Three Things New Entrepreneurs Need To Know About Personal Finance                

Finally, you’ve just opened your first store branch. All those years working as an employee finally paid off as you venture off doing everything you love. But you might forget that doing something you love will still take its toll on your expenses and your own health. Be informed. Develop the proper financial habits with these three.

Reduce Your Debt Today

A mountain of debt will have banks shut their doors when you need them the most. But to start a business, you might need to take on mountains of debt.

Before you say this particular situation is quite ironic when starting a business, you have a choice of making debt reduction your top priority.

Manage the possible damages to your credit rating by handling the highest interest rates first, including your personal expenses in your credit card. Then, eliminate your student loans.

Also, never shut off your access to debt consolidation services. These are essential if you have multiple loans.

Good Spending Habits Habit

Avoid being too gallant for yourself during the first three months. If you’ve been wanting that new car or financing that new branch already, stop yourself.

Practice a bit of accountancy by plotting down all the expenses you’ve made and about to make in the next few days. Monitor your repayments for your business loan, student loan and equipment financing for your business, if any.

Get your bad spending habits under control. If you’re an impulse shopper, prioritise your business and avoid adding to your debt.

If you can get your financial demons in control, you develop better entrepreneurial habits, making you ready for corporate decisions in finance.

Emergency Fund and Insurance

Never forget to have at least 3-6 months of personal living expenses once you begin your business. This will help you avoid troubles that might lead you owing wages to your employees. Have a money-market account or at least a savings account.

You could create your own emergency fund by depositing money in a Roth IRA, or better yet an insurance policy with a growth fund component.

Personal Finance

The Three Things With Heavy Influence On Your Money

Where do you use your money? Your budget may reflect the accurate representation, but there’s plenty more where your budget plays a huge role. These include the following.

  1. Personal Motivation

Every day, you get up. You count your money so that you have enough when you ride the tube. You count your money so you have enough to spend for food for the day. These are all your motivations for food. You’re motivated to eat. You’re motivated to go to work. You’re motivated to save up for something special for yourself or for somebody else.

  1. Social Motivation

That last sentence from number 1 is actually a twist. This is when your social motivation kicks in. You spend money because you feel it’s nice to give back something to another person. You spend money because you are pressured to treat some people in your life. You spend money because you’re motivated to show appreciation.

  1. Accountabilities

You spend money for your daily spending, your monthly bills and everything else your money needs to go. You don’t just spend money on something for yourself because you can. You spend it because you’ve already taken care of your accountabilities.

Personal Finance

Should You Seek The Help Of A Financial Adviser When It Comes To Your Pensions? Maybe You Should!

To be honest, pension advice is probably one of the hardest things to do in the world today. To be honest, you could find yourself in trouble if you are not careful where you put your money. With the new pension freedoms given to retirees by 2015, some could get scammed, risk their guaranteed risks for something possibly bigger, or worse, could land in ineffective deals wasting much of their life savings.

If you spend enough time researching, you could find the right product for you. However, you might also want to consider hiring a financial adviser.

The government provides free advice through the Pension Wise service. Pension Wise is a free service that provides tailored help. It also helps you understand the options available to you. While it won’t provide product recommendations, you can understand your situation better.

Regulated Financial Advisers are the only ones who could recommend such product recommendations. However, they could cost you from £150 to £474 an hour. This could mean that if you plan to convert your pensions into an annuity or lump sum, you could pay around £1,500 in total.

It might not be so bad. You get a detailed plan after and you could pay them about 1 per cent of your gains if you want them to review your position yearly.

Personal Finance

How Do Millenials Save For Retirement Nowadays? It’s Quite Surprising, Actually!

Twenty-somethings nowadays might seem aloof about finances but they really aren’t, in reality. Twenty-year-old professionals understand that retirement won’t come easy for them and they’re expanding their horizons and responsibilities amidst the chaos. Here is a list that shows how they beat their elders at making financial decisions for themselves.

  1. Auto- Charges

Technology is the millenial’s tool when it comes to budgeting. Smartphones aren’t just for looks and luxury. It’s also for budgeting, calculating and assessing their personal overhead costs added expenses and other activities they use with their money.

