5 Areas Where Interest Rates Matter!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!

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The Best Way to Blog Incognito

Writing is thought. Writing is talent. And your thoughts need to sprint consistently in your mind about any concept which makes you feel good. But is this talent coming from your schooling or from your friends? Any fresh thought penned will be a hit for sure. Now think the same over internet. People term them as blogging and you write about your favorites then it will come in line with your thoughts and become your passion. But what are we going to give to our readers? Is that a chance to read? Is that Money? Changing their thoughts? Making them understand that you write really well?

Blogs written with passion will make you thriving with all the above questions I have listed. Let’s dig what is this passion all about; let’s imagine you pick up photography as your interest, hobby, or even your job. Now you would like to exchange all your thoughts into a piece of paper which is a blog in our context. The more you love your job, the more intense the words will be.

In fact, Today’s world many people blog only for money. But when we look back 10 to 20 years back we didn’t have such concept. People were passionate about writing in newspapers. Our older generations thought they wanted to give true and live information to readers. Now the whole blogging industry came up and changed the whole world. It’s a business now. So just earning money is the only foremost reason for many people. I would suggest you to think about your observation on any topic. Think, is that can help a set of people who want to know something from that topic. Give them the relevant information needed, after they read your post, they should think for a second and they should get impress.

Movies are the best examples as of today. Think about different movies which make our regular thoughts pause for a second once we come out of theatres. Reason is very simple. Their method of playing the movie is so much conceptual, the story will take lots of credits, the sequence of the scenes and work implicated behind the scenes will be fabulous.

Blogging will be exactly same. Your posts should make the readers experience that this is something unique and praiseworthy to read. They will definitely come back again just by your blog name. Always remember a thumb rule “Content is King”. Once you have fantastic thought penned, then traffic, money, sponsors will be following you. Instead of thinking how to drive traffic or how to make money through advertisements, Please think whether you have quality information to share with others. If you are confident enough then open word document and start typing as I did now.

Next vital item is every blogger must remember is consistency. Keep posting new topics on a particular category to target a particular community rather than diversifying across categories. When you post at least two topics a day on same category then chances are much that your blog become famous and at the same time you also get information from others. So keep writing wonderful topics and enjoy from that.

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