Monthly Archive: November 2019

Your rights during the sale and more UK loans

Every now and then shopping madness overwhelms us. Whether on Black Friday or during summer or winter sales. Shops tempt with discounts.

Sometimes, we will make an unreasonable decision. We will buy something defective or something that we do not quite need. What are our rights then?

Discount hunting is what many of us like the most

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We often stop shopping until the sale. Goods can then be discounted by several dozen percent. Above all, however, remember that this does not mean that you should buy something just because it is cheaper.

In the end, even overpriced goods, however, will deplete our wallet. So let’s always make a cold decision and think about whether we really need something. It is not worth spending a significant part of the payout on something that then lies in the closet.

Returns in stationary stores

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If we bought something in a stationary store and after cooling down, we decided that we do not need it, unfortunately, but British law does not protect us. There is no such thing as returning undamaged goods. However, the fact that sellers do not have such an obligation does not mean that they do not offer such an opportunity. Many stores allow you to return goods based on your own regulations. This means that in different places, the situation will look different. Therefore, it is always worth finding out at the checkout what the regulations of a given store are.

What if a discount was applied to the goods?

If a store or boutique accepts returns, this can usually be done within a certain period of time. For example, a week or a month. Remember, however, that discounted goods may have different rules. For example, it may be that they are not refundable.

On the other hand, e.g. in the pre-Christmas period, the payback period may be extended. Regardless of everything, you must always have proof of purchase. Keep receipts for this purpose.

You never know when they will be useful to you. The store may also include proof of transaction with your payment card. You will not always get a refund. For example, sometimes you can get the option of exchanging goods for another.

See what to do if a product is defective

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The situation is different when the purchased product is defective. Then British law is fully on your side. You are always entitled to a refund, unless the seller has clearly warned you that the product is defective. Then the situation is clear, you knew what you were buying. The same if the fault was the reason for the discount. Of course, in this situation you are not entitled to a refund. Every seller in the UK is subject to the Consumer Rights Act, regardless of whether the product is on sale or has been sold at a regular price.

So if you bought a product that turned out to be defective, contact the seller within 30 days. He is then obliged to accept the item and return the money to you. Of course you must give it back to him first. If you have delayed more than 30 days, you do not lose your rights. Then, however, the store does not have to pay you back. However, he can suggest repair or replace the defective one with a full-fledged one.

Great Business Idea – Business Credit Loan

Perhaps most people have dreamed of their own business in their lifetime. It’s nice to be a boss for yourself, isn’t it? While your business means not only profit but also worry and a lot of work and stress, it still gives you a sense of freedom and independence.

Great business ideas

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Of course, starting a business is not easy. You need both money and a great business idea that works. It has to be said that a business idea is even more important than money, as there are several ways to get financing. The key is to have a good enough idea that is worth realizing and that will make a profit in the future.

It is often because of lack of money that people do not start their own business. However, there are several ways to raise money. One option is consumer credit to buy, for example, the office equipment you need to start working from home. However, there are also several programs that support young entrepreneurs. If you also have an idea that you want to realize, then go ahead! However, if you do not already have such an idea but have a dream of your own business then take a look at the article below to find great business ideas. You may be able to realize any of these yourself.

Jewelry making

If you are a creative person and like to do different things with your own hands then definitely think about making jewelry. Jewelry is in high demand, especially those that are original and different from those available in stores. When developing such a business idea, you need to be patient as well as careful so that the end result is beautiful and of high quality.

Pay off in the long run and make a profit

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Photography services

Although phones with really good cameras are available nowadays, people are still quite lazy to go to photo salons and develop their own photos. That is why a large number apply for a photo session with photographers to effortlessly get the coveted photos. If you are interested in photography, you can definitely offer photography services. At first, for a symbolic paycheck, you can think of making a profit when you are already noticed by people.

Creating a guest house

If you currently live in the countryside or own a property there, then setting up a guest house is a very good idea. Most people in the city love to relax in nature, where there is tranquility, tranquility and beautiful nature. Ideally, if your farm property is near water. In such cases, people would really go to rest at this place. Although building and maintaining a guest house requires a lot of work, it will definitely pay off in the long run and make a profit.

Car repair services

As you know, nowadays it is difficult to do without your own personal transport. Your car requires a lot of worries as it has to be repaired from time to time. Car services tend to have long queues, which means that car repair services are in high demand. If you are knowledgeable in such services, then set up your workshop with one or another.

Creating a bakery

People are very fond of different kinds of bread. If you like them and consider yourself a great cook, make your own bakery.

Accounting Services

If you are a certified accountant then it is time to start your own private practice. Many companies want to outsource accounting instead of hiring an accountant in their company.

Organization of events

If you enjoy events, are creative and know someone in a manufacturing or supplying company, then don’t hesitate to offer yourself to other people as a great event organizer.

A Smart Way to Distribute Money To Your Retirement

Time segmentation is a strategy that can be used to invest in retirement. It involves matching investments to the point where they will have to be withdrawn to meet retirement needs. Let’s look at an example.

Suppose Jan and Wacława are 60 years old. They plan to retire at the age of 65. They want to be sure that their first ten years of retirement income are secured. If they use a time segmentation approach, they may purchase bank deposits, bonds or other secure securities (or a combination of these things) in quantities that will allow them to reach age and will be available in the year in which they need them.

