6 Money Mistakes The New Business Owner Makes

Image by _Davo_ via FlickrMany new business owners get so consumed by their new business venture that they make common personal finance mistakes that may crash their business. It can be not setting up proper tax I.D.'s, getting proper financing, or not keeping good financial records. The new entrepreneur is sometimes caught up to much in the product or service and not whats going on in the office.

1. Overspending for the Business.
The start-up cash that new businesses have can sometimes be wasted on useless things. Overspending on office rent or having to many employees can eat into your initial start-up money. Your buying an expensive office phone system, network or PCs can eat up cash fast. It's best to grow slowly and space out and budget these highly expensive office costs.

2. Get Professional help when needed.
To cut costs many new businessmen will avoid hiring an accountant or lawyer. An accounting or legal mistake early on can get you in hot water with the I.R.S. or set you up for a law suit later. Professional help can help keep you out of trouble. It's like a type of insurance.

3. Pay Yourself Along the Way.
Sure you want to save money and reinvest all profits back into your business. The new businessman usually makes the mistake of letting the company pay his expenses. If Uncle Sam sees you are paying personal expenses with company money, there could be trouble. The best thing to do is pay yourself a salary and keep your business and personal expenses separate. Also make sure to keep the salary at a manageable level. No big salary at the beginning. The company will need the money.

4. Set Up A Rainy Day Fund.
As in personal finance, a rainy day fund is very important. It's your cushion from trouble . So must your company have one to. It's easy to think it can never happen to you but when you think that it usually does. Having the cash on hand to weather any storm will make you a better decision maker because your prepared for the worst.

5. Keep your Business and Personal Assets Separate.
Borrowing money from people in your personal life is a bad idea. Using your personal assets as collateral for a loan is a really bad idea. You need to consider what would happen if your business failed. You would not only lose your business but creditors would come after your personal assets leaving you with nothing.

6. Using a Personal Credit Card For Business Expenses
This is the way most new business people get into trouble. Credit cards in your name used for business. Bad move, you are on the hook if things come crashing down. You can be personally sued for their repayment. Again, don't mix personal and business. Apply for credit cards on the companies credit rating or not at all.

Many start ups today need to concentrate on making money and taking care of the office at the same time. When you are new start up you are at your most vulnerable time you can't afford not to be careful.

High yield stocks aren't always the safest investments. Find the best dividend stocks for high return and capital appreciation.

Book Review - Financial Fitness Forever: 5 Steps to More Money, Less Risk, and More Peace of Mind by Paul Merriman

The new book by Paul Merriman, "Financial Fitness Forever", explains everything you need to know to be a successful investor. This is the kind of book anyone can use and put to work. You can also give it to a new investor so they don't have to learn by trial and error like most of us do. They can get it right the first time. 

The book is laid out in 11 chapters with a data filled appendix at the back. As you go through the book, Merriman takes the mystery of investing and explains it in a easy laid back style. He gives freely the wealth of his 40+ years in the financial advising industry. Paul takes you by the hand like an old friend and walks you down the investing path. With many stories of actual investors experiences he is able to teach you something without you even realizing it.

Each chapter is a stepping stone to the next. Merriman explains how investing is made so much more harder because of human behavior. Investors then look to the media and the financial industry to guide us, but they let us down, too. He is not one to give opinion based on loosely assembled facts. No, he is a numbers guy. Everything he says, in the book, is based on careful academic research. He says we have listened to Wall Street to long and it's mostly benefited them. It's time to listen to "University Street" and not Wall Street.

Why does Merriman write this book? Basically he is a teacher and communicator. He has a passion for helping people get investing done right. With all his years of presenting financial seminars, teaching investors how to do it right, he has cut to the bone and found the best way to be successful in investing. In this book he has put pen to paper and shared his investing know-how. His "Ultimate Buy and Hold Strategy", found in the appendix of the book, is not called "Ultimate" out of boasting. It's called that because the strategy handles risk, asset allocation, human behavior, and portfolio expenses in the best way possible. The strategy sets up a plan that covers all bases so you are in a position to earn the highest return, be able to weather the down markets, and gives you the ability to sleep at night.

Paul Merriman's long career in helping people invest has given him the knowledge necessary to help you be successful in investing. He is the first to say it won't always be easy. But in this book, you will learn there is a better way. I highly recommend this book to anyone who wants to get investing right the first time. I wish I had this book 30 years ago when I first started to invest.


Click here to get the book Financial Fitness Forever: 5 Steps to More Money, Less Risk, and More Peace of Mind


Also find Paul Merriman at www.FundAdvice.com. Make sure you watch the online workshop.


Watch his YouTube Channel at for his latest financial lessons.


Paul Merriman will be on many PBS TV Stations in December. Click here for a schedule.

Seniors in Debt: Debt Consolidation for Older Adults

Image by Up Your Ego via FlickrThere are many debt relief programs available today, but few that focus on the needs of senior citizens with debt. There are many senior citizens, however, that need the services of debt relief programs or loan consolidation programs. For many older Americans, a consolidation loan can be an excellent way to reduce the monthly paperwork, time, and the money that is spent on debt. For many seniors living on a fixed income, being able to reduce the amount of money being spent on debt repayment is critical.

When a consumer takes out a consolidation loan, his or her preexisting loans are paid off and replaced with a new loan. Ideally, this new loan should have a lower interest rate and/or a longer payment term than all of the loans that a consumer has before consolidation. By doing this, a consumer should have lower payments every month. A senior who consolidates their debts will be able to take the money he or she saves every month and use it towards other expenses.

