Passive Income – Is It Actually The Real Way to Earn?

Torn & Cut One Dollar Note Floating Away in Small $ Pieces

When it comes to talking about passive income, it’s like baking your own cake and having it too. Passive income can be broadly classified as an indirect source of income. The best part being you don’t have to do anything much to earn it. It’s like being in a partnership firm, having the status of a sleeping partner and earning a part of the income while not doing anything much to actually earn it.

Explaining the Passive Income Tree with its branches (types)

Passive income may very well be the most in thing these days. It not only brings about a very generous income to all those devious souls, but it also involves constant monitoring. Some quick examples of passive income can be classified into the following sources:

A restaurant owner who has a hotel chain can easily delegate his work to a trustworthy manager. By doing so, the owner can not only generate a worthwhile income for his personal use, but can also ensure to utilize his pursuits in a more fruitful manner.

If you have a vacant plot and you have rented it out to someone, the rent income received will be your passive income as there is no straightforward involvement of the owner.

Supposing a friend of yours is a marketing champ and he publishes an e-book on the various marketing strategies pervading the markets. In case the book hits off, he will get royalties on each copy that is printed. What else can one want?  Lots of dough coming in and free recognition to couple up the monetary benefits, all available online.

Such examples may be very shrewd in terms of giving a realistic picture of earning Passive Income. However, what sets it apart is the fact that it needs to be set in very carefully to ensure maximum and adept utilization.

Passive Income 3

Every coin has two sides-Disadvantages

Everything seems really rosy, especially when it comes to making some quick bucks these days. People today have devised ways and means of making the most of their situations. Put on some niche advertisements, jazz them up with nifty AdWords and money will come rolling in. Having said this, one starts to think, is it really safe and worth all the pain? The money, the income and the self proclaimed celebrity status may look deeply enthralling, but in reality, the grass is always greener on the other side.

Porapotties at OccupyMN protest in Minneapolis: Day 1

Holding Passive income as your main source of income may seem very lucrative in the beginning, but the inherent drawbacks come to the fore when you actually invest in a full fledged way. People may come up with some really neat AdWords, each of which may have a very high price tag attached to it. While the online business does its business, you’re probably logged in through your phone, sipping coffee on your end. The saddening part though would be that these ideas are not unique and this is definitely not the way to move ahead of the prevalent competition.

So, in case you’re looking forward to such ideas, then its best you do proper research on the topic before actually taking the final plunge.

James Hopes is a financial adviser and gives tips on topics related to it. He helps provide information on trade commodities  through his website

The symbiotic relationship between a debtor and a debt consolidation program

Every individual is responsible for the credit card mistakes that he makes. Are you repenting for misusing your credit cards and using it while purchasing every single thing? If answered yes, you need not fret as the debt consolidation companies are there to offer you with the consolidation programs through which you can get rid of debt by making easy and affordable monthly payments. Being a debtor, you must be looking for information about the benefit that you may get through a debt consolidation program. Well, if you’re not aware of them, here are some points that you should certainly consider.

Debt consultant will help when you fail to make more than the minimums

When you have 4-5 cards and you’re not being able to pay anything more than the minimum monthly payment, you can be assisted by the debt consultant, who is the representative of the debt consolidation program. He will try to offer certain techniques and strategies through which you can be able to save money after making payments towards your monthly obligations and then pay more than just the scheduled minimum monthly payments.

Debt Consolidation Program

The debt consultant will assess your current financial state

Before the consultant assesses your present financial state, he won’t give you any customized solution to repay them. You have to show them all the documents of the debt owed, the principal amount and the interest rates that you’re supposed to pay. This will give you a clear picture of where you stand and what option can help you simplify and alleviate the stress.

Consultant will negotiate with your creditors to revise rates

Most often it is seen that the debtors default on their credit card payments due to the sky-high rates that are binding on the cards. As it is usually seen that the credit card companies are not much sympathetic to the card holders but when the request to revise and lower the rates, come from a professional, they often consider doing it. Therefore, the debt consultant will effectively use all the negotiation skills to lower the rates on the accounts so that repayment becomes easier and flexible for the debtor.

Decides a monthly installment after consultation with the debtor

As the debt consultant has already drawn a clear picture of the present financial condition, he will sit with you to decide the monthly payment that you can make after meeting all your other monthly obligations. He will certainly make sure that you’re actually able to make that payment with ease.

The consultant will disburse off the payments to your multiple creditors

You have to make the single monthly installment to the debt consultant and they will in turn negotiate them to the creditors, thereby making you debt free. Therefore, you can even let go of the hassles of staying in touch with your creditors and answering to their calls.
So, when it comes to consolidating your debts through a debt consolidation program, you can certainly consider the above mentioned benefits from a debtor’s perspective. Just remember that missed payments can hit your score and also cancel the deal at times.