An example of time segmentation in practice

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Let’s assume that Jan and Wacława know that at the age of 65-70 they will have to pay PLN 50,000 a year to cover living costs. They find a number of deposits and bonds generating from 2% to 4% of income, which will expire in the years in which they will need these funds. This is called a ladder strategy. It works as follows:

  • Deposit No. 1 paying 2% – expires at the age of 65 Jan.
  • Deposit No. 2 paying 2.5% – expires at the age of 66 Jan.
  • Bond 1 paying 3% – expires at the age of 67 Jan.
  • Bond 2 paying 3.5% – expires at the age of 68 Jan.
  • Bond 3 paying 3.75% – expires at the age of 69 Jan.
  • ten-year investment with a fixed annual income of 4% – expires at the age of 70 Jan
  • Bond 4 paying 4% – expires at the age of 71 Jan.
  • Bond 5 paying 4.1% – expires at the age of 72 Jan
  • Bond 6 paying 4.15% – expires at the age of 73 Jan.
  • Bond 7 paying 4.2% – expires at the age of 74 Jan

Using the above schedule

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In the sections below I present the required investment needed at the age of 60 Jan. Including the interest he would earn to provide the needed PLN 50,000.

Deposit No. 1 paying 2% PLN 45,286.00
Deposit No. 2 paying 2.5% PLN 43 114.00
Bond 1 paying 3% PLN 40,654.00
Bond 2 paying 3.5% PLN 37,970.00
Bond 3 paying 3.75% PLN 35,888.00
10 years of fixed annual payment of 4% PLN 34,601.00
Bond 4 paying 4% PLN 32,479.00
Bond 5 paying 4.1% PLN 30,871.00
Bond 6 paying 4.15% PLN 29,471.00
Bond 7 paying 4.2% PLN 28 107.00
Total needed: PLN 358 451.00

Let’s assume that Jan and Wacława have a retirement account and other savings and investment accounts with a total value of PLN 600,000. After using part of their savings to cover the above time segments (which corresponds to their first ten years of retirement), they have PLN 242,549. This part of their savings and investments will not be needed for 15 years.

If they invest everything in shares (preferably in the form of stock index funds) assuming a rate of return of 8%, it will increase to PLN 766 234. We call this a growing part of their portfolio. In years where part of the growth is doing well, they would sell part of the stock and extend the time segment. By doing so continuously, they can always count on seven to ten years, being aware that they have safe investments that will allow them to cover their expenses. They have the ability to flexibly profit in good years and give him time to regain good shape in a bad year.

 

Notes on these calculations

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In these calculations I assume that all interest could be reinvested at the given interest rate, which in reality is often not possible.

I also don’t take inflation into account. In fact, Jan and Wacław would need more than PLN 50,000 in five years to buy the same amount of goods and services they would buy today for PLN 50,000. You can increase the needed PLN 50,000 a year by 3% over the whole period, until necessary. Later, discount them back for the return on investment to be used. You will need to make calculations based on your own inflation needs and assumptions.

If Jan and Wacława add money from the state pension to all this, maybe the required income will not have to be PLN 50,000 a year, only less. They may need the full amount of money sooner and then less when they start using social security.

Benefits of time segmentation

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Using a time-based approach, you don’t have to worry about what the stock market was doing today, or even what it is doing this year. A growing portion of the investment portfolio will not be needed for fifteen years.

Time segmentation is completely different from the traditional approach of systematically withdrawing assets. The traditional approach to allocating funds determines what percentage of funds should be in cash, bonds and shares. The basis of this approach is the annual volatility that you are ready to face. Then configure what is referred to as a systematic withdrawal plan to sell enough assets for each asset class each year (or each month) to meet your retirement needs. With a time approach, the annual variation is not relevant to your goals.

Why do people demonize loans?

If you’ve ever been interested in the subject of loans, then you certainly know the controversial opinions about the non-banking sector. Myths about loans are as common as believing that a black cat crossing the road causes misery. But do we really have anything to fear?

Where do the myths about loans come from?

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Common opinions about loan companies are nothing but stereotypes well known to all. Simplified, often repeated opinions, which are not sufficiently substantiated. A stereotype works like a rumor – it spreads quickly and feeds with unreliable information.

It often grows in strength due to scandals appearing in the media. Myths about loans arise in the same way. And despite the fact that stereotypes tend to be both positive and negative – usually the worse ones have more power. After all, it is known for a long time that negative information enjoys tremendous breakthrough power.

So where exactly do the myths about loans come from?

So where exactly do the myths about loans come from?

They often result from three reasons that constantly appear on our blog. These reasons include:

  1. Insufficient verification of the potential lender – each of us is sometimes in a sub-gate situation. Driven by stress and difficult emotions, clients of loan companies do not always check who they borrow money from sufficient distance. Often becoming victims of not entirely reliable companies.
  2. Insufficient familiarization with documents and terms of the contract – The documents and contracts that we sign with loan companies are always extensive, and not always understandable. ALWAYS, but you ALWAYS READ THE DOCUMENTATION FROM BOARD TO BOARD, to protect yourself from the additional costs and spiral of debts. If you do not understand the provisions given in the contract – ask. The loan company is obliged to provide you with explanations about any doubts.
  3. Lack of knowledge about the specifics of the product – A loan is not a loan. It is also not an installment loan. Lack of knowledge about the specifics of these products can seriously damage our pocket. So before you take out a consumer loan – learn more about the rights and obligations of both loan companies and borrowers. We also recommend that you familiarize yourself with the basic information about the Anti-usury Act.

Especially the second point is problematic

Statistics are ruthless, as many as 80 percent of respondents accept the regulations without first reading them. Such nonchalance is a major cause of contractual problems.

Is it worth taking a loan despite the widespread opinion?

With common sense, everything is for people. Loans also often prove to be beneficial. The loan can serve as a support through a given purpose, and not as a temporary source of cash “for nothing”. Keep this detail in mind if you want to avoid problems.

If you need cash “already” and are considering taking out a loan – read more about the benefits of installment loans.