10 New Business Mistakes that Can Get You Into Trouble
Thinking of starting your own business? Are you self-motivated in such a way that you’ll put in the long hours necessary to succeed? If so, you may have what it takes to prevent new business mistakes from becoming a bad habit.
Unfortunately, some individuals have the misconception that becoming financially independent can be accomplished in a short period of time. Well, I suppose its possible, but for most, they quickly learn the business facts of life.
Operating your own business can be very rewarding such as being your own boss, but there are a number of things that you have to comply with if you want to stay in business. The primary one is paying the various taxesthat are required.
This is one area where a new business owner needs to consult an experienced, qualified accountant before setting up a business entity. A lot depends on the type of business and how to structure it so that overall taxes can be minimized.
In my state, a few years ago, the LLC designation was added to the state level types of organizations. Practically every new View full post…
Each month, when all of those dreaded statements come in for your charges to those plastic cards in your wallet, your card issuer usually lets you know that you don’t need to payoff the balance. “Just pay this minimum payment”, they tell you, and before you know it, you have a high outstanding balance. Now you begin to wonder how to get rid of credit card debt.
Unfortunately, now it’s not so easy. For some individuals, there may have been a good reason why they only paid the minimum payment each month. Problems such as unforeseen medical cost, or the family car passed away, or even loss of a job.
But for many others, it was just poor cash management. They didn’t have View full post…
There are a few programs available, such as the Federal Housing Authority (FHA) and the Home Affordable Refinance Program (HARP) that have options for individuals with bad credit. These programs are not based on your credit score, and they don’t even require a credit check. Yes, you can refinance with bad credit.
Another organization, the U.S Department of Veterans Affairs (VA), offers mortgage refinancing to individuals who have bad credit. These are done through various lenders who determine their own requirements, and will vary by the lender.
Some of the statistics from August 2017 bear this out. Ellie Mae View full post…
Posted: October 20, 2017 Under: Mortgages By: Gust Lenglet
Most of us have asked ourselves that question on numerous occasions, sometimes in disbelief. We never dreamed that it would be possible, until we look at our credit card balances that have been slowly increasing. Would living on a budget prevent that?
Usually, overspending is not a conscious effort. It could start with something as simple as meeting friends on the way to work for a latte. Your cash is spent so you just charge the drink, no big deal.
A couple of times during the week, the same friends suggest that you have dinner with them. You are shocked when the credit card bill arrives and you add up those unplanned charges that total $320.00.
You didn’t realize how easy it was to overspend without being aware of it. Now how do you tell your friends that you can’t View full post…
Posted: August 11, 2017 Under: Budgeting By: Gust Lenglet
3 Reasons Why You Should Be Using Money Management Software
We’ve found that many individuals have financial problems due to a lack of understanding in the best way to manage their money. Quite often, they make mistakes that prove to be quite costly, especially when it involves an increase in debt. Money management software can be a big help in many cases.
There are several reasons that these individuals get into financial distress.
Some don’t know how to control their spending due to credit card mis-use. They see items they want and charge it to a credit card. Before too long, the credit cards are maxed out and just paying the minimum balance is very difficult.
Have you ever wondered if you really need a credit card? I can hear some saying, this guy must be nuts, who can live without at least one credit card? There are some though, who are highly disciplined and won’t have a credit card in their wallet.
This can be a mistake, however, because with proper use of a credit card, you can build a strong credit score. We’ll give you some tips about credit cards and credit score, and for the very few of you, some advice to consider.
Do I really need to have a credit card?
We all have different wants and needs as well as personal lifestyles, so on to the answer to the above question. There are some who have managed their finances very well for many years and have not used a credit card. They don’t expect their situation to change, and have even saved a tidy sum for possible View full post…
Posted: September 26, 2015 Under: Credit Cards By: Gust Lenglet
Disposable credit cards are also known as pre-paid cards. Pre-paid cards do not require good credit to get. In fact, these credit cards are not even linked to your credit report. There are multiple cards to choose from; grocery stores, gas stations, pharmacies, Walmart, and Target all carry them. Pick which one suits your needs, load money and use it wherever they are accepted.
Disposable credit cards are handy when traveling. I’ve had my credit card number stolen before while traveling so I now go to great lengths to protect myself and my financial information.
These are great options for children or adults that are beginning their journey into learning money management. While they will not help you build credit, they will not hurt your credit. View full post…
Posted: February 22, 2014 Under: Credit Cards By: Gust Lenglet
I overheard an acquaintance saying that she had no clue as to how to make a budget, and if she did, it wouldn’t work anyway. Knowing that she was incorrect, I was ready to put my two cents in, until I thought back to the first time I tried to create a budget .
I can still recall the first one that I tackled. I was really into it and bought a calculator and various office supplies to get it on down on paper, I was determined to create a budget that would work, and set it up with over 35 different income and expense categories. All that week, I saved my receipts for every little thing that I bought and at night I entered them in the appropriate categories.
How to Manage Your Money and Take Control of Your Spending
There are a few simple steps for you to learn how to manage your money. To begin with, you need to understand that you’re in charge and not your bills. Take the time to find out exactly how your money is spent.
Most individuals can only guess where their money goes after they pay their fixed expenses such as the mortgage or rent, utilities, auto payment, and perhaps a student loan. If you want to take control of your spending and also get your debt under control, you must identify your spending patterns. Then learn how to manage your money by re-allocating funds that are spent on items that are unnecessary.
How to Get A College Student Credit Card – Learn How to Use Credit Cards
All too often, as most teens enter college, they are bombarded with offers for a college student credit card. More often than not, they haven’t received any type of guidance on how to use credit cards, and for some, the temptation can be overwhelming.
This is especially true for those college students that attend a college or university away from their home town. For many, this is their first experience at “leaving the nest”, and besides being homesick, they realize that they are on their own and must begin to make decisions that parents used to make for them.
One of the first items on the agenda, is to open a checking account if that wasn’t done prior to leaving home. Many experts in the financial field recommend that a checking account be established in the student’s junior or senior year of high school so that you’ll have some time to guide them in proper handling.
Proper use of a college student credit card is one matter where the student must be trained, and under the watchful eye of the parent. To do that, it may be a good idea to give the student a card in his/her senior year of high school, and in that way, you’ll be available to offer advice and other assistance.
Teaching the student how to use credit cards is not a one time lesson or lecture. There is a learning curve that comes from experience and they need to understand how to use the card responsibly.
They need to be shown what high interest rate credit cards can do to a budget. Explain to them how individuals get into serious financial problems with credit cards by purchasing unnecessary items without sufficient income to repay the debt.
If possible, show the student what happens when only the interest, or some small minimum payment only is paid each month. I call this an evergreen account because the principal balance never changes.
One way to train a student how to use credit cards is to set them up with a secured card for a few hundred dollars. In that way, they can use the card, but the liability is fixed at the amount of the cash securing the card. This may also teach the student how to establish credit in their own name in the future.
Using the secured card while they are in high school will give the parent an opportunity to observe their behavior and ability to handle the card. If the results are satisfactory, then the parent can move the student up to a regular card with a little higher limit. Also encourage the student to repay the entire balance each month to avoid wasting money on interest charges that are not tax deductible.
There are many different types of offers that students will be tempted with, and one gimmick that appliance and furniture dealers push are “same as cash” purchases. They allow the credit card holder to purchase appliances or furniture interest free as long as the entire balance is paid off in 6 months. Many financial planners advise against these types of purchases as they can backfire when a card holder purchases more than they can repay. Then the day of reckoning comes and new problems begin.
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