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Preparing Your Kids to Eventually Succeed You in a Family Business

July 11th, 2017 Posted in Entrepreneurship, Money Tips
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Preparing Your Kids to Eventually Succeed You in a Family Business - family image

Even though running a budget of a family business and running a household budget are in no way the same thing, they are more than closely related. In a way, the way in which you handle your family finances reflects the way in which a family business is governed. First, you start with one generation (the parents) who are in charge of running the household/company and then proceed to pass on the baton to their successors.

At first, children or earning young adults are in charge of no more than slightly contributing, while in time they might start to play more vital role in the decision-making process as well. With this in mind, here are a few ways in which teaching your kids about household chores and budget might prepare them to take your place in the family business when the time comes.

1.      The division of roles and responsibilities

The first obvious connection between these two notions is reflected through the issue of roles and responsibilities. Each family member gets assigned tasks that are in accordance with their abilities and experience. For instance, you wouldn’t expect a 10-year-old to do the entire grocery run, but you might ask them to clean the bathroom, wash windows or even wash the car. Nonetheless, once you start adding these responsibilities, you need to give more recognition to your child in order to keep them motivated. Otherwise, you might make them feel underappreciated, which might discourage them from taking future initiative within the company.

2.      Start early

Another thing you need to keep in mind is that the age of the child (we used in the previous example) is not the best indicator of the part that they should take in the company. Corporate experience is a much more reliable factor. Of course, we are not suggesting you should push your child in a company business before they are ready or exploit child labor. Still, you could have them run some business errands during weekends or breaks at quite an early age. In this way, you can include them in the numerous processes of your business and have them learn about the company from inside.

3.      Use the perspective of their generation

From these menial positions, they will later advance to some more delicate administrative tasks and in time even advance to a decision-making position. You see, the generation Z (the post-millennials) tends to be much more hyper-connected to the world and therefore might have some radical new ideas your company as a whole might benefit from.

For instance, you might ask your teen about the advice surrounding your company’s social media campaign, especially if their peers are one of your target demographics. Next, you might consult them when inquiring about LED lighting solutions for your business and see where they stand in this regard. Having someone else (someone adult) actually need their opinion is definitely going to make them feel appreciated.

4.      Teach them the value of money

Finally, one of the most important lessons that any parent can teach their child is – the real value of money. By introducing them to a family business you can show them where your family’s income comes from and in this way demonstrate that there is a finite amount of it that needs to be managed carefully. Next, instead of giving them an allowance, you can give them a ‘salary’ for all the hard work they invest in the household and family business. In the end, make sure they know the difference between emotional and rational purchases and in this way nurture healthy spending habits. They will need this as both adults and future management of your company.

A lot of young people whose parents own family businesses feel the urge to abandon it and start something of their own. This, however, most commonly happens due to a mistake in the attitude that these parents sometimes assume. You need to make it clear from the very beginning that the company in question is not ‘mine’ but ‘ours’ and that they are the part of it from the moment you start it. Even if they are too small to serve as its active part, these children are probably the motivator of its existence. It is your job to make them feel this way, as well as to prepare them for all that is to come.

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40 Tips To Avoid (And Manage) Being In Debt

July 11th, 2017 Posted in Money Tips
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40 Tips To Avoid (And Manage) Being In Debt - debt prison image

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If you find yourself in debt, or are heading in that direction – it’s not a nice feeling. The stress of debt can have a huge impact on your daily life and how you live it.

Luckily, there are plenty of tips that you can add to your lifestyle that will prevent this from happening. Some may be better suited to you than others, so have a read through and see what works best for you.

  1. Use cash for all your purchases instead of your credit card. Leave that to pay for your house and your car.
  2. When you get paid every month, put away 60% of your earnings into a savings account, and keep the 40% to do with what you wish.
  3. Make a proper spreadsheet with all your monthly payments including your bills, grocery shopping, interest amounts, etc., and make a total of all your balance. Then you can see exactly what you owe, what you have, and what you need.

Update it every month as you start paying off more and more.

