Deal With Your Finances The Right Way

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One of the hardest parts of growing up, is dealing with all the money going in and out of your account – the worst part being when it comes out of course. Once you hit adult life, you realise just how financially demanding it all is and you will soon wish you could be a child again. There are so many bills to pay, as well as insurance, tax, groceries, clothes, and the luxuries that we often crave. It’s hard to live a lifestyle that you can’t afford, especially when you like the finer things in life, but the last thing you want is to fall in a never ending spiral of loans that begin to consume your life. – It’s a slippery slope that feels so good in the beginning, but can all go pear-shaped within the blink of an eye.

There are so many responsibilities that are asked of us, and that’s not to mention trying to juggle work on top of that, family life, and still managing to have a social life too. A lot of people who begin to struggle will start to close themselves away, sometimes without even realising they’re doing it. But this can begin to get unhealthy. Sure, you may realise that you can’t afford all the outings on the weekends, but that doesn’t mean that you have to shut people away. Nothing good comes from sitting inside of four walls trying to deal with all of your problems on your own. – It’s okay to ask for help. In fact, it’s encouraged. So if you really feel as though things are getting a little too out of hand, then always know that you can talk about it. Don’t let it consume you.

Unfortunately you can’t run away from money problems. You can certainly try, but they will soon catch up with you and will be twice as bad. There will come a time where you have finally had enough and you’re ready to take charge and control what’s going on, the proper way. Whether you’re in debt, struggle with overspending, aren’t making enough money, or don’t have any savings, know that there are always options and solutions no matter how bad you think your problem is.

Here are some tips and advice to get you onto the right track.

Cater to your own personal needs.

It’s important to know that every single person out there is different, so your friends may have some great money hacks that work for them, but that by no means means that they’ll work for you. Believe it or not, the kind of credit card you own can have a huge impact on the way you spend your money. For example, if you have a card that allows you to keep spending even you don’t have the money in your account, this can make it very easy to impulse buy because nobody is telling you no, but this is how you end up owing people money, and that’s not something you want to experience as it will cause you an awful lot of stress. So it’s all about finding the right credit card for you. There are sites out there that give you a whole bunch of information on what’s available, so if you’re not sure what direction to go in, have a read and then you can make a decision that is catered to you.

Speak to a professional financial advisor.

Trying to manage your money properly can be very difficult, especially if you’re not quite sure what it all means. You shouldn’t be embarrassed to admit this because a lot of people aren’t really sure how to keep their money safe. A financial advisor is a professional that specialises in all things finance, and they are able to give you their expert opinion on the best direction for you. In order for this to work well, you will need to be as honest as possible. This means telling them exactly how you tend to spend your money every month, including all the bills, as well as any other routines you have, like going to the hair salon or going to the gym, as these all cost money. They also need to know how much you earn too. With all of this information at hand, they can then evaluate exactly how your months pan out and what your lifestyle is like. By doing this, they will be able to advise you on things that you can do to not only save money, but also how to spend it more wisely that benefits you.

Always plan for your future.

No matter how old you are, it is so important to think about your future when it comes to your finances. No one knows what the future holds, and that is why managing what you have early on is so vital. Now of course, this doesn’t mean that you shouldn’t be having fun and living your life – it just means you should do this while being responsible and realistic. Every time you get paid monthly, rather than keeping everything where it is and regularly tapping into it whenever you please – break it up into separate categories. For example, open another account that’s purely for bills, and set up an automatic transfer from there with enough money inside every month to cover all of your bills, like the electric, water, tax, insurance, etc. Then keep your usual account for any personal spending, like clothes, food, and anything else you like. It’s also a good idea to open a savings account too, and whenever you can, transfer money into it. Then one day when you need money and aren’t sure what to do, you can remind yourself of your savings.

Now that you have a few ideas, think about your current circumstances and what areas you need to make a priority. As soon as you start taking control of your finances, you will feel as if a weight has been lifted off your shoulders, and you can begin to enjoy living all over again.

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Expenses 101: Are You Recording Yours?

Budgeting and financial planning are some of the most significant issues for small business owners just starting out. The situation is made even worse by the fact that many new entrepreneurs have no idea what they can list as an expense on their tax bill. That means new companies stand to pay too much tax if they make mistakes, and that can result in a lack of funds for things like marketing and promotion. Considering that, this post will list some of the most common expenses you can record on your tax return. Hopefully, the info will help to make sure you never pay too much tax, and you stand the best chance of success.

