing in common is the confusion encountered. With so much information regarding teaching English abroad, many people become overwhelmed and divert from the idea before getting started. The following are the process an individual should follow so as to land themselves jobs abroad.

Decide to teach English abroad

Making a firm decision of teaching English abroad is the first step to consider. If an individual wish to work and live overseas then one should decide that he or she will make it happen. An individual should think really hard whether this is the real lifestyle suitable for him or her. Since teaching English abroad is not for everyone one should determine whether he or she will be able to cope with various challenges so as to have a nice stay abroad. Dealing with uncomfortable situations such as being able to get basics necessities and live without many comforts of home is not an easy task so one should consider that.

Choosing where to go

Being able to decide on a destination to teach can be more complicated for many individuals than just choosing a country. A person should understand that some locations are more lucrative than others so one should choose the location wisely to save money while teaching. A person is advised to start somewhere with high job markets but the low cost of living. Therefore one should consider how to teach English in Korea to save more money while teaching English. Choosing where to go is very important since different locations have different requirements.

Going to school

A person requires a high school diploma to be able to teach English abroad. Also having a university degree is an added advantage and a minimum requirement for most locations especially those competitive areas such as Western Europe and the Middle East.

Balancing checkbook

When a person is planning a transition abroad he or she should think of a lot of expenses that he or she is supposed to cater for.  An individual is supposed to save more money to cater for their expenses when getting started and also consider how to teach English in Korea. Some of these expenses to worry about are airfare, certification cost, living expenses, and initial housing.

Getting credentials

An individual should have with them TESO, CELTA, or TEFL certificate before trying to teach in most locations. Even though it might not be a requirement is necessary to have them. Take more time in researching various providers and some provider can also help one with the above steps assisting In areas like job replacement, insurance, and housing.

Conclusion

There various steps an individual can take regarding rewarding teaching English experience in abroad. The above list might not be all-inclusive but have highlighted the important steps to consider. It seems to be tiring work but most providers help individuals with most of the steps. Lastly one should decide that he or she is going to teach English abroad, also be determined and the rest will flow smoothly.


Guide for Various Type of Loans Against Property

Guide for Various Type of Loans Against Property

A loan against property is exactly what the name implies a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property’s market value. However, loan against property is where you collect the money from the bank by mortgaging your property. Your property acts as a security deposit for the money that is rendered by the bank. And until the repayment of the loan money, the borrower’s original loan documents of the property will be under the banks’ custody. In case if the people fail to pay the monthly installments, banks will move legal procedure to own the loan property.

The loan will be approved by banks only up to 40% -60% of the property value, some banks might even approval loan up to 70% of the property value. Just like any personal loan, there is no restriction on using the proceeds of a loan against property.

How to choose between the two?

  • Processing time: Whenever we opt for this type of a loan, which is obtained by mortgaging the borrower’s property then the lender needs to verify the documents before disbursing the loan. In addition to this, you will be asked to submit documents supporting your income to judge your loan repayment capacity.
  • Interest rates: Being a secured loan, the interest rates of commercial mortgage lender options is usually lower than that of other loans. This can be anywhere between 11% and 16%. In comparison, interest rates of any personal loan can be as high as 24%. The main factor determining the interest rates in personal loans is the borrower’s credit score.
  • Tenure of the loan: The loan tenure can be as high as 15 years whereas the upper limit of personal loan is usually around 5 years. The more tenure of repayment of the loan brings down the EMI payouts, thereby increasing its affordability of the big-ticket loans. However, the flip side is that the longer tenure would also result in higher interest payout.
  • Loan amount: In the case of personal loans, your loan amount will primarily depend on your monthly income and your ability to service the loan. However, whenever you opt for a loan that is against your property, the loan amount will depend on both the market value of your property and your income. Generally, the loan amount in this type of loan ranges between 40–70% of the market value of the property and the maximum loan amount can go up to several crores. In the case of personal loans, the upper limit is usually around Rs.15–20 lakhs.
  • Although taking a loan against your property is a better option than a personal loan in terms of interest rate, loan tenure and loan amount, it falls short in terms of processing time. Therefore, for people requiring funds at short notice, a personal loan will be the only option. Also, the biggest risk associated with this type of loan is that the lender can confiscate your property in the event of your default in paying your dues. Therefore, make sure to self-evaluate your repayment capacity before opting for a loan against property. There are different commercial mortgage lender options which you can opt for.

