Tag Archives: invest

Invest and earn 1% cashback with Robocash

By Peer-to-Peer Lending, , ,

Robo.cash is happy to announce the launch of a Cashback Campaign! Earn a 1% bonus by increasing investments in October and November!

All you have to do is follow 3 simple steps:

  1. Deposit and invest money on Robo.cash until November 7;
  2. Do not make withdrawals from November 8 to December 8, 2022;
  3. On December 9, get a 1% cashback on the amount invested. The bonus will be calculated from the positive difference between your Investor’s balance on November 7 and October 25;

To get the earned cashback, Robo.cash advise investors to visit the Invest page to make sure the “Payout” option enabled for any of Investor’s portfolios.

Deposit and invest money by November 7 and earn more with Robo.cash!

For other bonuses visit our Cash-back & Bonuses page.

Esketit investment platform overview

By Peer-to-Peer Lending, , , , , , ,

Esketit platform is an investment platform, allowing private and institutional investors to invest in issued loans. The loans available for investment on the Platform are issued to private individuals all over the world.

The microfinancial companies issuing the loans are called Loan Originators and are using the funds raised on the Platform as working capital in order to expand their lending volumes.

Esketit Platform Limited is registered in Ireland with legal address 77 Lower Camden Street Dublin, D02 XE80. The operational offices are located in Riga, Latvia, Uriekstes Street, 2a-24, LV – 1005.

Anyone who is at least 18 years old and older and has a bank account of the EU or EEA can become an investor.

In order to invest you need to register on the Esketit Platform, confirm your email address, complete the identity verification process by providing either a National ID or a passport, and verify your bank account.

You can verify your account after your identity is confirmed. To do so, you need to transfer funds to one of the bank accounts listed on our website. This allows you to connect your bank account to your Investor profile. You only need to do this once. With us, the minimal investment is just 10€.

The investment opportunities in loans are listed in Euros. The loan originators are receiving funding in Euros and handling currency risks themselves.

Once the investment has been made, it is transferred directly to the Loan Originator. Your principal is repaid to you at the maturity date, which is stated for each project. Monthly, you will receive the interest payment for your investment.

I order to exit earlier from a projesct it is possible to place your investment for sale on the Secondary Market. If another investor agrees to buy your listing for your set price with discount or premium, or at par, you exit your investment before the maturity date.

Loans could also be finished by the borrower or loan originator faster than its maturity date.

Esketit platform could also consider rebuying those loans from you with a 1% discount in case you have such an urgent need. Please contact us at support@esketit.com to arrange this.

You can automate the investment process using Auto-Invest. Auto-Invest is the possibility to choose your investment criteria, such as preferred interest rate, maximum and minimum investment per deal, maturity date, and the system will automatically invest your money as long as your account balance is sufficient, and the deals are available for investment.

Don’t forget: if you register through this link  you get 1% cashback bonus during the first 90 days.

For other bonuses visit our Cash-back & Bonuses page.

 

How do we protect ourselves from inflation?

By Smart money, , , , , ,

Inflation

The signs of inflation are becoming more pronounced and have begun to be seen in the wider world. Although the Federal Reserve and the Central Banks assure us that this rise in inflation is temporary, things are not so sure.

It would not be the first time that the authorities of any kind assure us that not much will happen and yet, after these assurances, exactly what they assured us will not happen happened.

It seems that we are in shortage of raw materials and inputs of all kinds: industrial metals, plastics, wood, foodstuffs, semiconductors and many more… and this contributes greatly to rising inflation.

Not all of these increases have been passed on 100% to final consumers, but they will be passed on in the near future. In other words, products of all kinds will continue to become more expensive in the near future.
The combination of low production during a pandemic + money injected into the system + billions of people escaping lockdown and restrictions and preparing to consume and travel, all this forms a super favorable cocktail for inflation, at least in the short and maybe medium term.

Who loses because of inflation?

  1. Those who save – Cash or savings accounts with zero and some interest + those kept in long-term deposits will be affected. They are already devalued compared to a few months ago.
  2. Consumers – Because most of the products and services we consume become more expensive.
  3. The heavily indebted (who have variable interest rates) – Because variable interest rates will most likely increase.
  4. Part of the investors in shares – Inflation creates some disturbance on the stock market, especially for those who hold growth-type shares who live on debt and do not produce enough cash flow and profit. Inflation creates the preconditions for rising interest rates, and this could lead to a decrease in the quotations of many companies, especially those that:
    •  are indebted
    • do not produce enough profit and
    •  are heavily dependent on the price of raw materials and that they cannot afford to easily transmit those costs to consumers.
  5. Fixed income bondholders – Fixed income instruments depreciate when inflation rises.