  1. Investing

Millenials understand that investing is their saving grace once they grow older. Their early exposure to the stock market allows them to make costly mistakes they can recover from using their active income. They will have had the experience of a professional investor by the time they retire, helping them coup their profits and cut their losses.

  1. Open to Advice

Admitting they don’t know anything about finances and even legalities concerning investments and other financial ventures, millennials are very open to advice. They know they can’t rely on social security alone, They also understand that plenty of investments in the market are now low-risk, low-return. They want to know more ways to expand their financial horizons.

Finance

Why You Should Save While You’re Young [Infographic]

Frankly speaking, that active youngster body of yours won’t last forever. In 20 years, you’ll be facing physical troubles. Your body can become more vulnerable and troublesome while doing work.

If you’re able to save, or at least invest in income-generating items, you could help yourself deal away with lots of trouble in the long run. Check out this infographic to help you get started.

Personal Finance

Three Ways To Financially Prepare For An Unexpected Pregnancy

An unexpected pregnancy is both a happy and sad moment for both the man and the woman’s families. Being unexpected, this life-turning event is quite difficult to handle financially. But there’s a real way to help make it grow and help you get right back on track.

  1. Good Healthcare

The costs of healthcare are increasing worldwide. If you get pregnant unexpectedly, having a health cover helps greatly. Pregnancies require many medical appointments and expensive ultrasounds, which could be quite costly. Shop around for good healthcare, you may just find what you need.

  1. Have a Savings Goal

At this point, it is important to save more than 100% of what you originally save monthly as a couple. It is important to be realistic about one’s needs if possible. Make sure to take into account how much you’ll be spending during your maternity leave. Be realistic about your needs with food and water. Create a ceiling and a floor amount of how much you really need. Stick with conservative figures to help yourself create a financial cushion for anything.

  1. Cut Back On Many Things

You’ll be surprised at the amount you could save if you put your mind into it. Consciously do away with every costly pleasure you have, and you would have increased your savings budget by 40-50% at most. Every purchase becomes well-thought out. Ask yourself if you really need the spending you’ll do for yourself than your baby.

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How to Hold Your Buy-To-Let Properties in a Personal Pension

Personal pension is exempted from taxes, and having your buy-to-let properties in there helps you reduce your capital gains tax. To have an extra windfall whether you are a small or big buy-to-let properties owner, here are a few steps you should take.

  1. Swapping

A fund called Mill Residential and other funds interested in earning portfolios of buy-to-let properties directly from owners and paying them with their own shares could help get your properties into your pension plan. You could choose to sell your buy-to-let properties and just buy shares from Mill Residential and other funds interested in the fund.

  1. The Nuances

It may seem that investing in a fund would mean a high capital gains tax. However, you could use your capital gains tax to receive an annual exception of £11,000 when you invest in these funds.

  1. The Transfer

Afterwards, you could transfer your funds into a self-invested personal pension. The SIPP operator will then claim basic-rate tax relief from the HMRC and you could gain a higher-rate tax relief through your tax return. Once the assets are in the SIPP, you have no liability with capital gains tax. Pension freedoms also allow you to take out money in the most tax-efficient way.

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Maybe You Should Consider Having Your Taxes Itemised

Itemised deductions will have the HMRC make reduced deductions on spending as the law prescribes. You could file your taxes in a standard manner but an itemised deduction provides the following features.

  1. Specific

For most Western and European countries, employers must shoulder employee travel expenses for business trips. Employees can declare these expenses as tax exemptions if it is not shouldered by their employers. Some other expense taxes may receive deduction if specified.

  1. Gets You Less Tax

For couples with children, a fixed amount of deductions is given because of their family size and responsibilities. Itemised deductions apply for all spending in the family. It also applies all tax laws to give you the deduction you deserve. Some households who had used itemised tax reductions saved more than 30% of their normal tax rates.

  1. Tech-Supported Capabilities

Developers have created smartphone apps to help individuals itemise their taxes. These apps will ask a few questions and create for you an itemised breakdown of your taxes. Most are intuitive and easy to use, saving you time and money, especially if you buy a well-made accounting app.

