Finance

Saving money is often a matter of making it a priority. However, despite how much people may want to make room in their budget for things they’d like to buy, saving money may not come naturally to them.

All of the details that go into finance can be overwhelming. Therefore, it’s easy to give up altogether. However, saving money can be easier than you think. It all comes down to making small, consistent efforts to cut your spending back.

With enough practice, the art of saving will come naturally to you. Here are some of the best saving tips to get you started.

Buy Used

Rather than going out and buying the latest shiniest model of something, consider buying used. Whether it’s clothing or appliances, you can find items that are practically new for a fraction of the cost if you’re willing to look for them.

Buying used may involve a little more risk; however, if you buy your goods online, there are many sites that offer a buyer guarantee. As a result, you’ll feel less uneasy about taking a risk.

Use Coupons

Coupons are a popular way of saving money on purchases. It does involve some time commitment searching for them and using them before their expiration date arrives.

There are all ways to find coupons from signing up for promotional emails, to receiving newsletters, to looking at sites like Groupon. There are even apps available now specifically made for coupon hunting.

Shop Around

Instead of settling for the first price that you find, you should compare prices with several different stores and websites. By looking at several different options, you can find the best possible price for the best product.

Websites like Amazon also provide client reviews of verified purchases. That way, you know if you’re buying a quality product or not.

Take Advantage Of Reward Points

There’s nothing like a good rewards program to save money. Certain stores and credit cards allow you to accumulate points. In return for the points, you get back reductions or even cashback. If you tend to always shop at the same stores, you should inquire whether they have a rewards program or loyalty card.

Avoid Your Spending Triggers

Many people aren’t able to save as much money as they’d like because they can’t stop spending. One of the best ways to cut back your bad spending habits and reduce impulse purchases is to avoid exposing yourself to your common triggers.

If there’s a store you pass on your way home from work that you like to spend money at, try to take a different route. If you can’t resist a sale on your favorite online store, then unsubscribe from newsletters!

 

Tyler Tysdal has spent his life in the world of business investment, he is a fund manager currently but throughout his career he has been an investor as well as someone who manages investments. IT is for this reason that we caught up with Tyler to ask him about some of the most common questions which we get here, mainly around private equity. Now let us best answer those common questions which you guys ahem been sending us, with Tyler at the helm.

What is Private Equity?

Private equity is an investment vehicle which sees large funds invest capital in a business which needs help. These established businesses may be looking for capital so that it can seek growth and an expansion, or they may be in difficulties and that is why they are trying to raise capital. Private equity investment companies both inject this capital and impact opportunities using their experience and their business knowledge.

Why Can’t Companies Borrow Money?

A well established company which needs money could certainly borrow money from a bank or sell shares to raise funds, but the money is not only what they are looking for. These businesses also want someone to support them in their efforts and this is why they will usually place someone from the investment team on their board.

Is This the Same As Venture Capital?

There is a common misconception that private equity is the same venture capital but there are some key differences between the two. The main difference is that venture capital is the backing which is given to a young company like a start-up, rather than investing in an already established business. There is bigger risk involved in venture capital and the percentage which the investment can yield is much smaller than when investing in a business which is established.

What Is The End Game?

Most private equity firms will look to inject cash in a business and help to run it, playing a key role in the decision making process. The end game for these investment companies is to eventually sell their share in the company for a profit, which will then be shared amongst the other investors. Occasionally a private equity company may wish to to buy out a division of a company 100%, especially if it isn’t working for the business, but generally the end game is to get in, improve and then get out for a profit.

Where Does The Money Come From?

Most of the money from private equity firms comes form high wealth individuals but in the main the cash coms from savings accounts and pension funds from the likes of teachers, police and fire fighters. These high volume funds make the perfect source of cash for these private equity firms and the low risk strategy is why they are able to use it, because they almost always help that fund to grow.

 

Despite the huge amount of benefits which you can get when you use a website like Cashback World, there are still so many people who are oblivious to what cashback is and how they can make the most of it. I would go as far to say in fact that this is one of the best kept secrets in retail and it is time that many more people unlocked the true value of what cashback can do for them. If you are looking to save some money on your weekly shop then here why you need to ensure that you are taking advantage of this great opportunity.

What is Cashback?

Cashback is actually very simple, it involves you getting a percentage of money back for products which you have bought. The cashback website will feature an array of products which are eligible for cashback, you buy them at full price and then get a percentage of that money back once you do, it is that simple.

Everyday Brands and Products

Many think that cashback websites will only feature obscure oviducts which they are unlikely to buy or large products which won’t help them very much. The truth couldn’t be more different however and the bulk of the products which these websites offer are those which you are likely buying each week anyway. They want people to take advantage of these offers which is why they will feature products and brands which people buy on a weekly basis. If you don’t use these sites then you are probably buying products at full price when you could be saving instead.

Ease of Use

Something else which puts people off using cashback sites like Cashback World is that they think it is difficult do or that it involves a lot effort from them, this is also untrue. The fact of the matter is that all that is really required from you is that you sign up to a cashback website, pay a small membership fee which gives you access to these exclusive offers, and then you simply need to see what offers are available, choose which you want and then go buy them. Once you have bought the item simply show proof of purchase then get your money back.

