Business Financing
Small Business Financing: Collateral Lease Programs
What is a Collateral Lease?
A Collateral Lease uses your additional collateral in your currently owned hard asset equipment(see examples of these below) and/or your real estate equity, either in your business or your personal residence.
By utilizing this type of lease, you are not restricted on the equipment type being leased, your credit scores, or your time in business. Also, financials are usually not required with this type of lease since additional collateral is being provided to secure the lease for your new equipment.
Lease deals that can be helped by using a this type of lease program include some of the following:
*Traditional Asset-Based deals
*Sale-Leasebacks
*Private-Party Sales
*Start-Ups
*Working Capital
*Owner/operator Trucks
*Prior Bankruptcies
*Tax Liens
*Judgements
*Repossessions
*Slow Payments
If you have experienced any of the above and have been turned down by traditional banks and leasing companies then you need to take a cold hard look at how a collateral lease can help you.
A terrific way to use this type of lease would be during the start-up period of your business. During these tough times the banks are frowning upon lending money to start-up businesses, but if you are able to provide collateral a lease may be the way to go to finance your start-up equipment needs.
Another good idea is to use this type when you have a private-party sale. For example: You are selling a backhoe to someone who really needs it, but they don't have the ability to pay in cash and the bank is out of the question. If they have some collateral to put up against the amount needed for the lease, be it a hard asset or real estate equity, the deal can usually be done quickly.
Some of the best equipment that can used as a Hard Asset would be:
*Trucks and Trailers
*Construction/Yellow Iron
*Loaders
*Excavators
*Cranes
*Bulldozers
*Logging Equipment
*Machine Shop Tools
*Large Forklifts
Other types of collateral that can be used as additional collateral for this program would be: stocks, bonds, CDs, Mutual Funds, Non-Tax-Advantage Accounts and personal vehicles with a value greater than ten thousand dollars.
The above is just a sample of the equipment that can be used as collateral. This type of lease may work well for you if you have been turned down for traditional forms of leasing or financing. There are other types of equipment that can be used, but they are not as valuable as the lists above.
In these tough times you need to gain any bit of good financial knowledge that you can grab and this type of program can help assist you in these times when the banks and other lending sources tighten up their guide lines, but these are the times that you really need the money to get the equipment you need. This is a possible solution for you and is available for your business to use today.
Keywords:online,home,business,income,internet,wealth,success,profit,website,keys,marketing
1) Attitude--
One very important factor in running a business is your attitude towards it. You should treat your business like a business.
This is very important whether you work your business full-time, or part-time. A very close friend of mine, who is also a colleague, is a mother of 4 who works her home business around her family. In this case, she has put her family first, and at the same time, still been able to develop her business.She works part-time, but she has a full-time attitude. To put it another way, if you have a lacking attitude, you'll have a lacking income. However, if you have a business attitude, you'll have a business income.
Keeping your attitude in mind while running your business is one of the first steps to ensuring your success.
Being successful working part-time on your business, or working full-time, is more than achievable. However in saying that, it is highly unlikely that working in your "spare time" will achieve you success.
2) The Environment In Which You Work--
Keeping with the attitude principles discussed above, it is necessary to remember that while you are working from home, you should make sure that you have a space to call your own; your own "business at home" office, free from distractions.
Keep the theme going with a comfortable office chair, and a well laid-out and organized desk. Stationery supplies will also be of assistance, so be sure to include the following in your "home office":
- Pens
- Highlighter
- Hole Punch
- Stapler
- Sticky Tape
- Note Book(s)
- A system which will enable you to easily and efficiently store your physical files and documents.
- Ring Binders
- Manillia Folders
Do you have a fast internet connection? If not, consider the use of a broadband internet connection. Anything you do will take a certain amount of time, and your time is a very valuable assest. Faster internet means you will have more time for other things.
3) Schedule--
Dividing up your spare time between your business, your family, or your "significant others" will require a carefully planned schedule. Just like office hours in which you would work, when you allocate time for work, make sure that you work during this time. Equally important is to make sure you have time for other commitments - time with your family, exercising, education, and leisure time are all equally important factors in your life. Its also a good idea to keep in mind why you are doing what you are doing. For example, if you are starting your home business to spend more time with your family, you don't want your work time consuming valuable family time.
