Friday, January 26, 2018

All You need to Know About Borrowing Money from Family

Borrowing money from family and friends can be a perfect solution, but be sure to look at the pros and cons of this approach. Before you join the bandwagon, review first this short list of its advantages and disadvantages.

The Pros
  • Flexible Terms: Unlike other forms of traditional finance, funding from family and friends is typically offered on flexible terms. Friends and family may agree to a longer repayment period and may seek a lower rate of return than traditional lenders. On a practical level, little or no security is required and the repayment can be tailored to your financial projections.
  • Minimal charges: One of the greatest advantages of borrowing money from friends and family is that the funds are offered at little or no interest. As a start-up or loss-making company, the interest rate charged by traditional lenders can be very high.
  • Easy to set-up: On a personal level, the family member or friend already knows your ethos and business circumstance and so are less likely to demand a detailed business plan.
The Cons
  • Family feuds and friendship squabbles: One potential downside of borrowing from friends and family is that slow or non-payment can fracture relationships on a personal level. Losing the friendship and support of loved ones should mean much more to you than the initial sum borrowed in the first place.
  • Who’s in control? There is a real risk when borrowing from family members; the individuals may feel that they are now part-owners of the company, with a right to make business decisions. You can avoid this by stating in the loan terms that you will be in charge of the day-to-day operations of the business.
  • Less stability: Family and friends can sometimes demand quicker repayment prior to the arranged terms (due to personal financial issues), whereas bank and other independent lenders have more stability.

Friday, December 11, 2015

How to Free Yourself from the 'I'm Poor' Mentality

Financial fears prevent you from taking financial risks, accepting new opportunities and making monetary decisions. They interfere with your financial security and freedom and hold you back from achieving financial success throughout your life.

Start Saving Early - You might have to live paycheck-to-paycheck when you start your career. However, you can start saving a small amount of money every month and put it in your savings account.

Come out from the Fear of Debt - While it may seem impossible to resolve all your debts, you can grow a large savings to cover your unexpected expenses and put down more cash while borrowing.

Look for Affordable Housing Options - Go for smaller and affordable housing options so that you have enough funds to cover other expenses. Grow a savings and diversify your investment to afford a house.

Build an Emergency Fund - You can overcome your fear of losing your job by building an emergency fund. You should save 6-8 months of earnings in your emergency fund. You should also keep sufficient funds in your regular checking account.

Protect Your Identity - You should take certain preventive measures to protect your identity. You should not carry your social security card in your pocket. You can opt for debit or credit cards which have secure payment options.

Save for Retirement - You can go for company’s retirement and pension plans as soon as you enter the employment. You can save a few hundred dollars every month which will give you more value in the future.

 Know Your Investment Options - Don’t put all your money into the stock market. You should be aware of all the low and high risk investment options. You should go for an investment option with which you are most comfort.

Friday, December 4, 2015

Best Ways to Save Money from Scratch

There are thousands of people all over the world who find it tough to save cash for a rainy day.You can save money from scratch. All you need is a few simple ideas. It will not be easy, especially in the beginning, but once you see it through with patience, you will benefit from it greatly. 

Keep a record: A smart way to save cash is to keep a record of your monthly expenditure. This way, you can make sure that you do not spend more than the last month. 

Use coupons: Using coupons when you go shopping for groceries and other household items can save you a significant amount of money.

Buy necessities in bulk: Everyday essentials like toilet paper, detergents, trash bags, etc. are best bought in bulk to help you save money.

Use coupons: Using coupons when you go shopping for groceries and other household items can save you a significant amount of money.

Create homemade gifts: Greeting cards and gifts cost a lot these days. One way to save cash is to make your own gifts for any occasion. This way, you spend less and also make a personal gift that means much more than store-bought gifts.
Entertain at home: Instead of going out with friends for a movie or dinner, stay home and prepare food and entertain your friends at home. You save a lot of cash this way!

Be frugal with kids: Kids’ stuff is expensive nowadays so you should cut down on entertaining your kids outside. Spend time with your kids at home and play games, read books, etc. together.

Repair clothes: Do not throw away old clothes that can still be mended. You can always wear them when you need to do chores around the house.

Cut down on fast food: Instead of spending money on pizzas, burgers, etc. cook at home and have a healthier meal and save money at the same time.

Give up alcohol and cigarettes: Smoking and drinking alcohol is a waste of good money. You would be surprised to know just how much money you spend on these habits every month. Do a quick calculation and you will see why it is best to quit these vices.

Save energy: Simple things like turning off lights that you do not need and switching off the AC if it is not that hot can help you save a large sum of money on energy bills. Plus, you help the environment by saving energy.

Thursday, November 26, 2015

Quick Ways to Save on Your Cellphone Bill

Owning a cellphone these days is already a necessity. Most tasks at work and even at school already requires smartphones with a data plan. These allow you to take pictures, surf the web and send emails to communicate effectively and quickly with the people you need to reach.

Believe it or not, most smartphone owners are unable to use their data plan wisely. As a result, they endure paying overcharges in their cellphone bills for months or even years. Are you caught in the same problem? Read these tips that can help you break free.