Real Cash

Another popular misconception about these sites and offers is that they give you money back in vouchers or in store credits, but it really isn’t like this. You can shop and take advantage of these offers safe in the knowledge that you are going to be given real money back for your purchase. Once you get the money back in your account you can withdraw it to your bank without any limitations or requirements, or you could keep it in the account and use that money on online offers which give cashback.

This is a fantastic service which will guarantee that you save big on your weekly shop, now is the time to get started.

 

On a range of 300 to 850, a credit score of 700 is considered to be a good one. Using the same scale, a score of 800 is regarded as excellent. Most credit scores fall within the range of 650 to 700.

A higher score means that creditors will regard you as someone who makes better credit decisions and this boosts your credibility. This makes creditors believe you will be able and willing to pay future debts according to the terms of the loan.

Lenders, including banks that give mortgage loans, use credit scores to make decisions about offering you credit, as well as the conditions of the offer (such as interest rates). Other organizations like credit card companies, and even car dealers use credit scores.

There are several scoring systems, but the two most commonly used systems are;

· FICO

 

In this credit scoring system, ratings are based on individual scores obtained from the scoring chart. A higher score means a higher rating and thus a greater chance of obtaining credit.

For example, a score within the range of 670-739 is considered good, and only 8% of applicants in this range are likely to stop being law-abiding in the future. Applicants with a score ranging from 800-850 are considered exceptional and they always get the best rates from lenders.

 

· Vantage Score

 

This credit system is FICO’s closest competitor and it also ranges from 300-850. Lenders also use this scoring system to evaluate an individual’s eligibility.

A vantage score within the range of 661 to 780 is considered good. Applicants who fall within this range are likely to be granted credit at reasonable rates. Applicants with scores ranging from 781-850 will most likely get the best rates with the most favorable terms. Get special info on how to improve your credit score with the finest tradelines today.

 

 

FACTORS THAT AFFECT YOUR CREDIT SCORES

The different scoring models have different factors that influence a credit score. Generally, a number of components in a credit report can have effects on overall credit scores. These components include:

 

1. Credit utilization rate

2. Total debt

3. Public records such as bankruptcy

4. Records on payment of loans and credit cards, including how overdue the loan was before being paid.

 

HOW TO IMPROVE YOUR CREDIT SCORE?

To have a good credit score, you need to develop good credit habits and be consistent with them.

Some good habits that will help build your score include:

· Pay bills on time

 

Your payment record is the most important factor when evaluating a credit report. You give yourself a big chance of obtaining credit when you pay bills on time, at all times.

 

· Credit Utilization

 

This factor has the second biggest effect on your score.

It is advisable to keep your credit card balances well below your credit limits. Expend credit lightly.

 

· Increase the time-frame between credit applications

 

When you apply for credit, credit checks are done to evaluate your eligibility. These credit checks cause your score to drop temporarily, and several credit checks within a short time can accumulate and reduce your score significantly.

 

· Update your credit report

 

Create time to monitor your credit report, and make changes to out of date or irrelevant information.

 

 

A GOOD CREDIT SCORE CAN GET YOU:

1. A mortgage

2. Credit with a decent interest rate

3. A desirable car loan

 

So, a good credit score comes in handy, whether you plan on getting credit or not.

 

 

To live a peaceful and happy life with financial freedom, it is essential to manage your family finances properly. A long-term financial plan will not only help your family reach its long-term goals, but it will also give it more focus on short-term goals.

Falling to have an agreement on financial choices can cause a couple to have endless arguing. Fortunately, you can get through the countless financial decisions present in your family by coordinating financial and budget planning with the family. Keeping an open dialogue going about your family’s money can help as well.

Step 1 – Assessing your spending habits.

Consider writing down a note each time you spend cash, even small amounts, for a month. Record what you paid for and the amount spent. At the end of that month, total up your spending with your spouse, including major expenditures. If you can, split up your expenses by category, like home, food, car and compare the amounts to the combined after-tax income.

Assessing your spending habits is your first beginning point for knowing your budget. Also, work with the bank statements to ensure that you did not miss any online purchases or recurring payments when totalling the expenses.

Step 2 – Creating an emergency fund.

Each family should always be prepared for the unexpected. Things can go south and so you need to keep an emergency saving fund. After all, this life is full of surprises – an extended time of unemployment, for example, or an accident – can really throw a wrench into your family’s otherwise excellent path to financial security.

The key is to anticipate the surprises in order to protect your assets and family. Creating an emergency fund can provide some financial flexibility and security and help you avoid any future debts. There are many online financial calculators, which you can use to roughly calculate how much you require to save to cover all your expenses.

Step 3 – Paying off your existing debt.

Paying off your debt should be your first objective. Doing this will help your family to qualify for more credit as well as move forward with savings. Work together as a family to eliminate outstanding debt.

How you choose to prioritise your family’s debt repayment plan is up to you. You can split extra money between your emergency fund and your debt.

Step 4 – Save for retirement

A couple should begin planning for retirement and investing savings as early as possible. It is wise to put about 15% of your gross income into retirement every year.

But if your family has specific retirement objectives, it may require increasing this amount. If so, you can get help from a company like Moneyfarm Private Pension – it is a fully managed SIPP; self-invested personal pension. This company will help you decide the amount you require to get that retirement lifestyle you need.

Any family can benefit tremendously from recording and following a financial plan, especially if you do not have lots of funds now. The plan will allow your family to define its financial objectives and determine the roadmap to get there.

Understand your annual expenses, annual income, and allocate the funds between your financial goals, and debt payoff.