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Legal and financial costs

According to HMRC, small business owners are entitled to claim for legal and financial costs when submitting their tax returns. That includes the cost of hiring accountants, solicitors, or surveyors for business reasons. It also includes the premiums you will have to pay for professional indemnity insurance. Listing that spending will help you to keep more cash in your accounts in the long run. If you have any concerns about legal or financial costs; your accountant should manage to point you in the right direction and provide accurate information. If you can’t afford to employ a professional bookkeeper during the early stages of your venture, there are plenty of expert business advisors who can help.

Tools, property, and equipment

Depending on the nature of your operation, there is a chance that you will want to claim for tools, property, and equipment. Let’s presume you’re a plumber who uses 8mm stainless steel tube when fitting showers and other items in the bathrooms of your customers. While you can claim for the cost of the shower itself; you can also place any items you needed to purchase to complete the job on your expenses list. The same goes for people in any other industry. If you run an office and you need to buy new computers; you can knock their price off your tax bill.

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Car, van, and travel costs

The government and tax authorities understand that many business owners have to travel extensively to secure success for their ventures. So, it’s handy to know that all travel costs count as expenses when recording your tax information. That means you can include the price of hiring cars, booking taxis, or anything else that gets you from A to B. You just need to make sure you always ask for a receipt and keep it safe until you arrive back at the office.

It’s possible to record lots of other expenses on your tax forms including clothing, staffing costs, and marketing spending. Now you know the basics; you should be in the best position to ensure you don’t make mistakes or get into trouble with HMRC. If you fail to record all your expenses; you will end up paying more than your fair share of tax. That is a terrible idea because you could use that money to help fund growth and expansions into new markets. You could also use it to relocate your company to a more favourable location. So, get it right!

Who Says a Small Business Loan Will Cost You an Arm and a Leg?

For young mothers with an entrepreneurial mind or for those active, go-getters, strongly-motivated moms who may have already invested in some kind of business but may today, find themselves in need of additional funding to expand its operations, hire new people or get a higher-producing equipment … know that a well-planned, well-crafted small business loan is always a big help.

Sure, if you are new to making loans, this could sometimes be intimidating or even cause some anxiety for some businesswomen. It will, after all, mean a strong commitment. But loans are made every day. No need to fret or worry. Just about everybody who’s in business, big or small takes out a loan.

What’s important

The important thing is to plan, map it out well and make sure you do not miss out on any of the crucial elements that will help give you a realistic picture. Tips that should help:

Try to be as specific as you can on what you need, how much you need and what you feel you can afford to pay back monthly. Whether you’re planning on installing new equipment, hiring additional people or moving out to what you feel could be a more productive business location, do a little homework and work out the numbers. Get cost estimates on that new machine. Check out the prevailing wage laws in your locality. Get advanced information on rental costs of that promising site, or project your inventory costs. In other words, much as we hated math and barely made the passing grade in high school, we’ll have to apply a little of it in this project. No big deal. Simple addition and subtraction, a bit of multiplication and division should do the trick.

Once you have gotten the figure on the loan amount, consider adding 5-10% – This is to simply cover those small unforeseen expenses that generally crop up during business start-ups or expansion. No matter how diligent we are, there will be items we might not be aware of or costs might have suddenly increased.

So, how much is this small business loan going to cost you? Check out this useful tool: business loan calculator courtesy of Camino Financial. It will instantly give you the answer. How do you use it? Simple. There are a few blank spaces that you will just need to fill up. It’s easier than changing your baby’s diaper and faster than cooking your favorite Paella Negra.

Here’s how :

Enter your desired loan amount

Click on the number of months you would prefer to pay back the loan (choose from a selection of 24-60 months)

Select the 1% or 2.1% monthly interest rate

Click “Calculate” and Voila! You are in business!

The information that will come out will show you how much your monthly payment will be and the total interest you shall have paid at the end of the loan’s term.

Review this information. Should for one reason or another you feel the numbers are not viable given your present circumstances, you may enter a revised set of data for other options that will best suit your purpose. Simply click Reset Calculator. You can do this till you find the right, figures you would feel comfortable with.

So go with what the management gurus are saying … “Time is money.” Check out this business loan calculator today to help you determine what a small business loan will cost you and rev up your business. What you’re sure to find amazing is that the cost will look like something you would be glad to pay.

