Magical Financial Formula - Eliminate Overspending Forever

For many people, spending a few dollars more than anticipated rarely seems like a big deal. However, for those where overspending is a problem that happens over and over, the results can be disastrous. 

Bank accounts can be wiped out, credit cards maxed out, and credit ratings can plummet. Rather than be left scrambling for money each month, it's best to focus on ways to eliminate this habit. While this may sound impossible, the fact is overspending is a learned behavior that most people are very capable of overcoming.

Create a Budget

If you want to take a big step toward eliminating overspending, create a budget and be prepared to stick to it every month. To get the best results, gather all your bills to see how much you owe each month. 

Afterwards, add up your pay stubs and figure out how much you're making, then see if there's any way you can put some money into savings.

Pay with Cash

For many people who overspend on a consistent basis, paying with cash can make a tremendous difference. 

Rather than paying with a credit card, paying with cash makes it much more obvious just how much is being spent at the moment, and also gives you a feeling of loss by watching your money disappear. By making you think about where your money is going, spending can often be curtailed.

Cut Up the Credit Cards

In extreme cases of overspending, many people take the drastic step of cutting up their credit cards. In doing so, they are unable to use them for any reason, forcing them to use cash for purchases or to avoid some purchases altogether. 

While this may sound extreme, the fact is it's often a great first step toward getting your credit repaired. Sometimes, a Lexington Law review can be helpful to learn more about what to do in such a situation. By eliminating the chance to make one impulse purchase after another, bills can begin to be paid on time, which over time goes a long way in repairing your credit.

Choose Cheaper Entertainment Options

If you've gotten used to spending plenty of money on entertainment, you might need to start changing your plans in order to save a few bucks. For example, if you've been eating out several nights per week, it's a good idea to go out only once or twice instead. 

And if you've been having a weekly movie night at the local theater, try staying home and catching a movie on television. By implementing these changes, you'll be surprised as to how much money you'll save.

Reward Yourself Now and Then

Even though your goal is to eliminate overspending, that doesn't mean you should never have any fun. Once in awhile, it's fine to have a meal at a favorite restaurant, play a round of golf at your favorite course, or even taking a short vacation. 

By learning how to balance your spending in an appropriate manner, you may find you can reward yourself more than you thought possible.

Set Short-Term Financial Goals

One of the best ways to make progress when it comes to eliminating overspending is to set several short-term financial goals. For example, if you're trying to put aside money for a savings account, try putting aside 10 percent of each paycheck. 

Or, if you think you've been spending too much money eating out, try brown-bagging it to work for a week. When you challenge yourself with these goals and then succeed in meeting them, you'll be better able to set and meet long-range financial goals.

While none of these tips individually may seem like a magic formula, putting them all together as part of your overall financial plan can bring you success that does indeed seem magical.

Management Tips for Succeeding in Your Small Business Venture

Efficient management of a small business includes proper time management and effective management of employees and resources. It is always a good idea to learn novel techniques of business management to manage the diverse aspects of your small business better and to make it far more productive. Your life could be a lot easier.

Adopt Aggressive Management Tactics

It could really be fruitful if you are aggressive while managing your business particularly if you are constantly behind your competitors. 

If you wish to stay ahead of the competition, you must be willing to work even outside your so-called comfort zone and take the necessary risks. It is mandatory to take some risks if you wish to forge ahead in your business.

If you could anticipate all the consequences to follow as a result of a certain risk, you could then take a wise decision. 

You may avoid taking risks which may lead to your organization’s closure. Have faith in yourself and confidence in your decisions. Once you have made a decision, simply move ahead and wait to reap the ultimate benefits of your decision.

Open a Commercial Account in a Bank

Expert financial management is necessary for the ultimate success of a small business. Money matters cannot be taken lightly and are very critical to the survival and stability of your business as the key function of any business is primarily to generate income. 

Numerous business owners do not realize the importance of investments in the initial stages and as a result, they make losses and often are forced to shut down.

Your business should be recognized as an independent entity. So you must begin by opening a commercial account in a bank. The account should be in the registered name of the business you own. 

One most important tip is never to mix personal money with business money. You may opt for a friendly and small commercial bank. All the cash from your business should be diverted or transferred to this account. This is helpful in creating a line of credit and you could easily use this particular bank account for getting finances or loans if and when required.

Do Proper Bookkeeping

Proper bookkeeping is crucial to the success of your business. You may do the bookkeeping yourself if you are competent enough or it is better to hire professional accountants. 

Professional accountants would come in handy handling tax forms and year-end financial statements.

