Investing without having one or several investment strategies is crazy. You knock and move your money based on forebodings or news without investment. It is something like that can you can lead to one place.
Failure
I will tell you about the three best investment strategies to grow your money, basically focusing on the stock market investment. Also, I will briefly discuss other strategies, some known and others not so much. If you are wondering what to do with my money, this article will be perfect for you.
The importance of investment strategies
When you want to go somewhere, you have to have a strategy, because if you started to walk randomly, you would never reach your destination. When you have a child, you have to have a strategy to educate him. If you give him a different message every day, he will never know what to do. And, if you are going to cook a specific dish, you also have to have a strategy. Otherwise, you will end up eating something horrible.
The same happens when you want to invest your money. If you invest in the crazy without a clear investment strategy, you will surely never see your money grow. In the stock market, your worst enemy is feelings.
That fear that makes you sell when everything goes down, and you should buy, and that greed that makes you buy when everything goes up, and you should stop. And the best shield against feelings is a clear, mechanical, and straightforward strategy. This strategy does not depend on your mood or what appears in the newspapers.
How to choose a good investment strategy
Of course, not worth any investment strategy. Having a strategy is essential because if you don’t have it, you will surely fail when you start investing. The problem is that there are many investment strategies, and some can make you lose a lot of money. It is essential to analyze the options available and choose a strategy that fits your profile as an investor and you as a person—returning to the example of food.
Imagine it’s Sunday, and everything is closed, and you want to cook something, and someone tells you to make a paella. You start eagerly, but you realize that you don’t have rice, and you don’t have any broth either. You begin to improvise, and in the end, you get something that is neither paella nor anything else. It’s not that you don’t know how to cook paella. It’s that you didn’t have the right tools and ingredients.
The same goes for investment.
If you keep the first strategy you find, it probably won’t suit you.
Imagine that you discover value investing, an investment strategy that I will talk about later.
In short, buy undervalued companies and wait for the market to value them to sell them.
Very pretty.
But, without a doubt, a strategy that requires a lot of dedication and a lot of reading.
You have to analyze the companies thoroughly, read their balance sheets and income statements, and much more.
You start eagerly, but you have never really learned to analyze companies.
Also, you work from 8 to 8, and when you get home, you don’t feel like studying, and you end up buying companies that you think are good or that you have read around.
Many investment funds follow the value philosophy, and managers and their teams spend all day analyzing and studying companies, and yet many fail.
Risk Vs. Reward
You are at risk while investing money. There are many investors’ stories as they faced investment loss during the Great Recession or Depression. Despite this, you can’t eradicate the entire risk, but it can be a little bit possible when you invest wisely. Like a retirement account, the earlier investment gives you a long-term benefit. Quick-fix stock is riskier than these investments. People are doing this as they don’t know the reason for their actions.
There is no harm in such investments as you will lose little money on a bad investment. You will earn maximum money with time as you start your struggle early.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
How do you choose a variable or fixed mortgage? What elements must be assessed before hiring a fixed or variable mortgage loan? To start, you must consider your way of being and your situation. In other words, if you go exceptionally far and use almost all your savings to enter the mortgage, a variable-rate loan will surely fit your finances better.
You can always change the mortgage, either within the same bank or by changing entities. The first would be a mortgage ovation, and the second a subrogation. The new mortgage law favors changes from variable to fixed mortgages and improves the conditions for fixed-term loans.
Changing the variable rate mortgage to a fixed rate and vice versa is not complicated, and you should not be afraid to negotiate with your bank. Your starting point should be that everything with the bank is negotiable, provided you have arguments to support it. Most entities make their numbers and are clear on how far they are willing to go for a client of your characteristics. Use this link to find out if it contains information about you changing the interest rate on your mortgage, and if so, do not be afraid to ask.
Mortgage Dictionary
In order not to get lost in the world of fixed and variable-rate mortgages, there are specific terms that you should know. They are the ones that will appear in your mortgage contract or in the offers that banks propose. These are the most important mortgage terms.
What is the APR of the Banks?
One critical question that you should ask is the banks’ APR. The APR, or Equivalent Annual Rate, is the sum of the nominal interest rate plus the expenses and commissions associated with the mortgage. The APR homogenizes the interest rate of a mortgage on an annual basis and is used to compare the overall cost of a loan. The problem with variable mortgages is that this data will change as interest pays.
Also, for mortgages, this APR helps determine what it costs to change the mortgage bank since it includes the subrogation or novation commissions.
What is the TIN of a Mortgage?
According to the Bank of Spain, the TIN or Nominal Interest Rate is the effective price that the bank pays us for lending us the money. In this sense, it is the fixed percentage that you will pay for the mortgage without considering any commission. You can easily apply for TIN and get a mortgage. Only you will provide proof of loan repayment on time. You can do this by using your credit card as it is a reliable source for lenders. It will take 6 to 12 months to monitor your billing history.
What is the Subrogation of a Mortgage?
Mortgage subrogation is one of the formulas to modify the mortgage. Specifically, it is intended to change the loan’s creditor or debtor. In other words, to change the bank mortgage or to transfer the mortgage to another person when you sell your flat.
In a mortgage subrogation with a change of bank, it will be enough to find an entity that offers you better conditions and reach a binding agreement. From there, your bank will have 15 days to match the offer or let you go.
