Archive for the Money Category

August Funding Highlight the Dangers of Untrustworthy Lenders

By on May 17, 2019

Finding a trustworthy lender can be a difficult proposition. Borrowers should follow a concrete list of guidelines which will tell them whether the lender is above board before initiating the loan. When working with an untrustworthy lender, borrowers’ credit scores and financial reputation can be damaged, leading to future problems with getting loans later on. August Funding offers 9 ways to tell whether your lender is disreputable and will not help you achieve your business goals.


1. Compare Lenders and Terms

Before borrowing money, it is smart to contact a variety of lenders and find out about their pros and cons. A reputable lender will gladly give you their terms and will not pressure you into taking a loan on the spot. Watch out for companies that give you the hard sell and push you into financial terms you are not ready to accept. Beware of any language that states that the loan is only offered for a limited time. These are pressure tactics that can cause an artificial sense of urgency.

Some of the criteria that you should study are the credit score required, the payment schedule, the amount of collateral required to secure the loan, the length of the terms of repayment, and whether it is possible to suspend payments if there are any financial problems with your company.


2. Watch Out for Changes in Terms

If your lender wants to change the terms of your loan, that is a serious red flag that you are dealing with an unscrupulous company. A good lender will adhere to the conditions that are originally put forth. If a lender wants to change the terms of repayment right before the deal is signed, that tells a borrower that they should not do business with this company.


3. Constantly Suggests Larger Loans

When borrowing money, it is crucial to live within your means. Borrowing more than you need means that the lender will be able to reap more benefits from fees and interest charges. Give your business to lenders that respect the amount of money you are willing to borrow without trying to push you into their own terms.


4. Suggesting That You Lie about Income

If your business does not make the revenue needed to receive the loan, bad lenders may suggest that you inflate your income on the application. This can get you into trouble if you are caught, and it is another way to give the lender an unfair advantage in the deal. It can also cause you to get into a loan that you cannot repay under those terms. This can seriously damage your business’s financial prospects.


5. Not Being Up Front about Fees

A good lender will always state their fees clearly and be open to answering questions about any part of the process. A bad lender may give you the runaround and avoid answering the question directly. If you sense that your lender has something to hide, it is time to take your business elsewhere.


6. Be Aware of Your Debt to Income Ratio

Just as you would take this into consideration if you were applying for a personal loan, you should be careful with your company’s debt-to-income ratio. Companies which cater to borrowers with less favorable credit histories are often predatory and will take advantage of the borrower’s needs.


7. Watch for Companies That Do Not Check Credit Ratings

When a loan is offered, make sure that the company goes through the expected procedure of checking your credit score. If a company does not check your credit score, it could be a sign that they are planning to charge you many hidden fees to cover their risk.


8. Interest Rates Per Week or Per Day

This can be a huge problem for borrowers. When interest is charged on a weekly or daily basis, this is a red flag that the company is not operating above board. Interest should be charged on a monthly or annual basis.


9. Non-Traditional Advertising

If a business lender cold calls you or is advertising their services on Facebook, Craigslist, and other similar sites, that is a sign that they are not reputable. Online listings are fine, but you should be careful to find out whether the company has a physical address and office telephone number. Call this number and make sure that someone answers and is able to handle your questions.


Reputable Lenders

These 9 areas can help you find a reputable lender to grow your business. Be cautious when engaging with a business lender, and make sure that all of their terms are clearly stated before signing the loan agreement. August Funding reminds businesses to be cautious and to take all loan proceedings seriously.

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Truman Advisors on How to Build Credit Responsibly

By on May 10, 2019

Whether you’re just starting out, or you had a troubled financial past, you may now be challenged with building a good credit profile. While you may know what not to do, taking a more proactive stance on building credit is just as important. These tips can help you build a good credit score without forcing you to take on debt that you really don’t need.

Get a Secured Credit Card

A secured credit card provides a safe way for you to build your credit by linking the card to a checking account in your name. Your credit limit will be based on the amount you maintain in the checking account. For instance, if you keep a balance of $200 in the checking account, your credit card may have a credit limit for that same amount. This helps you build credit without the possibility of falling into a cycle of growing debt. 

