Tag Archives: capital

An Overview of Good Debt

The word “debt” generally has negative connotations and understandably so. Debt’s adverse impacts are extremely well-documented; it can also take years or even decades before people are able to escape its clutches. Individuals who go into debt at very young ages can often face ruined financial futures ruined and poverty. For these reasons and more, debt is overwhelmingly viewed as something to be avoided at all costs.

What Qualifies as Good Debt?

The concept of “good debt” remains highly debatable. There are many people who view debt, in any form, as negative and something to steer clear of. However, various financial experts do believe that certain types of debt can, in fact, qualify as “good debt.”

Higher Education

First and foremost comes higher education which is generally associated with going to college or university. Many individuals also associate a degree with better job opportunities and a higher quality of living. Also, it’s often stated that degrees will pay for themselves and pay for the subsequent student loans which many young adults take out in order to pursue higher education.

However, good debt is not without its risks. While many people view higher education as a source of good debt, the “good” part is contingent upon several factors. The economy, field of study, and overall flexibility of the individual at hand each play a role in whether or not student loans truly turn out to be good debt or bad debt. A rough economy can make it difficult for college graduates to find jobs and start paying back their student loans. Likewise, a poor field of study can also complicate the process of making a good living. Finally, individuals fresh out of university may have to accept entry-level jobs and work their way up to more lucrative prospects.

Entrepreneurship

As the job market becomes more and more competitive, many people are opting into entrepreneurship and starting their own enterprises. However, starting a business requires money. While aspiring entrepreneurs can seek financial backing from angel investors, venture capitalists, or even family/friends, many choose to take out loans from various institutions.

The benefits of being in business for oneself are overwhelming. Autonomy, independence, and profit growth are just the tip of the iceberg. However, these benefits only come to fruition if the enterprise is successful. If a business fails, the borrower will not only have to pay back the debt they owed (in addition to any subsequent interest), but they may also incur serious financial hardships. Like higher education, good debt in the form of entrepreneurship is a double-edged sword.

A Forewarning

At the end of the day, debt is something which should be avoided, if at all possible. While certain types of debt do have the potential to yield benefits, there are never any guarantees. Borrowing capital to pursue ventures is a trap which countless individuals have fallen into. It has worked out for some and devastated others. Ultimately, everyone has to make their own financial decisions and determine whether or not they are willing to take on debt.

 

Authored by Gabrielle Renee Seunagal

How to Purchase an Existing Business

As entrepreneurship and self-employment continue to rise, more and more people are looking for ways to go into business for themselves. Sometimes this is done via freelancing, entering the gig economy, starting a business, or even purchasing a business. With the proper execution, buying an already existing enterprise can be beneficial; however, without the required steps and precautions, such a purchase can be financially devastating.

Thankfully, the following steps will prove to be incredibly helpful and advantageous for anyone who is considering the prospect of purchasing an already existing business.

Sit Down with a Professional Business Broker

Even the most lucrative business people should consult the top professionals whenever they’re considering purchasing an enterprise, explains Legal Zoom. There are several benefits to consulting a business broker, which include overall advice and critical information about the enterprise. However, business brokers don’t provide services for free; making sure that the chosen broker is legitimate and knowledgeable of what they’re talking about is extremely important for the sake of your time and money.

Thoroughly Investigate the Existing Business

Even with the best advice from the most seasoned business broker, investigating and looking into the existing business is incredibly important before any money is spent. Now, it’s important to understand that doing your due diligence prior to purchasing an enterprise can take weeks, if not months. That’s OK; a thorough understanding of the soon-to-be-purchased enterprise is critical before deciding to make any payments.

Other important ways of investigating the existing enterprise include looking into their credit history, comparing the enterprise to other competitors, and finally, getting feedback from the current owner, employees, and customers. Garnering perspectives and intel from the aforementioned sources can also provide really unique viewpoints which cannot be found on the internet or from people who lack close ties to the enterprise.

Be Sure the Business is the Right Fit for You

Consulting a business broker and investigating the ins and outs of an enterprise are definitely the right steps for any person who is serious about making a purchase. However, of equal importance is complete certainty that owning this particular business is the right call.

