Friday, September 18, 2009

Loans- Boon or Bane?

Borrowing money is a habit that had existed from very day that money came to existence. Today, borrowing money is much easier with well organized systems in vogue. Loans are issued for various purposes by banks, financial institutions, and even by private lenders. Needy people willing to pay high interest rates for loans become the victims of money-sharks. However, a wisely planned financial deal will help you obtain your desired goals. If you are at the verge of stopping your progress for want of money, loans can help you run you business smoothly. Prompt repayment of loans can also raise your credit score making you eligible for higher loan amounts in the future. While loans can bring forth fringe benefits like tax rebates to a disciplined person that is prompt in repayment, it can drain out the wealth of a defaulter.

Wednesday, September 16, 2009

Money Management Advice for a Debts Free Life

Money management is an art. It would be right to use the oxymoronic phrase ‘bittersweet experience’ while referring to loans. Loans can be both constructive and destructive in your lives. Loans are double edged swords that could relieve you out of troubled times, if you utilize them wisely. On the other hand any negligence or miscalculation can lead to your ruin for sure. There are instances where many well to do families have become poppers with loans because of their lavish attitudes and negligence.

When it comes to money management of loans obtained, discipline plays a major role in making and breaking of things. Never utilize a loan for a purpose other than it was originally sanctioned for. There are a variety of loans, such as vehicle loans, home loans, educational loans, personal loans, small business loans, re-mortgage loans, payday loans, cash advance loans, and many more! When you apply for a particular loan use it only for the purpose you had specified in the loan application.

Be prompt in paying monthly dues along with the interest to avoid legal consequences due to defaults. Had you been unfortunate with unavoidable circumstances and if you are unable to repay dues on time, talk it out with your lender to get exemptions or concessions. If you feel delicate you can always depend on debt management services that can use their professionals to negotiate the interest rates and reduce your financial burdens. It is worth paying a small fee to the debt management firms that can solve your financial problems in a dignified manner.

The best way is to avoid loans unless and until you are pushed to the extreme end of financial difficulties. Other ways to avoid loans include borrowing interest free money from your relatives or friend that can help you overcome your financial situations. Postpone unnecessary expenses that could wait till you raise the required money for the purpose. If at all you borrow for interest from registered lenders, pay the dues to maintain a clean credit report so that you can avail other loans with lower interest rates to repay the one with higher interest rate. If you do not follow the above money management advice, you will likely get into trouble sooner or later!

Thursday, September 10, 2009

Money Management Basics for Online Entrepreneurs

It’s a great idea to venture into online businesses because the virtual world is many times larger than its real counterpart. There are various advantages in running an online business, such as, ability to do business beyond geographical boundaries, quick transfer of funds or obtain online personal loans, ability to deal with various currencies of the world, and many more. However, before you begin your online business, you need to learn certain money management basics and online marketing strategies that could help you receive money online for your products and services across countries.

The first step in money management basics is to effectively collect money from buyers of your products and services. There are several service providers, such as PayPal, 2Checkout, etc. that help you receive payments from buyers across the globe. PayPal is one the most reputed service provider that you can rely on for your online business. First create a business account with Paypal and include the account in your website in the payment gateway. Once you have done this you can accept payments electronically. Linking the account to your bank will ensure safe transfer of your funds from Paypal to your account. Few other advantages of this system include payment through credit card and debit cards, currency conversion at the prevailing market rates and more. The second step in money management is to learn to invest money profitably. It is also essential to learn more about financing small business in case you need a financier to start your online business.

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Thursday, August 6, 2009

Personal Money Management Advice

Money management is one of the most essential skills required for a happy living in this age. Unless you take control of you money at the right time, it may lead you in to troubled future. There are a few basic steps in money management and these include setting a goal, knowing your ability, keeping track of your income, checking your expenses, cultivating the habit of saving, and learning to grow your wealth.


Setting a Money Management Goal


The end use of the money you earn or the purpose of your savings is termed as money management goal. Common money management goals include retirement, acquiring new wealth, clear debts, children’s education, and the like. Without a good plan even your savings could put you in a lurch. It is good to set a goal and work toward it.


Knowing your ability


Goals set without calculating your ability will end up in failure this is why you have to first analyze your potential and the means of putting it to full use in money management. Knowing what you have at hand, provide you with the clear vision of your goals and the steps to be taken in the future.


Keeping track of your income


This is really easy if you are a salaried class and you can do it yourself by maintaining an account book do add your extra income through other sources such as freelancing or other hobbies. If you were a business class with several sources of income it is wise to utilize the help of your auditor to keep track of your income. This is a good money management tactic which could also save huge taxes if you take appropriate steps on time.


Keeping your expenses under check


This is similar to keeping track of your income. Just write down the day-to-day spending in a notebook and audit it at the end of every month to reduce unnecessary expenses. This is the most efficient money management strategy in conserving your wealth. It is a wise idea to preserve check stubs, bills, invoices and other proofs so that you can verify it during the monthly auditing.


Cultivating the habit of saving


Make it a point to save a small amount apart from your primary goals. It is also a good habit to teach the importance of small savings to your children. You will find this small savings only return as a huge wealth at some point or at least come handy at times of urgency.


Learning to grow your wealth


Static money in the bank although earns some interest will only lose its value with time. So learn to grow your saving by wisely investing in fast growing financial sectors, such as shares, trading, real estate, and the like.

Friday, July 31, 2009

Teens Spending Money

Teenagers are big spenders. They see something they want, they have to have it. If they want a new computer, there's no stopping them from getting it. When they want to buy a car, they might beg you and ask you for money, or not stop working until they have the money saved. The problem with this is that it makes it harder for them to understand the difference between a need and a want.



If they get everything they want when they are younger, they might think it's a need when they are older. Or worse, they might not think of the important expenses such as bills as any more important then getting a brand new car. They need to understand what is important. You can't just keep giving your kids money for everything they want or need. They might never stop asking you for money if you continue to keep giving it to them.



Teach your kids and teens how to manage their money



Teaching your kids how to manage their money is one of the best gifts you can give your kids. It can mean the difference between living a sound life without worrying about money and living paycheck to paycheck with a mountain of debt. There are so many people today who are tens of thousands of dollars in debt or more. These people are in constant worry about how they will survive. Don't let your kids be one of them.



Money management is much more beneficial to them than simply deciding they just need to make a lot of money. Even people making six figures a year are in debt. It's our spending habits that get us into trouble, not the amount of money we make. Even if they can live paycheck to paycheck without going into debt and buying everything they want because of their high paychecks, they won't be saving and investing for retirement which could mean working for the rest of their lives.



Teach them to plan



If you don't have the money, you can't buy something. When your teen get's his license, he'll want a car. Instead of just buying it for him, have him save for it. You can even decide to match what he'll save. In order for him to be able to afford this car, he'll need to plan out his purchase. It's surprising how much a plan can really help you.



For big expenses and monthly expenses, teach your kids how to budget so that they can avoid taking out credit cards and building debt. If you don't have a budget yourself, make one so that you can be a good example and show your kids how to do it.



Teach them to track their expenses



With the Visa Buxx Card, your teens can track what they spend their money on. It's important that they know how they spend their money so that they can adjust it when they are planning. For example, if they need to save an extra $20 per month to save for a new computer, they might notice that they spend that much on snacks that they don't really need to be buying.



Teen Spending is hard to get a hold of, but when you teach them right now, they can get off to a good start.



About the Author: Samantha is currently attending college for a degree in accounting and likes to teach others how to stay financially sane in a world where management skills are lacking. To learn more about money management visit her website http://teenmoneycentral.com.



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