  1. Every time you get a little extra money coming in, put it into your emergency fund so you can use it to pay off debt.
  2. Speak to a credit counselor and look at websites like DebtSolutionsReviewed’s review for more information and advice. You may learn how to make a plan of action (and stick to it!)
  3. Don’t use your credit card to get through the next month’s paycheck. If you do this, you will just get further into debt.
  4. Don’t pay off too much of your debt at one time. Make sure that you still have enough for your weekly expenses without starving yourself.
  5. Don’t eat out in fancy restaurants, or order takeout. Cook your own meals with the food that’s in your cupboards, fridge, and freezer.
  6. If you’re bored, invite friends over or go to their house and entertain yourself that way. You don’t have to splash the cash on nights out to have fun.

  7. Don’t ever use your emergency account to pay off your credit cards – that defeats the whole point of having one. – Pretend like it’s not there.

 

  1. If you know you have expenses coming up in the near future, make a note of them on a calendar so you won’t be surprised when you need to pay for them.
  2. Give yourself a budget to live off every week. Try your best at paying the absolute minimum on everything you purchase, like the brand of chips you by – get the stores own instead.
  3. If you’re living with your other half, make sure you’re both on the same page when it comes to money.
  4. If you know you have bad spending habits, find a way to manage them. Don’t go cold turkey – that will most likely make you splurge even harder. Instead, give yourself a limit.
  5. Stay focused, no one said it was going to be easy. Paying off debt is very stressful, especially when you realize it isn’t going to happen overnight. But as long as you know that it won’t last forever, and pay attention to the number going down – you will get through it.

 

  1. Stop it! If you find a good enough excuse to buy the new iPhone, even if the phone you have now works perfectly fine, and you’re $30,000 in debt – question what your goal really is.
  2. If one technique isn’t working for you, don’t use that as an excuse to give up – find a new technique! There are so many out there.
  3. Change your behavior and attitude if you know that it is the thing causing you to overspend. One way to do this is to distract yourself by something other than spending – like playing music or working out.
  4. If you’ve been in debt for the last three years, be realistic when it comes to paying it all off. It will most likely take you longer than three years to pay it all back.
  5. Although you need to budget your lifestyle, it is still important to have a social life and get out of the house once in a while to decompress a little. You don’t want to end up not enjoying life just because of your financial situation.
  6. What is necessary? Do you need the sports channel? Do you need all that data on your cell phone? Do you have to buy the expensive brand of ice cream?

If it’s not a necessity – get rid of it for now. You’re just wasting precious money.

  1. Get creative when it comes to doing things around the house and in your personal life. If you feel like you need some new clothes for the summer for example, don’t go out and buy a new wardrobe, instead find creative ways to cut up and sew your clothes, turning them into something awesome.
  2. Don’t keep borrowing money – that’s how you got in this situation to begin with. Stop the credit cards, stop the car loans, stop the home equity lines, and so on. If you know you can’t afford something with the cash that you have in your wallet – you can’t afford it at all.
  3. If there’s something that you really want, save up the money like everyone has to do, and when you have it, buy it with cash. By the time you have actually saved up for what you wanted, it will feel so much more gratifying when you buy it. Or, you may not even want it anymore.
  4. Use an app or download a software specifically designed to track your spendings, and split everything up into different categories. Not only is this efficient, but it will make it easier to see where your problem areas are.
  5. Give yourself some wiggle room, as you never know what life is going to throw at you. Always be prepared for the minor setbacks.
  6. Unsubscribe from all the alerts and notifications you get sent about your favorite online stores. They will only persuade you to pay for things you don’t need – all while making you think it’s okay because it’s on offer. – Don’t fall for it.

