5 Ways to Eliminate Debt in Your Business

Debt is one of the biggest threats to small businesses. It is often the biggest reason why most business fail within the first few years. They have spent too much money and haven’t brought in enough in profits to offset that spending and pay off their debts. 

Many business owners take out loans to launch their business or grow it. While it always starts with the best intentions, not everything might go as planned and the debt you’ve accumulated may start getting out of hand. 

Many business owners feel that the more money they throw at a problem, that it will fix itself. While that may work in some cases, it is not an economically sound business practice. 

If you are in this situation, here are some solid strategies to get on the path to eliminating the debt you’ve taken on.

1. Manage Your Cash Flow Better

How are you managing the money coming in and going out of your business? Are you spending an adequate amount of your profits to pay down your debt? 

Managing your cash flow effectively will allow you get the money you need to grow your business while also reducing your debt. You need to look at your business carefully and make sure that you are allocating funds to the most effective parts of your business so that it will thrive in both the short-term and long-term. 

Hopefully, if you manage your money right, you are getting some sort of take home pay as well.

2. Consolidate Your Debt

If you’re carrying multiple debts for your business, you may want to consolidate your debt. Try to find a lender that will offer a competitive interest rate and transfer your debt into that one lender. 

An alternative option would be to get another loan at a lower rate and pay off your existing debt if it is on your credit cards.

3. Restructure Your Business

Do you have an in-house team that can be handled to an external firm? Do you have staff whose positions can be easily outsourced? 

You may want to look into how your business is structured to find out if can rearranged to help save your business the money it desperately needs.

4. Revisit Your Budget

As a business owner, you should be looking at your budget often. You should know what is bringing money in and where your money is being spent. You also have to weigh in on how effectively your money is being spent. 

Even if you think your budget is spot on, you should still revisit your budget to understand your expenses. Figure out if there are any unnecessary expenses you can cut, how you can save money on the necessities, and if you can unearth all the other hidden costs of running your business. 

5. Educate Yourself Financially

One of the biggest reasons businesses fail is because they don't know how to read and interpret their profit and loss statement. This is no surprise as business owners often make bad financial decisions because they are not educated about all the financial aspects of their business. 

This is where companies like Navicor Consulting come in as they help out struggling businesses. Whether it's learning proper accounting, managing payment terms, keeping track of a merchant account, or understanding your taxes, you should get the necessary education to develop financial competency.

The important thing that you need to remember is that eliminating debt takes time and careful planning. While it often feels like you’ve stagnated, you’ll start to see results as your business grows and you start to make better financial decisions.

Pay with Confidence: 5 Tips for Safe Online Banking

Online banking is convenient, sure, but if it's not safe, then it's not worth that convenience. Handled poorly, online banking could almost as dangerous as unlocking your safe deposit box and leaving it wide open for the public to pilfer. 

With just a few swift clicks, unscrupulous folks could destroy your credit rating or drain your accounts dry. Fortunately, it's not all doom and gloom when it comes to online banking. 

By taking careful precautions, you can benefit from its convenience without leaving yourself wide open to financial ruin.

1. Create powerful passwords.

Your password is the gateway to your account. Lowercase-letter words are remarkably easy for hackers to guess, no matter how wacky the word might seem to you. 

For that reason, your password should contain a combination of lowercase letters, capital letters, numbers and symbols. Password management programs can help you create and remember a top-notch password.

2. Go directly to your banking sites.

Scammers try to steal your financial information by tricking you into giving it to them. They do this by posing as your bank through emails or social media networks, in hopes that you'll follow their fake links and enter your log-in information on their page. 

Therefore, it's critical that you go directly to banking sites by typing the URL into your browser's search bar, rather than following advertising links.

3. Avoid public networks.

Shared networks, such as the ones at your local library or neighborhood cafe, leave you vulnerable to prying eyes of the digital sort. 

Technology is handy, not just for you, but also for others who might want to track your activity. That's why you should do your online banking from home, over your own private network. 

If that's not an option, take extra security measures by using a free virtual private network (VPN) service, or even better, turn off Wi-Fi on your phone and connect via cellular data instead. 

