3 Reasons Why Weddings are So Expensive

Beach Wedding Ceremony during Daytime

Summer is in full swing. While weddings occur all throughout the year, summer seems to be a popular time for two people to tie the knot.

Many of us attend a wedding with the assumption that we are celebrating friends or family, but do we really know the costs behind it all? Weddings have been getting more and more expensive each year. As someone who has been to a number of weddings and is currently planning one, I can tell you 3 reasons why weddings are so expensive.

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Loans for Small Businesses; How Entrepreneurs Can Grow Their Businesses While Maintaining Ownership

Small business loans or SMB loans as the experts like to call it, is a good start to a future mega company. However, too many such companies have their founding CEOsdethroned or worse forced out of the entire system as such owners were unable to properly maintain their loans and/or sold out too much equity.

While it may be inappropriate to mention specifics, we’d take a quick scan across the causes of such situations and see how to remedy them.

It’s common for small businesses to take a low-value loan and assume it would be easy to offset once the business starts returning. Since the title ‘small business’ is used to describe a startup, not the entire scope of the business, a plot twist may happen as juicy opportunities may appear, and an enterprising individual won’t be able to look away from such.

The downside to this is that: as erupting opportunities keep demanding trial funds, it may be unable give instant returns to offset the loan and thereby prompt your funding institution to take financially disadvantageous actions against you. This could easily circle down into a cascade that leads to you losing your business.

On the other hand, ownership can also be lost by carelessly selling company shares and equity in a desperate effort to financially accommodate the coming growth.

To make sure you and your business are safe from such dire situations, here are key steps to follow.

Know the Legal Expanse Your Financier Is Allowed to Go and Work with That in Mind
Thankfully we are past the time when civil debts like that from an SMB loancan hand you a jail term, however, there are still drastic measures a financial institution can take against its debtors but then again there are ways to maneuver it.

So first off; know how your lender handles situations like this, so you’d have equivalent countermeasures to keep yourself from losing your business.
For instance, you can modify your loan or negotiate your credit card interest rates with your bank.

Avoid Self-Funding
So your SMB loans had gotten you halfway there and you feel your income should do the rest?
Well,

You might be right, or wrong, and if you are wrong, you might have accidentally drowned yourself, as your business might have lost its remarkable prospects, therefore, putting you at a disadvantage on the negotiating tables with your financial institution.

Instead of walking through this myriad of risks, why not just walk around it?

Try a convertible bond instead, it has a feature of delaying the valuation of your business until a prominent investing group buys into it, or better still a try a flexible line of credit Loan

Don’t Give Out Too Much Equity

Agreeably so, self-funding is not the best for a startup business, as the startup may actually drown in its own insufficiency before it can rise at all. However, giving out too much ownership by equity could totally do the same thing, but at a later time.

Your ideal investor may approach you with a plain intent of taking a chunk of ownership and leaving, but seeing you open so much to acquisition could send such investor a message of possibly owning the business by himself in the future, and gradually working towards that.

Final Thoughts
Starting a business is not as easy as the popular planning and executing theory had suggested, there are lots of risks, and uncertainty involved. Therefore, there has to be a critical calculation of how the business would run, starting from its inception, location, funding choices and how to pay back.

In fact, to express its consequentiality, some financial experts would advise you have a single source of fund for your business and peripheral requirements. This is to make sure all efforts are put into only one possibility because paying attention to several alternatives may result in not really following any to the end.

However, this theory is under constant debate with adherents of the regular ‘several choices’ theory, because there’s no way to be entirely certain that the lone standing choice will pull through, and if that fails, the business ultimately fails as well.

The simple and most logical advice for a small business loan is a flexible line of credit loan. This is because you’d have cash flow as needed and you cease to pay interests while your credit card is not under use, besides there are several other alternatives if your credit score isn’t so sound.

Thanks for reading.
Let’s know what you think in the comments section provided below.

How to Budget for Your Next Car in 3 Steps

If you’re in the market for a new car, then you’ll want to create a budget, whether you’re saving up for the purchase, you’ve already got the cash handy or you’re going to need a loan. Here’s how to budget for your next car, no matter your situation.

Step 1. Create a Budget

The first step when creating a budget for your next car is to look at your current budget. Don’t have one? Now is the perfect time to start budgeting. A good way is to budget according to the timing of your wage. If your wage is paid fortnightly, then it’s a good idea to create a fortnightly budget. If it’s paid monthly, create a monthly budget. This simply makes the process a little easier. There are also many budgeting apps to help you.

Start by downloading a budgeting app, or create a humble spreadsheet and list all of your current expenses. Then open your online banking accounts and add in all of your expenses over the past fortnight or more and organise them into categories, such as home improvements/maintenance, work expenses, internet, groceries, etc. From there you will know exactly what you’re spending now and what you can afford to save.