  1. Never Pay More Than You Should

It pays to itemise taxes to avoid tax overspending, which is most common in many UK households. Just pay what you are due. Itemisation puts your spending in perspective too, providing information you could use for developing a new, cost-efficient budget.

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What Can Make an Ordinary Person a Millionaire With Patience

Search Google for “Ways to Become Rich” and you would find a plethora of posts similar to this that would tell you that you, an ordinary person, could become as rich and financially intelligent as Warren Buffet and other leading millionaires and billionaires in the world. However, it is possible most people who search Google for these kinds of posts are looking for an easy way to get themselves rich, or probably things they didn’t know would make them rich. However, the formula to become rich is actually simple.

  1. Proportions

Wealth can be built if you have enough tar and blocks to build it with. Spending more than the money you earn never gives you anything to build on. The easy way to build wealth is to spend less than the amount you actually earn. However, it is also important that you spend money on things that will generate value over time.

  1. Value Vs. Savings

Putting your money in a 5% interest savings account will never make you a millionaire in a short time. But imagine having multiple savings accounts with a 5% interest will make your profits grow faster. But this is often not legally possible or feasible. The best bet for good growth in a short time is investing in the stock market, becoming an angel investor in a startup company, buying things that would become a trend in the future, and more.

  1. Value Vs. Savings Part II

The reason why most people lack wealth building capabilities even if they save money is because money devalues daily according to its economic situation. A currency’s value rises when overall export is high and local consumption circulates money faster than how international companies and imports do. As people have no direct control over these circumstances, money will deflate and savings could get slashed 10% of their original price annually or bi-annually.

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Three Vital Steps to Achieving a Financial Goal

Financial goals seem hard, especially when you are just in step one. However, most people are taken aback because they focus on the bigger picture before they start processing the smaller parts. The bigger picture is a motivation to do the smaller parts, and here are three ways to ensure you are on the right mind set about your money.

1. Working Towards an Accomplishment
Everybody wants to see their efforts rewarded and one cannot go wrong in working towards a better financial situation as it is rewarding in itself. Imagine yourself as a racer on the starting line. You will have to run in order to reach your goal. At times you will want to quit, but seeing your efforts rewarded is a great enough motivation for you to push on running.

2. Education
It is stressful to think about the smaller parts of an activity because of the tons of responsibilities you need to fulfil. However, viewing them as learning experiences and “things needing to be done” will change your view from stress to process. These meticulous parts will raise stress in you, yes, but it will also enhance your mind’s critical ability to use these learnings in the other aspects of your life.

3. Impossibility
Obstacles should not exist if one studies the details intricately. An overwhelming obstacle is an important challenge and it is not impossible, only doable. Doing it requires a good mind-set that everything is possible and win or fail, you can always try again soon.

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Several Crowdfunding Tips to Help Your Startup Find Funding

It is a common case that venture capitalists may not be interested and the money you collected from friends, family and supporters may not be enough to start up your small company. However, if you have enough money to build a prototype, or at least run your business model a single time, you could use that, and other strategies, to help your startup find crowdfunding.

1. Narrative
Before anything else, focus on your company’s story. Being the proprietor, your story is highly important. Highlight the goals of your company, the values and insights that led to these goals, the discipline needed to achieve such goals, and the feasibility of the goals for the long term establishment of the company.

2. Product
You will need a prototype of the product or service that your company will manufacture. In the marketing aspect of your crowdfunding campaign, it is not essential to show the product’s manufacturing process, or the service’s logistics. Features are more important in the marketing aspect, and showing its function is very important.

3. Medium
A video is an easy-to-consume media that will have to condense the aim of the product or service in line with the company’s objectives and values. Podcasts are also valuable, but only to share topic-specific information, such as the elaborate features of the product or service, probable future development, and more.

4. Accomplishments
Showing crowdfunders the accomplishments made using your product or services in an experimental setting (once again, through a video), will help motivate them to place investment in your company. It is important to show the data and facts in your marketing to show the potential future successes your product or service could achieve.

5. Bonuses
Higher contributions may be in the form of bonuses given to those providing a higher amount. Bonus material is special products, treatment or privileges that only higher contributors could provide.

