- 20 Nov 2020
- Reading time
- 4 minutes
Your financial decisions do not only affect your financial health but also reflects on how you manage your money and plan for the future. It is very important to always compare your income versus your expenses to help you spend within your means and budget. While it is important to start saving early to manage emergencies, it is also important to invest with reputable companies to grow your money. In recent times, banks, investment companies, and most financial institutions are tending towards the digital world and it is very important to have an in-depth knowledge of what their services entail and how they operate. US-Reviews is an excellent platform where you can find reputable banks, investment companies, and wealth management institutions across the United States. US-Reviews helps you improve your financial decisions by providing objective reviews of previous customers of these financial institutions to help you make informed decisions.
Examples Of Important Financial Decisions
We all make financial decisions every day. This can be major or minor. However, it is important to always remember that the financial decisions you make can make or mar your future. A 2016 poll by Claris Finance featured 2000 people discussing their financial decisions with most of the respondents affirming that their worst financial included not saving enough, racking up debt, and living extravagantly. US-Reviews takes a look into major financial decisions you can make.
·Investing: Deciding to invest can be one of the best financial decisions to make. While it is good to save money in the bank, a better financial decision is to invest your money because it won’t grow much over time if kept in the bank. If you are interested in making more money, then it is advisable to invest. There are a wide variety of investments to choose among, from low-risk investments like Treasury bonds to higher-risk stocks, mutual funds, and cryptocurrencies. Companies like Motley Fool provide financial and investment advice which can help you make better decisions when deciding to invest.
· Buying a House: According to the Claris survey, 15% of the respondents said their best financial decision was buying their first house. Not only does owning your own home saves you from frequent payment of house rent, but it can also be a sound investment as you could make money from your house by selling it for a profit. Owning a home is a source of pride for many, with about 14% of respondents in the Claris survey calling it their proudest financial achievement.
· Getting a College Education: Report from the Bureau of Labor Statistics show that people with a bachelor’s degree earn an average of $1,137 per week, compared to $678 a week for people with only a high school diploma which implies that getting a college degree can have a big impact on your financial future. Most people regarded ‘getting a college degree' as the best financial decision they ever made during the Claris survey, with two out of five saying it was the smartest decision they ever made. It is advisable to choose a school that is affordable in other to avoid massive student loan debt.
Risk of Investment and the Importance of Online Financial Education.
Investment risk is the uncertainty of if an investment’s actual rate of return will equal its expected rate of return. Though investing is a good financial decision, finance companies reviews suggest some risks come with it. No matter what type of investment you choose, there are risks attached to it and in reality, the more the risk the higher the reward.
When it comes to investing in education, though getting a college degree is a wise decision, you risk being overburdened with a lot of debt. According to The College Board, tuition and fees for four years of college range from $39,508 for a state university to $135,010 for a private college. And that’s not even including the cost of housing, books, and other items. Though student aid can cover a lot of these costs, they often come in form of loans that you will have to pay when you graduate. The Project on Student Debt reports that nearly seven out of ten recent college grads owe money for student loans, with the average tab coming to $28,950. That’s a lot of debt to carry for a young graduate.
If you are looking to own a home, you should note that buying often costs more per month than renting and you certainly would have to bear the cost of maintaining the house.
Buying a house as an investment also constitutes a risk – as many people learned when the housing market crashed in 2008. All the people who bought during this time ended up with houses that were worth less than what they paid, and sometimes less than what they owed on the mortgage.
Furthermore, online reviews suggest investing in assets and highly volatile cryptocurrencies also come with a lot of risks. You can gain a lot of profit in a short time and lose a lot of money in a short time too. All these reasons point to the fact that it is very important to have solid financial information before making any financial decision because whatever decision you make can have a huge impact on your future.
How online reviews can help you find good and reliable companies to invest with.
Before choosing to invest with any investment platform or wealth management company, it is advisable to check out online reviews for objective opinions of previous customers to give you an insight into what you can expect. You can learn from other's experiences by checking out review platforms such as; US-Reviews. The information you find when checking out online reviews can serve as a useful guide when searching for companies to invest with.