Methods for Obtaining Funding for Your Business

As a business owner, you’re probably well aware of the financial challenges you’ll face when it comes time to start growing your business. That said, there are a few options available when it comes to how you can fund your business and make it a success.

Here are some of the most well-known options for obtaining funding for your business, especially if you’re trying to get things off the ground.

Business Loans

Business loans can be the boost you need to get things off the ground, so long as you meet the requirements set forth by the lender. 

For instance, you may be able to obtain a business loan from a bank or other financial institution such as Pop Funding Solutions if you have good credit ratings and enough collateral to secure the funding. 

The interest rate on a business loan is typically higher than what you would find on a personal loan, but it may be worth the extra cost if you need to acquire more business-related equipment or hire new employees.

Bootstrapping

Bootstrapping is a strategy that involves using existing assets, such as cash reserves and receivables, to fund the startup of a business. 

The goal of bootstrapping is to minimize or completely avoid borrowing money. However, this means that you’ll be missing out on the benefits offered by loans, such as lower interest rates and easier access to funding. 

To bootstrap your business, you must have some assets which you can use to generate revenue.

Venture Capital

Venture capital is a type of funding typically provided to startup companies by private investors. Venture capital is often used to help fund the acquisition of new equipment, inventory, or personnel for a business. 

Venture capitalists are also interested in companies poised for rapid growth and expansion. To receive this type of funding, you’ll need to meet certain criteria, such as having excellent credit ratings and strong business history.

Crowdfunding

Crowdfunding is a form of funding usually provided by the public at large. It’s also sometimes referred to as crowd investing. 

Crowdfunding allows individuals and businesses to raise money by soliciting contributions from a large group of people who might be interested in supporting the business or project. Thousands of companies have been funded through crowdfunding platforms like 

Kickstarter and Indiegogo

As you can see, there are many different ways to raise money. It’s important to understand what type of funding you need and how you can find it. 

The best way to find the right funding is to research and see what options are available. You may consider various sources such as family and friends, business partners, investors, or government agencies.

8 Things You Can Do Today to Stop Stressing About Money

According to the APA (American Psychological Association), 72% of adults suffer from financial stress. Being anxious about finances is absolutely natural.

You will be thinking about it whether you have a lot of money or not. The stress could be related to rent, loans, savings, taxes, and much more. The financial stress makes you reconsider everything from crucial expenditures to occasional splurges. 

Whether you decide to spend money on groceries or decide to enjoy an exciting day in the escape room, it all leads to anxiety and stress. as well.

Monetary stress has too many downsides like poor sleeping habits, stress ulcers, decreased immunity, and depression, to name a few. Although advice cannot remove all the stress about money, some careful and quick strategies might come in handy while you are stressing about money.

1. Start a money journal

The first and foremost thing to do is to keep a journal. Any financial planning must start with a journal. According to a study, journaling your issues before getting into budget planning reduces stress by a lot. So, if you are stressed about your problems, put them down in words first. This will give you a clear idea of what your concerns are.

Next, go through the concerns one by one and categorize them based on priorities. For example, is your immediate concern paying off loans or balancing your credit score? Are you worried about emergency funds or retirement plans?? Note these concerns down from most important to least.




After categorizing them, make another list to break down the steps you need to handle the money accordingly. Finally, you can get down to business and start following your carefully laid down steps.

2. Plan a Budget

Planning a budget will reduce a lot of stress about money. This is also connected to journaling. Planning a budget will help sort your finances well. It will help you reanalyze a lot of expenses you make.

If you discover you are spending more than you earn or spending unnecessarily on something, budget planning is going to be your friend. Starting a budget will help you in tracking all those expenses and help reduce certain expenses so that you can save more or pay off those loans.

Start by fixing an ideal budget based on your earnings. Categorize your necessary and luxury expenses. Then you can carefully increase or decrease your input into different categories.

The best way to go is to download an app that keeps track of your budget and the expense you allotted to each category. Most of these apps will provide you with regular reminders and emails in case you fail to follow the budget.

3. Examine Your Accounts

When you are planning your budget, you must re-evaluate your expenses. And how to do that?? Look into your previous transactions. Sort them out into categories of necessity or luxury expenses. 

Monthly or yearly expenses should be sorted as well. You will be surprised by the number of people paying for subscriptions they forgot to cancel. So, take a look at your bank statements and transaction details from the last few months at least. 

