Category Archives: Finance

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.

What You Should Know About Finances

‘Tis the season for young couples taking the plunge and either moving in together or getting engaged. It’s an exciting time for couples as well as their friends & families. People look for the perfect home to share and begin the merging (and purging) of possessions. But there’s an aspect of moving in together that people tend to avoid at all costs – money. Before embarking on this exciting new time in their lives, couples should make sure to discuss how they would like to manage household finances. Discussing a few things up front could help avoid relationship issues down the road. Here are a few points to think about:

1. Schedule a time to talk about finances – Make a date to initially discuss both of your general feelings toward your finances. Talk about how you want to budget, pay for bills and save for the future. Then, schedule a weekly or bi-weekly meeting to go over your budget together so you both remain on the same page as your lives progress.

2. Think carefully about housing – If you’re planning on renting, both partners should have their names on the lease. This will help protect both parties legally in case anything goes sour. If you’re making a long-term commitment to each other and are thinking about getting a home loan, the same rules apply. Make sure you both are legally protected if you decide to make this purchase together. If one person is more financially secure than the other, they can purchase the home and collect rent from their partner. It may not be the most romantic option, but in the end it could save a lot of headaches. If you both already own separate properties and are consolidating to one home it might be a good idea to rent out the newly vacant home rather than putting it up for sale right away. The newly generated rent income may reduce any unique financial burdens you may uncover by living together.

3. Document everything – Another important, unromantic aspect of protecting yourself while living with another person is making sure there is adequate documentation of every major purchase made. This is especially important for unmarried couples who do not have the same legal protections as married couples. Keep receipts for big ticket items and if the payment was shared, include the exact amounts that each person paid. This small step won’t take much time to complete and then file away the receipt. Hopefully, you’ll continue on in coexistent bliss and will never have to look at that receipt again.

Money can be a touchy subject, but people in a relationship will often have to address difficult subjects. A topic like finances should not be overlooked. Make sure you talk with your significant other about your financial future before moving in together – and definitely before buying a house together!

Children and Finance

As wise parents, we try to teach our children about the most important things in life. We make sure our children know to stay away from strangers, to treat others as they would like to be treated and the importance of education. Why not start teaching our children about finance and how to manage money? This article discusses children and finance and how to teach your kids about finance.

Give Your Kids a ‘Job’ –

Most children do household chores when they reach a certain age. Why not turn this into an important lesson in finance? Aside from their usual chores, you could give them an optional job or two each week that they can earn money from. You might offer them a few dollars to rake the yard or sort the laundry – anything that will actually be helping and that they can earn money from. Of course, if your children don’t do the job, they don’t earn the money! This is a great way to teach your children that money doesn’t come without hard work and time!

Start a Savings Account for Your Child –

Another thing you can do (which would work in combination with giving your kids a job) is start a savings account for your child. Explain to them how the bank keeps their money and even gives them a little extra each month for saving it. You can have them put their allowance money in their savings account and show them their statements each month so they can see their money adding up. This will help your child learn the importance of saving – and if you want, you can let them think about something really great they want to purchase once they’ve saved so much money. This will show them that by saving their money, they can get things they really want!

Older Children –

If your children are older, there are several things you can do in order to show them about finance. For instance, you could have them get a real part time job so they learn what it’s like to work for money and what goes into earning a paycheck. If they drive, they can help pay insurance on the car or give you a percentage of their paycheck for gas money. Of course, if they don’t pay for the insurance or gas money – they don’t drive. This may seem cruel but when your child gets a real job, if they don’t pay their bills, they won’t enjoy the benefits of the services. If they don’t work, they won’t receive a paycheck. These methods will properly prepare your child for the real world and a working environment.

These are some really great ways to teach your children about finance so that they will understand the value of money and how hard it is to earn. This is a valuable lesson that you can give to your child and you can use the tips and suggestions in this article to do it. Good luck!