Who wins due to inflation?

  1. Indebted States – Given that most government securities are issued at fixed interest rates, below inflation and in the long term, states have the opportunity to reduce their debt burden through inflation. Well, what does inflation mean? Devaluation of money. And who benefits from the devaluation of money? Those who borrowed money with fixed interest and, more precisely, who are the biggest borrowers who benefit from low fixed interest rates? They are the issuers of government securities, ie the States.
  2. Manufacturers – Inflation means the appreciation (in monetary terms) of real values in the economy: goods and services that meet real needs. They are not necessarily valued, but only valued in monetary terms – more money on the market, the same amount of goods and services, resulting in more money for the same amount of goods and services. Of course, producers can lose if they do not pass on to consumers the high costs of raw materials. In the end, however, most producers will raise their prices if the market allows it.
  3. Goods and companies producing goods (energy goods, industrial metals, agricultural raw materials)
  4. Real estate owners – real estate is traditionally a good hedge against inflation. All raw material prices have risen – well buildings are made of raw materials and now it costs much more to build a block of flats or a house than last year. If you already own that house / apartment, then the value of your property has just increased due to the increase in raw material prices.
  5. Shareholders in companies producing solid cash flow will most likely benefit from inflation. This would include companies that have a low degree of indebtedness and a high profit margin, this includes companies that can easily make products more expensive (they don’t have much competition): this includes banks and other solid businesses that are cash flow machines.

What can we do concretely to protect ourselves from inflation?

  1. Pay debts with variable interest rates – If we have money lying in deposits, then it would be an obvious but important step. Even if we can’t pay our loans in full, it’s good to pay in part. With inflation, interest rates increase and consequently your bank rates will increase.
  2. Convert variable interest loans into fixed interest loans – If we cannot pay our loans, we can try to renegotiate / refinance them to convert them into fixed interest loans. If there are quite a few options to obtain long-term fixed interest loans, we can look for solutions that cover at least one period of the loan, if not the whole period.
  3. Beware of bonds and government securities – If we have bonds or government securities with fixed interest, along with inflation, they will decrease in value, and the interest paid by them may become real negative.
  4. Consume less – When the prices of goods and services rise, ie we have inflation, it is a good time to optimize and streamline consumption. If in the periods of low inflation we allowed ourselves to be more “broad-handed”, in the periods of inflation we can no longer afford to buy much and for no reason, because it costs us more.
  5. Make long-term contracts – We block any recurring cost through long-term subscriptions. Here we are talking about costs that we have anyway, not new costs.

How do we profit from inflation?

  1. We become producers
    When you have a fixed income (salary), there are little chances to counteract inflation. Any increase in revenue will come with a significant delay over inflation. If you get your income from freelancing or a business, you have the freedom to raise prices and take advantage of inflation.Inflation essentially means that there is too much money on the market compared to the amount of goods and services available. When you position yourself on the side of the producer, you are actually positioning yourself on the winning side of the barricade.
  2. Invest in shares of companies that profit from inflation
    In general, stocks are positively influenced by inflation, given that most listed companies can raise prices with the devaluation of money.However, inflation can affect the value of companies such as those with fixed incomes (subscription-based incomes such as telecom or utility companies) or those with excessive indebtedness.The companies that could benefit from inflation are either those that benefit directly from rising interest rates (banks), or those that have the flexibility to raise prices: energy, food, consumer goods, etc.
  3. Real estate
    Real estate in general tends to keep up or even exceed inflation. In addition, the owner of real estate for rent has the opportunity to protect himself from inflation by increasing the rent.
  4. Commodities and precious metals
    Gold is traditionally an asset that protects us against inflation (long-term and very long-term), tending to appreciate in times of inflation. However, we must know that in the short and medium term, gold is not required to follow inflation (but only in the long term).You can invest directly in physical gold or in financial instruments that have gold as their underlying asset.Commodities are generally appreciated during inflationary periods. They are very sensitive to inflation. You can most easily invest in commodities either by buying a commodity ETF (synthetic replication) or by buying shares of commodity producers.
  5. Invest in stock indices
    Moderate inflation will favor stocks in general. Too high inflation can affect them in the short term (the reasons are multiple – many companies cannot instantly pass on to consumers rising raw material costs + indebted companies are affected by rising interest rates + higher interest rates mean lower stock valuations).In the medium and long term, stocks are generally a very good protection against inflation, having, historically (the US market in the last 100 years), a significantly positive net inflation return of approx. 7% (7% + inflation).

