Category

Finances

Category

Thoughts To Remember When You Receive Unexpected Money

A higher paycheck than you were expecting; a sudden repayment of a debt you’d long forgotten you were owed; a compensation payout; an inheritance– whatever the cause for an unexpected influx of money, your finances will likely look a lot healthier because of it.

The one problem with windfalls is that they tend to be difficult to deal with correctly. While on some level you know you should do something constructive with your unexpected wealth, on another you’re thinking “shopping spree” or “move into a new apartment”. After all, this is money you didn’t expect and never had to budget with, so why not treat yourself?

 

While there’s nothing wrong with a little “treat yo’self” action, it’s also worth keeping the below thoughts in mind…

How much of a difference could that windfall make to your debts?

If you have manageable debts that you’re paying off and that are under control, it can seem pointless to try and repay them with your windfall. The debts aren’t problematic, debt is fairly normal in this day and age, and you want to feel that you enjoy that unexpected money.

However, paying down debt with your windfall — or at least some debt — can be seen as treating yourself in the future. Without having to budget for monthly repayments to credits, you’re going to be able to treat yourself for many months to come thanks to the budget surplus you’ll be able to enjoy. Use some of your windfall to offer partial settlements on tax debt or pay off your largest credit card, and you’ll continue to reap the benefits of doing so for months to come.

How much money could your unexpected money earn you?

One of the best ways to use an unexpected amount of money is to use it to earn more money, which you can then rely on for a boost to your monthly income.

There are a few ways you might want to consider achieving this goal. The most obvious is savings and the stock market, both of which can generate decent (though not great) returns. Additionally, you could consider peer-to-peer lending, which offers a higher degree of return on investment, or even starting a side business that can continue to earn you money for years.

Would you buy the items you want to buy if you didn’t have an influx of money?

Finally, the above question is well worth asking if you’re intending to buy items with some, if not all, of your unexpected windfall. If you’re going to use the money sensibly, then you should only buy items that you genuinely wanted anyway, rather than buying items just because you can.

It’s very tempting to just indulge yourself when you have cash burning a hole in your pocket, but sticking to items you already knew you wanted — and already had a purpose in mind for — is the best way of ensuring that you use your funds responsibly, while still allowing a little room for indulgence.

Woman Shopping
Image Source

To conclude

Unexpected money is always a bonus and, by thinking through the above questions, you can be sure that you make the most of it.

3 Ways To Afford Renovation On A Budget

No matter how old you are, owning your own home is an achievement. The fact you get to call a house your own is exciting, and because it’s your own you can do whatever you want to it to make it look good and feel more like a home that you always dreamed of. The amount of money that you spent on a deposit, legal fees and moving into your new home is often eye-watering, but that doesn’t mean that you shouldn’t be able to upgrade where you see fit. Making stylish upgrades to the rooms in the home isn’t just about the fact that you can add profit to the cost of your house if you choose to sell it on one day, it’s about your own comfort while you live in it.

The trouble is that you’ve probably spent your cash when you moved on the things we listed earlier, so trying to renovate a house when your bank balance says no is a little harder. The good thing is that you aren’t backed into a corner, there are ways to renovate on a budget. It’s just about figuring out how creative you are and how much you can put into your home. Saving money on your renovation should be what you are aiming for, and even if you initially pay for it by checking out the reverse mortgage calculator online, you still should be looking at where you can cut corners on costs. You should always work out whether the renovations that you are planning are likely to bring you value to your property before you get started. If you’re renovating for yourself and aren’t too worried about selling your home, then you should still make a list of how you can improve and tweak here and there. Low cost doesn’t have to mean low quality, and below you’ll see three ways that you can renovate on a budget:

Image Source

DIY. As much a possible, do it yourself. If there are walls to be stripped and repainted, then you need to do that yourself instead of bringing in someone to do it for you. It may take you longer to complete your project, but it’ll still be completed properly and when you decide that it should be.

Buy Reclaimed. Where you can, buy your materials and furniture and fittings second hand from places like thrift hardware stores, eBay and auction sites. It’s not always easy to restore period features, but by looking for reclaimed items, you can get the right image at a low cost.

Buy Wisely. When you choose to buy cheap paint or paper, you will end up having to buy twice and redo the entire job. Spend your cash wisely and only spend it once – this way, your renovation will cost you a lot less.

Your home is your castle, it makes sense to add a turret or two every now and then. Don’t be afraid to hunt around for bargains where you should: a home renovation should be an adventure!

Grow Your Income And Live The Life You Want With These Ideas

Image Source

Are you sick and tired of struggling to pay your bills every month? Have you been through some situations recently where you found it challenging to put food on the table for your family? Then 2018 is the year to turn things around and start living the life you deserve. In most instances, there are lots of ways in which you can increase your income or save some money. You just have to think outside of the box and take some advice from articles like this one. When all’s said and done, you might have to wake up earlier than you do at the moment and work into the evenings while you set everything up. However, it’s going to be worth the effort when you begin to reap the rewards.

