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The Dangers of Borrowing Money

Virtually everyone has found themselves in a sticky financial situation. Unfortunately, it can happen to even the best of us. Sometimes emergencies happen, unexpected events take place, and without the proper savings, these occurrences can seriously disrupt our budgets and financial health. In cases like the aforementioned, the temptation to borrow money from a relative, friend, or financial institution can be great. While borrowing money has helped people in certain situations, an awareness of the potential and probable dangers is still paramount.

Interest Rates Can Be Astronomical

Assuming that an individual does not receive a loan from a relative or friend, they are almost guaranteed to owe interest on top of the original amount of borrowed funds, affirms Credit. When lending services loan money to customers, they are not doing it to help the person in need. Lending services are loaning out money to help their own company and make a profit. Therefore, in many scenarios, borrowing money can be even costlier than simply going without whatever the borrowed funds were intended for.

Nine times out to ten, lending services are not the best places to seek financial loans. It is almost always better to seek out help from a family member or trusted ally. However, even this can come with potential risks and pitfalls.

Personal Relationships May Experience Tension

While borrowing money from personal friends and relatives comes with less financial risk, the act can potentially breed tension within relationships between loved ones. Most people loan money with the expectation that they will be paid back, preferably within a certain time period. Issues definitely have the potential to arise if someone is told they will be paid by within a certain time period and then it does not happen.

Therefore, Credit furthermore suggests for both parties to have written agreements whenever borrowing money occurs. Although some people may view the aforementioned agreements as unnecessary, written terms can ensure that both parties are clear and aware of each other’s expectations. A written agreement can also serve as a great reference in case one or both people become confused or uncertain of the original terms surrounding the borrowed capital.

In the best of situations, a person who borrows money from his or her relatives or friends pays back the money within the agreed upon time. Unfortunately, not all scenarios play out as they ought to. Some people borrow money from loved ones without ever intending to pay it back. Other individuals borrow funds with the intention of returning them at a later date, only to find out that they can’t do so for whatever reason. Each of the foregoing instances is very problematic and can engender serious issues. Depending on the situation, relatives or friends may be within their rights to sue the person who has borrowed money and failed to pay it back.

A Final Word

The preceding, potential circumstances are why each person should tread carefully regarding borrowing money. Sometimes going without something is better than finding oneself in massive debt or having a treasured relationship ruined.

Authored by Gabrielle Seunagal

How to Convince Your Boss to Give You a Payraise

Virtually everyone would love to receive a pay raise from their employer. Whether or not said raise is deserved or feasible depends upon many factors and circumstances. However, there are still certain steps that employees should take when they are pondering asking for a salary increase.

Consider the Value You Bring to the Company

Like virtually everything else in life, a pay raise has to be earned. The odds of employees successfully receiving higher pay from their boss is almost zero to none if the employee is unable to effectively show how their value or work for the company has increased since being hired. Fast Company furthermore affirms that when asking for a pay raise, the numbers make all the difference in the world. Contributions to the company’s financial growth, salary rates of other colleagues, and profit numbers engendered by one’s work can greatly impact whether or not an employer feels inclined to honor the request of an employee who desires higher pay.

Pick the Right Time and Place

Similarly to an employee’s company value, the time and place which in they decide to ask their boss for a salary increase is a considerable, determining factor. Although seemingly apparent, workers should abstain from asking their employer for pay raises in front of other colleagues or at a time where the employer appears busy, frustrated, or otherwise preoccupied. Requesting a salary increase at the wrong time can result in a resounding no, even if the answer might have been yes under different circumstances. The right time and place are equally as important as the ability to present the numbers.

Ultimately, each employee will have to make the judgment call regarding the best time to request a pay raise from their boss. However, setting up a meeting is arguably one of the most appropriate occasions to ask for a salary increase. Not only does this circumvent the employer being busy or preoccupied with other matters, but it also conveys professionalism. During the meeting, employers should preferably come with a portfolio showcasing the aforementioned numbers and anything else which may help their cause in terms of securing their desired pay raise.

