Monthly Archives: July 2018

Teach Your Child About Finances

As with anything you do as a parent, your children are going to learn their spending habits from you. You are responsible for teaching them how to manage their money, and they will use what you teach them for the rest of their life. So how can you teach them to manage their money wisely?

1. Make Them Work

No one legally gets money without working. This is a lesson that every child needs to learn very quickly. I don’t mean that they have to earn every dime as a small child. But at a very young age, they should be given small chores to do in exchange for some spending money. Not only will they enjoy getting the money (small children love it!), but it makes them feel grown up and teaches them responsibility.

2. Make Them Wait

Children are very impulsive, and they want to buy things right when they see them. You must teach your children to wait before buying, or they will continue to be impulsive buyers even as adults. Make your children wait a week or two before they buy that big-ticket item. Help them understand that there will always be something to buy, but that they have a limited amount of money.

3. Teach Them To Give

Teach your kids that it is not always about them. Sure, they worked hard for their money, and they have every right to spend it any way they want. But teach them (and show them) the joy and responsibility of giving. Don’t make them give all they have earned – just a small part will do. But let them choose who they want to give to. Help them understand that there are always less fortunate people who sometimes need a helping hand.

Rental Property Financing

There are a number of articles and books out there that will tell you all the secrets of rental property financing. These tips and secrets can help you become very successful within the property market in the future. When first interested in getting finance for your potential investment, it is important to decide whether you are going to use your own money or you want to take a loan out from a bank or other lending institution. There are a number of difficulties and obstacles involved in obtaining a loan that is associated with this type of finance.

Financing for properties tends to be harder and more expensive to achieve as compared to regular property financing. The rates charged for rental properties are generally more higher, the fees for processing can be higher, terms and conditions for the loan are stricter, credit ratings need to be higher and a number of other factors make it difficult for investors to get mortgages on good terms.

For any real estate investment, the key issue is catching hold of a good potential property investment. The main techniques of rental property involve buying a below market value or old unit or property that is in a good area even if it is in bad condition. Many properties before being sold need cosmetic repairs in order to make an impression and attract potential buyers.

Smart and using the correct methods of property financing can help you fasten the process of making money. However, if you are interested in investing money in a rental property, you will need to be patient and work hard so that you can make this investment highly profitable. If you do not have the desirable budget that allows you to purchase a perfect investment property in one go, you can take the alternative route. You can go in for a rental property unit that is in poor or low condition and then make improvements to it. You may then be able to rent it out at a future date easily at a satisfactory market price.

Teaching Your Kids About Finances

It’s common knowledge that if you yourself as a parent, set a good, solid financial example to your kids…they will grow up as financially responsible adults. Well, sometimes this concept alone is not enough. However, the old saying still holds true: “Kids will do as you do…NOT as you say.” It’s just human nature. Whatever your kids see you doing will tend to set a general pattern for them. Your kids will be watching you, so you need to set a good example when it comes to finances and money.

We all learn the basics of money in grammar school…but learning about money and being responsible with it is two very different things. It’s so vitally important (especially with the unfortunate economic conditions today) to expressively teach your kids about the value of the all-American dollar. How do you do this? There are many things you can do to go about guiding your children to be financially responsible.

Good Saving Habits
You can never start too early. Purchase each child a piggy bank and start teaching them good saving habits. Start them off by you, yourself putting some change in each one that may have been around the house, or throw a couple of dollar bills in them from your own pocket. Tell them to put money in the bank on a regular basis. If they find loose change somewhere…tell them to put it in the bank. Don’t give them the chance to spend it.

If you and your spouse have a savings account, openly discuss it and talk about ways to be able to invest more in your savings. Let your children actually hear your conversations. Your kids will pick up on this more than you think.

Have your children go shopping with you. As you are shopping for bargains…explain to them how much you will save by making a particular purchase versus another. Be sure and tell them just how much money you are saving. Teach them to buy in bulk sizes versus buying just one of a particular item.

Allowances
Parents have various opinions about giving their children an allowance. Some parents are all for it, and some are not. I personally believe that paying an allowance teaches your kids about working and earning money. Make a list for each of your children of the duties that you realistically think that they can do, depending on age. Remember…this is only beneficial if your child really completes the duties that are on their list. If they don’t do what they are supposed to be doing, but yet you give them an allowance anyway…they really are not learning anything are they? If you give an allowance, stick to your guns and make them do their share of the work to earn that allowance. I think it’s a good idea to get them to save at least half of their earnings…this reinforces good saving habits.

To encourage saving even more…you can award them with an additional amount of money according to the amount each one has saved at the end of a month, two months, or three months. Make the award a percentage of what the child has saved up as interest.

Include Your Children In Family Financial Decisions
Firstly, it’s important to sit down with your kids and explain to them where all the money goes out of your paychecks. Tell them how much each of you earn and exactly how much goes out of your pay to pay all the household bills. It would help to actually make a chart with the family income and all expenses. If you have an office…this would be an ideal place to display the chart.

If you are planning say for instance, some home improvements for the year, sit down with the whole family and discuss exactly how much the home improvements will cost you and also how much money to save up each month to be financially prepared to do the projects. The same goes for saving up for family vacations. Any big expenses that arise, be sure and discuss it with all the family members. This will further instill good financial planning and saving habits.

