How to Be Financially Smart With Your Tax Refund

We should be proud of the long-term success when we look back at our finance progress. One should think of spending tax refunds in pleasurable but profitable ways that will relatively give you happiness at some point when we look back. Think about it.

Instead of spending that cash infusion in a way that leaves your finances neutral or even worse off, here are several ways Tax Refund smartly leaves you better off if you want to gain some real momentum with your finances.

1. First of all, pay off high-interest debt

One of the biggest hurdles to overcome if you want to build wealth is High-interest debt. Just remember that it is difficult to get ahead when so much of your payment goes to interest-only if you owe money on credit cards or carry personal loans with high-interest rates. But use your tax refund to repay this debt, you would save yourself almost four years of monthly minimum payments, and monstrous interest payments.

2. Emergency fund savings

Experts have suggested that people should stock an emergency fund with at least three to six months of expenses, even a smaller amount is a good place to start in case of any emergency, so as not to blame one’s self when the bills come. Build an emergency fund is exceptionally essential for your financial health whether you carry some high-interest debt or live a debt-free lifestyle. 

You’re prone to struggle if you face unexpected financial emergencies without an emergency fund such as unexpected home repairs expenses and all the significant unforeseen bills that you can think of. Consider adding your tax refund to the pot if you have a savings account.

3. HAS Contribution –Health Savings Account Contribution

Once you open a health savings account (HSA) which is a tax-advantaged saving account set up specifically to pay for healthcare cost, you’ll be able to deduct contributions up to a certain limit, watch your money grow tax-free, then use your funds for qualified healthcare expenses on a tax-free basis. You can withdraw funds for several purposes if you don’t use up your HSA funds by the time you turn 65, --even to pay for retirement.

4. Self-Investment

Let me remind you that you’re your own greatest asset, so if you receive enough cash in your tax refund to invest in anything, spending that money to improve yourself. And as we may have it, there are several ways you could decide to invest to upgrade your status towards a better income. 

Pursue professional skills or a type of certification that adds values to you. Bear in mind that any investment you make in yourself will likely pay off in the short term and throughout your life and career.

5. Initiate several savings buckets

Starting several different savings accounts can be a smart move if you have competing financial goals and want to save for all of them. Also, commit to weekly or monthly contributions after you might have spread your tax refund across several accounts. You may want to save up for a newer car or update your kitchen. Learn to give yourself a head start toward achieving everything you desire by growing different savings buckets.

Now, it’s up to you to put your tax refund to good use whether it’s a huge or small amount. Also, if you can’t wait to get the money you need, you can always try and to get a cash advance on tax refund. Just make sure that you do your research before making any financial decision!

4 Common Energy Drains on Your Home During Winter Weather

Everyone dreads the utility bills when winter arrives. Many things cause bills to increase during this time. We talk about four ways you can minimize the increase in your winter energy costs below.

Heat loss through the windows

Single pane windows cost homeowners the most energy. These windows average $800 to $875 a year in energy costs. Upgrading to dual pane units or windows with Low-E coatings can reduce these figures to lower than $600 annually. In a few short years, these windows can pay for themselves when shoppers are savvy looking for discounts and rebates from the government.

The air conditioning and the furnace fight each other

When you have problems with your HVAC unit, sometimes the only way to get the energy costs down is by hiring someone who specializes in air conditioner repair or furnace tune-ups. These systems must operate in efficient states to keep costs low. Without regular checkups and maintenance, large house systems can increase utility costs exponentially. 



Sometimes, winter weather is not predictable. It may be 80 degrees one week and freezing temperatures the next. If you have to keep switching between the furnace and the air conditioner, then these units can cost a lot of money when you run both in the same month.

Leaving doors open too long

When the weather is not too cold, we often open the doors when watching for guests to arrive or to bring in the groceries. These little moments may not seem like much, but they can let a lot of heat out the door. 

Then, the furnace has to kick on more often to keep the temperature even. Closing the door behind you every time you go in or out can be a pain, but it will save money in the long run.

Using a water heater that is too small for the home

If you have three or four people in your home, then a 40 to 60-gallon water heater is appropriate. Anything smaller, and the system will be running constantly. Keeping the water in the tank warm means the system must constantly work to keep up with the demand. When you do a lot of dishes or laundry, then the energy costs increase.

To minimize the energy leakage from your home during the coldest months, it is important to button up your house and maintain your major home systems. Efficient machinery costs much less to operate than equipment that is outdated or working too hard. 