 

  1. Downsize where you’re living. If it’s bigger than what you need, you may be paying more than you should, so move into somewhere smaller.
  2. Figure out what drives you to save up. This may be your children or your passion. Whatever it may be, think about that whenever times get hard to remind yourself of why you’re doing this.
  3. If you know you have a raise coming up, make a note of it and use all of the extra earnings to pay off your debt.
  4. Don’t see money as something that is for spending. For example, if you plan to buy a brand new flat screen tv, calculate how many hours it took you to work for the amount of money it is. You may realize that a tv isn’t worth all of that hard work you’ve been doing over the last few weeks.
  5. Learn about the alternatives instead of assuming that we have to pay the asking price – 90% of the time, it’s not the only option you have. Get a second-hand oven, shop at charity shops and cycle to work.
  6. Figure out whether you’re buying things because you actually need them, or if you’re just paying for them because everyone else is.
  7. Don’t think about your debt – think about your wealth. Don’t tell yourself you are trying to get out of debt. Instead, think of it as your current financial situation that is contributing to your overall wealth. Now you’ll see it as a positive, rather than a negative.
  8. Start by paying off the smallest debt first, that way you get the ball rolling, and it may be the ‘pick me up’ you need to show you that it is possible to do it.

 

  1. Understand that you will have to make sacrifices if you want to pay your debt off – it’s just part of the game. As long as you’re willing to do so, you will get through it.
  2. Write yourself a note that says “DO I ABSOLUTELY NEEEEED THIS???!!!!! And stick it in your wallet next to your cash.
  3. Get supermarket fliers with all the offers on, and use that to plan your weekly grocery shop. Look at all the things that are on promotion, and use them to make your meals.
  4. Plant seeds in your garden and use them to grow your own tomatoes, peas, potatoes, herbs and more. You will, in time, be able to use what you have to live a sustainable life. If you don’t have a garden, you can keep some pots by your windowsill in the kitchen.
  5. Just think about the feeling you will get when you have paid everything off. – Freedom! Just imagine it.

 

So as you can see, there are tons of tips and tricks to avoid, (or manage) being in debt. Put as many in use as you can, and see what works best for you. Keep trying until you find your ‘way’.

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The Money Talks You Need To Have With Your Fiancee Now

July 6th, 2017 Posted in Money Tips
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If you’re getting married to someone, you’re about to share much more than a deepening romantic relationship. You’re sharing a life together, with all that entails. It might mean kids in the future, where you’re going to live, what kinds of lives you’ll lead. As you might have guessed, it will definitely mean sharing a lot more of your financial life. It’s a step that people, especially those that have never lived together, always get caught off guard by. But a few conversations now can you a lot of headaches in the future.

The Money Talks You Need To Have With Your Fiancee Now - couples shoes image

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Full disclosure

This is where you’re going to face the most embarrassment on either side of the equation, so actually starting off with it can be a great ice-breaker. Find a delicate way to broach the subject of debts, past and present. Be a secure presence, taking on the attitude that you will both be in this together. Going into a deeper relationship only to be hit by the implications of a debt you didn’t know about can feel like a betrayal, so it’s important to have this talk above all else.

Money personalities

Then on to a bit of a lighter subject. Everyone has different habits with money. Debt can be one of those habits, but it can be used well or unwisely. Impulse shopping, the ability or inability to save. These are all aspects of money personalities you two can find out together. You might find that one of you is more willing and able to manage certain sides while another is better at another side. Find out your money personality, your partners, and where you’re compatible or where one of you can help the other.

The Money Talks You Need To Have With Your Fiancee Now - pomegranate hearts

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The splits

There are going to be lines split in a marriage, especially if you have kids. Someone’s career might take priority over another’s. Someone might be considered the breadwinner. But most important is finding the equal-but-different way to split the money. For instance, it’s rarely a good idea to share assets or debts, whereas it can be sensible to use a joint account to give yourself both a bit of personal spending money when you have it.

Your goals

What do you want to do with your money? That’s a big decision. If someone wants to eventually start a business or buy a dozen houses to live off, you need to know that now. Similarly, you need to make sure you’re considering potential family goals like your children’s future or your retirement. Setting off in the same direction financially is important.

The Money Talks You Need To Have With Your Fiancee Now - rainy day couple image

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Protect one another

Full disclosure of debt is another part of this, but you have to come to the agreements of how you’re going to protect one another later, too. This might mean plans just in case one of you is the breadwinner and might have the risk of passing before the other. It might also mean working on wills now, not later, to avoid any potential disputes that could leave one of you deprived. It’s not the happiest of thoughts, but it’s an important dedication you might want to make to your partner.

