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5 Smart Financial Practices That Can Improve Your Business

January 26th, 2021 Posted in Uncategorized
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One crucial thing to observe in managing your company is good financial practices. These can keep your business in healthy financial standing as every penny carefully invested adds to your net worth. Effective financial management involves planning, organizing, and controlling your assets. Economically running your business is even much more critical in this season of the coronavirus crisis, which has seen massive closures across several industries. Here are five smart financial practices that can improve your business.

5 Smart Financial Practices That Can Improve Your Business - calculator and finances image
Image by Steve Buissinne from Pixabay
  1. Know your day-to-day costs

The fact is that even the most lucrative business brands still face difficulties when they don’t have enough capital to cover their expenses, such as wages and rent. However, it is easier to run a business judiciously when you know your spending limits. Therefore, track your day-to-day costs for a reasonable amount of time and budget accordingly. 

  1. Get insurance for your business

Knowing that uncertainties abide in business, you may need to get insurance cover for your company. Most businesses sign up for insurance schemes because they cover the cost related to property damage and liability claims. And indeed, if you don’t have insurance, you may have to pay out-of-pocket for expensive damages and legal claims that are made against your brand. Insurance can save you time, money and protect your business. Even business owners like plumbers often have to get insurance due to the nature of their work. For example, a customer can claim compensation from a plumber if they cause water damage to a property. Do you need a plumber’s insurance? You can get a quote here and discover the many benefits.

  1. Ensure that customers pay you on time

Companies may run into major financial problems due to late payments from customers. To minimize the risk of non-payment or late payments, you need to clearly state your credit terms and conditions from the beginning. Issue your invoices on time and encourage your debtors to pay you accordingly. You can also look at how to use computerized credit management systems to monitor your customers’ accounts. 

  1. Boost efficiency and control your overheads

How efficient is your business? Boosting your productivity is one way to improve your financial wealth. You can further save money and energy by adopting changes in your business culture. Properly maintain your existing equipment and control your overheads. That’s a straightforward strategy to lower costs and effectively manage your finances. Areas to optimize your energy may include your heating and cooling systems, lighting, and office equipment.

  1. Spend conservatively

It can be tempting for founders to start spending haphazardly as soon as their business begins to earn them a little money. Unfortunately, this kind of behavior is counterproductive as it often leads a business to file for bankruptcy. You should rather try to spend less and save more. Hunt for discounts and find ways to minimize your large expenses. For instance, some utility companies provide rebates for business organizations that invest in energy-efficient equipment. Be smart with money, spend conservatively, and you will be rewarded greatly.

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How To Effectively Market Your Business During The Pandemic

January 23rd, 2021 Posted in Business, Entrepreneurship
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The pandemic has hit businesses hard all over the world since coronavirus reared its ugly head, and millions of businesses have been forced to close. Subsequently, millions more jobs have been lost because of this, causing financial despair all over the world. However, some businesses have managed to make it this far, and if you’re one of the lucky, then you’ll be looking for effective ways to ensure that your business survives this pandemic. Here are some tried and tested tips on how to effectively market your business during the pandemic.

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Photo by Oladimeji Ajegbile from Pexels

Understand how to effectively reach your target audience

We all know that there’s a diverse range of people using social media in this day and age, but not everyone does, and it’s important to remember that. If your target audience is the elderly, for example, you may struggle to hit your demographic through social media as much as you’d like. Instead, opt for mediums of marketing such as adverts in magazines, newspapers and television adverts so that you can reach your target more effectively. Conduct research on your target audience so that you can choose the most effective medium of reaching them.

Save time with a marketing agency

Effective marketing takes a lot of time and effort, and if you’re busy with other operations in your business, you simply might not have the time to do it. However, you can use a digital marketing agency such as Herdl for many of your marketing needs such as SEO, website design, hosting, and email marketing. After all, if you’re going to do something right, it’s best left to the professionals! While hiring a marketing agency might be an investment, it’s one you should seriously consider to help improve your business’ visibility.

Take to social media…

Social media is the easiest, fastest, and most cost-effective method of reaching many people in one go. Create stunning graphics and videos that show what your business has to offer, and post them on all of your social media platforms on a regular basis. You should also include a link back to your website so that it’s easy for potential customers to head straight to the product they’re after. You should also do some hashtag research to ensure you’re going to hit the right people with your content. Remember when posting anything on social media to stick to your brand image so that your business becomes recognisable through colour schemes, fonts, imagery and your logo. You’ll thank yourself in the future!

