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Category Archives: Finance

People Reluctant to Spend Money

Whichever way you look at it, if the consumer feels prosperous, sooner or later it often leads to the dreaded inflation, the thing most governments want to avoid at almost any cost. So, it`s ironic that we are now in the situation in which the economy has ground to a halt, the banks have been forced to lower interests rates to virtually never-known-before lows, inflation in some places is turning to deflation, and many of us have more money in our pockets than before the credit crunch took hold. Paying much less for our mortgages, and with the lower rate of VAT now at the standard rate of 15%, down from 17.5%, has made many people better off. So, why aren’t we doing what the government wants us to do-spend?

First of all, why are we being encouraged to spend our money? Because recovery will be consumer-led. The consumer is the one who will kick start the economy once more. Car sales, house sales, clothing retail, holidays, they all depend on customers being prepared to walk through the door and purchase. Once house sales improve the numerous other items that go along with the buying of property such as home improvements, furnishings, extensions, patios, bathrooms and so on will also start moving properly. Once people start to buy, the government will of course reap the benefits of getting more tax in to the exchequer, mainly in the form of VAT.

The recent reduction of VAT is a two-edged sword. Most of us are acutely aware that as from next year the government will have to recoup what was lost in tax from this year. Whether they do that through direct or indirect taxes we don`t yet exactly know. But, claw the taxes back they will. Add all that to the fact that there`s so much uncertainty on the job front, many are hoarding their new found disposable income and putting their money into savings accounts.

Learn to Invest Money

Learn to invest. You have two options when it comes to learning to invest. You can learn by your own example where you can learn by the example of others. You can set up a brokerage account and start buying stocks based on your own decisions or you can read to learn how to do it and learn other people strategies would have succeeded already.

The honest truth is that you’ll probably fail at some point or another doing on your own. There is always look involved, but generally, you could fail miserably. On the other and, if you read from other people and see how they have succeeded and failed, you can learn from their mistakes and use that information to succeed.

This very moment you are learning from the mistakes of others. You are learning that some people decided not to invest. They just avoided it. Some are still working because they can retire and others are barely getting by in forced retirement. Learn from their mistakes and invest now.

Control Over Money

1. Use cash instead of bank cards. It is easier to stop spending when you can see that you are out of money.

2. Avoid shopping unless it is absolutely necessary. I never go for groceries until my fridge is totally empty. It is amazing how creative you can be and how much you can save when you follow this practice.

3. Shop with a list. Do not buy anything unless it is on the list.

4. Try scheduling appointments one week later than you normally would. You can save the price of at least two haircuts a year by booking every five weeks instead of every four weeks.

5. Plan your outings so that you save on gas. I often write the places that I need to go (using the shortest geographic route) on a sticky note which I place on the dash of my car.

6. Purchase a library card instead of buying books. You will be surprised at the good selection of novels, CDs, movies and newspapers that you can access for $5.00 a year with your card.

7. Go through your clothing and determine what new combinations or accessories you can add to be stylish without purchasing more items.

8. Instead of purchasing bottled water or buying specialty coffees from retail outlets, carry a thermal cup that holds a beverage you prepared at home.

9. Divide the monthly payments for your credit cards and mortgage by four and then pay this amount weekly. You will not only reduce the interest significantly, but also make four extra payments a year.

10. Write down every penny you spend for the next month and then analyze the list. This will help you to determine what you can reduce or eliminate in the future.

Student Loan Debt Consolidation

It would really be unfortunate if you have to bother about repaying a huge credit right from the beginning of your career. In fact, most of the graduates are now placed in this crisis. However, with the student loan consolidation program in the scenario, the problem of credit repayment becomes quite easy to handle.

The best thing about the consolidated loan is that it comes with an interest rate much lower than that of the other loans. The basic principle here is the same as refinancing a home for lowering the mortgage payment. Consolidating your existing loans which you had taken with higher interest rates, you now have to pay the interest for this single loan instead of multiple interests for multiple loans.

This lower interest rate on a single bigger loan will eventually spare you more money than you can expect. Some credit companies will reduce the rate even further for the students who consolidate their loans in their grace period. However, make sure that you stay away from the companies that demand repayment right after the grace period is over. Go for the companies which do not expect you to do so.

