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Category Archives: Finance

Sacrificing Financial Security When You Become A New Entrepreneur

When you start a business, it is like having a newborn baby. Your business has no respect for sleep, for rest, for family dinners and for appointments meaning you have to manage your time properly, otherwise the business will take over your life. You have to seize every opportunity to rest, to have some time for the family and to enjoy some of your hobbies. The best way to prepare yourself for an irregular schedule is to improve your time management strategies.

Many entrepreneurs are prepared to sacrifice all their time for the success of a business. It is rare for entrepreneurs to understand that they are forfeiting something important because growing the business is their mind’s priority. One of the most effective ways of supporting a new business is to prepare yourself as well as your family to expect more responsibilities. There are instances when everything has to take a backseat because of a business emergency.

When you are starting a new business, you are not only sacrificing security and stability; you are sacrificing your financial security and your reputation. The pressure can sometimes be too overwhelming that even your productivity is impacted. It is important to prepare the family over the loss of financial security because of the commitment to the business. On the other hand, it is also critical to know how much of your finances you can commit to business and whether you are prepared to lose the investment.

If you used to work for 8 to 9 hours on a day job, when you pursue the dream of becoming an entrepreneur, your schedule will be irregular. You will only enjoy 5-minute, 10-minute or 15-minute windows at odd times of the day to relax and spend time for yourself. Since everyday will bring in a new challenge, learn to use proper time management strategies to prepare yourself for the loss of your personal time.

With the help of technology and information, there are now ways to tackle issues on productivity and time management. There are time management strategies that entrepreneurs follow to get the most from a day. Follow a daily routine wherein you have enough time to relax and forget about the day’s stresses.

Is It Worth Paying A High Annual Credit Card Fee?

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Is the $95 annual fee for a credit card worth the price? Chances are it isn’t because an average credit card holder will not use the card to simply justify the high annual fee. According to Bankrate.com banks earned about $90.3 billion in credit card fees last 2014 and the additional hikes in 2015 are expected to increase their earnings further.

American Express increased the fee on its Premier Reward Gold Card and its co-branded credit card with Starwoods Hotel from $65 to $95 last year. Banks are lowering interest rates but they compensate for lost earnings by raising the annual fees on their credit cards. Why is there an annual fee? It is aimed at customers with poor carry credit and are considered high risk.

On the other hand, credit cards with annual fees offer some form of benefit. A good deal for users are frequent flier miles or accumulated points for a free hotel stay. Other perks include access to ticket prior to their being sold to the public or the ability to check a bag while on flight without paying for the privilege. If you fly United, it is $25 to check a bag and if you do it for 4 times a year, you have easily justified the $95 annual fee.

Nearly all rewards require that you spend a large amount for a particular type of spending. For example, if you are paying $75 in annual fees with 6% cash back on purchases at a grocery store the card may be right for you if you are doing a lot of grocery time. If someone else buys the groceries, you are not justifying your annual fees but wasting money.

The best bet is usually the cash back without the annual fee so that you won’t be tempted to use the credit frequently. The credit card industry is competitive and it is important to make an informed decision with on the best rates, rewards and spending limits. To help you gain the right answers to your questions, visit CreditCard.info. You will find all the appropriate information on several credit cards where you can gain the best deals.

Here’s How You Can Choose A Financial Planner

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Financial planners are very different from accountants. They are also different from insurance agents, stockbrokers and those people from your local Fidelity offices. Don’t confuse financial planners with any of them as the roles of a financial planner are not the same.

Financial planners will help advice their clients on how they can best save money. They will also offer their advice on topics such as investments and how their clients can make their money grow. If you plan to buy a house or if you plan to retire, then they are the people you would want to be advising you. Heck, you can even ask them about mediocre things like if it is wise to give an expensive gift such as a car or a house to a special person or if it would be better if you bought a less expensive one placed in Paper Mart gift boxes, although it is uncertain if it would be good to ask them this.