With a home business, the only "boss" you have is yourself and your schedule. Lets say for instance that you are working during your allocated work time, and you have unexpected visitors, or people calling you. You have to make a choice; are you really committed to running your own business? Are you committed to business success? Your choices in these types of situations will govern whether or not you have a "business attitude", or a "hobby attitude".
However, you may need to adjust the way you make your choices. This is especially true in a family environment. In this instance, it may be necessary to discuss with your partner and/or children an agreed period of time which is classed as business time, in which you will not be interrupted. It may also help to print or write down this schedule and place it somewhere prominent so as to inform all family members of your work schedule.
4) Describing Your Business--
Make sure that when asked about your business, you are able to describe it concisely; a strong and powerful one or two sentence about your business that someone can repeat easily about describing your business to others. A company slogan or "tag line" can also be invaluable for promoting your business; take the time to create a unique and memorable tag line or slogan.
5) Knowledge Of Your Services Or Products--
You now have your product and your service in which you sell, whether or not you actually use your product or service you sell, it is a wise decision to make sure that your knowledge of your product or service is intimate and well-founded. For instance, if you sell ebooks, then ensure you know the content and the value in which it holds; if you sell software, ensure that you know how it works, "inside and out". In doing so, your reputation will develop as someone who provides quality information about a product or service, and because of this knowledge, you yourself can become a preferred supplier.
However, it may not always be practical to use certain products (as an example, a man may choose to sell wedding dresses), in which case the seller wouldn't be a product or service user, though in saying that, the seller can still have extensive knowledge of the product or services benefits and features.
6) Administration--
It is essential to implement good record keeping practices.
This can include tasks such as consulting a tax advisor who can advise you on the best and most optimal way to set up and store your financial records, as well as which records need to be kept. In addition, your advisor could also recommend record keeping systems which can help you in achieving a more efficient and simpler means of organizing this aspect of your business.
You may also be told advice on the most effective arrangement and set ups for your banking necessities. In doing so, you will most likely be advised to seek out separate bank accounts for your business.
If you use various logins, passwords, and usernames, it would be a wise decision to keep track and store this various information.
The tools and methods in which you track these are varied; from a simple paper notebook to free and commercial software.
7) Protection For Your Computer--
Your computer houses all your important business data, and is also the lifeline of your business dealings. In saying this, it is vital that you protect your computer.
Pieces of software such as virus scanners, personal firewalls, anti-spyware and adware, and even an email scanner, should all be implemented to help with the protection of your computer.
8) Obtaining A Domain Name--
For any home-based, online business, it is more than just essential to have a domain name for your business, it is vital. There are many domain registrar companies out there. Take your pick.
9) Processing Of Your Payments--
Any online business will need to the ability to accept payments. Payment processors such as Paypal, 2Checkout, and Clickbank, all offer multiple ways to accept payment, including the ability to accept credit card payments online.
As an online business just starting out, this is the most effective, efficient, and economical way to get started in accepting online payments. As your business starts to grow and develop, it may be necessary to look into obtaining your own merchant account for transactions.
Also, it may be worth while taking into account other forms of currency online, such as e Gold.
10) Email Accounts--
The more professional and trusted your online home business appears, the more likely your customers are going to do business with you. One of the most easiest and simplest ways to do this, is to use an associated email account. After obtaining your own domain, it is possible to create your very own associated email account.
Final Comments--
In finishing, I'd like to leave you with the following comments regarding the running and owning of your internet business. Conduct your business ethically, ensure that your customers receive the best service, and be proud to put your name to the products and/or services that you sell, and you will soon seen the fruits of your efforts. Taking into account this last statement, and the above 10 key points, you'll find yourself on track to developing a trusted, professional, and sustainable long term internet business.