Financial Risk Management To Put All Your Risky Woes At Bay

Risk has played a major role in the financial markets since time immemorial. Irrespective of the kind of risk appetite an organization may present, the end result is that there is no gain without taking an adequate amount of risk in your day to day financial functions. This is where Financial Risk Management steps in, giving you, as well as, your organization expert ways on combating financial risk, but with the right tools in place.

Major Risk reasons:


  • The fluctuations of interest rates, exchange rates and commodity prices prove to be one of the major reasons for recurring risks. Nothing is fixed in the financial markets, often leading to lots of uncertainty
  • Financial transactions cannot be ascertained while dealing with multiple vendors, buyers’ and sellers’
  • Other types of risk can be classified into equity risk, currency risk, commodity price swivels etc amongst various other types

Financial Risk Management – an Insight

FRM is nothing but delving deep into the risk nest and bringing forth ways and means of curbing it for making profits. It doesn’t matter if you’re a risk lover or a risk-averse person; you’re nevertheless going to be flanked with it on every step of your financial career. Your preference for risk can’t be determined by the amount of risk involved for a simple rule applies, ‘the lesser the risk you’re willing to undertake, the lesser the gains you can expect’. Believe it or not, your preference holds a direct relationship with your risk returns.

Managing costly exposures to the ‘R’ word can be successfully handled by using financial hedging instruments, giving you an option to leverage the risk while deriving maximum exposure and monetary gains out of it.

Ways of Curbing the Risk Menace:

If you’re a financial manager, you would be well versed with the use of derivatives like futures, options, forwards, and swaps for maximizing your exposure. For all those first timers out there, derivatives are major players in the financial instrument industries, often used to diversify the amount of risk involved in order to benefit the organization.

The whole concept of risk management can be expertly compared to a seesaw. The wide spread use of derivatives for the purpose of hedging and leveraging risk has brought forth a completely new dimension. FRM is all about passing on the risk from risk-averse people to people who seek risk for benefits. This is what it takes to make a successful financial risk manager.


When it comes to implementing such ideas, people may often tend to roll their eyes, look upwards and think, “Oh my god, not again. I don’t want to get involved in something which I don’t even know about.” However, it’s not a very good idea to be completely oblivious about this art of hedging and mitigating risk. Risk Management is like catching the bull by the horns and directing it towards your goal.

In order to be classified as an effective Risk Manager, one needs to be well abreast of the kinds of risks pervading the financial markets. As risk begins to seep into your business, one needs to be extra careful before taking it head on. In case you think your business is not equipped to handle a large amount of risk, then it’s best to start small and slowly go up the ladder rather than simply burning your whole hand at the same time.

Lauren Devaney is an active blogger and also gives tips on finance. He owns a company named pay day loans uk, through which he helps provide the best of loans service.

Payday Loans And Cash Advance Are Not Always The Best Option

Have you ever realized that end month is miles away and you don’t have money to do the most basic things like buying yourself a meal or paying up some bills? Just like most people you go to the nearest financial institution and take a cash advance or request for a pay day loan. Do you know what impact this has on your finances? Well, Let’s begin by getting to know what cash advance and payday loans are and how they are different from other loans.

Pay day commonly referred to as pay day advance is a form of loan where by the employees request for an earlier payment of their salaries. It is usually insured with the customers next paycheck thus for one to get that kind of loan one must be employed and provide the previous pay statement and the employer should have details that prove that the person is employed there. The law regarding the payday loans tends to vary in countries.

Cash advances is a form of credit which is mainly provided by credit cards and charge card issuers who allow the credit card holders to withdraw money either from the ATM or over the counter in a financial institution up to a certain limit depending on his or her choice. A cash advance usually imposes higher interest than normal cards.

Both cash advances and payday loans are paid at an interest which is usually higher than other forms of loans. This results to the borrower getting lower wages than normal thus not enough and one ends up taking another loan to survive the entire month and this becomes unending cycle.

Since most people who take this kind of loans are low incomers who can’t afford normal lower forms of interest credits the end up being drained their little finances.

Another reason why these loans are not the best type of loans is because they exploit the financial hardships of individuals to make profits. This is so because most borrowers do not know the high interest rates they only look at the short while benefit of getting some money when they are in dire need of the money.

Pay day loans usually end up with aggressive practices when collecting them and if the borrower doesn’t have money at the moment in their account, their checks may bounce back or they are threatened of prosecution by the lenders.

Some of these lenders ignore the legal restrictions and for their greed impose very high interest rates for their desperate borrowers. They charge way higher than the law requires them and thus it is the borrower’s task to know the rules that govern interest’s rates in their countries.

The issuers of payday loans and cash advances claim they charge higher because processing costs of this type of loans is higher than other type of loans like the home mortgages. Next time you want a quick fix to money problems think of the pros and cons this will have on you.

Roger is a contributor for where you can get some useful resources to help you better understand ppi claims.

