Tag: Accountant

Common Financial Mistakes Many People Make

Common Financial Mistakes Many People Make

Rarely, does someone have a perfect financial history.  Mistakes in finance are common and it’s likely that most people have experienced them at one point or another.  The important thing is to figure out how to correct them, as they can tend to pile up and create somewhat of financial hardship.  However, don’t panic; with the right tools, you can easily change your financial habits. The following tips are a great guide and provide insight into the many financial mistakes people tend to make.

Too Many Monthly Payments

You may not realize it, but your monthly payments tend to add up, quickly.  Many people are seeking the “better” things in life, so they’re willing to tack on monthly finance payments to acquire the things they desire.  And while the monthly payments may not seem like a big hit at the time, the more you have, the more they tend to add up. Additionally, it’s not uncommon for people to have monthly payments that are more on the unnecessary side.  Consider the gym, for example. While for some, a gym membership is a great investment, for others, it may just be a monthly bill that isn’t regularly utilized.  Consider where your bills each month are going, and see which ones are actually necessary.

High Credit Balances

While credit cards may seem like a great way to get what you need, without having to see your bank account take an immediate hit, they can do more harm than good if they aren’t used properly.  Think of a credit card as borrowed money; money that needs to be paid back, and should be paid back in full to avoid any further charges like interest and late fees. The days of cash only are gone for many people, as credit cards are a regular part of today’s society.  Utilize your credit cards to purchases that you know you’ll be able to pay in full and avoid using them for everyday purchases that will increase your balance quickly.

Failing to Set a Monthly Budget

Budgeting your expenses on a monthly basis is a great financial habit to have; however, many people neglect to do this.  Without a budget, you’re freely spending your money without keeping track of where it’s going. By the end of the month, you’re left wondering where your paychecks have gone and why you aren’t able to contribute anything to your savings account.  

Falling Behind on Bills and Payments

Making late payments is an unfortunate, but common habit for many individuals.  Late payments can hurt your financial health in that you will likely get hit with late charges and increased interest payments.  Additionally, late payments can affect your overall credit score and lower it by a few points. Once this cycle starts, it can be hard to correct and break.  

Great Ways to Boost Your Credit

Great Ways to Boost Your Credit

 

One of the many ways we are “defined” by society, is by our credit score and history.  Your credit information has a very significant impact on not only your personal finances but also a majority of your life and different events you may experiences, such as buying your first home.  The first step in credit management is establishing your credit score. Once this is done, it’s important to remember that you’ll want to continue to build your credit up in various ways; you can do this by gradually making small credit charges or larger transactions such as financing or leasing your first vehicle.  Always remember that any credit charges you make need to be paid back within a specific period of time, and late payments can negatively impact your score, as well as result in late charges and higher interest payments. Here are some great tips for boosting your credit:

Make Payments On-Time

Whenever you make a credit charge, you should keep the payment due date noted somewhere where it will help you remember.  Credit cards are a great tool for boosting your credit when they are used properly; however, they can do more harm than good when they aren’t managed correctly.  Any credit card charges you make should always be paid on early or on time. This will give you a good rapport with the credit company, as well as boost your score.  You’ll also avoid any late charges, and you’ll have a better chance of getting future credit cards and other purchases with low-interest rates.

Avoid Making Minimum Payments

While minimum payments are an option that you’ll usually see when you’re making a payment, it’s best to pay your bills in full if you can.  Minimum payments tend to extend your payback period, as you’ll incur interest that can sometimes make a minimum payment useless. Do your best to make any payments in full.  If you’re unable to make them in full, try to pay back well over the minimum, to tackle the balance the best you can.

Address Any Late Bills or Payments

Late bills or payments can happen sometimes.  As humans, we forget, and it isn’t uncommon. You may have changed bank accounts or hit a financial hardship that caused you to get set back on some payments.  If that’s the case, once you’re in a better financial position, work on getting any late payments or bills settled as quickly as possible. This will help bring your credit score back up if it’s taken a hit recently.

Essential Saving Tips for First Time Home Buyers

Essential Saving Tips for First Time Home Buyers

 

Buying a home is a process that can often take a substantial amount of time, and cost a lot of money.  As a new homeowner, it’s wise to expect a number of expenses, in addition to your mortgage and taxes. From closing costs to renovations and new furniture, buying your first home can prove to be quite costly.  If you want to make sure you budget properly, and remain in control of your finances throughout the home buying process, here are a few solid tips to follow.

Home Repairs

Unless you’re buying a brand new home, you will likely be faced with a few repairs; if you’re in a fixer-upper situation, your repairs could run you thousands.  Older homes face tremendous wear and tear, and you’ll need to spend on different materials and tools to make fixes are or completely replace something. Having a separate budget after closing costs is a great way to ensure that you’ll have the right amount of funds to cover any necessary repairs or renovations. As time goes on, you can use your budget to focus on other things you may want to change in your new home.

Maintenance

Property upkeep is another financial factor to consider when purchasing your first home.  You’ll need to set aside money throughout the year to save for general maintenance. Exterior projects such as lawn and landscaping, or interior projects like painting or purchasing new appliances, to mention a few.  

