Pros and Cons Peer to Peer Lending

I amaze that someone that you do not recognize lend you some money. They may want to help you to pay off your credit. We can also determine the interest rate. Something that is impossible if you borrow money from Bank. There are some kind people who charge low interest. I do not know the admin fee of the peer to peer landing. I guess it is not much as administration bank fee.

The borrowers may get money fast, meaning you will get the money fast. It is good too pay off your debt fast. The application is not difficult as bank or other financial institution. 

The cons of the P2P lending are the limit of the credit. You cannot use the P2P to buy house, car, or student loan.   

Debt is still debt. You may get the lower interest but you should pay off the debt. This world where has no free lunch. When the debt due, you have to pay the debt and the interest. The interest is not higher as the bank loan but you still pay the taxes. The interest is higher than deposit rate. You cannot set the interest that is lower than deposit rate because the lender will not want to do it. They want to lend you because the interest is higher than the deposit rate.

Perhaps the lender will charge fine if you do not pay it. The debt still chokes you. Like snowball that will chase you.

I wonder when someone lends you money without interest rate or any interest. They just want to help you to get out from debt.  You can pay off the back if you are able to do it. You are better to find your friend or family who can help you. They may help you without interest.    

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Peer to Peer Landing, what is?

To be honest, I just know about peer to peer landing, after reading blog mint article. The aim the peer to peer landing is to reach the people that can borrow from financial institution such as bank and credit union.  We or you can find a man who wants to lend you some money.

This facility connects a people that need money and others that need to lend. The lender want to lend the money to get the interest; while the borrower want to borrow money for business or paying off credit card. The lender realizes that the money so abundant but they do not know to use the money.  

It seems easy to lend some money from other now. As long you have good credit points you will get the credit easily. The interest is lower than the bank.  That is why some credit card uses this for credit card consolidation.

Peer to peer landing is credit even though this is cheaper than any credit. You still have to pay the credit.  I am not recommend use the peer to peer because it may harm your money. I prepare not to borrow to pay of my debt. 

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5 Mistakes in Grocery shopping

We must go to grocery shop periodically to buy food and some needs unless you eating out. There is so many products at grocery that often attract us. The grocery’s owner arranges the product to attract the consumer. The products looks talk to us and said buy me, buy me.
1.    Buying brand names
The brand names must be more expensive than the generic items. People think that brand name’s quality is better than the generic. Actually, some company produces either generic or brand names. The different of the product is the packaging only. I believe you will n buy he packaging if you know it.
2.    Not List
Before go the grocery sore, you have to prepare the list. Write what your want to buy at a piece of paper. You may need to buy bread, meat, vegetables, milk and others. You should also calculate the price and sum the total.
Without list, you can make impulse buying and you may waste the time. We may forget to buy the items that we need. We walk around the grocery When they are coming home, they buy some items that they actually do not need it.
3.    Bring Credit card to grocery
Credit card with no limit must tempt you to buy more and more. You are better to buy cash to brake the spending. Bring enough cash as you have calculated at the list.
4.    Not use coupon
I think coupon can save some dollar. There are some free coupon that offers 100% free product such as new ketchup, a small bottle of soda, a small pouch of detergent, and others.  Some coupon rebates up to 70% for a milk, meat, meat ball, fish and other. Some other coupon adds the quantity of the product. For example, you can get one if you buy one (buy one to get one free (BOGOS))
We can get the coupon from the local newspaper or internet. Clips the coupons and take them to the store that you can use the coupon.
5.    Buying Too Many perishable items
Do no buy too much vegetables and meat due it is perishable. Though, you have good refrigerator, the green vegetables will be dried in a week. You cannot cook dried vegetables and you will not eat it. Your child will not like the fruit that you save in refrigerator more over the meat that you have saved for weeks. The smell and the taste must be bad.
Some people buy to much perishable because the discount or rebates. They buy, for example, five bottles of milk because the price is same to two bottles of milk. You should not use the coupon for perishable income unless you have big family. 


As long you do not make some mistakes, buying grocery can save money.