However, if you do not wish to hire an accountant right away, you could carry on proper bookkeeping by using effective computer software which makes it an easy and convenient affair. You could simply fill in the figures. 

The software would do the rest. This software is effective in generating invoices, keeping track of receivable and payable accounts and also, the total spending.

Explore & Keep Track of Diverse Payment Options

Today customers could pay for products and services via numerous payment options. They could be utilizing credit cards, debit cards, electronic cash transfer or even the good old checks. 

For a successful business, you must keep track of payment modes. Cash payments do not need any processing time and so they are easy payments whereas, an electronic transfer method or card needs ample processing time. You should consider developing an effective system which would ensure a consistent flow of business.

Follow Payment Terms

You should consider having a clear-cut payment terms policy. All your customers are required to adhere to this.

Make Debt Collection Compulsory

Debt collection is regarded as a necessary evil related to every business whether big or small. As your business grows and you consider extending lines of credit to your customers, you are often confronted with the risk of late payment or even non-payment. 

It is compulsory to keep chasing customers for these payments as they are an integral part of your business cash flow. Debt collection is undoubtedly, a legal procedure and you are free to hire an expert debt collection professional for collecting all the pending payments from delinquent customers.

Conclusion

Management of a business does not simply mean financial management strategies only. It implies effective management of employees as well. Effective management of employees does not only entail delegation of responsibility and performance appraisal and evaluation. 

Employees would certainly be much more efficient and productive if they develop a feeling of loyalty towards the organization. Needless to say, this sense of loyalty could be triggered by the actions of the company toward the employees and vice versa.

Monetary matters are a cause of concern for all employees and often major expenses like medical expenses, vehicle lease, and car repairs could be pretty worrisome and distracting. 

You could consider helping them in setting up an employees’ fund where both you and the employees would be donating. Employees could use this when they need personal financing. Make loans that are available to all your employees even though, these loans would require being paid back eventually. 

This could be a good way of winning employees’ loyalty.

Author Bio: Tara Faraday is a financial advisor and blogger. After graduating three years ago, she has been working actively for a top private finance firm and also runs a financial advice and wealth management blog which talks about bankruptcy, budgeting, leasing, loaning and sites like http://www.leasequit.com/.

Using Online Calculators to Strategise Your Financial Goals

If you are beginner when it comes to savings, strategising your money early is always a good idea, especially if you have a steady income source. Online calculators estimate your monthly or weekly distribution of money according to the plan you’ve chosen, and help you strategise accordingly.

Read on to find out how you can use these to regulate your finances.

How do I Calculate my Finances Online?

As a first step, take stock of your expenses and savings by listing down how much money you spend, and where it goes. Let’s say your monthly income is Rs.50,000, out of which you pay some amount towards your monthly house rent, some towards the EMI of your vehicle, and some towards loan repayments.

You are eventually left with the amount that you can use for personal purposes. 

Online calculators help you to determine the funds you will be allocating to these categories, and plan accordingly. You can estimate how much money you will need to have on hand before taking that Personal Loan, and how much time you would need to clear your loans.

Your bank website or third party websites provide these online calculators, where you input amounts for categories like retirement plans or home loans. You can then determine the interests applicable, and the returns you will receive on the amount you are investing.

This is one of the best ways to start planning your finances.

Why use Online Calculator?

You have to be realistic about your money when you strategise your finances. First, list all broad expenses that are already fixed—including rent, bills, EMIs and other necessary expenses. This will give you an idea as to how much money you spend every month. Then, you can start the allocation of money to long term plans like home loans, educational loans, and retirement and medical plans. 

An online calculator helps you understand how your finances will look after you invest in each of these plans. Suppose you are planning a loan of Rs.2 lakh for your vehicle, for a tenure of 1 year, according to your current financial state. You have to pay an interest of 8% on this loan, if you decide to take it up.

This handy tool will give you an estimate of the monthly payment you would need to divert to clear the loan amount in the given amount of time, i.e. one year. You can also make use of specialized personal loan EMI calculators that estimate an average EMI you would be paying on your vehicle in advance so you can plan your savings and investments accordingly.

Where do I Start?

First, find the best plan for your money. If you are looking to purchase a vehicle or a home for yourself, prioritise accordingly. Once you’ve listed down your options, select an online finance calculator that suits your needs.

For example, you may find different calculators at one your lender’s website - for mortgages, Home Loans, educational loans, retirement plans, and so on. 