…and through that use influencers to raise brand awareness

Finally, influencers are more powerful than you think, and could be extremely valuable to your business. Reach out to influencers in your industry to see if they’d be willing to review your products or services in return for a review on their social media platforms. Their followers will naturally click through and buy your products! You may have to pay an influencer too, depending on their following, but it’s an investment that will eventually pay for itself through the sales you make.

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Parenting 101: Top 7 Ways to Start Saving for Your Child’s Future

January 23rd, 2021 Posted in family finance, Parent Advice
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Starting saving for your son or daughter’s future may seem overwhelming. However, it doesn’t have to be daunting, especially when you know how to do it. For starters, decide what you want for your children and the goals that you have for their future. You need to know the purpose of saving the money to determine the tips or ways of saving. You can use these saving tips for the college tuition, future medical expenses, general savings, or educational expenses of your child and secure their future.

Parenting 101: Top 7 Ways to Start Saving for Your Child’s Future - coin in piggybank image
Image by USA-Reiseblogger from Pixabay
  1. 529 Plans

Also known as a qualified tuition plan, 529 plans enable you to save for your child’s education while taking advantage of tax benefits. You can choose from prepaid tuition plans or educational savings plans, all under the 529 plans. The government sponsors the education savings plan. It allows you to open investment accounts for your kids who can use the funds for fees, board, tuition, or other higher education expenses. The prepaid tuition 529 plans allow parents to prepay costs and tuition at the current prices.

  1. Roth IRA

Opening a Roth IRA in your child’s name is an effective way of saving for his or her future. However, your child must have an income for this saving option. Therefore, it is an ideal way of saving for the future of your teenager. Your child gets tax-free money after retirement. However, Roth IRA is different from other retirement accounts because you can use the funds for qualified college expenses. Your child will not face an early withdrawal penalty, though they have to pay taxes on the earnings.

  1. Trust Funds

Trust funds are not as common, but they are a great way to save money for your child. You can set up a trust fund with any amount, though it doesn’t make much sense if you don’t have a large amount of cash. You should consult a lawyer to draw up the trust documents and appoint a manager. Trust funds are perfect for wealthy families because they provide more control over disbursements and protect children’s assets during a divorce. Factors like how long does a divorce take or whether you have to split assets after the separation don’t affect your child’s trust funds. Trust funds for your child’s future are protected from creditors.

  1. UTMA and UGMA Accounts

Another way of saving for your child’s future is opening a Uniforms Transfer to Minors Act Account. When the child attains the age of 21 or 18, the assets in the account are transferred. Your child then decides on how to use the funds. Therefore, children are not limited to qualified education expenses since they can use funds for discretionary purchases or other living expenses. The best part about UTMA or UGMA is that you can contribute any amount you want towards your child’s future. However, you cannot control how your child uses the funds, and tax benefits are not guaranteed.

  1. A Custodial Account

Opening a custodial account for your son or daughter is ideal for a broader savings purpose. The account doesn’t limit you to college expenses.  You can choose a custodial account to save for your child’s house or business once they become an adult. You fund and manage the account, but your child is the account holder. The pros of starting a custodial account for a child is that it doesn’t have restrictions as long as your child is the beneficiary. A portion of the account’s profits is tax-free, while the rest is taxed at the child’s income tax rate.

  1. Savings Account

Parents can opt for traditional savings accounts to secure their children’s future. However, the interest rates for savings accounts are low, and the interest is also taxed as income. The upside of opening a savings account for a child is that it provides a haven for the funds and secures a child’s future.

  1. Invest Account

You can secure your child’s college education through an investment account. You contribute any amount of money every year, and your child can use the funds for any expenses. That means that children can use the funds for college education of other uses. The money you save is invested in a diversified portfolio of ETFs. The level of risk is also minimal.

Conclusion

You can choose any of the above saving plans for your child’s future at different stages of your working life. The best way to set money aside for saving is to avoid impulse buying since every coin counts. Ensure that you educate your children about the importance of savings to secure their future.

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Six Ways on How To Build a Financial Legacy

January 18th, 2021 Posted in financial education, learning about money
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Financial legacy is the highest tier in financial success – the self-actualization in the financial world. It is the lasting financial security that a person’s generations experience. It takes tough grind and consistency to realize this feat – it is not an overnight accomplishment. You need to grasp financial basics and use them to grow your wealth.