How Financial Plan Help you in recession

Normally, people will be difficult live in recession. They could be fired by the company because the company may not need them again. They will difficult to make money while they should still spend money. Finding a job is not an easy jobs. The employee demand low but he supply is so high. Most unemployed want to get jobs. I saw some doctoral degree offers themselves to work for food only. It is a pitiful story. Getting doctoral degree needs much money but they just get food. The recession makes us suffer.
However, Some people can get benefit while in recession. They are clever to create the financial plan. They can stream more income while other people are very difficult to get one dollar. Her are how financial plan help us in recession:

1. The financial plan has planned to create a good portfolio
Some people who own gold bar, gold coin, silver and other precious metal can make more money. The gold price has hit $1700 troy oz and it could hit $ 2,000 anytime. The people must be more wealth than before.
We invest in various investment both real asset and financial asset. Land and property is also good investment now because the price never decline. Some investor sells the stock and use the money to buy land or property. Though the stock return is not good now but you do not have to sell the entire stock. You have better keep the best stock. When the economic recover, the stock will increase and you will get high return.
2. The investment portfolio
The financial plan does not invest at the capital market agressively. Due the recession, they invest few stock only. They reduce the stock in their portfolio except some defenssive stock that can make money. The defensive stock including food company, retail company, and others. People still use soap or tooth paste even the economic is very bad.
The best portfolio may no give you much money at the recession time; however, the investment also gives return too.  We should be clever to construct a good portfolio.
We invest money to cumulate money that we need it at the future. We can use the money when the kid goes to university.
3. Own house
The house price has been decreasing since the subprime mortgage. The decline price is almost half of previous price. You can settle the mortgage immediately if you have money. By owning house, you do not have to pay the mortgage or pay the house rent. You do not have to move from an apartment to another apartment.
Owning some house can increase your wealth too. Some people buy the cheap house for business. They repair the house and paint the house. They sell the house to any people who hunt a house. You can also rent your apartment to student or worker.
4. Own crop and farm
People need food and beverages. If you have so much crop that produce abundat wheat and oat, you can make money. People need wheat and oat for bread and bubur. In the recession, they may reduce the cereal but they cannot avoid to use it.
Financial plan also suggest you to buy the productive property. You can buy it cash or you save first to buy the land. The price for land increase yea o year. You will no sorry if you buy the land. Surely, you have to research the land first and make sure the certificate of the land.
5. The credit
I do not like to owe money. In recession, the interest rate lows. The government want the businessman borrow money to operate the company. With the interest rate near zero, you can slash the company spending or cost. However, most businessman has no money so they cannot borrow the money thought the debt at zero.
Personal finance plan teach us not to borrow money. We can calculate the profit and the loss of credit. We should pay more cash by using credit. We are better save the money to buy something than credit to buy something. I must be cheaper but I need good commitment. If you use the money you will not be able to buy the item.
6. Retirement fund
If we contribute the retirement fund dozen years ago, we can get benefit now. The retirement fund help when we loss the jobs. You can use it to found a new business or build a crop farm. A personal finance also suggests us to allocate money for retirement fund because we cannot work forever. The company will retire the old man because they are no productive again. By using old man, the productivity of the company goes slowly.
The financial plan counts some money hat you will receive after you do no work again. Of course, it also consider your lifestyle. For employee they may save 10% of salary for retirement fund. On he other hand, a man without a fix jobs such as freelances should put more than 10%. They may put 15% for the retirement.
When they retire, they receive payment from the retirement fund. The amount might be similar to monthly payment. They can live without work. They can buy food, cloth, and other item and they can stay in their house comfort.
7. If you saves 10% of your paycheck as you have planned in your financial plan, you can use the money now. Saving is important thing. You can use when you use money immediately. Sometimes we face with unexpected expenses. Perhaps our car his garage and we should repair our car. We can use the saving first.
A recession time, we should expense more money because the price of things increases. We can use your saving to cover our spending. Off course you should consider to reduce your spending or increase your income.
Financial plan help you to live below our mean. We should have commitment to obey the financial plan. Spend wisely and increase your spending to reach wealth.
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