July 6, 2016, 1:02 pm

5 First Steps to Building a Successful Budget

by: The Financial Blogger    Category: Personal Finance

 

Formal budgeting is often seen as a cumbersome exercise, yielding more tedium than tangible financial gains. Record keeping aside, the process does furnish valuable insight for those committed to tracking expenses and accounting for household cost of living. The key to maximizing the positive impact of formal budgeting is applying discipline and using the data to take control of your financial life.

In its simplest form, a budget is balance sheet, accounting for income and expenses. And while there are many ways to manage household finances, budgets formalize the process, putting your bad spending habits under a spotlight. Identifying where your money goes enables you to divert resources to more important areas, as you realign spending priorities. Especially when financial difficulties cause cash flow problems, budgeting helps ensure your income stretches to cover all of your expenses.

If you’ve had limited success with prior attempts, or are creating your first formal budget, stick to these basic budgeting tactics.

Categorize – Your household financial flow operates like a small economy, addressing spending in several distinct areas. In order to create a realistic record of your spending, break it into smaller pieces, to track as related purchases. Your “Entertainment” category, for instance, includes spending on movies, concerts and music downloads, as well as cable TV subscriptions and nights out with friends. Another classification, called “Food and Dining”, captures spending at the grocery store and money paid for prepared meals. If your gastronomic explorations are more like entertainment than sustenance, you may choose to file restaurant costs in that category. The key is remaining consistent, so categories reflect the same type of spending each month. Additional categories to consider as you track spending:

  • Travel/Transportation
  • Automotive
  • Household/Utilities
  • Clothing
  • School
  • Medical Costs
  • Your Own Unique Classifications…

Track Spending and Income – Effective budgeting balances income with outgoing spending. In order to build a meaningful budget foundation, it is important to closely track spending for an extended period of time. For the best results, note purchases in a ledger each month, for at least three consecutive billing cycles. Once each month is complete, budget columns can be reconciled, so you know exactly how much money was spent in each category. Over time, subsequent months can be used to identify and compare spending trends.

Accounting for income is fairly straightforward when it comes from a single source, but you should also include money made on the side. Investment returns, hobby businesses, and even gambling winnings should all be included in your plus column, before you begin to tally expenses.

Set Spending Limits – Once you’ve accumulated personal financial data, it is up to you to put it to good use. Using your established categories, turn your eye toward budget savings, setting spending limits in each category. Discretionary purchases yield the most potential for trimming, because ‘fixed’ monthly expenses do not change substantially from month to month. Be realistic, but also challenge yourself with budget limits forcing you to spend sensibly.

Make Adjustments – Even with several months’ worth of spending records at your disposal, it can be difficult to craft a manageable budget. Start with core costs, addressing big-ticket obligations like mortgage repayment, car notes and other fixed monthly costs. As you rein-in your discretionary budget, leave room for adjustments. A cancelled subscription, for example, can always be reinstated, should your budget yield resources to cover the cost. Likewise, ineffective budgets can be tightened further, when cost-cutting measures don’t add-up to sufficient savings.

Show Resolve – Budgeting is a directed effort, so commitment and resolve are key ingredients for success. If budgeting is uncomfortable, you are probably doing your job, leaving no spending unexamined. To assist those put-off by the process itself, budgeting apps and software simplify record keeping and furnish intuitive tools for managing cash flow. Use these and other resources to remain steadfast throughout the initial formal budgeting process. Once established, your budget becomes increasingly easy to maintain, as good habits replace poor spending outcomes.

Without an accurate understanding of where your income is spent, it is difficult to take control of your personal finances. Formal budgeting highlights cash flow trends, illustrating where your money goes. Armed with a ledger tracking expenses and a commitment to maximize resources, it is possible to carve out savings and stretch your financial reserves. Use these 5 steps to jump-start your personal budgeting resolve.

