Category Archives: Finance

What You Need to Know About Financing

Securing real estate financing form a lending institution is never easy. The economic downturn has made it even more difficult. If you are a first-time borrower the lender will not be willing to provide you a loan unless he is thoroughly satisfied about your credit worthiness. There are some steps that you might take before applying for a financing in order to secure the loan.

First of all you must know what the lender is looking for in a potential borrower. Your credit rating is the most important factor in this regard. The lender also calculates your net income and the current debt burden after which he arrives at the conclusion whether it is feasible for you to service the debt with ease. The local laws of the area in which you are settled, are also taken into account.

The rule regarding credit rating is simple in case of real estate or any other financing: the higher your rating, the more chance of you getting a financing from lenders. Your rating reflects you ability to service the debt as well as your level of integrity.

In case of commercial real estate financing, you need to convince the lenders that what you are offering them is a good secure deal. The financier will need to know that you business will generate enough cash flow to pay for monthly rentals. The plan must state clearly how much profit you are going to make and will it be enough to cover the costs and pay the monthly rentals. All the expense must be taken into account before arriving at the profit figure.

The three rules regarding real estate are very simple: location, location and location. The actual placement of the property is a deciding factor which determines whether you get a loan or get rejected. If you are applying for financing of a deserted piece of real estate, you are in for trouble.

One of the main purposes of the lender is to cover his risk from every possible aspect. Naturally he will be looking at different scenarios in which you might default. Consequently, he will lose his money as well. In order to minimize his risk he will take into consideration the current market trends. If the future of your proposed business is doubtful, you might not get loan.

Choose your loan officer very carefully since he is the person who can make your application go smoothly or cause u headaches. If an acquaintance knows and has worked with a loan officer in the past, ask for an introduction.

The loan officer asks some weird questions that might not seem connected to the real estate financing application, but rest assured. The lender needs to be satisfied about every aspect of your financial standing before he approves your financing facility.

Some of the typical questions asked by lenders are as follows. It will be very be very useful if you are already prepared for them before applying for real estate financing:

  1. The amount of income currently being generated by the property. The lender will need to see the income statements
  2. The lender will ask for an appraisal of the property by an approved appraiser
  3. The lender will definitely want to know how you plan to use the property. If you want to make amendments in the property, you should tell them now.

You must keep in mind that the lender is exploring every possible situation that might lead to your default in the future. Whether you need financing for your home or office, the real estate investing project must be undertaken with careful planning and necessary homework.

Quick Tips for Teaching Your Child About Finance

Kids learn quickly and achieve significant results when their five senses are stimulated. In this article there are five simple tips parents can use to teach their children about money while stimulating all five senses. Using all five senses will motivate children with increasing their awareness about the power of money working for them instead of against them.

Finance Tip #1: Monitor Your Feelings about Shopping- Shopping with a purpose (spending plan) will always save your family money. Shopping while feeling stressed or anxious often seduce families toward overspending and produce debt. Choose to experience feelings of patience, fun, and self-control before shopping.

Finance Tip #2 Visit Your Local Bank- Maximize your child’s visual learning about the banking system by visiting your local bank. Improve your child’s vision for saving more and spending less, by opening a savings account with the money they received from birthdays, kids business or allowance.

Finance Tip#3 Volunteer with Your Children- Spend an hour volunteering with your children by helping others who are less fortunate. Stimulate your child’s sense of hearing by speaking to them softly about donating a $1 or more of their birthday money, kids business or allowance to help seniors, abused children, animals or feeding the homeless.

Finance Tip #4 Have Fun- Introduce new ideas and games like “Guess that Smell.” Have your children close their eyes for thirty seconds to guess the smell of the mystery foods you have already prepared for them to eat. For each correct answer allow your children to earn twenty five cent toward the investment of their first penny stock. Pack a variety of foods with different odors; such as oranges, pineapples, strawberries, something with a little cinnamon, a little garlic and of course chocolate.

What You Need to Know About Financing

The majority of new car purchases are financed. Before heading to the auto dealer and signing the contract there are a few things you should know. Even though you can obtain financing from the auto dealer, you may have other options which offer better financing.

Car buying tips:

First off, remember that car salespeople are there to do exactly that – sell cars. Chances are if the car is there today, it will be there tomorrow. And, purchasing an auto is a big purchase.

Remember that you can negotiate, as the sticker price is typically not the actual price of the car. It is common for the dealerships to mark up the sticker price on the vehicle before placing it on the lot. If the auto dealer wants to sell the vehicle he typically expects to have to negotiate. Do not be over enthused about the vehicle. This will give you the disadvantage. Try to maintain a calm demeanor as not to give the salesperson any sort of read.