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Financial Foundations

There is no legacy without foundation. A good financial foundation is based on sound financial education. Financial education is quite underrated. It should begin at an early age where you instill good financial values. Financial education is the duty of both the parent and the instructors. Parents need to emphasize its importance as the kids will carry on their legacy. They need to learn financial management, saving, and investment in their youth. The parents should also teach about damage control to handle any mishaps with confidence and assurance. They should take time to enlist the practical help of their children to be their mentors in financial success.

Numerous Sources of Income

Having multiple streams of income boosts your earnings. It enables you to increase your savings and investment allocation. It allows you to dedicate some of your funds to asset-acquisition projects to multiply your wealth. It also provides financial security if you lose your job. It provides reliability and assurance that cushions you during tough economic times.

 Financial Management

To succeed financially, you need to learn how to take care of your funds. You must know the basics about loans, savings, investments, and their relation. The timing in getting bridging loans or business loans to finance your investment or when to get a mortgage is critical in any financial journey. It would be best if you got a mentor who will guide you in your financial course.  A mentor who will help you stay focused during moments of tremendous pressure. You will also need to be precise in your decision making as any decision made will directly affect your finances.

Saving Culture

Saving is not a matter of putting away extra coins or notes for a rainy day. It is about discipline, focus, and the ‘save to invest’ mentality. Most of the time, you buy piggy banks for savings without setting your end goals. It would be best if you taught the saving culture as a journey, not a destination. The money saved should be channeled to financial advancements.

Investment

Investment is anchored on asset acquisition. Wealthy people are mostly valued using their net worth: the total worth of their assets less the liabilities. It shows that assets are the building blocks to any financial success. Research your proposed investments to know their viability in the market. The investment choice will establish your R.O.I. – earnings from the investment. Always set your investment goals with a fixed duration of time.

In Repetition Lies the Secret of Success

Financial success is a product of good financial decisions executed perfectly. It is a continuous process that needs hunger and commitment to surpass your expectations.

Believe in yourself, be consistent in your actions, and you will be sure of your success!

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Important Things To Consider When Hiring A Lawyer

January 16th, 2021 Posted in Money Tips
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There may never come a time in your life when you need a lawyer, and this is probably the case for most of us. A lawyer can be used for many types of cases but most people will never need to hire one for themselves. 

However, if the time does come and you need to hire a lawyer for a case, you need to know what to look for. Lawyers can be piranhas if you choose the wrong one and you need to take the selection process of a lawyer very seriously in order to make a good choice this year. 

Today we want to talk to you about some of the important things to consider when hiring a lawyer. 

Important Things To Consider When Hiring A Lawyer - handshake image
Image by Nappiness from Pixabay

The type of case 

The first thing to consider before you hire a solicitors is the type of case you have on your hands. If you have a divorce to put through this will be a job for a family lawyer; whereas compensation for injury will be for a personal injury lawyer to take care of. Make sure you choose a lawyer that specialises in the right area of law because if you don’t do this they won’t be able to represent you to the best standard. Think of law like medicine – there are many different avenues to take and it is likely that a foot doctor won’t be versed in how to change the valve of a heart. The same applies to lawyers which is why you should find a specialist. 

Your budget 

Budget is a huge factor when choosing a lawyer and when doing just about anything. When looking for a lawyer it is important that you have a budget in mind and ensure that you only shortlist lawyers that fall within the range you want to pay. Be sure to not simply choose the cheapest or the most expensive before you speak to them though because the money they charge will not always reflect their quality. Take price into account but don’t allow this to be the be all and end all of your decision making. 

Their size 

The size of a law firm says a lot about them and it is something you need to consider. A very small law firm might not have the man power to provide your case with enough time and energy and you may not get the best service. A massive law firm might not have that personal touch that is required for certain cases and may treat you just like another number. Finding the happy medium between both of these things is important because you want a capable law firm but one that is willing to care about your case for you. 

Their personality 

Always have a face to face meeting with a lawyer at their office before you make a decision on whether or not to hire. Not only will you be able to see their facility and their resources when you go for a meeting but you can see what kind of people they are. The last thing you want when working a case is a lawyer who is cold and arrogant and seems to care about nothing but themselves. The personality of your lawyer is important because you will be liaising with them a lot and you need to build a rapport where you feel comfortable with them.

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