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July 5, 2016, 1:51 pm

The 3 Greatest Moments in Stockbroking History

by: The Financial Blogger    Category: Investment, Market and Risk

 

Stockbroking has been around for centuries. The stock market was initiated on wanting to invest on a business and from that make profit off of its performance. This still remains the same today. Stock markets are very important today for they also help economic growth in countries all over the world. Stock markets do emerge because this way they get the public to continue investing or begin to invest their money into stocks.

 

Stocks aren’t the only thing the public can invest in there is also bonds from the government. Next we will speak on three great moments in the history of stockbroking.

The Birth of Stock Exchange

The first stock exchange to ever happen was in Belgium. Antwerp was where it all happened, back in 1531. The way this stock exchange worked was by dealing with it with promissory notes as well as bonds. In the 1500’s there were no real stocks meaning that there was no real share. Beurzen’ was what early stock markets were called.

 

This was due to the influence of the Van der Beurze family whom was a resident of Belgium. This stock market resembled a lot of what’s going on today in companies such as CMC Markets and the stockbroking world. The way they were organized and ran was very similar to what we have today. The only major difference was what was being traded. No real company trading shares were being traded.

The East India Company

 

Belgium might have had the first stock exchange happen, but East India had the first publically traded company. Simply because they were willing to take the risk that everyone else didn’t. No company was willing to take the risk to go across the planet. This company was called Governor and Company of Merchants of London trading with the East Indies.’ So what was different about this company aside from taking the risk?

 

They came up with a plan that was a lot more intriguing when it came to investing. Investors would no longer have to invest everything on one voyage and take the risk of losing everything. They would now be able to invest and purchase share in more than one company. This meant that if ships were lost the investors would still make a profit instead of it being a complete loss.

The First Major Stock Exchange in the U.S.

 

The New York Stock & Exchange Board was the first major stock exchange in the U.S. This stock was initiated in 1792 in New York City’s infamous Wall Street. NYSE (New York Stock Exchange) grew quickly, so quickly they had to relocate to a much bigger and spacious building in order to keep the large amount of traders they had.

 

NYSE is one of the most well-known and largest stock exchanges in the world. CMC Markets keeps traders up to date by following the world’s largest stock exchange. In 2000 NYSE launched an electronic trading platform that introduced a lot more transparency with a more accessible way to the OTC energy markets. It has continually kept growing with inspiration from their customer’s needs. They strive to keep their markets, clearing, risk management, listings, technology, data and customer service up to date to keep customer needs in top priority.

These three great moments in the stockbroking history definitely changed the world of stock exchange. Shaping the stock exchange into the way it is today and still learning from important events like these. Nowadays basically every country has it’s own stock market. Millions and trillions of dollars are being traded on the daily in the stock market all around the world. Of course major stocks have gone through the ups and downs of having a crash at some point. Some of the biggest crashes include one’s like Black Thursday and Terrible Thursday back in 1929.

 

The electronic trading had it’s own crash in 1987 which nobody saw coming. Stock markets that are on the rise as of today include the Bombay Stock Exchange in Mumbai, India, BM&F Bovespa in Sao Paulo, Brazil. Today there are 18 major stocks exchanges in the planet. A big rise of online trading has made it quite easier to trade stocks all over the world.

 

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June 30, 2016, 1:35 pm

4 Things You Need to Know about a Revolving Line of Credit

by: The Financial Blogger    Category: Banks and You

 

 

Small business owners have several options when it comes to raising working capital – they can get a traditional small business loan with fixed payments, raise money from investors by selling shares of equity in the company, run up balances on credit cards, or get a revolving line of credit. A revolving line of credit is an important tool for small business finance, but this type of working capital is often misunderstood. There are several reasons why a revolving line of credit should be a key part of your financial management strategy.

 

A Revolving Line of Credit Offers Flexibility

 

Revolving lines of credit give business owners a great degree of flexibility. Unlike a traditional business loan with fixed terms and fixed payment amounts, a revolving line of credit can expand and adapt to meet the changing needs of your business over time. A revolving line of credit works like a credit card: you get approved for a certain credit limit (based on your creditworthiness) and then you can borrow as much or as little money, within that limit, as you need.

