Did you know that in society there are lots of myths about money?

Did you know also that these myths can stop on your way to achieve the wealth that you want to know?

This topic is so important, I decided to devote two full weeks to study 10 myths about money than to actually stop us to obtain, preserve and increase over time.

Each myth publish an article as such, and as they emerge, the will link from this article, so … Stay tuned!

Myth 1: I cannot afford

We see how people always think something is too expensive for them, and programmed himself to believe that they can have the money for a better life.

Myth 2: I Have a Job

This is one of the most common, and much of which mention both here on the Finance blog, as in my Personal Development blog. You do not need a job (employment) to make money.

Myth 3: Need Capital

As one of my greatest mentors: “Who does not know how to make money without money, will be in trouble when trying to make money with money.” You do not need capital to start. That is a myth.

Myth 4: Money survived

You really think not survive without money? I want to show you that this is entirely a myth, and when you’re free of that belief, you will get rid of the fear of losing everything and start to earn more.

 Myth 5: It Takes Money To Make Money

Those who consider becoming rich, stop on the way they need to start thinking.

Myth 6: Buy Now, Pay Later

People always think that this is a great decision when they really doing is putting your finances back payments will have to assume then, often on unnecessary things.

 Myth 7: Money Makes You Poor

Commonly heard among the people of lower strata that money makes people evil and those who are rich in one way or another are evil. Ridiculous, but common in people.

Myth 8: there are limited resources

From this we talked a bit on this blog, about thinking that there are limited resources everywhere, with few but forceful arguments, I will show that this is completely false.

Myth 9: I have no money!

How often do you say that? This is a phrase people say when their expectations are not exactly in line with their reality. It is almost never correct to say, and see why.

Myth 10: Cheap is good

Just because a product or service has a lower price, does not mean that its value is higher as such. Contradictory but as common in people who even come to regard quality as expensive and bad.

In addition …

Of course not only mention the myths as such, the idea is not to delve into the problem and leave it all started. each of the myths personally consider the solution as the most relevant, so that you can apply in your life to actually get rid of these burdens that hold you back to win all the money you truly deserve.

In our country, the period for repayment of the mortgage is variable, although the average is about 30 years. There are also deals on the market with maturities that extend up to 40 or 50 years, though these are rare.

The applicant’s age plays a fundamental role in determining the period for refunding the mortgage, as the cap is tied to your age at the end of the mortgage. In general, banks now determine the maximum age 75 years for repayment of the mortgage. Thus, if a person has 30 years to apply for a mortgage could get within 40 or even 45 years, but not an applicant for 45 years, which would be granted a maximum of a 30-year mortgage.RWT8NM2WVUR6

Is better a short term mortgage or long?
There are ideal repayment terms for each profile, but couldn’t be said to exist within ideal. This largely depends on the applicant’s income, age and conditions of the mortgage. Here are some tips that will be useful to choose the best repayment term of your mortgage:

1. Mortgage payment: If you choose a longer repayment period will pay a lower premium for longer, which means that you must pay more interest and, therefore, pay more for the mortgage. Conversely, if you can afford a higher fee you pay less interest, reducing the total cost of the mortgage. It should be borne in mind that banks calculate the share of the mortgage represents more than 35% of your income (including your other debts), so an extension of the repayment period will always reduce that percentage and broaden your chances of getting a mortgage. If you calculate the mortgage payment, there are very practical and simple calculators to help you adjust the fee to the repayment period.

2. Tax benefits: The mortgage allows you to get tax deductions, but only on a maximum annual amount, currently € 9,015.18. If the fee you pay for your mortgage is lower than this limit, you might want to increase what you pay now for tax benefits in income tax.

3. Fees: Some mortgages may allow you to perform capital cancellations, whether partial or no fees. If the bank offers this possibility, you may decide to opt for a longer repayment period to reduce the amount of the fee. These flexible mortgages allow you to reduce the outstanding principal on time, allowing you to pay a lower monthly payment or reduce the repayment period.

Forgive me financial advisers, but their tips are often unintelligible. Moreover, I’m not the only one who thinks so: 50% of investors do not fully understand acknowledge the advice of his counsel, and that nearly 90% of professionals considered to have done his job and left her satisfied customers according to a etude which echoes the Gestiohna brokerage.

Another report, prepared by the Centre Inverco gives us more data and suggests that the more dynamic and younger the investor, the more knowledge you have of financial products. The trouble is that the profile of the average saving is, rather, that of a man older than 50 years and a conservative in their investments.

To facilitate understanding between client and consultant, Gestiohna includes “10 key concepts that every investor should know in times of crisis” and which I reproduce verbatim:

REDUCTION OF BETA is the risk indicator reflecting the sensitivity of a stock to market fluctuations. With a beta less than one, the action will tend to collect only part of the market movements, making it more stable and talked of a “defensive value.”

Problem subprime mortgage credit risk borrowers (people with no income, no job, no assets) in the U.S. residential market, which highlighted the shortcomings of a system based on subprime mortgages and was one of the triggers for world economic crisis. (more…)

In addition to ensuring the economic future of your children, it is important to start planning your retirement, to meet this goal it is necessary to organize to save 10% of your monthly income.

Habits such as saving and financial planning can be great allies of single mothers who head families, as well as build a future for their children should also start working for their own future, said the director of Human Capital Skandia’s investment funds, Maria Eugenia Castillo.

In Mexico there are 4.5 million single mothers (single, widowed or divorced), of which 71.8% work, while the third lives in poverty, according to the National Population Council (CONAPO), and for this reason it is important start thinking about how to prepare for a sound financial future, he said.

“The economic risk of single mothers is that they focus all their financial efforts to provide their children with education, health, clothing, housing and entertainment, neglecting a very important aspect of life, that is their retirement,” said the expert.

While the financial priority in these cases is focused on children and supports themselves, if not start a savings plan for retirement, it is possible that in adulthood does not have the money to sustain themselves. (more…)

Social networks not only are revalued in stock (up to 377% percent in the last year), but also help predict the vagaries of stock market, according to some studies. In this context, it is easy to see why over 80% of financial adviser believes that over the next five years, social networks help to attracting customers and also enhance the relationship with them. Currently, between 15% and 20% of the investment is captured through social network.

Behind this trend, in the words of Marc Garrigasait, president of Koala Capital SICAV, the transparency that social networks provide the financial world. “If you are transparent, investors will appreciate what this means more empathy and more benefits,” he says.

Over 70% of financial advisors are registered in any of the social networks, especially Facebook, LinkedIn, and Twitter Unience, according to a survey on the use of social networks by EFPA Spain (European Association of Advisers and Financial Planners -Heritage). The vast majority believe that social media are very useful for several reasons: because they represent an efficient channel of communication, constitute a direct and easy communication, are a good tool to keep abreast of new trends, and consider marketing tool  and online advertising.