5 Financial tips for young adults
Most young adults are clueless on how to manage their money and most often find themselves living an existence of barely managing from one paycheck to the next. Here are 5 financial tips for young adults that will leave you comfortable and prosperous.
Learn self control – It is important to learn the art of delayed gratification. Instead of buying an item on credit as soon as you want it, try saving up the money and buying something straight off. Use your credit card only for emergencies and for the special offers that they provide.
Take control of your own financial future – It is better to understand how to control your money better, than letting your family or friends dictate your financial future. Read a few books on how to make the most of your personal finances.
Know where your money goes – Budgeting is a very good way to understand where your money is being spent. Once you understand where your money is going, you will understand that making small changes can make a big difference at the end of the month.
Start an emergency fund – It is good to pay yourself first, so that you have some money saved in case of an emergency. Set aside a percentage of your earnings, which are transferred from your account automatically to a savings account every month.
Start saving for retirement now – Saving up now for your retirement, will mean that you will have a stable income once you get old and are unable to work
Financial tips for young adults
Until personal finance becomes a subject in high school or college every young adult needs to learn how to manage their finances. Unfortunately, most don’t and as a result go out into the world without any idea on how to manage money. Here are a few tips to get your started:
Learn self-control
It is important to learn the art of delayed gratification. It will make managing your finances and saving money that much easier. Credit cards make it very easy to buy something immediately, even when you cannot afford it. Avoid those traps and only buy something that you have the money for. If not, then save up and buy it.
Setup an emergency fund
One of the smartest mantras in personal finance is “pay yourself first”. Regardless of how much your commitments are, always put away something. The starting point is your emergency fund. Set yourself a target of an emergency fund that will cover your expenses for three or six months. Once that target is hit, then look at other saving accounts.
Start saving for retirement
Thanks to compound interest, the sooner you start saving the less money you will have to contribute to hitting your retirement targets. The sooner you hit your retirement target the sooner working becomes optional and you can do anything else you want. Some companies provide retirement plans for their employees. This is beneficial as the money goes in pre-tax and some even match your contribution.
Tips for hiring employees on a limited budget
Small budgets are something businesses have to get used to when hiring new employees. Here are some tips to get the most for your money.
Know when to outsource – Outsourcing a position is a great way to reduce risks that come with a new hire. If an outsourced employee is not doing their job, you can simply tell them that you don’t require their services.
Use small to your advantage – Small businesses provide new hires with the ability to make changes that can be implemented. Make sure you highlight this fact when interviewing potential candidates.
Offer competitive non-salary benefits – Although employees are maybe willing to join a company for a smaller salary, you will have to offer them other benefits to keep them interested. For example, offering childcare services, transportation reimbursement, flexible schedules, the opportunity to work from home, are non-salary benefits that will keep employees happy.
Clearly set expectations – When the salary is low, it is best to discuss this at the early stage of the interview. The interviewer should then build on the other benefits the job offers.
Leverage existing employees – Ask employees to refer friends and acquaintances, so that they can market your company from the very beginning. This referral means that your employees will be more likely to introduce potential hires that are a great fit for the organization regarding culture and work ethics.
4 Ways to finance your business
Starting a new business can be exciting, but starting a business venture requires a substantial amount of capital. Here are some tips on how business owners can gather money to finance their business venture.
Business plan – A clear business plan should map out the next three to five years of a company, and the plan should be a living, changing document. Your business plan should start with a business summary that summarizes the entity of the business plan and the company’s goals. The plan should then describe the businesses industry, target market and include as analysis with projections for the future.
Funding request – Your business plan should then include a comprehensive funding request to potential investors and define how the funding will be used. Most business plans also include financial plans for the future, which include buyouts, selling the business and debt repayments.
Financial projections – A border description of the company’s plans should also be included in a business plan. These details will help stakeholders understand the big picture and support the business in allocating resources efficiently.
Business loans – There are many ways to obtain a business loan. It is best to start with institutions that offer several loan programs for smaller businesses before reaching out to banks and other private lending entities. Although smaller institutions provide better interest rates, they have strict guidelines that need to be followed to place an application. It is essential to apply to many lenders to receive a positive answer within the time frame required.
5 Tips to straighten out your finances
If your finances are a mess and your life goals are not being met, you may feel that you aren’t making the most of your life. Here are some ways to straighten your finances and reach those life goals you’ve always dreamed of achieving.
What do you owe – Understanding what you owe the bank is an excellent way to work towards paying off your debts. You can then look at how much money you will need to put away each month to pay up what you owe.
Learn accounting – Learning basic accounting will help you to budget and keep track of your expenses. You can then look at your budget each week and understand where you are spending your money the most and where you can save.
Transfer your income to your savings account – To grow your savings look at saving 5% of your income into a savings account every month.
Open an investment account – Investing your money wisely with the help of a reputed, experienced investor can be a smart move. Working with an investor will also teach you how to invest on your own and grow your investment.
Get an eBay account – Selling unwanted items that you own is an excellent way to get rid of junk and earn in the process. Start off by creating an eBay account and use your account to sell items on a weekly basis.
Initially following the tips above may seem complicated because your lifestyle will need to change. However, you will soon realize that within three months of following the steps above, you will increase your savings, reduce your debt and be able to reach your life goals.
3 Finance tips all business owners should follow
Finance is an integral part of the business, and therefore it is vital that your finance is handled by a professional who knows what they are doing. Here are some tips to help business owners ensure that they are on the right financial track.
Don’t procrastinate – Putting off the books is not a good idea as this will make the accounting of a small business unmanageable. Look at documenting your financial process before you start your business and fine tune it as your business grows and changes. Consider recording your financial operations so that even if you are not able to be at the office, your employees will understand the process.