Cancel the memberships or subscriptions you do not want anymore. Ask for refunds if some payments were made without confirmation from your side. 

Cancel any credit cards you were roped into getting. Be firm in your position and cancel all unnecessary expenses weighing you down. Confirm everything and keep all the receipts.

4. Close Old Accounts

Handling multiple accounts can be very confusing and lead to stress. So, closing an inactive bank account would be a wise idea. Having multiple accounts may also lead to an overdrawn account if you forget about it. 

An inactive account may also fall prey to fraudulent activities. So close any old account you do not use regularly or one you might not need again. Another task would be to set all your regular bills to autopay so that you do not have to worry about overdue payments.

5. Lower your bills

Try lowering some of your bills if you are too stressed about money. It will help reduce the immediate burden. According to Emily Guy Birken, author of End Financial Stress Now (2017), “Internet and cable service is an easy place to start because they’re used to be negotiated with,” so try lowering your internet or cable bill first. 

Try negotiating for a lower deposit or monthly rent if you are lucky enough to find an understanding landlord. If you have pending medical bills or similar social undertakings, try contacting the respective billing departments. If you are absolutely unable to pay certain bills, contact social welfare agencies.

6. Adjust Tax Withholdings

According to Emily Guy Birken, adjusting tax Withholdings at work will be one of the fastest ways of adding more money to your budget. Change your tax withholding status to a lower refund (if you do not already) to increase your regular paycheck.

For this, you need to talk to your organization’s HR department. They will be able to guide you through this process with additional help from the IRS (Tax withholding Estimator) calculator. The IRS calculator would be able to specify the changes you will need to make. Depending on your employer, the changes will start reflecting from the next paycheck itself.

7. Handle Your Credit Card Service

Contact your credit card provider for details about your credit score. A good credit score will benefit you while applying for loans or while managing old payments. Pay off overdue bills and look into the previous transactions as well. If you are in a bind, call your credit card service to ask for a lower interest rate. If you are a dependable customer (why do you need a good credit score, you see), they might consider such a thing.

A low-interest rate will inevitably prevent more interest from accumulating. It will help you pay off the balances faster and might even increase investment when you are financially more secure. This is sure to reduce some of your stress about money.

8. Manage Loan Payments

Student loans and mortgages are crippling millions and preventing them from gaining financial stability. If you are under federal loan payment, you can ask for a lower loan payment plan. If it is a student loan or mortgage plan, you can consider the IDR or Income-Driven Repayment plan. The Debt-to-Income Ratio takes into consideration the IDR and helps you pay your loans accordingly. Although, mortgages and student loans may have different regulations.

This will make a huge difference in your finances, although the repayment time period gets extended. It will act as a breather if you are stressing too much about money. But if you plan your budget properly and pay your taxes on time, it will not be a burden.

If you are planning on repaying some other loans quickly, you can also try the Debt Avalanche Method. This method basically means using leftover money (after monthly expenses) to pay off loans at a high-interest rate. This will decrease the overall time period required to pay off the loans. But this is a risky method and should not be tried without expert advice.

All of these are advice aimed to decrease your stress about money. You can start practicing some of these methods from today itself. But at the end of the day, do seek professional advice and plan for a better future.

Author Bio: Charlotte Lin is a content creator at escaperoom.com. She’s a passionate young woman, mother to an amazing nine-year-old, and an avid reader. Over the years, writing has helped her explore and understand the world as well as her own self. She loves to travel, meet new people, and spend quality time with her daughter. You can find her on LinkedIn.

Credit Unions vs. Banks and Which Is Best for Getting The Most Out Of Your Money

In years past when you wanted to open a checking or savings account, obtain financing for a car or other big purchase, or were interested in making your money work for you as much as possible, you likely did like many other people and relied on a bank.

While there's nothing wrong with this, many people are now taking a closer look at credit unions as an alternative. Are there major differences between the two? If you're wondering which will help you get the most out of your money, here's what you need to know.

Interest Rates

If you do business with a credit union, chances are it will offer you lower interest rates on all types of loans, and will also provide you with higher interest rates on savings and checking accounts. 

In many cases, the average difference in interest rates between the two can be as much as two percentage points, meaning you could save thousands of dollars in interest costs on a loan.