Get Credit for Paying Your Rent

Typically, financial advisors or debt experts such as Truman Advisors recommend buying a home over renting, simply because you don’t benefit from paying rent. While that is true, there are a few new apps on the market that are starting to change that. Traditionally, paying rent was akin to tossing your money into a black hole. You aren’t earning equity, and you aren’t helping your credit score. Rental Kharma and RentTrack are just a couple of the apps changing that by ensuring your on-time rent payments are calculated as a part of your credit score. This can be enough to build up your score and make it easier to get the home loan you want.

Be Cautious About Borrowing

Before you apply for a personal loan, take the time to examine your budget. You should create a new budget that will include the installment payments that you’ll have to make on the loan. If it looks like you’ll have problems making your payments on time, it may be best to look for another alternative. Even one late payment can result on negative hits on your credit report, which will bring your credit score down. You may be better off looking for an alternative source of income, rather than risking the possibility of sabotaging your credit.

Use Credit Cards Wisely

It’s common for people to use credit cards to buy big ticket items, but this is actually an unwise way to use your credit cards. Instead, you should only use your cards for small purchases which you can pay off within the same billing cycle. This can help you avoid the interest charges that make credit card debt so difficult to clear up. Once you begin drawing out those debts, your minimum monthly payments will be primarily comprised of interest, and you’ll find it next to impossible to pay off that debt. 

Pay Your Bills on Time

While this may seem simple and insignificant, how good you are at paying off your debts will affect your credit score. As Truman Advisors and other financial experts warn, late and missed payments can negatively affect your credit rating. On the other hand, keeping up with your bills and taking steps to ensure each bill is paid on time will help you build a stronger credit profile. Think of your credit history as your financial reputation. It shows potential lenders how trustworthy you are in terms of repaying your debts.

Don’t Max Out Your Credit Cards

Another way that lenders look at credit is by analyzing your credit to debt ratio. This means comparing your total available credit against how much debt you have amassed. For instance, suppose you have three cards with a credit limit of $1,000 on each card, but you have only used a total of $700 of that credit. This is an example of a good credit to debt ratio. On the other hand, if you have charged up to $2,500 on your cards, this indicates that you manage your finances poorly, and you’re less likely to be approved for a loan with reasonable terms.

Hold onto the Same Cards

While it may be tempting to ditch your current card in order to get a good deal on a new card, just closing an account can harm your credit score. Maintaining a credit card account for a longer period of time can help show that you’re financially responsible, which will reflect well to lenders. On the other hand, a history of trading one card for another just to get that introductory offer will suggest that you’re a more whimsical consumer. This can leave lenders, and others who may review your credit report, to feel that you pose a greater risk.


Following these suggestions can help you build up your credit. A good score can help you function in society in more ways than you may realize. We need to rely on our credit scores for everything from renting an apartment to running a business. Taking the time to build a strong score by employing these suggestions will help you live an easier life well into the future.

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3 Ways to Reduce Debt According to Roseland Associates

By on May 1, 2019

Student loan debt has risen so high that Senator Elizabeth Warren is making a proposal to cancel $50,000 in student loan debt for those who make $100,000 or less per year. Right now, the average student loan debt stands at over $37,000 per person, according to a CNN article. b

However, it isn’t just students in America who are in trouble with debt. The average American holds more than $6000 in credit card debt and owes almost $25,000 in what’s called non-mortgage debt. This would include debts such as car loans, personal loans, and the like.

With debts reaching staggering amounts, many are left wondering what they can do about the debt that they have. The truth of the matter is the answer is simple but not easy. Getting out of debt in our experience comes down to a few critical elements.

A Word About Creating Debt

An article on The Balance admits that not creating new debt won’t get you out of debt. However, it won’t add to your debt either. 

This is an important point that not just The Balance recommends. Financial guru Dave Ramsey tells those saddled with debt to stop creating it. He recommends that those who are heavily in debt use cash to help them keep track of their money and to prevent them from overspending. 

All of the work that you do to get out of debt will be for naught if you don’t take this step before you implement any other debt reduction strategies. Not doing so is a bit like bailing water out of a sinking boat and expecting the leak to stop on its own.


1. Do a Side Job

Tackling debt with a side job or a side business counts as one of the fastest ways for you to get out of debt. Taking on a job at the local Starbucks, for example, could net you anywhere from $800-$1000 extra a month if you are paid around $10 an hour and work between 15 and 20 hours a week.