What Homework do you Need to do Before Doing any Investments?

What Homework do you Need to do Before Doing any Investments?

Now making an investment decision is a wise thing to do. But what is wiser is the idea of doing your “homework” first. This homework if down by you with utmost care will result in long term benefits for you. Now let us have a look at the homework that needs to be done in a stepwise manner so that you make the right investment decision.

The first step

The first step is to figure out how a company makes money. Now the company never depends on just one particular option to make money. It is because the risks are many. There is always a chance of failure of any of the sector on which the company is financially dependent. So it is required that the companies do the proper research to finally understand not one but many other ways of earning money. It may involve making money through manufacturing and selling of products, by participating in the stock market, partnering with other companies, etc.

The second step

Now once you are through with the first step the next thing that is required to be done is to figure out how the company can continue making money. Now, this step is necessary and should not be avoided just because you did pretty well in the first step. It is because in the business industry nothing is ever stable.  Be it a small or a big organization any of these can get bankrupt at any point of time and vanish into thin air. Now f you dependent on a limited source, it may bring all of a sudden a lot of financial burden on you if you haven’t yet widened your options. So you need to figure out ways in which you continue making money other than the conventional method that you’ve decided earlier in step one.

The third step

Now, this step consists of market research. This step will help you in analyzing the various hidden opportunities in the market and then invest in the best company out there. Carrying proper market research will also acquaint you with the threats of the market, so you don’t end up making an unwise investment related decision. This market research is something you can’t and shouldn’t avoid.

The fourth step

Now the fourth step in completing your homework is to check the balance sheet of the company in which you are planning to invest. Go through the annual statement of the company carefully and look out if the company is indebted and if yes then by amount is it so.

The fifth step

It is the final step of completing your homework. In this, you have to make an evaluation which means that you will have to understand the valuation of the stocks. It will help you a lot onto finally deciding as to which company you ultimately want to invest in. And then go ahead with it.

Thus once you have completed all of the five steps, your “homework” is complete. And you will finally come to conclusions as to which company will be better for you to invest.


Tips for Saving Money while Renting

Tips for Saving Money while Renting

Renting is a great option for people who cannot afford to buy a house or who wish to spend their income in other ways. Although it is a money-saving process in itself, you can actually minimize the spending and add to your savings account while renting. All you need to do is to make and follow a plan for reducing costs, starting with the very first stages of research and up to actually living in your rental apartment.

Here are 4 of the most important steps to take to save money while renting:

  • Spending time on research

It is of utmost importance to take your time and be critical in your research process. Learn to balance your wants and needs and prioritize what is a necessity over what would be nice to have. One of the most important aspects of choosing an apartment is location. You should try to avoid renting close to city centers or near business areas, but you shouldn’t sacrifice a lot of time on commute either. Find a spot that is close to public transportation or offers you a direct route to your job or school. Calculate the distance and how long it would take you to travel from place to place and decide how much you are willing to sacrifice on that.

You can also consider renting with other people. If you find a nice apartment that has more than one bedroom, you can partner up with someone and split the rent. If none of your acquaintances want to join you, there are plenty of reliable apps you can use to find a roommate. It’s easier now than ever to find housemates.

  • Choosing the apartment type

The sheer number of options you’ll find might be overwhelming, but you can easily sort through them. Apart from price range and location, seriously consider what type of apartment is best for you. If you don’t have furniture and you are thinking of buying some, maybe consider renting a furnished apartment for the time being. It could suit you if you plan on traveling to distant places or moving again for other reasons. It definitely varies from one situation to another, but there are pros and cons to both furnished and unfurnished apartments.

Be careful with apartments that have utilities included in the price, because that might backfire. You can control your energy consumption and intentionally reduce costs, which will turn out to be more profitable for you than being tied to a fixed amount.

  • Signing the lease

When you’ve found your new home and the time comes to sign the lease, read the contract very carefully. Ask questions wherever things are unclear and make sure both you and the landlord understand your obligations. Before signing the lease, when you’re checking out the apartment, be attentive to flaws that you can bring up in the discussion and ask for a lower rent. Negotiating rent is a must.