What is the Novation of a Mortgage?
Mortgage novation is another way to change or improve the mortgage. In this case, there would be no bank change but a renegotiation of the mortgage loan conditions with the financial institution.
With a novation, you can increase the mortgage capital, modify the interest rate, and vary the repayment term, the loan holders, and even the settlement system.
What is the Early Repayment of a Mortgage?
The early repayment of a mortgage is the early payment of part of the loan or the total thereof. In other words, advance part of the debt to shorten the loan term or reduce the installment. If you leave your mortgage before the end of the initial period and pay extra from the decided amount, you will have to mortgage an early repayment charge. It is equal to the remaining payment or 5% of the payment mortgage you have left to pay.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
A mortgage is like an agreement between the lender and the buyer. This agreement gives the lender the right to seize or take your property if you do not or cannot pay the money you borrowed, plus interest. Your lenders will give you a loan that will be 80% of the home’s value.
People use these mortgage loans/mortgages to buy a home or to borrow money of the same value as a home you already own.
Features
The mortgage involves one or more real estate acquired and held as a guarantee as proof that it will face the payment of the money borrowed in advance.
We can say that the ownership of the property is in the hands of the debtor. Still, if the debtor does not satisfy the debt in the time required, the creditor can begin the legal actions necessary to obtain his money – such as requesting the public sale of the property.
Things to look for
A mortgage loan is a long-term contract by which a person, whether physical or legal, lends a certain amount of money to another person, the debtor, for the purchase of a home.
Few things to look for in a mortgage
The loan amounts
The closing costs of the loan, which include the lender’s fees
The effective annual rate (APR)
The interest rate & associated points
The type of interest rate and if it can change (Is it fixed or adjustable?)
The term of the loan, or the time you have to pay it
If the loan has other risk characteristics, such as early payment penalties, final global payment clause, interest-only factor, or negative amortization
Focus on finding a mortgage you can afford, even considering your other priorities, and not on the amount of money for which you can qualify.
The lenders will let you know how much a person can borrow, which is the amount they are willing to lend you. Various online calculating devices will compare debts and incomes to come up with comparable answers.
But the amount you can borrow is entirely different from the amount you can afford without expanding your budget, weakening other vital issues. The lenders do not care and don’t like to take into account all your economic, personal, and family circumstances. To find out how much one can afford, you will have to look closely at family expenses, savings, and income priorities to find out what fits your budget.
Do not forget other costs when proposing the ideal payment.
Costs such as property taxes, homeowner’s insurance, and private mortgage insurance will usually add to your monthly mortgage payment. Don’t forget to include these costs in calculating the amount you can afford. You can get the estimates with your local tax evaluator, the insurance agent, and the lender.
Knowing how much one can easily afford every month will also help them calculate a rational price range for their new home that they are looking to buy.
Elements of a mortgage
A mortgage contract consist of three key elements:
The capital. It is the amount of money borrowed that will be returned periodically until the full payment of the debt
The term – lenders, have to stipulate the entire debt cost. It is a monthly payment that a debtor has to pay.
The interest rate is the cost of more than the debtor pays the creditor for having borrowed that money. It can be fixed or variable; it can be reviewed periodically and change the amount to pay.
Mortgage payments categories
Interest – It is an additional monthly cost that lenders add to each mortgage payment.
Insurance – It is a kind of mortgage that provides coverage to repair any damage. It includes house repair, car repair, etc.
Principal – It is the same money that lenders lend people as a loan. The amount of mortgage and principal’s loan amount is the same.
Taxes – It is a mortgage that homeowners have to pay individually. You will pay taxes as per the value of your asset.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The rapid development of 5G networks showcases how the whole world is changing for a much-awaited transformation. Last year, the Federal Communication Commission (FCC) finalized an order to deliver a fast-track development of 5G technology across the US. The step by FCC is essential to build competitiveness and future success for the country’s small organizations.
These days, small business owners and entrepreneurs need access to technology that not only delivers them growth but amplifies their business outcomes rapidly. Moreover, with consumers having access to smartphones and broadband internet right at their fingertips, businesses have ample opportunities to connect with them. Especially those businesses who rely on online purchases; can reap full benefits from incorporating the 5G network with their business procedures.
Now, with 5G implementation consistently going strong in the current world of digitization, businesses have no choice but to take this innovative step. 5G network is a primary catalyst for driving their growth for the future. Let us discuss how this innovative measure is the driving force for businesses in their quest for greatness in the technological future.
Characteristics to Offer
The current roadmap of 5G networks firstly shows the most defining feature is the unprecedented speed, which far surpasses our past experiences. Since it is about 100 times faster than that of 4G networks, you can witness yourself downloading an HD quality movie in a matter of seconds, when it took minutes beforehand. So, imagine how fast business transactions are possible with speed like that offered to business owners.
Not only does 5G offers an intense boost in speed, but it reduces latency significantly as well. In other words, you will witness way fewer delays or lag in comparison with 4G networks. Moreover, with greater bandwidth and the capacity to handle multiple applications simultaneously, an increase in production is on the cards.
Furthermore, with IoT-based smart devices rapidly on the rise, we can only visualize how 5G networks can spike up the outcomes of these devices. Moreover, it also expanded the usage of these devices from a mere customer-trending innovation to delivering business operations.
