Make A Living Loving It Credit Options

Credit Options

Make A Living Loving It Credit Options

Besides the traditional loans, you may want to opt for credit, common types of credit are a line of credit, an overdraft on your account, or a credit card.

 

Common types of credit:

  • Line of Credit

    • A Line of credit is often linked but separate from your bank account depending on the financial institution you do business with, when you have good credit standings you can negotiate much better rates.
  • Bank Account Overdraft

    • An overdraft on your bank account is often offered to you when you are in good credit standings or when you have strong capital. An overdraft on your bank account should only cost you when you are using it.
  • Credit Card

    • Credit cards are offered from from several different financial institutions leaving consumers with so many options, leaving you the luxury to really look around to see what card suits your needs best, considering you have good credit standings.

Things to Consider When Signing up for Credit:

  • Your financial needs, does it make sense to sign up for credit?
  • How often you apply for credit, if you are frequently turned down, it shows up with each application, be weary of applying for too much credit and not being accepted, it does not reflect well on your overall financial standings.
  • The limit, how much you are comfortable borrowing.
  • The Interest rate, is it something you can maintain?
  • Balance computation method, how will unpaid balances be calculated over time.
  • Penalties and fess, know what happens if payments are late or not made.
  • Customer incentives, often credit cards and other credit products offer client incentives, shop around you may be entitled to vacation rewards, free gas or groceries or even cash back to put back into your business.
 

*Rates and conditions on all financial products, change frequently so ensure you have a contact on hand, (that you are comfortable with) of the financial institution you do business with so you can keep up to date and have your questions answered when they arise.

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Make A Living Loving It Calculating Costs

Calculating Costs

Make A Living Loving It Calculating Costs

When starting out, it's always a good idea to keep your eye on the prize, but to ensure you reach that end goal you want to know avoid the pitfalls of overspending. When you have a great new venture, life is exciting and we're a jam packed with gusto, but sometime that causes us to loose sight of the realities at hand. One of the major realities that CANNOT be overlooked is calculating costs, because it will burden your mind with financial woes, when really your mind should be positioned with thoughts on how to grow your new venture.

 

Calculating Costs, be Realistic:

  • Purchase Research:

    • Although starting up new ventures involves much spending, which is exciting and can sometimes seem overwhelming but exciting at the same time, when making purchases, research what you need and ensure your stretch your dollar. New doesn't mean best for you, gently used and refurbished shouldn't scare you especially when merchant warranties are included in the purchase price.
  • Schedule Spending:

    • Costs can add up quickly, although you can't always control it, when shopping for things like the office ensure you set a fixed date to get supplies regularly consumed. This will let you keep an eye on supply usage and avoid you running to the store and picking up things not previously budgeted for.
  • Track Spending, Organize:

    • Get a receipt at all times or at least a written account of your spending, this is essential because it helps you organize and justify where your dollars go. As well when when filing your taxes you will have an easier time recuperating the taxes you spent, claim your costs and get any refunds/returns you might qualify for.
  • Miscellaneous Fund:

    • You don't want to spend on things you hadn't accounted for, but the reality is that you can't account for all the costs that may arise, that's why having a miscellaneous fund, often referred to as petty cash is handy. It's your way of keeping a cushion for the unknown, but be sure to collect and receipts for all miscellaneous purchases, soon you will have less surprise expenses. .
  • Cost Software:

    • When starting out we often don't have the luxury to hire accountants to watch our every dollar. Luckily we're in an age where software are plentiful, affordable and efficient. Having all your cost organized at the end of a fiscal year is truly priceless, accounting software reduces the stress of cost calculations and are simple enough for the everyday person to use.

 

*Rates and conditions on all financial products, change frequently so ensure you have a contact on hand, (that you are comfortable with) of the financial institution you do business with so you can keep up to date and have your questions answered when they arise.

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Make A Living Loving It Return of Investment ROI

Maximize your Return of Investment

Make A Living Loving It Return of Investment ROI

When ever you invest, be it your cash, capital or even time you always want to ensure you get a good return. A good Return on Investment (ROI) is a good indication that your investment was a smart move in the first place, developing good ROI helps you to watch the market and eventually create a pattern on how to grow your revenue. Investing over mindless spending is normally a smart move, but investing and not paying attention to your ROI is just as senseless as mindless spending.

 

5 Things to Consider to Maximize your ROI:

  • Know your Investment:

    • Be knowledgeable or at least have a working idea of what you invest your finances in, never give your hard earned money away to someone who flashes you some jazz without any real information, if you do this you might as well throw your cash in the streets.
  • Consider Time Frame:

    • Know how long your funds will be tied up for, and when your first payout if any will be. Be sure that your investment's value is reasonably available to you when you need it.
  • Watch Trends:

    • History has a funny way of repeating itself, although the market can fluctuate often, knowing how trends affect your investment is important when trying to factor in a good return. If you invest in snow shovels and at that time of year there is heavy snow expected you're likely to see a good return.

  • Diversify

    • Because markets fluctuate wildly, you don't want to have all your eggs in the proverbial "one basket", if a major investment goes down, you want to be sure you have your money growing somewhere else to soften the blow.
  • Know your Competition:

    • Always be aware or have an idea of what the other guys are doing, so you don't miss out on the opportunity yourself. Your investments will be better equipped to grow when it is familiar with it's surroundings.
 

*Rates and conditions on all financial products, change frequently so ensure you have a contact on hand, (that you are comfortable with) of the financial institution you do business with so you can keep up to date and have your questions answered when they arise.

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Make A Living Loving It Loan Terms

Loan Terminology

Make A Living Loving It Loan Terms

When you're starting up and are not quite there financially you may be considering taking out a loan. There are many different options to consider, such as where, type, duration, and repayment. But before you sign on any dotted line you will want to list down your needs, have a solid budget written out and you should be familiar with the terms involved in the loan you will be signing up for. The more you know, the less nasty surprises you will encounter later down the line. Learn more about loans and what they involve, and what all those terms mean.

 

Types of Loans:

  • Small Business Loan (SBA)

    • A loan designed for small businesses already in operation needing financial help for operation.
  • Startup Loan

    • A loan structured for start up costs for businesses newly operating or about to operate.
  • Secured Loan

    • A secured loan is a loan that is backed by capital (items/goods of value) of the borrower.
  • Unsecured Loan

    • An unsecured loan is a loan that is based on the credit score/ credit worthiness of the borrower.

 

Loan Terms:

  • Interest Rate

    • What the lender is charging you for the loan, this is normally a percentage over the term of the loan.
  • Term

    • The duration of a loan.
  • Fixed/Variable Rate

    • Fixed Rate: Means that the interest rate of the loan will remain the same for the entire term of the loan.
    • Variable Rate: Means that the interest rate of the loan can and will change throughout the term of the loan, this is normally dependent on the market/bank/lender's rate.

Click here for a useful glossary on bank/lending terms arranged by alphabetical order.

*Rates and conditions on all financial products, change frequently so ensure you have a contact on hand, (that you are comfortable with) of the financial institution you do business with so you can keep up to date and have your questions answered when they arise.

Back to Finances click here.

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