You will likely have at least one disagreement or even an argument while having the discussions above. Be kind, be honest, and be willing to sleep on a few points. You need to come to some agreements if this is going to work.

 

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6 Simple Ways to Cut Costs and Save During Retirement

June 29th, 2017 Posted in Money Tips
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A safe and comfortable retirement is a goal for most retirees, but living on a fixed income can make it seem impossible. Since there is no safety of a steady paycheck, many are left feeling overwhelmed, looking for options to accommodate their growing needs. So how do you make sure that you spend your retirement doing everything you love, without draining your retirement funds?

How to cut cost and save during retirement - happy retirement couple image

Well, there are subtle things you can do that will help you boost your savings and stretch your nest egg for years to come.  You don’t have to downgrade your lifestyle to live a fulfilling retired life. Though, you do have to focus on some key areas that are known to be the biggest financial worries among retirees and tackle those first. With some pre- planned financial groundwork and strategic planning, you can enjoy a smooth transition to the retired life.

Here are 6 smart ways to save money so you can enjoy your “dream” retirement:

1. Find the Best Health Coverage

One of the primary expenses retirees worry about is health insurance coverage, especially if you plan on retiring before the age of 65, in which case you won’t qualify for Medicare.

If you aren’t eligible for Medicare, you can still get insured through the Health Insurance Marketplace. While comparing individual plans, make sure to consider factors such as premiums, co-pays, and deductibles. Start your search by signing up at Healthcare.gov; if your income after retirement falls below a specific cap, you might qualify for subsidized coverage.

But while comparing premiums, look beyond the dollar amount to see if the package is right for you. If you visit the doctor a lot, look for a plan with lower out-of-pocket costs, but if you don’t visit the doctor often then a plan with a higher co-pay may be good, since it will give you a lower premium. Also, check to see if your current doctor is in-network since you might be more comfortable sticking with your current doctor than change to another. Your current prescription medications are another thing you should see if your plan covers. Before you decide on a plan, examine your drug coverage and see how much you will be responsible for paying out of pocket.

In many families, one person retires while their spouse still works. If that’s you, then continuing your coverage through your spouse’s insurance can help you save a lot.  A pre-Medicare retiree with a working spouse can continue coverage through their employer’s health insurance, provided they request enrollment within 60 days of losing their health insurance.

Or, consider establishing a health savings account. You can contribute $6,750 max if you have family HDHP coverage and the money used for qualified medical expenses is tax-free.

Another option would be to apply for COBRA, which is a federal law that lets you continue your insurance through your employer for at least 18 months. However, this might be an expensive option, since you will be paying the full premium, including the amount that your employer paid while you were employed. Some insurers add on an extra 2% as an administrative fee

2. Take Advantage of Discounts

One of the major perks of being a senior are discounts! There are thousands of deals available exclusively for older adults. From retail, restaurants, travel to activities, there are many incredible savings that you can take advantage of.  One way to get access to these senior discounts is by becoming a member of AARP.  For just $16 a year, you can get exclusive access to a myriad of discounts through AARP. These include discounts on car rentals, cruise trips, vacation packages, hotel discounts and more.

Two alternatives to AARP that are a popular discount destination for retirees are Association of Mature American Citizen (AMAC) and American Seniors Association (ASA). For memberships costing $16 and $15 per year, respectively, you will have access to many great discounts, helping you recoup that membership amount and then some. But if you are mobile savvy, there is a whole world of discounts that you can discover using the power of apps.

Forget Googling for deals. Apps like Senior Discounts can help you discover amazing savings for eating, traveling and shopping through your iPhone or iPad.  Flipp is another great app that helps you discover best deals from popular retailers like Target, Kroger, Walgreens, Walmart and more. It offers discount savings between 20-70% on items.

3. Review Your Expenses and Your Savings

Prioritizing expenses and keeping account of where the money goes is a major step to avoid depleting retirement funds. Downsizing doesn’t always have to mean downgrading. There are many ways to cut expenses to save money such as avoiding impulse purchases, buying in bulk, finding cost-efficient ways for your daily commute, replacing that expensive cable bill with a much cheaper Netflix subscription; are all money saving habits you can embrace.