In addition to that, the advent of 5G means that you can substantially magnify the number of connected devices in a network. With millions of devices promised to be a part of a single 5G network, small business owners are in for a massive gamechanger.
Thus, with fruitful benefits and ample opportunities behind the 5G implementation, small businesses can potentially become the frontrunners of the country’s economy. So, what are those benefits that small businesses seek with 5G technology in their ranks? Let us highlight them below for you!
Improved communications
With the help of faster speeds and enhanced wireless networks, small businesses can improve their engagement procedures both with clients and colleagues. Moreover, with larger bandwidth and virtually no latency, small businesses will be able to stream high-resolution audio, images, and videos between them.
5G network provides these business owners with a giant leap forward to stay ahead in the game. Moreover, it will also offer numerous opportunities to eliminate communication between both customers and fellow employees. If you can recall, one of the significant concerns with 4G networks was the lack of communication between different ranks for businesses.
Remote working
Remote working has proven to possess great benefits for any organizational infrastructure, especially during the days of COVID-19. From providing business agility and improving scheduling to substantially reducing turnover, remote working is the new improvement for businesses today.
However, with 5G networks on the rise, remote working can improve their results tenfold. In other words, with added speed and lowered latency, your remote workers will be able to communicate easily and work more efficiently. Additionally, network-related tasks such as online transactions, cloud databases, video conferences, and so much more can become relentless for these businesses.
This is an ideal scenario for small businesses since they do not have to spend a considerable amount of expenses in hiring in-house workers. Moreover, they can invest their time to build stronger networks and capitalize on their business procedures for better results.
The VR/AR transformation
The seamless connectivity provided in this new internet band could potentially help these small businesses go global. One of the major additions provided to these small businesses is the increase in the usage of AR/VR practices in their daily operations.
An upgrade of such a magnitude can not only assist these businesses in improving their production rate but also lower their overhead expenses. In other words, it will enhance remote working as mentioned previously, along with removing unnecessary travel costs.
Embracing 5G technology for a brighter future
Looking back, we started our internet journey with voice being the king of 2G to a data-centric nature of 4G. With 5G, you feel as if it is somewhat revolutionary to all the generations behind it. Moreover, with over 50% of the US audience gaining access to it in the coming four years, the change can be exciting to witness.
However, for a small business owner, the transition to 5G is a difficult step due to limited sources of income. Nonetheless, the implementation promises to provide returns that far exceed the investment for these small enterprises.
All in all, if small business owners want to see themselves reach new heights in the current business world, then incorporating 5G is the only option. However, it does not stop there! Modern businesses can only flourish if they adapt and evolve accordingly. So, the ride is only going up!
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Food and agribusiness continue to set a measurable impact on our environmental, social, and economic dynamics. The five trillion-dollar industry has a far-reaching effect on almost every sector. The industry signifies around 40% of employment, global spending, and 30% of greenhouse emissions. Where significant improvements translated in the abundant food supply, sufficing for the food supply needs of an ever-soaring population looms as a pressing concern. The unwavering trend points towards a sharp rise in caloric and crop demands. According to the statistics, the caloric demand may increase by 70%, and a 100% rise may also be observed in animal and human feed. This increased demand will be reflected in resource constraints. It is doubtful to reach 40% of water demand with a mounting water crisis. At the same time, a decline in food and energy production is inevitable, which might lead us to resource scarcity. If left unaddressed, resource scarcity will augment the crisis and trigger political unrest in many countries. Agriculture technology is proving to be beneficial in increasing productivity and adding cultivation lands in South America, Africa, and Eastern Europe. Where technology supports the situation, reaching the increasing demands necessitates the disruption of the existing trend.
Technological advancements in food and agribusiness acted as an opportunity for investors seeking to make the most out of their money. The global investments in food and agribusiness have been steadily rising and peaked at $100 billion in 2013. The food and agribusiness showed a better total return to the shareholders (TRS) as compared to other sectors. According to statistics, almost 100 food and agribusiness demonstrated a 17% annual increase between 2004 and 2013, in contrast to a 10 percent rise in information and technology and 13% in energy sectors.
Growing investments in food and agribusiness confirm foreseeable prosperity. But investing in this industry requires understanding the crops, geographies, retailing, production, processing, and complex value chains. The fruition of investment is heavily dependent not only on the ample crop yields but also on how the value chains work to result in profitability (Exhibit 1)
Rising trends in food and agribusiness
food and agribusiness encompass a variety of companies including, packaged foods, animal health and vaccines, seed and chemicals, suppliers of agricultural machinery, and data providers of precision agriculture. Even with many companies, meeting the yawning gap between demand and supply is a daunting challenge. To do so, every company involved in the food and agribusiness sector would require ample technical, financial, and human resources. At this point, investors can offer their assistance in closing this gap while seizing an opportunity for a valuable investment.
Here we have elaborated on a few trends that will likely impact the food and agribusiness economies in the coming years.
Changing dynamics of emerging markets
It is predicted that global GDP growth is based on increasing emerging economies. By 2020, countries outside the Organization for Economic Cooperation and Development will contribute the most to the global GDP. The dramatic increase in population and income growth of these countries is translated into their elevated demand for food.
Changing demographics of mature markets
Today, consumers are inclined toward healthier diets and environmental sustainability. As a result of this increasingly changing trend, food production standards are stricter and higher than ever before. Demand for certified and healthier foods meeting safety and environmental standards is preferred over those that do not offer basic nutritional benefits.