If you’re not sure whether your network is secure, contact Ottawa IT services for an audit.

4. Protect your computer.

Your home network is only reliable if your computer itself is safe and secure. Keep online intruders from compromising your privacy by keeping up with updates to your operating system. 

Also, install a strong firewall program, as well as antispyware or antivirus software. These help prevent your system from being hacked.

5. Keep on top of your accounts.

One of the best ways to know whether your accounts have been compromised is to keep a close eye on them. 

Look for unauthorized withdrawals, unexplained charges or other suspicious activity. If you do notice a problem, contact your financial institution right away.

Used wisely, online banking is an invaluable timesaver. There's nothing like being able to log in at any time to check on the status of your accounts. 

As long as you take the necessary precautions, online banking can be one of the handiest financial decisions you make.

4 Ways to Help Aging Loved Ones Stay in Their Homes

As our parents and relatives age, we’re often faced with difficult choices regarding their living situation. For aging family members, leaving their home for an assisted living situation is not the solution they want. 

Though we need to respect their wishes, how do you ensure the safety of your elderly family members when you aren’t around? From home renovations to elder care assistance, there are many options available to you to ensure everyone’s happiness and peace of mind. 

Today we’re going to review 4 ways you can help your aging loved ones stay in their homes as they age, also called Aging in Place.

1. Home Remodeling

Whether you’re loved ones live in a two-story colonial or cozy ranch, you’ll likely need to consider some remodeling. 

One of the first places to consider is the bathroom: installing a curbless shower is a better option than a tub or shower with a high lip that people have to step over. 

Another upgrade is to be sure that there are flush transitions between rooms and flooring types – removing even slight lips between flooring can make it much easier for aging family members to get around their homes.

Some other projects worth considering include having a no-step entry into the home (especially necessary for those in wheelchairs) and a great idea for those with walkers. 

Inserting a handheld shower handle and movable seat into the bathroom is a less expensive solution to help maneuver around a wet and slippery surface. 

The National Association of Home Builders provides an overview of other small modifications you can make on your loved one’s home, including installing sensor exterior lights, lever handles on faucets and pull-down shelving.

If you have the financial resources, you can also take on more elaborate renovations. Doorway expansions and elevators can run into the tens of thousands of dollars, as they require structural overhauls of the home. 

Nevertheless, they might very well be worth the investment if your loved one is set on staying in the home they love. According to Senior.com, basic structural home modifications cost between $9,000 and $12,000 on average (for comparison, the average monthly cost for an assisted living home in the United States is $3,500). 

2. Embracing Technology

While it’s important for your loved one to have an established emergency network, help needs to arrive as soon as possible in the event of an accident or emergency. 

Fortunately, there are emergency devices available called Personal Emergency Response Systems (PERS) that aging residents can keep on themselves at all times.

Emergencies aside, new apps and devices can also help aging residents keep track of daily tasks such as taking medication. 

MedMinder is a digital pill dispenser that users can program to dispense medications at a specific time. What’s more, users can check to see if their loved one actually took their medication! 

GrandCare Systems is a multi-purpose touchscreen system that keeps track of health vitals, diet and exercise plans while also allowing the user to watch videos and listen to music.

3. Establish an Emergency Plan and Network

If your loved one is living alone, it’s especially important to have an emergency plan in place so everyone knows what to do is something comes up. The plan should include the numbers and addresses of relatives, doctor offices, and hospitals. 

Keep an emergency kit with non-perishable food, water, medication and other necessary items in an easily accessible place. Home evacuation plans should be established, including a meeting place outside the home. 

Ensure your loved one carries a medical identification card that details allergies and medical conditions.

It’s also important for aging residents to establish a support network in the event of an emergency. You can help your loved ones by communicating with friends, neighbors, and caregivers about their needs. 

Ensure these people have copies of keys and contact information. Designate someone to check in on your loved one during times of inclement weather, and have back up contacts for when the unexpected happens.

4. Turning to Elder Care

While you may feel it’s your sole responsibility to take care of your aging relatives, elder care should never be undertaken alone. 

