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Debt is a dirty word to a lot of people. In our personal lives, when we think of debt, we think of how to get rid of it as soon as possible. However, in business, you’re playing a financial long game. Sometimes, taking on a little debt is necessary for the long-term financial health of the company. So, how do you live with debt without taking over your life?
Always have a reason to borrow
Businesses should not be regularly using credit cards for small expenses. It’s an easy way to get caught in a debt trap if your finances take a sudden nose-dive. Rather, all use of credit and loans should be specifically aimed. Reasons to take out a loan include expanding with new real estate, purchasing equipment and inventory, and even to get through periods of poor cash flow. Don’t borrow unless you know exactly why you’re borrowing.
Budget for it
When you borrow, make sure you take very careful note of it. Immediately start budgeting for the payments you’re going to make back, and know how your debts balance with current income and cash flow projections. They should always be on your mind, in part. Otherwise, it’s easier than you think to lose track of them, rack up interest, and get in a dangerous situation.
Keep your credit healthy
The better your credit, the better the terms you can expect from loans. However, many people go into business with a line of credit that’s already unhealthy. What are they to do to get back on top of the situation? For one, small business loans for bad credit won’t only help you get the funding you need when you need it. Successfully sticking to the terms of the agreement can help you start building a credit history if you don’t have one, or can improve your score. That will make more favorable loans available to you in future.
It sounds like a given, but the truth is that unless you start learning the habits of responsible credit use, it’s easy to very irresponsible instead. For instance, use accounting software instead of keeping sums by hand so that the figures are always easy to track. Enforce spending limits on any cards you use. Document a spending policy for employees to follow to avoid charges going where they shouldn’t. Most importantly, keep it very strictly business.
Strategize for reductions at all times
Part of living with debt is being aware you have to constantly make moves to reduce it, especially if you use it often. Beyond budgeting to a repayment plan, this might also mean being aware of tools like debt consolidation to help you get more favorable repayment strategies.
Smart borrowing, realistic expectations, and debt-reduction strategies are going to help you be a lot more financially flexible. You’ll be able to invest when otherwise you couldn’t and survive tough times that would otherwise sink you. There are plenty of perks to sharing a business with debt from time to time.
Contrary to popular belief, creating a budget can be fun. As we get older we need to prioritize what we spend. It’s not fun in the short-term but in the long-term it’s rewarding. Planning allows you to create goals, pay off debt, contribute to an emergency fund and invest. Heed these steps now and you will be on the right track to responsible spending.
Make a list of all of your expenses starting with the most important. Essential expenses like rent, mortgage, debt and insurance are first. Next, evaluate your family expenditures like medical bills, groceries, babysitting and daycare. Compare your income accordingly. Does your income match what you spend? If you can barely keep your head above water every month, it’s time to cut back on spending or earn a second income. Hire a financial advisor to help you find a strategy to keep your budget on track. Ideally you should have enough money at the end of the month to contribute to an emergency fund and a retirement account. If you’re in good financial standing, a financial advisor can even help you invest in the housing or stock market.
- Minimize Unnecessary Spending
You may wonder where all your money goes at the end of the month. Without a budget, your paycheck will disappear into the ether. You’ll wonder why some months you have more money and other months you have less. This isn’t a good habit; reckless spending distracts from long term financial goals. To keep track of your spending use an old-fashioned checkbook or download a money management app like Wally and a savings app like Acorns. Wally is one of the best apps to track your spending habits and Acorn automatically invests the change from your daily purchases into your bank account. Download Wally and see how much your small expenses add up. You may be surprised; a hundred dollars can disappear quickly in a weekend. Try simple habits like making your own coffee in the morning instead of going to Starbucks or cutting back grocery spending. If you have enough wiggle room, prioritize the little things you want as a tradeoff for other expenses.
Goals move people forward. What good is money for if you don’t have something to strive for? For some it may be purchasing a home or car, and for others it may be a backpacking trip through South America. Wherever your interests lie, create a long-term goal to achieve. Plan your dream wedding on Pinterest or visit travel websites and dream about the possibilities. When you start dreaming, suddenly those small expenses don’t seem as important. Create a goal now and you’ll thank yourself in the future.
If you’re driven toward a goal and you want to get there faster, try earning some extra income on the side. Turn your knitting hobby into a small business on Et sy or walk your neighbor’s dogs for extra cash; apps like Wag allow you to create a profile to become a professional dog walker. If you don’t mind driving, Uber and Lyft are great avenues for extra income. Rent out a room in your home to AirBnB or tutor students on weekends. Technology has made it easier to put yourself out there so try something new and earn more money.
