I will start by talking to you about the first type of trap that you can get into, it is when you ask the lender for more time to pay your monthly payment and he accepts because it is in its benefit, what you do not know is that the more time it takes to payback a loan the more you pay extra for the loan, this is why the loan must be payed as fast as possible.

Another trap often find in this are of work is when you already have 1-2 loans of this type that you must pay back and you apply for another one, you must know that this type of loans have huge interests rate and must be used only when you need them  and not a lot of people can afford taking care of 2-3 bad credit loans or payday loans at one time.

Another thing this type of loans can cause other problems, for example if you do not pay the loan in time you will end up with a bad credit score and the real banks that offer mortgage loans will increase their interests rate when you would want to get one of those loans.

Think before you act!

The thing that you need to know about me is that I do not owe nobody money and I pay all of my debts because I hate people that do not.

How can you have a friend that owes you money for a long time and doesn’t  even struggle to pay you back, he acts like nothing happened like he does not owe you anything, it is like you should appreciate the fact that he loaned money from you and you should maybe thank him :)).

After having about 2-3 friends that didn’t payed back the loan I decided I will never loan money because it is a waste of time and a waste of emotions and it can create some tensions between a normal type of friendship. For example if you are one of my best friends and I lend you some money and you asked the money for 1 year and you give me back the money after 4 years this might create some tensions between us and it might ruin of friendship and the best way to avoid this is to not loan nobody money.

I know this might seem like not such a good thing to do, but this days we have lots of payday loans, bad credit loans and other types of fast crediting agencies that can help people with money and I think that you as a common person should not waste your time with this.

Loans aren’t a way to get out of money problems it is a way to post pone the problem and even to make it bigger!

Many of you think that stocks is a big risk to take and it is a pure luck game, well I am here to tell you that you are wrong, of course there is some luck involved in some of the transactions that may make but it isn’t all about luck. The most important thing that does count in this market is the info that you have, and that info is even easy to find, ask any broker to give you a analysis on a company that you wish to invest and he will give you a book of that company. In this book you can see the history, check the charts of the ups and downs, see all the financial data you might need, see where the company has invested its money, see the people that run the place and so on. The biggest mistake that stupid people do is that they do not read this book and they do not know what to expect to this firm, and they buy stocks when the price is high and they get scarred easy and they sell when stocks are low, this is how smart people get rich and stupid people get poor.

Think before you act and be certain that you have read all the info!

Let me explain in a few words how this thing really goes. You come with a sum of money with the broker and together you decide in what firms you should invest after a close analysis of them all. Please remember that all broker tell you that you must have stocks from more than 5 firms in your portfolio so you can have a good steady interest rate. If you choose only one firm to invest all your money into you must carefully read all about that firm and be sure that this is the right thing to do and that you have selected the best time to do it.

After you invest you must keep in touch with your broker because you are not the only client that he/she has and it means that you must contact them weekly to talk about your portfolio and to talk about the financial news that have appeared in the market.

If the market goes down do no sell your stocks, this is a beginners mistake and this would cost you money. The first thing that you must do when stocks collapse you must see what is the feeling of the market and when it should go up again. This is why the money that you invest into the market must not be some money that you depend on for the next 3-5 years. I am telling you about the maximum period of time that your money can be “trapped” into stocks!

more to come tomorrow…