Step 2. Consider Your Purchase

The next step is to pick your car. You’ll want to come up with a list of needs and potentially a list of wants (if your budget allows it). Do your research first and take a look at what vehicles on the market are currently selling for online and in your area. You’ll also need to decide whether you want to buy new or used. Buying used is always the better option on a budget but this is something you’ll need to decide for yourself. Create a list of cars that fit the bill (your needs and wants list as well as your budget).

Step 3. Budget Accordingly

Now that you know how much money you have left over each pay and you know what type of car you’re going to buy, you’ll need to budget accordingly. If you’re going to save up for a car, then you’ll need to create a budget to set aside money on a regular basis. You’ll also need to consider your timeline and how long you can realistically go without needing the new car. Will you be taking the bus to work? Or are you still able to get by driving your old car until you can afford to upgrade?

If you’re in need of a loan, then you’ll want to do your research and consider different lenders. It’s not always the best option to get a loan through your current bank or financial institution. Oftentimes, it pays to look elsewhere. You’ll also need to factor in the loan to your budget and come up with a payment plan. Don’t simply make the minimum repayments. You can always save a lot of money by paying more on top of the minimum repayments, so make sure you choose a loan that allows you to do this.

Budget Friendly Halloween Costume Ideas

Whether you are an adult or kid, most Americans love celebrating Halloween.  While many kids focus on their candy hauls, adults usually have a party or celebration to attend.  Between purchasing candy, pumpkins and a costume, Halloween can get expensive quick.  I’ll share a few budget friendly Halloween costume ideas for this upcoming year.

JAKE FROM STATE FARM

Most of us are familiar with the humorous State Farm commercials featuring a guy named Jake.  Jake is on the phone with a client when he is asked by the guy’s wife who he is.  Needless to say the costume is a cultural icon and can be made very cheap.Image result for jake from state farm

All you need to complete the outfit is a pair of khakis, a red polo, and outfit it with a name tag.  Just like that you have a budget friendly Halloween costume.  It takes nothing more than simply rummaging through one’s closet to find the necessary items.

A HUNTER

Do you hunt or know someone who does?  If so, dressing up as a hunter can be an easy budget friendly Halloween costume idea.  All you need is some hunting clothing, a little face paint and a toy gun or bow to top it all off.  When it’s all said and done you can complete this ensemble for the price of the toy, but you might even have that as well.

GHOST

Nothing screams Halloween more than the classic costume of a ghost.  While it isn’t the fanciest option, it is a timeless classic that many will be able to relate with.  Do you have an old white bed sheet laying around your house?  If so, then you have a costume idea.

Simply take the bed sheet and cut some holes in it for you to see through.  You can also go ahead and cut a slit out for the mouth as well and complete with any additional accessories you see fit.

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CONCLUSION

Halloween doesn’t have to be an expensive holiday like most have become in recent years.  Some families have many kids to dress up for the festivities.  That can become quite expensive.  It’s a time for kids to be kids and enjoy satisfying their sweet tooth.

You might even be able to recycle a friend’s old Halloween costume he or she wore last year or many years ago.  Do you have any additional ideas for budget friendly Halloween costume ideas?  If so, comment below and share.

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

WHAT COULD YOU DO IF YOU WON THE $1.6 BILLION MEGA MILLIONS JACKPOT?

The drawing for the largest jackpot prize ever was held last night.  One lucky ticket was sold in the great state of South Carolina.  Assuming the winning ticket wasn’t part of an office pool, the winner will walk away with over a $900 million check if they decide to take the cash payout.

Image result for what could you do if you won the lottery

 

 

Many of us had quick dreams of what we would do if we had one.  Buy an expensive car, donate to charity, move to paradise.  These were a few of the things that ran through the minds of the individuals who played.  However, those dreams were abruptly ended this morning when the tickets were checked.

YOU COULD GO ABOUT THINGS AS NORMAL

If someone wins the lottery the first thing many of them say they’ll do is quit their job.  While this sounds good on paper it could bring about additional life stresses.  For example, you’ll have to worry about getting healthcare coverage and the structure of your day might fall apart.

Psychologists have said it is important to keep things as normal as possible after a big win like this.  Immediate changes could bring about results you hadn’t planned on.

YOU COULD PURSUE A PASSION

If you are miserable at your current job, you can always have the opportunity to quit.  Like I said previously, don’t make any rash decisions when it comes to this, but it does present you with an option to pursue your passion.

After winning almost a billion dollars you in essence can put the worry of money on the back burner.  If you enjoy painting, be a painter.  If you enjoy volunteering, make that your life’s goal.  The point is now you have the chance to pursue a life where money isn’t a byproduct.

YOU COULD GO ON A SPENDING SPREE

We’ve all heard the stories about people going broke after winning the lottery.  Most of the time those stories center around individuals who win a million or ten million in winnings.  With over $900 million in winnings, you shouldn’t have to worry about such an event.