If you live in a place with a high cost of living, and since you are no longer tied to a job, relocation to a much more affordable city can be an option worth considering. You can then use the saved dollars to pay other huge expenses like health insurance.

4. Save on Auto-Insurance

With middle age, auto insurance rates typically drop because of your years of driving experience. But, senior drivers, even with a clean driving record, and the same driving habits might be faced with a higher insurance rate, because, as a group, they are considered to be more prone to accidents.  Many states require insurance companies to give drivers, 55 and over, discounts for keeping a clean driving record and for taking certain driving courses, like defensive driving. You can access these classes through AARP and AAA for a much lower price.

Not all auto insurance companies increase the premium for older drivers at the same age. Some might increase it at your 60’s, and some might wait till you are 70. You should shop around and see what company is offering the lowest rates. If you are not planning to drive as much, you might be qualified to receive a low-mileage or usage-based discounts that offer breaks in premiums for drivers whose annual mileage falls under a certain mileage cap, which is usually between 7,500 and 15,000 miles per year.

With a usage-based, or pay-as-you-go program, you can get a personalized auto insurance quote based on your driving habits, and other patterns like the average speed you drive, braking habits, average number of miles, and time you drive. All these factors are monitored by a small telematic device that you would be asked to install in your car. Based on the results, you will be able to get a customized premium rate that might be lower than what you are currently paying. Sometimes you can get a discount just for installing that device

5. Take a Part-Time Job During Your Retirement

By having a steady flow of income, you won’t have to exhaust your retirement savings to fund your hobbies. A part-time job will also keep you physically and mentally active. It isn’t just about the paycheck, staying in the workforce, albeit part time, can give you a sense of purpose especially if you don’t know how to spend your retirement. A fatter nest egg is a nice little side effect.

There are several routes you can take after retirement. Starting your own business is a good option for those wanting to work at their hours and pace. If you have a hobby or passion, you can look for ways to start a business around it. For example, for retired teachers, starting a tutoring business can be a good source of income, or if you were a salesperson, you could look into affiliate marketing, where you make affiliate commissions selling things you love. Amazon has a popular affiliate program you can join for no starting fee.

One advantage of being retired after so many years in the workforce is the wealth of knowledge you acquire. You can put that to good use by becoming a consultant. Becoming a tour guide, working part time at your favorite golf course, teaching English abroad, working as a librarian assistant or a bookkeeper are all professional options that let you keep that income coming while allowing you to have ample time for your friends.

6. Consider a Reverse Mortgage Loan

A reverse mortgage loan can enable you to put off accessing Social Security payments till later in life, bringing about a bigger monthly payment through social security if you wait. By drawing on your reverse mortgage loan to cover your expenses, you also get to let your investment assets grow. If your investment portfolio assets are not doing well, a reverse mortgage loan can cover you till the market conditions improve again.

It’s a way to make ends meet, but it’s definitely not free money. It’s a loan that will eventually need to be paid back, with interest, when you move out, upon your death, or if you fail to comply with any terms of the loan. Also, you only get a percentage of your home value, not the full amount. What you may qualify for depends upon several factors including age, home value and interest rates, and the amount received will be affected by any amounts owed on an existing mortgage. A reverse mortgage loan allows you to convert a portion of your equity to cash without having to sell your house. You must continue to pay taxes, insurance, and maintain your home as well as comply with loan terms in order to avoid foreclosure. While processing the loan, your lender will usually charge an origination fee, appraisal fees, closing costs and other fees that are similar to what you paid while you bought your house.

Retirement can be everything you ever wanted it to be if you plan and lay a good financial foundation that keeps your future secure. Thoroughly researching and comparing health and auto insurance plans can help you save hundreds of dollars, while still giving you the satisfaction of staying covered for difficult times. Taking advantage of discounts while shopping for everyday items is a fantastic way to aggregate savings that can add up to a substantial amount over time. Budgeting and taking note of money coming in and going out can help you stay in control of your finances. But if you still need help to cover costs on a rainy day, you can always look into getting a reverse mortgage loan.