A solid business plan to keep the enterprise running, management skills, and knowledge to assume complete responsibility for the enterprise after the purchase are so critical. Therefore, Wealth Pilgrim suggests that anyone who is considering purchasing a new business should sit down with people who are close to them and get honest, constructive feedback.

A Final Word

Like all professional decisions, purchasing an already existing business is a pretty big deal. This is why each individual should be sure that they’re completely ready on all fronts before buying an enterprise; once this decision is made, it cannot be reversed or otherwise undone. Proceed with awareness, vigilance, and don’t hesitate to take as much time as you need before closing the deal.

 

Authored by Gabrielle Seunagal

Financial Advice for Immigrants

Many individuals who immigrate to various countries have experiences and journies which differ from natives. This is not to say that immigrants cannot be successful and prosperous; however, the playing field is somewhat different. Having the right information and the proper financial awareness always comes in handy. There have been countless immigrants who have been successful in their lives and endeavors after moving to new countries.

The following financial advice will furthermore ensure that more and more immigrants get to continue on the same path as those before them.

Be Open to Working Multiple Jobs

As documented by Mint Life, many people who emigrate to new countries may not be able to sufficiently meet their needs with one, singular day job. Thankfully, in this day and age, there are many options for people who are looking to diversify their income and revenue streams. In addition to working a day job, immigrants may also benefit from marketing their other skills within the freelance and gig economy. Platforms like Upwork, Fiverr, and Freelancer are amazing and can be great for immigrants to supplement their income. Some people even become so proficient within the freelance market that they are able to quit their day jobs and work full time within the gig economy.

Do Not Spend More Money than You Actually Have

One of the most critical factors for success is economic security and prosperity; this is especially applicable to individuals who happen to be immigrants. Therefore, immigrants should proceed with extreme caution regarding credit cards or even borrowing money from institutions which will certainly expect a return on the borrowed funds (coupled with likely, subsequent interest fees).

The Luxe Strategist strongly recommends immigrants to live within their means and abstain from spending money which they do not currently have. This means that immigrants who are struggling financially should seek legal means of increasing their income and not apply for credit cards or borrow money from banks or agencies.

Always Keep a Watchful Eye Out for Opportunities

One of the greatest things about immigrating to a new country is the plethora of opportunities which come with hard work. Giving one’s best effort and getting the job done is always important; simultaneously, immigrants should also keep a watchful eye out for the opportunities which may be around them. Opportunities could manifest as a potential promotion at work, a new client within the gig economy, etc. The specific possibilities will vary for different immigrants, however, the opportunities are always out there.

A Final Word

Never underestimate the power and efficiency of hard work. There have been many immigrants who have worked their way up and created amazing lives for themselves and their families. Anything is possible with the determination to succeed combined with the will to put in the work. Moreover, immigrants will greatly benefit from working multiple jobs, living within their means, and always keeping an eye out for opportunities which may present themselves.

There will be good days and bad days. Never give up. Always keep pushing forward. When there’s a will, there’s a way.

 

Authored by Gabrielle Seunagal

Financial Advice for Senior Citizens

As people get older in age, they may believe that their acquired money habits will continue to serve them well. While decades of proper financial choices certainly have their merits, there are still particular strategies which senior citizens can benefit from.

Senior citizens will inevitably witness changes in their lifestyles, circumstances, and other factors; this is natural and to be expected. Therefore, proper preparation, acute awareness, and adherence to the forthcoming advice will prove helpful.

Manage Money Conservatively

According to U.S. News, one of the best financial habits for senior citizens is handling their money frugally. Since older adults have lived longer (and likely had exposure to more experiences), chances are that they’ve also accumulated more capital than their younger counterparts. However, with higher amounts of funds comes a greater need for protection.

Many older people may feel compelled to help those who are struggling, especially if they happen to be friends or relatives. While generosity can be great, moderation is paramount. Constantly dishing out funds or always paying someone’s way can backfire. Furthermore, older adults should be careful about loaning out money. Some experts recommend only loaning out funds which one can afford to lose; this is because many people who borrow money are not in the best financial state. Therefore, they may not be able to pay back the borrowed capital in a desirable amount of time…if ever.