 

A revolving line of credit also enables you to have flexibility in regards to repaying the loan. Instead of a fixed term loan where you have to make the same payment every month, a revolving line of credit (like a credit card) gives you the option of making minimum payments that are more tailored to your monthly cash flow – although, of course, you need to be mindful of the added interest costs and fees that can accrue from only making your minimum payments.

 

A Revolving Line of Credit is More Convenient Than a Traditional Loan

 

A line of credit offers great convenience because you don’t have to apply and get approved for a new loan every time you want to borrow money. Also, many online lenders offer lines of credit with approval processes that are much faster than a traditional bank’s loan approval process. This makes a line of credit the ideal choice if you need cash quickly or if you have ongoing needs for working capital that need to be addressed with regular infusions of cash.

 

Once you are approved for a line of credit, you can continue to use that account with all the convenience of a credit card in your pocket (but without carrying the piece of plastic). As an added bonus, business lines of credit also typically offer lower interest rates than credit card accounts.

 

A Revolving Line of Credit is Ideal for Online Banking

 

More business owners are getting comfortable with the idea of online loans, and revolving lines of credit are well suited to online banking and mobile banking. Just like people use their smartphones to check their bank account balances or shop online or make payments, more bank customers are starting to be interested in borrowing online as well. For example, the Adobe 2015 Mobile Consumer report found that more than 20 percent of Millennials (and 14 percent of Gen Xers) want to be able to apply for banking products online, and more than 50 percent of U.S. and U.K. mobile consumers say they would like to use mobile-only banking. A revolving line of credit – depending on your choice of lender – can be applied for online and then you can check your line of credit details at any time from a mobile device. This spirit of flexibility, adaptability and convenience that is powered by mobile banking technology is a good fit for the current trends related to how more small business owners are expecting to access financial services.

 

A Revolving Line of Credit Can Help with Ongoing Expenses and One-time Investments

 

A revolving line of credit can be used for any type of business expense, but most financial experts recommend that your business line of credit should mainly be used for ongoing operational costs – paying bills, covering cash flow shortfalls, and so on – with a smaller percentage dedicated to one-time contingencies. By striking the right balance in regards to how to use your line of credit, you will be sure to have enough working capital available to pay your bills each month while still having flexibility to invest in growth – and if you realize that you need more money, you can always apply to increase your line of credit to a larger credit limit.

 

A line of credit is an essential financial management tool that can help your business survive, thrive and grow. Before applying for a line of credit, make sure you do your research: understand the fine print and calculate any fees or costs, and make sure you have a good strategy in mind for how you want to utilize the line of credit. Whether it’s for ongoing expenses or one-time investments, a line of credit can help you have a flexible source of cash to keep your business moving forward.

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June 14, 2016, 9:32 pm

Stuck in a Payday Loan Trap? Here Are Some Ways Out 

by: The Financial Blogger    Category: Pay off your Debts

 

paydayPayday loans can lead to cyclical dependence on a particular amount of money if you aren’t careful. This is the case with any loan product out there. Unfortunately, many lenders like banks, credit unions and payday loan companies restrict giving loans to individuals who have had credit issues in the past. However, whether or not a person has a good credit report or a bad credit report, it does not change the fact that they need an amount of money to fix the cash crunch problem. Companies like Cashco Financial understand this important point. That is why they choose to work with you to find a way to get you the money you need instead of making you jump through hoops and try anything not to lend you money. Visit www.cashcofinancial.com to see how they can get you cash today. Cashco Financial preaches that payday loans or short-term loans are not a solution to a long-term financial problem. Payday loans should only be used on occasions when absolutely needed.

Once you have the money you need, you should take steps to discover the root of the problem. When you have a shortfall of money at a particular time, it is important to first understand why. Without knowing what caused the cash shortage, it is more likely to occur again in the future.