*If you qualify and your loan is approved, a HECM Reverse Mortgage must pay off your existing mortgage(s). With a HECM/Reverse Mortgage, no monthly mortgage payment is required. Borrowers must continue to pay taxes, insurance, and home maintenance as well as comply with loan terms in order to avoid foreclosure. **Consult your financial advisor. © 2017 Re-published with permission from original post at AmericanAdvisorsGroup.com

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Considering a Personal Injury Claim? 5 Things You Should Know

June 28th, 2017 Posted in Money Tips
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Any personal injury is a grave injustice and in the face of any injustice it’s only natural to seek retribution.

Personal injuries are, by definition, not our fault and yet they can have far-reaching and damaging effects on our day to day lives. They can cause us to take financially damaging time off work and erode our sense of worth and personal identity. They can cause us emotional stress which can cause discord between us and our friends and family.

And that’s without going into the pain, discomfort and psychological trauma of the injury itself.

Yes, it’s safe to say that in the event of personal injury that it’s only natural that a victim should seek justice through the proper legal channels. But, as with anything, there’s a right way and a wrong way to go about it.

Here are 5 things you should know if you’re considering submitting a claim…

You should act sooner rather than later

While you absolutely shouldn’t act rashly or out of panic or anger, it is important that you take steps as quickly as you feel able. Whether your injury was the result of medical malpractice, negligence at work, a slip, a fall, a road traffic collision or even as a result of a faulty product you need to strike while the iron is hot.

The longer you wait to act decisively, the greater risk of evidence being lost or harder to collect and the more the strength of your case may be diminished. There is also an inherent time limitation (usually 3 years) on personal injury claims.

Considering a Personal Injury Claim? 5 Things You Should Know - law books image

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Once you have made the decision to act, you need to find a legal representative to assist you. While you could make the claim yourself we would advise against it as you will be in a vulnerable position and may not be able to present the best possible case for a claim.

Personal Injury Law is a huge market and it can be difficult to know who to choose when there is so much competition out there. Look for someone with a proven track record who is open and upfront about what your expectations should be. You can use this Online tool that checks if you have a no win no fee claim but whomever you choose to represent you, make sure that they work on a no-win-no-fee basis and that they will ensure that you get the maximum award owed to you.

You need to be open and honest with your representation

It may be tempting to exaggerate the details of what happened or omit details of your medical history (such as previous injury) from them out of fear that they may harm your claim. While this impulse is understandable, it can seriously harm your claim if you are not open and honest with your legal counsel. Dishonesty can lead your solicitor to make unfair or inaccurate judgements on the strength of your case and when any lies are found out it can seriously damage the integrity of your claim.

You need to take care of yourself

It may be tempting to assume that you should not look after yourself or make efforts to help your injury heal out of fear that it may harm your claim. Rest assured, legal professionals expect human bodies to heal so you should absolutely seek medical assistance and follow any medical advice given to you by your doctor.

Considering a Personal Injury Claim? 5 Things You Should Know - injury claim form image

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You will be expected to take any medication prescribed to you and attend all appointments, lab tests, therapy sessions, referrals and check-ups throughout the claim’s progression. Exacerbating your injuries through deliberate negligence will aid absolutely no-one. In fact, it will damage your claim as the opposing legal counsel may try to imply that any symptoms you experience will be a result of your own poor self-care rather than of the incident itself.

Keeping on top of your treatments, eating well and getting plenty of rest can only ever help your case.

Be aware, you may be watched

Depending on your circumstances, it’s not unheard of (though it is rare) for the defence to monitor your personal activities through a private investigator. Any documentation of strenuous activity on your part can give the defense grounds to question your honesty and this can seriously damage your claim.

For this reason you should avoid long walks, running, lifting heavy objects or going to the gym until you are advised by a medical professional that it is safe to do so.

You should keep your head down on social media

While many of your friends may feel the need to record everything they do on social media, you should avoid this at all costs. Claims adjusters or private investigators can access this information and use evidence of your activities to harm your claim. Even an image of you picking up a friend’s baby could be seriously damaging. Avoid posting on social media and turning your privacy settings up to their maximum just to be on the safe side.   

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