5 Things you Need to Know about Financial Spread Betting

Financial spreading is an area of interest to a lot of people, who are keen to increase their income by speculating on financial markets. However, many people lack the confidence that comes with understanding, to immerse themselves into this type of trading.

Here we will take a look at 5 points that you should be aware of, in relation to financial spread betting. Hopefully, this will give you a greater knowledge of this practice, and maybe you will even invest to try and turn a profit. But before you do, read on.

1) You can trade tax-free

If you gain profits from spread betting in the UK, the good news is that they are exempt from tax. This means you don’t have to pay capital gains tax, income tax or stamp duty on your profits. This appeals to a lot of people who are interested in speculating on the markets.

2) You can trade long or short

Trading long means that you are speculating that a price will increase. Trading short, accordingly, means that you are betting that a price will decrease. Financial spread betting is flexible as it allows you to trade either way, depending on your hunch and the research you have done.

3) You trade on margin

Financial spread betting is leveraged, meaning that you only have to put down a small percentage of the overall value of your trade. This frees up extra capital to be used or invested elsewhere. The percentage amount mentioned here is known as the margin, and this can range from as little as 0.2% of the total value of your trade.

4) There are risks involved

As with most types of investment, there are risks involved here. It is called spread betting after all. It is possible to make a nice profit with financial spread betting but it is also possible to lose everything you deposit, plus more.

5) It helps to find a trusted and regulated financial spread betting company

As witnessed in the aforementioned example link (chosen at random because of its reputation within retail FX and spreads spheres) – There are various financial spread betting companies out there, offering platforms on which you can trade. These firms can help you whether you are an expert in financial markets, or a total novice, unversed in the ways of investment. The main point is that it is never too late to learn about financial spread betting, and indeed to do it if it appeals to you after you are aware of how it works and what the risks are.

Buying Property: Three Key Points to Remember

There are three key financial elements to remember when purchasing a property.  These are crucial, to ensure that investors get a property to suit their lifestyle, and something within their budget. The process of purchasing a home varies slightly, depending upon whether the investor lives in England and Wales or Scotland. 

Borrowing Estimate 

Before looking at property for sale at Zoopla.co.uk or similar sites, it’s important to speak with a mortgage advisor. They will calculate the size of the deposit, how much the investor earns and their credit rating.  Then work out a maximum loan amount. 

Gone are the days of 100% loans. Since the 2007 credit crunch, banks are less likely to take risks. Bear in mind that the smaller the deposit; the more the lender will charge to mitigate against financial risk. Lenders can lend around three to four times the annual income. If investors are buying as a couple, then this can increase further. 

One-Off Costs

These are costs that can possibly occur during the purchase, and therefore need to be factored into the borrowing process. This list covers most, but not all, potential one-off costs:

  • Lender’s Valuation
  • Building Survey
  • Legal/Conveyancing Fees
  • Stamp Duty
  • Land Registry Fee
  • Local Authority Search Fees
  • Estate Agency Commission (for the sale of another property)
  • Mortgage Indemnity Fees

Calculate How Much Is Affordable

After visiting a lender and also working out the one-off costs, it’s time to work out how much is affordable.   Here’s a step by step breakdown which should help you figure out who much is affordable:

1. Work out the income from the sale of the current property, if there is one. 

2. Then calculate the amount that can be borrowed.

3. Calculate the savings or investments that can be used for the purchase.

4. Deduct the approximate one-off costs for the property. This will provide a rough estimate of the price range that is affordable.  

If you follow these three steps you should have no problem making the huge investment which is a piece of property. Just be sure to take your time and do everything properly, as there are few purchasing decisions as important as this one.

Photo by: james.thompson

Do you know what a reimbursement accountant is?

excel screen shot, old excel, financial statementsWell I didn’t either so keep reading and you will find out.   Lately I have been thinking a lot about where I would like this blog to go in the future.  I have drawn out plans as to how I see it in the future.  While not working on the site in the past few days I have been deep in thought.  I conducted an interview for a newspaper and I have been busy at work.  This time of the year is especially busy in hospital finance. 

Each year as the financial audits are coming to a close, the reimbursement staff in hospitals are beginning to get their gears going.  They are driving through every statistic that makes up the hospital that they work at.  They are figuring out which dollars are for salaries, which are for benefits and which are just capital costs.  The reason you ask is why, why go through such great lengths to determine what a salary dollar for a nurse is or what a discharge in the ICU is. 

The way that capital costs and salary dollars are allocated to the specific departments can have an impact on how that particular operating unit is paid.  Understanding the payment systems of Medicaid and Medicare is no easy feat to grasp; I have been working here for 3.5 years and still at times have difficulty. 

The financial and statistical data is submitted to Medicare and Medicaid to analyze and put into the hospital rates in the future.  This report is filed annually for all the hospitals across the country that participates in the program.  This is a time consuming and arduous process that takes more than a month to complete, in fact I start working on it after the start of the New Year and do not finish until the end of May for Medicare and the end of June for Medicaid.  When completed each of the reports is close to 200 pages long.

What do you think; did you think there was much data compiled by Medicare and Medicaid?  This is in addition to all the government tax forms like the 990 and payroll stuff.  If you are bored Google CMS 2552-10 to find out about some of the forms that are necessary to be completed.  So with that said, I have revised my posting schedule for the time being to Monday, Wednesday and Friday. 