Teaching Kids About Finances

Teaching your children about finances can be a challenge, but the best lessons in life are learned by doing. Here are some suggestions to help your kids learn how to manage their finances.

Young children 2-5
Periodically give a 2-5 year old a dollar to spend when you are at the store together. Let them pick a prize for themselves and allow the option to not spend it and save the money if they wish. I guarantee you will have a teaching moment when your child want’s something that cost more than a dollar. Simply say, well save your dollar this trip and next time we are here maybe I can give you another dollar (or two or three whatever it takes) to buy that. Deferred gratification is one of the greatest skills you need to learn for financial success.

Kindergarten and Grade School
Give children an allowance beginning in kindergarten. Start at $1 per week in kindergarten and increase it $1 each year until they reach 6th grade. Don’t tie it to chores, just give them an allowance and create opportunities for them to plan what they want to spend their money on and DON’T, ABSOLUTELY DO NOT bail them out when they squander all their money or don’t have enough to pay the sales tax. On the flip side, don’t berate them over squandering the money either. Learn to say things like “Wow that sucks, I am really sorry you don’t have the money to buy that, so how about the weather?” The bottom line is that them not having money is not your problem, it’s their problem. They will definitely want to make it your problem, but it’s not. You may have to bite your tongue, because our natural instinct is to point out to our kids where they screw up, but you have to truly not care about their money problems. The natural consequences in this system will take care of the teaching and you don’t have to be the bad guy.

I mentioned not tying allowances to chores and here is why. Doing chores around the house is part of being in a family and you don’t get paid for that. At least I have never been paid to do the laundry or clean the dishes at my house, maybe things are different at your house. It is however, acceptable to give children the opportunity to earn additional money by doing things above and beyond the norm. Establish the value of the job and what the standards are before the work starts. No children are not small adults so have reasonable expectations, but do have expectations.

Pre-teen/Teen Middle School and High School
By sixth grade, I like to change the allowance scheme and give them lunch money for school and then allow the option of fixing themselves a lunch to take (you have to provide the items to fix their own lunch, but don’t actually make the sandwich) The kid chooses to keep the money for other things or spend the money on lunch, just be sure you don’t fix the lunch or bail them out when they run out of money. Lunch money works well, because it is actually a pretty good amount in a typical school, but it is money you were going to spend anyway, so it rarely will break the family budget. The incremental cost of buying a loaf of bread and lunch meat is usually negligible and allows the opportunity for your pre-teen/teen to accompany and assist you in grocery purchasing. That is if they want input into the type of lunch items you buy.

The key to your child learning finances is it has to be their responsibility and if they blow all their lunch money on Monday, that’s the kid’s problem you have to let them deal with it. Nobody is going to starve if they miss one lunch or have to fix themselves PBJ’s for the remainder of the week.

Your Spouse or Partner About Finances

You probably know the old saying. The one that says the three topics you should avoid talking about are: (1) religious beliefs, (2) national politics, and (3) finances. While the first two are questionable, it’s vitally important to have personal finance discussions with your spouse or partner. Understanding how to speak about money, in a helpful and worthwhile way, can create the best foundation for both your relationship as well as your financial well-being.

Even if you are not married, if you share some amount of fiscal duties with someone else in your household, it is recommended you communicate about your finances. Even though we know we should do it, not everyone recognizes how to have successful “money chats” that don’t cause hurt feelings or even anxiety. This is most often because talking about money calmly and constructively is difficult when you do so only after a problem has already arisen. All things considered, it is usually fairly challenging to maintain your calm just after your significant other just revealed to you that you are having problems paying your bills, or maybe when you are they have just now made a precarious funding shift. As opposed to making unplanned or quickly arranged interactions concerning your economic destiny, address the matter in a way that will definitely lead to the best situation, logically.

