Whether you are already a business owner, or are starting up new, the first thing that you will think about is finance. There are many ways of going about getting the money you need.
That said, you must also take into consideration several factors before you get the money. Have a look at the various options you have in front of you, and compare it with your business plan and projected revenues. Realistically speaking, identify how you would be able to repay the money that you are borrowing.
Here are some ideas that will help you get the money you want.
Savings Account: Here we are talking about your own savings account. Before you dip into your kitty of savings, consider the following: How much savings have you got in that account? Are you dependent on that money for your day-to-day expenses? How confident are you that your business venture will succeed? Be realistic while you make these considerations. If the savings account is not something you depend upon, and you can afford to forget about the money you take from it should you incur
Money. That which makes the world go round. It all boils down to the money that we have at the end of the day. Money determines the way we live, what we do, and basically every other decision of our lives. Without money, we are basically nothing. And that, I know, is something that no one will want to go through. So it becomes imperative that we earn well. But earning well is not the end all of everything. It actually begins from there. Money which is earned, needs to be managed well, so that we continue to benefit from it for a long time. And therein comes the part where we need to learn some basic money management skills. Because without these, we will not be able to develop effective methods of money management.
Most of us do not have the knowledge of what some of the most simple and effective money management skills are. So to help you out, this article shall provide you with just that.
Money management skills are not difficult to learn once you get the hang of how
Obtaining personal loans after bankruptcy is certainly not a very unmanageable task. Careful approach, developing a positive credit history, and timely repayment are some key-points to fix your damaged credits.
Getting a personal credit after bankruptcy sounds a bit too optimistic, does it not? However, it is possible to get a bad credit personal loan, even after bankruptcy. It helps improve the debtor’s credit standing through efficient time management in repaying the loan. These loans are given for personal use, such as education, health care, cars, etc. These unsecured loans are granted mainly on the basis of the credit history of the concerned person and are paid back in installments.
Bankruptcy is a condition wherein the debtor is unable to return the money he/she owes back to his/her creditors. Generally, it happens that a debtor himself files for a voluntary bankruptcy. But in some cases, creditors have to take action against the debtor by filing a bankruptcy petition.
The United States Code (USC), which codifies the federal laws of USA, contains 50 titles. Out of these 50 titles, the 11th one has ‘Chapter 7’ and ‘Chapter 13’ dealing with bankruptcy. In Chapter
The capital is one of the first things that needs to be taken into consideration when one is setting out on a business venture, and there are many different sources to obtain this capital. It is not necessary to stick to one particular source rigidly; even a combination of various different sources can be used.
Anyone who is wondering how to raise money for a restaurant, a start-up, an advertising agency, or any other small-scale venture should keep these methods in mind. Approaching the right people for it is vitally important for the success of the business, and if this is not catered to properly, it will be doomed from the very beginning.
This is the most obvious source of money for starting a business. If you have saved up enough money over the years, go ahead and make use of it to serve the underlying purpose. You will not be answerable to anyone, and you will not have to worry about repaying someone. If you choose this option, ensure that you are not using all your savings though. Many people neglect this option because if they lose it, they will have nothing left to live on.
The finance department is one of the most important departments in any type of organization. This department has to handle financial transactions of the firm and plan on investments and raising of funds for funding ongoing projects. As no project can be completed without money, the job of a finance director assumes further importance. Finance directors work in the areas like resource management, strategic planning, preparation of a financial budget for the financial year, supervising company’s financial performance and preparing financial reports for outside agencies like creditors and shareholders. Ensuring that the firm’s asset quality is high and debt levels are comfortable, are also some of the responsibilities of this job. Being the leading person in the department of finance, the finance director has to form teams, assign work and help in planning as and when they need. In short, the ultimate aim is to make sure that the firm achieves its financial goals or objectives in a planned way.
High School Preparation
Sincere efforts taken during this stage of one’s educational career pays off greatly. So, take special effort on subjects like economics, finance, mathematics, English and computer science while you are in high school. Get excellent grades
Being neck deep in debt is nightmarish, especially if your car and home are at stake. The debt relief programs can be a rescue for you in times of such financial failure. Without spending some hefty amount of dollars, it is possible for you to get rid of your credit card debt. In this article, we will discuss possible strategies to tackle your credit card debts.