Go ahead and subscribe to my feedburner right now to stay up to date with This That and The MBA.

 PHOTO BY: MicrosoftSweden

Craig, I love you man!!

Have I told you lately how much I love Craigslist?  Well I love it.  If you have followed my blog from the beginning you would see that I use Craigslist for everything.  That fancy logo at the top, painting of my house, snowblower, dishwasher, my house, renting of our rental unit and the list goes on. 

Well this most recent sale was for the sale of my old golf clubs.  I started out golfing right handed because that was the only clubs that we had around when I was younger.  I am a natural lefty and one day I hit a left handed club, there was so much untapped power that I hadn’t been using.  I switched to lefty and purchased a cheaper set a few years ago.  Well this April, I bought a new set of Ping irons that were an inch longer for someone who is 6’4.  Listed the clubs and a few weeks later, I had a gentleman give me a call and express his interest.  So today after work I met the man and he examined the clubs and shot low with an offer.  I countered in-between my asking price and his low offer, which coincidentally was more than I paid 2 years ago.  He was happy thinking he got a great deal on the set of clubs and I was happy using the clubs 2 years and making money on them.

Moral of the story, know the product that you are trying to sell.  Make it as presentable as you can so that when the buyer views the product they can see it in the best condition possible.  Since Craigslist is similar to a garage sale or flea market, be open to negotiation on the price of a product.  Know your bottom line and if you want to sell it you might have to come off your asking price and have fun.

Cheers.

-Christopher-

Photo By: Eilidh

Bookmark Some Sites & Start Saving Money

Sometimes people think that spending consciously is a total waste of time and incredibly difficult. Fortunately, this isn’t always true, and there are tons of little ways to save money. Sometimes this means going to the grocery store on a full stomach, and sometimes it means skipping on the yoga classes and buying some exercise videos at home instead. But there are even some common sense ways to save a buck or two – and you can do it right from your computer.

How, you ask? By taking advantage of a browser feature that has been around for more than a decade: bookmarking. You might think that bookmarking is just for your favorite webcomics and your daily news websites, but it’s so much more than that.

By adding a couple of various sites to your normal complement of websites in your list, you can save some serious moola. Some of them might already be in your bookmarks, but add a few more to increase your potential savings.

RetailMeNot.com is a valuable resource for coupon codes for absolutely everything. If you think something doesn’t have a coupon code, check Retail Me Not before you go and purchase something. It even has codes that have been used in the past and some that may be useful in the future, too – and it doesn’t require any fee or sign up. You have access to the codes right off the bat. The rating system is great, too, and codes that have worked for other users are at the top.

PrintableCalendar.ca saves you at least $12 on those incredibly overpriced stacks of paper you have to buy at the beginning of the year. If you take a trip to the dollar store you can usually find a limited selection too, but the calendars on this website are completely free. You can even enter special dates and events before you print, and you can choose from a few designs.

Your bank’s website may not seem like it will save you money, but being aware of where your finances are all of the time is extremely helpful when it comes to deciding whether or not you want to buy something. Now, you may not be enthusiastic about looking at your bank account every morning with your coffee, but having a good starting point of your financial picture in the morning is essential in having a fee-free day.

Financial blogs (like this one!) should be part of your routine as well. Not only does reading strong advice in the morning help guide your day, but often there is a snippet or two of advice that anyone could use in every blog post you’ll see there – and the advice is usually pretty good, too.  It’s also important to read about personal finances to keep yourself focused!

Review sites like amazon.com are also essential bookmarks. Buying a 47” TV without reading the reviews on sound and picture can be an absolute disaster, especially when you go to return it because it wasn’t what you wanted. Bookmark handy sites and look at them before you make a purchase – that way, you can be incredibly informed and not make a terrible mistake that will cost you a few hundred dollars in shipping fees to fix. Many people like to communicate with one another about the quality of an item – listen. It’s free.

Some of these bookmarks won’t work for you, but the ones that do will save you cash and more importantly, time. Consider finding your own money saving bookmarks and saving them all in a “finances” folder on your browser – that way, you’ll always have a quick and easy way to save some money.

Steven Clarkson is a writer for FranklinDebtRelief.com.  Visit FranklinDebtRelief.com for objective advice about debt relief options.

Five For Friday and a few more: Still thinking of an catchy phrase edition!

It has been a busy week here at This That and The MBA.  Things are very busy on the work front as we move to completing our cost reports.  This is the bread and butter in how the hospital gets paid.  Without these babies nobody knows our expenses or any statistics. 

Here we were blessed and received a page rank of 2.  Thank you big G.

Here are the articles that caught my attention this week:

Daisy at Add Vodka with How running a blog is like running a business

Michelle at Making Sense of Cents with Lifes Little Splurges

Savvy Financial Latina with Gender Roles in Business

Mikey Rox at Money Crashers with How to get a raise or promotion at work  

Kurt at My Money Counselor writes Paying Debts in Collections  

Jason at WorkSaveLive with How to Retire Comfortably: Start With the End in Mind  

Sean at One Smart Dollar with Facebook IPO Date Set for May 18  

John at Married with Debt posts about his debt payoff progress.

Stephen at Saving From Scratch with How I paid off my student debt!  

As a random side note, my grass is growing like crazy I have been mowing it twice a week for the past few weeks.

Until Monday, keep it random and keep it safe and enjoy your weekend!

-Christopher-