You would apply this extra money toward your debt. Usually, when people are deeply in debt, they will very often only pay the minimum payments. By doing so, you will remain in debt for a lot longer period of time. 

The extra money that you earn from a side gig at a coffee shop or a business of your own allows you to put more money toward your balances than just the minimum, helping you get out of debt at a much faster rate.


2. Create an Emergency Fund

The financial advisors, and the debt experts at Roseland Associates, recommend that you have between three and six months worth of income in savings. Some financial planners go as far as to recommend not only having the three to six months of salary in savings but also some extra money for smaller emergencies. 

Here’s how this works. You should first save about $1000. This is the fund will be used to pay for smaller emergencies, like a broken faucet in the bathroom or a random trip to the emergency room. The idea behind this money is that when you have such an emergency you don’t use your credit card. 

Rather, you use the money that you have in your emergency fund. If you do dip into the emergency fund you must replace it once you have the opportunity.

Once you have funded your emergency fund, then you start putting away money for those bigger emergencies, like a job loss or an illness. Having a savings account filled with enough money to get you by for three to six months will allow you to not borrow money on your credit cards and other credit tools.


3. Getting a Refund? Use it to Pay Down Your Debt

The AARP cautions debtors not to use that tax return to go on a splurge. Instead, they should use it to pay down their debt. Anytime you get extra funds like this, you should automatically plan to put it towards your debt until you are out of debt. 

Doing this allows you to compound the power of the other debt reduction strategies that you’re already doing. Anytime you can put extra money toward your debt, do so.


Final Words

Debt experts at organizations like Roseland Associates offer some standard advice to those who want to get out of debt. First of all, if it’s in your power at all to get a second job or to create a side business, you should consider it. This extra money, which might be equal $1000 a month or more goes a long way toward putting a dent in your debt.

Second, you should have an emergency fund. The emergency fund prevents you from having to use your credit card when a job loss or even a smaller emergency, like a new set of tires or a trip to the emergency room befalls you. After all, the best way to get out of debt is to try to stay out of debt in the first place. 

Finally, if you get any kind of refund like a tax refund, then you should also put that money towards your debt.

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The Pitbull Trader Explains the Most Popular Commodities That You Can Trade

By on April 26, 2019

One of the most important traits of a successful trader is understanding the instrument that you are trading. This means that you understand how it responds to news events, economic events and other variables within the market. It also means understanding how markets move and how to take advantage of patterns that often develop. Let’s look at a few popular commodities and why traders are so enamored with them. 

Oil

Oil is one of the first commodities that traders will want to buy or sell when they first enter the market. This is because it is among the most volatile instruments that you can trade. It isn’t unusual for the price of oil to move $10 or more in a single hour, and it is not uncommon for brokers to give you a dollar for every 10 cents the market moves up or down. Therefore, it is possible to make hundreds of dollars in a short period of time. 

Of course, it is also possible to lose massive amounts of money in a short period of time as well. The good news is that there are many ways that you can trade in the oil market with as much success as the Pitbull Trader. For example, you can trade oil stocks, oil ETFs and oil futures. You can also invest in mutual funds that invest heavily in oil companies or the oil sector itself. 

Gold

Gold is among the most popular commodities to trade because everyone knows what it is. Furthermore, it is a commodity that moves in a relatively predictable pattern. If there is economic uncertainty, gold tends to appreciate. The same is true if political strife emerges in a specific country or region of the world. When there are fewer economic or political worries around the globe, gold tends to sink in value, which can create opportunities for short sellers. 

As with oil, there are many ways to trade gold. You can buy the stocks of companies that mine gold or buy futures contracts that are traded throughout the week. It may also be possible to buy options contracts in gold producing companies or in ETFs that track the gold sector. It may also be possible to buy and sell physical gold such as coins, jewelry or anything else that has this material in it. 

Corn

Corn is more than the vegetable that most people enjoy with friends on a warm summer day. It is a commodity that can help you earn a lot of money if you understand how to trade it. Typically, the price of corn is influenced by the strength of the United States dollar as well as the types of regulations that the government imposes on farmers.