Services and Conveniences

If you want your financial transactions to be extremely convenient and have access to a wide array of services, banks tend to get the nod in these areas over most credit unions. 

As banking has moved online, even the smallest banks tend to offer their customers mobile apps that allow most transactions to be done through a smartphone.

Insurance Protection

Just as banks are insured by the FDIC, credit unions such as the Credit Union of Denver also protect the money of their customers by having insurance protection from the National Credit Union Administration. 

Like the FDIC, the NCUA insures deposits up to $250,000, meaning you can have peace of mind no matter where you are keeping your money.

Educational Resources

When you visit a bank, you probably are not going to find many resources available to you regarding how to learn more about making your money grow. However, credit unions do this and much more. 

In fact, most credit unions are well-known for offering workshops and seminars on investing, how to manage credit cards, how to stay protected from identity theft, and other important topics. 

Also, most credit union customers tend to feel that credit unions offer more of a personal touch than traditional banks.

Since credit unions and banks offer various advantages in certain areas, the choice of which one to use comes down to personal preference. 

However, if you like better interest rates, a personal touch when doing business, and being educated about your finances, a credit union may be worth exploring.

3 Alternatives To Investing In A 401K

If you work for an employer that offers a 401K plan as part of your benefits package, this can be a great way for you to build up quite a nest egg while you are working.

In most situations, employers will match an employee's 401K contributions, allowing wealth to accumulate much faster. However, there are also plenty of alternatives to a 401K.

If you're wanting to explore additional ways to make your money grow, here are three alternatives to consider.

Roth IRA

One of the most popular investment tools available today, a Roth IRA can be a great alternative to a 401K. First, it allows your money to grow tax-free, which could save you thousands of dollars over the years. 

Also, when you retire, a Roth IRA lets you withdraw any or all of your money tax-free as well. If you want to use your contributions for qualifying expenses such as college tuition or to buy a home, you can do this with a Roth IRA. As for annual contribution limits, these range from $6,000 if you are under age 50 to $7,000 if you are age 50 or older. 

It is ideal to work with a financial advisor who can look at your needs and income to provide you with the right amount to invest for your goals. Additionally, they can help you look at your income and current debt to recommend that the right percent of your income should be put into the investment. 

Additionally, they can provide you with recommendations for what percent of your portfolio should be used in other types of investments, not just a Roth IRA.

Real Estate

Always considered to be one of the best and safest investment options by many in the industry, investing in real estate may put you well ahead of others who are relying on a 401K. 

When you invest in real estate, you can do so for either short-term cash flow or long-term appreciation, depending upon your financial needs. Once you own investment property, you can build equity in the property, sell it whenever you wish, or keep it and pass it on to your children or others when you die.

Invest in a Business

If you have an eye for business, you may want to take that money you would have put into a 401K and instead invest it in a startup business. 

Since new businesses are started every day, many entrepreneurs are always seeking financing to get started. Once you've looked over the business plan and have confidence it will be a success, invest your money. 

If all goes well, you could find yourself making more money at this investment than you ever thought possible.

While there is certainly nothing wrong with investing in a 401K, there's also nothing wrong with exploring other investment opportunities. 

Once you do so and learn more about a Roth IRA, real estate, or startup businesses, you may find the money you would have put into a 401K will grow more rapidly in these other options.

How to Adjust Your Home Loan When You Get a New Job

When you sign mortgage papers, you will likely fail to consider what will happen if you change jobs. However, if you find yourself making a career change that results in lower pay, you will need to have your home loan adjusted accordingly. 

Below are a few ways you can adjust your mortgage so that it better aligns with your current income.

Refinance

If you suddenly find that you cannot afford your mortgage payments after beginning a new job, refinancing may be an option. While lenders do not always want to refinance if you have just started a new job, it will depend on several factors. 

Many times, as long as you are still in the same profession, they will be happy to help. Other factors lenders take into consideration are payment history and credit score. 

Maintaining a solid credit score is essential when financing your home. You may even want to consider building your credit prior to starting a new career.

Loan Consolidation

Another option for adjusting your home loan after changing jobs is getting a consolidation loan. If you have other loans, you can find a lender who will consolidate them all into one monthly sum. 

They will typically work with you to give you a lower payment than you currently have. In addition, consolidating your loans will make it much easier for you to keep track of regular payments.