Of course, in order to save any money by getting a consolidation loan, the new loan should have a lower interest rate and/or a longer payment term than the old loan or loans. For most people trying to consolidate debts, it is very important to make sure that the interest rate on the loan is lower than that on all of the loans being consolidated so that the total amount paid on the loans is less. For an older person, however, it may be more important to simply lower the monthly payment on the loan.

For seniors living on a fixed income, debt repayment can take up a large part of the monthly budget. Since most seniors do not have the ability to earn extra income to pay off this debt, it may make more sense to look for a consolidation loan that lowers the amount paid towards the debt to as little as possible. By doing this, a senior living on a fixed income can free up some of their income that was previously going towards debt repayment.

This can be a good strategy for seniors who have overwhelming debts that they do not believe they can pay off in the near future. The drawback, however, is that in order to get a low monthly payment, the term of the loan must be longer. While many seniors may be put off by the idea of extending the life of their debt, it is important to keep in mind that the lower monthly payment is probably more important to someone who cannot increase his or her income.

Consolidation loans can be an important way for seniors to reduce their monthly expenses and free up money for other things. Be sure to carefully research this option if you are dealing with debt after retirement.

The Top Four Situations Where Online Cash Advance Loans Make Sense

Image via WikipediaAdvice on how to handle money and bills and to plan for your financial future often boils down to two simple things: Spend less than you earn, and avoid debt where possible.

Nice situation if you can get it. But not every week of every month in every year works out so neat and clean. People go for a time with less or no income. Sometimes surprise expenses exceed a paycheck. And some emergencies simply call for making a purchase around which you have no options.

Here are four such situations where getting an online paycheck cash advance can be a good choice:

1. When the online loan pays for a car repair – This is simple. If you need your car to get to work, but a repair expense exceeds available cash, you might go without a car if you have to wait for a paycheck. How many employers are willing to let you take a week or two off work while waiting for something like that? You shouldn’t lose your job just because you don’t have the money to fix your car.

2. When penalties on bills exceed the cost of the loan – The cost of an online cash advance might be $50 or $75, sometimes more (depending on the size of the loan and how long it is held). Some bills left unpaid on time will cost $100, and with several it could be several hundred dollars. Do the math to study your tradeoffs.

3. When reconnection fees are greater than the cost of the online cash advance – If you fail to pay a phone or cable or other utility bill and the service is disconnected, there can be a reconnection fee, plus a deposit is sometimes added on top of that.

4. When you absolutely have to travel to visit a sick relative or friend – If you need to make a trip at short notice, having extra cash to do that is essential. An online cash advance will deliver that kind of money overnight.

Use of online loans should be kept to a minimum, applied only when absolutely necessary. Anyone with a job has that option.

AARP Giving Away a Free 12 Month Membership

Image by martymadrid via FlickrIf you are 50 years old or older and thought about joining AARP, now is the time. The American Association of Retired Persons are giving away a free membership to those 50 or older and unemployed. If you have a membership already it will be extended for 12 months for free, also.

Just click on the link below and you will be taken to the AARP website where you will be asked for your date of birth. Then to another page where you enter your name and address. Soon after that you will receive in the mail your membership card and AARP new member info.

AARP said it is offering the complimentary membership for people 50 and over who may be having financial troubles or who have had an unexpected job loss.

With the card you will be able to receive big discounts at restaurants, shopping, prescriptions,entertainment, travel, and more. Don't wait the offer will expire December 31.

Click here to Join the AARP today and save the $16 membership fee.

10 Job Fair Tips That Will Help You Get Noticed By Employers

Job Fairs have become a staple in today's job hiring environment. Employers want to meet a lot of possible employees quickly and in this time frame they have to access your skills and capabilities. You have to be able to show every thing you have in this short period of time because you want to turn this job fair into a job interview. 

In many ways a job fair is like a speed dating for jobs. You only have a small amount of time, so being prepared is the top priority. This list of tips came directly from interviews from job recruiters at job fairs. These tips are just what they want to see in a possible employees.

Remember, their job is to recruit employees. They go to many job fairs all over the country and see hundreds of job recruits. They are able to size you up fairly quickly. They know what the company needs and they are good at their jobs.

10 Job Fair Tips from Actual Job Recruiters:

1. Be a clear communicator with great passion, lots of energy and great enthusiasm.

2. When coming to a job fair come with a specific plan. Know who you want to talk to, know about the companies you want to talk with and ask intelligent questions.

3. Spend your time wisely and know that you can't possibly talk with everybody there. Focus in on the companies that you are really interested in.

4. Know before hand which companies you want to talk to by doing research on them before you arrive. Go online, looking at companies' websites, looking at jobs that are posted on their websites. Do you really know what the company does and what are the functions of the people working there. Use your knowledge learned so you can ask the recruiter intelligent questions about the company.

5. Determine if you are just looking for a job or along term career path. Knowing your own goals well, will help you be more focused and it will show when you talk to recruiters.

6. Don't oversell your resume. If you don't know something say you don't know. Use your previous skills and what you do know to build on your resume. Overall be honest.

7. Keep an open mind about the type of job you want. While at the fair you may come across a job you may of never thought would be right for you.

8. Be confident. Approach those employers with confidence and it will sell you. Sell yourself with confidence.

9. Focus and make eye contact. Speak clearly and be professional. You only have a few minutes to show what you have.

10. Be yourself. Be relaxed, show your passions, extracurricular activities, or things that really drive you. You can't fake that. Being passionate will show your not fake and it will leave a lasting impression.

Lastly, make sure you show lots of energy in your manner. Companies are not looking for worn out, tired people. Showing you strengths will move you to the top of the recruiters list.