Suzanne Llanera

Suzanne Llanera is a writer for Camino Financial, an online lender for small business loans. Suzanne is also a professor of Management, Marketing and Advertising in one of the most prestigious Colleges in the Philippines. She has experience working with top international advertising agencies where she managed the accounts of a multinational bank and a digital, telecommunications company. Suzanne advocates keen creativity in the utilization of marketing and advertising budgets, especially for fledgling businesses.

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3 steps to decide your employees’ salaries

It is never an easy task deciding how much you should be paying your employees, even more so if it something you have never done before. It is important to find a good balance between paying enough to get the best possible staff, whilst not overpaying. You never want to pay more than the job is worth to the business, a salary is an investment like anything else and you should be able to see a return. Obviously, it is also vital to ensure you are complying with all wage laws and properly managing your payroll requirements.

Do your research

One great place to start is to research what other comparable businesses are paying for similar roles. You can often find this information on job advertisements and job boards. Spend some time looking online at similar roles, make note of things such as the duties and responsibilities of the position. Also looking in the same geographical area as your business will give you a good basis for comparison and give you an insight into what your competitor are willing to pay. Not all job adverts will state exact salaries, but many will at least offer a salary range to give you some indication of where to start. Check out this guide on researching salaries.

Look at salary surveys

Tools such as salary surveys can be used to determine the average salary for a specific job and industry. They are compiled from data collected from several employers, which is then analysed to determine a median salary. Salary surveys can focus on more than one job title, location and industry and are often conducted by specialists within the HR industry. When looking for a salary survey, be sure to find a reputable source that is proactive at keeping their information up to date. Salary surveys can quickly become outdated because of the time-sensitive information.

Do your maths

As mentioned earlier, a salary is an investment and therefore should have a return. For some positions, this is easy to work out. For example, for employees who are directly bringing money into the business, such as sale staff, you can easily work out if their salary is covering the profits they make; if they bring is £100,000 in profit then it is most likely worth paying them £20,000. For administrative and support staff this can be harder to work out as they aren’t directly bringing money in. The best way to look at their value is to look at the money they are saving your business, as opposed to the money they make. A good way to determine this is to look into how much it would cost to hire virtual assistance to complete their work instead but be sure to carefully think about whether virtual staff would realistically work for your business. Find out more about virtual assistants here.

It is also good to remember that some people value more than just money when it comes to their jobs. As a business there are plenty of additional benefits you can offer your staff to enhance their full package, such as flexible working hours, casual dress, extra holidays and telecommuting. All of these things can help enhance the appeal of your business to potential employees, and a lot of them won’t cost you a penny.

 

Buying a Business Online is a Good Investment

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There are a lot of established companies out there that are willing to sell their businesses online. They have varied reasons for doing so. You might think that the company is already going down in flames and so the owners have decided to just sell it. However, there are others who decide to sell a business while it is still on top. This shows that they are willing to take the risk even though the profits are much bigger.

If you are clever enough, you might take a second look at these companies. Whether or not they are doing well, you can infuse your own techniques to ensure they will end up on top under your leadership. Who knows? You can turn a failing company around or move a company that is already doing well to an even better position? Here are some more reasons why you should consider buying a business.

You can gain control

The good thing about buying an established business is that you already have an idea of what works and what doesn’t. This gives you the opportunity to redirect it in such a way that it can produce positive results. It can grow really fast if you have prior knowledge of how it has performed in the past.

You can infuse your personal ideas

You might have set your eyes on this business for quite some time and you have a lot of ideas in mind about how to make it better. This is your chance to make it happen. You have spent enough time seeing how the current owner handled the business. If it is in line with what you really want in life, your ideas could take the business in a better direction.

You have worldwide access

Now that you are buying a new business that already has an established presence, you are guaranteed to have a bigger market. They have already worked on certain strategies to make the business more popular. You just have to build on this. There are already followers who are loyal to the brand. You just need to keep them and make sure you can encourage more people to buy. There are effective strategies that have worked before in expanding the market and you can also do the same thing.

It is a challenge

Although it is also a challenge to start the business from scratch, it is even more challenging to redirect an already existing business especially if it is not doing well. If you are the type of person who wants some challenges, this could be the right path for you. It is never easy picking the pieces up, but if you enjoy doing it, you will surely make the most of it.

Take a look at the businesses that are up for sale online and speak with the owner for potential deals. Be careful who you deal with and make sure to negotiate before signing the contract. Once you have gone through all the details, you will be ready to get the business going.