Conclusion

Finally, we must remember that all the above actions and instruments can protect us from inflation theoretically, but the economy is a living organism and the appreciation or depreciation of various assets are influenced by many other factors besides inflation: economic growth, demand, psychological, demographic or social factors etc.

A prudent approach, a diversified allocation of assets and a constant focus on value creation will often position us as winners, regardless of market conditions.

An educated mind that constantly learns and constantly tests will have the ability to adapt to any market conditions and will thrive in the long run.

 

How to effectively protect yourself from investment risks?

By Smart money, , , ,

Risk/Reward

 

Every time we think about the idea of making investments, the first thing that automatically comes to mind is the notion of risks.

This way of thinking is typical for the field of investments and is much less present in our normal, everyday life.

Or not…?

How present is the concept of “risk” in our lives?

Obviously, certain risks normally exist for us no matter what we do, only we don’t think about them all the time and we don’t worry too much.

Because they are quite small, and most of the time they are even EXTREMELY small.

For example, how many times do you happen to climb the stairs and fear that you might stumble and break a leg? Or how many times do you walk down the street with fear of having a serious accident?

Probably quite rare…

And yet, such accidents happen, because we hear about them many times and we even see them on TV.

However, they are very rare (thankfully!), So it would be abnormal to live our lives in constant fear of them, always thinking about these risks and everything that could happen.

In terms of investments, however, the way of thinking is exactly the REVERSE!

Every time we are interested in a certain investment, we must analyze very carefully the situations in which things could go exactly the opposite of how we hope.

What would happen in those cases, how we would react to an adverse scenario, how much we could lose – all this must be part of our plan from the beginning.

For the simple reason that sometimes these investment risks do occur, no matter how carefully and inspiringly our initial plan was made.

Therefore, the question we need to ask ourselves is not “IF” but, rather, “WHEN” the risks associated with each investment will occur.

It is very important to find out the answer to the question “HOW MUCH” can we lose if those risks occur. Because depending on this answer we know how to plan and manage our investment correctly from the beginning.

In any investment, the main concern related to risks is that, in case they occur and we have losses, they should be as limited as possible.

Because all investors, absolutely ALL, face these investment risks and therefore sometimes incur losses.

Even the famous Warren Buffett, probably the biggest investor of all time, constantly in the top of the richest people in the world, reported a significant loss a few years ago as a result of his investment in Tesco.

What is interesting is that, although in absolute terms this loss seems huge (being several hundred million dollars), in fact it represents only about 0.2% of the net value of the company run by Buffett (Berkshire Hathaway).

In fact, over the last 50 years, Berkshire Hathaway has once lost 2%, with the rest being less than 1% of its net worth. These impressive results confirm that the winning strategy is to keep the risks to a low level, and therefore the potential losses.

How can you effectively protect yourself from risk?

Self-knowledge and study are the most important elements when it comes to investing.

If you understand how you react to risks and potential losses, it will be much easier for you to build a portfolio that fits your risk profile and helps you achieve good long-term results.

Here are 4 things you should always think about BEFORE making a certain investment, so as not to expose yourself to too much risk:

1. How much can you afford to lose?

How much money do you have available for these investments? And, most importantly, how many of them could you lose without significantly affecting your portfolio (or even your standard of living)?

In addition to answering these questions, you need to think about whether you are comfortable with the fact that you will make those amounts unavailable for a certain period of time, specific to each investment.

2. What is your time frame?

The time frame for which you intend to invest is directly related to those risks that you are willing to accept.

The longer you invest for the longer term, the more chances you have of recovering from any declines, so you could take, at least theoretically, higher risks.

On the other hand, as you get closer to your goal (eg financial independence), you need to prepare your portfolio properly so that you decrease the total level of risk you take.