Find a Great Money Manager

When most people begin a romantic relationship, few think about the need to be prepared in terms of financial responsibilities. Even worse than not planning, is the perception that money problems will merely go away or work themselves out without any effort. Needless to say, that’s obviously untrue. Research findings suggest that the more people disagree about finances, the greater chance they’ll split up. That is precisely why it is vital that you discuss your family assets often, and do so effectively. One method to do that is by seeking the advice of a fiscal manager, together, not separately. These financial managers work alongside you to produce suitable financial targets, and also give you support in accomplishing your financial goals. They are able to serve as an impartial and objective 3rd party, can inform each of you regarding your financial investment options/opportunities, and also make it easier to resolve issues on the subject of monetary decision-making.

Schedule Financial Conferences

But do not merely rely upon a paid monetary advisor, but be accountable for you and your significant other’s financial resources. The two of you should set a regular date during which you will sit together and talk about your budget. It is imperative that you go over the fiscal assets both of you have in common, in addition to the income you’ve made and use separate from each other. Throughout every single money meeting one of you ought to record the ideas you talked about, just in case the info is required down the road. And don’t be afraid to make these meetings interesting and fun: employ posters that lay out your goals, use photos, video, etc., to make your point. Clearly, discussing finances can be difficult for many, and doing stuff to lighten the climate will make these discussions pleasant and productive.

Throughout these sessions, both of you need to go over how well you’re managing your money, household finances, and sticking to a budget. Ensure that you talk about your combined as well as separate assets, and focus on techniques for repaying debts. If you’ve got investments like a 401k or IRA, look over the most recent earnings statements so you are both aware of how much money is in each account. And also try to discuss your own individual financial goals, as well as how well you’re progressing towards them.

Establish Financial Objectives and Budget

It is essential to create a personalized economic plan that you and your partner create independently, but that includes household finances as well. This procedure is really useful for couples who may experience differences in how they spend money. For instance, your spouse or partner might set a long term aspiration of saving a certain amount for retirement. Even though it’s not your personal goal, you are more likely to aid in their attempts because you’ve discussed it. Similarly, when your spouse is aware that you possess a certain goal, they will probably be more likely to try and help, and much less inclined to unwittingly do stuff to undercut your independent or common fiscal ambitions.

In addition, it is important to make a plan concerning the daily managing of funds. A great technique is to construct a spending plan (linking to your pay periods), and make use of it. One option is to set up an envelope system for all expenditures. Being that the majority of us do not pay bills in cash, use a scrap of paper symbolizing the quantity you will pay out. Place the paper in each designated envelope until all envelopes have been “paid”. Ensure that you set up envelopes that represent savings accounts and other funds. Lastly, once the important envelopes are taken care of, put any leftover income into a miscellaneous envelope for non-essential expenditures like entertainment.

Facts About Financing Plastic

In some cases, reconstructive plastic surgery may be covered by the patient’s medical insurance. Getting a cosmetic plastic surgery however may be a procedure that you have to finance yourself using a loan.

Now, there are already several options for people who can’t afford a cosmetic surgery. Before we look into those options, let’s take a look at what else you should know about financing plastic surgery.

Don’t Go for Bargains

You may be tempted to pick a surgeon who asks for less if you do not have clear options for financing such procedure. This is however, the worst possible mistake you could ever make. The costs are usually steeper if the surgeon who will conduct the procedure is already seasoned and an undisputed expert. An expensive doctor however is also more likely to be a safer option and eventually a more cost effective one. Cheap doctors may also have cheap services that may result in more problems because you would have to pay for corrective surgery on a botched up work.

Costs and Plans Vary

The extent of work to be performed, the type of procedure and the region you belong to are also some of the other factors that affect the cost of the procedure. Doctors and clinics will also therefore have different payments schemes or offers for financing such surgery. You would have to discuss this aspect as extensively as the procedure itself. Be warned that there may also be hidden costs or miscellaneous fees that you may not have asked about and may not be included in offers for financing the said procedure.

