Getting Financially Stable: Everything You Need to Know About Taking Out a Loan

Being optimistic about your finances is only natural. Most people have high hopes concerning their job prospects, lifelong earning capacity and financial management skills. But, reality might have another plan.

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What Is Financial Stability?

 Financial stability is both an objective and subjective quality. The objective standard is having an income that is higher than your expenses. You must make more money than you spend.

But, the subjective character is based on your financial status. Most people will admit that rich people have a different life style than others. For many of them, they can coast for a while before the day of reckoning arrives.

But inevitably, it will arrive. Everyone pays the piper. So, even though the wealthy have a higher income, they also must develop wise management skills. We will discuss a few of these.

Make a Budget

 Musicians practice, athletes practice … pretty much anyone who wants to succeed practices and prepares a plan. How can you control your expenses, when you don’t even know what your credits and debits are? You need to start by making a budget.

Some people don’t want to face financial reality. They want to believe that they are wealthier than they are. We see this a lot with athletes and celebrities. When their salad days are over, they might file for bankruptcy.

If you fail to plan, you plan to fail. = Benjamin Franklin.

Create a budget. If you are continually dipping into your savings, then you know you are not making ends meet. And, something that cannot go on forever, will not go on forever.

Write down your expenses and income. Then, see what your surplus or deficit is. Decide how you are going to make up that deficit.

You might try to add more hours at work. Or, you might consider taking out a personal loan. Saving money requires having higher income than expenses.

Balance Your Cheque Book

 Once you have a planned budget, see how you are doing each month. Balance your cheque book. Many people assume that bankers are never wrong. But, they do make mistakes.

After balancing your cheque book, you can identify any errors made by your bank. This also gives you a better understanding of your spending habits. You need to know how you spend money before you can improve your money-spending habits.

Count Pennies

 Remember the parable of the grasshopper and the ant. The grasshopper liked to visit the grocery store in the middle of the week and throw large parties. He had a great bar-be-cue, but didn’t produce anything of note.

While, grasshopper partied, ant was working hard, storing up food for winter. Grasshopper wondered why ant worked so hard. Ant told him that when winter arrived, those who stored away wealth would survive. Eventually, winter arrived and ant had plenty of food stored up while grasshopper starved.

How will you reap, when you have not sown? 

Those who save money, count their pennies. If you need help calculating your pennies, then you can use the Acorns App. Financial management has never been easier.

This money management app helps you earn found money, grow your knowledge, invest for your future and spend smarter. It is like having a financial assistant with you all day long. Sometimes, people need a little nudge to improve their saving habits.

Cut Corners

Paying off debt requires both a physical and spiritual commitment. Physically, if you don’t have enough credit, then you need to reduce your debt. You need to cut corners.

Enjoy some home cooking and reduce your visits to five-star restaurants. You might want to watch an old movie on date night. Reduce your expenditures to create a better threshold for your budget.

Find New Income Sources

 Sometimes, debtors need a little financial boost to help them regain their composure. When you are priming a pump, you introduce a similar liquid to draw out the liquid. Find new income sources to increase your cash flow.

After you learn more about personal loans, you can find the best financing means. Use the new funds to pay off the bills with the highest interest rates. Compound interest can quickly drag you underwater, like a drowning swimmer.

Create Rainy Day Fund

 You wear a seat belt just in case you get in an accident. A rainy day fund can help you overcome little glitches in the budgeting process. For example, your rent is probably due the beginning of the month, while your pay cheque arrives every two weeks. Sometimes, these two periods of time don’t mesh perfectly.

Instead of incurring late fees, create an emergency spare cash fund. You might even include a full month’s rent. This ensures that you are always on time.

Landlords and bankers expect you to pay your bills on time. They have a very fine-tuned system that will deposit the funds into their bank accounts immediately. There is a “Domino Effect” when they’re not paid – managers ask where the money is.

A rainy day fund smooths over many rough edges. It can be used to keep everyone happy. Toss a $20 therein when you get paid.

Healthy Financial Management Skills

Changing bad financial management habits can take some time. Psychologists believe that the development of good skills might take at least two weeks of constant repetition. Send yourself an alert from your smart phone, urging you to save more every single day.

After two weeks, there is the hope that this new habit will be well-ingrained. Use a multi-dimensional strategy for regaining financial stability: make a budget, cut costs and find new income sources. Develop healthy financial management skills to pay off your debt. Then, you can sleep better at night.

OLEV Explained

It is quite simply remarkable how the world is progressing. Technology is advancing at such a rapid pace. It is crazy to think about how the world may be ten years from now. Will your pint of milk be delivered by robots? Will your local dealership by selling flying cars? Will your vacation be a trip to Jupiter? Ok, so maybe those examples are a little bit farfetched. However, one innovation you may experience is an online electric vehicle.

