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5 Crucial Expenses Founders Need to Budget for

October 28th, 2019 Posted in Business, Entrepreneurship
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It’s easy to underestimate how expensive starting your own business can be. Building an industry-leading company requires more than just a great idea or plenty of industry passion, you also need the right finances in place to guide your organization towards success. 

While some entrepreneurs assume that they can simply jump in and tackle each expense as and when it arises, the truth is that planning your costs ahead of time is a far better alternative. Not only will your budget give you the guidance you need to make the right decisions on behalf of your business, but it will also make it easier to apply for a loan or seek out funding from investors too. Everyone who might consider giving your business money will want proof that you’ve thought about the future. 

Here are a few of the crucial business expenses that you will have to consider when you’re building your startup budgeting plan. 

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  • Equipment Costs

Depending on the nature of your business, your equipment costs may be one of the biggest monthly expenses you have to think about. If you’re running a conventional business, like a brick-and-mortar retail store, or a restaurant, your equipment could include everything from point of sale systems to ovens, refrigerators, storage rooms, and more. 

Even if you’re just running a basic online business from the comfort of your own home, there are still equipment expenses to consider. For instance, you might need a computer that you can use to complete your work each day, a printer for your invoices, and a phone that you can use to make long-distance calls. Remember, you can always save some extra cash on equipment by checking out second-hand options.

  • Supplies and Inventory

Next, you’ll need to pay for the materials required to create the products that you’re going to sell. It will be up to you to figure out how much inventory you need to have on-hand at any given moment. However, remember that an absence of inventory could mean that your customers go elsewhere if you can’t deliver what they need straight away. 

Do your research before you begin building your products, so you can determine exactly what kind of products and materials you need. Don’t be afraid to shop around until you find the supplier that gives you the best deal too! If you need somewhere to store your products, take that warehousing cost into account too. 

  • Human Resources

Although it’s becoming a lot easier for entrepreneurs to launch businesses without any outside assistance today, there are companies that you won’t be able to run on your own. You may need the help of a team of dedicated sales assistants to ensure that you can properly serve your target audience. On the other hand, you might just need a few dedicated specialists to help you out at a few times of the year-  such as an accountant or marketing professional. 

Don’t forget that you can reduce some of your HR costs by considering things like remote working today. Working with contractors over the internet means that you don’t have to pay for physical office space where your team members can work. 

  • Legal Fees

There’s more to keeping your business’s head above water legally than paying for an attorney when someone tries to take you to court. You’ll also have fees to consider when it comes to things like incorporating your company or setting up retainers. Make sure that you know exactly how much it’s going to cost to get your business off the ground, then keep it up and running. 

To protect yourself from overly excessive legal fees, don’t forget to invest in the right business insurance too. You might need to take to a business advisor for insights into the kind of insurance that you need for your type of company. Not every kind of coverage will be relevant to you. 

  • Marketing

Finally, if you want your business to grow, then you’re going to need to set some extra money aside for capturing your audience’s attention. Startup founders need to budget at least some of their cash aside for things like social media marketing, email marketing, website development, and so on. 

The good news is that marketing doesn’t have to cost a fortune. Even some basic investment into social media can be enough to start generating real engagement from your target audience. You can always invest more cash into marketing as your business grows. 

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Getting Financially Stable: Everything You Need to Know About Taking Out a Loan

April 18th, 2019 Posted in Credit and Debt, Money Tips
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Being optimistic about your finances is only natural. Most people have high hopes concerning their job prospects, lifelong earning capacity and financial management skills. But, reality might have another plan.

Getting Financially Stable: Everything You Need to Know About Taking Out a Loan - financially stable image

What Is Financial Stability?

 Financial stability is both an objective and subjective quality. The objective standard is having an income that is higher than your expenses. You must make more money than you spend.

But, the subjective character is based on your financial status. Most people will admit that rich people have a different life style than others. For many of them, they can coast for a while before the day of reckoning arrives.

But inevitably, it will arrive. Everyone pays the piper. So, even though the wealthy have a higher income, they also must develop wise management skills. We will discuss a few of these.