On August 2, 2011 President Obama signed The Budget Control Act of 2011, thereby preventing the United States debt-ceiling crisis, a financial chaos that was imminent on August 3, 2011, in the wake of rising government debts. The path to recovery after the 2008 year financial crisis has been slow and often marked by signs of a deepening crisis. With an average citizen debt in the US approximately equaling US$47,000, it is easy to guess that debt settlement issues are perhaps the most sought after financial knowledge these days. In a desperate need to find a solution of the mounting debts, uninformed citizens have been duped by false claims of numerous debt management companies. In this regard, it is essential to understand the suggestions given to debtors by The Federal Trade Commission (FTC),
You may accidentally receive counterfeit from a person you know or on one of your shopping trips from an unknowing or inexperienced cashier. What’s important is that you realize that the currency you have is counterfeit and immediately take it to a concerned authority for verification. Remember, possessing counterfeit money is a crime, so report any incidence immediately. This article will tell you how to detect counterfeit money yourself and with the help of some devices specially designed for this purpose.
Detecting Counterfeit Money Yourself
In case you are suspicious about the authenticity of the money that comes into your hands, do not panic. Just carry out the following simple tests yourself, first. If you are convinced that the currency is fake, then take it to the authorities. The United States Secret Service has prescribed these steps to verify the authenticity of the currency.
- Paper Quality: If your notes have easily distinguishable red and blue fibers engrafted in them, then you need not worry. The note is genuine. Counterfeit money makers try to imitate this by printing similar red and blue lines on the notes, which can be made out easily.
- Feel: Trust your instincts. If, when you ‘feel’ the
Bootstrap financing means using your own money or resources to incorporate a venture. It reduces the dependence on investors and banks. While the financial risk is ubiquitous for the founder, it also gives him absolute freedom and control over the management of the company. It’s usually meant for small business ventures and is considered as an inexpensive option. The key to succeeding with this type of funding is to ensure optimal management of business finances and maintain adequate cash flow. Let’s look at the common sources of such funding.
When a vendor or supplier allows you to order goods, by extending credit for net 30, 60, or 90 days, it’s called ‘trade credit’. Not every vendor will provide you a trade credit, they will, however, make all your orders through c.o.d (cash or check on delivery) or take an advance payment through your credit card. In such instances, it’s best to negotiate credit terms with your vendor. While setting up your order, approach the person who will approve your credit personally. You will be taken more seriously, if your financial planning is sound, detailed, and informative. If your business is successful in its initial stages and has
Financing a business, keeping the economic perspective in mind, is very different from obtaining a loan for personal reasons. From an economic perspective, the expenses that have to be borne by a business can be broadly classified into fixed costs and variable costs. Fixed costs remain the same, regardless of the level of production. In other words, whether or not a business is in operation, the amount of fixed costs will remain the same. Expenditure on machinery and equipment is an example of fixed cost. Variable costs, on the other hand, change, depending on the level of production. Variable costs are directly related to the level of production. The cost of raw materials is an example of variable cost. Hence, from the point of view of an economist: Total Cost = Total Fixed Cost + Total Variable Cost
From the perspective of accounting, costs can be classified as implicit or explicit. Explicit costs are expenses which can be accounted for in monetary terms. Both, rent and wages paid, are explicit costs. On the other hand, a businessman who does not pay his wife for assisting him in day-to-day workings of a business, is said to incur implicit costs. Hence,
With the rapid change in the financial world, everything related to finance is changing, whether it is credit facilities or investments. Steps are being taken to make everything simple, convenient, and fast. There is a consensus among financiers that businesses have different financial requirements, and there is a need to resolve them. One such step taken by these, which may help businesses, small or big, is to establish business credit. This is an option which you can avail of, where financial institutions provide loans, without needing the credit rating or the personal assets of the owner as security. And, most importantly, the organizations of every size and age can avail of it, whether it’s old or new, big or small. Whether you need finance for setting up or expanding the business, purchasing material or equipment, or advertising, this facility is always there for you.
There are various steps involved in establishing it. The first point that you should remember is to ensure strong fundamentals of your business. Moreover, you should also take care to see to it that you meet the requirements of financiers. Ensuring this would make listing of your business with commercial credit reporting agencies easier.
