Check Your Financial Literacy: 10 Questions to ask yourself

Financial Literacy: Due to ignorance of the financial economy and money, people are often unable to secure a decent life even with a good salary. In addition, other people often take advantage of our financial illiteracy, which leads to sad consequences. It is for these two reasons that it is worth studying the basics of financial literacy.

The ability to earn a lot does not mean a comfortable life. If a person earns money only with the help of certain skills, then it is not enough. The ability to manage earned money requires completely new skills and knowledge, and this is what can lead you to financial independence.

We are not taught how to manage our money either at school or at university, this is a big omission because we are faced with financial issues several times a day and sometimes we need such help as auto repair loans or rent loans, but we don’t know how to use this financial help correctly.

Moreover, if you ask any person what, in his understanding, is a financially wealthy person, he will most likely answer: “the one who has a house and a car.”

The following information will be very useful if you decide to change your life and manage your money wisely.

Ten questions to ask yourself to check your financial literacy:

#1 Does My Budget Equal Salary?

In fact, the budget is a more general concept.

A personal budget consists of income and expenses for a certain period of time. Income includes basic salary, additional earnings, cash gifts, bonuses, money from renting an apartment, interest on a bank deposit, stock dividends, bond coupons, etc. In other words, any financial income.

Expenses include food, utilities, transportation, loan payments, clothes, entertainment, etc.

#2 What to Do If Expenses Exceed Income?

If expenses prevail over income and you have to borrow money before payday, your budget is called a deficit. In this case, it is better to take a fresh look at your spending.

It’s helpful to write down your expenses for the month, and then divide your expenses into two categories:

Necessary is something that cannot be abandoned. For example, utility bills.
Desires are things you can live without. For example, ordering a pizza.

Also, you need to make expenses from the second category less. As soon as income begins to exceed expenses, you can begin to save.

#3 What Is a Financial Airbag?

This is the amount that can help you in a difficult situation. For example, if your fridge is broken or you lost your job. It is recommended to have at least 3 monthly incomes “in the stash”.

The easiest way to form an airbag is to immediately set aside at least 10% of all incoming income. The main thing is not to forget and do it systematically.

But for a vacation, a child’s school fees, or a gift, it is better to save separately. The airbag is only needed in the event of an emergency.

#4 Where Is the Best Place to Keep Savings?

This money can be kept at home, deposited in a bank, kept in a brokerage account. The main rule is that your finances can be easily and quickly removed if necessary.

The perfect option is a bank deposit with the possibility of partial withdrawal and early closure. Interest will be charged on the money, which will allow you to receive an amount more than when stored on a bedside table. It is even better if it is a deposit with capitalization.

#5 In What Cases Can I Take a Loan?

Any sane person will say that it is better not to take loans at all. But often this is the only way to maintain or improve the standard of living. For example, when there was a replenishment in the family and the four of them in a two-room flat became crowded. The family does not have money for a more spacious apartment, the only option is a mortgage.

An apartment, a house, or a land plot can be classified as an asset. This is something that a person can sell if something happens, and it, most likely, will not lose value. You can take loans for these purposes in the absence of other options.

#6 For What Purposes You Shouldn’t Take a Loan?

Loans for liabilities. Liabilities include a vacation, a wedding, a new smartphone, etc. It is better to refrain from loans for these purposes.

The vacation ends quickly, but the obligations will remain. Interest rates will hurt your family budget for several months. This does not mean that a vacation or a wedding celebration should be abandoned. It is just recommended to save for these purposes in advance.

#7 What Is a Credit History?

This is information about how many loans a person has and how conscientiously he returns the money. Many banks, have one credit history.

A person who has been late on payments will have a lower credit score. A person who has never taken loans in his life will not be able to boast of good credit history. Banks have not worked with such a client and do not know what to expect from him, therefore they include certain risks in their profile.

#8 Why Do You Need to Check Your Credit History?

Even if you do not plan to take a loan, it is recommended to check your credit history at least once a year, and preferably more often. The fact is that other people’s debts can be recorded on an unsuspecting person. There can be many reasons for this, for example:

the actions of fraudsters who issued a loan for someone else’s passport through a friend at the bank;
no luck with the namesake who does not pay the bills. By mistake, it can be confused with you.