A good idea is to rent long term, because the longer you rent the lower the monthly cost will be. Ideally, one year will reduce the rent while not tying you down and be too much of a commitment. Showcase yourself as a reliable person, even offer to fix things if necessary, and use this to convince the landlord to cut down on your bill.

  • Living in the apartment

After you’ve moved in, remember to keep the same mindset. Adapt your lifestyle in order to save money. Be aware of how much energy and water you consume and reduce that. It’s as easy as turning off the water while brushing your teeth or unplugging the microwave before you leave the apartment. These are minor things you can do and turn them into habits which add up and cut a significant amount off your monthly bill.

If you rent in a busy city like Seattle, you might fall prey to eating out or ordering food on a daily basis. A hectic lifestyle of running from one place to another could make you feel like you have no time, but if you decide to cook for yourself at least once every two days, you’ll not only eat and feel better, but also save a lot of money in the process.

General Rule of Thumb: Follow the 50/30/20 Rule

The 50/30/20 rule is the golden ratio of budgeting. It stands for 50% of your budget spent on needs, 30% on wants, and 20% on savings. Try to adjust your spending habits and fit your monthly costs in half of your salary. Divide the other half of it and try to put aside 20%. The rest of 30% goes to your wants for the month, or towards covering unexpected expenses. It may seem hard to implement, but if you have this rule in mind from the very start, it will be easier to decide and to keep an eye on your budget and discretionary income.

About the author: Mihaela is a passionate reader and writer, with an affinity for language and linguistics, as well as the latest technological developments. She discovered her passion for real estate at RENTCafé, and you can read more of her articles on their blog.


Own a Car? Here are 4 Great Ways to Make Extra Money

Own a Car? Here are 4 Great Ways to Make Extra Money

For most people, their car is a means that takes them to and from a workplace, so they can make money, pay bills, and hopefully have enough saved over for a nice trip to somewhere fun and exciting (don’t forget the travel insurance!).

However, did you know that you can also use your car to make money — and all without quitting your regular job. Here are four great ideas:

  • Deliver Food for Local Restaurants

There are dozens of food delivery companies you can connect with, including Just Eat, Uber Eats, Skip the Dishes, Deliveroo, Postmates, Takeaway.com, Delivery Hero, Grubhub, Doordash, Foodpanda, Swiggy, Zomato — and the list goes on. Each program has its own rules and rates, so it’s worth spending some time to research each option to see what works best for you. Also keep in mind that you may need to upgrade your car insurance.

  • Wrap Your Car

Another fun and profitable way to boost your income — without having to sell anything — is by wrapping your car. There are many car wrap options to choose from, including partial wraps. All you need to do is commit to driving your car in a certain area for a minimum distance (or duration). Plus, you’ll need to make sure that you’re a safe driver and obey the rules of the road — otherwise, instead of enhancing a company’s brand, you’ll damage it! To get started, you can do Google search for marketing and advertising agencies that recruit drivers like you to serve their clients. And don’t worry about damaging your car’s original paint finish, either. A high quality car wrap will actually protect your car from scratches, dents, and UV damage from the sun. How’s that for a nice bonus?

  • Become a Part-Time Courier

Businesses in your area — especially if you live in a larger city — have a big problem: they cannot afford to use conventional couriers to get their packages and documents sent to customers and clients. That’s where you come in! Simply by transporting small packages and envelopes, you’ll make businesses happy and, of course, you’ll boost your income. To get started, check out companies like Yodel, Hermes and Amazon Flex. 

  • Share Your Commute

With the cost of fuel and other vehicle maintenance constantly rising, sharing your commute to and from work is a great way to offset your expenses. Plus, you’ll meet someone who might turn out to be a good friend, and you’ll be helping the environment, too. To get started, check out platforms like Liftshare and BlaBlaCar.

The Bottom Line

Driving is something you do anyway, and your car is basically a sunk expense: you need to pay leasing or finance costs whether you drive it or not, and it’s constantly depreciating (even when you sleep!). The good news, however, is that the four options above can help you make money with your car. What’s more, you’ll probably enjoy it much more than you imagine. Good luck and happy earning!


International Investment: A Look at the US Property Investment Market

International Investment: A Look at the US Property Investment Market

Money

We have heard a lot recently about the relative fall in the UK property market, but how is property fairing elsewhere? Looking into the US property market, there are mixed results.