Understand your annual cash flow – Cash flows usually follows a seasonal trend and understanding this pattern is key to ensuring your business has enough money throughout the year. You also will need to understand your sales cycles to ensure that you have a buffer for days that your sales are low but you have to maintain your inventory.
Focus on your core strengths – Although doing all your finance requirements in-house is an excellent way to save money, it may leave you with less time to plan. Look at focusing on your key strengths and then look at outsourcing other areas to professionals who will be able to give you the information you need to make critical business decisions.
4 Strategies for managing a fast-growing company
A start-up is designed to grow fast, and although rapid growth is what every entrepreneur dreams of, most start-ups are not prepared for rapid growth. Here are some tips on how to manage a fast-growing company.
Medium-term goals – Although most business plans focus on short and long-term goals, it is also a good idea to look at medium-term goals. Medium-term objectives help to bridge the gap between short and long-term goals and provide a much-needed stepping stone. Medium-term goals will help a company look at what they need regarding people and resources to reach their long-term goals.
Keep customers happy – It is important that you never stop listening to your customers. Look at gathering as much customer feedback and use this information to improve your business.
Find a great mentor – A mentor who has experience in a similar business or industry can be a lot of help to assist you to guide your company in the right direction. Avoid letting your ego or your pride get in the way of receiving good advice and understand that every start-up needs a good mentor.
Have the right team – Having the right team working for you is your best bet to growing and sustaining your business. To steer the company in the right direction, look for team members that are ready to wear different hats and those that have worked in a startup before.
How Filing Construction Claims Could Financially Assist Your Project
Summary: There is a large variety of construction claims, which can make it difficult to understand which type of claim you should be filing. Although you will not ultimately be the one to file the actual claim, it is still nevertheless important to understand your situation.
With so many different kinds of construction claims out there, it can be confusing to clearly understand what sort of claim you should file for your particular case. Some of the most common construction claims will be outlined below for your education.
Delay Claims
Construction delay claims are those related to schedule delays. These claims are quite common with larger projects, as unplanned circumstances could impact the roadmap for a construction project. Construction delays can push the construction timeline back and can ultimately result in construction workers missing their projected deadlines.
Breach-of-Contract
Breach-of-contract claims are those that oftentimes result from a contract issue. If the person who hired a contractor feels like the work the contractor did was done too quickly, did not meet his or her specifications, or simply does not meet the level of quality that the employer had in mind, then he or she would want to file an owner claim. It is crucial that the employer’s requests outlined in the contract signed by the contractor were not met, in order for such a claim to be filed. The contract legally obligates the contractor to complete the job he or she agreed to, and failure to do so can get them in legal trouble.
Mechanic’s Lien
A mechanic’s lien claim can be filed if the property owner fails to pay his or her contracted workers. If these contracted workers provide labor, equipment, or materials to aid in the construction of a property and they ultimately do not get proper financial compensation in return, then they are not receiving what they are legally entitled to.
It is crucial to have a solid understanding of your rights as a worker, so you can be aware of when they are being violated.
Blog submitted by Lyle Charles: Lyle Charles is a construction industry expert and his team offers construction claim analysis services. Visit him online to learn more.
How to Improve Your Car Rental Company’s Financial Standing
Summary: Taking a look at your business model and revamping it may be the solution to any financial woes you may be harboring.
How much time has passed since you’ve taken a good look at every aspect of your car rental business? You might be thinking back to when you first started drafting your business plan. Well, how is it doing now? Are your goals clear? Are you working towards these goals, and actually improving along the way? Is it where you want it to be?
By asking yourself these questions, you’ll stay involved in every angle of your rental business. You have to be obsessed with crunching numbers and stay focused on the end goal. How well you perform these things will correlate to how well your business runs in the future.
Revisit Your Business Model
Take the time to look at the vehicles you’re offering, the customers you’re doing business with, and the market. Consider all of the possibilities and find ways to challenge your business model so you can exceed what you originally planned. After all, every business wants to thrive and grow into a successful company. Perhaps you could extend a service that provides a car lease to Abu Dhabi, Asia or other areas in the world that are high in tourism. Or, you could offer a variety of different packages that allow customers to take advantage of reasonable prices. The opportunities are endless.
Know Your Customer Base and Adapt
While you might be obsessed with making the most money that you can, you have to let your customer base dictate how you make the next business move. For instance, say you have a customer claiming that they found a lower rate at Monte Carlo Rent a Car, LLC and wants to know if you can price match it. There are two options you have here. You can either tell the customer off and lose business, or you can work with him and come to a mutually beneficial agreement that still brings in some money to your business. Little choices like this tend to stray from the ordinary business model and rely on instinct.
How to get more from your finance team?
Finance needs to play a big role in any business enterprise as a strong finance team will help to build a strong, healthy business. Here are some key tips that will help management get the most from their finance team.
Training and development – The role of the finance team have moved from traditional governance like accounting, auditing, and budgeting to include areas like advanced analytics, demand planning, pricing, etc. Therefore, finance teams will need the right training and development with the right software and hardware to provide the information that is needed to make key decisions. Start by analyzing the knowledge gap that exists within your department and then look at suitable training plans to bridge this gap.
Finance transformation – Finance transformation are strategic initiatives that improve the service provided by the finance department. Tasks can include shortening a budget cycle, reducing overheads to implementing new accounting software. The general goal is to align finance to the overall strategy of the company. Start with the core responsibilities of finance like governance, scale, and services before looking into other areas.
Avoid broad goals – It is best to avoid broad goals like being a world-class finance team and instead look at reducing costs and increasing services offered. However, make sure that the cost reductions are realistic and that the company follows standard industry benchmarks. Allow sufficient time for a finance team to add new services and to get accustomed to the process. Sufficient time will help to smoothen out any issues and help to build a standard process that can be followed by everyone.