You now have the chance to build that dream house you’ve always wanted and drive luxury cars.  You can travel to exotic places for weeks or months at a time.

CONCLUSION

The possibility for the things you could do if you won the $1.6 billion Mega Millions jackpot are endless.  You could do any of the three things above, or a combination of all of them.  Now back to reality.

You didn’t win the Mega Millions.  You still have bills to pay.  You still have to go to work.  Life is the same as it was yesterday.  There is absolutely nothing wrong with that.  I woke up this morning no different than yesterday.  I continue to budget on a daily basis, save for retirement, and enjoy all of the blessings I currently have in my life.  You should too.

Budget Smart, Invest Wise

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Buy Once Cry Once Mentality in Budgeting

Most believe that the purpose of budgeting is to make sure you have your finances in order.  You take what you make and from that you monitor what you spend.  Many try to find out how to reduce their expenses by as much as possible.  Is that the best way?

WHAT IS THE BUY ONCE CRY ONCE MENTALITY

Buy once cry once simply means valuing quality over price.  It means that you can purchase something one time, and it will last forever or for a very long time.  I understand the importance of cutting corners here and there to save a buck, I used to be that type of person, but the buy once cry once mentality is now ingrained in me.

For example, instead of buying a cheap winter jacket for $20 with a no name brand, look at purchasing something from a quality brand.  Yes, it might cost five times as much, but chances are it will easily last you five times longer and you’ll be happier with it in the end.

Image result for buy once cry once mentality in budgeting

Another example would be buying an expensive cooler.  Many high end coolers have recently flooded the market, but the appeal in them comes from their longevity.  You buy one of these coolers once (cry because of the high price) and you never have to purchase another cooler again.

BUY ONCE CRY ONCE MENTALITY IN BUDGETING

So now that we have wrapped our heads around the buy once cry once mentality, how does it fit into budgeting?

If you go prescribe to this mantra, then you know your budget is going to take quite a hit.  After all, paying for quality is nothing new.  In terms of budgeting, plan on this expense being a once a year expenditure.  For example, if you are buying a new winter coat, allot yourself extra money around the November/December time frame in your budget to accommodate the extra expense.

Think of it this way, a one time expense for a quality item can easily turn out to be more affordable over time then having to budget to purchase that particular item, of lesser quality, on a yearly basis.

CONCLUSION

Shifting your mind to purchasing something based on quality over price can reap many financial benefits in the future for oneself.  The buy once cry once mentality in budgeting may be hard to grasp at first, but once you do I can assure you that you’ll ultimately be satisfied.  By creating a free monthly budget, you too can be on your way to financial independence.  

Budget Smart, Invest Wise

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

What Should a Millennial Spend on Rent

Rents have been steadily increasing throughout the United States over the past decade.  Ever since the financial crisis, people have somewhat shied away from home ownership and opted to rent.  With the demand for rentals on the rise, a sharp increase in monthly rents has been a clear side effect.  The old rule of thumb used to be 30% of one’s income should be spent on rent; however, we are now seeing a burden like never before.  What should a millennial spend on rent?  The simple answer is as little as possible.Image result for what should a millennial spend on rent

Millennial’s are those born from the late 1980’s to the early 2000’s depending on who you ask.  These individuals tend to have a high burden of student loan debt, which makes it all the more concerning that they are spending high amounts on their monthly rent.  A recent report came out showing that millennial’s will spend close to six figures, yes, $100,000 on rent before they turn 30.  That is a staggering amount considering that most are also in the process of trying to pay off student loan debt.

3 WAYS TO NOT SPEND 6 FIGURES ON RENT BEFORE 30

  1. Get a roommate.  Sharing a two bedroom with a friend is a simple and easy way to save money every month.  Sure two bedrooms cost more than a one bedroom, but when you split it two ways, it comes out to about a 30% savings versus living on your own.  This isn’t a long term solution, but it is a good way to free up additional income every month.
  2. Move in with a significant other.  While some will shy away from this advice, there are many benefits to doing so.  I knew a couple who had to live apart until the day they were married for various reasons.  They chose to do this in order to respect the wishes of others.  However, they were basically spending an extra $1000 a month on an additional apartment that got little to no use, all to please a few.  They could have used that money to build up an emergency fund or increase their down payment on a future house.
  3. Buy a house.  While buying a house requires more responsibility and obligations than renting, it is also a good choice to lower your monthly expenses and build equity.  For example, a $200,000 loan on a property with 20% down will give someone a monthly payment of approximately $1250 a month.  Depending on the area of the country you live in, it will almost certainly be cheaper than paying someone else to rent.

CONCLUSION

While some see a benefit to renting, there are also many drawbacks financially.  Although we can’t exactly put into numbers what should a millennial spend on rent, there are ways to reduce your monthly expenses.  Whether you are able to implement one of the solutions above into your situation or not, living costs will be your largest expense every month.

Budget Smart, Invest Wise