3 Things Everyone Should Know About Money

3 Things Everyone Should Know About Money

Money has been around forever and for a long time it’s been hard for some to keep track of it or to even know what to do with it. From saving, to spending, to minimizing debt; it’s all more difficult than it sounds. Luckily, with the advancement of technology there are a plethora of ways to improve our finances. Whether you’re trying to save, or come up with different ways to keep track of your finances, here are 3 things you should know about money.

Be Mindful Of Scams:

When trying to do more with your money it is surprisingly easy to fall for all kinds of tricks. There’s always someone who’s trying to get your personal information and while it may seem easy to avoid, it can still happen. By keeping a close eye on your bank account or accounts you can be in the know about any suspicious activity or charges you don’t recognize. Today, you don’t even have to leave your home to check with the help of online and mobile banking. As long as you have a laptop or computer you can easily watch your account.

Keeping records of your monthly bank statements helps take it a step further. While mobile banking is convenient it is also common to look past or completely miss some information. Your bank statements show all transactions for the month and aids in you seeing your own spending and saving patterns.

Being Insured:

We all know how important it is to have insurance and you can get it for almost anything. While it is not easy to think about something bad happening, it is always good to be prepared for the worst. Having disability insurance or renters insurance can keep you secure in case of an injury that prevents you from working and from anything that damages your home like a break in or natural disaster.

Not having to come out of pocket during a time like this can keep your finances afloat and give you that peace of mind knowing that you don’t have to worry about something going wrong. Even though these instances are rare when it comes to money you can never be too cautious.

Minimize Your Debt:

Debt is an interesting thing. It’s not always bad but it is never good. Debt from going to college is completely different from having tons of credit card debt. For most, debt is inescapable but there are ways to keep it minimal. It’s fairly simple to go out and get approved for a credit card when you’re in a financial pinch but it can quickly get out of hand.

Keeping your debt at a minimum is a great way to keep money in your pockets. The less payments you have the more money you get to keep for yourself or other important things. It is hard to say when you will need a little extra money so having a lot of credit card payments isn’t good for your finances in the long run.

Money management is hard but there are multiple ways to make it easy. Just one change can make a huge difference in your financial freedom.

Mark Angelo is the Co-Founder of Yorkville Advisors.

5 Common Financial Myths

5 Common Financial Myths

It’s easy to fall prey to financial falsehoods that sound reasonable but may actually do your financial health more harm than good. It seems there’s no shortage of sources of personal finance advice on everything from savings and credit cards to retirement and buying a home. Here are 5 common financial myths that you are better off ignoring completely.

#1. I don’t make enough money to save:

Don’t assume that any amount of money you can set aside each month is too small to make a difference. Any amount of savings is better than nothing and the sooner you start this habit, the better it will protect you. Even saving 1% or 5% of your income can help you build an emergency fund to protect you in case of an unexpected financial emergency or begin building a nest egg for the future.

#2. A home is always a good investment:

Most people are taught that a home is always a wise investment and preferable to renting, but this isn’t always true. In many areas, rent is actually more affordable than owning a home, which comes with many hidden costs like property tax, maintenance, repairs, renovations, and yard work. Renting may be cheaper in the short term to help you free up money for paying off debt or even saving for your retirement.

#3. Carrying a balance improves your credit:

It’s a common misconception that you need to carry a balance on your credit card to improve your credit score. The truth is your credit score is influenced mostly by your payment history and credit utilization, or how much of your available credit you use. Using your credit card regularly and making payments on time is what builds a positive credit history, not the balance you carry. Carrying a balance on a credit card doesn’t just cost you in interest charges, it can even hurt your credit by increasing your credit utilization ratio. It’s best to keep your credit utilization under 20-30% for the best effect on your credit.

#4. It’s a good idea to get out of stocks when times are bad:

Market volatility is the price of great stock returns and there will always be times when your investment portfolio loses value. If you have a diversified portfolio, it will likely recover its value within 2 to 7 years of a market downturn. If you sell when the market is down, you are just turning short-term losses on paper into permanent and real losses.

#5. Estate planning is for the rich:

Almost everyone can benefit from estate planning, which isn’t just about avoiding estate taxes. A smart estate plan can ensure your wishes are followed in terms of financial management and health care if you are incapacitated. Your estate plan can also dictate who will care for your children if you pass away and who will inherit your assets. Estate planning can even be used to avoid the probate process for your heirs so they can access their inheritance quickly to reduce the financial burden of your passing.

Mark Angelo is the President of Yorkville Advisors.

Best Way’s to Appeal College Financial-Aid Decisions

Best Way's to Appeal College Financial-Aid Decisions

Going to college and getting a higher education is a practical necessity today in order to achieve professional success. While going to college is very important, it is also extremely expensive. In many cases, people will end up spending more than $100,000 for their four years in college.