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Retiring Early: An Easy Four-Step Guide

Anybody could retire from their profession as soon as they reach the age of 50-55 years old if they play their cards, and their savings right. It would be a dream to leave the rat race and become financially free before you even reach your mid-life crisis. That dream can be true if you follow the four steps listed here.

1. Semi-Retirement
Full time work leaves you tired and often strains relationships both at home and at work. If you retire from your job, you will have a smaller capital that you could invest in a new business. You could still gain income from a lighter workload that still offers employee benefits. It will help soften the transition at a very early time.

2. Stock Market/ Ventures
Investing in the stock market at an early age gives you the best option to retire early with only having to work a semi-retirement occupation that does not require too much effort. By educating yourself, you give yourself a chance to spend some of your income for the next 10-30 years of your life.

3. Passive Income
If you do not like the idea of semi-retirement, you could invest your money in real estate. Renting out properties makes it easier for people to earn passive income. You may be a landlord, but you will have enough money to call on repair teams if some parts of the properties goes bust. That’s better than a desk job until your 60th birthday, right?

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Things to Remember for a Good Retirement

For most of the “baby boomer” generation, it is almost time that they reached retirement. With just a few years remaining, it is essential that they know what to do once they get out of their profession and live life the way they want to.

1. Interests
Most retirees look forward to pursuing their interests finally now that they are done with their professional responsibilities. It is important that they have something positive to look forward to daily, and an interest is a good motivator. They can consider meeting with like-minded people or find it in creative solitude.

2. Finding the Right Elder Care Company
Retirees may be considered senior citizens, but they can still be ready to pay for and live in an elder care company. Retirees might find it difficult to find the right company in the near future as the markets move to produce multiple elder care centres. Here are a few things to remember to find the right elder care company.

3. Review Your Investments
During your professional years, it is important to see if your investments are working. Review them effectively and analyse if they are working towards your financial plan. Make it a point to adjust your savings, investments and other financial vehicles to ensure that you have a good retirement fund.

 

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Working on a Tight Budget Means Accepting Some Sacrifices

Money is a symbolism of power that a person has in society. With a better pay, a person gets more satisfaction because they have the power to afford certain luxuries. When you work on a tight budget, view that your power regulator could only support so many appliances, which is why you must cut off some appliances in your system.

A tight budget needs you to save at least 10% of your income and your miscellaneous items list is the first to be reduced. One can allocate 2% for the miscellaneous item in the budget. The miscellaneous items is money you could use to spend for other things, such as outings, vacations and other things. Your savings are dedicated to a financial objective you might have at the moment.

You will also need to make some sacrifices. Cutting down on car usage and using public transportation, while difficult and takes more of your time, is needed if you want a better budget for your savings and yourself. You may also have to go with budget meals instead of the usual.

Social settings may be the biggest sacrifice for people looking to work with a tight budget. You may not allow yourself to spend so much on social gatherings and you might have to say no to peer pressure with humiliating results. But then again, your survival, and your betterment, is guaranteed by your tight budget.

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Creating the Culture Creates the Need

In the internet, thousands of projects that require funding continue to conquer the internet. Kickstarter.com has a great share of these projects, with some pushing through, and some failing to get to their target amount. If you were to invest in anything today, innovators are all around. All innovators have grand ideas, but will their ideas develop a culture fit for mass consumption?

The motivating idea behind self-driving cars is that it brings up convenience to a whole new level. Imagine a vehicle driving itself to get you to work while taking into account fuel efficiency. Through connected car technology, cars can anticipate traffic and avoid them. A culture of luxury behind self-driving vehicles will exist, which will encourage more automakers to create new features that enhance already-existing ones.

Bitcoin continues to struggle in value because only a small fraction of the Earth’s population knew the coin actually existed. Governments and some investors detest the existence of the coin and warning the public about it, while some venture capitalists see many opportunities behind the digital currency. Yet, its safety is still in jeopardy. Recently, its biggest exchange center had been robbed with tons of coins.

Creating the culture means having people conform or find the product interesting. Why smartphones became trendy is because many people started using them and seeing the advantages. This is the same for any type of business, and if you are investing, this is what you should consider to make your money grow.

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