Always Maintain Respect and Professionalism

No hardworking person enjoys being turned down for a pay raise, but unfortunately, it still occurs sometimes. An employer may decline a worker’s request for a salary increase for multiple reasons. Sometimes the pay raise may simply supersede the company’s budget. In other situations, the boss may simply feel as though the worker requesting a raise has not earned it or they just may feel like saying no. Regardless of the outcome, the employee still has a duty to remain respectful and professional at all times. Whether he or she is told yes or no, the meeting should always end with a handshake and a ‘thank you for your time.’

In the event that an employee is turned down for a raise, they will have to decide whether or not they wish to continue working for the current company. If so, they should continue performing their duties to the best of their ability. If not, the employee then has the responsibility to respectfully turn in their two week’s notice to the boss.

Authored by Gabrielle Seunagal

 

Important Things To Do Before Retiring

As people gradually enter various stages of their later life, they may begin to consider the merits of retirement. While some individuals decide to keep working, others feel as though they have worked for long enough and are ready to retire. However, before one enters retirement, there are some very important things they need to do.

Make Sure You Have Enough Money to Retire

The desire to retire from work is understandable, especially as people get older. However, ensuring that one has enough funds is absolutely paramount. According to The Balance, retirees should have enough capital to maintain their current lifestyle. People who are looking to retire should also be able to cover expenses such as car and house maintenance, utilities, and any unforeseen financial emergencies. In many cases, people spend years, if not decades saving up for retirement. One of the worst things in the world would be to retire and then abruptly have to re-enter the workforce due to depleted funds.

Sitting down with a financial adviser prior to retirement is also recommended.

Decide What to Do During Your Retirement

One of the many upsides of work is that it provides structure. Many people wake up in the mornings, go to bed in the evenings, and schedule the activities of their day around their professional duties. Structure comes with both advantages and disadvantages, however, many factors change after an individual makes the decision to retire.

Gone are the days of having to abide by a certain timeframe or schedule. Theoretically, a retired person can do whatever they want to do with their day, so long as they are able to financially support themselves. This is where hobbies and interests come in. Many retirees may decide to take a class, travel, or otherwise engage in activities which they couldn’t partake in during their working years.

Regardless of what retirees decide to do during their new phase of life, having interests and passions is so important. The pitfalls of simply sitting at home all day and doing nothing are well documented. Retirees should make it a point to frequently leave their homes, engage with other people, and make sure that their bodies and minds remain active. Exercise and volunteer work are some productive and affordable activities for retired persons to consider.

A Final Word

Retirement has always been meant to be a time of relaxation, reflection, and hopefully growth. Although the majority of retirees are older people, there is always more room for development. With the proper financial planning, retirement can be an amazing, enriching part of life. Ultimately, each person will have to make the decision as to whether or not he or she believes themselves to be ready and properly prepared for retirement.

If you are retired, what steps did you take to prepare for this new phase of life? If you are still in the workforce, are you considering retirement at a later date? If so, which course of action are you embarking upon to get ready for life as a retiree? \

Authored by Gabrielle Seunagal

The Benefits of Multiple Income Streams

Any individual who wishes to achieve financial health must first obtain multiple streams of income. In business and in life, a singular source of revenue is simply not enough. Many people work as employees for various businesses or corporations. They are generally paid a salary which allows them to live (somewhat) comfortably. More often than not, so long as working people are able to pay the bills, they have no other financial concerns. However, what appears to be a safety net can, and sometimes does, break and leave the once safe person plummeting into financial peril.

Multiple Income Streams Counteract Finacial Loss

Turnover is a reality of the professional world. Not every person who is hired to work for a certain company or perform a certain task will retain that position for the rest of their lives. In many cases, they will not. Sometimes, the individual at hand will be terminated or otherwise laid off for whatever reason. Regardless, as pointed out by Business Insider, a person who relies on an exclusive stream of income, only to have it evaporate, will then be faced with wondering how to pay bills, put food on the table, and have a place to call home.