To help pay for the high expenses of tuition and room and board many people end up getting financial aid from the school they are attending. Unfortunately, many people end up being denied a part or all of the financial aid that they are seeking. While it can seem challenging to do so, there are several tips that can be followed to help anyone appeal a negative financial aid decision.

Appeal to Financial Aid Office Directly:

The first thing that you should do when you want to appeal a financial aid decision is to appeal to the financial aid office directly. The financial aid office likely used a very calculated approach when they were determining your financial aid need and qualifications. While they will all have a system for determining need based on income, assets, and student records, these offices will also be able to take other factors into consideration. In a letter written directly to the financial aid office, you should highlight other issues that could impact your need that may not have come across in your initial application. This can include a recent job loss, family member death, or sudden rise in other expenses.

Apply for Other Aid Through Admissions:

The financial aid office of a college typically focuses on providing students with need-based financial aid including student loans. However, there are other places in the school where you could also seek financial support. By contacting the admissions office of your college, you could learn more about grants and scholarships that are available. These are also often a preferred option as you will not be required to repay them upon graduation.

Show Competing Offers:

Ultimately, one of the best ways that you can show that you deserve financial aid is by providing a competing offer. When you are applying for schools, you should apply to at least three or four to ensure you are able to get into a good program. Once you have narrowed down your list, you should also apply for financial aid at each of these schools. If you are able to qualify for financial aid from even one of these schools it will act as a great competing offer that your target school may be willing to match.

Avoid Giving a Deposit:

When you are looking to go to a new college, you also need to avoid giving your school deposit until it is too late. Once you have given notice of your intent to enroll and your deposit, it will look to the school like you are locked in. Instead, a better option would be to delay your notification and deposit submission. The financial aid office may then offer you more money in order to entice you to commit to the school.

Mark Angelo operates as the President and portfolio manager for investments made by the fund and has seen more than 500 financial transactions during his time with Yorkville Advisors.

The Highest-paying Jobs in Finance, According to LinkedIn

The Highest-paying Jobs in Finance, According to LinkedIn

Financial careers are well-known as lucrative, high-paying paths for aspiring wealth builders. But not all finance jobs pay the same. A recent article appearing in Business Insider, in collaboration with the social website LinkedIn, reveals which finance jobs are the highest paying.

The article incorporated salary and compensation data from jobs “in the banking, capital markets, financial services, insurance, investment banking, investment management, venture capital, and private equity industries.” Keep in mind that many of these jobs provide total compensation packages beyond base salary, often including sign-on bonuses, stock options, annual bonuses, and commissions. The rank is ordered against Total Median Salary (TMS), which includes these extra compensations. TMS is often substantially larger than base salaries for financial jobs.

Managing Director:

TMS = $375,000. The managing director of a company is in charge of the whole business and included the big picture, the day-to-day stuff and everything in between.

Managing Partner:

TMS = $236,000. The holder of this position is a senior partner in the firm, charges with the overall practice, management and operations of the business.

Investment Banking Associate:

TMS = $235,000. The Investment Banking Associate helps in raising capital to enable the business to conduct their profit-making activities and to fund future growth.

Treasurer:

TMS = $200,000. Treasurer is charged with managing the cash and cash-flow of the firm, with the overall goal of forecasting and developing future cash management for the firm.

Director of Analytics:

TMS = $192,000. The holder of this position supervises the team that analyzes business performance against specific targets, metrics and benchmarks, with the goal of identifying area that need improvement.

Research Director:

TMS = $190,000. The Research Director plans and directs the activities and deliverables of the research staff, ensuring the research results are provided in a timely fashion to impact the organization.

Tax Director:

TMS = $187,000. Responsible for tax compliance, tax planning and income-tax accounting, the tax director often assists the Treasurer of the firm in assuring that taxes are payed in accordance to regulations while also ensuring that the company’s profitability is maximized.

Director of Financial Planning and Analysis:

TMS = $180,000. The person with this title is in charge of business forecasting. By scrutinizing the firm’s financial trends, this person recommends strategies for performance improvement.

Private Equity Associate:

TMS =$180,000. The focus in this position is to attract capital to the firm from institutional investors as well as from individuals who have major funds and are sympathetic to the business.

Director of Product Management:

TMS = $170,000. A critical job, this person develops and oversees the company’s product line, with an eye to maximizing business deliverables.

In summary, not all finance jobs are created equal but many are very high paying. Finance continues to be an arena where talented individuals will be compensated handsomely for the value they provide.

Mark Angelo is the Co-Founder of Yorkville Advisors.