Budgeting isn’t all about restricting yourself—it’s also about rewarding yourself. Small rewards make budgeting worth it as you work toward a goal. The difference between rewards and frivolous spending is the way you plan it. Rewards are planned expenses. It may be a nice pair of shoes you budgeted a few months for, or it could be a weekend getaway with friends. Rewards make it easier to save and enjoy your new lifestyle.
Budgeting is a way to take control of your future. Beat the budgeting blues by following these steps now. If you need help reach out to a financial advisor or tax experts at a reputable company like Community Tax.
There isn’t a more appealing career than working from home. Picture the scene. You wake up, you roll out of bed, and you start work. You don’t answer to anyone but yourself, you get to choose your working hours, and there’s no need to wear business attire. In fact, most people tend to wear PJs. But, isn’t this just a pipedream for the lucky few? Nope, working from home can be your reality if you pick a lucrative job that you love. And, there are plenty of positions which fit the category.
Come on and take a look.
You don’t even have to ask the question because I know what you’re thinking. Yep, you are right – there are bogus survey schemes on the web. Obviously, you want to avoid these like the plague. Still, that doesn’t mean that every provider is a cowboy that isn’t going to pay. The truth is that there are plenty of decent outfits like Opinion Outpost and MySurvey. These businesses pay people a healthy rate, and they pay on time, which is why they are two very reputable companies. As long as you find one that you can trust, there is a lot of money to make.
Okay, so it isn’t an official job title, but there is no need to be official. Thanks to eBay and Decluttr, all you need to do is sell your old things to start the ball rolling. In today’s society, this tactic is more effective than ever before for a couple of reasons. The first is the internet. Before the World Wide Web, people had to shop in charity stores to find a bargain, which wasn’t very appealing. Now, online stores make it quicker and easier and negate the stigma. Secondly, retro things are in vogue because of the hipster culture. People will take your old belongings off your hands, and they will pay a lot of money in the process.
There is no need to sell physical items if you don’t have any taking up room in your closet. People think that to sell a product or service it has to be tangible. Well, that isn’t true because you can sell your knowledge. Hopefully, you will have knowledge and experience that other people lack. If so, you can offer to tutor them so as to pass on your wisdom. Music teachers make a killing from this very technique on a daily basis, and so can you. The trick is to think of skills you have that others want.
Sell Your Home
Don’t worry because there is no need to move. In this sense, ‘selling your home’ means selling the floor space. With the help of a site like Airbnb, it is easy to put the property up for rent. All you have to do is choose what your preferences and wait for the offers to flood in. For example, you can rent the whole house out for a few days, or just a single room. Whatever you decide, there will always be people looking to take advantage.
Making money legitimately is never easy, but it’s a lot easier with these tips.
Investing your money is never easy to do. There are plenty of things waiting to trip you up and make your life more difficult. The first step towards dealing with these things is to understand them and how you can contend with them. If you’re about to jump in and start investing, now is the time to think about these issues. Below, you will find details that will help you with each of the major challenges you’ll face as an investor.
The Speed of Change and Development
Things are changing and developing so quickly on the stock market these days. It’s hard to keep up with all of the things that are happening. This may be worse today than ever before. But it’s not a particularly new problem, and investors have always had to juggle these issues. It’s a big struggle trying to stay on top of all the trends and changes that are taking in place. If you can’t keep up with that change, though, you will end up worse off and your investments might not go as well as you would like them to.
Using the Right Tools
Next, you need to make sure that you’re using the right tools as an investor. The options are really varied and very good nowadays. There are so many things you can do to make sure that you are always on the right track and able to invest to the very best of your abilities. First of all, make sure that you’re using a platform that works well for you. If you don’t have the right platform within reach at all times, making changes and backing an investment will be that much harder for you. There are platforms that even use apps, so you can make changes on the go.
Weighing Up All the Options
Weighing up every investment option out there is a big task, and it’s something that takes time. You won’t be able to get the right investments and investment strategy for you if you don’t weigh up all the options and see where the best opportunities for you lie. For example, you might not want to invest in stocks and shares at all. If that’s the case, you might want to consider investing in properties. Browse Sky Five Properties listings on Palm Island, and look at other property options too. Think about every form of investing and try a little of each of them to find out which you prefer.
