Blogs


Business

How Should A Millennial Invest?

As a young person, what are you trying to do to prepare for your future? If you are a young entrepreneur, think of diversifying your assets. If you want to expand, don’t be scared to do so. You don’t have the funds? Build your credit right now, get a loan or an unsecured line of credit. There are many ways to secure capital.

A Millennial’s Guide To Investing

As early as now, you should start accumulating enough assets so that when comes a time that you are unable or unwilling to work in the future, you can have this cash flow coming back to you. What you want to do is to invest locally and globally too. You may never know which is the best place to invest on in the future. So spread your investments -70% locally and 30% internationally.

Invest in the Four Primary Types of Assets

When you think of investing, you think of the assets that you accumulate. And there are four primary types of assets – bonds, stocks, cash, and real estate.

Real estate is the best investments you could ever make. Think about the apocalypse. If you own a home, guns, and some food, you can sort things out in worst-case scenarios. Many financial advisors recommend that you should hold up to 5 to 10 percent of your assets in gold because gold has been a store of value in the medium of exchange in the last five thousand years. The US dollars has only been around for about 200 years.

Bonds are advisable for people approaching the retirement age. They want to buy a bond because its a contract that you are going to get your money back and get a stream of interest payments in the long run. The big risk in bonds is inflation and interest rates. When interest rates go higher, bond prices go down. When inflation goes up, the value of your money on the bond is going down.

Refinance Student Loans

After college, the first thing that you will have to do when you secure a job is to pay your student loans. This is non-negotiable just like the way you have to pay your rent, buy your food, pay your bills, and so on. You’re young and it’s the best time to refinance your student loans because you are not going to see interest rates that can’t be much lower than they are right now.

Jobs with Pensions

One thing to consider is becoming an employee of the public sector. You can be a teacher, a policeman, a fireman, a career military, city municipal employee, or state employees. Securing employment in these sectors will surely to give you a pension after 20 or 25 years of service. This is a fixed amount of money that goes up by some amount every year until you pass away.

Bottom line

So you are a millennial. You are earning about $40,000 a year before taxes. But you see there’s good news and there’s bad news. The bad news is that there are taxes and cost of living allowance that varies depending on the state you stay. Good news is that millennials are bigger in numbers and there is strength in numbers could actually help out. Nonetheless, regardless if you just finished college or already part of the employment or entrepreneurial group, you can make a difference and it all starts with personal financial planning.

Business

Alternative Options for Financing Your Business Idea

It was never an easy task to find a financing for an idea that you want to come alive. Given the stature of world’s economy, financial institutions are so careful in whom they will approve. Regardless if you are in search for start-up funds for your cryptocurrency investment and buy tradelines direct, doing expansion of an already running business or just buffer fund for whatever circumstance may happen in the future, having access to financial services are crucial.

For sure, you may be hitting a wall thinking that there’s not much option that you can get.

Truth is, even though it is hard to get financing, there are plenty of options that can help you to get through it.

And this will be the topic of our article for today. So if you’re ready, then let’s get this thing rolling.

Keeping Your Business Alive

One of the many options that you may want to give a try is factoring. This is a form of finance in which the company sells their receivables for a discounted price in exchange of money upfront. Oftentimes, this is broadly used by companies that have poor credits. You can see businesses like apparel manufacturers using this approach in filling orders before it’s paid. However, this may be risky and costly way of raising funds. That’s why it requires thorough analysis of every aspect of the financials to ensure that you’re making the right decision.

If factoring is not your thing, then you can always switch to your ever-reliable credit card. But like any other options, there are risks involved in such. Fall once on your payment and it will stain your credit score. Paying only the minimum and you might create a financial hole that you might not be able to get out of.

On the other hand, as long as it’s used in the most sensible and responsible way, then you should do just fine. This is true especially in getting out of occasional challenges that your business may face.

Give and Take

You may or may have not heard of an Angel Investor. Simplest definition is that, these are people who are willing to invest in your idea in exchange of ownership equity or convertible debt. Think of Shark Tank. See the point? However, when doing your pitch to one, make sure to avoid jargons, be succinct and always have an exit strategy.

Business

Initial Steps To Take When Geting A Business Loan

With the advancement of fintech, lending companies have grown in number. This gives many individuals the opportunity to take out loans for various purposes. For instance, American Pride Car Accident Loans has helped out many individuals who have been in immediate need of financial help after an automobile accident.

Initial Steps To Geting A Business Loan

Others look for financing or take out loans for start-up funds, expansion of business, to cover operation cost, as well as other business-related reasons. Although there is an abundance of financial institutions and other private and online lenders, the solution is to know and understand the process of how to get it with the best possible terms. Here are some measures to do before looking for a lender:

Build Rapport Even Before The Loan Is Required

Establishing relationship with people at the lending company prior to the business actually needing a loan is essential. Allow main contacts to become familiar with your business prior to asking for anything. People conduct business with people they have knowledge of and have trust in, lenders operate similarly.

Determine What The Money Is For

Getting a business loan is either for a good or bad reason, so identify what you really need the money for. Good reasons, for instance include funding business equipment, software development for long-term use, or for huge sales variances that’s seasonal. Bad reasons on the other hand include office or business build outs, funding losses that are ongoing or obtaining assets that are not essential to the business.

Determine the Amount of Money Needed by the Business

Majority of small scale businesses don’t ask get loans large enough for the business to use. Undervaluing the quantity of money could head towards setbacks with a lack of or insufficient working capital. Conversely, overvaluing could make lenders have reservations about the assumptions as well as the credibility of the proprietor of the business. Ensure that your budget is well-though-out and well-planned and is reinforced by financial predictions, such as statements on revenue and loss and flow of cash, that is justifiable and shows that the thorough study was carried out.

Identify The Credit Score

Lenders look into the credit scores as a manner of evaluating the reliability and credibility of the borrower. It is imperative to find out what lenders seek and how the credit scores associate to those expectations.

  • A credit score over 650-700 is regarded as acceptable, however doesn’t assure a loan. Majority of lenders approve of credit scores that are at least in the range of 700-800.
  • Payments of personal debt must not go over 33% of the total gross monthly income.
  • Lenders grant working capital loans as well as term loans that are unsecured to businesses that are in operation for more than 2 years and hold a reliable trace of inbound accounts receivables.
  • The greater the margin of operating cash, the greater the possibility is for a business to withstand slower conditions of the market as well as guarantee long-standing survival and progress. Majority of lenders, in the concluding assessment, grant loans to businesses based on their flow of money as it determines and gauges the capacity of the business to successfully pay off the loan.