Archive for 'money'

Consolidating your debt

Debt consolidation loans are a financial solution that may be suitable when you have multiple debts at once and are struggling to manage them all.

Debt consolidation is the process of bringing together all of your current outstanding debts into one single repayment. This is typically done by taking out a new personal loan to repay your existing debts and then paying this new loan back over a set term. While they may seem like an appealing idea, there are a number of potential negatives to consider as well as the benefits.

Pros:

  • Consolidating your debt into one single loan to repay can be easier to track and manage.
  • Those taking out a debt consolidation loan may benefit from a lower interest rate compared to what they are currently paying. This means that over time, you can expect to save money.

Cons:

  • Without being mindful of your finances, the lower regular payments as a result of consolidating your debt may lead to you spending more overall. This creates the potential to accrue more debt and pay more in the long term.
  • Failing to keep up to date with regular loan payments could end up affecting your credit score and put you in further financial hardship.

Before deciding to apply for a personal loan to consolidate your debt, take the time to consider all of the potential advantages and risks that are involved. Factor in your own circumstances and look for a loan that offers an interest rate and terms that will work for you. For more information, you may consider seeking professional financial advice.

Posted on 10 May '19 by , under money. No Comments.

Ensuring your invoices are paid on time

Having a healthy supply of cash is vital for the survival of small businesses, as it is required to operate and enables you to pay workers, rent and other expenses. Unpaid invoices can lead to poor cash flow, a significant reason small businesses fail.

Late invoice payments can add to the strain of being restricted by limited resources. As a business owner, you should take the necessary steps to ensure prompt invoice payments and reduce your stress.

Structure:
A structured collection process when it comes to chasing payments can provide a strong foundation to minimising losses as your business grows and can release thousands of dollars into your cash flow as a result of faster payments. By embedding certain practices into your day-to-day operations, the time dedicated to invoicing and chasing late payments is more efficient and effective.

Prompt invoicing:
Fast and correct invoicing is a great way to encourage faster payment. The earlier that you send your invoice will mean the client can make payments as soon as possible. Contacting clients after sending your bill allows issues to be addressed quickly. Checking if they have received your invoice and are happy with the services that have been provided is a good way to improve customer relationships.

Posted on 29 April '19 by , under money. No Comments.

The pro’s and con’s of using someone else’s money

Borrowing money to invest, also known as ‘gearing’, can be a risky business. While it can increase your returns when markets rise, losses can be extreme when markets fall. It is important to understand the risks involved when deciding whether borrowing to invest is right for you.

Benefits:
The main benefits of borrowing to invest are:

  • It gives you more money to invest.
  • If you are on a high marginal tax rate then there may be tax benefits as you are usually allowed a tax deduction for interest payments on the loan.

Risks:
Some major risks of borrowing to invest are:

  • The income that you receive from the investment may be lower than expected.
  • Interest rates on the loan could rise.
  • Income risk in circumstances where your income may stop, such as illness or redundancy.

It is vital to understand and have a plan in place to manage these risks. As borrowing to invest is a high-risk investment strategy best suited to experienced investors, you should seek further professional financial advice to make sure that this is a viable option for you.

Posted on 1 April '19 by , under money. No Comments.

Invest in your investments

If you are in a position to invest, it can be a great venture to help grow your wealth as well as provide opportunities for others through your contributions.

Before investing though, you need to consider what is the best avenue as there are many aspects of an investment you will need to examine to determine if it is the right fit for you. On a personal level, you will need to make a financial plan, consider risks, establish a timeframe of when you can invest as well as decide how involved in the processes you would like to be. When deciding where to invest, you should consider the following:

Understand the business:
As an investor, you should understand the day to day workings of the business you are contributing to. This will help you when deciding if an investment is the right fit for you. Research not only the particular business or company you are investing in but the industry as a whole so you can properly assess suitability. Make sure there is a market and audience for your type of investment.

Company basics:
Investors are allowed to look at the aspects of businesses that not everyone else can. When your money is involved, you have a right to know many things such as how the company functions, what it earns and how they pay employees. You should also look into whether the company is growing, their tax rates, debts and any other expenses they might have.

Management:
The day to day operations is what will help your investment strive so the management of the company is something to look into. Management history is a good way to gauge consistency, effectiveness and overall satisfaction. There needs to be cohesion between shareholders and management. To ensure this, partner with a management team that you align with which will benefit everyone involved.

Posted on 1 March '19 by , under money. No Comments.

Payday loan apps and websites; the pros and cons

Personal loans have become a fast-growing financing option for consumers, with payday apps and websites gaining popularity. For aid between paychecks, payday loans can be very helpful for the pay cycle lull. Taking out a loan is not something to enter into lightly though, there are many variables that should go into your decision-making process. Here are a few pros and cons you should consider before taking out a payday loan

Pros:
Payday loans are named as such because they are basically instant. Once applied, your loan is usually processed and paid out on the same day. This is very helpful if you are in need of money urgently between pay, like a fine or surprise bill for example. For this reason, the loan amounts can often be quite high. Like any other loan provider, the quicker you pay the amount back, the more likely you are to receive a higher loan the next time around. These services track your repayments and can increase funds based on your credit history. Application for payday loans is extremely easy as they are based online. The process is very quick and many payday loan services have app options so you can apply on the go.

