Nowadays, it is considered to be a complete misconception that there is a requirement of a financial management software if a business is owned or if there are multiple sources of income to be tracked on. This is because anyone earning money and spending them is bound to benefit from having free personal finance management software to depend on for their personal accounting needs.
The notion of whatever is considered free is most likely below par, is regarded to be another misconception. This is because in the case of free personal finance management software, open-source or freeware solutions exist which are usually web-based, that work as competently and instinctively like the other financial management software. Here, one needs to think how to choose and which one to choose for application to the requirements. It is important to seek top tips from most of the IT experts, who elucidate that it pays to read every software reviews every time, including those performing financial management tasks. These tips in the form of reviews frequently appear on the desktops and IT magazines, as well as on technological websites.
The functionalities and features of this software also have to be compared. If it is required to choose between a complex suite of financial management software and the vital one mechanizing the most common processes, the best option is to choose the basic one, especially if one is going for using the software for tracking speculation assortment. But in every case, a software will be required that is able to support such types of compound connections. Comparisons are also required for planning budget-making modules of the obtainable software, along-with their capacity of tracking tax-related monetary issues.
Doing billing, payroll and invoicing would be added advantages for the free personal finance management software. With the free personal finance management software, one can access financial health score. The software also detects financial position according to the information provided, and discloses the financial position of the individual. The free personal finance management software is programmed to provide scores in the financial areas and also provides necessary advice for amendments. The free personal finance management software provides relevant advices for all personal finances that are considered to be exceptional and matter-of-fact.
For more info: http://www. debteye.com
Article Source: http://www.articlesbase.com/debt-consolidation-articles/free-personal-finance-management-software-being-thrived-on-4613600.html
Saturday, April 16, 2011
You Are About to Fire Your Financial Advisor!
The number one fear of the public used to be public speaking but that fear has been replaced. The new fear has become out living ones money in retirement. This fear was more realized after 2008, when the old strategy of buy and hold and diversification was thrown out the window when people saw their portfolios drop by thirty to fifty percent in just a few months. For example if you had saved up five hundred thousand dollars you could of seen your portfolio drop to three hundred and twenty-five thousand or worse two hundred and fifty thousand in less than one year. The problem is that most people still have their money in the same types of investments that lost them all of their money just a few years ago. Most people think the financial storm has passed but that's just not true. Have you seen oil prices lately or been to the grocery store to buy a gallon of milk or ice cream. Food prices have shot up thirty to sixty percent depending on the department. One of the reasons stated that Egypt was in such turmoil was the drastic rise in food prices that seemed to happen overnight along with high unemployment. If you do any research on why food prices shot up drastically in the Middle East you will find that the cause of high food prices leads back to the mortgage collapse in two thousand eight. The Band Aid solution was for the Federal Reserve which is not a government institution. Decided to just print more money and more money, then to give all of that money for free to the banks calling it a bail out, now the banks were strong on paper again and their stock prices shot up. The CEO's of these large banks were now able to take a large bonus for the great job they had done at making money for their financial institutions. Then banks decided not to loan out this money like they were supposed to, all they did was buy T Bills that were again printed by the Federal Reserve for a profit. So the Federal Reserve gives the biggest banks in the world free money and then creates notes Federal Reserve notes for them to buy at a profit to the banks. Then again the banks post a profit on Wall Street and their stock prices soar. Bank of America for example made more money in fees then they made in loans in two thousand nine, these fees were fees like overdraft protection, credit card charges. Not lending money.
So why should you care about banks making money out of nothing and food riots in other countries or why it started in the first place. Well the first reason is you have to look at the price of oil and how that affects your gas price, and you also have to notice your grocery bill has been steadily increasing over the last year. Most people don't take notice until things have gotten so bad there is not much you can do about it, but today you can do something about it. We can vote the right people into office that will stop the madness of big government bail outs, and the devaluing of our dollar by running the printing presses none stop. If we don't vote with common sense, meaning that you vote for those who believe that government will not solve our problems and it must be drastically smaller than we can solve this problem, but if we don't there is not much anyone can do to stop the financial suicide that is coming in just a few short years if not sooner to America.
So what happens if you do everything you can but the government does not shrink in size the money printers keep printing more and more money, how are you supposed to protect yourself? The answer is different than most people think, its insurance, used as an investment vehicle. This is not your grandparents insurance though this is equity index universal life insurance that has averaged over eight percent the last four years. The worst four years of the stock market in history. The whole time the money was tax free, that's the equivalent of getting a twelve to fourteen percent return in the market. Some years you can get as much as a thirteen percent return, still all tax free, and you can fund these accounts with as much money as you want, no matter how much money you make. You never have to take any money out if you never want to, unlike other accounts in which the government requires you to start taking money out at seventy and a half. Plus the money comes out completely tax- free; this is the most important part because you do not know what taxes will be in the future. I predict taxes will be higher. What do you think?
So the question is, do you trust your fellow citizens to vote in people who will make the government smaller year in and year out? Do you trust the Federal Reserve to stop printing money? Do you trust the Government to keep your taxes in the future the same or lower? If you answered no to any of these questions then you need the strategy I just talked about equity index universal life insurance. Your money is one hundred percent protected to never lose another penny, and grow tax free at an amazing high rate of return. For example whole life insurance vs. equity index universal life insurance, which both have their purposes? Whole life is more for one hundred percent guaranteed rate of return. These returns are around three to five percent per year every year. Equity Index Universal Life Insurance returns are seven percent on average, but are not guaranteed like Whole Life policies. You can never lose any of your money in either policies but there different policies for different people and where they are in their life. You should always talk to your financial advisor to make sure any one of these policies are right for you but if they have never heard of them or state they are a waste of time then you should get a second opinion. Your kids will thank you in your golden years.
Article Source: http://EzineArticles.com/6023468
So why should you care about banks making money out of nothing and food riots in other countries or why it started in the first place. Well the first reason is you have to look at the price of oil and how that affects your gas price, and you also have to notice your grocery bill has been steadily increasing over the last year. Most people don't take notice until things have gotten so bad there is not much you can do about it, but today you can do something about it. We can vote the right people into office that will stop the madness of big government bail outs, and the devaluing of our dollar by running the printing presses none stop. If we don't vote with common sense, meaning that you vote for those who believe that government will not solve our problems and it must be drastically smaller than we can solve this problem, but if we don't there is not much anyone can do to stop the financial suicide that is coming in just a few short years if not sooner to America.
So what happens if you do everything you can but the government does not shrink in size the money printers keep printing more and more money, how are you supposed to protect yourself? The answer is different than most people think, its insurance, used as an investment vehicle. This is not your grandparents insurance though this is equity index universal life insurance that has averaged over eight percent the last four years. The worst four years of the stock market in history. The whole time the money was tax free, that's the equivalent of getting a twelve to fourteen percent return in the market. Some years you can get as much as a thirteen percent return, still all tax free, and you can fund these accounts with as much money as you want, no matter how much money you make. You never have to take any money out if you never want to, unlike other accounts in which the government requires you to start taking money out at seventy and a half. Plus the money comes out completely tax- free; this is the most important part because you do not know what taxes will be in the future. I predict taxes will be higher. What do you think?
So the question is, do you trust your fellow citizens to vote in people who will make the government smaller year in and year out? Do you trust the Federal Reserve to stop printing money? Do you trust the Government to keep your taxes in the future the same or lower? If you answered no to any of these questions then you need the strategy I just talked about equity index universal life insurance. Your money is one hundred percent protected to never lose another penny, and grow tax free at an amazing high rate of return. For example whole life insurance vs. equity index universal life insurance, which both have their purposes? Whole life is more for one hundred percent guaranteed rate of return. These returns are around three to five percent per year every year. Equity Index Universal Life Insurance returns are seven percent on average, but are not guaranteed like Whole Life policies. You can never lose any of your money in either policies but there different policies for different people and where they are in their life. You should always talk to your financial advisor to make sure any one of these policies are right for you but if they have never heard of them or state they are a waste of time then you should get a second opinion. Your kids will thank you in your golden years.
Article Source: http://EzineArticles.com/6023468
Bad Credit Loans - Financial Crunches Can be Managed Well
Buying for the better bad credit loans? Then you merely know that it can be huge time consuming and irritating. But there are number of lenders who provide monetary for individual's with poor credit if you know where to search from. Firstly, you should analyze that poor credit interest rates are mostly higher than for someone with a great credit ratio.
This does not mean that you can't buy and compare specific rates and terms to avail the best credit loan. It's always essential to do your detailed research before you accept due to it could save you a good deal of funds. There are a number of places to support you with your search so you will end - up with the best credit loans which are accessible.
Not many banks are open to monetary for individual's with poor credit but some are. This is particularly true that if you have an accepted accounts with the bank now and also have been a consistent customer. A poor credit bank loan is the better place to start with as you are before – hand doing business with them as well. That usually gives you a better leverage along with their loan agents as they might feel because you are existing as a customer that you might have the capability to repay the loan better.
A famous alternative to a unsecured bad credit loans or going to a lending institution for a loan that is a bad credit bank loan through the mode of Online. Such poor credit funds lenders provide you loan schemes from the satisfaction of your computer. Number of online poor credit funds lenders provide financing for individual's with poor credit or any type of other credit. Some of such Online lenders have much more competitive interest rates along with the terms and conditions because of a low over – head. So, easily avail them and solve your financial troubles with ease.
http://www.articlesbase.com/loans-articles/bad-credit-loans-financial-crunches-can-be-managed-well-4613694.html
This does not mean that you can't buy and compare specific rates and terms to avail the best credit loan. It's always essential to do your detailed research before you accept due to it could save you a good deal of funds. There are a number of places to support you with your search so you will end - up with the best credit loans which are accessible.
Not many banks are open to monetary for individual's with poor credit but some are. This is particularly true that if you have an accepted accounts with the bank now and also have been a consistent customer. A poor credit bank loan is the better place to start with as you are before – hand doing business with them as well. That usually gives you a better leverage along with their loan agents as they might feel because you are existing as a customer that you might have the capability to repay the loan better.
A famous alternative to a unsecured bad credit loans or going to a lending institution for a loan that is a bad credit bank loan through the mode of Online. Such poor credit funds lenders provide you loan schemes from the satisfaction of your computer. Number of online poor credit funds lenders provide financing for individual's with poor credit or any type of other credit. Some of such Online lenders have much more competitive interest rates along with the terms and conditions because of a low over – head. So, easily avail them and solve your financial troubles with ease.
http://www.articlesbase.com/loans-articles/bad-credit-loans-financial-crunches-can-be-managed-well-4613694.html
Tuesday, March 29, 2011
Mezzanine Financing - A Powerful Financing Vehicle for Growth : By Chris Dobbin
Mezzanine financing ("Mezz") is a little known strategy available for privately held businesses and publicly traded companies that allows a strong performing company to increase its financial leverage in certain transactions. Generally speaking, mezz financing offers the features of both debt (regular interest and principal payments) and equity (options or warrants). Mezz debt will rank behind senior debt but ahead of equity holders in terms of security.
Mezzanine financing is available for companies with strong cash flows. Although there are some limited exceptions in Canada, the majority of mezzanine lenders require historical cash flows to be at a minimum of $2M when looking at historical performance over a three year term.
Companies should consider using mezz financing when traditional senior debt has been maximized but there are additional leverage opportunities available as a result of strong cash flows prior to raising dilutive equity. Mezz financing is generally used for acquisitions (including leveraged buyouts), expansion, recapitalizations, and management buyouts and is prevalent in both operating company situations as well as certain real estate development scenarios.
While Mezzanine financing can be structured in any number of different ways, the common elements of mezzanine financing are as follows:
1. Cash interest - Regular interest paid on a periodic basis similar to paying term debt;
2. PIK (Payment in Kind) Interest - A stated amount of periodic interest that is actually added to the principal amount of a loan which is usually paid back as a bullet payment at the end of the term.
3. Ownership - The lender will receive an option or warrant to convert to equity. Generally, in private company situations, the equity is repurchased by the owner(s) over time.
Since the target total annualized return for mezzanine lenders ranges from 18-21%, it should be noted that mezzanine lenders usually work with the primary bank in structuring their deals to ensure that the cash interest portion charged on the financing is not prohibitive to the business, thus allowing greater flexibility in the overall capital structure. It should also be pointed out that it is possible to achieve an 85%-90% loan to cost ratio with mezzanine financing. In addition, mezzanine financing is usually treated as equity by senior lenders for purposes of financial covenants.
In today's lending environment, it is common to see senior term debt issued at 3.5 times EBITDA (Earnings Before Interest Tax Depreciation and Amortization) with mezzanine debt adding another 1 times EBITDA for total financing of 4.5 turns of EBITDA. As an example, it is conceivable that a strong cash flow company with $2M of cash flow (EBITDA) could borrow $7M of senior debt and another $2M of mezzanine debt for $9M of total financing. Given the strong emphasis placed on cash flow, lenders are very meticulous in their due diligence process.
In the United States, there are hundreds of lenders directly involved mezzanine financing. In Canada, the number of credible lenders is much smaller. The organizations involved in mezzanine financing include private investors, insurance companies, mutual funds, pension funds, certain government crown corporations, and chartered banks.
Business owners should consider the advantages of mezzanine financing prior to raising equity in the private or public markets.
Chris Dobbin, CA is the President of Precipice Capital, a Halifax based investment bank and exempt market dealer specializing in corporate finance for privately held and publicly-traded businesses throughout Canada.
Article Source: http://EzineArticles.com/?expert=Chris_Dobbin
Article Source: http://EzineArticles.com/6086094
Mezzanine financing is available for companies with strong cash flows. Although there are some limited exceptions in Canada, the majority of mezzanine lenders require historical cash flows to be at a minimum of $2M when looking at historical performance over a three year term.
Companies should consider using mezz financing when traditional senior debt has been maximized but there are additional leverage opportunities available as a result of strong cash flows prior to raising dilutive equity. Mezz financing is generally used for acquisitions (including leveraged buyouts), expansion, recapitalizations, and management buyouts and is prevalent in both operating company situations as well as certain real estate development scenarios.
While Mezzanine financing can be structured in any number of different ways, the common elements of mezzanine financing are as follows:
1. Cash interest - Regular interest paid on a periodic basis similar to paying term debt;
2. PIK (Payment in Kind) Interest - A stated amount of periodic interest that is actually added to the principal amount of a loan which is usually paid back as a bullet payment at the end of the term.
3. Ownership - The lender will receive an option or warrant to convert to equity. Generally, in private company situations, the equity is repurchased by the owner(s) over time.
Since the target total annualized return for mezzanine lenders ranges from 18-21%, it should be noted that mezzanine lenders usually work with the primary bank in structuring their deals to ensure that the cash interest portion charged on the financing is not prohibitive to the business, thus allowing greater flexibility in the overall capital structure. It should also be pointed out that it is possible to achieve an 85%-90% loan to cost ratio with mezzanine financing. In addition, mezzanine financing is usually treated as equity by senior lenders for purposes of financial covenants.
In today's lending environment, it is common to see senior term debt issued at 3.5 times EBITDA (Earnings Before Interest Tax Depreciation and Amortization) with mezzanine debt adding another 1 times EBITDA for total financing of 4.5 turns of EBITDA. As an example, it is conceivable that a strong cash flow company with $2M of cash flow (EBITDA) could borrow $7M of senior debt and another $2M of mezzanine debt for $9M of total financing. Given the strong emphasis placed on cash flow, lenders are very meticulous in their due diligence process.
In the United States, there are hundreds of lenders directly involved mezzanine financing. In Canada, the number of credible lenders is much smaller. The organizations involved in mezzanine financing include private investors, insurance companies, mutual funds, pension funds, certain government crown corporations, and chartered banks.
Business owners should consider the advantages of mezzanine financing prior to raising equity in the private or public markets.
Chris Dobbin, CA is the President of Precipice Capital, a Halifax based investment bank and exempt market dealer specializing in corporate finance for privately held and publicly-traded businesses throughout Canada.
Article Source: http://EzineArticles.com/?expert=Chris_Dobbin
Article Source: http://EzineArticles.com/6086094
Behavioral Finance and Your Investments Article: By Steven Pomeranz
Ever wonder why markets make sudden moves from one extreme to the other, or why markets may decline in the face of good news and rise on bad? Seems crazy, right?
Well, many times stock market movements are based on more than new information such as earnings reports or corporate downgrades... markets are quite often moved by investor sentiment. Psychological factors affect not only the average investor, but also professional money managers who tend to be driven by greed, euphoria and fear!
Behavioral Finance
Believe it or not, there is a legitimate field of study which seeks to quantify the impact of emotions, psychology and behavior on investing and financial decisions - it's called Behavioral Finance.
Behavioral Finance teaches us that just as the stock market operates in up and down cycles, markets also operate on their own "cycle of market emotions". Interestingly these two cycles tend to move in tandem.
For example, when the market is at its peak, most investors are in a state of emotional euphoria. Then as the market trends downward toward a bottom, investors' emotions become darker and more fearful, shifting from slight anxiety to despondency or depression.
This is the shift which can have the greatest impact on your decisions and investment results.
A Little Fun....
Take a short quiz to gauge your investor temperament.
A wager is offered where you must pick one of the following choices:
Wager (Investment) A: Gives you a 50% chance of gaining $1,000, and a 50% chance of gaining $0.
Or
Wager (Investment ) B: Gives you a 100% chance of gaining $500.
Which do you chose?
If you chose B then you are like most investors who are careful to avoid losses and concentrate on gains.
If you chose A, you are concentrating on the chance of winning $1,000.
Interestingly, both bets are statistically the same. Wager A has the same statistical outcome as wager B because the average gain is the same. And yet the overwhelming majority chooses Wager B.
Behavioral Finance refers to this as Loss Aversion which refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies even suggest that this aversion is twice as powerful as the desire for gains.
Avoiding loss by refusing to sell an investment when it starts to deteriorate can cause permanent destruction of your wealth. Understanding loss aversion as a personal trait can be the difference between investment success and failure.
Key Takeaways-What to do.
Loss Aversion is one of many behaviors to keep in mind when you make investing decisions-here is the summary:
* Emotional and psychological factors impact our decisions.
* People will base decisions on perceived losses more than perceived gains. (That's what our quiz also showed us.)
* Losses have more of an emotional impact than equivalent gains. This reinforces the earlier point that individuals are more loss-averse than gain-driven.
* Investment decisions are usually based on beliefs and feelings and not on facts. So even though you may do a lot of analysis on a stock, ultimately, it's perhaps your emotions that influence how and when you pull the trigger. Unfortunately investing needs to be strictly non-emotional so the impact on your results can be quite devastating.
Things to Remember
So based on all of the above... when investing:
* Remove as much emotion as possible and stick to your game plan.
* Do your research and due diligence, and understand the upsides and risks.
* If your investment is solid, do not deviate from it just to follow the masses or to time the market. Hang tight, ride out the storms, and you will come out better-off in the end. (Remember how Buffet sat out the dot-com boom despite a lot of heavy criticism, but came out a hero.)
Fundamentals impact market moves, but so does investor behavior. So avoid making investment mistakes, and allow professional advisors to manage your investments or guide you through the process.
If you want to know more about your risk tolerance and investor sentiment, contact us at 1-866-Money-01.
Source: http://ezinearticles.com/?Behavioral-Finance-and-Your-Investments&id=6110501
Well, many times stock market movements are based on more than new information such as earnings reports or corporate downgrades... markets are quite often moved by investor sentiment. Psychological factors affect not only the average investor, but also professional money managers who tend to be driven by greed, euphoria and fear!
Behavioral Finance
Believe it or not, there is a legitimate field of study which seeks to quantify the impact of emotions, psychology and behavior on investing and financial decisions - it's called Behavioral Finance.
Behavioral Finance teaches us that just as the stock market operates in up and down cycles, markets also operate on their own "cycle of market emotions". Interestingly these two cycles tend to move in tandem.
For example, when the market is at its peak, most investors are in a state of emotional euphoria. Then as the market trends downward toward a bottom, investors' emotions become darker and more fearful, shifting from slight anxiety to despondency or depression.
This is the shift which can have the greatest impact on your decisions and investment results.
A Little Fun....
Take a short quiz to gauge your investor temperament.
A wager is offered where you must pick one of the following choices:
Wager (Investment) A: Gives you a 50% chance of gaining $1,000, and a 50% chance of gaining $0.
Or
Wager (Investment ) B: Gives you a 100% chance of gaining $500.
Which do you chose?
If you chose B then you are like most investors who are careful to avoid losses and concentrate on gains.
If you chose A, you are concentrating on the chance of winning $1,000.
Interestingly, both bets are statistically the same. Wager A has the same statistical outcome as wager B because the average gain is the same. And yet the overwhelming majority chooses Wager B.
Behavioral Finance refers to this as Loss Aversion which refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies even suggest that this aversion is twice as powerful as the desire for gains.
Avoiding loss by refusing to sell an investment when it starts to deteriorate can cause permanent destruction of your wealth. Understanding loss aversion as a personal trait can be the difference between investment success and failure.
Key Takeaways-What to do.
Loss Aversion is one of many behaviors to keep in mind when you make investing decisions-here is the summary:
* Emotional and psychological factors impact our decisions.
* People will base decisions on perceived losses more than perceived gains. (That's what our quiz also showed us.)
* Losses have more of an emotional impact than equivalent gains. This reinforces the earlier point that individuals are more loss-averse than gain-driven.
* Investment decisions are usually based on beliefs and feelings and not on facts. So even though you may do a lot of analysis on a stock, ultimately, it's perhaps your emotions that influence how and when you pull the trigger. Unfortunately investing needs to be strictly non-emotional so the impact on your results can be quite devastating.
Things to Remember
So based on all of the above... when investing:
* Remove as much emotion as possible and stick to your game plan.
* Do your research and due diligence, and understand the upsides and risks.
* If your investment is solid, do not deviate from it just to follow the masses or to time the market. Hang tight, ride out the storms, and you will come out better-off in the end. (Remember how Buffet sat out the dot-com boom despite a lot of heavy criticism, but came out a hero.)
Fundamentals impact market moves, but so does investor behavior. So avoid making investment mistakes, and allow professional advisors to manage your investments or guide you through the process.
If you want to know more about your risk tolerance and investor sentiment, contact us at 1-866-Money-01.
Source: http://ezinearticles.com/?Behavioral-Finance-and-Your-Investments&id=6110501
Saturday, August 1, 2009
A Look at Refinancing Your Student Loans : By James Hunaban
Student loans offer individuals without the means to devote immediate payment for an education a path to finance college prices and linked expenses. It's not often the most preferable manner to pay for college, but in numerous instances it is required. After all, who has $15,000 to shell out for one twelvemonth period of college work? Then, once your educational activity is finished, what may you do with your student loans? College loan consolidation is a common means to preserve money on student loans.
If you go for a student loan to help pay for your educational activity, chances are you took out more than one loan. A college loan consolidation takes multiple school loans and unites them into one. There may be a couple of benefits to doing this. Foremost, instead of paying for separate loans, you simply need to pay one loan once every month. Second, the college loan integration payment is oftentimes lower than the total of the separate loans. Why, you may wonder would a person take a college loan consolidation? Educative tolls are extremely expensive.
The total balances of one's training loans can pass the price of luxury autos and even houses. Graduating from college does not always translate to getting a high-paying career from the start. For many graduates in the workforce, student loan payments use up a huge chunk of income, with not much remaining for day to day expenses. A college loan consolidation can offer up respite in the form of lighter payments.
A college loan consolidation could likewise offer relief in the shape of lighter interest rates. Interest rates could deviate widely among different student loans. Chances are, at least one of your loans holds a stiffer rate than what the college loan consolidation provides. The bottom line is you may save cash from a lighter monthly payment, smaller rate of interest, less amount of payments, or even a combination of all three. Whenever you consolidate into a smaller rate of interest, you reduce the interest you pay over the life of the loan. To boot, consolidating your loans could spare you time. Juggling several student loans could become involved.
You have to keep track of which payments go to which lender. A simple error can cause you to underpay one loan while overpaying another. A consolidation eradicates this by permitting you to keep track of just one loan. If you want to truly increase the convenience of a consolidation, you can have the monthly payment deducted direct from your bank account. As long as you recognize not to use that payment amount for other expenses, you need not vex about being late or underpaying your loan. As an additional inducement, umpteen consolidation loan lenders extend further rate reductions for borrowers who take advantage of an automated payment feature. When this inducement is proposed, there actually are zero reasons not to use an automatic payment feature.
Article Source: http://www.articlesbase.com/finance-articles/a-look-at-refinancing-your-student-loans-1079998.html
If you go for a student loan to help pay for your educational activity, chances are you took out more than one loan. A college loan consolidation takes multiple school loans and unites them into one. There may be a couple of benefits to doing this. Foremost, instead of paying for separate loans, you simply need to pay one loan once every month. Second, the college loan integration payment is oftentimes lower than the total of the separate loans. Why, you may wonder would a person take a college loan consolidation? Educative tolls are extremely expensive.
The total balances of one's training loans can pass the price of luxury autos and even houses. Graduating from college does not always translate to getting a high-paying career from the start. For many graduates in the workforce, student loan payments use up a huge chunk of income, with not much remaining for day to day expenses. A college loan consolidation can offer up respite in the form of lighter payments.
A college loan consolidation could likewise offer relief in the shape of lighter interest rates. Interest rates could deviate widely among different student loans. Chances are, at least one of your loans holds a stiffer rate than what the college loan consolidation provides. The bottom line is you may save cash from a lighter monthly payment, smaller rate of interest, less amount of payments, or even a combination of all three. Whenever you consolidate into a smaller rate of interest, you reduce the interest you pay over the life of the loan. To boot, consolidating your loans could spare you time. Juggling several student loans could become involved.
You have to keep track of which payments go to which lender. A simple error can cause you to underpay one loan while overpaying another. A consolidation eradicates this by permitting you to keep track of just one loan. If you want to truly increase the convenience of a consolidation, you can have the monthly payment deducted direct from your bank account. As long as you recognize not to use that payment amount for other expenses, you need not vex about being late or underpaying your loan. As an additional inducement, umpteen consolidation loan lenders extend further rate reductions for borrowers who take advantage of an automated payment feature. When this inducement is proposed, there actually are zero reasons not to use an automatic payment feature.
Article Source: http://www.articlesbase.com/finance-articles/a-look-at-refinancing-your-student-loans-1079998.html
Retirement Planning – Start Early & Enjoy Financial Independence: By Carole Dople
Everyone retires one day so the earlier you start your retirement planning, the better for your future. It really does not matter whether you would be retiring in the next 5 years or the next 20, start planning now. That would definitely improve your financial future.
The Need for Retirement Planning
People think of ideal retirement as a combination of leisure activities, financial independence and luxury vacations - all these things are possible only if you have enough money when you retire. To live a comfortable life after you retire, you need financial planning. There are many tools and resources available to help you plan better.
The Basic Steps Of Retirement Planning
* How much money would you need after you retire? – This is dependent on your current standard of living. You need to estimate what your annual expenses will be after you retire. One point to be taken into consideration for this estimation is the difference between the current expenses and retirement expenses. For example, right now a large percentage of your income goes towards your house mortgage and children’s education. But by the time you retire, your children must have settled with their jobs and you would have a home of your own. When you retire, you and your spouse may have increased medical expenses and you would also like to spend money on vacations. Here, you also need to consider inflation. The average inflation rate is around 3%.
* How much would you need to save? – After you calculate the inflow that may come from part time income, interest on the savings and Social Security; you need to estimate the exact value that your assets will have and the income you will earn after you retire. By calculating this, you would come to know the shortfall. Here, there are many factors that need to be considered. At what age you are planning to retire, the number of years you are going to live (depends upon your health) and the return on your current investment. The first two factors roughly determine the number of years of your retirement. While calculating the rate of interest on your investment, take a conservative call and calculate the return based on around 5 to 6 percent. This would enable you to calculate the amount of money you require to save after you retire.
* How to build the retirement corpus? – Once you have determined the amount of money needed to be save each month from now till your retirement, the next step is to find a plan that is just right for your savings needs. Ideally, you should arrange for a specific amount that is directly taken from your monthly paycheck and automatically invested in the financial plan of your choice. This type of arrangement would reduce your impulsive spending habits. You can opt for payroll deduction savings plan or 401(k) plans.
For the perfect financial planning, you need to understand the different savings and investment options that are available to you. This definitely requires a lot of dedication on your part. If you are busy and can not find enough time or do not quite understand the intricacies of various investment plans then it is advisable to hire a financial advisor, to take care of your retirement planning needs. Financial security after you retire is important – you must start planning for it now.
Article Source: http://www.articlesbase.com/finance-articles/retirement-planning-start-early-enjoy-financial-independence-1077713.html
The Need for Retirement Planning
People think of ideal retirement as a combination of leisure activities, financial independence and luxury vacations - all these things are possible only if you have enough money when you retire. To live a comfortable life after you retire, you need financial planning. There are many tools and resources available to help you plan better.
The Basic Steps Of Retirement Planning
* How much money would you need after you retire? – This is dependent on your current standard of living. You need to estimate what your annual expenses will be after you retire. One point to be taken into consideration for this estimation is the difference between the current expenses and retirement expenses. For example, right now a large percentage of your income goes towards your house mortgage and children’s education. But by the time you retire, your children must have settled with their jobs and you would have a home of your own. When you retire, you and your spouse may have increased medical expenses and you would also like to spend money on vacations. Here, you also need to consider inflation. The average inflation rate is around 3%.
* How much would you need to save? – After you calculate the inflow that may come from part time income, interest on the savings and Social Security; you need to estimate the exact value that your assets will have and the income you will earn after you retire. By calculating this, you would come to know the shortfall. Here, there are many factors that need to be considered. At what age you are planning to retire, the number of years you are going to live (depends upon your health) and the return on your current investment. The first two factors roughly determine the number of years of your retirement. While calculating the rate of interest on your investment, take a conservative call and calculate the return based on around 5 to 6 percent. This would enable you to calculate the amount of money you require to save after you retire.
* How to build the retirement corpus? – Once you have determined the amount of money needed to be save each month from now till your retirement, the next step is to find a plan that is just right for your savings needs. Ideally, you should arrange for a specific amount that is directly taken from your monthly paycheck and automatically invested in the financial plan of your choice. This type of arrangement would reduce your impulsive spending habits. You can opt for payroll deduction savings plan or 401(k) plans.
For the perfect financial planning, you need to understand the different savings and investment options that are available to you. This definitely requires a lot of dedication on your part. If you are busy and can not find enough time or do not quite understand the intricacies of various investment plans then it is advisable to hire a financial advisor, to take care of your retirement planning needs. Financial security after you retire is important – you must start planning for it now.
Article Source: http://www.articlesbase.com/finance-articles/retirement-planning-start-early-enjoy-financial-independence-1077713.html
Friday, July 31, 2009
Cash till payday: solve small financial problems: By Charly Groom
Small financial needs creep in slowly when we are low on cash. With no finances obviously catering a small financial requirement also becomes very difficult and may create a financial pressure. What if your payday is also yet far away how will you com out such situation? Cash till payday is a great solution that can be easily entailed for small financial needs. Anyone can easily meet important financial needs with the help of these advances.
Small and urgent expenses that need to be attended instantly can be easily met with the help of these loans. With finances various expenses can be paid off like:-
* Library fee
* House rent
* Purchase grocery or stationery
* Pay for computer maintenance
* Consolidate outstanding bills
Bad creditors can also entail these loans without worrying about their blemished credit history. There is no credit check required and those facing bad credit records such as arrears, CCJs, IVA, late payments, bankruptcy, missed payments and defaults can seek approval. All types of borrowers are acceptable.
The loan amount offered by these loans is small and ranges from £100-£1500 for a short period of 15- 31 days. Being short term in nature the financial help is extended at slightly higher rates of interest. The repayment date can be adjusted with the upcoming payday easily.
These can be applied through any bank, other financial institution or even online. There is multitude of lenders that are available online and offer profitable deals. By doing research and comparing their quotes you can easily fetch a good deal for yourself. Online one can apply in hassle free manner and without facing any trouble.
There are no approval delays to be faced while applying for these loans as there are no formalities involved. You need not waste your time in paperwork, credit check or faxing formality. Moreover, on approval the funds get transferred directly to your bank account.
Article Source: http://www.articlesbase.com/finance-articles/cash-till-payday-solve-small-financial-problems-1081961.html
Small and urgent expenses that need to be attended instantly can be easily met with the help of these loans. With finances various expenses can be paid off like:-
* Library fee
* House rent
* Purchase grocery or stationery
* Pay for computer maintenance
* Consolidate outstanding bills
Bad creditors can also entail these loans without worrying about their blemished credit history. There is no credit check required and those facing bad credit records such as arrears, CCJs, IVA, late payments, bankruptcy, missed payments and defaults can seek approval. All types of borrowers are acceptable.
The loan amount offered by these loans is small and ranges from £100-£1500 for a short period of 15- 31 days. Being short term in nature the financial help is extended at slightly higher rates of interest. The repayment date can be adjusted with the upcoming payday easily.
These can be applied through any bank, other financial institution or even online. There is multitude of lenders that are available online and offer profitable deals. By doing research and comparing their quotes you can easily fetch a good deal for yourself. Online one can apply in hassle free manner and without facing any trouble.
There are no approval delays to be faced while applying for these loans as there are no formalities involved. You need not waste your time in paperwork, credit check or faxing formality. Moreover, on approval the funds get transferred directly to your bank account.
Article Source: http://www.articlesbase.com/finance-articles/cash-till-payday-solve-small-financial-problems-1081961.html
The current state of Floridas financial system : By: Ronnie Tanner
If Florida’s City Council doesn’t vote in favor of the proposed mileage rate increase the state is in danger of facing more budget problems.
The Florida Chamber of Commerce created a six-driver structure to focus six major areas that include, innovation, talent, business climate, infrastructure, governance and quality of life. They will also invest
in the new economy by creating more high skilled and higher paying jobs for residents of Florida. The commerce is in support of international trade and would like to see better paying jobs created in that area also
.
Employers will focus on restructuring and increasing job opportunities for the work force and focusing on career education that is geared towards the job.
The commerce also supports having an energy policy that will be affordable and reliable.
Some of the other concerns that the state will support and focus on are in the areas of property insurance, health insurance, property tax relief, workers compensation, private property rights, Lawsuit abuse reform, constitutional amendment reform, and attainable housing.
The government affairs advocate for the North Florida Region of the Chamber of Commerce, Brock Mikosky is optimistic that the economic situation will get better if free enterprise and capitalism comes into play. He also said that he believes that taxing and changing policies can’t solve the present economic situation.
The President of Compass Bank, Nelson Bradshaw blames the economic crisis on the residential mortgage business. He said that it is spiraling down so fast that it has caused havoc for the contractors and sub contractors.
The state of Florida was second in the nation for mortgage fraud in 2008 but in 2006 and 2007 they were number one in the nation for mortgage fraud.
Florida Attorney General Bill McCollum has called for several agencies to create a ‘cooperative approach’ to the fraudulent housing crisis after receiving thousands of calls from homeowners who were dooped by phony foreclosure rescue agencies.
It has been reported that the housing market is getting better but the consumer must be aware of agencies pretending to help them with their mortgage.
Most of the business owners in the state of Florida are republican but they do have faith in the new administration.
Some lobbyist believe that it is vital for the Chamber of Commerce and the state lawmakers to band together if they expect to see a full recovery of the economy in Florida.
Florida was once a beautiful and affordable state to live in. It is still very beautiful but now sits at number fourteen on the list of the most expensive states to live in.
Article Source: http://www.articlesbase.com/finance-articles/the-current-state-of-floridas-financial-system-1083799.html
The Florida Chamber of Commerce created a six-driver structure to focus six major areas that include, innovation, talent, business climate, infrastructure, governance and quality of life. They will also invest
in the new economy by creating more high skilled and higher paying jobs for residents of Florida. The commerce is in support of international trade and would like to see better paying jobs created in that area also
.
Employers will focus on restructuring and increasing job opportunities for the work force and focusing on career education that is geared towards the job.
The commerce also supports having an energy policy that will be affordable and reliable.
Some of the other concerns that the state will support and focus on are in the areas of property insurance, health insurance, property tax relief, workers compensation, private property rights, Lawsuit abuse reform, constitutional amendment reform, and attainable housing.
The government affairs advocate for the North Florida Region of the Chamber of Commerce, Brock Mikosky is optimistic that the economic situation will get better if free enterprise and capitalism comes into play. He also said that he believes that taxing and changing policies can’t solve the present economic situation.
The President of Compass Bank, Nelson Bradshaw blames the economic crisis on the residential mortgage business. He said that it is spiraling down so fast that it has caused havoc for the contractors and sub contractors.
The state of Florida was second in the nation for mortgage fraud in 2008 but in 2006 and 2007 they were number one in the nation for mortgage fraud.
Florida Attorney General Bill McCollum has called for several agencies to create a ‘cooperative approach’ to the fraudulent housing crisis after receiving thousands of calls from homeowners who were dooped by phony foreclosure rescue agencies.
It has been reported that the housing market is getting better but the consumer must be aware of agencies pretending to help them with their mortgage.
Most of the business owners in the state of Florida are republican but they do have faith in the new administration.
Some lobbyist believe that it is vital for the Chamber of Commerce and the state lawmakers to band together if they expect to see a full recovery of the economy in Florida.
Florida was once a beautiful and affordable state to live in. It is still very beautiful but now sits at number fourteen on the list of the most expensive states to live in.
Article Source: http://www.articlesbase.com/finance-articles/the-current-state-of-floridas-financial-system-1083799.html
Government Financial Assistance Grants: By Jack Cardell
Government financial assistance grants are merely finances that are offered by the government without any interest and which does not need to be re paid. These grants are a very good way of getting financial assistance irrespective of the type of credit rating that you currently have.
In order to be eligible to receive a grant you have to fulfill certain criteria. There is a specific principle for receiving financial assistance that has been fixed by the government itself. According to this principle, if you are seeking a grant then you have to have complete knowledge about that grant and need to struggle with other people vying for the grant too. Even after this, there is no guarantee that you will receive the government grant. The amount of money you receive as a part of a grant is always preset and is never altered later. Therefore, it is wise to apply for a government grant as quickly as you can as they are usually given out on a first come first serve basis.
There are various different types of government grants that are made available to the all the citizens by the government of the United States of America. The types available are:
1. Adoption tax credit
2. Housing rental grants
3. Grants for retirees
4. Legal help grant
5. College student grants and loans
6. Health insurance for children grants
7. Financial assistance for small business
8. Health care grants
9. Training and employment grants
10. Expatriate settlement grant
One of the main reasons for the government to offer these grants is so that it can provide assistance to persons who were not given loans to by banks or financial agencies. In the United States, there are approximately 3,500 different government grants and close to 20,000 educational programs.
Minority small business grants are the pinnacle of financing ordinary peoples' business dreams. The United States is built from that very same dream of prosperity and the government wants ordinary people like us to build our own future and take charge of our own lives. Barack Obama is a great supporter of the people that make up our nation, and he's laid out tens of billions every year in funding from personal government grants to business and education grants for all to benefit. You can visit the links in this article to learn exactly how to obtain government grants for your needs.
Article Source: http://EzineArticles.com/?expert=Jack_Cardell
In order to be eligible to receive a grant you have to fulfill certain criteria. There is a specific principle for receiving financial assistance that has been fixed by the government itself. According to this principle, if you are seeking a grant then you have to have complete knowledge about that grant and need to struggle with other people vying for the grant too. Even after this, there is no guarantee that you will receive the government grant. The amount of money you receive as a part of a grant is always preset and is never altered later. Therefore, it is wise to apply for a government grant as quickly as you can as they are usually given out on a first come first serve basis.
There are various different types of government grants that are made available to the all the citizens by the government of the United States of America. The types available are:
1. Adoption tax credit
2. Housing rental grants
3. Grants for retirees
4. Legal help grant
5. College student grants and loans
6. Health insurance for children grants
7. Financial assistance for small business
8. Health care grants
9. Training and employment grants
10. Expatriate settlement grant
One of the main reasons for the government to offer these grants is so that it can provide assistance to persons who were not given loans to by banks or financial agencies. In the United States, there are approximately 3,500 different government grants and close to 20,000 educational programs.
Minority small business grants are the pinnacle of financing ordinary peoples' business dreams. The United States is built from that very same dream of prosperity and the government wants ordinary people like us to build our own future and take charge of our own lives. Barack Obama is a great supporter of the people that make up our nation, and he's laid out tens of billions every year in funding from personal government grants to business and education grants for all to benefit. You can visit the links in this article to learn exactly how to obtain government grants for your needs.
Article Source: http://EzineArticles.com/?expert=Jack_Cardell
Financial Disorganization is No Longer a Choice: By Christine McGinley
When the economy was booming and work was abundant, we all lived with little concern. Yet, as the unemployment rate is at an all time high - and the housing market has lost 10 years of value; we need to tighten our belts. But how? Well...it seems that everyone knows how much their paycheck will be at the end of the week, but the interest rate on the car payment or major credit card - not a clue. Debt management is absolutely necessary.
According to an article in USA Today (2009), the average household has $668,621 in debt; $121,953 in personal debt (credit cards, mortgages etc.) and $546,668 in Federal Governmental Debt. (our portion of programs such as medicare and social security). So, the economy has a terrible long term downfall that we will feel for many years to come - even if he job market rebounds. This means, that we MUST know where every penny is going, every interest rate on every account - so we can better maintain our financial life.
Think about 2 years worth or paperwork, bills, passwords, online accounts, checking & savings accounts, car loans, credit cards, doctor bills, medical benefit information, life insurance information...you get the point. At one given moment, if any of this paperwork was lost - well there would be havoc to bear trying to recuperate the details. What about the details of all of this information? Do you know your interest rates for every loan and line of credit? How about the due dates, the mailing address, the customer service numbers and the account numbers? Can you say with confidence that you have placed your payments in the best fashion; in order to utilize your money to its fullest? Well, if not...time to get organized! Organization and electronic records available at your fingertips...
Your One Stop Shop For Financial Freedom!
http://www.StepTowardsFinancialFreedom.com
Life Insurance & Annuities
Loan Modification Support Services
Electronic Financial Organization
Money Merger Program
Article Source: http://EzineArticles.com/?expert=Christine_McGinley
According to an article in USA Today (2009), the average household has $668,621 in debt; $121,953 in personal debt (credit cards, mortgages etc.) and $546,668 in Federal Governmental Debt. (our portion of programs such as medicare and social security). So, the economy has a terrible long term downfall that we will feel for many years to come - even if he job market rebounds. This means, that we MUST know where every penny is going, every interest rate on every account - so we can better maintain our financial life.
Think about 2 years worth or paperwork, bills, passwords, online accounts, checking & savings accounts, car loans, credit cards, doctor bills, medical benefit information, life insurance information...you get the point. At one given moment, if any of this paperwork was lost - well there would be havoc to bear trying to recuperate the details. What about the details of all of this information? Do you know your interest rates for every loan and line of credit? How about the due dates, the mailing address, the customer service numbers and the account numbers? Can you say with confidence that you have placed your payments in the best fashion; in order to utilize your money to its fullest? Well, if not...time to get organized! Organization and electronic records available at your fingertips...
Your One Stop Shop For Financial Freedom!
http://www.StepTowardsFinancialFreedom.com
Life Insurance & Annuities
Loan Modification Support Services
Electronic Financial Organization
Money Merger Program
Article Source: http://EzineArticles.com/?expert=Christine_McGinley
Investor Protectionism and Financial Market Size: By Charles Ampong
A common denominator of market-based financial system like that of United States and U.K and bank-based financial system such as that of Germany or France is investor protection. The United States has a market-based system because its economy is largely dependent on property and financial asset value. Consequently, it has a large stock and bond markets creating a large market which attracts investors and companies from all over the world. This presupposes that the stock market and individuals (that is investors) play a significant critical role in corporate finance and governance as large fraction of individual portfolios is held in the equity market. Moreover, equity financing is practiced in this system.
On the other hand, bank-based systems are characterized by financial assets predominantly being held by financial institutions encompassing banks, mutual funds, insurance companies, pension funds and others. This means direct equity investment is small whilst individual investment is predominantly held in bank deposits, insurance policies, mutual and pension funds e.t.c. Debt financing comes mainly from banks instead of stock markets and so the stock market is comparatively small and less significant in this type of economic system. The fact is that, in market-based financial systems, investors property rights are protected well due to the fact that stocks and bonds markets are significant and form a higher percentage of the GDP. For example in 2003, financial assets was about 327% of GDP for U.S and 306% for U.K which are market-based dominant financial systems compared to 192% in Europe, 267% in Japan which tends to be bank-based dominant systems, an epitome of socialist systems [1}.
The large stock market size in terms of number of listed companies, aggregate market value relative to GDP and initial public offering (IPO) relative to population is a repercussion of the investor confidence and the quality of laws governing the market. Contrarily, inadequate protection rights minimize the integrity and size of the market as seen in the economies with dominant bank-based financial systems. Even in the efficient market-based systems where shareholders and creditors of the market are protected well by laws, political trends and shift in government policy can inhibit the smooth running of these markets. There is the tendency for governments to garner more power and control in terms of enforcement of the laws governing the market in times of deep economic recession.
A case in point is the financial market crash in 1929 which was followed by the government expansion and ownership in the Great Depression. However, much as laws need to be enforced to ensure investor protection, an expansion of government control of the market can be very ambitious besides reducing the efficiency of the market. That is why it is incumbent on the Federal government to critically examine the amount of power and reforms it seeks to control the market to avoid a rippling effect of market inefficiencies. Most importantly the market inefficiencies would emanate mainly from competition and capital gains impairment, no insulation from political influence on investment and operating decisions. The market is a privatization entity and so should be allowed to operate with some level of independence for efficiency and profitability. Reforms are necessary to ensure investor protection and subsequently confidence yet very robust reforms if not handled carefully can impact negatively the markets.
These times are similar to the Great Depression period and care needs to be taken to avoid the degenerating syndrome of "protectionism" as practiced in some socialist systems. We have learnt by observation and experience that the large size of the U.S market is also a result of large number of foreign individuals and company investments and any failure of the market spills into the economies of the rest of the world.
Reference:
[1] CEIC Data Ltd, International Financial Statistics, and National Sources
Charles Horace Ampong a holder of masters degrees in engineering and business management has professional strengths in engineering, management, finance, economics accounting and marketing having worked as an engineer and analyst and currently working as a consultant for GLG Councils. His current area of research includes risk management, international finance, financial modeling, derivatives, managerial economics and forecasting, management accounting, operations management, marketing analysis and advanced applied statistics in business management.
Article Source: http://EzineArticles.com/?expert=Charles_Ampong
On the other hand, bank-based systems are characterized by financial assets predominantly being held by financial institutions encompassing banks, mutual funds, insurance companies, pension funds and others. This means direct equity investment is small whilst individual investment is predominantly held in bank deposits, insurance policies, mutual and pension funds e.t.c. Debt financing comes mainly from banks instead of stock markets and so the stock market is comparatively small and less significant in this type of economic system. The fact is that, in market-based financial systems, investors property rights are protected well due to the fact that stocks and bonds markets are significant and form a higher percentage of the GDP. For example in 2003, financial assets was about 327% of GDP for U.S and 306% for U.K which are market-based dominant financial systems compared to 192% in Europe, 267% in Japan which tends to be bank-based dominant systems, an epitome of socialist systems [1}.
The large stock market size in terms of number of listed companies, aggregate market value relative to GDP and initial public offering (IPO) relative to population is a repercussion of the investor confidence and the quality of laws governing the market. Contrarily, inadequate protection rights minimize the integrity and size of the market as seen in the economies with dominant bank-based financial systems. Even in the efficient market-based systems where shareholders and creditors of the market are protected well by laws, political trends and shift in government policy can inhibit the smooth running of these markets. There is the tendency for governments to garner more power and control in terms of enforcement of the laws governing the market in times of deep economic recession.
A case in point is the financial market crash in 1929 which was followed by the government expansion and ownership in the Great Depression. However, much as laws need to be enforced to ensure investor protection, an expansion of government control of the market can be very ambitious besides reducing the efficiency of the market. That is why it is incumbent on the Federal government to critically examine the amount of power and reforms it seeks to control the market to avoid a rippling effect of market inefficiencies. Most importantly the market inefficiencies would emanate mainly from competition and capital gains impairment, no insulation from political influence on investment and operating decisions. The market is a privatization entity and so should be allowed to operate with some level of independence for efficiency and profitability. Reforms are necessary to ensure investor protection and subsequently confidence yet very robust reforms if not handled carefully can impact negatively the markets.
These times are similar to the Great Depression period and care needs to be taken to avoid the degenerating syndrome of "protectionism" as practiced in some socialist systems. We have learnt by observation and experience that the large size of the U.S market is also a result of large number of foreign individuals and company investments and any failure of the market spills into the economies of the rest of the world.
Reference:
[1] CEIC Data Ltd, International Financial Statistics, and National Sources
Charles Horace Ampong a holder of masters degrees in engineering and business management has professional strengths in engineering, management, finance, economics accounting and marketing having worked as an engineer and analyst and currently working as a consultant for GLG Councils. His current area of research includes risk management, international finance, financial modeling, derivatives, managerial economics and forecasting, management accounting, operations management, marketing analysis and advanced applied statistics in business management.
Article Source: http://EzineArticles.com/?expert=Charles_Ampong
What Credit Crunch? Financing Alternatives In Today's Tough Credit Environment: By cfgroup
With the credit crunch in full force, many small businesses are finding it harder and harder to land a business loan. Even business lines of credit are being squeezed tighter-often yanked right out from under companies that have long established histories with financial institutions.
Fast-growth companies are especially vulnerable in the current credit environment. Those with 20 percent or higher annual growth rates can make banks nervous even during the best of times, since fast growth can knock their ratios out of whack and result in temporary periods of unprofitability.
There is hope, however, for companies in this predicament. A creative financing alternative known as asset-based lending (ABL) can be a virtual lifeline for these types of businesses. ABL is ideal for companies that can't qualify for traditional business loans due to fast growth or other extenuating (and often temporary) circumstances. Start-up firms and those with heavy seasonal inventory needs are good examples, but any company with a solid foundation and a history of success that's facing temporary financial challenges could benefits from ABL.
How It Works
ABL generally takes one of two primary forms: factoring services or accounts receivable financing.
With factoring services, companies sell their outstanding receivables to a commercial finance company (sometimes referred to as a "factor") at a discount that's typically between 2-5%. The amount of the discount depends on such variables as the collection risk, number of days the funds are in use, and how much of the receivable is advanced (80% is common). There are two key benefits of factoring:
Drastically improved cash flow-Instead of waiting 30, 60 or even 90 days or longer to receive payment, the business gets most of the accounts receivable when the invoice is generated. This reduction in the receivables lag can mean the difference between success and failure for companies operating on long cash flow cycles.
No more credit analysis, risk or collections-The finance company performs credit checks on customers and analyzes credit reports to uncover bad risks and set appropriate credit limits-essentially becoming the business's full-time credit manager. It also performs all the services of a full-fledged A/R department, including folding, stuffing, mailing and documenting invoices and payments in a ledgering system.
With accounts receivable financing, companies borrow against the value of their accounts receivable, instead of selling them to a finance company outright. Their receivables, in effect, become collateral for the business loan, with the finance company advancing funds based on a calculation of the outstanding receivables. The best candidates for accounts receivable financing are companies that can demonstrate a history of strong financial planning, that have solid financial reporting capabilities, and that don't have high customer concentrations (e.g., no more than 60% of sales to one customer).
Finding a Commercial Finance Company
When searching for an ABL lender, talk to your bank first. However, since ABL is a specialized type of lending, many banks don't do it in-house, instead referring their customers to commercial finance companies.
Be sure to check out any potential commercial finance company carefully. Find out how long they've been in business and how well capitalized they are. How many local businesses have used (or are using) them? Does the commercial finance company itself qualify for commercial banking services? Professional experience and adequate capitalization are especially crucial.
Important: A commercial finance company will become an integral part of your business team. Therefore, take the time for careful due diligence when selecting your partner, and enter into the relationship carefully and thoughtfully.
Article source: http://articleavenue.com/article23566-what-credit-crunch-financing-alternatives-in-todays-tough-credit-environment.html
Fast-growth companies are especially vulnerable in the current credit environment. Those with 20 percent or higher annual growth rates can make banks nervous even during the best of times, since fast growth can knock their ratios out of whack and result in temporary periods of unprofitability.
There is hope, however, for companies in this predicament. A creative financing alternative known as asset-based lending (ABL) can be a virtual lifeline for these types of businesses. ABL is ideal for companies that can't qualify for traditional business loans due to fast growth or other extenuating (and often temporary) circumstances. Start-up firms and those with heavy seasonal inventory needs are good examples, but any company with a solid foundation and a history of success that's facing temporary financial challenges could benefits from ABL.
How It Works
ABL generally takes one of two primary forms: factoring services or accounts receivable financing.
With factoring services, companies sell their outstanding receivables to a commercial finance company (sometimes referred to as a "factor") at a discount that's typically between 2-5%. The amount of the discount depends on such variables as the collection risk, number of days the funds are in use, and how much of the receivable is advanced (80% is common). There are two key benefits of factoring:
Drastically improved cash flow-Instead of waiting 30, 60 or even 90 days or longer to receive payment, the business gets most of the accounts receivable when the invoice is generated. This reduction in the receivables lag can mean the difference between success and failure for companies operating on long cash flow cycles.
No more credit analysis, risk or collections-The finance company performs credit checks on customers and analyzes credit reports to uncover bad risks and set appropriate credit limits-essentially becoming the business's full-time credit manager. It also performs all the services of a full-fledged A/R department, including folding, stuffing, mailing and documenting invoices and payments in a ledgering system.
With accounts receivable financing, companies borrow against the value of their accounts receivable, instead of selling them to a finance company outright. Their receivables, in effect, become collateral for the business loan, with the finance company advancing funds based on a calculation of the outstanding receivables. The best candidates for accounts receivable financing are companies that can demonstrate a history of strong financial planning, that have solid financial reporting capabilities, and that don't have high customer concentrations (e.g., no more than 60% of sales to one customer).
Finding a Commercial Finance Company
When searching for an ABL lender, talk to your bank first. However, since ABL is a specialized type of lending, many banks don't do it in-house, instead referring their customers to commercial finance companies.
Be sure to check out any potential commercial finance company carefully. Find out how long they've been in business and how well capitalized they are. How many local businesses have used (or are using) them? Does the commercial finance company itself qualify for commercial banking services? Professional experience and adequate capitalization are especially crucial.
Important: A commercial finance company will become an integral part of your business team. Therefore, take the time for careful due diligence when selecting your partner, and enter into the relationship carefully and thoughtfully.
Article source: http://articleavenue.com/article23566-what-credit-crunch-financing-alternatives-in-todays-tough-credit-environment.html
Financial Help For People With Cerebral Palsy: By Mike Selvon
Children with cerebral palsy are eligible for a number of federal and state benefit programs -- from Social Security and Medicaid to reduced rent and low-interest loans for technology devices to assist them. Dealing with cerebral palsy can be challenging for families, especially since the child will need so many services, such as doctors, surgeons, physical therapists, occupational therapists, speech pathologists, dental hygienists and mental health counselors. Luckily, help is just around the corner.
Your first stop for financial aid for your cerebral palsy child should be to apply for Social Security benefits. If you or your child has become disabled before the age of 22, then you are eligible for Adult Child Social Security benefits. If your child is under 18, you can apply for Supplemental Security Income benefits through your local Social Security office.
Children with cerebral palsy are admitted easily to this government aid program, which is designed for people with life-long disabilities or who are too old to work any longer. Sometimes Medicaid health insurance coverage automatically comes with SSI, but other times you must apply separately for these benefits. Be sure to ask your SSI representative what your state's rules are.
There are other resources for those with cerebral palsy. For instance, the United Cerebral Palsy Community Resource Funds offer emergency money for living expenses and technological needs. The USA TechGuide website offers low-interest, technology loans and state grants to help kids with spastic cerebral palsy get the necessary medical devices they need.
New mothers who need to take time off from work to care for their child are eligible for supplemental income (50-60% of their standard salary) from Temporary Disability Insurance for up to 12 months. Once your child reaches school age, the Individual Education Plan (through the Individuals with Disabilities Act) can provide your child with a team of therapists and educators, as well as the proper devices to ensure your child learns all he/she can.
Later in life, as the child with this disability grows into an adult, he or she may decide to live on his/her own. Through Section 8 HUD, patients with this disability can get housing assistance vouchers and reduced rent based on their income and demonstrated need. Through the Krysti Bingham Cerebral Palsy Foundation, eligible residents will only pay 30% of their living expenses, with the rest funded through a government grant.
According to the Foundation, "Too often, people in the prime of life have been forced to live in nursing homes, rehabilitation centers and hospitals, or at home with aging parents. The KBCPF 'Hope Houses' transforms the lifestyle of those with this disability from one of social isolation and dependency to one of dignity, shared experiences and community involvement."
Educate yourself further about the disability form from Mike Selvon articles portal and download your free audio gift on the disability application.
Article Source: http://EzineArticles.com/?expert=Mike_Selvon
Your first stop for financial aid for your cerebral palsy child should be to apply for Social Security benefits. If you or your child has become disabled before the age of 22, then you are eligible for Adult Child Social Security benefits. If your child is under 18, you can apply for Supplemental Security Income benefits through your local Social Security office.
Children with cerebral palsy are admitted easily to this government aid program, which is designed for people with life-long disabilities or who are too old to work any longer. Sometimes Medicaid health insurance coverage automatically comes with SSI, but other times you must apply separately for these benefits. Be sure to ask your SSI representative what your state's rules are.
There are other resources for those with cerebral palsy. For instance, the United Cerebral Palsy Community Resource Funds offer emergency money for living expenses and technological needs. The USA TechGuide website offers low-interest, technology loans and state grants to help kids with spastic cerebral palsy get the necessary medical devices they need.
New mothers who need to take time off from work to care for their child are eligible for supplemental income (50-60% of their standard salary) from Temporary Disability Insurance for up to 12 months. Once your child reaches school age, the Individual Education Plan (through the Individuals with Disabilities Act) can provide your child with a team of therapists and educators, as well as the proper devices to ensure your child learns all he/she can.
Later in life, as the child with this disability grows into an adult, he or she may decide to live on his/her own. Through Section 8 HUD, patients with this disability can get housing assistance vouchers and reduced rent based on their income and demonstrated need. Through the Krysti Bingham Cerebral Palsy Foundation, eligible residents will only pay 30% of their living expenses, with the rest funded through a government grant.
According to the Foundation, "Too often, people in the prime of life have been forced to live in nursing homes, rehabilitation centers and hospitals, or at home with aging parents. The KBCPF 'Hope Houses' transforms the lifestyle of those with this disability from one of social isolation and dependency to one of dignity, shared experiences and community involvement."
Educate yourself further about the disability form from Mike Selvon articles portal and download your free audio gift on the disability application.
Article Source: http://EzineArticles.com/?expert=Mike_Selvon
Thursday, July 30, 2009
How to Find the Right Financial Services Firm
By Ray McCaskey
The global financial crisis has created one of the worst recessions since 1982 and this has caused millions of investors to have many sleepless nights as they struggle to find a strategy that will protect them during the bad times yet allow them to participate in the growth during times of expansion. While there is nothing wrong with this many financial services firms have promised the world yet undelivered on the promises that they made to their clients, causing them to lose money. The current economic situation underscores this lack of follow through which has taken place with in the financial services industry. In response to these different challenges many investors are now searching for those financial services firms that will protect them while providing consistent growth. To find the right firm for your situation requires that you consider a number of different factors.
Do they have a wide variety of different strategies that they can use? Whenever you are dealing with any financial services firm you want to make sure that they have many different strategies that you can use in both bull as well as bear markets to make money. What happens to most people work only with those firms which sound good, when it comes to strategy they have the one standard that they use on virtually all clients, buy and hold. This lack of ideas means that when the bear markets do come you could see sizable losses in your account as prices are cut dramatically.
What will be done to protect you against risk? Whenever you are investing in anything there will always be a certain degree of risk involved. To protect yourself from holding the Enron's of the world requires that you work with a financial services firm that will show you how you can protect yourself against the different forms of risk such as hedging, using sell stops or diversification.
Clearly choosing the right financial services firm can be challenging. However, by making sure that they offer a wide variety of strategies and knowing that that they have different ways to protect you against risk will help you to be able to avoid some of the severe declines which are known to occur during bear market and to participate in the growth associate with bull markets, helping you to have consistent profits.
To learn more about the different ways that you can invest please visit the managing wealth creation website today to claim your free DVD.
Get the information you need about Financial Services such as Asset Protection, Estate Planning and Tax Minimisation.
Article Source: http://EzineArticles.com/?expert=Ray_McCaskey
The global financial crisis has created one of the worst recessions since 1982 and this has caused millions of investors to have many sleepless nights as they struggle to find a strategy that will protect them during the bad times yet allow them to participate in the growth during times of expansion. While there is nothing wrong with this many financial services firms have promised the world yet undelivered on the promises that they made to their clients, causing them to lose money. The current economic situation underscores this lack of follow through which has taken place with in the financial services industry. In response to these different challenges many investors are now searching for those financial services firms that will protect them while providing consistent growth. To find the right firm for your situation requires that you consider a number of different factors.
Do they have a wide variety of different strategies that they can use? Whenever you are dealing with any financial services firm you want to make sure that they have many different strategies that you can use in both bull as well as bear markets to make money. What happens to most people work only with those firms which sound good, when it comes to strategy they have the one standard that they use on virtually all clients, buy and hold. This lack of ideas means that when the bear markets do come you could see sizable losses in your account as prices are cut dramatically.
What will be done to protect you against risk? Whenever you are investing in anything there will always be a certain degree of risk involved. To protect yourself from holding the Enron's of the world requires that you work with a financial services firm that will show you how you can protect yourself against the different forms of risk such as hedging, using sell stops or diversification.
Clearly choosing the right financial services firm can be challenging. However, by making sure that they offer a wide variety of strategies and knowing that that they have different ways to protect you against risk will help you to be able to avoid some of the severe declines which are known to occur during bear market and to participate in the growth associate with bull markets, helping you to have consistent profits.
To learn more about the different ways that you can invest please visit the managing wealth creation website today to claim your free DVD.
Get the information you need about Financial Services such as Asset Protection, Estate Planning and Tax Minimisation.
Article Source: http://EzineArticles.com/?expert=Ray_McCaskey
Yoga Principles Apply to Your Finances, Too
By Ellen Rogin
While I was supposed to be relaxing my mind and focusing on my breath, it occurred to me that important principles in yoga also apply to the world of investing and financial planning. The practice of yoga and the building of healthy finances both require balance through developing strength and flexibility.
• In yoga classes I have learned that extending too far is not smart - it will lead to injury. Similarly, with investing, people who extended their risk tolerances too far (holding too great of a percentage of their investments in stock market investments) are feeling pain now. As it is important to be in tune with your body during exercise, it is important to be aware of your investing comfort level. When the stock market went up every day, many investors mistakenly thought they had a greater ability to tolerate risk than was actually the case.
• People can also stretch themselves too far as it relates to their spending. Pushing the limit of spending can backfire if your income should be reduced due to a job layoff, for example. That larger mortgage you thought you could cover or that big credit card bill you were sure you could pay off is now causing your financial health to be out of balance.
• I have had yoga instructors tell the class that yoga is about our individual experience and that we should not compare ourselves to others in the class. As with yoga, avoiding comparing your financial situation to others may be prudent advice. In the late 90's, those who compared their more conservative investment returns to their friends' returns whose portfolios had high concentrations in technology stocks may have felt that they were missing out. Many of these people decided (at the peak of the market) to make a move to more aggressive investments based upon these comparisons.
• Balance is as important in yoga as it is in investing. In yoga, to stay in a balance position it is good to focus on a point that is not moving. To stay balanced in your financial lives, it is good to focus on your goals and what is important to you in life. Balance in your portfolio (investing in a variety of asset types) often helps to reduce the volatility in your investments.
• It is impossible to get all the mental and physical benefits yoga can provide by going to one class. By incorporating yoga into your daily or weekly routine you will see improvement and experience the benefits. Likewise, you cannot expect to have financial health and reach your goals by rarely paying attention to your financial situation. Instead, set a plan for regular savings, periodic reviews and tracking your progress.
• I enjoy going to yoga class and learning from a good teacher, and I also like to practice on my own at home. I find that a teacher can instruct me to be in a yoga position correctly and safely (so I get the maximum benefit with the least likelihood of getting hurt). I also find that being in a class pushes me further than I would otherwise do on my own, thus I improve more quickly. You may enjoy managing your personal finances on your own. Many people benefit from having a professional financial advisor assist them to make sure they are addressing all the important issues and to help guide and support them in reaching their goals.
• One of the most important things to remember in yoga is to breathe. Breathing helps to calm our minds. With calm minds we can make wise choices. When people are afraid (as many investors currently are) they tend to take quick, shallow breaths. Our brains need oxygen to make good decisions. So, remember breathe in and breathe out fully (then you can open your investment statements). Om.
(C) Ellen Rogin 2009
Ellen Rogin, CPA, CFP®, wealth advisor and prosperity guru, has established a reputation as a nationally- known expert on living a life of success and prosperity.
Ellen is co-author of the book, Great with Money: The Women's Guide to Prosperity. http://www.begreatwithmoney.com
As an entertaining speaker at meetings and conferences, Ellen has inspired audiences with her powerful and insightful presentations, Open for Business: How the Best of the Best Find Success and Great with Money: Thinking Your Way to Prosperity. In these popular talks, Ellen delivers on the message that during challenging economic times, successful people must recognize there are many ways to thrive.
As a woman of experience and entrepreneurial success, Ellen serves on the board of directors for Metropolitan Capital bank, as well as serving as Director of Financial Planning, Strategy and Marketing for the Bank. She is founder and President of Strategic Financial Designs, Inc., an independent life and wealth management firm in Northfield. http://www.sfd-inc.com
Article Source: http://EzineArticles.com/?expert=Ellen_Rogin
While I was supposed to be relaxing my mind and focusing on my breath, it occurred to me that important principles in yoga also apply to the world of investing and financial planning. The practice of yoga and the building of healthy finances both require balance through developing strength and flexibility.
• In yoga classes I have learned that extending too far is not smart - it will lead to injury. Similarly, with investing, people who extended their risk tolerances too far (holding too great of a percentage of their investments in stock market investments) are feeling pain now. As it is important to be in tune with your body during exercise, it is important to be aware of your investing comfort level. When the stock market went up every day, many investors mistakenly thought they had a greater ability to tolerate risk than was actually the case.
• People can also stretch themselves too far as it relates to their spending. Pushing the limit of spending can backfire if your income should be reduced due to a job layoff, for example. That larger mortgage you thought you could cover or that big credit card bill you were sure you could pay off is now causing your financial health to be out of balance.
• I have had yoga instructors tell the class that yoga is about our individual experience and that we should not compare ourselves to others in the class. As with yoga, avoiding comparing your financial situation to others may be prudent advice. In the late 90's, those who compared their more conservative investment returns to their friends' returns whose portfolios had high concentrations in technology stocks may have felt that they were missing out. Many of these people decided (at the peak of the market) to make a move to more aggressive investments based upon these comparisons.
• Balance is as important in yoga as it is in investing. In yoga, to stay in a balance position it is good to focus on a point that is not moving. To stay balanced in your financial lives, it is good to focus on your goals and what is important to you in life. Balance in your portfolio (investing in a variety of asset types) often helps to reduce the volatility in your investments.
• It is impossible to get all the mental and physical benefits yoga can provide by going to one class. By incorporating yoga into your daily or weekly routine you will see improvement and experience the benefits. Likewise, you cannot expect to have financial health and reach your goals by rarely paying attention to your financial situation. Instead, set a plan for regular savings, periodic reviews and tracking your progress.
• I enjoy going to yoga class and learning from a good teacher, and I also like to practice on my own at home. I find that a teacher can instruct me to be in a yoga position correctly and safely (so I get the maximum benefit with the least likelihood of getting hurt). I also find that being in a class pushes me further than I would otherwise do on my own, thus I improve more quickly. You may enjoy managing your personal finances on your own. Many people benefit from having a professional financial advisor assist them to make sure they are addressing all the important issues and to help guide and support them in reaching their goals.
• One of the most important things to remember in yoga is to breathe. Breathing helps to calm our minds. With calm minds we can make wise choices. When people are afraid (as many investors currently are) they tend to take quick, shallow breaths. Our brains need oxygen to make good decisions. So, remember breathe in and breathe out fully (then you can open your investment statements). Om.
(C) Ellen Rogin 2009
Ellen Rogin, CPA, CFP®, wealth advisor and prosperity guru, has established a reputation as a nationally- known expert on living a life of success and prosperity.
Ellen is co-author of the book, Great with Money: The Women's Guide to Prosperity. http://www.begreatwithmoney.com
As an entertaining speaker at meetings and conferences, Ellen has inspired audiences with her powerful and insightful presentations, Open for Business: How the Best of the Best Find Success and Great with Money: Thinking Your Way to Prosperity. In these popular talks, Ellen delivers on the message that during challenging economic times, successful people must recognize there are many ways to thrive.
As a woman of experience and entrepreneurial success, Ellen serves on the board of directors for Metropolitan Capital bank, as well as serving as Director of Financial Planning, Strategy and Marketing for the Bank. She is founder and President of Strategic Financial Designs, Inc., an independent life and wealth management firm in Northfield. http://www.sfd-inc.com
Article Source: http://EzineArticles.com/?expert=Ellen_Rogin
The Financial Aspects of Unemployment
By Carlene Damba
Good things happen over time; however, bad things happen immediately. This is the way life is. Your graduation, wedding, and first child are things that you dream and imagine for years. However, catastrophic events in your life come out of nowhere. Getting laid off from your job is one of those life events that occur immediately. You may have worked for the company all your life and imagined that you would retire from this job. Feelings of self-worth are closely tied to your job. A job can identify who you are. It means that you are breaking away from the past and facing an uncertain future. Not only do you have all the emotional feelings of losing your job but also the financial challenges that you and your family will face. This paper discusses how to survive financially when you are unemployed. It will look at developing a plan, developing a survival budget, and options when you cannot meet your financial obligations.
Developing a Plan
When you lose your job, you may have to put yourself on a financial diet. It is difficult to know how long you will be unemployed. Depending on your job skills, it may take a few weeks to months to find a job. During this time you need to have a plan on how to keep paying your bills.
When you have come up with a financial plan that will get you through, you must have the discipline to stick to it. You will be tempted to cheat from time to time. However, it is imperative that you stick to your plan as closely as possible. You want to make a plan that is flexible and can be changed when your circumstances change. But, you must have the discipline to stick as closely as possible to the financial plan you have created.
Adjust your expectations
Finding a job in this financial environment is not going to be easy. Even if you have a profession that is in high demand, it could take weeks. Your job search plan may look like this (Forefield Advisor (2009): Week One. Send out ten resumes and wait for a phone call. Week Two. Send out ten more resumes and wait some more. Week Three. Send out five resumes for jobs you want and five resumes for jobs that you really don't want. The phone rings but not for a job interview. Week Four. The phone finally rings twice and you have two job interviews. You still should send out three more resumes. Week Five. You have two more interviews and send out five more resumes. You get a call for a second interview for one of the jobs. Week Six. You are hired! Bad news: You can't start for three weeks. As you can see, it can take a few months even if you have developed a successful job searching plan. This is why it is important to develop your financial plan as soon as possible after losing your job.
If you are only out of work a short time, your lifestyle may not have to change drastically. However, if you are unemployed for months, you may have to take drastic measures to survive. Some of the measures might be selling your house, a second car, or take a temporary job. You need to prepare yourself mentally for this.
Preparing a Survival Budget
It is important to remember that losing your job is temporary. The budget you are creating is not going to last forever. When you get a new job, the survival budget can be changed to a more realistic long term lifestyle. Therefore, you need to be careful and make decisions that are not shortsighted. You need to do what you can to survive, but only do what you really have. Do not make decisions out of fear and then regret them later when you get a new job and things are easier.
Start a budget by listing all of your post-employment income and necessary expenses. A survival budget is a bare-bones version of a regular budget. You will want to end up with is an idea of how much income you will need to survive. Eliminate all luxuries expenses and things that you can do without (i.e. movies, eating out, trips, etc.).
Ways to increase your income
One of the first places you should look for income is through unemployment benefits. You will have to meet certain eligibility requirements. You must be involuntarily unemployed, which means that if you quit your job you have no chance of receiving unemployment. However, if you have been laid off or fired (without cause) then you may be able to draw some unemployment benefits. The amount and duration of your check will vary from state to state (Forefield Advisor 2009).
Are you eligible for any severance pay if you were laid off? The amount of the severance will be determined by company policy. You may have the option of receiving a lump-sum payment or a continuation of salary for a set period of time.
If you have planned ahead, you may have an emergency fund set aside with three to six months of your net salary which can help pay your living expenses. Many people are amazed at how fast savings can be depleted; however, it is a great source to help pay for your daily expenses.
You may have credit insurance that will make your bill payments when you are unemployed. This can help with your car and mortgage. If you have any doubt, check with your creditors to see if you have it. However, keep in mind that it may take time to fill out the paperwork and get this benefit started.
If you have been out of work for a longer period of time, you have to resort to taking a part-time or temporary job to supplement your income. This may benefit you in two ways. First, it will ease some of the stress of trying to make your monthly financial obligations. Second, your temporary or part-time job may become permanent. Also, you may be getting additional experience that will help you in your job search.
You may want to have a yard sale. If you look around your house, you will be surprise at how much you own that you really don't need. Make a list of things that you want to sell and list them in order of priority. If you are really desperate, you may want to price things accordingly. However, there may be items that you only want to sell if you get a good price. You may want to use a consignment shop for certain items such as clothing.
If things really become critical, you may want to consider selling your home. It could be a good idea of because you can raise a lot of cash in this way and reduce your monthly payments. It isn't a good short-term solution to raising money because it takes time to sell a house. Any decisions you make should be carefully thought out. You need to consider the true cost of your decision and how much you can actually get out of the deal (Forefield Advisor 2009).
As the very last resort, you can withdraw money from your retirement accounts. This step should be considered only if you are facing bankruptcy. Any money that you withdraw from a tax-deferred retirement will be taxed as ordinary income for the year you take the withdrawal. In addition, you may have to pay a 10% penalty for early withdrawal if you are under the age of 59 1/2. Also, you will lose the advantage of compound interest on the money you withdraw. If you do not replenish the money in your retirement account, you may not be able to retire at the age when you planned to.
Reducing your expenses
You may be able reduce your monthly automobile insurance payment by increasing your deductible. However, if you have an accident, you will have to pay the higher deductible out of your pocket. You should try to keep the amount of the deductible in your savings account. If you cannot put aside this money, you should balance the risk with the benefits of this action.
If you have more than one vehicle, you may want to consider selling one. When you take into account, the monthly payment, gasoline, insurance, and maintenance, you could drastically cut your monthly expenses. If you owe more on the car than it is worth, this option will not work because you will still have to get a loan to make up the difference. Make this decision carefully. Weigh the benefits and risks carefully.
If you are out of work for a long time, consider negotiating with your creditors. If you have good credit, you may find it relatively easy to reduce the interest rates on your credit cards, skip a payment or two on your car loan, or reduce monthly payments temporarily. Remember, you will be in a better negotiating position if you call your creditors before you get behind in your payments. If the creditors are calling you, they may not be as inclined to work with you if you call them and explain your situation. Creditors may or may not work with you; however, it is worth a try. If you need help negotiating with your creditors, you may want to talk with a nonprofit credit counseling organization.
You may be paying for things that you can do without. Consider canceling magazine subscriptions, extra phone services, credit cards you don't use that have an annual fee, health club membership, auto club memberships, cable television, and internet service.
Now that you have drafted a bare-bones budget, post it somewhere where you can use it on a daily basis. It is important that you chart your progress so you can keep on track with expenses.
Options When You Cannot Meet Your Financial Obligations
If you are unable to make your monthly expenses, you have options. However, it is important that you act immediately. Delaying action can make things worse. You could damage your credit history or lose your home.
How You Can Help Yourself
As we have discussed earlier, one way to ease your financial distress is to increase your income. Both you and your spouse should consider increasing your hours or taking a second job.
If you cannot meet your financial obligations, you must cut out every nonessential expenses such as eating out and entertainment expenses. Look for ways to save at the grocery store by buying food on sale and clipping coupons.
You may also consider consolidating debts. This is a great way to catch up on overdue accounts and start fresh with a single creditor. If may can extend the repayment period and lower the monthly payment.
Chapter 7 Bankruptcy
If you income is less than a certain amount, you may be able to file bankruptcy under Chapter 7. When filing Chapter 7, you can keep exempt assets, but non-exempt property is sold and the proceeds are distributed to pay creditors. The remaining debts are discharged. This gives you a chance to start over fresh. To find out if you qualify, contact a bankruptcy attorney in the city where you live. Keep in mind that a bankruptcy stays on your credit for a number of years and will have an impact on you be able to borrow money and the interest rate that you will be charged.
When Spending is an addiction
Some people's problem with money comes from a compulsive addiction behavior. They have a controllable urge to spend money. Compulsive debtors can seek help through Debt Anonymous, which is a twelve step problem modeled after Alcoholics Anonymous. If you have a problem spending money and are ready to admit that you are powerless over your problems, you may want to attend an open meeting and learn more about it (Forefield 2009).
Summary
Because of these economic times, many people are dealing with the trauma of unemployment. Although this experience can be painful, knowing what to expect and using proactive behavior can make unemployment easier. Having a plan, making a survival budget, and planning for the what ifs of running out of money can help you survive. However, planning for the unexpected before it happens, it the best way of handling any financial pitfalls that come along. Developing a financial plan where you are saving for emergencies and setting financial goals is the best way of getting through any financial pitfalls.
I am here to help you in any way possible. You can also contact me for a free unemployment checklist to help you organize and prepare for the period of unemployment. Please contact me by email at cdamba@aol.com. You can also call me at 336-854-8500 and I will try to help answer any questions that you may have.
Carlene Damba runs a full service financial advisory company creating financial plans for her clients and helping them plan for such events as education for children and retirement. She is also certified to work with spouses and their attorneys, and/or mediators, assisting on the equitable distribution process of divorce.
Carlene knows that most clients have concerns about 2 things: their financial future and selecting the right advisor. Choosing a financial advisor with ethics and integrity is a vital part of getting a sense of peace about a person's financial future. This is why Carlene has created a business of integrity and transparency for her clients. She says, I have two goals for every client. First, I want to be the kind of financial planner whose integrity and character would be good enough for my own mother. And second, I want to help each client to create enough wealth so that they have the resources to live a life with no regrets the life they always dreamed about.
Bibliography Forefield Advisor. (2009). Unemployment, Retrieved May 7, 2009, from http://www.forefield.com
Carlene has been in the financial industry for 10 years and a financial advisor for five years. She creates financial plans for her clients and helps them plan for such events as education for children and retirement. She is also certified to work with spouses and their attorneys, and/or mediators, assisting on the equitable distribution process of divorce.
She has over 15 years of experience in helping foreign companies make their United States business operations more efficient and 5 years experience as a paralegal in family law, including 2 years in Taegu, Korea for the US Army.
She earned her MBA from the University of Phoenix and Bachelors of Science from High Point University.
She is married and has 2 children and 2 grandchildren. She plays the piano for her church and loves to needlepoint and quilt in her spare time.
Article Source: http://EzineArticles.com/?expert=Carlene_Damba
Good things happen over time; however, bad things happen immediately. This is the way life is. Your graduation, wedding, and first child are things that you dream and imagine for years. However, catastrophic events in your life come out of nowhere. Getting laid off from your job is one of those life events that occur immediately. You may have worked for the company all your life and imagined that you would retire from this job. Feelings of self-worth are closely tied to your job. A job can identify who you are. It means that you are breaking away from the past and facing an uncertain future. Not only do you have all the emotional feelings of losing your job but also the financial challenges that you and your family will face. This paper discusses how to survive financially when you are unemployed. It will look at developing a plan, developing a survival budget, and options when you cannot meet your financial obligations.
Developing a Plan
When you lose your job, you may have to put yourself on a financial diet. It is difficult to know how long you will be unemployed. Depending on your job skills, it may take a few weeks to months to find a job. During this time you need to have a plan on how to keep paying your bills.
When you have come up with a financial plan that will get you through, you must have the discipline to stick to it. You will be tempted to cheat from time to time. However, it is imperative that you stick to your plan as closely as possible. You want to make a plan that is flexible and can be changed when your circumstances change. But, you must have the discipline to stick as closely as possible to the financial plan you have created.
Adjust your expectations
Finding a job in this financial environment is not going to be easy. Even if you have a profession that is in high demand, it could take weeks. Your job search plan may look like this (Forefield Advisor (2009): Week One. Send out ten resumes and wait for a phone call. Week Two. Send out ten more resumes and wait some more. Week Three. Send out five resumes for jobs you want and five resumes for jobs that you really don't want. The phone rings but not for a job interview. Week Four. The phone finally rings twice and you have two job interviews. You still should send out three more resumes. Week Five. You have two more interviews and send out five more resumes. You get a call for a second interview for one of the jobs. Week Six. You are hired! Bad news: You can't start for three weeks. As you can see, it can take a few months even if you have developed a successful job searching plan. This is why it is important to develop your financial plan as soon as possible after losing your job.
If you are only out of work a short time, your lifestyle may not have to change drastically. However, if you are unemployed for months, you may have to take drastic measures to survive. Some of the measures might be selling your house, a second car, or take a temporary job. You need to prepare yourself mentally for this.
Preparing a Survival Budget
It is important to remember that losing your job is temporary. The budget you are creating is not going to last forever. When you get a new job, the survival budget can be changed to a more realistic long term lifestyle. Therefore, you need to be careful and make decisions that are not shortsighted. You need to do what you can to survive, but only do what you really have. Do not make decisions out of fear and then regret them later when you get a new job and things are easier.
Start a budget by listing all of your post-employment income and necessary expenses. A survival budget is a bare-bones version of a regular budget. You will want to end up with is an idea of how much income you will need to survive. Eliminate all luxuries expenses and things that you can do without (i.e. movies, eating out, trips, etc.).
Ways to increase your income
One of the first places you should look for income is through unemployment benefits. You will have to meet certain eligibility requirements. You must be involuntarily unemployed, which means that if you quit your job you have no chance of receiving unemployment. However, if you have been laid off or fired (without cause) then you may be able to draw some unemployment benefits. The amount and duration of your check will vary from state to state (Forefield Advisor 2009).
Are you eligible for any severance pay if you were laid off? The amount of the severance will be determined by company policy. You may have the option of receiving a lump-sum payment or a continuation of salary for a set period of time.
If you have planned ahead, you may have an emergency fund set aside with three to six months of your net salary which can help pay your living expenses. Many people are amazed at how fast savings can be depleted; however, it is a great source to help pay for your daily expenses.
You may have credit insurance that will make your bill payments when you are unemployed. This can help with your car and mortgage. If you have any doubt, check with your creditors to see if you have it. However, keep in mind that it may take time to fill out the paperwork and get this benefit started.
If you have been out of work for a longer period of time, you have to resort to taking a part-time or temporary job to supplement your income. This may benefit you in two ways. First, it will ease some of the stress of trying to make your monthly financial obligations. Second, your temporary or part-time job may become permanent. Also, you may be getting additional experience that will help you in your job search.
You may want to have a yard sale. If you look around your house, you will be surprise at how much you own that you really don't need. Make a list of things that you want to sell and list them in order of priority. If you are really desperate, you may want to price things accordingly. However, there may be items that you only want to sell if you get a good price. You may want to use a consignment shop for certain items such as clothing.
If things really become critical, you may want to consider selling your home. It could be a good idea of because you can raise a lot of cash in this way and reduce your monthly payments. It isn't a good short-term solution to raising money because it takes time to sell a house. Any decisions you make should be carefully thought out. You need to consider the true cost of your decision and how much you can actually get out of the deal (Forefield Advisor 2009).
As the very last resort, you can withdraw money from your retirement accounts. This step should be considered only if you are facing bankruptcy. Any money that you withdraw from a tax-deferred retirement will be taxed as ordinary income for the year you take the withdrawal. In addition, you may have to pay a 10% penalty for early withdrawal if you are under the age of 59 1/2. Also, you will lose the advantage of compound interest on the money you withdraw. If you do not replenish the money in your retirement account, you may not be able to retire at the age when you planned to.
Reducing your expenses
You may be able reduce your monthly automobile insurance payment by increasing your deductible. However, if you have an accident, you will have to pay the higher deductible out of your pocket. You should try to keep the amount of the deductible in your savings account. If you cannot put aside this money, you should balance the risk with the benefits of this action.
If you have more than one vehicle, you may want to consider selling one. When you take into account, the monthly payment, gasoline, insurance, and maintenance, you could drastically cut your monthly expenses. If you owe more on the car than it is worth, this option will not work because you will still have to get a loan to make up the difference. Make this decision carefully. Weigh the benefits and risks carefully.
If you are out of work for a long time, consider negotiating with your creditors. If you have good credit, you may find it relatively easy to reduce the interest rates on your credit cards, skip a payment or two on your car loan, or reduce monthly payments temporarily. Remember, you will be in a better negotiating position if you call your creditors before you get behind in your payments. If the creditors are calling you, they may not be as inclined to work with you if you call them and explain your situation. Creditors may or may not work with you; however, it is worth a try. If you need help negotiating with your creditors, you may want to talk with a nonprofit credit counseling organization.
You may be paying for things that you can do without. Consider canceling magazine subscriptions, extra phone services, credit cards you don't use that have an annual fee, health club membership, auto club memberships, cable television, and internet service.
Now that you have drafted a bare-bones budget, post it somewhere where you can use it on a daily basis. It is important that you chart your progress so you can keep on track with expenses.
Options When You Cannot Meet Your Financial Obligations
If you are unable to make your monthly expenses, you have options. However, it is important that you act immediately. Delaying action can make things worse. You could damage your credit history or lose your home.
How You Can Help Yourself
As we have discussed earlier, one way to ease your financial distress is to increase your income. Both you and your spouse should consider increasing your hours or taking a second job.
If you cannot meet your financial obligations, you must cut out every nonessential expenses such as eating out and entertainment expenses. Look for ways to save at the grocery store by buying food on sale and clipping coupons.
You may also consider consolidating debts. This is a great way to catch up on overdue accounts and start fresh with a single creditor. If may can extend the repayment period and lower the monthly payment.
Chapter 7 Bankruptcy
If you income is less than a certain amount, you may be able to file bankruptcy under Chapter 7. When filing Chapter 7, you can keep exempt assets, but non-exempt property is sold and the proceeds are distributed to pay creditors. The remaining debts are discharged. This gives you a chance to start over fresh. To find out if you qualify, contact a bankruptcy attorney in the city where you live. Keep in mind that a bankruptcy stays on your credit for a number of years and will have an impact on you be able to borrow money and the interest rate that you will be charged.
When Spending is an addiction
Some people's problem with money comes from a compulsive addiction behavior. They have a controllable urge to spend money. Compulsive debtors can seek help through Debt Anonymous, which is a twelve step problem modeled after Alcoholics Anonymous. If you have a problem spending money and are ready to admit that you are powerless over your problems, you may want to attend an open meeting and learn more about it (Forefield 2009).
Summary
Because of these economic times, many people are dealing with the trauma of unemployment. Although this experience can be painful, knowing what to expect and using proactive behavior can make unemployment easier. Having a plan, making a survival budget, and planning for the what ifs of running out of money can help you survive. However, planning for the unexpected before it happens, it the best way of handling any financial pitfalls that come along. Developing a financial plan where you are saving for emergencies and setting financial goals is the best way of getting through any financial pitfalls.
I am here to help you in any way possible. You can also contact me for a free unemployment checklist to help you organize and prepare for the period of unemployment. Please contact me by email at cdamba@aol.com. You can also call me at 336-854-8500 and I will try to help answer any questions that you may have.
Carlene Damba runs a full service financial advisory company creating financial plans for her clients and helping them plan for such events as education for children and retirement. She is also certified to work with spouses and their attorneys, and/or mediators, assisting on the equitable distribution process of divorce.
Carlene knows that most clients have concerns about 2 things: their financial future and selecting the right advisor. Choosing a financial advisor with ethics and integrity is a vital part of getting a sense of peace about a person's financial future. This is why Carlene has created a business of integrity and transparency for her clients. She says, I have two goals for every client. First, I want to be the kind of financial planner whose integrity and character would be good enough for my own mother. And second, I want to help each client to create enough wealth so that they have the resources to live a life with no regrets the life they always dreamed about.
Bibliography Forefield Advisor. (2009). Unemployment, Retrieved May 7, 2009, from http://www.forefield.com
Carlene has been in the financial industry for 10 years and a financial advisor for five years. She creates financial plans for her clients and helps them plan for such events as education for children and retirement. She is also certified to work with spouses and their attorneys, and/or mediators, assisting on the equitable distribution process of divorce.
She has over 15 years of experience in helping foreign companies make their United States business operations more efficient and 5 years experience as a paralegal in family law, including 2 years in Taegu, Korea for the US Army.
She earned her MBA from the University of Phoenix and Bachelors of Science from High Point University.
She is married and has 2 children and 2 grandchildren. She plays the piano for her church and loves to needlepoint and quilt in her spare time.
Article Source: http://EzineArticles.com/?expert=Carlene_Damba
Financial Spread Betting - Top Five Tips
By SS Smith
Start out small
Financial Spread Betting is like anything else. You need to get used to it. And like everything else, you are more likely to make mistakes when you are a novice. So take that pain out of the learning curve by starting small. True, your wins won't be so big, but then neither will your losses. As your understanding and confidence grows you can increase the size of your bets. But remember the golden rule. You only ever bet what you can afford to lose.
Make money on both the ups and downs
This may sound obvious, but it is so often overlooked. Investors by their very nature look for winners. It's the 'up' mentality. And that's right if you are an ordinary equity investor. After all, it's very difficult for the average share trader to sell 'short'. But one of the key things with Financial Spread Betting is that you can bet on a price falling as easily as you can bet on a price rising. Twice the opportunity to make money!
Cut your losses and ride your winners
This really is at the heart of most successful financial spread betting strategies. It's also basic common sense but you'd be surprised how often it isn't applied. Key to getting this right is to use the stop loss facility in your account. Set your stop loss at the outset of each trade to the maximum you would be comfortable to lose. Many traders choose to set it at 2 or 3% of their total account balance. If the trade goes against you, it gets automatically closed out and your loss is fixed. If the trade goes in your favor, keep moving the stop loss up. When it finally turns your stop loss will then lock in most of your profit
Give it a rest
You can get too involved. Sometimes it helps if you stop trading altogether for a short while. Without being tied into open positions you can analyze your recent performance and decisions with the clarity of hindsight. How is your return looking? Would you have made any different decisions with hindsight? Learn from both your successes and also your failures. Write down your learnings and start afresh.
Don't rely on technology too much
This is a personal one I admit. Some people love their software systems, and their fancy algorithms, whereas others prefer to follow fundamentals or the market sentiment. My point really is that even if you love your software derived bets, please make sure you follow the other basics outlined above. That way you can at least eliminate the potential on the downside.
Stuart Smith writes widely on Financial Spread Betting subjects and is the owner of leading website http://www.financialbetting.co.uk
Article Source: http://EzineArticles.com/?expert=SS_Smith
Start out small
Financial Spread Betting is like anything else. You need to get used to it. And like everything else, you are more likely to make mistakes when you are a novice. So take that pain out of the learning curve by starting small. True, your wins won't be so big, but then neither will your losses. As your understanding and confidence grows you can increase the size of your bets. But remember the golden rule. You only ever bet what you can afford to lose.
Make money on both the ups and downs
This may sound obvious, but it is so often overlooked. Investors by their very nature look for winners. It's the 'up' mentality. And that's right if you are an ordinary equity investor. After all, it's very difficult for the average share trader to sell 'short'. But one of the key things with Financial Spread Betting is that you can bet on a price falling as easily as you can bet on a price rising. Twice the opportunity to make money!
Cut your losses and ride your winners
This really is at the heart of most successful financial spread betting strategies. It's also basic common sense but you'd be surprised how often it isn't applied. Key to getting this right is to use the stop loss facility in your account. Set your stop loss at the outset of each trade to the maximum you would be comfortable to lose. Many traders choose to set it at 2 or 3% of their total account balance. If the trade goes against you, it gets automatically closed out and your loss is fixed. If the trade goes in your favor, keep moving the stop loss up. When it finally turns your stop loss will then lock in most of your profit
Give it a rest
You can get too involved. Sometimes it helps if you stop trading altogether for a short while. Without being tied into open positions you can analyze your recent performance and decisions with the clarity of hindsight. How is your return looking? Would you have made any different decisions with hindsight? Learn from both your successes and also your failures. Write down your learnings and start afresh.
Don't rely on technology too much
This is a personal one I admit. Some people love their software systems, and their fancy algorithms, whereas others prefer to follow fundamentals or the market sentiment. My point really is that even if you love your software derived bets, please make sure you follow the other basics outlined above. That way you can at least eliminate the potential on the downside.
Stuart Smith writes widely on Financial Spread Betting subjects and is the owner of leading website http://www.financialbetting.co.uk
Article Source: http://EzineArticles.com/?expert=SS_Smith
Friday, July 24, 2009
Achieving Financial Independence
By: Wesley Watkis
When it comes to financial independence, it often seems that there are certain members of society who just have a better chance of succeeding than everyone else. In fact, there is a anecdote that I would like to share with you that says if you take a group of millionaires; remove all of their knowledge, wealth, and experience; and stick them in the middle of a desert with nothing but a gallon of water, almost every single one of them will be back to millionaire status within 10 years. While it is hardly ethical or scientific to actually put this theory to a test, the basic premise is pretty reasonable: the wealthy are wealthy because finances, investments, and making money are what they're good at doing.
Financial Independence: Your Goals, Your Life
While it may not be your life goal to become a millionaire, it would be difficult to convince anyone that being financially independent or comfortably wealthy wouldn't be a nice break from the routine of everyday life. Yet few people really take advantage of what they currently have to try and amass the kind of wealth that will allow them an early retirement or that beach house in the Grand Caymans.
The primary culprit? Not having solid, attainable fiscal goals.
This may seem oversimplified at first, but the fact is, most people view financial investments or long-term financial planning as something that can wait or that can be set aside when everyday life gets in the way.
The best financial advisors and investment firms, however, will tell you that the first thing you can do to start making the kinds of decisions that will create a solid portfolio of wealth for the future is to sit down and really outline what it is you want and what steps you can take to get there.
For example, imagine a family whose three children are only a year apart in age. They're young right now, but the parents one day hope to see all of them in the college of their dreams. There are a number of steps that need be taken to make that goal a reality, and not all of them have to do with stepping up the piano lessons or moving to a neighborhood with the best public schools. In order to reasonably put three kids through college, it is best to create a plan with actual, measurable results at the end. Saving whatever is left at the end of the month is a good first step, but unless you sit down and look at what kinds of investments that money needs to go into to get the necessary percentage increase in 15 years, you aren't following a financial plan - you're just saving money.
The Bottom Line
Understanding that difference - the difference between saving money and following a financial plan - is what really separates the millionaires from the rest of the population.
The good news is, in today's world, you have serveral resources that can help you move from saving to creating an investment plan. Thanks to financial advisors and other professional firms dedicated to turning fiscal dreams into realities, everyone can tap into the knowledge it takes to move - if not quite to millionaire status - as close as necessary to live the life you deserve.
Article Source: http://www.articlesbase.com/finance-articles/achieving-financial-independence-1063261.html
When it comes to financial independence, it often seems that there are certain members of society who just have a better chance of succeeding than everyone else. In fact, there is a anecdote that I would like to share with you that says if you take a group of millionaires; remove all of their knowledge, wealth, and experience; and stick them in the middle of a desert with nothing but a gallon of water, almost every single one of them will be back to millionaire status within 10 years. While it is hardly ethical or scientific to actually put this theory to a test, the basic premise is pretty reasonable: the wealthy are wealthy because finances, investments, and making money are what they're good at doing.
Financial Independence: Your Goals, Your Life
While it may not be your life goal to become a millionaire, it would be difficult to convince anyone that being financially independent or comfortably wealthy wouldn't be a nice break from the routine of everyday life. Yet few people really take advantage of what they currently have to try and amass the kind of wealth that will allow them an early retirement or that beach house in the Grand Caymans.
The primary culprit? Not having solid, attainable fiscal goals.
This may seem oversimplified at first, but the fact is, most people view financial investments or long-term financial planning as something that can wait or that can be set aside when everyday life gets in the way.
The best financial advisors and investment firms, however, will tell you that the first thing you can do to start making the kinds of decisions that will create a solid portfolio of wealth for the future is to sit down and really outline what it is you want and what steps you can take to get there.
For example, imagine a family whose three children are only a year apart in age. They're young right now, but the parents one day hope to see all of them in the college of their dreams. There are a number of steps that need be taken to make that goal a reality, and not all of them have to do with stepping up the piano lessons or moving to a neighborhood with the best public schools. In order to reasonably put three kids through college, it is best to create a plan with actual, measurable results at the end. Saving whatever is left at the end of the month is a good first step, but unless you sit down and look at what kinds of investments that money needs to go into to get the necessary percentage increase in 15 years, you aren't following a financial plan - you're just saving money.
The Bottom Line
Understanding that difference - the difference between saving money and following a financial plan - is what really separates the millionaires from the rest of the population.
The good news is, in today's world, you have serveral resources that can help you move from saving to creating an investment plan. Thanks to financial advisors and other professional firms dedicated to turning fiscal dreams into realities, everyone can tap into the knowledge it takes to move - if not quite to millionaire status - as close as necessary to live the life you deserve.
Article Source: http://www.articlesbase.com/finance-articles/achieving-financial-independence-1063261.html
10 Easy Ways to Organize Your Business Finances
by Abdul Tunio
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
http://thousandarticles.freehostia.com/finance/
Article Source: http://EzineArticles.com/?expert=Abdul_Tunio
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
http://thousandarticles.freehostia.com/finance/
Article Source: http://EzineArticles.com/?expert=Abdul_Tunio
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