Keywords:HOME business finances,financial,money,entrepreneur,small business owner,bills,credit cards,online banking,checkbook,overdraft protection,accounts,accounting
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
Would you like to start your own home business but do not have the money for it? Well, you are part of a club with many members. You may think getting money for a business can be a monumental task. However, it does not have to be. If you anticipate and plan for as many expenses as possible you may want to consider using a credit card to finance your home business.
One of the easiest ways to get a loan for your home business is to apply for a credit card account. It may not be the answer you are looking for. However, credit cards are easy to receive if you have decent credit. Plus they are very flexible in using for spending purposes. Consider these three reasons for using a credit card for your home business.
The most important reason about having a credit card for your business is you get to keep your cash assets. Even though there is a risk of acquiring debt, you still get to keep your cash in the bank for a rainy day. I find this a very valuable benefit because you keep your family’s money in tact and reserved for family needs. Your savings will continue for its original intentions (i.e. college money for kids, school clothes, etc.).
Another benefit is that Credit Cards have itemized statements of purchases. This is great for keeping track of money you spend on your business. The itemized statement provides proof that the Credit Card is being used for business expenses. Also, if you use the credit card for all of your purchases you can easily report expenses when tax season rolls around. Payments made that are shown on the statement is proof where your businesses money is going.
Finally, and this is my favorite reason, you have increased purchasing power with a credit card. You can use a major credit card to purchase items almost anywhere in the world. Having direct access to the funds is much more flexible than a loan. This also provides flexibility in time management because you can use the credit card to purchase items at your convenience if you have internet access.
The downside to this is that the credit card minimum payment will be an additional expense. Also, credit cards are a very easy way to acquire a lot debt for yourself if you are not careful. Always practice good and sensible spending practices. Once you start a home business it is very exciting time in your life and you may want to spend money on lots of things that you think you may need.
Always think of the basic needs of the business first. I tend to be very frugal with spending on a credit card then I do with cash. One way to curb spending by asking yourself, “Does my business really need this item right now?” Give yourself an honest answer and empower yourself to cut down on impulse buying.
Try to think out of the box when getting funding for your home business. A credit card to fund your business start up expenses may make things easier for you. Also, there are many offers for low interest credit cards for a specified time period. So, if you need a few thousand dollars in capital to start and sustain your business for a while then credit cards may be the answer to financing the start up costs your home business.
Keywords:how to make a budget,household budget,home budget,budget spreadsheet,budget plan,personal budget
Budgeting money is something of a neglected necessity in the modern world, with so many people lured into spending regardless of their financial situation. It has become almost the norm to spend each month more than is earned, often without even knowing it. This has led to severe debt problems for millions of people in the US and UK in particular, and an encouragement and acceptance of ignorance in personal money management.
Despite all the bad debt write offs, the banks and other lenders are happy with the situation. They build the risk factor of bad debts into their interest rates to ensure overall profitability, so borrowers are paying for the collective lack of ability to budget properly. Yet, budgeting is easy, so it is baffling in some ways that many people are unsure how to budget money.
Being able to budget your own money is a bit more than listing your incomings and outgoings each month, quarter, year, or whatever period you need to budget for. Yes, you must go through the listing process, and then keep an eye on both sides of the equation constantly. But there are other factors in home budgeting, and that is what this article is about.
The Greatest Incentive
To encourage yourself to budget money is important, as without the motivation, you will probably not budget that well. What incentive can there be to having a home budget and sticking to it? The answer is actually quite simple. Nobody becomes rich by spending more, or even the same, each month than they receive. Wealth grows from surplus; that is, the surplus left over at the end of the month after you have completed your spending.
Recognizing this can provide you with a kick start in wanting to learn how to budget money, and then put that learning into practice. Once you start to see those surpluses build, your confidence in wealth building, and incentive in budgeting, will grow.
Keeping Detached
It is important when budgeting to maintain a detached view of the figures. Think of yourself as a finance professional helping a consumer set and manage a home budget, and set yourself aside from any emotions that may seep out during a review of your budget. Some parts of the budget can arouse emotions, and thus distort sensible decisions. Things like cutting out a family holiday or weekend trips, that new bike for your son or designer outfit for your daughter, can be emotional sparks. It is important not to allow those sparks to set light to your well drafted budget.