No Plan Scheme

Some clinics and plastic surgeons don’t allow financing plastic surgery or will not allow you to present loan or installment plans. Some patients may not immediately realize it but such a policy may be as much for the patient’s advantage as it is theirs. This is because such a strict policy will ensure that a patient can truly afford the procedure and its corresponding after surgery costs.

Some clinics will even ask for a complete payment before a procedure to secure patient assurance. This may be potentially dangerous though especially if accidents happen.

Finance Companies and Banks

Now, there are already several finance companies and banks that provide options for financing the procedure. Individuals can now fill up forms for approval to cover cosmetic plastic surgery. Most companies will tell you that they have affordable and flexible rates but the truth is that applying for a loan may be a little more difficult than imagined especially in banks.

Plastic surgery loans are actually unsecured by collateral. This means that a bank or company may have to meticulously investigate your credit history and report to find out if you are capable of paying. Even if you do pass an application for financing plastic surgery, some companies may have higher interest rates than others simply because it is their only security if you are suddenly unable to pay.

Things to Know About Financing

So you want to buy that new flashy Beemer, but you have fewer funds than you wanted, do you settle for another less expensive car? Nowadays, you don’t have to make sacrifices when it comes to the car of your dreams. Typically, financing a car is a standard procedure for most car buyers. It may be a confusing process but the bottom line is, you’re figuring out how to pay for your vehicle and deciding on the amount of your car loan is part of this process. When financing or leasing a car, there are several things to always keep in mind; which we’ll explore below the top 5 things you need to know about financing your vehicle.

1) The real price of the car is not accurately represented by its sticker price. Make sure you haggle the price if you aren’t purchasing your car from a “no haggle” or “no hassle” dealership. If you want to buy the vehicle immediately, chances are they will try their best to get you to buy, even if that means negotiating on the price as much as 5-10%.

2) Zero interest, or zero down, zero payments for one year may sound attractive and tempting for now, but in the long run it can actually be more of a financial detriment for you. Within the first year of these types of payment plans, the buyer may not owe a single cent. However after that first year, the buyer will be forced to start paying their car loan with above average interest rates and larger payments. This happens for a number of reasons. In your first free year, the dealer isn’t really paying for your car payment, which means that you will still have to make those payments, just at a later date, and now your payments will be larger and in a shorter time period.

3) The best financing option varies from people to people. A lot of car dealerships will advertise incredible financial plans, but really, when you calculate your debt, only a few select people with above-average credit will be eligible for this. Those who are not eligible to pay, must fork over several times more over the course of their financing term. Keep an eye out for these types of things when you’re choosing your car loan plan. Check your bank or credit union to see what financing options are offered BEFORE you head to the dealership.

4) Hidden “extra” fees are common when purchasing a car. On the final bill, such things as rust protection, fabric protection, and even tinted windows may be added expenses, which you don’t need. Be sure to cross these features off the invoice if you are certain you have no use for them. Dealers make a great deal of money by adding items that look “important” or a necessity onto the bill, so make sure all the features on the vehicle are the ones you want.

Wondering About Financing Small Business

Many small companies in the US expect some growth opportunities in the next year. That is the great news! The bad news? Financing opportunities are looking bleak, particularly if the business owner has less than great credit, or a new business. Why would you need to know about financing small business loans? The main reasons for small business financing are to receive working capital and funds for capital expenditures.

It used to be that applying for business cash for a smaller business was fairly straightforward. You’d pay a visit to your local friendly banker and talk about your business needs. You’d discuss what you needed and they would help with financing a business loan – yours, to be exact. Then, the financial crisis hit, and banks closed ranks and decided that loans for small business were too risky. Business cash almost dried up. The big losers? Small business owners.

Now, we see the result of lack of financing: many small companies are either struggling to stay afloat, or are finding it almost impossible to capitalize on upcoming opportunities. In a recent Year-End Economic Report published by the National Small Business Association, nearly 40% of small businesses report they are unable to acquire adequate means for financing small business loans they deem necessary for their business to continue and grow.

