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Debit, Credit, Revolving … Where do I get the most out of my bank cards?

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In full debate on whether Spain has left or not, at least in the bank card data they bet on the thesis of the European Union. The first quarter of 2017 has closed with another significant increase in the number of bank cards: 75.95 million of this means of payment, almost 26 million debit and about 50 million credit and growing. This data anticipates that in the second quarter the absolute record of the year 2008 will be broken (when the crisis broke out), in which a maximum of 76.4 million cards was reached.

This growth, based mainly on credit cards, is most clearly seen in trading volumes. In the first three months of the year alone, 30,327 million euros in purchases have been paid with cards and more than 27,387 million euros have been withdrawn in cash from ATMs. Both the maximum figures reached in Spain in history. With all this, there are many Spaniards who carry two or more cards in their wallets. Due, credit and within these revolving or shopping mode. Cards that can be used for different uses but not in all cases are made efficiently.

 

Debit

Debit

It must be the only way (with exceptions), where we get money from ATMs. Credit cards also allow it, but in some entities it only allows us to do it precisely on credit. That is, instead of charging it against the card, it does so against the credit the card has. With this, we will not only pay interest between the time we have taken money from the ATM and the settlement of purchases and cash provisions of the card, we will also pay commissions, which are often very high for their minimum (3% on average, but with minimums that also average between 12 and 18 euros for each provision). There are other entities that do allow you to choose when it comes to making money by debit or credit. But we always take special care if we are going to use the credit card at an ATM. This always informs about the commissions, let’s make a complete reading of it.

If we take special care when choosing the cashier and search (relying on mobile applications from banks, for example), those in which to get money is free or at the lowest possible cost.

Regarding purchases, many prefer to use it because they directly charge the purchase with the money we really have in mind. Although, doing so leads us to lose some opportunities that do offer some credit cards, such as buying now and paying later, when the card purchases are settled, without paying interest for this operation.

 

Credit card

Credit card

We must distinguish between the cost of paying purchases to the increasingly common (although still a minority), get or transfer cash to our account.

Regarding the first. It is still the most common to use the credit card to accumulate purchases and then pay all later when it is settled. For example. All purchases from 21 to 20 of a month and then paid on the first day of the following month. It is comfortable, advantageous, but as long as we control everything we have bought and have money to pay it when it is settled.

The second option is to finance our purchases, dividing them or paying a fixed or variable fee each month. In this case, we take interest into account and look for the formula that allows us to pay as soon as possible.

With regard to transferring cash, let’s analyze the double cost well. On the one hand, interest, which should force us to try to return the amount as soon as possible. Second, the commission, often high, for disposing of this money. For this, we are attentive if the card has some type of promotion that limits this cost and if it is not, let’s try to do it only in one operation. For the minimums charged by entities, it will be generally cheaper (or in any case, with the same cost), to have 1,000 euros on credit in an operation than to do it twice for 500 euros each.

 

Revolving or shopping cards

Revolving or shopping cards

As the name implies, they are special credit cards to finance purchases. This is why they have pros and cons. The point in favor is that their interest rates are lower than traditional credit cards, this allows us to fractionate cheaper.

The point against it is precisely that many of these only allow us to buy precisely financing the purchase, which always generates interest costs. For all this, if we do not want to finance we use the traditional credit card, if you want to finance, with the revolving you will pay less.

Even if you don’t believe it, even you can invest money in 2019

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The first thing you should know is that to achieve profitability on any type of investment it is not necessary to know about an exact science. In order for an investment to go out in the best way, you must consider it as a goal. Take note and evaluate what is the best option for you right now.

Where can you invest your money?

Where can you invest your money?

 

  • Actions:

An action is a security that represents a small percentage in which the share capital of a company is divided. That is to say that when you buy some stock, you acquire a small part of that entity.

With an action you can:

  • Confer ownership and vote in the company.
  • Acquire benefits on profits generated by the company and the market.

As you acquire a larger package of shares, you have a higher level of importance and influence within the company’s decisions.

  • Investment Funds:

It is an investment mechanism in which a common equity is managed, contributed by a number of people who invest their money in order to earn more money. Each amount that is invested has an investment policy where it is determined:

  • Risk level
  • Investment Objective
  • Investment strategy

Every investment fund is responsible for a specialist, who is responsible for managing the funds and reaching the agreed goals.

  • Real estate:

This investment is an excellent area of ​​opportunity, since the demand and the price of housing tend to grow over time. It is based on the fact of buying a property such as: house, land, department or commercial premises, to later sell it for a higher price to the initially acquired.

Steps for your financial investments to succeed

Steps for your financial investments to succeed

 

  • Have a goal:

Know what your financial limits are. You must understand that each investment is different and therefore the results of each one can be reflected at different times: short, medium or long term. The best advice we can give you is to make long-term investments, since the change in the markets allows you to obtain a higher return.

  • Plan:

Make a list of income and expenses on a monthly basis. Once you have canceled all your monthly expenses you can make an investment with the money you have left of the month.

  • Get advice :

Consult once, twice and up to three times with people who have certain economic knowledge, or at least with people who have made some investment at a time in their life. They will give you the best tips so you can invest, minimizing the risks. From there you can check with yourself, can I take those risks? Do I have the economic capacity to do it?

  • Track:

Every investment you make has a high peak and a low one

Every investment you make has a high peak and a low one

 

You must know and understand the perfect time to retire. When you constantly monitor you know the right time to make this decision.

All people have the ability to make an investment that pays off in the short, medium and long term. So if you have money stored in your home and for some fear you have not made the decision to invest it, it is the ideal time to do it because with these tips it will be much easier to earn more than what you were waiting for.

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