Zero down, zero interest and zero payments for “x” amount of time. Be very weary of so called deals like this. While they are attractive in the long run the buyer pays an above-average interest rate and larger payment. You may be off the hook from making payments for “x” amount of time, but when the payments do begin, the car dealership is making up for not lost interest and profiting once again.

Even though a car dealer will have on-site car financing, this doesn’t necessarily make it your best option. If you have above-average credit, then likely you will qualify for their wonderful financing. However, most people will not. It is recommended you speak with your bank or financial adviser to see what financing they offer and if it is more beneficial than that offered by the dealer.

It can be quite tiring purchasing a new car as you often have to work with many sales staff. First you have your salesperson. Then they include their manager at the table. Then the manager brings the finance department in. By this time, you are likely exhausted. And, this is the time to be especially aware of hidden extras that have been calculated onto the final bill. It is typical that extras like tinted windows and rust protection are added to the vehicle cost. Make sure to mark off any of these “hidden” extras.

There are many car buying tips to be aware of. One of the most important however, is not to act irrationally and to check with your bank previous to shopping for the vehicles.

Q and A About Finance Jobs

Planning to get into the finance industry? Well there is a lot you will want to know about the much hyped industry before you actually join in. It is indeed one of the most popular career choices today and finance careers are indeed looked upon as golden careers. Finance jobs today pay the best salaries in the job industry and you should stop worrying about the recession coz it is almost over. The finance industry has almost completely recovered from the recession and is back to making a steady progress. Fresh investment is flowing in and finance seems to be thriving like the good old times.

There are many avenues to finance jobs today. Government finance jobs promise you job security and are still a popular preference for many. In fact there are many government institutions which have a good intake for finance jobs. Except for government banks and financial institutions almost every government office does need a finance department.

Now if you are really ambitious and have huge set goals for the future the private sector is where you must concentrate. It’s not that one cannot develop in a government organization but there are many limitations to this growth which are absent in the private sector. There is a huge requirement for corporate finance jobs owing to the big scale corporatization of the business industry. Be it multinational companies or small local companies almost every organization is heading towards corporatization which again is a great advantage for finance aspirants.

Now how to begin a career in finance? The first thing you need is a strong educational background. Make sure you do your academics well and score the best of grades coz these are the only things which will help you in the initial years in finance. You firstly need to graduate from a reputed college for which you will need excellent high school grades. If you are still in high school this is the right time. Start getting serious about your education today itself.

After this you will need to get into one of the best finance internships available. Internships are one of the best ways to learn more about the finance industry. On the job training at an internship will groom the finance professional in you. You will also get a chance to interact with some of the big guns in the finance industry this way. It helps with developing a network in your industry which is very essential to grow high. This network not only helps you with job opportunities in finance but also ensures that your work moves on smoothly no matter where you are.

After the internship you should get into an entry level finance job. It is very essential that you give your 100% in these jobs as the competition is humongous and to leave an impression you have to prove your worth. Do not dream of reaching the skies in a day rather work to achieve your ambitions in a slow and steady way.

Need to Know About Finance Jobs

Finance and finance jobs can be quite complex, but for people who are endowed with great analytical and numerical skills, the challenges can be quite minimal. If you want to pursue a career in finance, here are a few things you might want to know:

1. Basic Requirements

Jobs in the finance industry are promising. It is one of the reasons why getting them requires a lot of effort, skills, and education. The most basic educational requirement for a job in finance is an undergraduate college degree. But when you apply for a job here, you will usually find that some applicants have in fact graduate degrees such as MBAs and other masters’ degrees.

Like other industries, finance has an established set of professional qualifications for evaluating applicants. Requiring applicants to be licensed as Certified Financial Analyst, Certified Financial Planner, or Certified Public Accountant is not uncommon in the finance industry. Careers in finance are bright and rewarding, but since they involve money, they require great care, accuracy, and attention to details.

2. Where to Find Job Opportunities in Finance

Finance institutions can be found in almost every city anywhere in the world, but many of them are located big cities. If you want to get a finance job abroad, you should consider that most companies prefer employees who can speak in the native tongue. Besides English, you should learn a second language to qualify for a finance job in other countries.

3. Job Opportunity Resources

Because of fierce competition, finding a finance job can be a challenge, but there are resources that can help you find the job you want. A lot of finance professionals join the workforce straight from college or graduate school. They found their job when financial firms visited their school and offered them work.

The school is therefore a good place to start to find work especially if you are still in studying. If you have graduated from the university, there are lots of job resources to go to including online job postings of reputable finance companies, recruitment firms, and social media sites such as LinkedIn.

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.