What are the options for companies to get the business cash they need? The large corporate bankers and small locally owned banks are not the alternative they have traditionally been. You may feel that your business is a captive being held by the current economic situation and credit crisis. What you may not know is that there is a great source of alternative lenders who can provide working capital for small businesses. It is possible for loans to be secured against cash flow or your accounts receivable. In addition things such as inventory and purchase orders can be considered. Do you own property, machinery or equipment? These things as well may be leveraged to secure loans for small business.

What happens when your long time banker tells you there is no money for your business? Don’t give up and think that all is lost. There is help just around the corner for you. Business lending has changed. It may seem a little different to do business on the internet, but that is the new way. You just may be able to get the financing you need when the bankers say “No way.” Asset-based lines of credit may be the way to go in this Brave New World.

Typical banks are just no longer willing to extend traditional financing to the small company owner. There are many reasons for this, some of which are tightened federal requirements, as well as skittish investors who only look at the bottom line. These factors combine to make it seem that any loans for business may seem quite impossible. But don’t believe that! There is a whole new world of private banks and small business lenders who welcome your business. Once the level of risk of the business being financed is determined, you may be pleasantly surprised by the rates and terms you may be offered. Take advantage of the growth opportunities for your business. Grow your business just as you’ve dreamed.

The Get Working Capital Quick management team consists of financial professionals who have a combined experience of over 90 years in the business world. Get Working Capital Quick is focused on providing a variety of funding solutions including working capital, accounts receivable factoring, purchase order financing, merchant cash advance, business credit lines, and equipment financing. We can assist you in obtaining the financing you need for your company.

Teaching Children About Finances

Teaching children about finances is a very important part of their upbringing in this modern age when it can be disastrous for young people to be unable to handle their finances properly. It is very important that kids learn early that bad financial planning can lead to problems throughout their life.

Children should be brought up to understand what money is and learn the benefits of saving and spending wisely. Here are some tips to help you to teach your children what money is and how it can be both a blessing and an anvil around their necks depending upon how they handle it.

A. Young Children

1. The Cost of Everyday Items

When children are able to count, teach them how to count using money. Teach them the difference between the various coins and denominations of bills. Show them how much money they need for everyday items: a Hershey bar, gum, pencils and other things they use every day.

2. The Advantages of Saving

As they grow older, explain how their allowance would not be enough to buy them something expensive, such as a watch, bracelet, football or their own cell phone, but if they saved a certain amount each week they could afford what they wanted after a period of time.

In other words, teach them what saving means and why they shouldn’t spend all their money right away. You could keep some allowance back for them as ‘savings’ and pay them ‘interest’ on it, teaching your young children how money can grow if they don’t spend it immediately.

3. Money as Earnings

Many families pay their kids for carrying out chores. Washing dishes, tidying their rooms and helping mom with the shopping. Many regard this as a form of reverse blackmail – you don’t get pocket money unless you help with the chores. You can overcome that by giving them a basic weekly allowance, and then extra according the work they do during the week.

Those that don’t work so hard will soon see that their siblings that do are earning more allowance then they are. You could also ‘save’ that extra money for them, or a proportion of it, until school camp, the holiday period or to spend on their summer vacation.

Including the saving aspect above, you can show them that by not spending $50 of their earnings, but saving it, they get $55 from you, or whatever seems a reasonable interest rate. You might even agree to match what they save so they in effect get 100% interest.

4. Explain Household Expenses: The “Cost of Living” Concept

Explain your own household expenses to your children once they have a rudimentary understanding of budgeting. Explain why you need to save for utility bills, rent or mortgage and insurances. How there are fixed financial commitments such as these, and then the everyday expenditure on food, clothing, travel and other expenses. Let them understand that everything has a cost, and it is important to have enough money each month to meet the fixed costs before you can take them to the cinema, ball game or McDonalds.