Start a low-cost online home business

Thousands of proven online business ideas don’t require a lot of startup investment. There are even more concepts yet to be discovered. So, you have lots of opportunities to boost your income by launching a new venture from home. You can do that in your spare time until you manage to build your profits. Once your business earnings exceed what you get from your job; you can make the switch and go full-time. You just need to conduct some research and work out which concepts are best suited to your situation. Becoming a middleman (or middle-woman) is always a wise move because you don’t have to perform most of the work yourself. You’ll earn profits from linking clients who need a service with professionals who can provide it.

Image Source

Use your talents to earn as a freelancer

If you have a background in graphic or web design, there is a decent chance you can earn some extra income as a freelancer. Many years ago, that was almost impossible for people who didn’t already have lots of relevant connections. However, anyone can earn a living from freelancing these days as most of the work passes through dedicated websites. So, you just need to open an account, take a look at the jobs, and then make an offer to complete the work. You will soon build a decent reputation, and that could encourage some of your clients to contact you outside of the freelancing portal. That is how you will expand your venture and move towards a business.

Look for ways to save money on essentials

There are many ways in which you could cut back on spending and keep more of your hard-earned wages in your bank accounts. For example, you might think about reducing the cost of your smartphone contract. You might also shop at budget food stores to lower your weekly food bills. There are even some banks that will pay you to switch to one of their accounts. You can only do that once, but it could assist you in saving money and even making some too! Just search online and take a look at the checking account features on offer. There are comparison sites you can use to sort the wheat from the chaff and ensure you don’t overlook the best deals.

Image Source

Become an eBay arts and crafts trader

Websites like eBay are excellent places for you to make money from your arts and crafts creations. Thousands of sellers earn a decent living from greetings cards, personalized artwork, and similar products. You just need to get creative and come up with some concepts that consumers will enjoy. You can then list your products on sites like eBay and begin making a profit from day one. Just bear in mind that there is a lot of competition out there, and you’ll need to come up with unique ideas for the best outcomes. Some people make thousands of dollars every single month from that process, and so it’s worthy of your consideration. There is a wealth of information available online that will explain all the ins and outs.

Ask your boss about that promotion

If you’ve worked in the same job for more than a couple of years, it could be time to ask your boss for a promotion. Sometimes you have to take the bull by the horns and bring the subject up, even if it doesn’t appear to be the right time. When all’s said and done, you create a lot of profit for the company, and so it’s only fair they should reward you financially. Explain to your boss that you’re struggling at the moment, and let them know you will have to look for alternative means of employment if they don’t increase your salary. You should also mention that you think your wage is less than fair. If you’re an asset to the business; your boss will work hard to come to a mutually beneficial arrangement.

Image Source

Downsize or remortgage your home

Finally, if all else fails; you should think about downsizing your home and relocating or applying for a second mortgage. Remortgaging your property could provide you with a lump sum of cash if you have paid the original debt for more than ten years. Just bear in mind that your mortgage term will start all over again, and that means you’ll have to make payments for much longer than you otherwise would have done. Still, the concept will provide you with some money that could see you through the tough times. You just need to make sure you increase your income and sort your situation out before that cash injection runs out.

You should now have lots of fantastic ideas that will assist you in boosting your income and living the life you want for your family. There are lots of other methods you could try, but the goal of this article was to keep things as straightforward as possible. Now you just have to put come of these suggestions into action and start working towards your goals. Freelancing is probably the fastest way to get some extra capital right now. However, you need to create an in-depth strategy that includes many of the suggestions from this post for the best results. Whatever you decide to do, just remember where you found the advice that turned your life around.

Reasons You Need to Start Saving for Your Future Today

Image Source

If you have not started saving for your future already, you need to do so sooner rather than later. It is difficult to prioritise the future when you have so many things going on in the here and now that need your attention. However if you read on, you will discover a number of good reasons why you need to start saving for your future today.

Compound interest – The main reason why you need to start saving for your future today is because of the benefit of compound interest. Basically, this is when money makes money, and then that money makes even more money. This is what compound interest is, and it is why you will be able to enjoy a much more comfortable retirement if you start saving today rather than ten years down the line.

You never know what is around the corner – Unfortunately, you never know what is around the corner. Have you ever thought about what would happen to your family if you passed away? Of course, this is not a nice thought to have, but it is something we all need to think about. Would you really want to leave your family with paying for your funeral arrangements? This is something you can take care of today with a bit of forethought. There are plenty of affordable funeral plans available, which cost minimal amount per month, as well as insurance policies that will cover funeral expenses.

You may need more money than you think – A lot of people underestimate just how much money they are going to need when they retire. After all, people are living longer, and it is not uncommon for people to enjoy a retirement of 30 years and sometimes even longer. This can mean that you are going to need to make your retirement savings last almost as long as your career did.