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Image by Michael Schwarzenberger from Pixabay

Car Innovation

This is the latest car technology you should be keeping an eye out for. Therefore, whilst Fox Hayes and other dealers may not sell flying cars anytime soon, they may have their hand in online electric vehicles. This is a concept that was only developed in 2010 and has gone from strength-to-strength. Therefore, the progression of online electric vehicles is certainly worth keeping an eye out for.

What is an “online electric vehicle”?

An online electric vehicle can also be abbreviated as an OLEV. Therefore, if you see this shortened version then you know it relates to the same concept. In a nutshell, an online electric vehicle is an electric vehicle yet it differs because it utilises electromagnetic induction. This is a term a lot of you may not be familiar with, and thus to understand an online electric vehicle you need to understand what electromagnetic induction is.

What is electromagnetic induction?

This process involves utilising a conductor across varying magnetic fields. The aim is to create the production of differing voltage. Therefore in the grand scheme of things, this is a theory that revolves around the reaction between an electric circuit and a magnetic field. The outcome will be an electromotive force, also known as an EMF. This force is the voltage that will drive the car forward. This is a theory and a concept that can actually be dated back as far as 1831. However, the theory is one that is only recently being applied to vehicles. The application of electromagnetic induction was pumped into the generator and alike.

The unsuccessful history of the online electric vehicle

As is the case for most inventions, there have been failed attempts before. There are several individuals who attempted to use the electromagnetic induction theory in vehicles before but have not succeeded in doing so. Many, many years a patent was granted for the online electric tramcar. However, in this case, it was not the fact that it did not succeed, it was simply that it never saw the development process. Moreover, approximately 20 years ago or so, the attempt to create an online electric vehicle occurred, yet was unsuccessful because harmful electromagnetic radiation emitted. And as you know; if a product is not safe then it cannot be released.

Are Tax Credits Something You Should be Thinking About? Here’s Everything You Need to Know

Tax credits are a kind of government incentive which aims to reduce the taxpayer’s burden with the intention of supporting certain commercial ventures. This tax obligation is an allowable deduction which a taxpayer is given back from the tax paid within a given period stipulated by the revenue body. The most common tax credit is the one extended to expenses on Research and Development (R&D) activities undertaken by a given business. However, the research and development activities of concern should meet the minimum requirements as stipulated by the government. For instance, in the United States, The research should be innovative and experimental in nature for one to qualify for the 12% R&D tax credit. Basically, there is so much you need to know about this tax aspect and you should consider having a look at an in-depth article about this topic to get a detailed understanding. For now, we are committed to helping you discern whether the tax credit is something you should be thinking about. Here is everything you need to know:

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The nature of tax credits is divided into two broad categories

 Tax credit is divided into refundable and non-refundable credit with each applying in a different setting. The latter is whereby the government will not return your surplus amount but instead, it will be used to offset your pending debts. In case more money is left after paying the debts, the extra is carried forward and it can be used to offset more debts in future.  In the case of the refundable tax credit, the government will return your refundable money after clearing all the debts you might be having.

Tax credit will help   you have more finance at your disposal

 The nature of the refundable tax credit is in such a way that you will get more money after the taxation body has subtracted all the pending tax debt you might be having with it. The remaining amount of money is sent back to you in form of cash and you can use it for your daily operations. Therefore, when you apply for the tax credit, you are likely to have   more cash at a business or personal level which I bet it can help you in one way or another.

There are more than five types of tax credit which you can claim

Majority of the people are only familiar with the R&D tax credit perhaps because it is the most common and the widely advertised one by various agencies. However, there are more others which you can benefit or maybe inform other people so that they can also benefit.  Some of these include the child tax credit, saver’s credit, and many others.  Here is an article which can help you understand the various type of credit taxes which you can claim from the revenue body.  Make sure to understand each and every type of the tax credits stipulated therein so that you can make a wise decision for your subsequent actions.

The Rules for Tax Credits are not the same

 The rules governing each and every type of tax credit will differ from one type of tax credit to another as explained in this site. For instance, the time taken to refund the money for the child tax credit will be different from that of the research and development tax credit. The time required as well as the necessary documentation for launching a claim will also be different. This therefore informs you that you need to familiarize yourself with what entails each and every type of tax credit for you to initiate a viable claim.

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Forgery of documents or inflation of expenses is punishable

 In some case, especially when it comes to the R&D tax credit, some people tend to inflate expenses on their research and development activities with an intention of getting more refundable money. This is extremely dangerous because the revenue body will always carry out an audit after a certain period and the faking of data can easily be identified. This will attract a penalty which in some instances the company of concern can be required to pay twice the amount of the money it had been refunded to it. In United States, the due diligence by the IRS on the amount it has refunded is carried out after every three years in order to identify whether there are irregularities   in the files submitted by all the people who claimed for the refund. Forgery of the documents can also attract a case in the court of law. Generally, as a bottom line, it is advisable to be as honest as possible and also provide as many supporting documents as possible for your claim.