Gone are the days when people were heavily dependent on one bank for all their banking needs like transactional accounts, savings account, debit/credit cards, CDs, loans/mortgages, etc. Today’s customer has learned that it is not necessary that one would end up getting maximum benefits from the same bank. He has learned to do some homework to find the best bank and deal which will suit his requirements. If you are looking for an account which you can use to pay your bills or expenses on a regular basis, you should consider going in for a checking account. It is insured by the FDIC for an amount up to $100,000. Most of the small and large brick-and-mortar banks offer this facility. You can also check with online banks and credit unions for getting an account. However, if you do not go for the right account, you may end up paying a lot as your fees for limited number of transactions. You should also get an account which will allow you to earn some interest on your balance. Here are a few factors that you can look into.
Try to judge how much of minimum balance you will be able
To all the novices in the field of finance and accounting, you have probably been briefed about some of the most basic accounting terms. Of these, the term tangible assets is what we will be focusing on in this article. Don’t be afraid by the sound of it, it’s not nearly as scary as you may think it is. So, if you want the layman’s lowdown on what they are, read ahead.
What are Assets?
It is a mandatory procedure for companies to keep a record of their financial dealings. A reflection of these is seen in the form of a balance sheet. A balance sheet has two sides, one which records all the liabilities of the company, and the other, which records the assets of the company. Liabilities are basically what the company ‘owes’ and assets are what the company ‘owns’. In the assets section, there is a division into tangible assets and intangible assets. Let us delve deeper into these concepts below.
Just like the general meaning of the term, even in the finance and accounting of a company, anything that cannot be seen or touched is considered intangible. Hence, assets that a company owns, but cannot be seen,
Operating income is a financial figure that is derived by the employees of the accounting and finance department, at the end of a financial period: a week, one month, a quarter, or a year. Such a duration sometimes is also known as fiscal period. Operating income is often simply defined as the income or revenue of a firm or a company, that is derived from regular operations and sales.
Such an income is basically the total of all sales, minus the manufacturing cost of the goods and operating expenses. Before this income can be derived, another figure that is, gross income has to be calculated. Gross income is the revenue that is realized by the firm or company in one financial period, through its sales and operations minus, value of goods and services sold. It must be noted that depreciation, operating costs and related expenditures are included in this figure.
Gross Income = Sales – Cost of Goods Sold – Cost of Closing stock (unsold goods)
Operating income is derived from gross income. Once the gross income is calculated, total depreciation and operating expenses are subtracted from it.
Thus, the operating income formula goes as follows,
Operating Income = Gross Income – Operating
If you are young and buying your first home, it can be a very scary time in your life. However, it’s also very exciting to think that you are going to own your property for the first time ever. This is truly the American Dream at work! Chances are, your mortgage payment will be more expensive than whatever rent you were paying before you were a homeowner. You may be worried about how to budget after you close on the house, but you will catch on quicker than you think. If you couldn’t afford the house, the bank wouldn’t have given you the loan, so get ready to crunch some numbers and enjoy the first year living in your new abode.
Pay Attention to Your Lending Officer
Before your loan is even approved, your lending officer should sit down with you at the bank and give you a quick run down of the numbers. If they don’t, you should ask them to do so, or find a lending officer that will; it’s totally OK to shop around for lenders, especially in this economy. When you meet with your lending officer, don’t be afraid to ask questions and/or
Who wouldn’t like a leisurely life, without the 9-5 grind, free of meeting the deadline or completing targets. You would probably find a majority of people desiring it and even succeeding at it to some extent. Yet, you would find a minority who simply have to grind it out just to make ends meet and safeguard their future. If you find yourself in a similar situation, wouldn’t it be preferable to have some cash stashed away for difficult times so that you can be financially independent?
And before your crafty mind starts thinking of how much money is needed to be independently wealthy, let me tell you, there isn’t a fixed number or amount. Financial independence is something that is achieved step-by-step, not all at once. While there are suggestions that financial independence and being independently wealthy are different, the underlying fact is that both goals target financial security. The paragraphs below will give you some ideas about this concept.
Steps to Become Independently Wealthy
Save, Save, and Save
- Regarded as the oldest rule in the book, this step is the first to become financially stable.