3. How well do you know the investment you want to make?

The main risk of an investment is the investor himself. Or, as Warren Buffett says, “Risk exists when you don’t know what you’re doing.”

So, before you embark on a particular investment, get seriously informed and try to really understand how that investment works.

What are the main risks? What might not be going well? What are the positive scenarios and what are the negative ones?

And, most importantly, what will YOU do in each of these scenarios?

Once you find the answers to these questions, it will be much easier for you to make a concrete plan, which you can implement when the situation demands it.

4. How do you deal with these risks emotionally?

Your emotional ability to cope with change, unforeseen and potentially dangerous situations is very important.

If riskier investments stress you out and affect your daily life, you should probably turn to lower risk instruments.

Even if it is said that high profits are usually brought by investments with higher risks, you should know that there are enough profitable options to invest with medium or even low risks, so that, in the long run, you do not end up ruining your life and the health.

IN CONCLUSION, you can reduce the risks of your investments by investing:

– in a diversified portfolio, with investments that you understand

– which is adapted to your risk profile

– long-term and very long-term

– investing regularly, amounts with which you are comfortable.

This way you will be able to build an investment plan to help you get good profits, in conditions of limited risks.

HeavyFinance crowdlending platform overview

By Peer-to-Peer Lending, , , , ,

HeavyFinance

HeavyFinance opened a completely new asset class for retail investors – loans backed by heavy machinery. This is the first crowdlending platform in the world focusing on heavy equipment as collateral to make investments more secure.

HeavyFinance was founded in 2020 by four experts in different fields such as heavy machinery, finance, marketing and project management. Two of the co-founders are serial entrepreneurs who established successful companies like Finbee, Nova rent and Litrental.

HeavyFinance is supervised by The Central Bank of Lithuania under the track of crowdfunding platform operators. The Central Bank of Lithuania is one of the leading central banks in the world taking active monitoring and regulating efforts as well as fostering innovations in the financial sector.

Investing on HeavyFinance is available to anybody over 18 years old, while the company has some geographical restriction for borrowers. HeavyFinance is focusing on issuing loans to entities based and operating in European Union with primary focus on Lithuania, Latvia, Portugal and Bulgaria.

On HeavyFinance people can start investing from 100 Eur.

Loan period usually varies from four months to three years. However, if you want to sell the part of your investment portfolio earlier, you can do it on the secondary market.

How is the risk measured?

First of all, people can choose to invest in loans depending on the risk they are willing to take. Risk levels are indicated by letters A (lower risk), B (medium risk) and C (higher risk). Consequently, while you could earn up to 14% interest rate by investing in C risk level loan, A risk level loan would bring you around 10-12% interest rate depending on the amount you’ll invest.
Talking about the risk assessment in more detail, these are the main criterias HeavyFinance looks at:
● Financial statement for past 2 years;
● Balance sheet;
● Cash flow statement;
● Reputation of business owner;
● Loan-to-value ratio;

As of today, the platform already helped people to invest more than €1M in loans backed by heavy equipment and arable land with 12,14% average return on investment. Furthermore, the platform didn’t have any defaults so far.

Don’t forget: if you register through this link  you get 2% investment bonus as long as the investment is active with HeavyFinance for a 30 day period from the investment date.

For other bonuses visit our Cash-back & Bonuses page.

 

The “secret” to reaching the first 1000, 10000 and 100000 EUR / USD

By Smart money, , , , ,

Compound-interest

Most people get stuck until they reach the first 1, followed by a few zeros of  earned /saved/invested money, and they stay in the “start” area for the rest of their lives, taking it over and over again from the beginning.

This is why most people do not become financially independent and do not truly achieve financial prosperity.

The first 1000 EUR invoiced from the new business;
The first 10,000 EUR invested on the stock exchange;
The first EUR 100,000 in the personal portfolio;
The first studio for rent;
First salary / bonus etc. of EUR 3000 (the example is relevant, even if it does not start with 1)

The effort to reach the first 1, followed by a few zeros, is enormous and many give up along the way. What they don’t know is that after you hit a 1 followed by a few zeros (2,3,4 etc.), the rest of the zeros are much easier to reach.

After 10 years of struggling to reach a portfolio of 100,000 EUR, most likely up to 200,000 EUR could take you much less, up to 300,000 EUR less and so on.

The same applies to investments. You can constantly invest 200 EUR per month, without seeing a big difference in the portfolio, until, at a certain moment, the compound interest intervenes and your portfolio grows rapidly.

