Category: Finance

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Finance

7 Expensive Money Mistakes

Just about everyone makes mistakes with their money. It’s just so easy to fall into the various traps that keep you from making the most of what you have. Then you have the rising cost of living that makes things get worse instead of better.

You aren’t going to behave perfectly with your money all the time; that’s simply not in most people’s nature. But if you can learn how to make the big mistakes less often you can save more money, leaving yourself with more financial flexibility.

Some of these mistakes may not seem that expensive at first glance, but when you take a look at how they add up you’ll see the problem.

1. Live paycheck to paycheck

This is an easy trap for many people to fall into, especially if you are a single income family. This can work adequately during the good times, but when prices go up or the car breaks down or worse yet, a job is lost, financial disaster looms quickly.

But what can you do about it? That depends on what you are interested in doing. Maybe someone needs to get a second job. Maybe it’s time to consider a home business. Maybe it’s time to push hard for that promotion or raise.

Then again, you could try cutting expenses. What’s unnecessary?

Living paycheck to paycheck creates an inherently unstable situation. A problem will arise at some point that will throw your finances off that delicate balance. You are better off preparing yourself ahead of time.

2. Don’t bother with a budget

Relatively few people bother creating a budget for their family, yet most could benefit tremendously from it. A budget lets you see where your money is really going, giving you an overall view. You might be surprised at some of the places that you are wasting money unnecessarily.

What goes into a budget? Everything! The monthly bills, birthday presents, estimated auto maintenance, taxes, eating out, eating in, the works!

Now if you think you’ll sweat over making your budget, just wait! The hardest part isn’t creating it, it’s keeping it!

3. Failing to save money

This relates strongly to living paycheck to paycheck. If you aren’t saving money there will come a day when you regret it. Not only will you not have the resources to readily make major purchases, such as a newer car when that time comes, but you won’t be able to cope with other financial crises.

4. Carry large credit card balances or indeed, any unnecessary credit card balances

Credit card debt is generally much more expensive than other kinds of debt, and if you use your money wisely, can be completely unnecessary.

Certainly there are times in most lives where it’s rely on using the credit card or lack the necessities, but too many people use them frivolously. Just remember that the interest on your credit card makes that purchase cost more than it would otherwise. How much depends on how fast you pay it off and how high the interest rate is.

5. Fail to pay your bills and/or debts

Here’s one of the fastest ways to ruin your credit record, and it can cost you huge amounts of money. Not only will you have to pay the money eventually or file bankruptcy (not as easy as it used to be!), but the negative information on your credit report will make every bit of money you need to borrow cost more, as you will be charged higher interest rates if you are a high risk.

6. Forgetting to pay taxes on time

For many people, taxes only need to be paid once a year, since they come out of the paycheck before they ever see it. Don’t mess with the IRS. They have ways of getting their money once they realize you owe it to them, and they won’t be much concerned with what you need.

7. Buying things you just don’t need.

Maybe your weakness is impulse items. Maybe it’s the newest technological toy. Maybe you just want to have what everyone else has.

Whatever it is, stop it! Think before you buy. Marketers know how to push your buttons so that you want things you don’t need. Fight back and think about what you really need before you buy and save yourself a lot of money. You might even end up with less clutter in your life.

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Business Finance

Using A Business Credit Card To Take Control Of Your Business

A business credit card can be a great way to take control of you business and ensure your business stays financially secure while still moving forward and growing. The trick is knowing how to use a business card to help make your business a success rather than a failure.

Consolidating Debt

Once of the great aspects of business credit cards is that you can keep all of your business expenditures on just one card. This makes it easier to keep track of what you have spent on your business when it comes to paying taxes. In addition, receiving a monthly bill helps you see just how much money you are spending on your business each month. This ability to monitor expenditures makes it simpler for you to make modifications as necessary. In addition, most business credit cards provide end of the year summaries that make it much easier for you to analyze your annual expenses.

Many business credit cards also provide special introductory offers with low APRs. Some even waive balance transfer fees, making it possible for you to transfer all of you business expenses from other credit cards on to one card. The lower APR can save you money a great deal of money in the long run, particularly if you are unable to pay the bill in full at the end of each billing cycle.

Investing in the Future

A business credit card provides you with a revolving line of credit that makes it easier for you to expand your business whenever necessary. Many business owners, particularly those that are just starting out, need to have money available to them quickly. After all, the only way to grow a business is to invest in it. A business credit card allows you to bypass long loan application processes, thereby making it possible for you to make investments quickly and keep the momentum rolling in the growth of your business.

Look Professional

With business credit cards, you can often get your company logo in addition to its name on the card. There is no doubt this makes your business look more professional. A business credit card is a sign that you are an established, serious business. In addition, just using a business credit card is a great way of marketing your business. As cashiers see your business logo and name, word slowly spreads about your business. It’s one of the easiest marketing strategies you can utilize!

Perks of Business Credit Cards

Many business credit cards provide extra perks that are nice to have as a business owner. Take the time to compare business credit cards to discover what each has to offer and whether or not the benefits are helpful for you and your business. For example, some provide special travel benefits to business cardholders. But, if you do not need to travel frequently for your business, this benefit may not be too attractive. On the other hand, some business credit cards provide discounts at certain office supply stores. If you frequently purchase office supplies for you business, this benefit could potentially save you a great deal of money. Of course, be sure the business credit card you get provides discounts to a store you actually use. Otherwise, you are once again failing to take full advantage of your business credit card.

If you take the time to compare business credit cards, you are guaranteed to find one that offers benefits or rewards programs that will be beneficial to you and to your business. Make sure you weigh all of the benefits and stipulations, including APRs, annual fees, rewards programs, and other perks before deciding on which business credit card is best for you.

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