With consolidated debt, you not only save your money, but also your time and efforts as you now have only one monthly payment instead of several ones.

Money Saving Solution

Many business owners try to do it all themselves and the more time that you spend on tasks that could be outsourced, the more money that you waste. If you are looking to hire employees or a temp, you waste more money than you save; in terms of all the overhead that you have to pay for & other business related expenses. You don’t have to pay for any of those expenses when you contract with a Virtual Assistant. You just pay for the services that you want and that saves you money in the end.

A Virtual Assistant does not become your employee, they become a partner in your business or projects. That saves you money in the long run. When you consider and choose to work with a VA; don’t think of them as being your employee. That’s when you think that it costs too much to outsource. When you have that mindset of employee/ boss,(you’re the boss, they’re the employee) you limit your ability to effectively work with a Virtual Assistant. When you contract with one you develop a business partnership.

You have to get out of that employee/ boss mindset. Virtual Assistants are business owners just like you and they understand the ends and outs, the ups and downs of business. They can help to assist you through the tough times and good times of your business or projects. They know what you’re going through.

By working with a Virtual Assistant you can save by:

  • lowering overhead costs
  • reduce some business related expenses
  • eliminate high employee turnover
  • eliminate federal & state obligations of an employee
  • you only pay for the services that you request
  • eliminate the cost of finding/ hiring/ training an employee
  • you can reduce your work hours & your workload
  • they help you to improve and/or reduce administrative tasks
  • they provide assistance at half the cost of employees

Financial Gratefulness

Focus on what is right with you and stop replaying what is not right in your life!

When did you last grip about something? It wasn’t that long ago that I moaned often unhappily. I was unhappy with my work, and in my personal life and for these reasons, I complained to others. My friends were also sad – it was a group pity party and we supported each other about feeling discontentment. To be honest, I was envious of other people who were satisfied with their lives. This is a revealing truth.

With time, I learned to pay more attention on what was working in my life and acknowledge the resources I did have more than I complained. Overtime, I felt a change happen, and more good things and people came into my life.

Try this tip for yourself and plan a time when you acknowledge what is working in your life. Visit the a complaint free world website to assist you with stop complaining

Write down what’s working

After identifying some good resources in your life, record them maybe in a journal. When we are working on changing your habits, sometimes we are not able to remember the good things in hard times. Changing takes time, so it is important to have a reminder written down of the good when we are going through a challenge.

Ask for what you want

While working on tip number one, surely stuff you want and do not have right now will become a need. This is a human reaction.

Choose one thing that you need help with and ask for help. Consider who can help you and how you will you ask?

Release fears and ask. Asking is like a lost concept especially for women. Exercise your courage and ask because you might be amazed how affirmatively people are willing to help.

Online Money Management

While you are in business, right from expenses incurred on purchase of raw materials to payments received on selling of goods and services to the actual consumers, urgency arises to keep a track of each and every penny spent. This overburdens the task of the financial department as keeping an eye on each financial transaction becomes somewhat difficult for the financial manager.

So the need arise “Can you manage the business without any financial delay?”
Thanks to our technology which has evolved a great deal in the past decades as it has given us the most valuable gift ‘internet’.
Online money management – a revolutionary concept has eliminated all the traditional financial technique of recording expenses. It has given a new prospect to the financial world. Following are few of the benefits it provides:

  1. No problems occur while installing online financial software.
  2. Useful for both businesses and individuals
  3. Online software accessible anywhere there is an Internet connection.
  4. It keeps a track on your single penny.
  5. Online financial software is usually inexpensive, and is often free.
  6. Categorization of expenses under customized headers.

With array of features, online money management has alleviated the financial delay which a manager has to face in the due course of the business. Online fund management is really a boon to the financial world!

Purchase Order Financing

On our planet earth, man did not invent money for thousands of years. As civilizations and nation states developed, man learned how to trade and barter for goods that they needed. Money was invented to solve the problems of bartering. There basically was a timing issue between, for instance, farmers having a crop to trade for what they wanted when they needed it. The invention and acceptance of gold and silver coins helped to overcome this timing mismatch. The farmer could sell crops for gold and trade gold, when needed, for the other things they required.