The strength of the economy will also play a strong role in determining the price of corn. You may be able to learn more about these and other factors by working with the Pitbull Trader or other investment advisors. As corn is used to create ethanol, the price of oil and other energy products may also play a role in corn prices. Therefore, some traders could choose to create a trading system in which they enter or exit corn trades based on price action in the oil or natural gas sectors.

Other Popular Commodities

While oil, gold and corn are among the most popular commodities to trade, they are not the only options. You can also trade natural gas, silver and soybeans if those are the markets that you feel more comfortable with. Individuals such as the Pitbull Trader may be able to help you determine the commodities that you would have the most success trading.

Being a commodities trader is a lot like being a stock or currency trader. You must have a solid understanding of how markets move, how the commodity in question moves and how to identify ideal setups. Furthermore, you need to be able to have discipline and good money management skills to maximize your potential to be profitable.

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Mountain Ridge Associates Guide to Applying the 50-30-20 Rule

By on April 12, 2019

Many people encounter a challenge when it comes to saving money, and the sad part is that even those with high income suffer the same problem. A budget is one of the many tools available to help control expenses, and all you need to do is identify all your incomes and expenses every month. Once you know how much you earn and how much you spend on basic and discretionary expenses, ask yourself if your budget is ideal the way it is. Ask yourself if you are spending your money in the right way and if you are saving enough based on the level of your income.

This is the place where you should make use of the 50/30/20 rule on your budget. It is a great budgeting tool that will help you categorize your expenses more ideally in classes such as needs, wants, debt and savings. So, how do you apply the 50/30/20 rule in your finances?

1. Calculate Your Net Income After Tax

Know how much you are left with after local tax, state tax, income tax, social security and Medicare deductions. This is very easy to calculate, especially of you have a steady paycheck. For the purposes of applying the 50/30/20 rule, be sure to include any retirement contributions that are automatically deducted from your paycheck, as these will need to be categorized under your savings budget.

 For the self-employed persons, you will have to subtract your business expenses from your gross income. This includes your self-employment tax payments. Mountain Ridge Associates says that if you are not sure of how or when to calculate and remit your taxes, it is advisable that you work with a reliable tax consultant. Nonpayment may result in hefty fines or even jail time.

2. Make Sure Your Needs Only Takes 50 Percent or Less of Your Income After Tax

Review your budget and identify how much your needs have been accounting for. Your needs include housing, groceries, car payment, car insurance and utility bills. Make sure the total for this category of your expenses does not exceed 50 percent of your after-tax income. When deciding this, you must be very careful in differentiating your needs and your wants to avoid confusion.

For instance, the cable bill might seem like a need, but it is a want because you can do away with it even it comes with minor inconveniences. However if you require cable to make the most of a bundle with internet and phone service, and these are required for you to work from home, this becomes a need (and a business expense). Anything that can affect the quality of your life such, as prescription medicine or food, falls under the need category. A minimum payment on a credit card is a need because if you forgo this amount, it will negatively affect your credit and fines may be levied. However, any amount you pay on top of minimum payment is not a need and you can do away with it if the 50 percent rule has been affected.

3. Make Sure Your Wants Take 30 Percent or Less of Your After-Tax Income

The grand total of everything in the ‘wants’ category should total 30 percent or less of your after-tax income. Before you get excited about going for a vacation or buying designer clothes with 30 percent provision, stop to understand what the category, ‘want’ refers to. It is not about purchasing extravagances, but rather the basic things that make your life more fun and enjoyable. For instance, expenses such as a cable bill, unlimited text message plan, streaming services or cosmetics among others. The rules may sound unfair and somehow tricky but if you want to be realistic with your budget and save more, be willing to make the sacrifice. 

4. Use the Remaining 20 Percent on Debt Repayments and Savings

This is a provision from your income after tax that will help you save money and repay your debts faster. One thing you need to know about paying debts using this 20 percent is that any minimum payment for your mortgage loan, car loan or credit card balance does not fall here; these are a need. Therefore, the payments are accounted for under the 50 percent category. However, any amount you pay beyond the minimum payment falls under the savings and debt repayment category. This is also the category where you get money to establish an emergency fund or contribute to your retirement accounts. 