In fact, trying to handle elder care on your own can lead to mental and physical exhaustion and potentially hurt your relationship with your loved one. Having a helping hand take over while you’re at work, or so you can catch up on some personal time with family and friends is very helpful and will make it easier for you to care for loved ones over a longer period of time. 

Simply put, finding an elderly caregiver is something you owe to yourself and your loved one to take advantage of.

Of course, finding the right person to care for your loved ones can be a daunting task. Where do you begin to find someone who works in elder care? How do you know the hired caregiver will treat your loved one with care and respect? 

Today there are a few routes to take. The traditional agency model involves you contracting a company that specializes in home care, which will then send an employee that meets your need. However, home care today is also shifting to companies like CareLinx and KindlyCare, where people can meet potential caregivers without the need of any intermediary. 

These “sharing economy” companies reduce overhead costs for the hiring party while ensuring decent wages for employees and are a great new alternative.

What do you think about aging in the home? What suggestions do you have to help your loved ones stay happy and healthy in their home? Let us know in the comments.

Contributed By: Kathleen Webb Co-founded HomeWork Solutions in 1993 to provide payroll and tax services to families employing household workers. Kathleen has extensive experience preparing ‘nanny tax’ payroll taxes. She is the author of numerous articles on this topic and has been featured in the Wall Street Journal, Kiplinger’s Personal Finance, and the Congressional Quarterly. She also consulted with Senate staffers in the drafting of the 1994 Nanny Tax Law.

5 Essential Tips For Managing Money After Retirement

The years of life expectancy continues to rise. With the increase of living, people have to make sure their money goes further than it once did. Saving money before and after retirement doesn't have to be difficult, although. 

There are many ways to get things in order to enjoy the golden years. Consider these options after retirement and before to be on the safe side.

Budget

Budgeting can get a lot trickier because there are some unknowns. People never know how long into their retirement they are going to live. 

However, many people will live 20 or 30 years in retirement on average, which means their retirement funds have to be divided up that many number of years. Decide ahead of time what that amount will be. 

Consider housing, food and other expenses for one year, and divide the total amount of retirement funds by 30 to be on the safe side.

Emergency Savings

It is advisable for retirees to save three months' worth of their budgeted amount in case something unexpected occurs. 

Retirement funds can go far, but there may not be enough for an unexpected expense. For instance, the country can go into another economic crisis, which causes the amount of items in a supermarket to go up. 

Just the cost of groceries, alone, can create issues for a budget. Having money saved up ahead of time helps to keep a safe buffer. It can take a country 5 years to come out of an economic crisis, but three months of time is enough to get things figured out.

Part-Time Job

While some retirees don't need to work, they may find that having a part-time job is useful in keeping their minds sharp, learning something new and making enough to avoid tapping into retirement funds. 

A part-time job can help to supplement a budget when things go wrong. Also, it provides a way to splurge here and there. Retirees have a lot of time on their hands and having money available to renovate a room is a rewarding project.

Reverse Mortgage

Most retirees plan well. They have had to in order to retire, but there is a way to have additional funds in-hand even for the most prepared. A reverse mortgage is basically putting all of the equity a homeowner paid back into their hands. 

There are special conditions to do this, such as having to live in the home, but the retiree needn't pay back the amount unless they intend on moving.

Investing

It's not wise to jump into risky investments because retirees can lose it all. However, it doesn't mean that some amount of money can't be invested. With inflation, it's actually wise to invest some money in an effort to offset it. 

For instance, treasury bonds that have a fixed rate of interest are an option. Certificates of Deposit are also a good option. Retirees may not be able to offset inflation entirely with a CD, but it's a better option than not having any money invested. 

Managing money in retirement doesn't have to be difficult. Retirees need to check into their resources, such as this one.

Retiring can be scary and although it's recommended that people have to save 80 percent of their salaries to live comfortably, the truth is that when people retire, they use a lot less money than they used to. 

For instance, retirees don't have children to feed, don't have to commute to work, don't have to pay for business suits, don't have to save for retirement and don't have to pay social security anymore. 

With this and discounts, retires end up saving a lot of money too.