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Category Archives: Finance

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.

Quickly Earn Extra Money

One of the easiest ways for you to make money is to sell something that you no longer need. Most of us have items lying around the home, in our garage or perhaps in our closets that we are not using any longer. Yard sales can be utilized to sell those items in a weekend and you will typically find that you are making anywhere from several hundred to a couple thousand dollars.

Of course, it is going to take some time for you to put those items together and then you will use a weekend actually having the yard sale. It can be quite rewarding, however, if it is done properly.

If a yard sale is not something that you want but you still have items that you would like to sell, you can do so on the Internet. Websites such as eBay and Craigslist can help you to sell those items and to make a tidy profit. Depending upon what you are selling and how long you plan on running the ad, it may take you anywhere from a few days to a week or longer to get the money that you need. You are also going to need to take the time to put those items online and that also involves a certain degree of technical knowledge. If you take your time and look at some of the tutorials that are available, you would be surprised with how easy it is to sell your items on the Internet.

Do you have any jewelry around your home that you would like to sell? You can sell Tiffany jewelry, sell diamond ring parts or even sell broken gold chains. The jewelry market is rather big today and the price of gold just continues to go higher. If you sell these items, you can expect to put some cash in your pocket almost immediately. The amount of money that you can make will vary from one place to another so it is a good idea for you to shop around a bit before you actually sell those items.

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.

About Handle Money

First things first. You just gotta KNOW. Financial freedom is a conscious state of living–no more mindless spending!

You must know three things:

  1. What you have
  2. Where you have it
  3. Where it goes

Sit down and figure out exactly what income and assets you have and where you have them. Then identify all of your liabilities and expenses. Where is the money going each month?

Until you know, you won’t be able to act in choice. This gets to the issue of “WHO you want to be around money”. Do you want to be someone in control? Or do you want to be someone who AVOIDS money issues?

Create a budget

Once you know what’s currently going on, you can then set up your plan for what will go on from this day forward. This will be your budget.

I challenge you to write your budget differently than most financial plans will. I want for you to have a VALUES CENTERED plan that allows you achieve what you want to accomplish, regardless of your income.

  1. First, list those things in life you MOST VALUE. (things that lead to fulfillment)
  2. Then list the things you NEED to be at your best (that bring satisfaction).
  3. Then list the things you WANT (that bring gratification).

Put a plan together that support you in directing your money where your VALUES are first. Then put money toward your needs and priorities. Finally, you can fund the “wants”. Many people do it backwards…wants first, then needs, then values –which usually leads to feeling dissatisfied and unfulfilled because there isn’t enough money left to put things away for what you most value. And that creates inner conflict–and drives up the spending on wants (which never solves the conflict).

For example, if you value creativity, your financial plan should put a percentage of your income into ways for you to express creativity. If it’s adventure, are you saving for special trips and adventures? If you value learning, are you budgeting for more opportunities to grow and learn or are you saving for your children’s learning? If you value security are you saving for your future retirement and emergencies? I’m not saying go wild here. But if you put just 5-10% of your income toward your top few values you will notice a much deeper level of fulfillment in your life.

If you find a shortfall between your income and your spending, what can you do?
Well, it’s a basic math issue–in order to achieve your financial goals you have to make more than you spend (or spend less than you make!). Your three options are:

  • Figure out ways you can spend less
  • Find ways to make more
  • Do both

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

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”.

Throwing Your Money Away

If I had just sat down and thought it through for a few minutes I would have saved myself a large sum of money. Also, if my bank manager had my true interests at heart, he would have explained this simple principal to me. But if he were to do that, my gain would take from the banks profits.

The simple Maths. My Loan was costing me 9% and my savings earning me 3.2%. If I had simply put my $400 extra towards repaying the loan every month here is what would have happened.

I would have decreased the term of my loan substantially and as well as paying off the loan early I would have saved approximately $2,200 in interest repayments. If I had continued the saving scheme, I would have earned interest of $683. That means I would have been $1,520 ($2,200 – $680) better off if id concentrated on repaying the loan.

That’s $1,520 I wasted. As foolish as my mistake was, the sad fact is, a huge number of people are doing the exact same thing. People are putting money away for their future, kids education etc, while also repaying high interest loans, consumer debt and credit card debt.

I was fortunate in that my loan was only over five years, yet people go through most of their life saving this way. Over 20 years my loss would have compounded to 10’s of thousands.

Now I’m not saying by any means that banks and loans should be avoided. Even the mega rich get loans. The difference is, they can make the loans work to their advantage. The points I’m trying to bring across is that one should pay close attention to how they repay their loans.

Keep in mind that your bank will bring out new products every year, saving plans, pension schemes etc and their staff are often given huge commissions when they sell the products.

Free Unclaimed Money

When an owner of property forgets or fails to claim forgotten assets over a specified number of years, the assets are put into something known as a period of dormancy in which the custody of these assets are then transferred to a trust waiting to be claimed by the rightful owner. The unclaimed property most often turns out to be in the form of money or property that is not claimed will be waiting to be claimed by the rightful beneficiary or next of kin.

There are even lawyers who actively seek out and search those entitled to large sums of unclaimed assets and missing money hoping to cash in on the action as a middle-man.

Unclaimed life insurance policies go unclaimed when heirs fail to notify insurance companies about a deceased relative. Therefor no legal assistance has been made to carry over any unclaimed money to the proper beneficiary.

You might be one of the many thousands of Americans entitled to collect unclaimed and missing money on behalf of deceased relatives who left without a legal document disposing of assets properly.

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.