Insulating the windows and doors and using a Smart thermostat are other ways you can reduce the expense of maintaining your home in the winter.

5 Factors That Can Influence Your Business Loan Approval

If you are heading a large business needing expansion of a particular section, or a small business owner wanting to scale, or a budding entrepreneur, your priority is to secure funds at the right time. We want to focus on the term ‘right time’ because if a financial institution is unable to disburse funds at the right time, you may lose out on a lucrative opportunity.

Now that you understand the significance of timely disbursal of loans, you need to ensure preparedness during the business loan application process. No one wants a loan application rejection as it will lead.

Let’s say that your organization is ready for new business loans, but you are unsure about the subsequent process, this article can get you covered. Here is a list of five factors that influence your business loan approval. Read this to know

Factors that Influence on Business Loan Approval:

A Healthy Credit Score/History:

The most basic and obvious factor for a successful loan application is a high credit score. Financial experts suggest that it is essential for a business owner to keep the personal credit score as high as possible. When it comes to small business loans, financial institutions take into consideration the personal credit score of the business owner. 




The borrowers with a credit score of 720 or higher get better interest rates. Alternate lenders or NBFCs try to fill in the void created by financial institutions by providing new business loans to borrowers with a credit score as low as 500. Hence, small business owners with low credit scores prefer private NBFCs for ease & speed of funding. 

However, good credit history is always a prerequisite for easing out the approval of new business loans. Timely payment of dues, transparent transactions, invoicing of every purchase with dealers are something that can help you build a good credit history.

Age of Business:

Occasionally, banks & NBFCs see the age of business, cash flow, statement of transactions, and other factors in approving your business loan. For small business owners, the APR or annual percentage rate is usually higher. 

Once your financial partners can see some traction in your business, they will follow up with better interest rates. However, many private lenders specifically provide small business loans. All you have to do is to gauge your requirements using a business loan calculator.

Collateral:

Financial institutions reduce lending risk by asking small business owners to use their assets as collateral to secure the business loan. Not being too rigid, lenders allow small businesses to use their stock, equipment, and similar business assets as collateral. Alternatively, institutions like NBFCs offer collateral-free small business loans as well.

Type of Business:

The type of business plays an impending factor in your loan application. If your financial partner considers your kind of business to be riskier, then things may get slower, with financial institutions charging higher interest. Complete market research about the potential of your business can be used to convince your banking or NBFC partner to believe in your vision.

Business Plan:

If you are a new business owner who would like to get started or an existing business owner who wants to expand the organization, you need a plan in place to show to the banks or NBFCs. If the business plan is impressive enough, then the following process is typically faster. You need to explain the purpose of the loan, vision, and other factors to structure your business plan well.

Conclusion:

The above factors play an important role in making your loan application faster and more effective so you can focus on your business aspirations. Also before processing for the loan must check the business loan eligibility for easy approval. Having a thorough understanding of the lenders’ requirements can make things more comfortable during the loan application process.

5 Ways to Save Money on Home Repairs

If you own a home, you know that repairs are going to be required periodically. While it is a good idea to build savings for these costs, sometimes we get caught by surprise. Whether prepared or not, everyone wants to save money on home repairs, and here are a few tips for doing that.

Do It Yourself

If you have the skill and experience, you may be able to handle basic home repairs on your own. With the help of a few youtube videos, you can probably paint the living room or replace the aging toilet with a new one. Be sure you know how to do the job before getting started, or you could end up with a bigger job for someone else to do.

Shop for Discounted Materials

If you are able to handle the job and save the cost of hiring a professional, buy discounted products, equipment, and materials whenever possible. Compare prices online and check with local building supply or home repair product stores. You can often find discounts and rebates that will keep your overall repair costs low.

Call an Expert

Several kinds of home repairs require professional assistance. Roofing, electric, plumbing, and heating problems should be handled by licensed contractors because they have the training and certifications to do the job right. 

If problems develop, you can have the company come back out to address them. The work is usually done promptly and correctly and is worth the cost you will have to pay. 



For example, a roof repair involves climbing up on the roof, maintaining balance, knowing how to fix the problem, and ensuring there are no leaks or weaknesses in the underlying structure. An expert can handle the job efficiently and safely, which can save time and money. Ask about special rates or sale prices that may apply.