Budgeting can be tricky for many people not knowing what expenses to add or reduce in the effort to try and save more or balance the budget. The 50/30/20 rule will help you to focus on perfecting you finances rather than trying to categorize individual expenses. However, depending on your circumstances such as your location, your lifestyle and level of income, you will be able to tell if the budgeting system is right for you or not. According to Mountain Ridge Associates, you should feel free to adjust some percentages on the rule to fit within your circumstances as long as you don’t go beyond with your expenses. If you are that person who does not like having a detailed budget, the 50/30/20 rule budget can be a perfect option for you.

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4 Best Investments Of 2019 You Should Know About

By on April 4, 2019

Strategic Financial Solutions

Investment decisions have always been hard for everyone in general, both established investors and newcomers. This is because every day there appears new ideas better than the previous ones. This is why any person planning on investing should conduct their study comprehensively at the particular time they plan to do so. Consulting investment and financial advisers could also help a lot as they keep tabs with all available investments, risky ones that you do not want to get into and they can also foretell what to expect in future for every specific investment. As this would cost you money for the consultation, there are a few investments that have proven worthwhile for the year 2019.

1. Investment In The Stock Market

The stock market is definitely not new in any way. This market goes far back in time and is believed to be one of the best investments of all kinds since it’s meant to go on into the future. As long as companies, organizations, and businesses are running, the stock market will always be running too. What everyone needs to learn when investing in it is the dynamics and the challenges in it. You need to study an organization or company before taking up its shares so you can understand it’s progress. In 2019, you just need to understand the new companies joining the market and would make good profits, companies applying new policies that would also earn them profits and finally what companies to stay away from investment wise.

2. Invest In The Real Estate

Just like the stock market above, real estate is an unending business, and as long as there are people in this world, the business will never stop. What you also need to understand in this business too is the new policies and which exact departments you would love to invest in. Every day, there is an increased demand for houses, and this is why this investment gets more and more profitable. Everyone would love to own their house, and no matter how high prices go to, people would go to whatever heights to see they can afford a home of their own. For instance, they would get financial support from institutions like Strategic Financial Solutions and pay back slowly through a certain given period.

3. Lending Cash To People Around You

Things have gotten tough on everyone, and this is why many people cannot make it by the money they get paid. This is why there could be a chance to lend people some of your cash just like the financial institutions do and earn some interest from them. People struggling to make ends meet wouldn’t mind whatever interest levels you ask for on your loans. What would matter most is the fact that their problems get sorted at the time of need.

4. Investing In Your Career

You might have always thought of getting employed or working in some industries would be better compared to working on your career. How about you try a new thing for the year 2019? Invests in the career you spent years studying and you would end up very successful after a few months or years experience on your resume. Cultivate on gaining experience in that career, and soon or later, you would be very significant in that field earning good cash from it.

You do not have to look for a classic and unique kind of an investment to make good investment returns for the year 2019. All you have to do is think outside the box. If you can’t think of new investments, use the same old investments ideas but try and broaden your thinking to more deeper and undiscovered ideas.

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Dutchess Partners Caution Against the Long-term Effects of Debt

By on April 2, 2019

Although debt is necessary for business or personal growth, it should be handled with great caution. Borrowing is one of the tricky areas of everyday life that require proper management to prevent them from getting out of hand. When you accumulate different debts, they are likely to exert too much pressure on you to keep up with the payments.

Eliminating debt should always be a priority to ensure that you are not trapped in the cycle of debt. If you are not able to eliminate your debt in the short term, you might need to consider options such as debt consolidation from various industry experts such as Dutchess Partners. The debt consolidation plans from Dutchess Partners offer low-interest rates enabling you to save money.

The following are six ways in which long term debt could affects you or your business negatively.

It might damage your credit score

Too much credit can inhibit you from accessing credit from other sources in the future. When calculating your credit score, one of the crucial areas that the credit bureaus check is the credit utilization ratio. This ratio indicates how much credit is available for you and how much you have already utilized.

If one has too much debt, he or she is considered to have over utilized his or her credit options. This could limit credit availability when needed. It is imperative to note that the credit scores remain low until some of the debt is repaid. This inhibits the person or business from accessing credit or other forms of financing.

It may limit your financing options

Most lenders are wary of lending to individuals with high levels of debts in their name already. The lenders, therefore, share information on how much a borrower owes them to other institutions that offer credit services.