Make a Budget

 Musicians practice, athletes practice … pretty much anyone who wants to succeed practices and prepares a plan. How can you control your expenses, when you don’t even know what your credits and debits are? You need to start by making a budget.

Some people don’t want to face financial reality. They want to believe that they are wealthier than they are. We see this a lot with athletes and celebrities. When their salad days are over, they might file for bankruptcy.

If you fail to plan, you plan to fail. = Benjamin Franklin.

Create a budget. If you are continually dipping into your savings, then you know you are not making ends meet. And, something that cannot go on forever, will not go on forever.

Write down your expenses and income. Then, see what your surplus or deficit is. Decide how you are going to make up that deficit.

You might try to add more hours at work. Or, you might consider taking out a personal loan. Saving money requires having higher income than expenses.

Balance Your Cheque Book

 Once you have a planned budget, see how you are doing each month. Balance your cheque book. Many people assume that bankers are never wrong. But, they do make mistakes.

After balancing your cheque book, you can identify any errors made by your bank. This also gives you a better understanding of your spending habits. You need to know how you spend money before you can improve your money-spending habits.

Count Pennies

 Remember the parable of the grasshopper and the ant. The grasshopper liked to visit the grocery store in the middle of the week and throw large parties. He had a great bar-be-cue, but didn’t produce anything of note.

While, grasshopper partied, ant was working hard, storing up food for winter. Grasshopper wondered why ant worked so hard. Ant told him that when winter arrived, those who stored away wealth would survive. Eventually, winter arrived and ant had plenty of food stored up while grasshopper starved.

How will you reap, when you have not sown? 

Those who save money, count their pennies. If you need help calculating your pennies, then you can use the Acorns App. Financial management has never been easier.

This money management app helps you earn found money, grow your knowledge, invest for your future and spend smarter. It is like having a financial assistant with you all day long. Sometimes, people need a little nudge to improve their saving habits.

Cut Corners

Paying off debt requires both a physical and spiritual commitment. Physically, if you don’t have enough credit, then you need to reduce your debt. You need to cut corners.

Enjoy some home cooking and reduce your visits to five-star restaurants. You might want to watch an old movie on date night. Reduce your expenditures to create a better threshold for your budget.

Find New Income Sources

 Sometimes, debtors need a little financial boost to help them regain their composure. When you are priming a pump, you introduce a similar liquid to draw out the liquid. Find new income sources to increase your cash flow.

After you learn more about personal loans, you can find the best financing means. Use the new funds to pay off the bills with the highest interest rates. Compound interest can quickly drag you underwater, like a drowning swimmer.

Create Rainy Day Fund

 You wear a seat belt just in case you get in an accident. A rainy day fund can help you overcome little glitches in the budgeting process. For example, your rent is probably due the beginning of the month, while your pay cheque arrives every two weeks. Sometimes, these two periods of time don’t mesh perfectly.

Instead of incurring late fees, create an emergency spare cash fund. You might even include a full month’s rent. This ensures that you are always on time.

Landlords and bankers expect you to pay your bills on time. They have a very fine-tuned system that will deposit the funds into their bank accounts immediately. There is a “Domino Effect” when they’re not paid – managers ask where the money is.

A rainy day fund smooths over many rough edges. It can be used to keep everyone happy. Toss a $20 therein when you get paid.

Healthy Financial Management Skills

Changing bad financial management habits can take some time. Psychologists believe that the development of good skills might take at least two weeks of constant repetition. Send yourself an alert from your smart phone, urging you to save more every single day.

After two weeks, there is the hope that this new habit will be well-ingrained. Use a multi-dimensional strategy for regaining financial stability: make a budget, cut costs and find new income sources. Develop healthy financial management skills to pay off your debt. Then, you can sleep better at night.

