Financial Intelligence What Really Is Insanity?

Financial Intelligence What Really Is Insanity?

Naturally, most if not all of us want and crave for something better. It is all part of us if we want a bigger car, a better house, buying good things for the family. We keep hoping for more but, in order to get what you do not have, you have got to do something that you have never done before.

That simply means:

Doing the same thing over and over again YET expecting different results!

As an employee, you can't just stay at the same job forever and hope that a miracle will happen and out of nowhere your boss will suddenly give you a big raise. You will be lucky that there is no downsizing in your company. Switching to another company will only provide you with a short term solution to a long term problem.

Sure, you can take up a second or even a third job, but the question, is do you have enough hours and stamina in a day to sustain it?

The bottom-line: Trading time for money is not wise financial sense in the long term. You keep on increasing the hours just to win the rat race, but in the end of the day, you are still a rat on the mill!

Increasing your wages only puts you in a higher tax bracket. Your salaries increase but so does your expenses on your house and car. How will you invest in yourself when all the time you spend working for a company, working for the government paying taxes and working for the bank paying off

your house and car? What if you fall sick and can't work for a few months? Will the government take care of your family?

I highly doubt so.

So isn't it time you take your finances a tad more seriously?

To start your internet business on the right path, visit http://www.buildmyincomedaily.com/id/jorgeanton

Robot kills worker at Volkswagen plant in Germany

Contractor was setting up the stationary robot when it grabbed and crushed him against a metal plate at the plant in Baunatal

A robot has killed a contractor at one of Volkswagen’s production plants inGermany, the automaker has said.

The man died on Monday at the plant in Baunatal, about 100km (62 miles) north of Frankfurt, VW spokesman Heiko Hillwig said.

The 22-year-old was part of a team that was setting up the stationary robot when it grabbed and crushed him against a metal plate, Hillwig said.

He said initial conclusions indicate that human error was to blame, rather than a problem with the robot, which can be programmed to perform various tasks in the assembly process. He said it normally operates within a confined area at the plant, grabbing auto parts and manipulating them.

Another contractor was present when the incident occurred, but was not harmed, Hillwig said. He declined to give any more details about the case, citing an ongoing investigation.

German news agency DPA reported that prosecutors were considering whether to bring charges, and if so, against whom.

Buy-to-let lending booms at Paragon

Specialist lender increased loans to landlords by almost two-thirds the six months to March

Paragon increased lending to private landlords by almost two-thirds in the first half of the specialist mortgage lender’s financial year as the buy-to-let boom continued. 

The company said new buy-to-let mortgages rose 65.7% to £446m in the six months to the end of March. Paragon’s so-called pipeline of new loans awaiting completion more than doubled to £701m from £348m.

Profit before tax, excluding changes in the value of hedging arrangements, increased by 10.4% to a record £63.9m. The company increased its interim dividend by 20% to 3.6p a share.

Paragon was Britain’s biggest buy-to-let lender before the credit crunch. It stopped lending for two years after the crisis reached its peak in October 2008 but sprang back to life in 2010 to capitalise on demand from professional landlords. 

With interest rates at a record low of 0.5% for more than six years and rents rising, many of those able to borrow have turned to property investment for an income. Those who stayed in the market when property prices fell during the crisis have so far been rewarded. Returns on buy-to-let property have outstripped shares, bonds and cash since the market took off in 1996, earning returns of almost 1,400%.

Nigel Terrington, Paragon’s chief executive, said: “These results demonstrate how far Paragon has progressed in recent years as one of the UK’s leading specialist lenders. Considerable growth in buy-to-let lending volumes and strong momentum into the second half of the year, complemented by the launch of a number of additional products, have significantly enhanced the group’s franchise.”

Some economists have warned that Britain is in the middle of a property bubble that could burst when interest rates rise. The Bank of England warned a year agothat house prices could be heading for a crash in a rerun of previous booms and busts.

Paragon said provisions for loans at risk of non-payment more than halved to £3.5m from £7.5m a year earlier as new cases of loan arrears fell and customers made payments that were overdue. Rising house prices also protected existing borrowers from defaulting on their mortgages.

“The loan books continue to be carefully managed and the credit performance of the buy-to-let book remains exemplary,” Paragon said.

Many landlords who bought property before the financial crisis have mortgages that track the Bank of England’s base rate. As a result, their costs have plunged since rates were cut to 0.5% in 2009. Retirees with greater freedom to spend their pension pot under the government’s reforms also have the option of putting some of their money into property.

Virgin Money tightens up its buy-to-let lending

Landlords will be limited to four properties and a maximum loan of £2m, while Virgin Money’s minimum property price will rise to £50,000

Virgin Money is to cut the number of buy-to-let properties it will lend on and reduce the maximum a landlord can borrow to finance a portfolio.

From 8 July the lender will allow landlords to borrow to finance only as many as four buy-to-let properties – the previous limit was 10. And the maximum it will lend to a landlord will be cut from £3m to £2m, while the minimum property price it will lend on will rise by £10,000 to £50,000.

The announcement comes a day after the Bank of England warned that increased buy-to-let lending could be a threat to financial stability, and follows a steady rise in the proportion of the mortgage market given to investors.

Virgin Money has been offering some of the most competitive deals to landlords, with a two-year tracker deal starting at just 2.09% among its range.

A spokesman for Virgin Money said the changes were designed to bring it in line with its “core customers” who were amateur landlords, rather than professionals, and that it was “still absolutely committed to the buy-to-let market”.

Daniel Bailey, who runs mortgage brokers Middleton Finance, said the changes could have an impact on landlords trying to build a portfolio “at the lower end of the property market”. 

“Not many lenders will lend on a property value of £50,000 as the majority of lenders’ minimum property valuation tends to be £75,000. As a broker in the north I do see lending at that level,” he said.

“Demand for buy-to-let lending is very strong at the moment and I think we will see other lenders regularly reviewing their criteria. Lenders will not want to get overexposed in one particular area.”