The Rise and Fall

By Margaret.

The word ‘bargain’ always brings up images of small savings you can make on things like groceries, fashion clothing, music and sometimes the occasional big-ticket item like a TV or computer. We can be running around shopping at different places saving a quid here and 50p there. Don’t get me wrong, that adds up and if you save £10 – £15 a week that makes a very impressive total of £500 – £700 a year. Not to be sneezed at.

Some other areas where you can go bargain hunting are insurances, finance, gambling and naturally, mortgages. There are really significant savings for an astute shopper in those bigger, or shall we say more complicated areas. Home insurance covers you for burglary and flooding and fires, and while there is a lot of that happening, not all insurance companies charge you an arm and a leg to cover those events. For those that offer a cheaper rate, they are actually taking a gamble on that ever happening.

It’s the same with mortgages. Banks look at your credit history and your repayment records and can offer a lower mortgage rate because you’re a good payer. We might be talking just 0.25% or maybe 0.5% but that’s a lot of money over 25 years. It’s all about risk. The greater the risk, the higher the cost, and vice versa.

Take a look at investments. Investment companies and financial advisers tell you the same thing. If you want to earn a lot of money on your investments, then take a bigger risk. But, don’t put all your eggs in the one basket. If something bad happens, like a global financial disaster, you lose the lot. So the idea of investment companies is to spread your hard-earned over a range of products. Some will grow more quickly than others. The higher risk products will sometimes go down considerably before making a recovery. Conversely, high-risk products can skyrocket to help you make a quick killing.

The share market is a wondrous beast and there are ways to play the market like a smart guy or gal if you have the knowledge. I don’t mean knowledge of each individual public company listed, I mean the methods that are available to have a bit of fun, get excited, but not leave yourself open to bankruptcy. There is a system out there that actually bets on the stock market. You can even bet on it going down. If you want to know more about it, then you should check out spread betting guide and tips that you will find online.

The excitement of watching your shares rise and fall is a bit like playing Bingo and hanging in for that ‘two fat ladies’ 88 being called to complete your line. Spread betting is not for the faint-hearted and the almost broke. Like any gambling, if you can’t afford it, DON’T DO IT! It’s not hard to understand. It’s not rocket science. But it is a very, very interesting a concept.

Feb 22, 2016