 

The graphic result is more than clear:

Calculator_initial

200 EUR invested monthly for 20 years at 10% interest

The result is:

Calculation result

Result after 20 years

The graph “speaks” for itself:

Balance after 20 years

Balance after 20 years

So don’t get lost on the road, but continue at maximum acceleration, until you reach that goal of 1 followed by a few zeros.

After that point, things will become easier, automated, routine.

So the “secret” is that there is no secret: all that is needed is discipline, patience and time.

Nibble investment platform overview

By 1 commentPeer-to-Peer Lending, , , , ,

Nibble is a financial platform that connects investors and lenders throughout Europe. The investment guarantee is much safer because the loans are issued by the companies which are part of the IT Smart Finance Group which are

joymoney
RURussia
ESSpain
MXMexico 2020

The Joymoney brand has been working in the field of alternative loans since 2014. The company is based in Russia and operate in Russia and Spain. Mexico’s operation is scheduled for 2020. Joymoney’s mission is to provide their customers with the opportunity to solve their financial difficulties quickly and safely. The company use their own innovative developments, including patented software solutions, big data analysis, scoring model system and risk management solutions.

Nibble offers two type of loans:

  • Short-term loans (PDL):
    • Loan amount – up to € 500;
    • Loan term – up to 30 days;
  • Installment loans: (Installment):
    • Loan amount – up to € 1000;
    • Loan term – up to 90 days;

Nibble is based on the «Peer 2 portfolio» model. Nibble offer investors the opportunity to invest in alternative loans simply and safely. Nibble offers investors a Buyback guarantee even if the loan is past overdue more than 60 days.

Nibble allow investors to create an investment portfolio in a fully automated way. The investor can establish the portfolio parameters and preferences like the minimum and maximum investment amounts, countries to invest, etc.

One of the main Nibble’s features is that it offers investors a return on investment of up to 12%, exceeding the average profitability of the market.

How does Nibble work?

Nibble is a financial platform and a part of IT Smart Finance holding group. The platform allows individuals and legal entities to invest in given loans, issued by companies of the holding, which have a long experience on a loan market.

Nibble structure

Every client who receives a loan passes a multi-level verification system and receives a scoring assessment on the solvency related to their credit history. From the total amount of applications, the level of acceptance for primary clients is 10%, which allows the company to control risks and ensure repayment.

If the loan is on delay, the company that issued the loan guarantees to buy it back on the 61st day (Brands Joymoney RU, Joymoney MX, Joymoney ES).

Nibble is responsible for the security of transactions, safety of money in investor`s personal account, and provides protection of personal data.

During its active time, the loan will accure the percentage of yield as agreed. By the end of the term, the client has the option to choose from any of our reinvestment alternatives and increase their income. By doing so, the money will be reinvested automatically in new loans. Every individual and legal entity in Europe, including the countries of EU (Switzerland and Britain) can become an investor.

How to start investing on Nibble?

To become an investor in Nibble P2P platform is fast and simple.

If you reached the age of majority and have a bank account in any country in Europe you can be an Investor on Nibble, you just need to register and verify your identity. Nibble works in most European countries, such as Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

You need to register to start investing and earning income on Nibble. After the registration, you can deposit money to your account starting from 10 euros. Then, you can create an investment portfolio by choosing the necessary options and become an Investor!

Currently, the maximum deposit limit on Nibble is 10,000 € per month.

If you invest for the first time at Nibble don’t forget that you can get 1% cashback bonus for the investments made in the first 90 days.

 

 

What to do: pay off the credit or invest for passive income?

By Smart money, , , , , , ,

Pay off the credit or invest for passive income?

I saved a certain amount of money and I manage to keep saving month by month, what do I do? Do I pay off my credit or invest to generate higher income in the future?

Probably many of you have at least one mortgage loan and/or one or more consumer loans (if you read this article) and at the same time you have started to accumulate some financial reserves and may have thought or even started to put the money to work. In this context, you may also think about the fact that interest rates may rise, a crisis may occur at any time and at the same time you can see the good profits that have been made and are made from real estate investments, stock exchange, cryptocurrencies and business.

In all this context, it is normal for the answer to the question to pay the credit or invest the money to be complex, with many variables and uncertainties, but also so important. Basically the answer can guide your financial strategy for several years.