HOA Fees

Depending on where you decide to buy your home, you may need to factor Home Owners Association fees, into your budget.  HOA fees can potentially add a few hundred dollars to your monthly expenses, in addition to your mortgage and other utility bills.  Additionally, it is wise to consider other expenses, like homeowners insurance; which is sometimes required as a first time home buyer or buyers that are using an FHA loan.  Never forget to factor in your property tax; depending on your location your property tax cost could vary.

Emergency Fund

Creating an emergency fund is essential when owning a home.  It isn’t uncommon for an unexpected expense to come up that may require immediate payment.  Plan ahead for things like this, and assure that you can handle a financial emergency. Contribute a percentage of your pack check every month into a separate fund that you don’t use unless you absolutely need to.  

4 Ways to Make Money During Your Morning Commute

It’s normal to dread your morning commute as you spend time in traffic before arriving at the office for a long day of work. Although it may seem like a waste of time sitting on the bus or train, there are ways that you can earn extra money before arriving at the workplace. If you want to make cash during your commute, there are a few different methods to consider to occupy your time each morning.

Sell Items on eBay

Selling items on eBay.com or Amazon.com is an excellent way to supplement your income and enjoy a fun hobby. You can create a seller’s account and list items that are sitting in your attic or that you find at yard sales. Drop shipping is also available where you purchase items for lower prices on other websites and list them for a higher price. Drop shipping is convenient because you don’t have to worry about having the items in your possession and manually shipping everything.

Sell Your Handmade Goods

Whether you enjoy making knitted scarves or jewelry items, you can sell your handmade goods on Etsy.com without worrying about having to get a business license. Take high-quality photos of each product and write a thorough description that engages the reader to attract more customers.

Write

If you’re good with words, you can make extra cash by writing articles and selling them to clients online. Creating your own blog is also a great way to earn money by attracting traffic to your website when you write posts based on topics that you enjoy and are knowledgable about, which can include cooking or fashion. You can integrate SEO tools to increase your ranking on search engines and make it easier for people to find your blog online.

Take Surveys

According to lovemoney.com, many websites offer gift cards and cash to individuals who take surveys. The websites will also pay you to watch commercials and ads. Each activity that you perform will allow you to earn points, which can be redeemed for money over a period of time. You can use the money to save for an upcoming trip or use for Christmas gifts, which can allow more wiggle room in your budget for your daily expenses.

Tips for Saving Money While Traveling Abroad

Traveling abroad is an ideal way to become more culturally sensitive and aware. At any stage of life, traveling abroad allows you to gain skills and experience that can benefit you professionally. The only downside to traveling abroad is that it may prove to be quite expensive. Here are some tips to help you save money while traveling abroad:
Credit Card

The first tip is to make sure that you have a credit card that is going to be able to be used in a foreign country. You are going to need to do some research before you do any traveling internationally since some credit cards offer better benefits than others. Be sure to look at the fine print to see if you will be charged a foreign currency transaction fee.

Contact the credit card company

Next, make sure that you inform the credit card company with all of the dates that you are going to be traveling abroad. This is going to need to be done at least a week before you travel. There is a high chance the credit card company will assume the international purchases are fraudulent and will freeze the account if they are unaware of your travel plans.

Travelers’ check

An often neglected tip is obtaining a travelers’ check. These can offer you a bit more of security if your credit card cannot be used in the foreign country or if your credit card is stolen.

Local Currency

Save some money by exchanging your cash into the local currency as soon as your arrive instead of doing it at the airport. Most airports  have a lo of different fees that they are going to charge you.

References

The final tip to saving money when you travel abroad is to make sure that you have created a reference list of the credit card companies. This should include all of their phone numbers.

Stay tuned for more personal finance tips.
Safe travels!

4 Valentine’s Day Gifts That Won’t Break Your Budget

Valentine’s Day is right around the corner! With all the dinner, card, and gift options available, it is quite possible to blow your budget if you aren’t properly prepared. Whether you’re on a strict budget or tired of wasting money on gifts that will be forgotten about months later, here are some meaningful gifts that will give you the most bang for your buck:

Wine Anyone?
What better way to enjoy some alone time together than having a wine tasting date night. The best part is most wineries and breweries offer discounted tickets or free (yes, FREE) wine tasting events all year long. Check out your local wineries and breweries and see what they have to offer.

Pro tip: It may be difficult to get tickets for Valentine’s day, so try surprising your loved one with a surprise date on or before the holiday.

Home-cooked Meal
Valentine’s Day is one of the most difficult holidays to make dinner reservations for. Many restaurants increase the price menu items and may require you make a reservation weeks, months, or even a year in advance. Skip a crowded restaurant and make your significant other a home-cooked meal.

The two of you can make the night even more memorable by choosing a meal neither one of you have made before and cook the Valentine’s Day meal together.

Get Crafty
Fancy greeting cards are all the rage on Valentine’s Day, but do you really need an overpriced piece of paper to express your love? No. Why not try stopping by your local craft store, gather some supplies, and create a personal card that will touch your loved one’s heart.

Sweet tooth Solutions
A wise man once said, “life is like a box of chocolates -you never know what you’re gonna get”. While this remains true, a box of chocolate is another overpriced item during the Valentine’s Day holiday season. Opt for purchasing the necessary items from your local supermarket and bake a batch of homemade cookies or your significant others favorite dessert.