Tag Archives: finance

What If Everything Was Free?

money options
Excluding scientific principles, money does make the world go ‘round. People use it to pay bills and buy necessities, as well as pay for services. On the business side, those with the most competitive product pricing without sacrificing quality are kings of the hill. It’s why businesses use software such as PriceManager to monitor competitor prices and gauge their next move. Money also breathes life into governments, educational institutions, and valuable scientific research. It’s hard to imagine life without money.

But then, financial difficulties plague everyone, even the richest people on earth. Prices may go up and income may remain stagnant or even go down, which is not a good sign. In that case, maybe it would be better if everything was free instead. Will such an arrangement work?

An Impossible Dream

The idea of everything being free is an extremely idyllic proposition; something even the most outspoken optimists wouldn’t dare explore. Probably the biggest, yet-unsolvable problem with this is that people wouldn’t have an incentive to produce work. Ordinary folks would have nothing to eat, because farmers won’t plant crops without a good incentive, for instance. Their income is what keeps them working. Everything else will involve this situation a hundred times over.

Money obviously acts as the incentive, because it’s tangible and practical, not unlike ‘personal satisfaction.’ Everything goes back to the concept of monetary exchange, which has been propelling global and national economies since the dawn of human civilization.

Perhaps eliminating money as a mode of exchange would work. In that case, the age-old practice of barter (trading goods for other goods) fills in. Ancient people used this form of trade for thousands of years when monetary exchange was either new or nonexistent. But the drawbacks of using barter in a modern economy are easy to understand. A carpenter who makes tables can trade his products for food, sure. But what if he wants meat and animal herders don’t need tables?

Case in point, a world where everything is free is not perfect—something even the most staunchly optimistic economists would agree. Unless there’s a viable way of making the idea work in real life, today’s current monetary exchange system should stay in place.

Get Your Ideal Home Within Budget Through Mortgage Loans

Mortgage Loan in Salt Lake CityFor first-time homeowners, applying for a mortgage loan is important, as it allows them to purchase their ideal property without going into debt. All financial institutions offering mortgage loans identify that many home purchases can find it difficult to produce the entire sum of money for the initial payment.

You can choose between an interest-only loan or a repayment loan. When you take a loan from mortgage company in Salt Lake City, for instance, make sure that you already understand the interest rate you need to pay every month. As a first-time homebuyer, you will be given options, so you have to decide which will suit your budget and preferences. 

Choosing the Right Mortgage Loan

Some of the types of loans that you can choose from will include:

  • Interest-only mortgage loan: Reports show that interest-only mortgages will require ou to repay the interest on the loans at regular intervals. However, you will need to repay the capital, but you can do it anytime during the loan repayment time period.
  • Repayment loan: With this type of loan, you need to repay both the interest as well as part of the capital regularly. These loans are helpful, as it keeps on reducing the loan amount thereby helping the borrower in the long run.
  • Rate of interest on the loan: Whether you choose an interest only or a repayment loan, it is essential that you decide whether you need a floating rate of interest or a fixed one. Floating rate of interest means, the interest valuation will be dependent on the market. In fixed rate, the interest value will remain as fixed when the loan was taken. It remains the same irrespective of the market.

So, if you wish to purchase a home then it is essential that you choose a particular type of mortgage loans. Ensure while taking the loan that it does not cross your budget and meets all your requirements.

Better Information, Better Profits

Profits

ProfitsYou may not think it, but being in business is like being a scientist. You have to try to uncover as many unknowns as possible before reaching a conclusion. It’s just that if you take too long to decide, someone else may have grabbed hold of the market – leaving you with nothing but breadcrumbs.

It’s the reason probability studies exist. And why price monitoring is a must for e-tailers.

At the Press of a Button

Online retail is convenient. Getting the latest of apps, like doing in-purchases to boost your online game, has made the life of many netizens a lot easier – not to mention more entertaining. The same is true for purchasing goodies online.

Online expert eMarketer projects e-commerce is going to reach $3.5 trillion sales worldwide in five years. Though it’s still dwarfed by overall global retail of $22.822 trillion, e-commerce is growing.

For an e-tailer like you, this is certainly good news. On the other end, it could mean stiff competition on your part.

And in the internet where you’re facing more knowledgeable buyers, getting your pricing and marketing strategy could get tricky. The use of social media is a sword that drives sales and helps spread marketing campaigns.

A Huge Lift

It’s for this reason that PriceManager says using software to do competitor price monitoring is of paramount importance. Such a program will help you be aware of various promotional tactics your closest online competitor is deploying.

And since bulk buying could happen in mere minutes, monitoring the competition’s price points helps you adjust your own in real-time. This way, you get to position yourself better, creating strategies to thwart your competitor’s advance.

Without competitive price monitoring, your online offering would be left vulnerable to the exploitation of your most aggressive competitor, which, if unchecked, could lead to substantial losses. If the trend continues, you could be out of the game without you realizing it.

Knowledge is power, but it’s only relevant when you act on it.

3 Ways to Effectively Lower Your Debt-to-Income Ratio

Mortgage Refinance in Salt Lake CityOf all the factors lenders look at to qualify you for a mortgage, your debt-to-income (DTI) ratio is one of the most crucial. Simply put, it refers to your ability to repay a mortgage payment. You can calculate it by dividing your liabilities by your gross annual income. Not all lenders are equally generous; some tolerate high DTI ratios, while others are allergic to borrowers with a debt ratio of over 43%.

What if you’re DTI ratio is too high? Does this mean you can’t qualify to own a house? No and yes. No, because most lenders would think you couldn’t afford it right now and granting you the loan may be bad for business. And yes, because lowering your debt ratio over time can eventually make you eligible to secure the deal you want.

There are basically three ways to lower your DTI ratio:

Increase Your Income

By earning more money and keeping yourself from having any more liabilities, there’s no other way for your debt to go but down. Make the most of your options. If you’re doing well at work, maybe it’s high time for you to ask for a raise. If have plenty of time in your hands, taking another job can turn your spare hours into additional income.

Pay Off One Debt at a Time

Finishing one debt first may not only lower your DTI ratio, but also put you in a better financial situation. Applying for a mortgage is a big obligation that comes with serious implications. You may be better off settling what you owe to credit card companies before acquiring another financial burden.

Consolidate All Your Debts

If you’re already paying an existing home loan, AltiusMortgage.com says mortgage refinance in Salt Lake City may be the key to have the funds to repay all your other debts. Depending on the deal, you may even secure a lower interest rate or shorten the term without significantly increasing your monthly repayments.

Dropping your DTI ratio takes patience, hard work, and discipline. If you feel your debt ratio is already good enough to secure the mortgage deal you want, don’t hesitate to negotiate with the lender.