Be Open
If you have a family, the household budget affects those closest to you. The budget is a family affair, and it does help to talk openly about it with your spouse and children who are old enough to understand. Children may not like sacrifices, but they will understand eventually. It can be an important part of their education if you involve them. If you can give them some incentive, too, such as building their own savings scheme into the budget, then they may even start to enjoy it and truly see the benefits.
Ignore Peer Pressures
Your personal budget is simply that, personal. It is therefore something you should see in the context of your own circumstances, not somebody else's.
To budget your money effectively you really need to be able to ignore peer pressures that may force you into unnecessary or unwise spending. Just because your neighbour or best friend is having two foreign holidays this year does not mean you need to also. Just because your brother or other relative has a new home cinema system does not mean it is essential for you too.
If you can let peer pressure run off you, like water off a duck's back, then you have made a big breakthrough in learning how to budget money.
Those are just a few of the other factors that come into play in learning how to budget at home, but they are all worth considering as you focus on your in comings and outgoings while home budgeting.
Keys That Every Home Based Business Owner Should Implement For Success
Keywords:online,home,business,income,internet,wealth,success,profit,website,keys,marketing
1) Attitude--
One very important factor in running a business is your attitude towards it. You should treat your business like a business.
This is very important whether you work your business full-time, or part-time. A very close friend of mine, who is also a colleague, is a mother of 4 who works her home business around her family. In this case, she has put her family first, and at the same time, still been able to develop her business.She works part-time, but she has a full-time attitude. To put it another way, if you have a lacking attitude, you'll have a lacking income. However, if you have a business attitude, you'll have a business income.
Keeping your attitude in mind while running your business is one of the first steps to ensuring your success.
Being successful working part-time on your business, or working full-time, is more than achievable. However in saying that, it is highly unlikely that working in your "spare time" will achieve you success.
2) The Environment In Which You Work--
Keeping with the attitude principles discussed above, it is necessary to remember that while you are working from home, you should make sure that you have a space to call your own; your own "business at home" office, free from distractions.
Keep the theme going with a comfortable office chair, and a well laid-out and organized desk. Stationery supplies will also be of assistance, so be sure to include the following in your "home office":
- Pens
- Highlighter
- Hole Punch
- Stapler
- Sticky Tape
- Note Book(s)
- A system which will enable you to easily and efficiently store your physical files and documents.
- Ring Binders
- Manillia Folders
Do you have a fast internet connection? If not, consider the use of a broadband internet connection. Anything you do will take a certain amount of time, and your time is a very valuable assest. Faster internet means you will have more time for other things.
3) Schedule--
Dividing up your spare time between your business, your family, or your "significant others" will require a carefully planned schedule. Just like office hours in which you would work, when you allocate time for work, make sure that you work during this time. Equally important is to make sure you have time for other commitments - time with your family, exercising, education, and leisure time are all equally important factors in your life. Its also a good idea to keep in mind why you are doing what you are doing. For example, if you are starting your home business to spend more time with your family, you don't want your work time consuming valuable family time.
With a home business, the only "boss" you have is yourself and your schedule. Lets say for instance that you are working during your allocated work time, and you have unexpected visitors, or people calling you. You have to make a choice; are you really committed to running your own business? Are you committed to business success? Your choices in these types of situations will govern whether or not you have a "business attitude", or a "hobby attitude".
However, you may need to adjust the way you make your choices. This is especially true in a family environment. In this instance, it may be necessary to discuss with your partner and/or children an agreed period of time which is classed as business time, in which you will not be interrupted. It may also help to print or write down this schedule and place it somewhere prominent so as to inform all family members of your work schedule.
4) Describing Your Business--
Make sure that when asked about your business, you are able to describe it concisely; a strong and powerful one or two sentence about your business that someone can repeat easily about describing your business to others. A company slogan or "tag line" can also be invaluable for promoting your business; take the time to create a unique and memorable tag line or slogan.