Food companies and producers who are quick to adopt this changing trend are better positioned to leverage this trend. Companies can shift to producing fortification and nutrient-rich products to market health-conscious segments.
Unprecedented price swings
Like with other commodities, agricultural prices experienced some swift swings in their prices in recent years. With a sharp economic downturn and surge in food prices, undernourished people increased from 850 million in 2005 to 1 billion in 2008. Moreover, the rise in food prices in 2011 and 2013 rendered similar effects but eventuated towards a decline over a few months.
Use of Big Data
Improved access to more sophisticated data will benefit the food and agribusiness manifolds. The latest advancement in technology allows us to utilize more granular data and employ it to enhance our analytical capability. We can optimally use our resources, increase crop yields, and reduce our costs with improved capabilities.
Turning opportunities into profits
Finding the opportunity is essential; making profits requires a strategic and thoughtful approach. For gaining profitability from the food and agribusiness, investors should consider the following factors:
Develop a thorough value-chain understanding
Investing in food and agribusiness demands a thorough understanding of the value chain and knowledge of the potential variations present in the sector. Investors should consider several companies that comprise food and agribusiness. Companies included in this sector encompasses primary commodity processing, input companies, and a variety of farmer businesses.
Benefit from the growing importance of emerging markets Considering the increasing demand and supply from the emerging market, investors should recognize and benefit from the ever-increasing significance of the emerging market.
Food and agribusiness have shown significant improvement over the past few years despite the complexities. Pursuing due diligence and adopting the right approaches can help investors gain attractive returns and efficiently contribute to reducing the growing food supply need for billions of people around the globe.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Managing your small business is not easy, if only about the budgets and marketing allocated. In the constant search for acquisition and customer loyalty, whether already acquired or new, this approach requires efforts that sometimes go beyond the understanding.
With the advent of social media marketing or more commonly known as E-marketing (sometimes wrongly), it is now easier for small businesses and SMEs to do well by having the opportunity to promote their products. Or services, attract attention, and thus improve customer loyalty through social networks’ tools. The rise of professions such as Community Managers and Search Marketers proves this unprecedented digital shift.
Just like a business manager with internal know-how acquired over the years, with pitfalls, blunders, errors, and dead ends (and even the biggest ones do not cut it), Internet marketing proceeds in the same way. All the intelligence about using this media is to avoid the adversities that are strewn along the company’s road in the use that can make its 2.0 tools.
Therefore, it is important to know the secrets of this new area of expertise, internally through your marketing team or an E-marketer, or outsourced, using the outsourcing and know-how of a specialized company.
Social Media Marketing
As a result, companies benefit from various tools at their disposal to promote their brand, products, and services. But these tools are not just for that; they also help develop concepts that increase the quality and quantity of their brand image, their reputation, and visibility to always move forward.
The entire 2.0 tool panel is at the disposal of the company to achieve the goals: blogs (corporate), articles, podcasts, and corporate videos (or not), forums, social bookmarks, the media in the most sense wide, and of course the social and social networks (more or less) professional type LinkedIn, Video, Google +, Twitter, Facebook, etc. To do this, VSEs and SMEs that have made the step towards communication on social networks are increasingly calling on internal or external specialists: Community Managers.
Social media marketing is product communication
As we see all too often, the principle of marketing 2.0 is not to put its products forward, to make product communication in a way, but to be able to listen, to argue with its customers and those who animate these networks (Community Manager, EMarketer’s, etc.) on digital media where are disseminated information that affects you. A quick overview of the most used language tools will bring you the proof of a market still in full swing and yet well-stocked:
We realize that according to the niches, the entrepreneurs prefer a particular tool to ultimately reach the prospect/customer much more frontally because the network itself is already a real bottleneck or niche filter (not to use the term CSP). It comes in reinforcing a whole arsenal of advertising tools of the type of Google AdWords, advertisements Facebook and paying statutes, etc.
The social media marketing budget is not consequent
Whether long-term or over a noticeably short period, actions in Social Media Marketing are by far the most successful and affordable way to advertise their products or services; indeed, the means to reach Internet users are unlimited, going hand in hand with an unprecedented boom for this medium, taking even precedence over so-called traditional media. How many of the above sites are paying for access?
No! A business manager does not need to spend astronomical sums on promoting his company.
The condition to establish quality communication is to offer quality content, innovative and entertaining, to set the attention of the Internet. Search engines are getting smart and integrating semantics natively into their ranking algorithms more than ever. Therefore, you are interested in avoiding keyword pages, thinking that this will serve to increase your visibility. The only visibility earned will be that of Google and other engines to downgrade you for lack of intelligent and structured content.
Social media marketing strategies
By using a business blog coupled with your website, all the interest is to offer quality articles to reach targeted readers. Today more than ever, with the rise of semantic referencing, publishing articles with unique and quality content makes the difference.
Whether your press releases, blog posts, product frontlines should offer a paragraph entry content that is attractive to the reader, but also (and especially) for search engines. End the time of articles without “tail or head” with a ton of keywords. If you choose this way, it is a safe bet that all this SEO debauchery will soon sink to the bottom of Google rankings (if it is not already the case).
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
We all have an opinion about what today means by the term “consumerism.” We agree with this; it is a reality that the offer and the means to access different goods have exploded exponentially in recent times.