Dealing with Market Uncertainty
Market uncertainty is a problem that is hard to mitigate. You can’t always be sure how uncertainty will play out. Sometimes, it can be a short-term issue that resolves itself pretty quickly. But on other occasions it can have a bigger impact on your investments than you have anticipated. Finding a way to deal with that uncertainty and make sure that it doesn’t take over your investments and put you in a bad financial situation will be one of the biggest challenges that you’ll face. So, keep this in mind and try not to panic whenever uncertainty arises.
The overriding factor in any startup environment, aside from the location or the people you need, is the finances. If you evaluate your business plan in enough detail, you will understand how much money is needed in order to get the venture started with enough money to spare. This is a common misconception among smaller businesses, that if you start out strong you can keep the momentum. Unfortunately this isn’t always the case. If you run out of resources early on, you can run the business into the ground very quickly. Prior to starting your business officially, there are some things that you can prepare for, and all it involves is making lists.
These are what you will need in the long term. The fundamental items of equipment you will need, in other words, the inventory. From the machinery and tables, right down to the din 2093 spring, make an inventory of what you will need at the outset. These will consist of your starting assets, discounting the money you have in the bank. For each item, you need to make an educated guess of what each item will cost. If you really are not sure, either do some research or overestimate.
Different from an asset, as everything you purchase is not an asset. You can spend business money on expenses, for example, the cost of setting up your business website, or the cost to fix up your offices, or the salaries you pay your employees. Now you add the starting assets and the starting expenses together to calculate the vast majority of your starting costs.
Figure Out The Amount Of Money You Will Need To Begin
This is the last piece of the jigsaw. Knowing how much money you will need in your accounts for the first few uncertain months of the business will be the deciding factor in keeping the business afloat. Now, there are different ways to do this. A lot of people would say that you need to cover 6 months of expenses, maybe 12 months, but the best way would be to estimate the sales, the expenses and the costs of the sales and expenses over the first year. You may wish to create a sales forecast to help guide you.
What you should now have is a list of 12 months with the costs, expenses and estimated sales for each individual month. The costs and the expenses are then subtracted from the sales for each month, you should then see if you are short of money or not. Using that, you can then start to see how long it will take for you to break even and how much cash you are lacking in. The amount is what you need to have behind you as the total starting cash for the business.
The great thing about this method of calculation, is that if you have not had a business plan put in place, this will be a starting point for you to make a business plan! Get prepared, by understanding your additional costs!
A new virtual currency inspired by Kanye West is set to be launched, and has been dubbed Coinye West.
The rapper is not involved and has yet to comment on Coinye West’s inception.
Coinye West will follow in the footsteps of Dogecoin, another virtual currency based on the popular Doge meme.
The value of Bitcoin, the most famous virtual currency, peaked at over $1000 at the end of 2013, but is currently worth around $850.
Various alternatives to Bitcoin have sprung up, such as Litecoin, Namecoin and PPCoin.
Virtual currencies are often linked to the purchase of illegal items, namely drugs, thanks to transactions being extremely difficult to trace.
However, more humorous currencies like Dogecoin are used for more tongue-in-cheek transactions.
One user, posting on Dogemarket, a section on popular link sharing site Reddit, offered Dogecoins in exchange for ideas to name a company.
Coinye West will be launched on January 11
“I thought the whole Dogecoin thing was interesting,” said Jeremy Bonney, from virtual currency news site Coindesk.
“It grew into something somewhat legitimate. There are people that genuinely believe in it out there.”
The makers of Coinye West have lofty ambitions for the currency which they described as a “cryptocurrency for the masses”.
Speaking anonymously to music site Noisey, they said: “I can picture a future where Coinye is used to buy concert tickets, with cryptographically verified virtual tickets, and other ideas I can’t give away just yet.”
They said they planned to give away a number of Coinye to early users when the currency launches on January 11.
“It will get people who are on the fence interested and help them to start using the currency, and we hope they’ll share it with their friends, too.”
However, one Bitcoin expert urged caution in investing in new virtual currencies that were as yet untested in public use.
“There’s been a number of people who have put out ‘joke’ currencies in the past,” said Johnathan Turrall, chief technology officer at Metalair, a cryptocurrency start-up based at the University of Sussex.
“There were some coins in the past that seemed to be a <<pump and dump>> operation.
“In one case, the original developers launched on obscure websites, but when they took it mainstream, and the price spiked, they sold up and disappeared. Estimated earnings in one instance were $800,000.”