- Save a part of your income/salary (a substantial part), in fact, do not consider it
The root cause of most of our problems, is that we are never satisfied with what we have. We want more. And more. And more. And some more… It just doesn’t stop, this wanting. Which is OK. But, what’s NOT OK, is the instant gratification of these wants. Actually, that could be termed OK too, as long as you are spending within your means. So what is it that is not OK, you ask? Well, it is when you are spending beyond your means, to live the way you want to. When you do not have the money, yet you spend on that extra purse, or cell phone, or that gorgeous dress, or a new car, or whatever. Before you know it, you have used up your money in debit cards, so you turn to your credit cards, reach your credit limit, and now you have those terribly annoying warning letters, flooding your letter box and crowding your email. Reminds you of the movie, Confessions of a Shopaholic? There is a very thin line between living paycheck to paycheck, and the above described scenario. It can vanish far too easily, and before you can say ‘damn’, you’ve been
The process of account reconciliation is used when the transactions are recorded using the double entry system. In a double entry bookkeeping system, a single transaction has effects of debit and credit. These two effects can be cross-confirmed by tallying the account. Owing to this, all the accounts, if recorded properly, have balancing figures at the end of the month or year (or whenever the account closes).
For carrying out the verification and comparison of your accounting records and of the bank statement or credit and debit card statements, it is important that you collect all your deposit and payment slips or receipts. On comparison, you will come to know whether the transactions on your slips tally with the bank statement or not. The most important thing that people tend to forget is including deposits or payments that have been made but not cleared, towards the end of the month.
If you find that there are bank errors, deduct or add them to the ending balance. If your calculations do not tally with the bank statement, inform the bank about the mistake, so that the bank can prepare a reconciliation statement of its own. You may even have to omit
Many Americans are currently in need of urgent personal loans. In addition to their immediate financial problems, their loan applications are being rejected by banks and financial houses, and the reason for this is their bad credit scores. A good alternative and as a last resort to crawl out of such a problem is to approach private money lenders.
Private money lenders are entities who can be individual investors or privately owned financial houses. They are non-commercial loaners whose procedures for offering loans is much less complicated, unlike in banks and public funding companies. Note that their interest rates are generally higher than conventional loans, and might change depending on the company. The paperwork is also not that complicated as it is typically. Many have benefited from such kind of personal loans. They are most suitable for those who have a bad credit history or are yet to create a credit record. When it comes to applying for a loan from a private money lender, you need to be wary of some important considerations.
The first step is to collect and document all the essential financial data that can be relevant to the procedure. You will be required to show
Your money is the lifeline of your home. The standard of living that you have is because you can afford it. Your money basically, is the heartbeat of your lifestyle. To continue living the same lifestyle and to reach higher standards, personal finance budgeting is very essential. Spending is inevitable, if you have money. However, money, or your resource is always limited and your needs are unlimited. Reconciling the two by prioritizing your demands will help in managing your personal finance budget. This practice of budgeting will help you save your money on inconsequential items and teach you the importance of prioritizing.
Need for Financial Budgeting
The need for budgeting arises because of the fact that you are responsible towards yourself. Responsibility towards oneself means, a constant struggle for the better. Thus, the need for personal financial planning is to fulfill the self-actualization need for improvement.
Monthly Financial Budgeting
Make a chart of income and expenditure, which you make all through the month. Based on this you will be able to make successive budgets. Here’s a chart that you can follow.
- Net Income
- Expenses At Home
- Home Repairs
- Home Improvements
- Natural Gas and Oil
- Child Support
- Health and Fitness
- Other Loans
- Contingency Fund
- Balancing Figure (Difference of income
People are getting married later in life now. More and more couples are waiting until after certain milestones are achieved, such as graduating from school or attaining job security. This means that more and more people are independently financially stable before merging their lives – and money – with someone else. That can spell trouble for a new couple; when two people who are used to spending freely without consulting someone else are all of a sudden asked to share financial responsibilities. As a newly married woman, I have first hand experience with how difficult it can be to merge finances with the love of your life. We were both employed long before we met, and financially stable as independent people. Rationally, one might think that would mean we would be financially stable as a couple, but creating one budget from two independent ones is sometimes more difficult than it looks. No one can say what will definitely work for you, but here are a few tips to keep your heads above water.
Where Did the Money Go?
Even if you and your partner keep your finances mostly separate, you are still jointly responsible for rent or mortgage payments, food,