Saturday, December 9, 2017

How The Credit Crunch Affected Us

crunching finance
Back in 2007, no business on the planet fared well up against the recession; more commonly known as the Credit Crunch. 10 years on, there’s a lot we’ve learned from the experience of living through it and after it. A credit crunch is a tricky time for anyone, but they mostly impact business owners and those whose personal finances rely on it, especially when you’re playing on the small degree. Before a credit crunch tries to roll around in the Western world once again, and they can vary due to the amount of variable inflation on the market, here’s what the previous one taught us to look out for.

How it Changed Credit Cards

Credit scores tend to vary a lot when the credit just isn’t there for people to borrow! That means credit scoring has changed a lot since the previous recession, and the world got a little more complicated because of it. Score generators now take into account the behaviour of consumers and the economic climate at the same time, and how your habits fare against it.

If you run a business, a credit crunch targets that first. However, that means your personal living costs are going to skyrocket at the same time; it’s all a cycle of cause and effect. First of all, if you have two separate credit card accounts for these two purposes, keep an eye out for a little credit card consolidation to tide either one of them over in times of trouble. People tend to panic and bulk buy when the future is uncertain in this way, so it’s easier than you’d think to make the money back.

How it Changed Family Dynamics

No one was unaffected by the lack of money that was around during the credit crunch, and most of all it meant that families tended to stick together. Staying afloat was all about money, so divorce rates dropped when it came to preserving a family’s health. Whilst the real estate market dropped as a result of this, it meant people could pool their resources.

Stamp duty was astronomical at this point, but there was a great boom on the renovation front. People got better and better at the DIY side of things and many houses had extensions in their lofts and back gardens. Everyone was looking for a little more room, and standing on your own two feet was often impossible.

Community was strong during this time, and sticking together happened outside of families as well. People often tended to use each other’s cars and take more public transport; this was a lot more affordable than buying own or new cars. Less and less mileage affected the roads and thus the fuel consumption rate dropped. That’s a win for the environment!

The credit crunch had a lot of cons, but on the other hand these sometimes generated their own pros. Seeing the positive side of negative things is essential to finding opportunities to making and saving more and more money!

Friday, December 8, 2017

Three Ways To Make Your Life Easier As A Business Owner

money for business
If you’ve ever owned a business or currently own one, you will know that time and effort are as precious a resource as money, so it’s important to conserve as much as you can wherever you can. There is a lot of work that needs to be done when you’re a business owner, and if you want to have any time to yourself, it makes sense to do whatever you can to make your life a little easier. Here are some ways to do this.

Get Some Help

The obvious way to make your life a little easier is to get some help. There are a few options that you have when it comes to help for your business. Firstly, you could visit some online forums or business Facebook groups and find yourself a mentor; This mentor could then help you out with any business-related problems that may crop up, and keep you motivated to reach your business goals. You could also hire employees, which could help you out massively. An accountant, for example, could deal with all of your business finances, including more complicated things like your tax. They could even find ways to make your business run more cost efficiently, which is great if you’re not making much profit each month. You could employ other people to deal with sales, which will free up time so that you can focus solely on running the business.

Have Separate Accounts

When you are the sole owner of a business, it can be easy to think of any money going into and out of your business as yours. However, this could be a big mistake and could put a strain on your finances and your business. Instead, it makes much more sense to have separate accounts for your business and yourself, so that you don’t mix up your personal money with your business money and don’t spend more than you actually have. The same rule applies for your credit card; You should get yourself a business credit card, rather than use your personal one for business so that you know where all of your money is going.

Use Online Templates

The web is filled with useful information and tools that can help make the day to day running of your business a whole lot easier. One of the most helpful things are templates, such as for work contracts and pay slips. Lots of small business owners avoid writing contracts of employment purely because it’s a lot of work, but a template would make the process a lot easier. The same can be said for free check stub template printables. Both of these things benefit you and your employees, and online templates can make creating them incredibly simple.

Running a business requires a lot of work and dedication, but it can be easy to get in over your head. Being a business owner was never going to be simple, but it doesn’t have to be such a struggle either, so follow the tips above to make your life somewhat easier.

Thursday, December 7, 2017

I Wish I Knew That Before Taking out My First Credit Card...

card for credit
If you are thinking about taking out your first credit card, it is important to do plenty of research beforehand and make sure you know the terms and conditions of your credit agreement. Having a credit card is vital for your credit rating, but it is even more important to use your card correctly. Read on to discover some of the things that most people wish they knew before getting their first credit card.

Making numerous credit card applications can have a negative impact on your credit rating –

A lot of people are tempted to make numerous credit card applications, so they can then see what they get accepted for, and choose the best one. This is not advised, as it will hurt your credit rating. Credit card searches and applications show on your credit report, and it can give the impression that you are a high risk. They will show on your report for six months. This is why you should use one of the comparison tools to find out how likely you are to be accepted, and then choose a card with over a 50 per cent change of acceptance.