Tax credits are not permanents

 Majority of the tax credits are subject to expiry and therefore the government can discontinue or renew them at its own pleasure.  Discontinuation will mostly occur if the tax credit under concern has achieved the intended purpose and or objective.  It is good to remember that the   tax credit is just one of the many tools used by a government to stimulate an economy and therefore once the stimulation has been achieved, the government of concern   has the freedom to terminate this incentive.

 It is not compulsory to personally do the claim

Few people are aware on the existence of the agencies which can help individuals with the claiming process.  These agencies will do all the hustles for you and you only need to provide them with the necessary documents.  However, you need also to part with a small fee which is variable depending on the agency of concern.  This is actually allowable by the law and you can opt for it if you are the busy type of individual who hardly has enough time to run from one office to another.

With such information, I believe you are in a better position to make a decision on whether tax credits are something you might aspire to pursue in the future.

Three Reasons For Teens to Start Saving

It’s so easy to waste money, even more so when you’re young and are yet to learn the real value of it. But starting young is the key to setting yourself up for success later on, and if you have kids or teens, here are just three reasons it’s worth them saving what they can. It could be money from birthdays and Christmas, pocket money or part time jobs.

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Photo credit

Education

College and university is expensive, and chances are they’ll need to utilise loans and perhaps help from you to pay for things like books, fees and accommodation. But saving up towards education is no bad thing, and if they start a couple of years before they leave they’ll go away with a nice buffer. This can make it easier to afford travelling around the city they’re in, food, socialising and other daily living costs. When teens move away to university, it’s often the first time they’ll get a proper taste of independence, they’ll be managing their own money for the first time. Being equipped with some of their own money can make the process run much more smoothly, and if it’s cash they’ve saved themselves they’re likely to be that bit more careful with it as well.

A car and driving lessons

Being able to drive gives so much independence, and it’s this which teens and young people really crave. Learning to drive, theory tests, practical tests and other extras can really add up, not to mention the purchase and running costs of a car. Saving up before they’re old enough to drive means that once they reach the legal driving age they can book some lessons right away. Or once they pass, they can get themselves a car. Even if they can’t cover these costs completely and you need to foot the rest, it can make things easier for you and using their own savings means they’ll appreciate it more. Being able to drive can also open up the door to more jobs, those that are further away or those that require driving. It could even lead to setting up their own business. You can find finance deals for vans on sites like The Good Van Company so you don’t even need all of the money upfront.

Deposit for a house

Getting onto the property ladder is so worthwhile. Once you move out and start renting, it’s easy to remain stuck in the ‘renting trap.’ You can’t save much money for a deposit as all of your money is being spent on rent and bills. Once they’re working full time but before they move out of the parental home, it’s worth having a chat with teens and young adults about saving for a deposit. Living at home while they save means they’ll reach their goals much more quickly. When they do eventually move, it could be into something of their own rather than it going to a landlord every month.

All of these things can feel like a long way off when your child is in their early teens, but the years fly by. Anything they can save up now can all go towards a brighter future later on.

Driving Up Savings

How will you afford a new car when your old one is clearly on its last legs and unlikely to make it through another MOT? There’s no magic answer of course, just plain, hard saving but saving doesn’t have to take as long as you might think, particularly if you are covering all the bases.

We take a look at some of the most efficient ways to make savings in your life and reach your goals all the quicker.

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Image by Arek Socha from Pixabay

Contrast and Compare

Maybe you’ve gone on price comparison sites because you’ve needed to find the cheapest pet insurance or because you wanted to find an energy tariff that suited your home and family. While this almost certainly helped you find great deals at the time, you’ve never gone back to them. But many of these sites have useful tools that you can use to find the cheapest supermarket in your area for the kind of weekly shop that you do.

Go on them each week to find out where the deals are and to make sure you’re not missing out on great savings.

Don’t neglect your energy tariffs and mobile phone bills though. You might well find a better monthly deal here too by regularly checking in.

Of course, you’ll need to make sure that you set yourself a realistic monthly budget and that you are also setting yourself a budget for savings on top of that.

Loans

It might be that saving up is going to take far too long and your vehicle isn’t going to make it, in which case you might consider a bank loan or something like a https://www.smilecarfinance.co.uk/locations.php.

Whoever you choose to borrow money from, try and opt for a lender with the lowest interest rate and in any case always try and pay back more than the minimum repayment each month to make a real dent in the amount of capital you’re paying off.

Deals

You’ll also need to think about the type of car you’re looking for. Will it be a brand new model, which has the advantage of coming with various warranties or a second-hand version which, though cheaper, will almost certainly have done a few more miles on the clock?

The key is to do some research into the kind of car you want, keeping an open mind if you can, and how much you plan on spending. Find out the going price for year and model you hit on and take this model with you to your nearest dealership.

With any luck you’ll be able to negotiate down to a price that suits everybody but don’t be afraid to walk away if it looks like it’s going too far out of your budget.

When you are planning on buying a new car and you need some help in getting there in terms of cash, then work out a plan that’s going to work out best for you, whether that’s low interest loan or a commitment to save. Stay within budget and you’ll grab yourself a bargain.