It will be easy if you start saving now – Yes, your retirement may seem like a long time away, but that is exactly why it is beneficial to start saving now. You will only need to put a small portion of money away each month. In fact, it will be so minimal that you will barely even notice it. However, if you were to leave your retirement saving until ten or 20 years down the line, you would need to save huge amounts per month, and this will cause a massive strain on your finances. What happens if you are not even in a position to save then?

As you can see, there is no time like the present to start saving for your future. There are a number of different reasons why your future should concern you. So, start putting some money away, and you can enjoy a good retirement and ensure your family are protected when you are no longer here too.

5 Ways to Bust Out Of That Financial Pinch

We’ve all been there before (in fact, many of us have been there many times before): we’re in something of a temporary financial mess. It might be an unexpected expense that arrived exactly at the wrong time; it might be a period after a trip away or heavy birthday celebrations; or anything else. In any case, we’ve suddenly found ourselves short of cash. But don’t let this fact beat your spirit down too much: you have more options than you might realise, as we’ll see below.

Image Source

Use Your Money Wisely

If your unexpected expense hasn’t wiped you out entirely, then you’re still going to have some cash in the bank account. The trick here is to use this money wisely. Most people are guilty of spending much more than is necessary; indeed, when people say “I have no money,” it can often mean they don’t have enough money to live the expensive lifestyle they’ve grown accustomed to. Before you do anything else, think of everything that you absolutely have to spend money on before your next wage arrives. If you can make it, then you have nothing to worry about (except how to entertain yourself on a Friday and Saturday night).

Talk to Involved Parties

It’s not nice to be hit by a surprise payment. It’s even worse to hit by a surprise payment that you know is fully justified; as in, you have no choice other than to pay it. However, just because you need to spend that big bill, it might not be essential that you pay it as soon as possible. If it’s going to put you in financial difficulty, then talk to the people that are asking for the cash. They might be willing to postpone the due date or let you pay in instalments.

Rummage Through the Cupboards

Did you know that most people have thousands of dollars worth of goods in their home? It’s true. We often buy more than we need, and then forget about it all together! Before you start panicking about your lack of money, take a look in those cupboards: you might just find that you have plenty of goods you can sell to raise some cash. And you’ll also be clearing some space out in your home, too. Win-win!

Get More Cash

If you don’t like the idea of selling your possessions just to solve a short-term problem, then that’s only fair. You do have other options for raising money. Get a quick cash advance, and you’ll receive money that you pay back when your next wage arrives in your bank account. The application is straightforward, and you’ll receive the money in no time at all; a useful way to get out of a financial pinch, indeed.

Ask for Help

Finally, don’t forget those loving friends and family members! If you’re struggling, reach out and ask them for help. They’ll be more than willing to help you, and might even be able to help you in longer-term ways, too.

Small Business Financial Hiccoughs Solved

Image Source

When you start a small business, the finances can quickly get complicated. However thoroughly you planned it all out, and however cost-effective your business will be, there’s bound to be something that will throw you balance off and mean that you have a gap in your financing.

But don’t panic just yet. This isn’t the end of the road for your business and there are lots of ways that financial hiccoughs can be solved.

Take Out a Small Business Loan

You might not like the idea of taking out a business loan, but if you need an extra injection of capital, then this is definitely an option you should consider. A loan will help you to ease your finances and help you on your way to profitability in no time.

Before you do anything, you need to know exactly how much you need and whether investing in that now will boost your profitability enough to make the loan viable. This might sound very serious, but equally, loans should never be taken lightly and you may be asked what your business will do with the money before a lender agrees to terms.

Do watch out for interest rates and do the math before you sign on the dotted line. Use your worst case scenario profits to make an informed decision about whether you will be able to afford the interest and to forecast how long it will take you to repay in full. While the worst case scenario is unlikely to happen, it will give you a chance to exceed your expectations and motivate you to work hard.

Consider Invoice Financing

Another solution is invoice financing. This might not sound like a particularly attractive idea, but if you need an injection of capital in order to be able to fulfil an order and collect the invoice, this is a good solution for you.

Invoice financing works by offering you a loan secured on your customer’s ability to pay. This means that even if you have a bad credit score, you should be able to make use of this type of funding. While some lenders will only release a percentage of the funds to you immediately, you will be pleased to hear that other lenders will release all the funds straight away and then accept repayments on a weekly basis.

Cut Back on Costs

While borrowing is the simplest way to smooth over your startup’s financial problems, you should also be thinking about where you can make some cuts to prioritize the things that will make you profitable. This does take some forewarning so may not be appropriate for everyone but some expenses can be cut quickly and painlessly.

There are lots of money saving tips that might interest you. For example, if you haven’t negotiated with your landlord, now is a good time to try for a discount. You could also go paperless, saving plenty on paper and ink needs or you could even embrace telecommuting and have a much smaller physical office.

With so many ways and means, your financial hiccough will soon give way to plain sailing.