There are great promotional offers available on credit cards –

You don’t want to miss out on the best deals. You can find out about the different offers and the best cards for you at best.creditcard. There are some cards that will give you 0 per cent interest on balance transfers or purchases for up to 36 months, sometimes even longer. There are then cards that give you cash back, travel points, and other rewards. Think about what you need most, and choose the right offer for you.

Missing a payment hits you with a double whammy –

A lot of people don’t realise just how bad missing a payment on their credit card can be. First of all, you are going to be subject to interest added to your account. Secondly, you will have to pay a late payment fee. In fact, you could say it is a triple whammy, because the missed payment will show up on your credit report, and it will stay there for years. This will cause significant damage to your rating. The best thing to do is set up a direct debit so you can avoid this from happening.

Closing your credit card isn’t always the best move –

When getting your first credit card, you will likely have a small selection to choose from. After a while, this gets bigger, and you may want to choose a different card because they have better offers. It seems sensible to close your first card, however, this can harm your credit rating. This is because it reduces the average age of your credit accounts.

Hopefully, you now feel more prepared for your first credit card. There is a lot that needs to be taken into account when getting a credit card for the first time, and it can feel like a bit of a whirlwind. But so long as you are careful, and you use it responsibly, you should have nothing to worry about.

Wednesday, December 6, 2017

10 Interesting Facts About the Great Australian Gold Rush

raw golds
When we consider the rich history of Australia, the subject remains incomplete without the mention of the gold rushes that took the country by storm in the nineteenth century. The people who worked and lived on the gold fields – commonly known as the “diggers” – hold a special place in the national folklore that we Aussies are immensely proud of.

Gold trade has always been popular in the country. However, when people buy or sell gold from and to a Melbourne gold bullion dealer, they don’t really make an effort to find out how the gold got there. From the initial discovery of gold that triggered a gold frenzy across the nation to the availability of gold bullions at dealership stores across the country, there are several facts that should be known by all of us.

1. The first official discovery of gold in Australia was made by Edward Hargraves in 1851. There were other discoveries made before that, but none of them won the approval of the Governor of New South Wales.

2. The discovery by Hargraves was made in a waterhole near Bathhurst, which was later named Ophir by Hargraves himself. During the hunt, he was accompanied by three other men – William Tom, James Tom, and John Lister – who decided to surrender the reward for discovery in full to Hargraves.

3. The gold discoveries made before Hargraves were rejected by Governor Gipps owing to the fear of having gold mines dominated by convicts who would rush to them as soon as they heard about it. This could have led to serious chaos in the country.

4. The first ever discovery of gold in Australia was back in 1823. Then again, geologist William Clarke discovered particles of gold in Blue Mountains in 1840.

5. In 1869, diggers Richard Oates and John Deason unearthed the Welcome Stranger – a gold nugget that weighed 2268 ounces – the largest ever found!

6. The Welcome Stranger was extracted from Moliagul. This place is famous for all the large gold nuggets found here. It is located close to Dunolly.

7. Back then, Bendigo and Ballarat were the most productive gold fields, attracting most of the crowd. Even today, they are renowned worldwide for the gold they produce. These fields were rich, but never produced nuggets as big as those found in Moliagul. People still try their luck at digging there in an attempt to make a fortune.

8. William Campbell was the first person to find gold in Clunes, Victoria. However, he waited to claim his findings till a reward was set for it. Campbell was awarded 200 pounds in 1851 once his discovery was confirmed.

9. Kalgoorlie and Coolgardie qualify as the two largest goldmines of Australia. Located closed to each other, these sites produced more gold than any other site in the country.

10. Most of Australia’s gold yield is concentrated in Western Australia, with the region contributing almost 70% of the total gold yield of the country.

Have more interesting facts about the Australian gold rush to share? Let us know about them!

Tuesday, December 5, 2017

Marriage on the cards? These financial tips will help

marriage finances
The run-up to your marriage can be a frenzied, hectic affair. Money matters take precedence when it comes to finalising the wedding location, the caterer, the guest list and so on. However, money matters of another ilk fall through the cracks during such tumble-dry phase. It is very easy to forget, amid the hullabaloo, the importance of understanding each other’s life goals and financial habits. After all, you would be sharing most of the daily activities together for the rest of your life. So, before you walk down the aisle, here are some financial investment tips for beginners.

Know each other’s money habits

Effective communication is the key to any successful marriage. Yet, more than often, most couples hesitate to discuss money matters. However, it is best that you and your spouse understand each other’s money habits, past and current debts, investments and savings. Assess your financial health and share it with your better half. If you find it awkward, begin with small talks. Make it a casual discussion. Get into the details as you begin to get comfortable with each other.