Amongst some high-profile bankruptcies paired with global economic tension, the US saw economic growth combined with a record-breaking holiday season. This was bolstered by a growth in disposable personal income and heightened consumer confidence, which would imply strong growth across the property sector.  

Retail investment

Investment in retail however is down 6.2%, from $32.2b in 2017 to $30.2b by the close of 2018. The main reason for this fall in investment is largely due to the lack of big-ticket investment deals.

Deloitte report that there will be many new challenges facing retailers in 2019. The industry is set for a major transition, with retailers needing to make bold decisions to succeed in the market.

Residential sales

Residential investment sales paint a very different picture however. Accounting for 51.9% of total transactions in the market, residential investment sales were up 8.9% in 2018 to $15.7b.

A recent poll by Reuters suggests that this growth may not be sustained. Price growth is predicted to drop from previous forecasts, from an anticipated 4.7% growth to 3.7% for 2019.

To reinforce this, sales did slow in the second half of 2018. This is partly due to cooling measures that were introduced, as private rental sales fell by 10.6% at the close of 2018. Economic uncertainty in the US is likely to continue to affect the property sector, with many developers reassessing future development plans.

Industrial sector

Overall, industrial investment sales fell 16.9% in 2018, which occupied 11.3% of total investment sales. Although this figure seems substantial, the industrial performance was mixed, and varied hugely based on the type of factory and location of the industry.

Over the next four years, over 2 million square metres is estimated to become available. However, over 65% of this is owner-occupied, comprising single user industrial developments.

Alternative assets

Much like the UK, we are seeing a different picture when it comes to alternative property assets. Student property investments have seen continued growth, with an increase in applicants applying to US universities. This also translates over to hotel room investments and buy-to-let investment opportunities, though supply is struggling to meet demand in the sector.

Rental yields

Rental yields stayed at about the same level by the close of 2018. Forecasts predict that rental growth will remain stable going into 2019, as retailers adapt to the on-going presence of e-commerce and consumers’ changing preferences.

The takeaway

Overall, property investment was a mixed bag in 2018 in the US. The takeaway is that investors may begin to shift focus into property that is seeing growth, similar to in the UK. The office sector in particular is seeing sizable growth and will be attractive to property investors.


Financial Terms You Must Know

Financial Terms You Must Know

finance

In the field of business and marketing, there are so many people who are quite good at entrepreneurship in general. A majority of them have some or the other kind of built in skills lie communication skills, sales another factors. But no matter how skillful a person is, one has to be aware of the financial terms which are most commonly used in the market.

Now here is a list of some of the top finacila terms that are used in the market on a common basis.

Assets

These are referred to those financial resources that any business entity usually has. These may include things like the products that are there in the inventory, the office supplies and the furnitures that have been purchased. Now these assets will count towards the total value worth the business as they could be sold when the business is going through some serious financial problems.

Liabilities

Now liabilities refer to the debts or the loans that may be on the business which they may have incurred during the initial days of establishing the business. It may have also incurred during the growth and the maintenance of its operations. Examples are bank loans, monies, credit card debts etc.

Expenses

Now the business expenses refer to that cost that is incurred every month by the businesses for the operation of it. This may includes rent cost, legal costs, utility cost, salaries of the employees etc.

Cash flow

The cash flow refers to the mobility of the funds every month that happens through your business. This includes both income and expenses. The cash flow also helps in determining the long term solvency.

Bottom line

This is refered to that final amount which is a summation of all the amounts that have been earned or lost by the end of the month by any business. In general, it is basically the last financial figure and depicts the earning of the business in terms of whether it has increased or decreased.

Financial report

A financial report is a report that is used to depict all the transactions and the expenses that have taken place and thus represent the account in a comprehensive manner. It is created by the potential inventors by both the internal and the external sources.

Financial statement

This is similar to the financial report but it contains the list of all the various kinds of finance related activities that have taken place. Although the financial statement is considered to be relatively a more formal kind of document tha the financial report.

Cash flow statement

As the name suggest, the terms cash flow statement is used to refer to that money that came into the business and that left the business in a given specific duration of time. It is that money which entered and then excited in a given time frames.

Income statement

The income statement depicts the profit earned by a business entity in a given specific period of time.

Balance sheet

The term balance sheet is used to refer to a particular snapshot that is used as an overall representation of the financial situation in a given time frame.


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