Let’s begin!

Before I should ask myself if I pay the credit or invest, there are some things we have to check:

  • If there are debts from credit cards and overdrafts with interest rates above 15% -20%, those should be paid before we think about investments;
  • Consumer debt, car etc. – we should focus on them and pay them in advance before investing;
  • We fail to save constantly – focus first on building this habit;
  • Reserve fund to cover living costs for a period of 6-12 months.

Before you have all the above checked, you should not even think about starting investing.

Any consumer credit used for the acquisition of liabilities should be paid as a priority. Real estate and investment loans (those used to purchase assets) are the ones we can doubt whether we will pay them in advance or not.

We will talk specifically about real estate loans, to simplify and make the analysis relevant, but we can have the same analysis process in the case of a non-real estate investment loan.Well, now the question that remains is: Do I pay the real estate loan or do I use my future reserves and savings for investments?

Economically speaking

From an economic point of view, we will compare the actual effective interest rate of the loan with the expected net return on investments.

For example, we have an interest of 5% on the mortgage loan and

a  return estimated by us of 10% of the investment in shares (historical average yield)

or

we find an apartment at a very good price and with a rent yield of 8%

or

bonds with 9% interest

and so on….

So we have on one hand a 5% safe interest vs. a yield estimate of 10% or 8% or 9%.The decision may seem obvious – at such a yield differential, in 20-25 years you pay the property 2 times.

But the decision is simple just at first sight and it becomes more complex when we go deep. Why? Because the interest rate on credit is safe (if it is 5%, it is 5% no matter what I do) while the return on investments is always an estimate.

Estimate because:

  • The stock market may no longer perform in the next 10 years as in the past or you catch a very weak interval;
  • The yield on the rental property may decrease, or it may not be at all, unless you have a tenant or you find a structural problem of the construction;
  • The issuer of the bond can go bankrupt and you lose all the money.

There are risks that you must take into account to adjust the returns on investments with the percentage of risk. Professionals always calculate their adjusted return on an investment. The calculation is very complex and has many variables. But for the sake of simplification we can estimate a differential for the degree of risk. For example: -1.5% for a very good real estate, -2.5% for small and medium-sized companies bonds and -3% for blue chips shares.Thus, we now have a comparison between + 5% credit payment and (10% – 3% = 7%) for shares; (8% -1.5% = 6.5%) for real estate and (9% -2.5% = 6.5%) for bonds.

Now it’s a little clearer. We know that up to a loan interest rate of 6.5% or 7% we can invest without problems, but if the interest exceeds these levels it becomes more profitable to pay the credit.

Of course, the calculation is relevant depending on how well we made our estimate of future profits.

Many investors and business owners maintain their long-term loans, knowing that they can generate higher long-term returns with the same amount of money. This is the case of many smaller or larger entrepreneurs, it is the case of those who invest professionally or even those who invest passively in the long term.

Obviously, a solution would be to make more risky and / or more active investments that can bring higher returns, but in this case you really should know what you are doing.

Important is to make your calculations as well as you can, because, after all, nobody knows the future.

Psychologically

The need for survival/safety is lower (and stronger) on Maslow’s pyramid than aspirational needs. From here comes a degree of stress that will make you quite conservative in investments when you have unpaid loans.

Emotions are not good in investments.

To make a decision:

  • Do your calculations – see economic analysis above;
  • Calculate your risk profile;
  • What decision would make you unable to sleep at night?;
  • How would you feel about paying off your debts? But what if you didn’t pay them?
  • How would you feel if you invested in passive income? But what if you didn’t invest?
  • How would you feel if you paid your credit with 5% interest and the stock would have a 50% yield that year, which you would not benefit from? But if you did not pay your credit and invest in the stock market, and the stock market would fall by 50% that year? Which of these 2 options would most disturb you?

When choosing whether to pay your credit or invest/accumulate reserves you must take into account both the economical and psychological aspects. Both are important, but more important are the psychological ones, because they have the power to sabotage you.

Finally, if you are still not cleared how to proceed, you can choose the middle way and use the amounts saved according to the formula: Invest = (10 – Credit interest rate) and with the rest pay the credit. That is, if the credit interest is 4% and you save 1000 EUR per month, you pay in advance (or you set aside to pay in advance) 400 EUR and you invest 600 EUR.

Simple, right?

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