If you have long term debt, you may not be able to access various financing options such as a mortgage or an auto loan. This is because the different lenders are likely to look at how much credit is available to you versus what you have already taken. If the debt level is too high, you are likely to be denied financing.

It may lead to a lawsuit

Although it may take quite some time before the creditor sues you, this could happen if you fail to meet your financial obligations. If one is not able to pay back his or her debt, the creditor may decide to file a lawsuit against the defaulter.

Lawsuits may take years before they are concluded, something that leads to loss of money through lost time and legal fees. The court may also find the defaulter guilty and force him or her to give up part of his or her paycheck until the debt is repaid. A lawsuit is also likely to result in poor reputation, which means that other entities might avoid doing business with you.

It can be very costly

One of the most severe consequences of debt is cost. Banks and financial institutions charge their loans based on risk. High-risk borrowers are charged high interests while low-risk borrowers are charged lesser. Someone with high levels of outstanding loans is considered a risky borrower.

Such people are offered loans at a higher cost, and this quickly accumulates the money they owe. Instead of adding loans on top of other loans, one should look at debt consolidation options that have low-interest rates. Dutchess Partners offer valuable resources in the form of low debt consolidation loans to help you enjoy a peace of mind during tough seasons.

It may cause stress and depression

Most large loans take a lot of time to pay off. They are also quite expensive due to the accumulation of interest. For you to pay them off, you will need to dedicate a lot of time and effort. During the repayment period, the borrower is likely to be under a lot of pressure to meet all obligations. This may lead to high levels of stress.

People with high stress levels are more likely to make inferior decisions and are very likely to get into more debt to relieve pressure. Exposure to stress over a prolonged period could also lead to depression or other mental health issues.

People with high levels of stress hormones in their body have a weaker body defense mechanism. This makes them vulnerable to various health complications such as high blood pressure and sleep disorders. Debt may also push the borrower into denial. This means that the borrower might start hiding from collection agencies as a coping mechanism.

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Hornet Partners Break Down the Steps for Getting Out of Debt

By on April 2, 2019

Debt can prove itself to be a burdensome load to carry if it remains unpaid for an extended period of time. Between interest rates that extend the shelf life of the loans and the principle, it can get very cumbersome making payments and not feeling like it will get paid off any time soon. This is common because there is no plan in place to get out of debt. This is primarily due to poor habits and unwise money management. If you fail to plan, you are planning to fail. Here are the various steps towards getting out of debt, as explained by the experts at Hornet Partners. 

Try to Lower Your Rates

High-interest rates on existing debt may cause it to mount and paying it off will become much more difficult. Therefore, if it is possible, you want to lower those interest rates as much as possible and as quickly as you can. In order to do so, you might need to consider a few things. First, if you have a great credit history, you may qualify for better interest rates, especially on credit cards. You should also call card issuers to ask for lower rates on balances on your credit card. This also applies to auto loans. 

If your debt is in the form of student loans, you should check out income-based repayment plans and loan consolidations at Studentloans.gov. If you have concerns regarding consolidation, Hornet Partners are an industry expert that can assist you in this regard. 

Know Your Numbers

One way you can have a concrete plan in place is to know what the amount you owe is. That way, you may have a clear idea of what you owe and what your monthly payments will be looking like. The easiest way to go about this is to total the three-year pay-off amounts on credit cards, add the monthly payments for all other debts, and you may see what you owe each month. It can be easy to get off-track and get sporadic with your monthly payments if you are not organized. 

Have A Specific Strategy in Mind

You can prioritize paying your debts in a litany of ways. Perhaps the first thing you should consider is to determine if the total monthly payment is something that you can afford until the debt is paid in full. If it is not feasible for you, a credit counseling agency should be consulted for advice. Bankruptcy can also be an option but be advised that this can have a significant effect on your credit score. That is why avenues of working out payment plans with your creditors should be prioritized. Hornet Partners has valuable information on these topics, especially in regard to strategizing debt payments. 

Something else to think about is which debt you want to pay off first. You can choose this based on what has the lowest balance or the highest interest rate. This can be dubbed your “target debt”. Paying in this kind of way is also commonly known as the “snowball method”, which has received much positive feedback. 