5) Knowledge Of Your Services Or Products--
You now have your product and your service in which you sell, whether or not you actually use your product or service you sell, it is a wise decision to make sure that your knowledge of your product or service is intimate and well-founded. For instance, if you sell ebooks, then ensure you know the content and the value in which it holds; if you sell software, ensure that you know how it works, "inside and out". In doing so, your reputation will develop as someone who provides quality information about a product or service, and because of this knowledge, you yourself can become a preferred supplier.
However, it may not always be practical to use certain products (as an example, a man may choose to sell wedding dresses), in which case the seller wouldn't be a product or service user, though in saying that, the seller can still have extensive knowledge of the product or services benefits and features.
6) Administration--
It is essential to implement good record keeping practices.
This can include tasks such as consulting a tax advisor who can advise you on the best and most optimal way to set up and store your financial records, as well as which records need to be kept. In addition, your advisor could also recommend record keeping systems which can help you in achieving a more efficient and simpler means of organizing this aspect of your business.
You may also be told advice on the most effective arrangement and set ups for your banking necessities. In doing so, you will most likely be advised to seek out separate bank accounts for your business.
If you use various logins, passwords, and usernames, it would be a wise decision to keep track and store this various information.
The tools and methods in which you track these are varied; from a simple paper notebook to free and commercial software.
7) Protection For Your Computer--
Your computer houses all your important business data, and is also the lifeline of your business dealings. In saying this, it is vital that you protect your computer.
Pieces of software such as virus scanners, personal firewalls, anti-spyware and adware, and even an email scanner, should all be implemented to help with the protection of your computer.
8) Obtaining A Domain Name--
For any home-based, online business, it is more than just essential to have a domain name for your business, it is vital. There are many domain registrar companies out there. Take your pick.
9) Processing Of Your Payments--
Any online business will need to the ability to accept payments. Payment processors such as Paypal, 2Checkout, and Clickbank, all offer multiple ways to accept payment, including the ability to accept credit card payments online.
As an online business just starting out, this is the most effective, efficient, and economical way to get started in accepting online payments. As your business starts to grow and develop, it may be necessary to look into obtaining your own merchant account for transactions.
Also, it may be worth while taking into account other forms of currency online, such as e Gold.
10) Email Accounts--
The more professional and trusted your online home business appears, the more likely your customers are going to do business with you. One of the most easiest and simplest ways to do this, is to use an associated email account. After obtaining your own domain, it is possible to create your very own associated email account.
Final Comments--
In finishing, I'd like to leave you with the following comments regarding the running and owning of your internet business. Conduct your business ethically, ensure that your customers receive the best service, and be proud to put your name to the products and/or services that you sell, and you will soon seen the fruits of your efforts. Taking into account this last statement, and the above 10 key points, you'll find yourself on track to developing a trusted, professional, and sustainable long term internet business.
Easy Ways To Organize Your Business Finances
Keywords:HOME business finances,financial,money,entrepreneur,small business owner,bills,credit cards,online banking,checkbook,overdraft protection,accounts,accounting
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
Home Business Financing – 3 Reasons to use a Credit Card to Fund Your Home Business
Would you like to start your own home business but do not have the money for it? Well, you are part of a club with many members. You may think getting money for a business can be a monumental task. However, it does not have to be. If you anticipate and plan for as many expenses as possible you may want to consider using a credit card to finance your home business.
One of the easiest ways to get a loan for your home business is to apply for a credit card account. It may not be the answer you are looking for. However, credit cards are easy to receive if you have decent credit. Plus they are very flexible in using for spending purposes. Consider these three reasons for using a credit card for your home business.
The most important reason about having a credit card for your business is you get to keep your cash assets. Even though there is a risk of acquiring debt, you still get to keep your cash in the bank for a rainy day. I find this a very valuable benefit because you keep your family’s money in tact and reserved for family needs. Your savings will continue for its original intentions (i.e. college money for kids, school clothes, etc.).
Another benefit is that Credit Cards have itemized statements of purchases. This is great for keeping track of money you spend on your business. The itemized statement provides proof that the Credit Card is being used for business expenses. Also, if you use the credit card for all of your purchases you can easily report expenses when tax season rolls around. Payments made that are shown on the statement is proof where your businesses money is going.