The list could be infinite from technology, accessories, and personal care products. Is it wrong to buy it if we can afford it? Is it wrong to buy if that makes us happy? The answers may be philosophical, but what happens when we have teenagers at home? What happens when we cannot control what our teenagers buy?
Today we share some tips and recommendations that can help you if you are going through a conflict of style.
Recommendations tocontrol adolescent consumerism
Each teenager is unique, and, of course, this does not pretend to be a recipe book. But it can help you:
Talk about the topic
If you are worried because you see that your son or daughter cannot control himself when buying, the first is to talk about the subject. But speak it in a frontal and proactive way. Adolescence is a special period, and we have to be tactful to deal with certain issues, especially when we have to set limits. Do not do it from censorship or absolute restriction. Let us be empathic and think about how we were as teenagers.
Stimulate interest in other things
If your son or daughter only finds motivation to buy, it is that he has lost interest in other things. Buying excessively is a problem, but it is also a problem that adolescents do not find motivation in other things. Since going out with your friends (and not always to the shopping centers), practicing sports or hobbies such as reading listening to music, are all activities that help. According to experts, sport is therapeutic to treat many “evils.”
When a teenager feels discouraged or finds it difficult to establish links, one must act. Compulsive behaviors, such as buying, are alerts to which we must pay attention.
Limit credit cards
Because there is no worse weapon than a credit card in the hands of those who do not know how to use it, as we said before, you have to be tactful, and it is not a matter of denying or drastically removing that extension of credit that we have given you. We must come with them to conclude that until there is a behavior change, the card does not go any further.
One way to show that we trust our teenagers is to limit the amount of credit we give them. It is a way to allow you to show us that you can handle your problem. Naturally, before this, we must have achieved that they visualize that they have a problem of consumerism.
Lead by example
No less important is that we are coherent with our speech. If we talk to you 3 hours a day about how bad it is to consume too much, but we go to a shopping mall and buy without control, it will not do any good.
From childhood to adolescence, parents are the primary reference on behavior towards spending. We must preach with a good example for our words to have credibility.
Take distance from technology
We know that this can be exceedingly difficult, especially in these times in which social networks are fundamental in our adolescents’ lives. But what can we do? Do not think about forbidding them of the computer or snatching the cell phone. That will only make things worse.
The challenge that is unleashed between technology and increased consumption should be to show them that the tools are good or bad, always depending on how we use them. Let’s find ways to show them that being 7 hours a day in front of a bombing of brands promotions (which are often nothing more than encouraging more consumption) is wasting time. Let’s find ways to show them that the most beautiful things in life are usually when we go outdoors.
If your teenagers are going through a crisis of consumerism, do not despair. Unconscionable consumerism is part of the evils that have touched us, as others have been in other generations. It’s just a matter of treating it.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Compensating your company’s human talent is an activity that cannot be lacking in your human resources planning, especially if you want to motivate your team to give their best, achieve that each achieves their work objectives and strengthen loyalty links with your company. Offering work compensations in your organization also contributes to this being seen as a much more attractive place to work when publishing any vacancy, which translates into a better reputation in the market.
For the compensations to fulfill their function, these must be significant and relevant to your staff. Otherwise, they could go unnoticed.
Seven most valued Work compensations
Below we show you what some of the work compensations that are most important for employees are:
Medical insurance
The health of workers should be an issue for which the company shows concern. If your work team and your family members enjoy health, they will be able to carry out their tasks and activities without any impediments. That is why medical insurance is one of the most valued work compensations for professionals. It allows the worker to obtain medical attention at no cost to their family members and may also justify those absences for health reasons without affecting their monthly remuneration.
Holidays
The vast majority of employees highly appreciate rest days, so rest days, in addition to those granted by law, will always be very welcome. In addition, the advantage of this type of compensation is that it does not involve an investment of money for the organization.
Therefore, it is advisable to offer employees a holiday period that compensates for their effort every day in the company, accompanied by a sufficient and really attractive holiday bonus.
Aguinaldo
When it comes to bonuses, the law establishes a minimum amount to be paid to the worker during December of each year; however, organizations are also free to grant an additional amount to their workers or even add food stamps, and gift cards, to name a few examples.
Labor flexibility
Managing human resources should never forget a crucial detail; the company comprises people with diverse needs. Therefore, labor flexibility is one of the best compensations that can be granted to any worker because it gives them the freedom to adjust their work schedules based on their personal needs.
It is worth mentioning that, in the case of establishing this type of compensation, the parameters are defined with which the performance of each collaborator will be evaluated so that there is much clarity about the results and productivity is not lost.
Savings fund
Encouraging savings among your team of workers shows you as a company concerned about the financial stability of your employees. Therefore, highly attractive compensation is to offer savings funds to workers.
This consists of retaining a small percentage of your salary during a specific period to then receive all the money saved and, in addition, an additional percentage by the company.
Productivity bonuses
Productivity bonuses allow the employee to obtain additional income to their salary, a desirable incentive for any worker. In addition, it will enable the company to raise its productivity levels and stimulate work aimed at achieving objectives.
To do this, you can rely on technological solutions that help you determine the productivity level of each of your team members, such as human capital software.