Take some decisions for the future

After the wedding, you and your partner would take combined decisions for all things under the sun. Start with deciding on how the both of you would manage your monthly finances. Think whether it would be better to have a joint account. It is also important to divide your monthly expenses. Also, thinkhow to take care of investments and savings.This would enable you to run your house effectively.

Update your records

Never underestimate the importance and urgency of updated documents. Updating your marital status and/or new name in your PAN card, Aadhaar card, passport, bank accounts, insurance and investments should be top-priority on your post-marriage to-do list.

Anticipate post-marriage expenses

Are you planning to stay in a rented house or your own house? Do you need to setup a fully-functional house? Would you be looking at buying a new apartment? What will be the change in premium to get your spouse added to your insurance policy? Would it be easier to commute by public transport from your new home? Or do you need a personal vehicle? Do you need a motor loan? Having some idea of post-marriage expenses can allow you to plan your finances accordingly.

Be emergency-ready

Having a contingency fund is not the only way to be ready for an emergency. With a partner adding to your life, your contingency fund should increase. Besides, it is important that you have some short-term easy-to-liquidate investments like fixed deposit, corporate deposits, bonds etc. After your wedding, it is the life of two that you need to protect and secure.

Invest wisely

As you begin a new life together, your responsibilities will increase as well. To fulfil these responsibilities, you would need sufficient funds at the right time. Mere savings will not help you build enough wealth to meet your goals. Hence, you must also invest according to your goals. It could be buying a car/house in three years, your child’s education and retirement. A planned investment portfolio, with the right mix of equity and debt, can help meet all your future goals as a couple.

Planning makes everything easy

A well-laid financial plan serves as a road map for your future. Make sure you both devote enough time before and after marriage to make and review your plan. If something doesn’t seem going the right way, change the route. Sometimes, a detour may seem time-consuming but is a better way of reaching your goal.

Use these tips to get into the skin of the new role you are about to take up. A happily ever after is not a myth, but it involves efforts, communication and some strategic thinking from both partners.If you aren’t well-versed in the world of finance, it is best to start with mutual funds. There are fund managers who can help invest your money in the right places.

Monday, December 4, 2017

What Type of Loan is Right for Your Needs?

in need of loan
At one point or another, most people will find themselves in need of more money than they currently have in their bank account. No matter how good you are at budgeting and saving your money, there are simply some times when you’ll likely need financial help of some form. Most people find themselves in this situation when they’re making a very large purchase, such as a home or a new car. You may also need outside funding when you’re paying for university for yourself or for a dependent, when you’re moving cities, or when you have unexpected medical costs.

In all of these situations, people typically take out loans. However, there are a wide variety of loan types that you could take out — so how do you decide which is right for your financial situation? Take a look at the some of the most common loan types to help you figure out which one fits your circumstances.

Student loans

As the name implies, student loans are used to fund educational expenses. Student loans can be taken out by college students themselves or by family members in order to pay for the college student. Loans can be either federal or private, although federally funded student loans typically have lower interest rates.

Student loans don’t have to be paid back until after the student has graduated from college. Many student loans have a grace period, to allow the student to find a job and establish themselves before they have to start paying their loans back. Often, this grace period is six months long, although the specific grace period depends on the specific loan. Many student loans also do not begin accruing interest until the student has graduated, making it more feasible to pay off the loans in a timely manner.

Mortgages

Mortgages are a type of loan specific to real estate, and used to allow the borrower to purchase a new home. Most people choose to make a downpayment on their home, and then acquire a mortgage to fund the remainder of the cost of the home. Mortgages are very long-term loans. Borrowers often take mortgages out for 30 years or even longer, which as a result means that mortgages have a low interest rate in comparison to other loan types. Like other loan types, mortgages can be paid off earlier, which saves the borrower on interest that would have been accrued otherwise.

Keep in mind that your home is linked directly to your home, which means that the lender likely has permission to seize the property if you fail to pay your mortgage payments.

Car loans

Car loans are similar to mortgages, in that they’re used to fund a specific large purchase, in this case a new vehicle. Car loans are also linked directly to your vehicle — just like mortgages — so once again your vehicle may be seized by the lender if you don’t make your payments.

Personal loans

Unlike the other loan types listed above, personal loans aren’t earmarked for specific purposes. Instead, they can be used for just about anything, such as medical bills, moving costs, or even vacation. This makes personal loans the most versatile of the loan types, and can be used to cover your financial needs that don’t fit into any other single category. To learn more about personal loans, and how you can apply for one, click here, and you’ll be well on your way to getting the financial support that you need.