Have an Emergency Fund Ready

Sometimes, when you are paying debt, you may believe that there is no money at your disposal for savings. However, you should not get trapped into thinking this way. If you analyze your daily spending habits, you should be able to see that there are areas that you can make cuts. It is all a matter of discerning your wants and needs. For example, if you find yourself eating out a lot, or making monthly subscription payments for video streaming services, that’s money that can be used towards monthly payments. If you do not want to put that towards paying off debt, all that extra money can be used towards an emergency fund when there is nothing left. 

Another way to put money towards your emergency savings is to automate them. It can be hard to do it in a manual sense, but having your employer contribute a part of your paycheck to a savings account can prove to have its benefits. Ideally, you may want this to be in the 10% to 20% range. For the purposes of getting out of debt, this may be unreasonable, so you can start with a number as little as 5%. Also, be on the lookout if you happen to get a pay raise or a bonus and see if some of that money can be used for your emergency fund. 

As you can see, paying off debt can be a cumbersome process, but with smart strategizing and having a plan in place, you will be able to start making consistent payments. Eventually, the day will come where you may be able to live a debt-free life.

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The Basics of Personal Finance Explained by Lance Advisors

By on March 13, 2019

Understanding personal finance is a vital step in attaining financial freedom. Leading financial experts say that people who know how to handle their money at a younger age are more likely to be successful than those who have a nonchalant attitude. There is no way you can create wealth if you do not start by organizing your finances, and therefore, it is good to know the basics. Lance Advisors say managing your money should not be a complicated process as long as you know the things that are likely to affect the entire process. Have been having problems with organizing your personal finances? Here are a few things to note.

About earning money

Making sure that you are earning money regularly is essential. Whether you are a business owner or an employee, the flow of money into your account is what determines how long it will take to attain financial freedom. Some people earn a lot, but others have to make do with minimal earnings. However, it is your hard work that will ensure that this money continues coming in. When you lose one source of income, it is essential to create another so that the flow is not disrupted.

About saving your money

Savings will be useful when you don’t have money to spend. It is like storing food for a rainy day. Savings should be used for emergencies that cannot be covered by your regular monthly bills. When it comes to savings, nobody can dictate how much you put away every month. However, it is up to you to do the calculations so that at the end of the day, there will be enough money to carry you through when you cannot work. There are many ways to save including joining saving groups and opening savings accounts through local banks.

About Investment

For your money to grow, you have to find sources of investment. The problem with most people is that when they hear about investment, they picture large value and short-term strategies. However, as investment professionals advise, a strong investment strategy should include many diversified long-term options. You can choose from numerous methods, because some investments do not require your presence to earn money. When you are first starting out, it is good to make sure that you put your money where it cannot be lost. Things such as government bonds are an excellent way to invest your money even as you continue working. Broader investments like ETFs and Index Funds are also a low-risk and long-term investment strategy that may help build a solid foundation for the future.

About loans and debts

Loans may help you accomplish a lot of things in life, but according to Lance Advisors, loans should be handled with care. It is difficult to find one successful person who does not take loans. However, you need to know that loans require a great deal of discipline. You should use the loans wisely so that they bring you even more money. When you borrow, make sure that you pay your loans on time. Establishing good relations with lenders will give you an easier time when it comes to personal finances. Be careful not to fall deep into debt because when it becomes difficult to get out, things will not be rosy for you.

About credit cards

A credit card offers a convenient method to pay for goods. When you get your first credit card, it is always a joy. The fact that you can grow your credit rating through these cards is the icing on the cake. From the onset, make sure that you resist the urge to misuse these cards. Do not pay for things that you hardly need just because you have a card. If you are not careful, the unpaid debts on these cards can ruin your credit score and make it difficult for you to access essential financial services.

About banks and other financial institutions

Banks are the most critical institutions when it comes to personal finances. They will help you to store your money, spend it, and give you loans. For instance, when the time comes to buy a house, it is your bank that will provide you with a mortgage loan. Therefore, you need to know how to deal with the banks so that you are always in their good graces. First, you need to identify the best institutions to bank with. Go for those that have good customer relations. A good bank is one that has a vast customer base.

Lance Advisors also say that to maintain good personal finances; you need a financial coach. You need to find a source of information that will always guide you on how to invest your money. They are the experts who have vast investments and therefore, you can be sure that they know everything about finances. These coaches can either be found locally or online. Be sure to interact with people who have discipline when it comes to personal finance so that they can encourage you to save and invest as you continue working hard to earn a salary or profit from your business.