Finally, and this is my favorite reason, you have increased purchasing power with a credit card. You can use a major credit card to purchase items almost anywhere in the world. Having direct access to the funds is much more flexible than a loan. This also provides flexibility in time management because you can use the credit card to purchase items at your convenience if you have internet access.
The downside to this is that the credit card minimum payment will be an additional expense. Also, credit cards are a very easy way to acquire a lot debt for yourself if you are not careful. Always practice good and sensible spending practices. Once you start a home business it is very exciting time in your life and you may want to spend money on lots of things that you think you may need.
Always think of the basic needs of the business first. I tend to be very frugal with spending on a credit card then I do with cash. One way to curb spending by asking yourself, “Does my business really need this item right now?” Give yourself an honest answer and empower yourself to cut down on impulse buying.
Try to think out of the box when getting funding for your home business. A credit card to fund your business start up expenses may make things easier for you. Also, there are many offers for low interest credit cards for a specified time period. So, if you need a few thousand dollars in capital to start and sustain your business for a while then credit cards may be the answer to financing the start up costs your home business.
How To Budget Money
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Budgeting money is something of a neglected necessity in the modern world, with so many people lured into spending regardless of their financial situation. It has become almost the norm to spend each month more than is earned, often without even knowing it. This has led to severe debt problems for millions of people in the US and UK in particular, and an encouragement and acceptance of ignorance in personal money management.
Despite all the bad debt write offs, the banks and other lenders are happy with the situation. They build the risk factor of bad debts into their interest rates to ensure overall profitability, so borrowers are paying for the collective lack of ability to budget properly. Yet, budgeting is easy, so it is baffling in some ways that many people are unsure how to budget money.
Being able to budget your own money is a bit more than listing your incomings and outgoings each month, quarter, year, or whatever period you need to budget for. Yes, you must go through the listing process, and then keep an eye on both sides of the equation constantly. But there are other factors in home budgeting, and that is what this article is about.
The Greatest Incentive
To encourage yourself to budget money is important, as without the motivation, you will probably not budget that well. What incentive can there be to having a home budget and sticking to it? The answer is actually quite simple. Nobody becomes rich by spending more, or even the same, each month than they receive. Wealth grows from surplus; that is, the surplus left over at the end of the month after you have completed your spending.
Recognizing this can provide you with a kick start in wanting to learn how to budget money, and then put that learning into practice. Once you start to see those surpluses build, your confidence in wealth building, and incentive in budgeting, will grow.
Keeping Detached
It is important when budgeting to maintain a detached view of the figures. Think of yourself as a finance professional helping a consumer set and manage a home budget, and set yourself aside from any emotions that may seep out during a review of your budget. Some parts of the budget can arouse emotions, and thus distort sensible decisions. Things like cutting out a family holiday or weekend trips, that new bike for your son or designer outfit for your daughter, can be emotional sparks. It is important not to allow those sparks to set light to your well drafted budget.
Be Open
If you have a family, the household budget affects those closest to you. The budget is a family affair, and it does help to talk openly about it with your spouse and children who are old enough to understand. Children may not like sacrifices, but they will understand eventually. It can be an important part of their education if you involve them. If you can give them some incentive, too, such as building their own savings scheme into the budget, then they may even start to enjoy it and truly see the benefits.
Ignore Peer Pressures
Your personal budget is simply that, personal. It is therefore something you should see in the context of your own circumstances, not somebody else's.
To budget your money effectively you really need to be able to ignore peer pressures that may force you into unnecessary or unwise spending. Just because your neighbour or best friend is having two foreign holidays this year does not mean you need to also. Just because your brother or other relative has a new home cinema system does not mean it is essential for you too.
If you can let peer pressure run off you, like water off a duck's back, then you have made a big breakthrough in learning how to budget money.
Those are just a few of the other factors that come into play in learning how to budget at home, but they are all worth considering as you focus on your in comings and outgoings while home budgeting.
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