How to prevent your domestic helper from taking loans from loan sharks?

You may very well have read about employers getting hounded by money lenders because their domestic assistants utilized the residential address for borrowing funds and are unable to pay off its debts. This is because the domestic workers used the employer’s residence as the collateral for the loans. You can find companies that are good at domestic helper loan Singapore here. But why are so many domestic workers in debt, and what steps can you take to ensure that your helper does not fall into this financial trap?

Address the matter.

You and your domestic helper will both be in a better position to handle any potential financial problems if you are able to talk about them. If she is accountable for an outstanding loan, you will be able to assist her in the event that a problem arises and prevent additional complications for your family in the process.Maintaining an open line of communication between the employer and the domestic worker is essential to maintaining a healthy relationship between the two parties.

Employ the services of a recruitment firm with a good reputation.

When you are in the process of recruiting a new domestic assistant, you should inquire with the potential employee about the amount of money that she will be expected to pay for recruitment fees. Do not utilize the services of a recruitment agency that levies unauthorized recruitment fees to the individuals they place in jobs.

Provide your assistant with information regarding the potential downsides of obtaining loans.

Inform her of the potential dangers she faces; for instance, talk to her about the dangers of falling victim to internet scams; encourage her to do some research before agreeing to anything; and let her know that you are always available to double check the company’s identification with her.

Your helper will appreciate it if you assist them in opening a bank account.

It is in both of your best interests to get your domestic helper to open a bank account for their own money. She will have an easier time managing her finances as a result, and you will have an easier time keeping track of the payments she receives for her paycheck.

Classes in financial management should be taken by your helper, so be sure to register her.

You need to urge the person who helps you to save money and work out a plan with her to figure out how much she can put away each month after deducting her regular bills and other expenses.

Passive Management

What is ‘Passive Management’

Passive management is a style of management related to shared and exchange-traded funds (ETF) where a fund’s portfolio mirrors a market index. Passive management is the opposite of active management in which a fund’s manager(s) attempt to beat the market with numerous investing techniques and buying/selling decisions of a portfolio’s securities. Passive management is also referred to as “passive strategy,” “passive investing” or” index investing.”

BREAKING DOWN ‘Passive Management’

Fans of passive management think in the effective market hypothesis. It specifies that at all times markets integrate and show all details, rendering individual stock picking useless. As a result, the finest investing technique is to buy index funds, which have actually historically outshined most of actively handled funds.

The Research Study Behind Passive Management

In the 1960s, University of Chicago teacher of economics, Eugene Fama, carried out comprehensive research on stock price patterns, which led to his development of the Efficient Market Hypothesis (EMH). The EMH preserves that market costs totally reflect all readily available info and expectations, so existing stock prices are the very best approximation of a company’s intrinsic worth. Attempts to methodically determine and make use of stocks that are mispriced on the basis of details typically stop working because stock rate movements are largely random and are mainly driven by unforeseen events. Although mispricing can occur, there is no predictable pattern for their occurrence that results in consistent outperformance. The effective markets hypothesis implies that no active financier will regularly beat the market over extended periods of time, except by possibility, which implies active management methods using stock selection and market timing can not regularly add worth enough to outshine passive management techniques.

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