Major medical expenses insurance
As mentioned earlier, health will always be an important and highly valued factor. Providing your employees with insurance for major medical expenses gives them greater peace of mind, as they can ensure medical care in private units, respond to emergencies and receive treatments in case of suffering some accident or illness.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Understanding Your Credit Score: Key Insights and Tips
Your credit score works by condensing your entire financial behavior into a three-digit number between 300 and 850 that predicts how likely you are to repay borrowed money on time, calculated using five key factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%).[10][12] This single number determines whether you qualify for loans, credit cards, mortgages, and even rental agreements, plus it directly controls the interest rates you’ll pay—potentially costing or saving you tens of thousands of dollars over your lifetime.
Over the past 20 years running Complete Controller, I’ve watched countless business owners discover too late that their personal credit score was quietly sabotaging their business dreams. One client with perfect payment history couldn’t understand why his loan was denied until we found a single credit card $20 over its limit—dropping his score by over 100 points and blocking $78,000 in business funding he desperately needed.[6] That moment crystallized a truth I see daily: most people think they understand credit scores, but small misunderstandings create massive financial consequences. This article reveals exactly how credit scoring algorithms work, exposes the hidden factors that matter most, and provides actionable strategies that can boost your score by 50-100 points within months.
How does your credit score actually work?
Your credit score predicts loan repayment likelihood by analyzing payment history, debt levels, credit age, account types, and recent applications
Payment history dominates at 35% weight—one late payment can drop scores 100+ points and haunt you for seven years
Credit utilization (30% weight) measures debt-to-limit ratio—staying under 30% usage signals financial stability to lenders
Credit history length (15%) rewards patience—keeping old accounts open builds scoring power even with zero balances
Credit mix (10%) and new inquiries (10%) round out the formula, rewarding diverse account management while penalizing credit-seeking sprees
Payment history answers the single question lenders care about most: will you pay them back on time? Every credit card payment, auto loan installment, mortgage payment, and student loan you’ve ever made gets recorded and weighted into this dominant scoring factor.[10] The math is unforgiving—research shows a single 30-day late payment can crater a previously perfect 750 score down to 650 or lower, and that black mark stays visible to lenders for seven full years.[1][12]
The damage compounds exponentially with payment lateness. A 30-day late payment hurts, but 60-day and 90-day delinquencies signal serious financial distress to scoring models. Someone with excellent credit who misses one payment faces a steeper point drop than someone with fair credit who adds another late payment to their existing collection. The algorithm interprets the first mistake as a behavioral change requiring immediate score adjustment.
Building bulletproof payment history
Perfect payment history starts with automation. Setting up automatic minimum payments eliminates human error and guarantees you’ll never accidentally miss a due date while traveling or during busy seasons. Even if you manually pay the full balance later, that automated safety net protects your score from devastating late payment damage.
Consider payment history your credit score foundation—without it, nothing else you do matters. Consumers with 800+ credit scores average just 0.01 delinquencies compared to 1.6 for typical Americans, proving that payment perfection separates exceptional credit from average.[1]
Credit Utilization: The Hidden Score Killer (30%)
Credit utilization measures how much of your available credit you’re actually using, and it’s the second-most powerful factor in how your credit score works. The calculation is straightforward: divide your total credit card balances by your total credit limits.[9] If you have $10,000 in total credit limits and carry $3,000 in balances, you’re at 30% utilization—the threshold experts identify as the danger zone.
The 30% rule exists because lenders interpret high utilization as financial stress, regardless of perfect payment history. Someone using 90% of available credit appears one emergency away from default, even if they’ve never missed a payment. This explains why paying down maxed-out cards often produces dramatic score improvements within 30 days.[6]
Strategic utilization management
Multiple cards help more than you’d expect. Spreading $3,000 in balances across three cards with $5,000 limits each (20% utilization) scores better than carrying that same $3,000 on a single $5,000 card (60% utilization). The individual card utilization matters as much as overall utilization.
Request credit limit increases without hard inquiries to instantly reduce utilization ratios
Pay down cards before statement closing dates to report lower balances
Keep paid-off cards open to maintain available credit cushion
Consider becoming an authorized user on accounts with low utilization
Americans with exceptional credit maintain just 6% average utilization compared to 28% for typical consumers, demonstrating the massive scoring advantage of low credit usage.[1]
Credit History Length: Time Builds Trust (15%)
Length of credit history rewards financial stability and patience—qualities that predict reliable repayment behavior. The scoring algorithm examines your oldest account age, newest account age, and the average age across all accounts.[10] This explains why closing old credit cards hurts your score even after paying them off completely.
Your credit age calculation includes both open and closed accounts, but closed accounts eventually fall off your report after 10 years. A 20-year-old credit card anchors your history even if unused for years, while opening new accounts dilutes your average account age. This mathematical reality means building excellent credit takes time—there’s no shortcut to aging accounts.
Maximizing history length benefits
Young adults benefit enormously from becoming authorized users on established accounts with perfect payment history. Research shows this strategy can add 29 points to scores by age 30, improving mortgage qualification odds and lifetime financial opportunities.[5] Parents adding responsible teenagers as authorized users give them a massive head start in credit building.
The patience required frustrates many consumers, but time remains one of the few scoring factors that costs nothing to improve. Every month your accounts age, your score incrementally improves, rewarding those who start early and maintain accounts responsibly.
