The oversight of the millions of cryptocurrency transactions have blinded the way trading was done a decade ago, there are more than one thousand crypto coins, and there are trading platforms at every click in the search engines globally. There are excessively many people who have benefitted from the cryptocurrencytrading; there are claims of overnight millionaires. These people all have cashed in the moment of trades and have silently exited from the entire gamut. while we are still trying to understand and implement taxation for the crypto transactions, people made hay and made a killing profit when the sun was shining and the IRS was still musing to implement laws that are complex for such crypto transactions.
Various countries have come up with their own combination of implementing a tax to curb and regulate the way the online trading is happening at an astronomical pace, software like Bitcoin Code have made different types of trade, manually, automated, robotic, and given huge payouts from the simple strategy used by the trader. In Canada and Germany, the laws placed for cryptocurrency transactions are taxed as an asset. In Japan and Korean countries, there are defined laws and proper streamlining of transactions that come up as genuine and well-traded crypto exchanges. Cryptocurrencies are treated as assets and any failure to pay tax on the sale proceeds will attract a high penalty.
- The obligation of the owner of the coins is irrespective of whether he purchased them in the open market or received or transferred from others as a reward, remuneration or compensation
- swapping crypto coins again attracts tax, as they are converted from one currency to the other, keeping in mind the profit realized from such transaction or, converting them to the USD including the profits earned in the coin currency if they have traded and made profits
- investments for a longer period of time triggers the long term capital gain, while the short holdings of crypto loans, funds in coin currency attracts short term capital gain, the tax slabs for long term capital gain is less compared to the short term gain
- Using the coin currency to be placed as collaterals, and go for loans is beneficial when compared to the cash loans, as there is a scope of advantage to cover the capital expenses and expand their business operation without liquidating any further assets.
Debts make the individual live in a stressful environment in which it makes him lead a life facing difficulties in repaying the loans and debts promptly in life. Debts can be raised by many ways in which it includes availing bank loans, paying your monthly installments, availing the cash for interest in any of the private financial sector etc. It is easy to raise funds when there is a need, but repaying them will take some long years to get rid out of it since you need to repay the amount with interest which adds a little burden on your shoulder.
In order to reduce your financial burden, you need to plan for the right kind of financial investment in any of the financial securities which will yield a good profit within a shorter span of time. This can be achieved by the cryptocurrencies, where you need to invest your money on the online trading platforms like ethereum code, lite coin etc. to yield more return but the risk involved in these markets are literally very high, and it is essential to consider the risk factor before making an investment. To gain thorough knowledge about these markets, visit the website where you can get a better explanation about the terms and concepts.
Follow the simple steps to manage your debts;
- Try to frame a budget for your family in which you need to calculate all your income and expenses of the family making provision to meet all your needs and demands.
- Take a part of the money to save in any of the financial securities which will help your money to grow gradually. The savings are the best part to be considered in financial management in which the savings helps the individual to have a safe and secure life for the future and also helps to establish financial security for their children too.
- Calculate the expenses of a month including your debts. It is necessary to clear all your debts slowly by proper planning. Most of the expenses of a household include rent, electricity charges, mobile recharge, children education, food etc. It is necessary to make provision in the family budget to meet all the demands without missing any of these.
- If it is possible to pay the minimum balance for your debts, try to pay it immediately or on time so that you can avoid any of the penalties for the late payment. Few people will try to avoid these penalties by prompt payment of their debts. If you pay your debts on time, you can also avail the future loans easily from the banks.
- Try to manage your expenses and as well as your desires. Needs and desires are different aspects in which you are required to meet all your basic needs compulsorily but the desires can be met when you have extra cash on hand. Try to identify your needs and desires and spend accordingly.
If there were beans that sprouted into a money tree, then would you back away from getting a few of these? Of course not! However, sadly, that is not the case. Therefore, it is up to us to earn money the hard way and more importantly manage what we earn the right way for continued prosperous living.
What is Money Management?
Money management may be defined as a person’s ability to handle all of his/her financial aspects. For example, the simple act of creating a monthly budget to calculate how much you spend on things falls under money management. Another scenario of money management can be seen when individuals try to manage their paychecks in settling their short-term or long-term goals or planning for an investment option.
In other words, money management will help your curb your unwanted expenses and help you to decide where to spend your hard-earned savings so that you can see your money multiply both in terms of monetary value and emotional value. Therefore, it does not matter how much money you have, it all boils down to the fact on how good your money management skills are.
Money Management Skills Needed
As discussed, it does not matter if we earn a hundred dollars or a few thousand dollars. What really matters is what you intend to do with the money earned. For this, you will need to rely on your money management skills. Some of the skills that you will need to develop in order to manage your finances efficiently include:
- Your potential to identify where you currently stand
- Your ability to set goals
- Your will to accomplish your goals
- Your vision in life
- Your judgment on whether you are a conscious buyer or consumer
- Your ability to prioritize and balance your needs against your wants
- Your skill to create budgets and adjust them from time to time
- Your ability to manage more than one account
- Your involvement with the family members and their role in managing your money
- Your expertise as a brilliant investor, for instance, your take on investing in auto-trading robots such as BTC Profit
These are some of the very important skills that you will need as an individual to develop in order to manage your finances the right way. However, what is the most important thing is your commitment to everything that you do without which you are bound to fail miserably in matters related to money.