Paper money was invented for many reasons, not the least of which is to avoid the inconvenience of carrying around a large amount of gold or silver. Paper money is easier to hide. Until the early 1900’s in the United States paper money could actually be redeemed for gold. During the Great Depression, President Roosevelt in 1933 passed laws outlawing the ownership of more that $100 of gold by individuals. By the turn of the century, the U.S. government discovered easy money. No longer restricted by the need for physical gold reserves, the government printing presses churned out however much money as they needed; and the politicians invented schemes such as the sale of government bonds, government loans of various kinds, and control of the money supply through twelve regional Federal Reserve Banks to manage the nation’s economy and money supply.

Our government’s easy money in fact is causing every American a very steep price. As the world economy realizes our money has less worth, we are charged more for imports such as gas, clothes, and food; if we travel abroad, in Europe for instance, we find that it takes about one and a half U.S. dollars to purchase a single Euro, the currency of Europe. In effect, European hotels, restaurants, goods and services cost fifty percent more for Americans because of the weakness in our dollar. Ironically, U.S. musicians make more money in Europe than they can make in America because it costs less to pay them “in dollars”. In spite of this economic situation, many U.S. businesses are innovative, creative and ready to grow at a very rapid pace. Purchase Order Financing can be the easy money solution to rapid growth requirements.

Why does it work? Purchase order financing solves the timing problem to pay a manufacturer for goods before the buyer pays the seller for the product just like paper money and gold solved the barter timing mismatch problem. One real world example is the case of a company that developed popular products for dogs and cats. Most of their customers were small stores. One day they received a huge order from a big box store that would virtually double their business on a monthly basis. The business did not have the cash to fulfill the order. Purchase order financing provided the solution to their cash flow shortage to pay for the manufacture of the products and get the goods shipped to the big box customer.

How does it work? A letter of credit is issued to the manufacturer to guarantee payment. The costs of goods are paid to the manufacturer as soon as the goods are delivered, in the example above, to the big box store. An account receivable financing arrangement is created to pay for the purchase order and letter of credit side of the transaction. When the buyer pays the accounts receivable, the lender, generally a finance company or bank subsidiary, is paid pursuant to the contract and the profits are rebated to the seller.

Information of Finance, Credit, Investments

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.

V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

Personal Money Finance

There are some home expenses that you can easily cut back on and others that you cannot. Think of this as a financial plan and your home is always a priority. If you have a high interest rate, you may be able to refinance or renegotiate the mortgage. Other than that, you could consider moving to a less expensive home or a new area, but moving itself is quite a personal expense.

In order to implement saving money tips, you need to establish some priorities; things that you will keep and things that you will give up. Things that you must keep include health, auto, home and life insurance. Not having any of those will cost you more in the long-run, but you can always shop around to save money on these items.

Utilities (electric, water and gas) are living expenses that you cannot do without, but you may be able to save. Turn the lights off when you leave a room. Set the thermostat higher in the summer and lower in the winter. Take shorter showers and choose showers over baths to use less water. Fix leaky faucets and toilets now. You would be surprised by how much a dripping faucet can raise your personal bill over a year’s time.

Save your receipts for a while and look at avoidable living expenses. If you regularly buy drinks or anything else at a convenience store, you are always paying more than you need to. Buying a single soda for a dollar is equivalent to paying $12 for a 12-pack, when a 12-pack typically costs less than $4.

Of course, if you are serious about following saving money tips, you’ll give up the sodas and the bottled water. It costs a lot less to install a water purifier and bottle your own at home. Try to figure out other ways to save grocery money.

If you don’t need it, don’t buy it. If you rent DVDs, stop. If you are buying books, get a library card. For entertainment, go to free museums and parks. Watch TV -you’re paying for that already. You will be surprised by how much you can cut your living expenses by making small changes and living frugally.

Here’s the last of the saving money tips: buying in bulk is not always the best choice. Go through your freezer and pantry. Come up with recipes to use the food up and then start over. Start a habit of cheap ideas and ways to reduce your personal bills.

There is no advantage to buying large quantities of something that you may never use. Toilet paper is the only thing that we buy in bulk. We use cloth instead of paper napkins or towels. It reduces our trash and saves us personal money, too.