Credit Mix and New Inquiries: The Final 20%
Credit mix contributes 10% to your score by rewarding borrowers who successfully manage different credit types—revolving credit like cards versus installment loans like mortgages or auto financing.[10] Lenders interpret diverse credit management as financial sophistication, though you shouldn’t force artificial variety. Natural credit mix development through life stages works perfectly fine.
New credit inquiries, the final 10%, penalize rapid credit seeking as a desperation signal. Each hard inquiry typically drops scores 5-10 points and remains visible for two years, though the scoring impact fades after 12 months.[12] The exception: rate shopping for mortgages or auto loans within 14-45 days counts as a single inquiry, acknowledging rational comparison shopping.[12]
Smart credit shopping strategies
Consolidate applications when possible. If you need multiple credit accounts, apply within the rate shopping window to minimize score damage. Avoid retail store card temptations—that 10% discount costs you credit score points that take months to recover.
Understanding soft versus hard inquiries prevents unnecessary score damage. Checking your own credit, prequalified offers, and employer credit checks create soft inquiries with zero scoring impact. Only applications for new credit trigger score-reducing hard inquiries.
[12]
Credit Score Ranges: Numbers That Change Your Life
Credit scores aren’t abstract numbers—they’re financial gatekeepers that determine your access to life’s major purchases. FICO scores range from 300-850 with distinct quality tiers: poor (300-579), fair (580-669), good (670-739), very good (740-799), and excellent (800-850).[12] Only 23% of Americans achieve 800+ scores, with older consumers dominating this elite group.[1]
The practical difference between score tiers translates directly to your wallet. On a $300,000 mortgage, a borrower with a 620 score pays approximately 7.89% interest while someone with 760+ enjoys 7.07% rates—a difference exceeding $100,000 in total interest over 30 years.[2][3] Every 20-point improvement in the 620-740 range can save thousands annually.
The hidden costs of mediocre credit
Beyond loan rates, credit scores affect insurance premiums, rental applications, employment opportunities, and utility deposits. Landlords routinely reject applicants below 650, and many employers check credit for positions involving financial responsibility. Poor credit creates a cascade of higher costs and missed opportunities throughout life.
Understanding your current score position helps set realistic improvement goals. Moving from fair to good credit (580 to 670+) opens mainstream lending access, while reaching very good territory (740+) secures premium rates and terms. Each tier crossed represents tangible financial progress worth thousands in savings.
Why You Have Multiple Credit Scores
Most consumers don’t realize they have dozens of different credit scores, not just one. The three major bureaus—Experian, Equifax, and TransUnion—each calculate scores independently based on slightly different data.[11] Additionally, FICO has multiple versions (FICO 8, FICO 9, FICO 10) plus industry-specific scores for auto lending, credit cards, and mortgages.
VantageScore, FICO’s main competitor, uses different calculations and can generate scores with just one month of history versus FICO’s six-month requirement. July 2025 brought game-changing news: Fannie Mae and Freddie Mac now accept VantageScore 4.0 for mortgages, potentially qualifying 2.7 million additional borrowers who include rent and utility payments or have thin credit files.[7]
Managing multiple score reality
Monitor all three bureau reports annually through AnnualCreditReport.com to catch discrepancies.[11] Scores can vary 20-50 points between bureaus due to reporting differences—one late payment might appear on Experian but not TransUnion, creating frustrating inconsistencies.
Focus improvement efforts on factors affecting all scores: payment history and utilization universally matter regardless of scoring model. While you can’t control which score lenders check, improving fundamental behaviors lifts all scores simultaneously.
Immediate Actions to Transform Your Credit Score
Strategic credit improvement starts with understanding that scores respond dynamically to behavior changes. Unlike static grades, credit scores recalculate monthly based on latest data, meaning focused efforts produce rapid results.
First 30 Days Action Plan:
Pull all three credit reports from AnnualCreditReport.com and dispute any errors—even small mistakes can suppress scores significantly[11]
Identify cards over 30% utilization and pay them below that threshold for quick score boost
Set up automatic minimum payments on every account to guarantee perfect future payment history
Stop applying for new credit to let recent inquiries age and reduce their impact
60-90 Day Momentum Building:
Request credit limit increases on existing cards without hard inquiries to improve utilization ratios
Become an authorized user on accounts with long history and low utilization
Pay down highest utilization cards first—getting any card from 90% to 30% utilization helps more than reducing multiple cards from 40% to 30%
Consider debt consolidation only if it genuinely reduces utilization without closing old accounts
Long-Term Excellence Strategy:
Maintain zero late payments—perfection compounds over time
Keep utilization under 10% for exceptional score territory like the 800+ club maintains[1]
Let accounts age naturally while keeping old cards active with small periodic charges
Build natural credit mix through life stages without forcing unnecessary debt
Conclusion
Understanding how your credit score works transforms it from a mysterious number into a controllable tool for financial success. The five factors—payment history (35%), credit utilization (30%), history length (15%), credit mix (10%), and new inquiries (10%)—operate on clear mathematical principles you can leverage strategically. While building exceptional credit takes time and discipline, even modest improvements unlock better rates, expanded opportunities, and significant lifetime savings.
I’ve spent two decades helping business owners and individuals master their credit, and the transformation stories never get old. Whether you’re recovering from past mistakes or optimizing already-good credit for excellence, the path forward remains the same: consistent on-time payments, strategic utilization management, and patience as accounts age. Your credit score responds to actions, not circumstances—meaning you control your financial destiny.