Trade Services

If you know someone who is able to do the needed repair, especially if he or she is licensed and certified, you may be able to exchange services instead of monetary payment. For example, an electrician friend may be able to install a ground wire in your home in exchange for your landscaping skill in laying mulch in his yard.

Ask for Recommendations

Friends and coworkers may be able to suggest someone who can do the job more cheaply because of the referral. Ask around to see if someone knows an expert who will charge less than market value for the repair work.

Take a proactive approach to getting repairs done correctly and efficiently. The time and stress you save will be worth as much as the reduced cost.

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan

4 Things Millionaires Never Do

Millionaires don't look at the world in the same way as other people. In fact, the reason that many self-made millionaires reach that point isn't just because of what they do - it's because of the things that they don't do. Below are four of those very important things that millionaires never do.

Spend Without a Plan

People who become - and stay - millionaires don't go on spending sprees. This isn't to say that they can't splurge from time to time or that they can't be generous, but they don't spend their money without knowing how it will be spent. Part of becoming wealthy is learning the value of a dollar, so many millionaires are careful about their budgets.

Let Their Money Rest

Putting your money to work is one of the most important habits you'll need to get into if you're looking at how to get rich in the military. Millionaires rarely get rich from their day jobs, but their multiple income streams keep them wealthy. 



Investing money in the markets, buying properties, and taking calculated risks on new companies are just some of the ways that the wealthy ensure that they will keep money flowing into their accounts.

Flaunt Their Wealth

Another good way to tell the difference between someone who is a millionaire and someone who has experienced a temporary windfall is how they present themselves. 

Those who are going to hold onto their money rarely go in for gaudy displays of wealth. Their cars might have a bit nicer trim level than average, and their furniture might be high-quality, but these aren't people who use their money to show off.

Stop Looking at the Future

Finally, millionaires always have an eye on the future. Few assume that they will always be wealthy, and thus they are always planning for a rainy day. Those who have more money than they can reasonably lose are still looking to the future of their families. 

It's not enough to make a million dollars - once you get there, you have to figure out how you are going to stay there.

If you want to be a millionaire, you have to learn to do the things that millionaires do. Take a look at what they avoid as well, as this will help you figure out how to stay financially sound. If you can follow in their footsteps, you might find yourself better positioned to join their ranks.

4 Ways to Diversify Your Investments for Maximum Profit

Diversifying your portfolio is a great way to protect yourself should there ever be a market crash. While it sounds complicated, it’s easy. Many people hoard their money in banking accounts because they are afraid of investing and losing one dime of their hard-earned money.

Once you truly grasp the concept of diversification, you will understand it’s one of the best risk management techniques around. Additionally, scattering your wealth among many investments protects you if one stock is booming, and the other is tanking. Here are four steps you must learn for proper investing.

Use Different Types of Investments

Have you ever heard the saying don’t put all your eggs in one basket? Well, the same concept applies to investments. By using EFTs, mutual funds, and various stocks, you are diversifying the easy way. 

You don’t want to put everything you have in the stock market. Should it crash tomorrow, you will lose everything. Rather, you want to have a variety of investments so that your chances of failure reduced. Your stock accounts may be doing poorly, but your mutual funds may be through the roof.

Diversify with Different Rate of Returns

Just as important as diversifying your investments is picking those that have a different rate of return. It’s challenging when it comes to the stock market since you want to invest enough to make it a worthwhile adventure. 



For instance, if you’re going to invest, then you don’t want to limit yourself to a mere $200 on the stock. Rather, you want to put down a significant amount so that you don’t have to pay a great deal in fees. If your portfolio is loaded with only stocks, then it puts you at risk.

Consider Investments with Varying Risk

When expanding your portfolio, choose investments that have a rate of return that are each different. It will guarantee significant gains for some investments, which will offset losses in others. 

Keep in mind, though the intention is to reduce the risk, you aren’t limited to only blue-chip stocks. Consider things like precious metals, from a firm such as McAlvany ICA, as they can bring a great return.

Review Your Portfolio Frequently

It seems like you would only need to diversify your portfolio one time. However, that is a fallacy among investors. You must continually check your portfolio and make changes where they are needed. 

During your review, if you see something that isn’t consistent with your financial goals or the strategy you have planned, then you must make changes. You should conduct a review semi-annually. Additionally, buying and selling stocks regularly will keep your portfolio balanced, and you will be optimally diversified.

Once you get the hang of things, it’s not difficult to learn the strategies to investing. Diversification is the protection you need to prevent a financial disaster.