Budgeting

Budgeting appropriately is the first step in practicing responsible personal finances. With a clearly defined budget that takes into account all your revenues and expenses, you can overcome any payday loan trap you may have found yourself in before. You will be shocked at how much money that can be saved with a few small lifestyle changes. For example, I used to smoke until I realized that it was costing me $240 every month, and it seemed that every third month when my bills would all pile up at once, I would have a shortage of about $200. After I set up a budget, I never had a cash shortage again. If you are worried about how to get started with creating your own budget, I found that Cashco Financial offers a Budget Buddy program for free online that helps you set up a budget. Check it out here and see how it can help you https://cashcofinancial.com/p/budget-buddy-signup/

Debt Consolidation

Debt consolidation is only necessary if designing and following a budget is not enough to escape a debt cycle within a couple months. There are numerous options available if you are considering debt consolidation.  Unfortunately, most of those options will involve destroying your credit score. Luckily, companies like Cashco Financial offer a product called a flex term loan to all of their clients. You can apply in minutes at https://cashcofinancial.com/term-loans/#apply and get up to $5000 to pay off your debts. Cashco flex loans give you the flexibility to have one affordable payment to manage instead of a dozen. The best part is that with every successful installment payment, your credit score will actually improve. If you have ever had bad credit or no credit, you know how important good credit can be. Get out of the payday loan trap and start building your credit score today with Cashco Financial.

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May 19, 2016, 3:05 pm

What to Ask Before Getting a Settlement Loan

by: The Financial Blogger    Category: Business

settlement loanSettlement Lenders believes that getting a settlement loan is a very important decision to make. Before going out and getting a loan to cover living expenses or medical bills while waiting for a case to settle in court, Canadians should do some research including a visit to settlementlenders.com. Researching and asking questions is a best practice especially in these types of situations.

The first question to ask yourself before getting a settlement loan or a lawsuit loan is: do I need the money? It is not an easy question to answer and requires a lot of thought and the weighing of many different factors. First, you need to calculate exactly what your current weekly and monthly bills are. Add up the rent, the car payment, the insurance, the utilities, the cable, the internet, child care costs, and anything else that has a regular payment attached to it. Then add expenses that vary such as food and entertainment expenses. Once you have the total amount, write it down.

The next question is what is your current settlement case for? Are you awaiting an inheritance, or have you been injured in a car accident or slip and fall accident? If you have been injured and your injuries are preventing you from working, are you receiving benefits like workers’ compensation? Hopefully you are, but if you are not, then how long will your savings last while you are unable to work? It can be scary to think about, but it is better to consider the potential results of all your options before making a decision on how you are going to continue to provide for yourself and your family as well. Maybe your savings will cover all of those expenses for a few months, but what happens after that? This is when a settlement loan or lawsuit loan can help you.

Who Should Provide My Settlement Loan & How do I Get the Money?

There are a few different providers of settlement loans in Canada and they each have their own advantages. There are a few things to consider if you are looking to get a settlement loan though. Is the settlement loan provider a Canadian company? If your lawsuit is in Canada, you are better off with dealing with a Canadian company that understands all the national rules and regulations. Find out how long the settlement loan provider has been in business. Most financial companies fail within the first 3 years of operation for numerous reasons, which makes it important that you get your settlement loan from an established provider like Settlement Lenders for example which has been serving Canadians for over 30 years and has a client base of over 10,000 Canadians who have been helped.

So once I choose a settlement loan provider, how do I actually get my settlement loan? Every provider has a slightly different process for getting funds to their clients. According to settlementlenders.com the process for getting a settlement loan from $500 to $50,000 is fast and easy with the money getting to the client in one of 3 different ways depending on the client’s preference (monthly installments, lump sum, or line of credit). Clients get their money the following day after they apply and according to the Settlement Lenders Privacy Policy, no personal information is saved or shared after the loan process. Repaying the loan only happens after the client’s case settles and if the case does not settle, the client does not have to repay the loan at all.

If you are looking to get a settlement loan, please ensure that you research a few different websites in addition to settlementlenders.com.

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