Don't sign long term contracts. Long-term contracts will force you to pay your service provider a lot of money monthly. You will be surprised that you're not actually using or making the most out of the services included in your package. Consider a month to month plan which is offered at lower rates. You can even customize a month to month plan to suit your monthly data usage.

Log on to WiFi. Most data service providers charge extra for online video streaming, app download, file upload, etc. Log on to your WiFi at home if you need to such things. This will keep you from paying unwanted extra charges.

Turn off roaming in your smartphone settings. Are you leaving the country anytime soon? Before you do so, turn off roaming in your smartphone. Smartphones are just some times too smart to connect automatically to other phones in a foreign land without you knowing about it.

Tuesday, October 27, 2015

How Living in a Tiny House Can Ease Your Financial Burden

Building and living a tiny house is the craze in many places these days. I personally enjoy watching both cable and TV programs that showcase the creation of these masterpieces from scratch. Apart from always being in awe of the finish products, i have come to a realization why living in a tiny house is practical and helpful to those who are opting to save a lot of money. Here are a few of my thoughts.

Building a tiny house is cost efficient. You don't have to hire an engineer, an architect, an interior designer and a group of construction workers to build it. If you have time and skills, you can build it on your ow. This already means a lot of money saved on labor costs. You will just have to spend on the materials. As for the design, there are free floor plans available online.

You can travel in it. Some tiny houses are built in such a way that they can be easily pulled by a mini truck. If you can travel to any location in your house, you don't have to worrying about hiring and paying someone else to guard your house while you're on a vacation.  For added comfort and usability, you can even equip your tiny house rainwater collection equipment and solar panels. Consequently, you're able to save on electricity and water.

Living in it teaches you to spend your money wisely. You cannot stuff a lot of things in a tiny house. It can only hold the basic things you need for survival and a few more for your entertainment and hobbies. Living in it will train you to think twice before you buy anything with your extra money.

Monday, September 28, 2015

Quick Tips on How You Can Save as a Couple

Money woes are a common cause of divorce or disconnection among couples. It is quite hard to stay in love when the basic needs of the whole family are not met due to poor financial management. Don't fret if you feel like your marriage is about to fail because of the latter. There's still hope to saving your marriage and  your financial breakdown. Follow these tips.

Strengthen your connection by doing some money talk. Financial or money talks are done right before couples tie the knot - ideally. But most couple put these aside because they're so much in love and they perceive that love can keep them alive. If you haven't done any money talks, it's not yet too late to start today. Sit down together. Talk about your debts (if there's any) and plan how you can get rid of them together. Even though you've been married for some time now, you will still have individual styles in budgeting and saving. Talk it all out and agree on a definite financial plan.

Reassess and realign your financial goals. As you both work through the years, pay increases will happen. You might be able to get out of debt faster than you thought. Check your financial goals and reevaluate your strategies in saving. Can you afford to increase the amount of money you wish to save? Do you have enough money to cover emergency situations? Keep in mind that your finances as a couple is a work in progress. That means there will always be rooms for improvement.

Give financial autonomy a try. To some couples, keeping their money all in a joint account doesn't work. If you experience the same, don't force yourselves to it. Keep an individual savings account and see if you can agree to have a joint bank out where you must deposit a part of your individual income.

Saturday, August 29, 2015

Manage Your Taxes with These Tips

Do you want to properly manage your personal finances? If yes, start with managing your taxes. Whether you just have a nine-to-five job or a business to run, it is a must that you learn this.

There are other classifications of taxes besides the one that delves about your income. They are local, state or federal. All four of them are extracted from wages, investments, inheritance and estate, gifts and entitlements. Study the receipts that you have at hand and identify your deductibles. If you are having a hard time labeling each of them, go online and see related websites that hold helpful information.

File everything systematically - Competent tax planning strategies rely on systematic records. And so, it is important to file all needed documents in a way that is not confusing. Arrange your deduction notices according to dates you have received them. This could be from oldest to latest or vice versa. Moreover, keep them in separate folder with respective labels like, income, real estate, health and donations among others.

Prepare your math skills - You need to compute everything correctly before you could file your taxes. Instantly search for the formulas that you need online. In fact, there are many websites that hold helpful examples on how to do proper tax computations and interpretations. Again, if you can’t figure these on your own, let a consultant help you.

File your taxes personally - This is not only for economic reasons but also for the advantage of having control over everything. You get to know where your money exactly goes to and comes from. However, it is one of the tax planning tips that is difficult to accomplish. In here, you might need a reliable software that can walk you through the whole process. You might get confused at first, but with enough practice you will be an expert on it.

Keep documents - If you are to make a computation for a specific financial year, make sure that you have documented all receipts and purchases that you made with in that year. Have them in one file with different categories. Include your anticipated income for that year as well. Observing this will make computation of tax returns easier for you.

Make revisions and record them - Whether or not it is your first time to do these, make it a practice to review all the papers you did. Correct the mistakes right away before going ahead to submit your file to avoid resubmissions. After receiving your money, record it as income gained for that year. Then. start recording all the information you’ll need for the coming financial year.