If you suddenly find discrepancies in your credit history, immediately contact the bank. If there is no feedback, then – to law enforcement agencies.

#9 What to Do If You Have a Bad Credit History?

You cannot remove anything from your credit history. But if you want to continue lending, it can be improved. Take very small loans and pay them off very carefully. Get a credit card or buy household appliances on credit.

So in a couple of years, you will create a good history of relationships with creditors. Do not forget to pay bills for housing and communal services on time. Most likely, after such “improving procedures,” you will again be considered a reliable client.

#10 What Types of Investments Are There and How Much Should I Invest?

What is the difference between shares, bonds, and mutual funds?

When you buy a share, you become a shareholder of the company, essentially its co-owner. When you buy a bond, you turn into a creditor – you lend money to a company or the state, expecting to receive a fixed profit later. The amount of payments is usually known at the time of purchase of bonds, so they are considered a less risky investment. But their returns are lower than those of stocks. They are similar because when you buy them, you hope for the success of the one who issued the shares or bonds since your profit depends on them.
The third way is to invest in a mutual fund. Such a fund is a portfolio of different investments in which you can buy a share. In this case, your income does not depend on the success or failure of one particular company, and specialists deal with investments.
Everyone has different financial goals and a different starting situation, so there is no single answer. It is generally advised to save or invest 20% of your annual income. If this is too much for you, start with a small amount. You will practice choosing assets, master the basic tools. And as your income increases, it will be easier for you to invest more money.

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News

Trudeau’s Gun Grab Could Cost Taxpayers a Whopping $7 Billion

Trudeau plans to purchase 2,063 firearm from legal gun owners in Canada - Rebel News Image

A recent report indicates that since Trudeau’s announcement of his gun buyback program four years ago, almost none of the banned firearms have been surrendered.

The federal government plans to purchase 2,063 firearm models from retailers following the enactment of Bill C-21, which amends various Acts and introduces certain consequential changes related to firearms. It was granted royal assent on December 15 of last year.

This ban immediately criminalized the actions of federally-licensed firearms owners regarding the purchase, sale, transportation, importation, exportation, or use of hundreds of thousands of rifles and shotguns that were previously legal.

The gun ban focused on what it termed ‘assault-style weapons,’ which are, in reality, traditional semi-automatic rifles and shotguns that have enjoyed popularity among hunters and sport shooters for over a century.

In May 2020, the federal government enacted an Order-in-Council that prohibited 1,500 types of “assault-style” firearms and outlined specific components of the newly banned firearms. Property owners must adhere to the law by October 2023.

Trudeau’s Buyback Hasn’t Happened

“In the announcement regarding the ban, the prime minister stated that the government would seize the prohibited firearms, assuring that their lawful owners would be ‘grandfathered’ or compensated fairly.” “That hasn’t happened,” criminologist Gary Mauser told Rebel News.

Mauser projected expenses ranging from $2.6 billion to $6.7 billion. The figure reflects the compensation costs amounting to $756 million, as outlined by the Parliamentary Budget Office (PBO).

“The projected expenses for gathering the illegal firearms are estimated to range from $1.6 billion to $7 billion.” “This range estimate increases to between $2.647 billion and $7 billion when compensation costs to owners are factored in,” Mauser stated.

Figures requested by Conservative MP Shannon Stubbs concerning firearms prohibited due to the May 1, 2020 Order In Council reveal that $72 million has been allocated to the firearm “buyback” program, yet not a single firearm has been confiscated to date.

In a recent revelation, Public Safety Canada disclosed that the federal government allocated a staggering $41,094,556, as prompted by an order paper question from Conservative Senator Don Plett last September, yet yielded no tangible outcomes.

An internal memo from late 2019 revealed that the Liberals projected their politically motivated harassment would incur a cost of $1.8 billion.

Enforcement efforts Questioned

By December 2023, estimates from TheGunBlog.ca indicate that the Liberals and RCMP had incurred or were responsible for approximately $30 million in personnel expenses related to the enforcement efforts. The union representing the police service previously stated that the effort to confiscate firearms is a “misdirected effort” aimed at ensuring public safety.