However, an individual with more than one source of revenue will remain considerably better off, even if one stream lessens or disappears altogether. There are several ways to engender multiple sources of capital including, but certainly not limited to, making fruitful, wise investments, freelancing on platforms like Upwork, or even setting up side gigs, such as driving for Lyft or Uber, or renting out space in your home on Airbnb. There are myriad opportunities and options for those who seek them; each and every adult owes it to themselves to take every possible chance to strengthen their financial security and counteract any future losses.

Multiple Income Streams Boost Well Roundness

Well-rounded people tend to fare well, especially in business. More often than not, individuals who are well-rounded must market their skills or otherwise prove themselves in order to profit financially. However, a person with multiple streams of income is more likely to be educated and well-versed in a variety of areas, as opposed to their less diverse counterparts.

Most people work to earn capital and then use said capital to make purchases. While certain purchase, such as groceries, clothing, personal care items, etc, are necessary for basic living, a percentage of one’s revenue should go towards creating new streams of income. Sometimes, this can be as simple as investing in certain stocks, bonds, or mutual funds. In other cases, an individual might take a class so that he or she can learn a new skill and later market that skill to earn a profit.

There are always ways to diversify revenue streams if one is creative enough.

A Final Word

The world is changing each and every day. The most successful people are usually the ones who can easily adapt to change. Financially speaking, one of the best methods of adaption is to always have the safety net of multiple income streams.

What to Do If You’re Having Problems Paying a Payday Loan Back

There are many people who take out a payday loan in good faith, with the full intention of paying it back as they should. However, there are just as many who have something happen that prevents them from meeting that obligation. Then there are a few who feel they’ve been treated rather unfairly due to high fees and other expenditures in regards to the loan. Now, the worst thing a consumer can do is try to ignore the loan. You took it out, so you owe it. If you’re having real financial struggles, then you need to talk to the lender and seek out a resolution that will work between the two of you. There are other steps you can take as well, and we will discuss these for you below.

Steps to Take When You Can’t Repay Your Payday Loan

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While everyone’s situation is different, the following advice can keep your situation from worsening. Remember, ignoring a debt isn’t going to solve your problem, it will only worsen it and can actually lead to legal troubles as well. Allow these strategies to be your guide and don’t be afraid to follow through on one or several of them.

When should you consider shaving back on expenses?

Of course, if you are struggling to pay on your payday loan then you need to cut back on what you’re spending. You need to figure out if what you’re spending your money on are necessities or just wants. You have to learn how to pinpoint priorities to keep yourself on track and avoid pitfalls. If you see a financial problem looming that is going to impact your ability to pay on a loan, then of course you need to immediately speak with someone about changing your repayment date, or doing a deferment.

When should you think about cancelling your recurring payment?

If you reach a stage where you can’t afford to pay for groceries, or keep the lights on because you have a payday loan you’re trying to take care of then it is time to consider cancelling the payment. You need to be able to get the essentials for daily life, like:

  • Rent
  • Food
  • Utilities
  • Transportation
  • Medication

If you took out a payday loan at your credit union then the process of cancelling it isn’t as complex as it is if you go to a unknown payday loan lender. A financial institution offers more flexibility. You do need to call a few days ahead of the scheduled payment, and make sure you have a new date and time to offer to start the repayment back up again. Some lenders will continue to charge you interest though, so there are several areas to look into. Still, a reprieve like this can really help a lot.

When should you consult with a free debt adviser or counselor? 

When you’re struggling with bills and you’re trying to develop a proper budget plan to live more wholesomely a free debt adviser can help. There are many who are more than willing to help guide you and put you on the right path. If you follow the advise given then you can begin to get control of your debt and gain relief from financial pressures. You’ll learn how you can start a savings plan, though it might be small at first. You’ll also learn how important it is to build an emergency fund. Your debt adviser will work with you every step of the way until you feel more secure and capable.

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The main things you should learn from a debt adviser involve developing a debt repayment strategy and a savings plan. You should be able to easily map out a plan after several meetings with a financial counselor. The bottom line is sticking to it so you can continue developing the proper financial habits.