Here’s How You Can Track Expenses Effectively and Avoid Going Overdraft

If you are struggling with managing your finances so as to avoid getting into debt, you are not alone. Being in your bank account overdraft can be helpful when you really need the facility, especially for short-term borrowing or in cases of emergency as a last resort. However, you can run into problems when you start relying too much on it. Going over your limit does not simply mean you have to repay what you owe, it also means that there are extra charges that are incurred. Effectively tracking your expenses can help you keep your finances in check so that you do not go overdraft. Here’s how:

  • Keep Track of Your Spending

A sure way of effectively keeping track of your spending, is by itemizing your spending from time to time, and identifying areas where you can reduce expenses. If you find areas where you spent needlessly, like a gym membership you do not use, monthly subscription for magazines that you do not read and so on, it is advisable to cut them off.

Take a look at your card payments, withdrawals and so on. What was the money used for and where do the expenses leave your account balance? Understanding your overdraft is another way to keep track of your spending. You have to constantly know the state of your bank account so that you know when you are approaching your limit. Although you do not have much of a problem when you have access to authorized overdraft where there is an agreed borrowing limit, it is even worse if the overdraft is unauthorized, and no prior agreement has been made between you and your bank. Even so, it is always safer to manage your spending in such a way that you do not need this credit option in the first place.

  • Monitor Your Budget

It is easy to go over your carefully drawn out budget if you do not consciously monitor it. You need to be sure that you can afford the expenses you have listed.

When you spend within a budget, you are better able to reduce the possibility of spending without first thinking about it, so that you do not spend spontaneously. Although it takes a lot of discipline, consistency with monitoring your budget helps you save more, helps you know where your money is going and keeps you debt-free.

  • Make Use of Apps to Manage Your Money

There are a number of online tools and applications that can help you with getting your personal finance management right. A major challenge for many people with effectively tracking personal expenses is that they sometimes have to manage different bank accounts and pay different bills. Keeping up can be challenging. Thankfully, there are personal finance and management apps that help.

Selling your car? Here’s three reasons why leasing could be better for you financially


If you’ve reached the end of your tether with your current car, and you feel it’s time to upgrade to a fresher model, you don’t have to save for months on end to reach that point – you could go out and get a new car right now. How? More and more people are reaping the rewards of leasing a new car. If this all sounds like news to you though, then read on for our top three reasons why it could save you money in the long term.

  1. Depreciation is reflected in the price

The biggest benefit to leasing over buying has to be the depreciation factor. Simply put, as soon as you buy a car, its value begins to drop. With some vehicles it’s more than others, but in a lot of cases, it makes far more financial sense to lease, because the monthly instalments you make decrease as a reflection of the drop in value. Were you to buy the car on finance though, the amount you pay would remain the same.

If you’ve found a car that you love, it’s well worth doing a check online for the depreciation of the vehicle first to see which option would be better for your wallet. For example, Which? recently conducted a study on several specific models, and found that, while a Volkswagon Scirocco was worth 63% of its original price after three years, a new Ford Mondeo was worth just 36%.

  1. How many miles do you drive?

If you’re looking to lease a car, it is also important to consider how much you drive. For example, if you’ve worked all of your life and commuted, but now you’ve reached retirement and are using the car for personal use only, then leasing is a fantastic option. You may not need a car all the time, so having the ability to lease one for a month or so when you travel to stay with friends or relatives can be hugely convenient.

Most lease agreements can also restrict the number of miles you do, in so much as they will charge you for any extra accrued. So, if you’re driving far less than you used to, leasing is a more financially stable option; you can negotiate the number of miles driven per month, meaning far less costly monthly instalments when compared to loan payments.

  1. It can be claimed as a tax deduction

There are even more benefits if you are an entrepreneur. As a business owner, it’s worth noting that lease instalments can be registered as a tax deduction. Plus, some people may be worried that they will be refused a lease due to a bad credit rating, given the financial checks involved. However, it’s actually easier to get a lease on a new car than it is to get one on finance, so again, it’s far more convenient.

Do you know any other reasons why leasing could help your finances?

How to get a business loan


If you’ve got a small business or a start-up and you’re new to the world of business finance, it can be a little overwhelming. You need an injection of funds in order to grow your business, but where do you look for a loan? It can be very difficult for small businesses with no accounts and no track record to get an affordable loan, unless they know where to look and how to go about it.

Here are the basic steps you need to follow to find the right loan provider, apply and get your loan approved:

Step 1: Work out exactly what you want, and what you can afford to repay

Before you even attempt to shop around or apply for business loans, you need to crunch the numbers and perhaps sit down with a financial adviser to pin down exactly what you need. Consider all of your costs to see how much money you actually need for your plans, and then turn to terms. How much can you afford to pay back each month and how many years will you need in order to repay in full? Will you want the opportunity to repay early, and will you be happy with a fixed or a variable rate?

Step 2: Make sure your business plan is rock solid

The key to success in business loan applications is often the strength of the business plan. The lender will want to see a plan that is thorough, comprehensive and realistic, with plans for failure as well as success and plenty of facts to back up ideas and forecasts.

Step 3: Run a credit check

It is absolutely crucial to know your business credit rating before applying for a loan, as this is something lenders will definitely want to see. Many companies offer free checking services, and if you don’t yet have a business credit score then you should make sure your personal rating is as high as possible.