Realistically, a person never¬†really¬†learns the true value of a dollar and how to manage finances wisely until they are fully on their own and making their own money. But…the time invested in teaching your kids the basics of finance will pay off and it will certainly help put them on the right track by encouraging good habits now.

Find Information About Financing

Nowadays, financing a new home purchase is a lot harder than it used to be. The economic climate means that a lot of lenders will now not lend to a large number of people who a few years ago would have had no problem accessing cheap credit. The amount of money being loaned out has fallen, and lenders are now demanding larger deposits from homeowners.

Not being able to obtain finance is something that a lot of people really do struggle with, especially when they are just getting started on the property ladder. The first option is to visit high street lenders, as they are usually the ones that offer the biggest range of products. The best thing about high street lenders is that they can offer great advice about financing a new home purchase.

That being said, these lenders will generally push products and services that will make the most money for them and it is not always certain that the consumer will get the best deal. It is certainly worth comparing offers from different lenders to try and see what they will offer.

People that are looking for information about financing a new home purchase should also go onto the internet. There are a number of great resources which will help people to try to understand their options and enable them to decide which the best option for them.

A lot of people do not understand the different types of mortgages, which certainly does not help when they are trying to make a decision as to which one to take. The two main mortgages in the financial markets today are variable and fixed rates mortgages.

Fixed rate mortgages are generally designed for people that need some extra security. While the rates might seem quite high in comparison to variable rate mortgages, there is a good reason. If the rates go up then the fixed rate mortgage payer will not be liable for any extra charges, which obviously reduces the amount of stress a great deal.

The Easiest Lesson About Finance

The easiest lesson about finance and investments is this…the most difficult thing you’ll ever have to overcome is in your head, and it’s self-doubt. You are your own worst enemy, and it’s difficult to understand why we would be battling against ourselves in an effort to create wealth, but it’s true.

In the society of today, we are not all programmed to think with the mindset of the rich. We are not taught that we can have the lifestyle that we choose for ourselves, let alone how to make that lifestyle an actuality. We have been taught to accept less than what we desire for ourselves and our families. Now I don’t really know how that came about, but it’s about time it stopped for you and your family, don’t you think?

The truth of the matter is that in this society in which we live, at the beginning of the 21st Century, there is so much opportunity for improving the lifestyle and living standard, it is practically limitless. We live in a world ruled by money, and the funny thing is, the majority of that money is actually made up, a figment of our imagination. That’s another article, but the point is that we can help create some of that ‘imaginary’ money and make it work for us.

The best part is yet to come – and that is that there are free tools to get you started on this whole journey, this new phase in your life. There is no way that you will be able to do this alone, but don’t worry, there is plenty of support out there, just waiting for you to make a decision and take action.

The big question is: “How do I make this happen?” The answer in turn is simple – you need to retrain your brain, and make it your friend and ally, rather than your enemy. To do this you’re going to need to de-train what you’ve been taught about investment and finance, and replace that false information with information which will actually assist you. As sure as I sit here typing this today, you could be taking steps to absorb that new information you need in order to start making the right decisions to create wealth and improve your lifestyle in whatever way and measure that you want.

Take action and take the steps to get that information you need to learn about investing and finance. Don’t just swallow what the big organizations tell you, find out for yourself what the best strategy is for you, based on your circumstances and goals for the future. After all, who is the person best qualified to know the true value of your money? I can guarantee that your money means a whole lot more to you than it does to the investment broker or adviser down the street. Remember – you have to learn before you earn.

In Any Given Economic Climate

The way to study and address the different ways that individuals, businesses, and organizations raise, allocate, and use monetary resources over a period of time while also taking into account the risks involved in projects is the realm of finance. Finance can incorporate the study of money, other assets, management, control of such assets, and profiling and managing risks associated with projects. It can also be interpreted as being a way of providing funds for a business.

When one thinks of finance, one thinks of the activity of applying a set of techniques that individuals as well as organizations use in managing their financial affairs and, in particular, finding out the difference between income and expenditure as well as the risks of investments. When income exceeds expenditure it allows the business entity to invest such excess income or lend it out. It may be used by individuals and is known as personal finance or by governments which is termed public finance and by businesses where it is called corporate finance. In addition, many other organizations such as schools and non-profit organizations also use finance. Using appropriate financial instruments allows each individual user to accomplish their goals.

Personally, it revolves around knowing how much money an individual needs in the future, what the source of such funds is, how to protect the funds against unforeseen events, how to transfer family assets across generations, and what effect taxes have on personal financial decisions. Also, personal money management would include paying for education, financing of durable goods, buying insurance, and investing and saving for retirement.

In business, it is a task that takes care of providing funds to drive the company or corporation’s activities and involves balancing risks as well as profit margins. Long term funds could be sourced by ownership equity as well as long-term credit, sometimes as bonds. Corporate finance also deals with investments through fund management. When the corporation or company invests money it acquires assets that it hopes will maintain or increase its value and investment management portfolio. When choosing a portfolio one needs to arrive at decisions concerning what, how much, and when to invest. This requires identifying relevant goals, aims, constraints, identifying the best strategy and whether it is passive or active, and hedging strategy. The corporation or company will also need to measure how well the portfolio management is over time.