Loan Modification

Most people don't realize it, but it is possible to have your home loan modified if you change jobs. However, this is a difficult task without help because some banks may not be able to assist you. 

If you would like to modify your home loan, contact a loan modification lawyer. Loan modifications can lower your monthly payments and sometimes they can even lower the principal owed.

Chapter 13 Bankruptcy

If you are having problems paying more than just your mortgage after changing jobs, it may be time to consider filing for bankruptcy. Chapter 13 will allow you to keep your home and the equity you have in it. 

You will still be required to pay the mortgage, but other loans will be forgiven. This loan forgiveness could make it easier for you to make your mortgage payments.

There are a variety of reasons that people change jobs. Ideally, they would be switching to a higher-paying job, but that is not always the case. 

This is especially true now that the COVID-19 pandemic is wreaking havoc on the economy. If you are struggling to pay your home loan after getting a new job, don't get discouraged. 

There are steps you can take to adjust your payments. Speak with a financial specialist today to help you make the best decision for you and your family.

Do's and Don'ts of NFT Investing

Making money with NFTs has become a lucrative business for many opportunistic investors across the world. NFT investments can make you rich overnight, but your odds of success decrease substantially if you don't understand the do's and don'ts of NFT investing.

Below is a list of dos and don'ts you need to know before investing in non-fungible tokens (NFTs).

Do's for NFT Investments

1. Research extensively.

It is extremely important that you do proper research on every NFT project before buying. Researching on the NFT increases your odds of making a good ROI. Some of the things you should look into before investing in NFTs include:

• NFT creator's social profiles and status
• Community
• Intellectual property/brand name
• Contract terms (term dates, perks, and restrictions)
• Past projects, accomplishments, and failures

2. Get involved in Crypto communities.

If you want NFTs to be a profitable investment, you need to engage with the NFT community. The community is your support group; you can ask questions to understand the market and if you have something knowledgeable, share it with them. Interacting with the community helps ignite new ideas and friendships.

3. Be a skeptic.

A healthy dose of skepticism can prevent you from being a victim of an NFT scam. If the offer is too good to be true, it may not be true at all. So, ask people, research online, and investigate to seek out the authenticity of the offer and the company making the offer.

4. Understand your risk appetite.

NFTs are relatively new, and their market is extremely volatile. Before investing in NFTs, understand the risks and go ahead with them only if you have the financial bandwidth and the appetite to withstand the risks.

Don'ts for NFT Investments

1. Don't invest in something you do not understand.

It's important that you fully understand the asset you are purchasing. To guide you with the purchase, ask these questions: is the value of NFT based on demand? Scarcity? Utility? What can you do with the tokens? Research before investing in NFTs.

2. Don't share your wallet password or secret phrase.

You need to be extremely cautious about your crypto wallet. Never ever reveal your password or secret phrase to anybody regardless of the situation. 

Anybody asking you to reveal this information is possibly a scammer. Your confidential details in the wrong hands put you and your digital assets at extreme risk.

3. Don't sell too early.

It might be tempting to sell your NFT when you get a reasonable offer for it. But, it might not be the right time to sell; if you sell it too early, you might lose an opportunity for it to grow to its potential worth. If you think the value of your NFT is much higher than what's being offered, listen to your gut and don't sell it.

4. Don't let greed cloud your judgment.

If you are greedy to make a quick buck with NFTs, you could be attracting deals that are too good to be true. Spammers love to target greedy people because they are quick to take a bite. 

Greed can also instigate you to make wrong decisions, making you lose all your hard-earned money. Avoid being greedy; do your research and always invest your money with good intentions, and don't forget to do your bit to give back to the community.

NFT Investing is a lucrative opportunity to make money, but it's extremely important that you understand what you are getting into before making NFT investments. Let the above do's, and don'ts be a guide to you in making informed investment plans and decisions.

Author Bio: Akanksha Malik is a content creator & digital strategist at Mesha - India's largest investing club & online community where the world's best investors gather to share ideas, discover fellow investors, invest in NFTs & crypto, and compete in challenges for real money. She develops content to share her knowledge and insights helping her readers stay updated with the latest in fintech & investments, as well as cryptocurrency trends and upcoming NFT opportunities. Apart from being passionate about her work, Akanksha loves exploring architectural sites and different local dishes during her travels.