B. Older Children

Up till a certain age, you will have looked after your children’s savings yourself, and exerted a high degree of control over their spending. As your children grow older and have a rudimentary grasp of what money is and how it can either be spent or saved until they have enough for something they really want, you can teach them the responsibility of looking after their own money.

They will gain an understanding of banking, investment and the importance of living within their means – not spending more than they make or receive. Here are some ways of teaching your older children, who are in effect young adults, the importance of budgeting and using credit properly.

1. Open a Bank Account

Once they are old enough, open a bank account for them. You will be responsible for maintaining it and will have to authorize their withdrawals until they reach a certain age, but by doing this you will make them feel ‘grown up’ and responsible for their own money – even if it is a weekly allowance, or ‘pocket money’, paid into their account.

Explain the concept of interest again, and how they make money by keeping their cash in the bank and not spending it.

2. Make Them Responsible

When they want to make a withdrawal, never refuse, but discuss it with them and eventually agree to them making the withdrawal. If they spend all their money too quickly, then that is as good a lesson as saving it all. Allow your kids responsibility for their own money, BUT – also make them responsible if they spend it too soon.

This is particularly true if you have other children who have saved for a weekend camp for example. They will be miffed if you give the spendthrift money when they have saved up for it. That’s just an example, but you get the idea!

3. Teach Budgeting

Take your children shopping with you, and show them how some items cost more than others. If they want their own portable DVD player, show them the cost and relate that to their allowance – how much do they have to save for how many weeks? Offer to meet a percentage of the cost if they save the rest.

4. Explain How Credit Works

Show your children your credit cards and how they work. Let them see you use them in stores, and then show them the bills when they come in – that impresses on them that everything must be paid for. Also show them the interest payment, and explain that is the cost of borrowing money.

5. College and Credit Cards

It is important that your children grow up with an understanding that credit costs money, but that sometimes it can be worth it if the item purchased is important. Once your kids are ready for college, explain the importance of using credit cards only when necessary, unless they have enough saved to cover the monthly bill. Explain interest, charges and what happens if they only pay the minimum amount.

Finally…

Take some time on a regular basis to discuss financial matters with your children. You could have a general meeting when you all discuss interest rates for borrowing against saving, and the different ways they could save. You could also follow that up with personal discussion with each of your children separately regarding their own finances. How much they have saved, and how much interest they have earned. Discuss how much it costs to borrow money for things they want compared to the cost if they saved for them instead.

There are many ways for you to teach your children about money, household finances and how to look after their own costs of everyday living once they leave the nest. Whichever way you do it, you should be sure in your own mind that your kids have at least a reasonable knowledge of how to look after their own finances that will enable them to start off living their own lives with good background knowledge of household finances and the relative benefits of borrowing and saving.

Learning All You Can About Finance

When you are going to learn all you can about finance and business, you want to make sure you are getting the most detailed information that is available. When you go to figure out your finances if you own a business, you want to make sure nothing slips through the cracks.

This is to ensure a prosperous future for your business, as well as getting the most from it. This allows you to find out what you really need for your company, and what you really want out of it. How much do you bring in each month? How much do you put out? Can everything be covered with the input of money from it? These are all very good finance questions to ask yourself, and find the answers to in order to keep your business on its toes.

This helps you get the best business management that you could possibly have when figuring all of the money out. Not only can you find business financing information on the internet, and ways to protect your privacy information, you can also call a professional in the finance business to get information from them. They can also set up a time for one of their finance professionals to come over to your business and help you set up a budget, and a finance plan to better assist you with your finances in the future.

What could be better than having the help from someone who does this for a living, and also know all about ways to save you money for your business. Not only will they help you learn everything you need too but they will also help you balance everything out to make sure you are covering all of your debt so you do not go bankrupt in years to come.