When looking for a financial planner, you can check out these helpful tips below:

  • Consider the pay structure. There are three types of planners you can hire. The first one pays through commission, the second one are fee based, and the third one are those planners who charge by the hour. Commission-based planners are quite hard to trust since they might coax you into certain financial packages where they also have a cut but then again, fee-based planners are also not perfect. If it is your first time, you should choose a planner who charges by the hour because they are most likely those who are just starting their careers but would do their best since they would have to rely on your recommendations later on.
  • Look for a fiduciary. A fiduciary means that the planner has pledged that he will act on his client’s best interests at all times.
  • Check for credentials. Always verify the credentials that they claim. It would best if you hire a planner who is a CFP, meaning he has passed the tests of the Certified Financial Planner Board of Standards.
  • Run a background check. Make sure your planner has a clean record, especially crime-related ones.

The Financial Benefits of Owning Rental Properties

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It’s not easy becoming a landlord. Most real estate investors actually avoid or disregard the thought of acquiring rental properties due to the numerous challenges and risks it poses. People would often think that owning rental properties means there would be a large increase in property taxes. Not only that, it is also tough renting out your property to tenants. The wear and tear caused by tenants could also pose a great problem as well as the costs of maintaining and repairing the property.

It is true that investing on rental properties can make you or break you but setting aside all the fears that come with rental properties, why not focus on the positive effects it would have on you, especially with your finances?

As much as there are risks that would discourage investors to stay away from rental properties, there are also reasons why investors are attracted to them. This would primarily be for the advantage of acquiring potential passive income that would not need to be earned.

  1. Continuous Cash Flow. This probably the main reason why investors want to invest on rental properties. Tenants who rent your property would need to pay monthly lease payments which are more than the expenses of the property. When investors acquire several rental units and when their income reaches to a point where the investor would have no further reason to get a job, then their investments become their job.
  2. Know that properties increase their value as time goes by. So you might have purchased a rental property for about $100,000. Five years after, its value might have increased immensely. When you think about selling the property again, know that you will receive more than you have invested, especially when you effectively maintain and improve the conditions of the property.
  3. If there is appreciation, of course, there is also depreciation. This benefit mostly centers on taxes. When you own rental properties, it is expected that since you rent out your property, there would be a wear and tear caused by the tenants. When this happens, you can effectively apply for depreciation to reduce your taxable income at the end of the year.

These are only some of the benefits one can get from rental properties and there are still lots more for you to discover. So what are you waiting for? Acquire a Hua Hin rental property now!

Tips on How to Avoid Identity Theft

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People are certainly afraid of burglars but there is one threat that is even more serious – identity theft. If a bad guy lays his hands on your credit card information, you are bound to lose more than if a burglar enters your home. In identity theft, accounts can be set up under your name or thousands of dollars can be laundered using your account which can impact on your credit standing. It can take years and a lot of efforts to clean up the mess.

Based on the survey made by MasterCard on 1,000 adults it was revealed that 77% of Americans are anxious about their financial information being stolen. Only 59% fear that that their home might be robbed. It was also found out that many of the respondents still engage in behavior that increases the risks of becoming victims of identity theft or fraud. About 46% have not changed the password on their online financial accounts and 44% still use the same password for multiple accounts.

According to Charlie Price managing director of MorganFranklin Consulting’s corporate investigation who is also an FBI agent, every time you click on a link, you are literally opening a door to let the con man in. Identity theft must be taken seriously because attackers will not steal $5,000 or $10,000 from your bank account; they are going to steal something which is more valuable and that is your identity. Your identity can be used to steal more money from others.

In order to protect yourself from becoming a victim of identity theft, look out for phishing emails. These emails can trick you into believing that it came from your financial institution. If you click on the embedded link and type your password, the attacker gains access to your account. It is also suggested to avoid using your full birthdate and other personal details in social media accounts.

If you accidentally clicked on a phishing email, change your password immediately so that it cannot be used on other websites. If you have trouble remembering your password, make use of an encrypted password manager tool. Never carry cards with your Social Security number or that of your children.