Take the first step today by checking your credit reports and identifying one area for improvement. For comprehensive guidance on credit management, financial strategy, and business growth, the experts at Complete Controller stand ready to help you break free from limitations and achieve your financial goals. Visit us at Complete Controller to discover how our full-service financial solutions can transform your business and personal finances.
Frequently Asked Questions About How Your Credit Score Works
How long does it take for my credit score to update after I pay off debt?
Credit scores typically update within 30-45 days after your creditor reports the payment to the credit bureaus. Most creditors report monthly on your statement closing date, so paying down balances before that date shows faster improvement. Some scoring changes appear within days on real-time platforms, but official FICO scores used by lenders update monthly.
Can I have a good credit score with only one credit card?
Yes, you can achieve good credit (670-739) with just one credit card if you maintain perfect payment history and low utilization. However, reaching excellent territory (740+) becomes easier with 2-3 cards showing long history and responsible management. Quality matters more than quantity—one well-managed card beats five maxed-out accounts.
Do utility bills and rent payments affect my credit score?
Traditional FICO scores don’t include utility or rent payments unless they go to collections for non-payment. However, newer scoring models like VantageScore 4.0 can incorporate these payments if reported through services like Experian Boost. As of July 2025, mortgage lenders can use VantageScore 4.0, making rent payment history valuable for first-time homebuyers.[7]
Why did my credit score drop when I paid off my car loan?
Paying off installment loans can temporarily lower scores by reducing your credit mix and active account count. The closed loan also stops contributing to payment history, though the positive history remains on your report for 10 years. This drop is usually minor (10-20 points) and temporary—your score recovers as other accounts age and demonstrate continued responsible management.
Should I close credit cards I don’t use anymore?
Keep unused credit cards open unless they charge annual fees you can’t justify. Open cards contribute to your credit history length and available credit, both helping your score. Closing cards reduces available credit (raising utilization) and eventually removes that positive history from your average account age calculation. Instead, use old cards occasionally for small purchases to keep them active.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
Life insurance is one of the personal-finance contracts between an insurer and a policyholder. In which contract the insurer pays off a specific amount of death benefits, it provides the amount of money to help for medical expenses future living expenses for your loved one in exchange for a premium. A life insurance contract gives you the surety of your upcoming financial protection for your family to survive after the insured person’s death.
Aspects of life insurance
The main goal of life insurance should give financial support to your dependent person. It is essential to know that for the applicant, before signing the contract, to analyze their financial situation and determine the needs of their surviving persons. The life insurance agents are making the most suitable life insurance for those who need it. Many life insurance companies term and whole life insurance: a variable universal life (VUL) or universal life policies. Life insurance needs annually to re-evaluate or after necessary life actions like divorce, marriage, the adoption or birth of a child, and other primary purchases, like a home.
If you want to purchase life insurance, find the quality of your life insurance policy and determine the type of policy.
Types of life insurance
There are many different types available for life insurance. The many types of insurance will be categorized into permanent and term, conditionally, on how long it will affect.
Many life insurance types will expire, but the most common permanent life insurance is whole life insurance. That is the most reliable form of insurance that you will purchase. Somehow, insurance has investment-like; many others are good for the unhealthy or older applicant.
Many sorts of life insurance are:
Permanent life insurance
Whole life insurance
Term life insurance
Variable life insurance
Universal life insurance
Guaranteed issue life insurance
Group expense insurance
Simplified issue life insurance
So, keep in mind that many types of life insurance are available, keep at some point when you are purchasing, that is the policy of insurance, and the amount of policy for or the main important is that by what means you need the life insurance.
Benefits of life insurance
There are three main basic benefits of life insurance.
Death benefit
Premium
Cash value
Death benefits
The death benefit is the main benefit that the insurer gives the beneficiaries. The amount the insurance company will provide the dependent member mentioned in the insurance policy upon the insured person’s death. The person who purchases the insurance will choose their reliable death benefit cash based on their future needs for the loved one who is the survivor.
Premium
The premium is the best benefit that is set in statistics. The cost of the insurer (COI) will find, the cash required being administrative fees, mortality costs, and many preservation fees policies. The main benefit of the premium will influence the insured’s age, occupational hazards, medical history, and many other tendencies of personal risk.
When premium requires submission compulsory, policies that required, the insurer will remain indebted to pay for the death benefits. The cost of insurance (COI) includes the premium amount.
Cash value
Permanent or universal life of cash value is a component that assists the two purposes. One is a saving account; the insurer person might use it, cash accumulated on a tax-deferred basis throughout the insured person’s life. The other second purpose, the cash value, is to balance the rising rate and offer insurance as an insured age.
Other essential tips for life insurance
Your life insurance will communicate with you; they will convert a term policy into an entire life policy. You may avoid it. You will need to change your permanent life insurance policy into a term life insurance policy.
When you want to decide, Convert or change your life insurance policy, foremost, you will need a clear medical exam to get this policy.
Selecting life insurance benefits could be difficult, then naming a secondary beneficiary or a depending beneficiary, and informing your beneficiaries during your life when you change the situation.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Also, you work from 8 to 8, and when you get home, you don’t feel like studying, and you end up buying companies that you think are good or that you have read around.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