How To Get A Cheaper Loan With Bad Credit

Word Cloud With Financial Words

Credit scores are something of a cruel irony in many ways, and what is particularly unfortunate about them is the fact that the people who have bad credit are likely to be the very people who need to have good credit. Bad credit means that you didn’t manage to pay off your loans as quickly or efficiently as the banks might have liked – in other words it means that you’re likely to be going through some current financial difficulties. Then, once you have bad credit, it means that any loans you take out are going to have a higher APR – so the very people who don’t have many funds are the same people who have to pay more on their loans. The people who couldn’t pay back their cheap loans, are now having to pay back expensive ones instead. It doesn’t really seem fair, but unfortunately it’ the way of the world.

That’s the way of the world yes, but fortunately if you’re smart and you know what you’re doing then there are ways you can get around this and get your loans more cheaply still. Here we will look at some tricks you can use to reduce the cost of your loans and to get them for less even if you do have bad credit.

The Right Company

First of all, the first step to getting an affordable loan with bad credit is to look around and make sure that you find the right company to provide it. While many lenders won’t want to touch you with a barge pole, others see those with bad credit as an untapped niche and are all too happy to provide you loans. These are ‘guaranteed’ loans companies and ‘bad credit’ loans companies and they are the answer for anyone looking for a loan who doesn’t have a great track record.

However these guaranteed loans companies will often charge a higher APR of course than the regular ones (because they can) so it’s very much worth taking some extra time to shop around.

Secured Loans


A secured loan is a loan where your property or another asset is used as collateral. This then means that in the scenario that you are unable to pay back your loan, the lender would then repossess your property and use the money in order to get back what they’ve lost. This means they are willing to offer you a lower APR, because there is a much lower chance of things going from for them, but at the same time it also means of course that there are more serious consequences if it does go wrong.. Make sure you only use secured loans if you are sure you can pay them.

Your Repayment Scheme

The repayment scheme refers to what percentage of the loan you are going to pay back how often. Will it be lots of small payments over a long duration of time, or fewer large ones? Ultimately of course the sooner you pay back the loan the less total APR you will be paying and the cheaperthe loan will be overall.

Your Credit Rating

You can also of course make an effort to improve your credit rating and there are a few ways you can do this – by paying off existing loans for instance and by taking out a credit card and then using it very sensibly and making sure to pay everything back on time.

Kat Edwards is a financial advisor and extols car buyers to compare car insurance rates with the help of her blog. Click on the mentioned link for cheapest quotes comparision.

Tips on Getting the Best Loan Rate for Your New Car

Most people don’t have enough money to immediately pay off a new car. In order to drive off the lot, they need to secure an auto loan. You’re going to pay interest on the loan in addition to the price of the car, so you want to get the best loan rate you can. Here are some tips for negotiating loan rates.

Check Your Credit History and Score

Your credit is what’s going to determine how good of a loan you’re going to get. Check your credit history and score first. You need to know this information. Check your history for errors, and if any exist, fix them before you shop for your car. It will help you get a better loan rate.

Shop for a Loan Before You Shop for a Car

When you need a loan, it’s important to remember that you have options. Maybe not as many options as there are cars for you to look at, but it definitely pays to shop around for a loan first. Before you even go to the dealership, visit several banks and credit unions and inquire about an auto loan. They’ll tell you what kind of loan and interest rate you qualify for based on your credit, and they can pre-approve you for the loan. Those preapprovals are important to bring with you while shopping.

Use Your Preapprovals as Bargaining Tools

After you’ve decided on the price of your vehicle and it’s time to discuss financing, listen to what the salesman has to say about the dealership’s offer to you. If it isn’t as good as something you were offered by another bank, show the salesman your preapproval. The dealership makes more money if you take a loan with them, so you can challenge them to beat, or at least meet, the offer from the other bank.

Consider the Total Cost of the Loan

The annual percentage rate (APR) and the term (length in years) of the loan will both affect what the total cost of the loan will be. Just because a loan has a lower APR doesn’t mean it’s a better deal. If you have a low APR on a 60-month loan, it can cost you more than a high APR on a 36-month loan. You’ll need to do the math and find out exactly how much the loan is going to cost you by the time you pay it off. If you have lower monthly payments for a longer term, that can also end up costing you more than higher monthly payments for a shorter term. Always do the math; you could save yourself thousands.

Discuss Financing After You Determine the Vehicle’s Price

Oftentimes car salesmen will try to negotiate the price of your vehicle while also taking your financing into account. Do not fall for this trick. They will try to give you a “good deal” on either the car or the loan, but they will jack up the price of the other in return. Your financing shouldn’t determine or have anything to do with the price of the vehicle, so be firm in stating that you won’t discuss financing until after you come to an agreement on the price of the vehicle.

Dan Smith works in Nissan Sales for a living and is an expert on working out deals to help finance new vehicles. He is also a huge fan of writing and often writes and gives advice to others on getting good auto deals.