Step 4: Shop around

Armed with your exact requirements and all you need to apply, you can now start to scour the market for the best deals. You can find all the information you need quite quickly online, with comparison services being particularly helpful. Look for the cheapest rates, the terms that suit you and also consider your chances of being accepted.

Step 5: Prepare your application and practice your pitch

Whether you need to persuade the lender on paper or in person, it’s important to prepare your application carefully. Detail how every penny will be spent, make sure you have all the facts and figures at your disposal and crucially – always be on time if you have an appointment at the bank.

Step 6: Consider negotiating

If you’ve been offered a loan, congratulations. However, if the terms or the rate don’t quite suit you, don’t be afraid to ask the bank to consider a different offer. If you can provide a knowledgeable, fact-backed challenge, you never know – you may end up negotiating a better deal.

Interest rate fall softens the blow of rising prices

The cost of borrowing is important to us all. While the physical price of a big ticket item is important, it doesn’t reflect what many of us actually has to pay for it.

Take the cost of a car, for example. The average price paid for a motor in the UK is said to be £21,164. Not many of us has that sort of cash lying around – or indeed the money needed to buy a more modest model either.

Most of us would need to pop some numbers into a loan calculator and work out what that would end up costing by the time we’ve paid it back.

That’s why the interest rate is important. Data from the last few decades shows how much this has fallen. In 1975, the Bank of England base rate was 11.25%. By 1995 that had almost halved and by 2015 is had fallen to 0.5%. It now sits at just 0.25%.


These numbers don’t reflect the cost we actually pay when borrowing, but they are closely linked to the offers we can get.

So, while the cost of everything might have gone up over the past 40 years – at least we don’t have to pay more for the privilege of loaning money from a bank. It might be a fairly small silver lining, but while the cost of a car is 11.5 times more than it was in 1975, houses 18 times more and even a pint of beer 20 times the price of ’75, it’s a much needed positive.

Experts also reckon the cost of borrowing should stay low for a while yet, with the Bank of England rate tipped to be below 0.5% until 2021.


Entrepreneurs That Started Successful Companies You Wish You’d Invested In


An IPO; Initial Public Offering refers to when a company that is private, sells its stock for the first time to the public. This is normally a way to raise market-awareness and capital by small companies even though it’s a method also employed by large companies that seek to be publicly traded.

Large companies that are today publicly traded were private companies at some point I time and they chose to make the leap into been publicly traded. There are companies out there that most people wish they had taken time to look into and invest in as it would have been the investment of a lifetime.

Below is a list of three companies that were once private but had their stocks go up tremendously the moment they were publicly traded having many people wishing they could go back in time and invest in them early.

  • Chipotle Mexican Grill Inc.

In the year 2006, Chipotle Mexican Grill also known as CMG was launched as an IPO on the NYSE: New York Stock Exchange. At this time, its shares were priced at $22 for one share. On the first day of its stock been traded, share prices hit double figures so that by closing, the cost of its shares was $44 per one share. The company’s highest price of all was in 2015 during summer when it hit $742.23. This was before the company’s earnings, share price and revenues were dropped by issues of food safety.

Today, CMG trades for about $400 per one share. What began as a small establishment in Colorado by Steve Ells turned into a giant in the field of business as it brought in freshness in the burrito business, making it one of the companies that one would’ve wish they had invested in a few years ago. In 2015, Chipotle was in more than 2000 locations with a staff base of more than 45,000 people and a net income of about $475 million.

  • Starbucks Corporation

Starbucks was founded in the year 1971 in Seattle, Washington by three partners; an English teacher: Jerry Baldwin, a writer: Gordon Bowker and a history teacher: Zev Siegl.

In the year 1992, it went public. At first, its shares were going for $17 per share. Going by stock splits it would mean that the initial share price would’ve been about $0.27 per share. If one would have been able to get to purchasing 100 shares when the company began publicly trading, it would mean that that investment would be worth $370, 175 today. This figure is excluding dividends, which as of 2010 the company has been paying.

In the coffee industry, we can term Starbucks as being a household name. It would be difficult not to notice one of its outlets in the big cities. Every year the company continues to expand and open up thousands of new outlets. Its plan is to expand to about 30,000 outlets on the global scale. The company will continue expanding what it offers to its clientele. This means, only more success awaits it.

  • Inc.

In the last handful of years, Inc. has proved itself to be in the list of the hottest stocks. However, this was not always the case. In the year 1997, the company made its debut for a price of $18 per one share on the NASDAQ. For those who were able to buy about 100 shares of the company’s initial price on the trading day, I guarantee that they are just about the happiest investors out there. The company’s stock split three separate times which means, the 100 shares bought wouldstartup-1685533_640 be just about 1,200 shares. This means that an initial investment of $1,800 from the 100 shares bought would be worth a mind blowing $897, 852.

Despite some setbacks here and there, Amazon stocks have been one of the best performing showing no signs of slowing down per say. The company is growing its cloud businesses and ecommerce everyday which means improved profits and revenues thus these good returns don’t seem to be ceasing any time soon.

Bottom Line

There are a number of financial derivatives dealers who offer online trading to investors across world markets. Dealers such as CMC Markets analyze stock markets and help investors buy and sell profitable stocks though at the end of the day, the decision is yours as an investor

Every year, companies continue launching IPO’s and investors are ever seeking out the next Chipotle, Starbucks or Amazon in their respective industries. The above companies continue to perform very well as they expand their business which means they are still viable investment options.

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