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5 Ways To Improve Your Financial Situation

March 12th, 2019 Posted in Money Tips
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Unfortunately, something we will all experience at least once or twice in our lifetime is a period of financial difficulty. Whilst it isn’t something you will experience forever, it can be difficult to get out of a tough time when it comes to money. To help you through this tough time, we have put together 5 ways to help improve your financial situation:

5 Ways To Improve Your Financial Situation - open palm with money coins image

Photo by Jordan Rowland on Unsplash

– Cut Down On The Non-Essentials And Shop Smart

Although it may seem obvious, cutting down on the non-essentials and shopping smart is a great way to ensure you have disposable income at the end of each month. Whether that means cutting down on your takeaway coffee on the way to work or shopping store-branding products when you’re buying groceries – the little changes can make a huge amount of difference over a long period of time. If you want to see how much difference they are making, consider keeping a jar where you put all of the money you would have spent if you weren’t ‘shopping smart’.

– Put A Set Amount Of Money Away Each Month

If saving is something you struggle with, consider putting a set amount of money away each month. The easiest way to do this is to set up a direct debit as often, you won’t notice it leaving your bank account. If you’re worried you can’t afford to save yet, try starting with a really small amount then build it up month by month. For a guide on saving money, you can visit this site here.

– Make Yourself A Monthly Budget And Stick To It

Often one, of the best ways to ensure you’re not overspending is to set yourself a budget and stick to it. This means creating a spreadsheet that details all of your ingoing and outgoings, making any necessary changes as you go along. Having everything written down not only shows you where your money is going, but it gives you an opportunity to see how much you could realistically save each month. If you want to know how to set up your own budgeting spreadsheet, you can visit this guide here.

– Start Thinking About Your Pension Early

If you’re worried about how you’re dealing with money now and whether or not you’ll be able to afford your retirement, it might be best to start thinking about your pension as soon as you possibly can. A great way to do this is to speak to an investment planning company, as they will be able to help you make an informed decision.

– Consider Looking At Debt Consolidation

For those that are really struggling with debt, there are ways in which you can create one payment plan to cover it all. Debt consolidation is great for those that want a small monthly payment, rather than lots of payments that they struggle to keep a track of.

Do you find that you’re spending most of your time worrying about money struggles? What changes can you make to your life to ensure you’re getting back on track? Let me know in the comments section below.

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These Quick Hacks Will Change Your Financial Situation Like Magic

November 23rd, 2018 Posted in learning about money, millionaire mindset, Money Tips
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If you want to do something about your financial situation, you’re not powerless. There’s always something you can do to improve your situation, all it takes is a new frame of mind and a can-do attitude. Below, we have some quick hacks that will help you to change your financial situation as if by magic. Take a look:

Develop A Better Money Mindset

Start by working on your money mindset. Your thoughts and attitude surrounding money will make a huge difference to how much of it you have, how you spend it, the financial opportunities that come to you, and more. How do you go about changing your mindset? First of all, you need to assess any limiting beliefs you have about money. We usually pick these up from childhood, and without realizing it they can seriously affect our adult financial situation. For example, some people think they are not deserving of money, that they will never have enough money, that money is evil, etc. Being able to overcome these beliefs is crucial. You can also try affirmations, visualizations, and techniques such as tapping to change your beliefs. There are lots of free resources out there that you can use!

The more positive you think and feel about money, the more you’ll be able to change your money mindset for the better.

These Quick Hacks Will Change Your Financial Situation Like Magic - coins image

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Come Up With A Plan For Your Future

By coming up with a plan for your future, you’ll actually be able to set yourself goals and work out the baby steps you’ll need to take to reach those goals. If you don’t have a plan or goals, then you’re just going to meander aimlessly along, and chances are, you’re going to waste your money on superficial things that won’t give you any real long term joy.

Whatever your future plans, it’s always a good idea to have an emergency fund, just in case. You can look at companies like https://www.creditraters.com for help if you don’t have an emergency fund but you need cash in a pinch. Just bear in mind that it’s always better to have some money saved up.

Take A Look At Your Budget

If you don’t have a budget, now is the time to put one together. Figure out how much money you’re spending and making each month and where you can save. For example, you could take a packed lunch to work, cancel subscriptions you don’t really use, change utility suppliers, and more. Start using the envelope method for your budget if you like; this can make it easier for you to see exactly how much money you have available for certain things, such as your food shopping.