Cons:
Any loan you take out will affect your credit rating so it is important to really think about why you need the loan before applying. Frivolous loans can greatly harm your credit score which could make life difficult down the track. With the loan process on these sites, if you are unable to make a full repayment by the agreed deadline, further fees may be charged to you but will not be revealed until you are required to pay. These payday loans often have a high-interest rate due to their instant nature and repayment period.

Posted on 14 February '19 by , under money. No Comments.

Improving cash flow for your business

Cash flow can be an issue for small businesses, especially if you have peak and low periods.

Follow these tips to improve your cash flow and avoid running into a tight financial spot.

Flexible rostering
Your staffing may need to change in peak and low periods. By employing casuals and using a flexible roster, you can cut back on hours when you need to improve your cash flow in quiet periods.

Monitor stock levels
Excess stock levels will increase the storage space you need, insurance costs and tie up your cash. Monitor your stock levels so you can find the most efficient level. Keep in mind delivery concerns, peak and low periods and your storage capacity when you make these decisions.

Have a mandatory deposit policy
For larger orders, it is worth having a non-refundable deposit. A deposit reduces financial loss should the product be returned or exchanged.

Posted on 14 December '18 by , under money. No Comments.

Credit card do’s and don’ts

Credit cards are useful financial tools that can help you manage cash flow but can run you into debt if you are not careful. Before you swipe your first credit card consider the following do’s and don’ts, so you gain all the advantages without the headache of a tarnished credit rating.

Do’s
There are several actions you can take that will help you manage your credit card. Follow these rules:

  • Try to repay the whole amount owing by the due date to avoid interest mounting up
  • Switch up your payment methods with debit cards to keep your credit owing manageable
  • Be selective about the credit card you apply for
  • Arrange your money so you can reap credit card benefits like frequent flyer points by paying on your credit card and then transfer the money across to your credit account

Don’ts
Credit cards can accumulate debt with ramifications for your credit score and loan applications down the track. Avoid these standard blunders, so you do not end up regretting your credit card:

  • Do not pay the minimum repayment amount as you will incur interest which can become unmanageable if it compounds weekly or even daily
  • Do not have multiple credit cards if you are new to credit as managing accounts and deadline dates can be difficult
  • Do not max out your card

Posted on 29 November '18 by , under money. No Comments.

Ways going green can save your business money

Going green at your office will reduce your environmental footprint and save you money in the process.

Follow these tips for eco-friendly policies that will benefit your business’ bottom line.

Reduce utility bills
Utility bills for electricity and water are significant costs to your business. Use LED light bulbs with higher energy efficiency ratings and install environmentally friendly water systems. Ensure that your electrical appliances are turned off when they are not being used and switch off your powerpoints at the main at the end of the working day as even the smallest costs can add up over the course of the financial year.

Reducing paper costs
Think about going paper free to avoid the costs of paper mounting up. Cut down on printing by making memos, bookkeeping, brochures and newsletters electronic. If your office needs to print official documents, you can still buy post-consumer waste paper, which is paper that has been recycled.

Invest in reusable products
Plastic bags have a stigma and are a wasted opportunity to promote your business. Follow your local supermarket’s lead by integrating reusable products into your business strategy. These products can be used to promote your brand if you put your business’ logo or promotional sale on the bag. This can help you save money in advertising and even gain profit if you charge for the use of the product.

Posted on 20 November '18 by , under money. No Comments.

Tips to save money on office space

The expenses of running your office and paying for rent add up to a significant cost to your business. There are several key ways you should consider to reduce costs, without sacrificing conditions in your environment contributing to your employee’s productivity.

Consider the following tips to help you better your bottom line on your office space.

Get a second opinion
Another set of eyes and a fresh perspective will spot savings that may be hiding in plain sight. Get someone who has experience in running an office who will assist you by spending a day in an office and working out what is necessary and what can be culled.

Allow flexible working arrangements
Where it is possible and beneficial to both the employer and employee working from home is a great way to minimise the number of bodies in the office, and makes a smaller office space with lower rent a more viable option for your business.

Rent your office space on weekends
If you own your office space and want to find ways to finance your mortgage, consider renting out your office space when you are not using it. You could potentially rent it to organisations who run workshops or classes on weekends.

Negotiate a fixed fee
Certain office spaces will entice you with low rent options but your amenities costs like electricity, internet and water bills will be significantly higher. Including all the services that your landlord provides in and renting the actual office space in a fixed rate, will help you stay in control of your costs and avoid any nasty surprises when your bill rolls in for the month.

Posted on 30 October '18 by , under money. No Comments.

Saving money on your fuel bill

For those who use a vehicle to commute, fuel is an expense that adds up.

To save on the costs consider the following tips:

Change the way you drive
Suddenly braking, taking multiple small trips and accelerating quickly are sure-fire ways to rapidly empty your tank. Consider the following strategies to help you save on your car bill:

  • Merging your trips to minimise driving distance
  • Shifting up gears
  • Giving yourself more room to brake

Fill up at the right time
Fill up when the price at your local gas station is down. By working out if certain chains offer a specific day like a Tuesday for cheap fuel and downloading certain apps that track the price of petrol at nearby stations you can pick the right day for small savings that will add up in the long run.

Service your vehicle
By servicing your vehicle at the right time, inflating your tyres and checking your load and wheel alignment, you ensure that your car uses its fuel most economically.

Posted on 19 October '18 by , under money. No Comments.