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Canada, a very large country, is a haven for real estate investors. The country is composed of ten provinces and three territories. If you are considering an investment in the real estate sector of the country, you can definitely expect a sizeable return of investment (ROI), taking into consideration the fact that Canada is a highly developed country, and there are plenty of investors who want to gain a foothold on the very promising Canadian Real Estate sector. Because of the very large expanse of land area comprising the territory of Canada, investors should have a very keen eye for the right real estate investments which will definitely net them a high return of investment.
Image via Flickr
How to know the Potential ROI of a said Property?
A prospective real estate investor, before purchasing land, acreages for sale, or any vacant land, should take into consideration several factors. First, you have to calculate and have good data on the annual income of the real property. Likewise, you should know the cost of all potential taxes and mortgages relative to the property. These numbers will definitely give you an overall idea of the possible return of investment from buying the property.
The formula for this is quite simple. You have to calculate the total amount of income you will get from a property; then, you should divide this total by the sale price of the property.
Likewise, one should know the Debt Coverage Ratio (DCR) involved in a property. Usually, the Debt Coverage Ratio (DCR) is calculated by dividing the Net Operating Income by the Annual Mortgage Payments. The minimum acceptable DCR is 1.25.
There are other ways you can get an idea of the ROI, like calculating the Cash-on-cash return (COC) by dividing the Cash flow of the investment before taxes.
Risk Management and Evaluation
Image via Flickr
In order to diminish the risk involved in any prospective real estate investment in Canada, one should be able to mitigate the risks involved or do a risk management and evaluation. Say for instance, you would like to purchase a property in Toronto; then, you should be wary of the different risks involved in the investments to be able to mitigate the risks involved in your investment.
Some of the risks involved in purchasing a property include fraudulent sales, adverse possession, building component failures, cash shortfall, economic downturn, market decline, and many more. A good and wise prospective buyer would take into consideration all these potential risks to diminish and mitigate them, and at the same time, be able to recuperate a higher return of investment from the property which one wants to buy.
Bright prospect of Real Estate Property Sales in Canada
In the recent years, the sales of recreational real estates are definitely rebounding across B.C., while residential property in Greater Vancouver are cooling and slowing down. There is a remarkable 22% rise in sales of recreational property in B.C. While vacation home prices likewise are beginning to peak up.
National home sales in Canada rose more than 0.6% from the months of March to April. Likewise, the Canadian housing market still remains in balanced territory. Moreover, the national average sale price definitely rose 1.3% on April. These statistics are good indications of the gradual rise in the sales of real property in Canada.
In the past two years, Toronto had suffered a relatively 36% decline in new condominium sales. These years include 2011 and 2012. There were an estimated 144 skyscrapers which are under construction in the late February in Toronto, Canada, which is comparatively higher than in any other part of the world. Yet, there is a remarkable resurgence in the sales of new condo units in 2013, giving prospective investors a positive glimpse of what could be a recuperating process in the return of investments in real estate properties in Canada. However, we could not help but think that the previous weakening of Canada’s economy—which is highly touted as an example of stability—may be an indication that Canada’s economy is in the process of stalling.
Amanda Bynes has been recently given full access to her millions and the troubled starlet is splashing the cash after deciding to stop saving, according to reports.
Amanda Bynes, 27, apparently demanded access to her money – including the funds tied up in investments – a few months ago.
A source told Radar Online: “While Amanda was growing up her parents and lawyers controlled all of her money, they put it away in investments so that she would be able to have it when she got older.”
Amanda Bynes has been recently given full access to her millions and the troubled starlet is splashing the cash
“Amanda made a lot of money starting with Nickelodeon and then other TV shows and movies, but she lived like a regular girl when she was young.
“However, a few months ago she demanded that she have complete access to all of the money so she could spend it, not save it anymore.”
She recently told In Touch magazine that she is as rich as the Olsen twins, Mary-Kate and Ashley, who are believed to have a net worth of $300 million.
However, according to sources, in reality Amanda Bynes “is worth $5 to $6 million”.
“Amanda knows she has a lot of money. Before she wasn’t restricted from getting to it, but a lot of it was tied up in investments and banked for her future, but she insisted that she be able to use all of it as she sees fit and there is nothing anyone can do to stop her from spending it all,” the insider told Radar Online.
“Amanda can do whatever she wants for a while with all of her money but it isn’t going to last forever if she spends the way she has been lately,” the source added.
“She’s rich but she could find herself in financial trouble pretty soon.”
Amanda Bynes’ unusual antics include regularly professing her love for rapper Drake which she did once again on Tuesday.
She posted a link to an image of Drake on her Twitter page along with the words: “Loving far apart eyes @drake.”