Think About A Purchase For A Month Before Splashing Out

Before making impulse purchases, you should think about them carefully, or you might end up with a bunch of things that you don’t really use. Avoid the urge to spend right away and wait for a month before buying and you might find you forget all about the thing you really wanted to buy. Money and space saved! http://credit-n.ru/zaymi-listing.html

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The Best Ways to Overcome Financial Stress

October 3rd, 2018 Posted in Money Tips
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Many people these days end up in financial problems. There are many reasons one could end up in financial difficulties, such as poor money management, lack of planning, loss of employment and so on. However, one thing is certain, everyone faces immense stress when faced with financial struggles. The main reason is that financial problems are one of the most difficult things to overcome. Once you’re in too deep, it becomes a lot more difficult to get back on track.

Still, if there’s a will, there’s a way. When faced with financial stress, one must keep their head cool and strategize instead of panicking. Yes, that’s a lot easier said than done, but panicking won’t get you anywhere. If you analyze the situation correctly, you’ll soon find the main cause of your problems. And, when you know what’s causing your financial stress, you’ll be able to fix the problem. Therefore, here are a few of the best ways to overcome financial stress.

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Develop a budget

Developing a budget will give you a clear picture of what your financial status looks like. Having a budget assessment helps you determine how much you earn and how much you spend. It’s the easiest way to find loopholes in your finances and close them up. You’ll be able to reduce stress levels when you know what’s causing your finances to leak and when you know you can fix the issue.

For example, calculate your earnings and deduct all the necessary expenses, such as utility bills, maintenance, taxes and so on. Now, this will show you how much money you’ll be left with once the expenses are covered. It will also help you notice if any of the bills cost more than they should. If you have a budget plan, it becomes simpler to manage your finances and reduce costs so that you can avoid financial difficulties.

Maintain a good credit score

Many people neglect their credit score. The main reason is that a lot of people aren’t even aware of bad credit score’s negative implications and impact on your finances. Late bill payments, outstanding debt, exceeding your card limit and more all contribute to a bad credit score. A bad score means you’ll have more fees and more expenses on your back.

For instance, being denied a bank loan, being charged with high interest rates on loans or being unable to get a better credit card deal are just some of the consequences of having a bad credit score. What’s more, you must read your credit report regularly. The main reason is that even a simple accounting mistake could hinder your credit score.

Reduce costs

As mentioned before, having a budget plan helps you spot anything that stands out with your expenses. That way, you can even reduce the costs of your bills and utilities. For example, are you paying 50$ for a landline you almost never use? If that’s the case, cancel it or switch to an emergency only plan. Moreover, do you pay a fee on your checking account? If so, switch to a bank that offers no checking fees.

Another example of cutting costs on bills is avoiding using air conditioner or heater when you’re not home or leaving the lights on when you’re not in the room. All of these bad habits cost money and by simply changing your approach, you can save yourself a lot of money in the end.

Seek additional funds

If you find yourself in a particularly difficult financial situation, you can always seek additional funds to help you cover the expenses. For instance, you can apply for a loan at your bank. However, banks tend to be picky when it comes to allowing loans, especially if your credit score is low.

In that case, you may get denied or charged with very high interest rates that aren’t suitable for your current financial situation. If that’s the case, you can seek out alternative lenders for more flexible personal loans. These loans are particularly handy when you want to consolidate your debt and get your finances in order.

Pay your bills on time

Avoiding financial stress means avoiding financial difficulties. Paying your bills on time can save you from such difficulties. Many people are late with bill payments, yet they become frustrated with extra late fees and additional costs. That way, you still pay your bills with extra expenses. All that it takes is for you to be a bit more organized, in order to pay your bills on time. As a matter of fact, even a single late credit card payment can cost you up to $300 annually.

There’s no reason for you to pay additional fees and risk yourself ending up in difficult situations, as well as stressing over expenses that could have been easily avoided. Furthermore, you can even leverage technology to help you pay bills on time. For instance, you can schedule automatic payments or set reminders to make sure you don’t miss out on paying the bills before they’re due.

Financial stress isn’t uncommon these days. Many people fear what they’ll do if they lose their job or if they end up in financial trouble. Stress makes people see the worst in every situation. The truth is that with a bit of good planning and organization, you can avoid financial issues and save yourself from stressing over a situation that seems impossible to overcome.

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