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Tips from Gladiator Lending on How to Avoid Over-Leveraging Your Personal Finances

By on February 26, 2019

Do you find that you constantly encounter more debt than what you’re able to repay? These five tips that will help to avoid over-leveraging your personal finances: 

Create a budget and stick to it

This might seem like trite and simplistic information, but there’s a reason why this tip is one of the first that’s always advised to those who wish to get a handle on their finances. 

When consumers are willing to take a hard look at how much money they realistically generate through employment or other sources, they’re forced with adjusting their lifestyle to the boundaries of their income. 

If you wish to avoid generating more debt than you can afford to pay back, then take a moment to create a realistic spending budget. But while you’re taking a look at your spending habits vs. your income, you might consider whether or not your employment revenue is enough to fund your lifestyle, especially a budgeted lifestyle. 

Create cash reserves

When consumers sit down to figure out all of their bills and living expenses, the thought of tucking a bit of “rainy day” money might not seem terribly realistic on the one hand, while seeming trite on the other hand. 

But along with budgeting, there’s a reason why creating cash reserves is also one of the most advised tips, too. Creating and maintaining cash reserves in an easy-to-access vehicle such as a savings account or a simple money market allows you to avoid debt that you can’t afford. 

Specifically, you’ll be able to literally throw money at your problems! The more cash you have in reserves, the more you’ll be prepared for those inevitable, unexpected emergencies. It’s a great feeling to know that you can call a repair person, pay for your dental emergencies, re-stock your groceries, or take care of any number of issues that might arise when you have money on hand to handle your business. 

Don’t use more than 30 percent of your credit card limit

This is a tip that takes a bit of discipline, but you’ll be glad that you followed it, and here’s why: 

Creditors assign your credit score by looking at what’s called your debt-to-income ratio. In layman’s terms, they want to see that the debt that you’re carrying isn’t equal or more than the income you’re currently generating. Ideally, carrying less debt means that you have plenty of available income to handle your finances, including, paying your credit card bills every month. 

On the other hand, carrying a heavy debt load signals to creditors that you’re either not generating enough income to pay your debts, or you’re not handling your credit responsibly. This makes creditors take action, such as increasing your interest rates, denying your requests for credit line increases, and most drastically, lowering your consumer credit score. 

Pay your revolving lines of credit on time

Speaking of increases to your interest rates and decreases of your credit scores, one way that you can avoid both outcomes is to pay your revolving lines of credit on time. Not only does this include credit cards and department store charge cards, this also includes bills such as your monthly utilities! 

That’s right – up to 35% of your credit score is determined by how well you pay your monthly bills. When you pay on time, every time, then you’ll notice an increase of your consumer credit score. This equates to lowered interest rates, and this brings your debt ratio down to figures that you can easily afford to pay without digging too deeply into your reserves. 

Don’t tie up all your liquid assets

Some consumers believe that placing all of their savings into financial products such as stocks and other investments is the wise thing to do. It’s easy to understand why some would avoid traditional savings accounts – the current interest rates on a savings account is so pathetic, consumers find that they aren’t earning anything in interest. 

But here’s the problem with tying up all of your cash in investments – they’re not easy to liquidate. There’re steps that you’ll need to take in order to liquidate investments, and you could find yourself losing money due to the volatile nature of investments. So while placing your money in investments isn’t a bad idea, it’s a good idea to keep some of your funds liquidated for emergency purposes. 

But what if you truly need a loan?

While it’s great to take steps to avoid financial difficulties in the first place, there will be inevitable instances when you just don’t have the cash on hand to handle an issue. Or you might find that the issue on hand will cost you more than what you have available in your cash reserves. 

These are instances when applying for a loan makes sense. While you’re in the process of looking for a lender, you should reach out to larger, traditional lenders such as banks. But if you don’t want to work with a bank, then there are options available to you such as smaller financial lenders. Smaller lenders such as Gladiator Lending might be able to offer you assistance that a traditional bank wouldn’t offer. 

Whether you apply for a loan through Gladiator Lending or elsewhere, be mindful that loan terms and rates differ depending upon the lender’s terms. Do your research so that you can be approved for the best loan you can afford to repay.

This entry is filed under Money.

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