“This action diverts crucial personnel, resources, and funding from tackling the more pressing and escalating issue of criminal use of illegal firearms,” stated the National Police Federation (NPF).

The Canadian Sporting Arms & Ammunition Association (CSAAA), representing firearms retailers, has stated it will have “zero involvement” in the confiscation of these firearms. Even Canada Post held back from providing assistance due to safety concerns.

The consultant previously assessed that retailers are sitting on almost $1 billion worth of inventory that cannot be sold or returned to suppliers because of the Order-In-Council.

“Despite the ongoing confusion surrounding the ban, after four years, we ought to be able to address one crucial question.” Has the prohibition enhanced safety for Canadians? Mauser asks.

Illegally Obtained Firearms are the Problem

Statistics Canada reports a 10% increase in firearm-related violent crime between 2020 and 2022, rising from 12,614 incidents to 13,937 incidents. In that timeframe, the incidence of firearm-related violent crime increased from 33.7 incidents per 100,000 population in 2021 to 36.7 incidents the subsequent year.

“This marks the highest rate documented since the collection of comparable data began in 2009,” the criminologist explains.

Supplementary DataData indicates that firearm homicides have risen since 2020. “The issue lies not with lawfully-held firearms,” Mauser stated.

Firearms that have been banned under the Order-in-Council continue to be securely stored in the safes of their lawful owners. The individuals underwent a thorough vetting process by the RCMP and are subject to nightly monitoring to ensure there are no infractions that could pose a risk to public safety.

“The firearms involved in homicides were seldom legally owned weapons wielded by their rightful owners,” Mauser continues. The number of offenses linked to organized crime has surged from 4,810 in 2016 to a staggering 13,056 in 2020.

“If those in power … aim to diminish crime and enhance public safety, they ought to implement strategies that effectively focus on offenders and utilize our limited tax resources judiciously to reach these objectives,” he stated.

Millennials in Canada Have Turned their Backs on Justin Trudeau

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World

Russian Arms Dealer Viktor Bout Back in Business After Biden Prisoner Exchange

Viktor Bout, a notorious Russian arms dealer, arriving at court in Bangkok in 2010 - CTN Image

Viktor Bout, the infamous Russian arms dealer who was exchanged two years ago for Brittney Griner by President Biden, has reportedly returned to arms trading, as detailed in a report by the Wall Street Journal.

The Wall Street Journal has revealed that Vikto Bout, infamously dubbed the “merchant of death,” is seeking to facilitate the sale of small arms to the Houthis. A report indicates that Houthi representatives met with Bout in Moscow in August to discuss the acquisition of $10 million in automatic weapons.

Nonetheless, the anticipated arms deal remains unfulfilled, as indicated by the report.

Reports indicate that the weapons being discussed do not encompass larger systems such as anti-ship or anti-air missiles, which could represent a considerable risk to U.S. military operations in the area.

Requests for comment from the WSJ regarding Bout’s alleged involvement in the arms trade went unanswered by the Kremlin and Russia’s Ministry of Defense. Steve Zissou, an attorney who provided legal representation for Bout during his time in U.S. custody, refrained from commenting on the possibility of Bout’s meetings with the Houthis.

Viktor Bout, the notorious Russian arms dealer was exchanged for Brittney Griner – CNN Image

Viktor Bout released in 2022

Bout, who became affiliated with Russia’s Kremlin-loyal Liberal Democratic Party following his release in a prisoner swap in December 2022, has kept a low profile since his return.

Bout was taken into custody in Thailand in 2008 and subsequently extradited to the United States, where he faced conviction in 2012 on charges associated with arms trafficking, resulting in a 25-year prison sentence.

For almost twenty years, Bout stood out as one of the globe’s most notorious arms dealers, providing weaponry to unrecognized governments and insurgent factions throughout Africa, Asia, and South America. The activities he conducted served as the basis for the 2005 film Lord of War.

Even after his conviction and imprisonment, reports indicate that Bout’s network persisted in its operations, contributing to conflicts in some of the globe’s most perilous areas.

Former US Marine Paul Whelan Released From Russian Prison

Former US Marine Paul Whelan Released From Russian Prison

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC