Personal Finance Views

Friday, September 6, 2019

What are the Benefits of Money Management?
September 06, 20190 Comments
We all manage money. Does that mean we all know a thing or two about money management? Not really. Money management is an art that people can master if and only if they see money from an objective frame of reference and are damn serious about it. 

Every adult needs to learn money management. How they can learn it is a discussion best saved for some other post. In this post, I would like to demonstrate the benefits of managing money effectively. Some of the benefits are obvious while some are not so much.

Control over your finances

If you excel in money management, you gain control over your financial life. As strange as it may sound, most people don’t have control over their finances. They either spend extravagantly and max out their credit card or spend too little and waste their present for the sake of an imagined future. None of these is money management. True money management skills - when acquired - help you sleep calmly at night knowing your finances are perfectly in order. 

Money Management

Explore investment opportunities

For people living from paycheck to paycheck, investment is a lofty word. But people who have their finances under control, know that it’s not a distant dream. A dream for sure, but an achievable one. 

Earning money is an important aspect of money management. People who take money management seriously put extra emphasis on earning money. What better way to earn money than discovering new investment destinations and diving headlong? Money management encourages one to do that.

That being said, one must be able to discern true investment opportunities and not mistake them with get rich quick type scams. As mentioned already, mastering money management skills gives one the ability to spot the difference. Hence, those skills are essentials. 

Tracking your money

There are plenty of software online - both free and paid - to help you in this endeavor. With those software, money management becomes as easy as taking a walk in the park. 

Most people who fail at budgeting report their inability to track money. When all the earnings, no matter how small, and all the expenses, regardless of how large or small they are are tracked and listed in the monthly budget, one gets a 360° view of their financial lives. Tracking earnings and expenses is therefore important.

When you use custom software, you don’t have to create separate headings for your earnings and expenses as these are among the basic features of the software. By spending a little bit extra i.e. signing up for a premium plan, you can avail more robust features sorting income types and expense types, alert and notification on earnings and expenses, and more.

Early retirement, made possible

Early retirement is not a fad; it’s not humblebrag of a few lucky ones either. A lot of people are retiring early in their mid-40s thanks to their efficient money management skills.

Money management helps one set a savings target. We often set targets ourselves. The problem is, targets fixed by us are either unrealistic or too easy to achieve. When you inculcate money management, you learn to set achievable targets. Insights retrieved from monthly budget can make it easy. 

Next is meeting those targets. At this point, a bit of self-control is advised. Even if your heart desires to splurge on expensive stuff, spend carefully. A diverse investment portfolio is more than necessary if you hope to retire early. Find a consultant and get ideas. However, don’t depend too much on them. Take their advice but don’t blindly follow those advice. 

Handle credit better

A lot of people in the United States suffer from debt. The country’s cumulative debt is standing at an all time high of $21 trillion. Like many Americans, your finances look bleak unless you have a great credit score and are used to handle your credit card like a responsible adult.

Strategies around fixing your credit must start with evaluating your credit report. The score assigned on your credit report is called FICO score. A FICO score lower than 650 is bad. It limits your chances of getting a loan from a reputed lender. Additionally, you cannot bargain for a favorable premium rate with a low score.

Handling credit is all about improving your existing credit score and managing your card better. Money management skills prepare you for this. 

Reap all the benefits

I sincerely hope that you become an expert at money management and reap all the benefits discussed here. That being said, money management is more like a habit. Like every other habit, sticking to it can greatly benefit you while deviating from it can be risky for you. So take time and make yourself firm and determined. And then start managing money.
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Wednesday, November 28, 2018

Why not try living on less money?
November 28, 20180 Comments
The paycheck we receive from our job is the money we use to live on.  Some of us put a certain percentage into a savings account so we are prepared for an emergency or we might be saving to buy a home, a new car or to take a nice vacation.  There are also those who live from one paycheck to the next and never have a savings account at any time during their life time.  But when we want to make a change in our finances, we can choose to live on less and that means cutting back on those things we can really live without.

frugal living

How this is done is specific to each person.  Some can stop eating out as often, some might change where they shop and other might use the internet to compare prices on something they need before they buy.  It is also possible for those who have a phone that supports apps to use one or a few of the many finance apps that are available today.  There are many to choose from and they range from making a budget, to a debt payoff planner to an app that allows you to track the incoming and outgoing of your accounts.  If this sounds like something you want to try, or you have friends who have raved about how a particular apps helped them, you can go online and find the one that fits your needs and your budget.

When you find ways to live on less money, you will have extra cash to put toward your credit cards, to take that much needed vacation or maybe you want to invest some of your money so you have another form of income.  It is easy to think that the money we make is all used up for our lifestyle but believe it or not, once you start looking, it is easy to find many areas in your life where less is better.  This might be taking public transportation when you can which will save you on the cost of fuel and the cost of parking.  A programmable thermostat will lower your energy bill and when you shop at thrift stores, you also save on the cost of clothes.
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Thursday, November 15, 2018

How to Diversify Your Freelance Income
November 15, 20180 Comments
As a freelancer, one of the main worries is what happens if I can’t find enough clients to pay the bills, or what if my clients are late paying me? The lack of a regular ongoing income can cause sleepless nights and no end of stress. 

This is why many freelancers look to diversify their income away from just one source – there are many options when you are working for yourself, to take on other roles and responsibilities – you are not just limited to one way of working. 

Here are few ways to help diversify as a freelancer: 

1. Regular clients 

Most freelancers rely on regular clients to provide their monthly income but it can be hit and miss as clients come and go for any number of reasons. However, you can try offering a range of services, for example, offer package deals where they pay each month for a certain number of hours, to help ensure a more regular income, rather than only offering one-off services. 

making money online

You can also offer add-on or bolt-on services – if they take up one service with you, you can add on another one at a discount. There are many ways to diversify how you bring in new clients – try a new niche area or offer a new service. 

2. Sell actual products online

Another option for freelancers is to get into selling products online. There are many options for doing this now through platforms like Amazon, EBay and Etsy, or by setting up your own online shop on a platform like Spotify. 

You can buy an online shop and set it up to sell and distribute products all around the world and with drop shipping systems you don’t even have to store any of the products. You will need to spend time promoting and marketing your store but the rest of the process can be virtually automatic. 

You can even set up a limited company for this and run it alongside your freelance career.

3. Sell digital products

Another huge growth area is the sale of digital products – if you are a freelancer presumably you already have an area of expertise so you can create digital products including eBooks, webinars, and online courses and sell these as another income stream. 

As they are digital you can just sell them over and over again without too much effort once they have been created and marketed. Think about your skills and how they might be of use to other people and then create your own digital products. 

4. Become a coach or a consultant

Again, you can use your existing expertise to become a consultant or coach and advise other people who might need your help and experience. As an already established authority you can charge for consulting, or speak at events, and promote yourself as the go-to expert in your business area. 

This will provide another source of income as well as raising the profile of your freelance business, potentially bringing in more and new clients to you as well so it’s a double win-win. 

5. Become a public speaker

Why not look for public speaking slots at events in your particular industry area, to help boost your profile and to generate another source of income. These types of events are always looking for expert speakers and will often pay you for your time so could create another income stream. 

6. Have a side hustle

If your freelance business is your main source of income why not set up a side hustle smaller business which helps to bring in more income, ideally one which doesn't require a huge amount of work, perhaps a small online sales business, or something related to what you do already. If you take wedding photos, you could run an online shop offering wedding accessories for example. 

Setting up as a freelancer is an exciting venture in itself but if you really want to protect your earnings and make sure you never find yourself without an income, then it’s important to diversity and have numerous income streams. 

The good news is with the internet it’s easier than ever to set up multiple online income streams from online shops to selling digital products, there are many choices for creating several diverse income streams for you.

As an expert in your freelance field you can also add streams to your business which help to set you up as the expert in your niche, meaning not only will you get extra income but you can also enhance your own business reputation at the same time. 

Being a freelancer means you are free to work however you want, whenever you want so take advantage of that freedom and diversify your income beyond just taking payments from clients, to all kinds of interesting and creative ways of making extra money and ensuring a regular income every single month. 
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Tuesday, August 28, 2018

How To Deal With The Problem Of Failure Of Payment Of Debt
August 28, 20180 Comments
The need for loan or debt can come up at any point of your life. It is very easy to get the loans. It is even easier to run out of the money to pay the loan. However, the time after that will not prove to be easy. When you face a financial crisis and fail in paying your debt, then there are some realistic steps that you need to take. You need to accept that you are unable to pay the debt and that is a problem. Also, prepare yourself to face the consequences and to get out of the problem in a proper manner.

debt payment

The development of budget

The first step that you need to take is to ensure that you have a properly planned budget. You need to note down those aspects which are your expenses. In this regard, there can be two divisions. In one division, you need to list those things which have the fixed payment, like the various loans. In the second part, you need to list the other expenses like medical bills, personal expense, etc. After getting the list of the expense, you need to have a proper knowledge on your income sources. Find out each and every source from which you can generate a periodical income. Then you have to compare your income and your expense.

The process of consolidation

When you are at your budget’s end, then taking the help of debt consolidation can be a good option. In this process, one single no credit check loan is taken from a loan provider to pay off all the other debts. In this kind of loan, you need to put up your house as the collateral. However, you have to be sure that you can pay off this loan; otherwise you will lose your house. The interest rate in this kind of loan is higher than the others. However, it can prove to be beneficial in your existing financial crunch.

Decide cleverly

You need to have a talk with your creditors about the credit terms, when you understand that you are unable to pay the loan amount. You need to ask your creditors to set such a credit term which will provide you with some time, to repay the loan. You need to do this before your case is passed on to the credit collectors. The dealing with the debt collectors is not at all a pretty experience. Also, if you have taken a loan against your car, then selling the car and paying off the debt will be advisable. If you keep your car, then your creditor can posses it and upon your failing of payment they can sell it by themselves.

Summing up

The financial crunch is a phase and it will soon pass. When you plan in a proper way, then you can get out of the problem of debt in an easy manner. Your last resort can be the aspect of bankruptcy, to get out from the sticky financial situation. However, you need to try the other ways of debt management before you declare yourself to be bankrupt.
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Thursday, August 16, 2018

Ways to Get Your Bank Loan Approved Easily
August 16, 20180 Comments
In the modern times most people have to take loan to fulfill their wants, and it is not always easy to fulfill the formalities, especially in the current economic situation. 

The loans can be availed for purchasing a house or for renovating it, taking a new car, or for paying student college fees. All these things require a large investment for which the consumers have to take loan with bad credit  as few people can save large amounts of money to buy things with their own funds.

banking

As for fulfilling such requirements, it is very hard to qualify for taking loans. Firstly, you have to fulfill many requirements for getting eligible of taking loans. These requirements are like a borrower should be at least 18 years of age, should be a citizen of the United States, should hold a permanent job, should have an appropriate and active checking account. Once they fulfill these requirements then its turn for the approval criteria which they have to cross for getting loans. These approval criteria consist of a minimum credit score, which a person should have according to the lender and he should have sufficient income by which lender can see that he has a repayment capacity for loans. 

Now days it is not easy for a person to qualify for bank loans because of the bad market conditions. There are many customers who fail to get approval for loans because of their bad credit score

Here are 5 steps by which you can assure that you loans approval gets passed by your bank: 

1. Understand your preferences

The very first thing which you should know is the actual amount of money which you require as loans. Don’t take unnecessary large amount of loan as it will increase your problem. Once you know what amount you need for a loan, and then look for lenders online and their terms and condition. If you are taking a loan for anything specific like car, personal, mortgage, then looks for the best deal available. To find the best deal, compare offers of loan from different companies and go for the company which is offering you the best interest rate with low APR and processing fees and easy repayment method. Make a proper repayment plan for your loan and try to pay off your loan as soon as possible. 

2. Ask questions

Once you decide to take cash loans no credit check and you select your lender then meet them directly and ask questions related to the requirement of documents and eligibility criteria as different lenders have different terms and conditions. Once all details are verified and lender is ready to give you the loan, then ask them for additional discounts which they may give if you convince them that you will be a good borrower and will pay the entire loan amount on time without any default payments. You can convince your lenders for all this by showing them a proper repayment plan. 

3. Know your limitations

When you decide about taking the loan, then make a proper plan for repaying your loan and manage your finances properly that you can afford to pay off the loan amount with all your expenses. Ask for the minimum credit score required by your lender and then get your credit report from all the three major credit reporting agencies and if you don’t fit to the minimum requirement of lenders than take time to improve your credit score before you apply for loans again. Even look for the errors in your reports which might be because of the credit reporting agencies. If you find any such mistake, then submit an application with supporting documents as proofs that they made errors in your report and then ask them to rectify your report and increase your credit score. 

4. Create a checklist

Once you get all the necessary documents which is required for applying for a loan, then collect all these documents from various offices and from your employers, banks and make a proper file and then go for the loan applications, if you go with incomplete documents then your loan might get denied by the lenders. 

5. Have the right expectations

Once you make up your mind that you need to take loans, and then you have to first look for the lenders who can offer the best deals for your loan. Once you decide the lenders, and then ask them for all documents which are required for loans. Get all your documents in order before you apply for loans. Once the processing of your loan will start, find out about the terms and conditions which you don’t get it and get clarity about all the clauses of your loan contract. You need to specify the reason behind taking loans and you need to convince your lender with your repayment plan otherwise he will charge you high interest rate on the loan amount. Even you can get a lower interest rate for your loan if you get ready to secure your loan with any collateral. If a collateral is pledged with the lender then he will lower the interest rate as there is no risk of losing his money because he has the collateral by which he can recover the loan amount after selling it in case of default payments by the borrower. 
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