How it works

Pick a suitable calculator, input the amount, the time you think it would require to clear off the loan, and the interest rate. Then you hit ‘calculate’; the calculator shows you how much you will be paying. It also tells you how many payments you’ll need to make until the loan is cleared.

Online calculators do an efficient job of sorting out your finances; you can focus on planning your finances better. 

Remember to manually take stock of your expenses, prioritise your needs, and set aside a certain amount as savings before you finally plan investments and loans. Then, use the online calculator to estimate your monthly expenditure. Using this information, choose the loan plan that provides better interest rates and returns that best serve you.

Used right, online calculators for finances are some of the best tools to strategise your finances in the long run. So go ahead and start using one today.

Author Bio: Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India. Currently based in Pune, Arwind Sharma is a name to reckon with when it comes to financial management for big brands. A post-graduate in business economics, he is an alumni of Princeton University, USA. During his free time, Arwind teaches children from marginalised sections of society and also work on his blog.

Eco Friendly Tips for Your Car

We all know that our cars are not the most economically friendly inventions. Since 1970, CO2 emissions have increased nearly 90%! Read on to learn how you can reduce your car’s carbon footprint (and save a bit of cash while doing so).

Clean It Out

While it pays to be prepared, you’re also paying extra to keep your emergency kit and other items in the back of your car. Every 100 pounds reduces your MPG by 1%, and if you have a smaller car, that extra weight will affect you fuel economy even more. 

Automakers do all they can to reduce the weight of their cars to make them more fuel efficient, but you can also do the same.

Maintain Your Tires

It is important to maintain your tires not only to keep you safe, but proper tire pressure will also save your gas mileage. Determine what your psi should be, and then consistently check your tire pressure using a pressure gage. 

 Refill your tires when necessary. You could also install low-rolling-resistance tires, or “smart tires” that waste less energy than other tires.

Use the Right Gasoline Grade

Most cars will run on regular gasoline without compromising performance. If your owner’s manual suggests that you use premium grade, but doesn’t require that you use it, you can

save money by switching to a lower grade. 

The only effect you may see is a decrease in acceleration power, but that might not be such a bad thing after all.

Drive Conservatively

If you are an aggressive driver, you are likely losing fuel economy. To save gas, and consequently the environment, accelerate slowly, don’t speed (driving above 55 mph will decrease fuel economy by 13% every 10 miles), use cruise control, and avoid idling whenever possible. 

You should never idle for longer than 10 seconds, unless you are in traffic (it is illegal to turn off your car when on city streets). It’s only a myth that restarting your car burns excessive amounts of gas, as cars these days are made to warm up very quickly.

Avoid Traffic

Rush hour traffic causes you to idle your car and waste gasoline. Whenever possible, avoid traffic. Either find another route, or wait it out.

Combine Trips

Whenever you can, combine trips to save gas. Stop by the grocery store on your way home from work, or carpool with a coworker or neighbor. If you’re only going a short distance, walk or take public transit. 

 If you can’t get where you’re trying to go with public transit, find out if you can ride part of the way and drive (or bike) the rest. Another way to save gas is to avoid getting lost. 

When you get lost or take a wrong turn, you may add 15 minutes or more to your trip. Before you leave, make sure that you know where you are going and that you have good directions.

Stop Using the AC

Consistently using the air conditioning can increase fuel cost by 21% or more (according to Consumer Energy Center). MythBusters recently did an episode to see if using the AC really does affect your fuel economy, and they found that rolling down the windows is more fuel efficient. 

They filled up two SUVs with 5 gallons of fuel and took them out on a track. The AC SUFV stopped 15 miles before the SUV with its windows down. Of course, there are some days where it is just too miserable to not use the AC, but on mild days, roll down the windows.  

However, once you hit about 40 mph, the drag on your vehicle no longer makes this an efficient option, and you should again roll up the windows and turn on the AC (or just the fan, if you can stand it).

Drive a Green Car

The best thing you can do to be more eco friendly is to buy an eco friendly car. There are many hybrids on the market that are cleaner, more efficient, and will save you money on gas. 

 If you can’t yet afford a new hybrid or electric car, find a car with high gas mileage, or purchase a used eco-friendly car. 

Some of the most eco-friendly cars currently on the market for 2016 are: the Toyota Prius c, Nissan Versa Note, BMW X3, Lexus CT 200h, Mazda CX-5, Mazda Mazda3, Toyota Avalon Hybrid, Toyota Highlander Hybrid, and the Toyota Prius v. 

 If you are looking to buy a new car, you can use this calculator to find out just how much money you’re going to save by switching.