It is absolutely imperative for senior citizens to wisely and conservatively manage their money. It will immensely pay off for them.

Shield Yourself from Fraud and Money Scams

Countless research has affirmed that scammers, grifters, and other dishonest individuals view older people as easier targets. This is partially attributed to the fact that these individuals may not be as savvy with technology. There are countless ways in which con artists attempt to steal money; being prepared and guarded is gravely paramount and always an effective safety precaution. Even older people who are never targeted will feel better by simply knowing that they’re covered.

U.S. News advised senior citizens to put certain alerts on their bank accounts, block certain phone numbers, and ensure that credit cards and debit cards are programmed with particular safety features.

Maintain Exceptional Mental Health

As people age chronologically, their bodies follow suit. Consequently, with natural aging comes an increased susceptibility to certain mental ailments such as Alzheimer’s disease, dementia, and the like. However, there are certain steps which can actively combat the likelihood of mental ailments among senior citizens. Regular physical activities, human interactions, and getting out of the house can work wonders.

Believe it or not, the state of one’s mental health greatly impacts their ability to make sound judgment calls, especially when finances are involved. There also exists a documented link between mental fitness and higher amounts of capital. Senior citizens who currently own stock shares, bonds, or otherwise invest in various entities will be particularly in need of exceptional mental capabilities.

A Final Word

Conservatively managing money, having safeguards against fraud, and maintaining exceptional mental health are excellent first steps for senior citizens as they strive to protect and manage the capital which they have earned over the course of their lives. However, some older people may also benefit from contracting the services of a business manager or financial advisor.

Authored by Gabrielle Seunagal

Everything You Need to Know About Hoarding Money

While hoarding money is not really a common phenomenon, it does happen from time to time. Nine times out of ten, distrust, paranoia, and fear are the motivating factors for individuals who willfully chose to hoard cash.

An Overview of Paranoia and Money

Reports from Money Instructor affirm that the decision to hoard money is often indicative of mental health ailments such as obsessive-compulsive disorder. When most people think of someone hoarding cash, they generally imagine a frenzied individual shoving large amounts of bills into mattress holes. While the aforesaid behavior can occur, there are also other prevalent behaviors associated with hoarding money.

For example, people who hoard money are usually very particular, even to a fault, about saving on expenses. Frugality has its merits, but, as the old saying goes, too much of a good thing is never good. Someone who suffers from money-related mental health issues will frantically fret over money spent down to the last cent. They may furthermore refuse to rid themselves of purchased items, even ones that have considerably depreciated or otherwise lost their value.

Unfortunately, money paranoia is not limited to hoarding cash and taking frugality to extreme measures. Individuals who are plighted with money-related mental health issues are moreover likely to retain all purchased possessions, review bank statements on a daily basis, and refuse to use certain resources for fear of “wasting” money. Chronic money hoarders may even cheat or swindle their relatives and friends for the sake of preserving or sustaining capital.

What Prompts Someone to Hoard Money?

Although one certain cause of hoarding has yet to be found, Psychology Today affirms that there are certain factors and circumstances which can increase the likelihood and susceptibility to hoarding. For instance, individuals who struggle with decision-making, have undergone past trauma, or have relatives who hoard are more probable to become hoarders themselves. Many people who frequently hoard money also usually suffer from variations of anxiety or depression related disorders.

Unfortunately, additional reports from Psychology Today affirm that hoarding can persist as a lifelong ailment. However, there is some light at the end of the tunnel. Treatment options to combat hoarding include cognitive-behavioral therapy, antidepressant prescriptions, and treatment designed to help afflicted individuals make better choices, lessen stress levels, and learn organizational skills. The ultimate goal of professional treatment is to help afflicted individuals feel comfortable with letting certain things go and absolve the need to obsessively hoard money.

A Final Word

Each person has their own unique relationship with money. However, said relationship can become problematic when money management is taken to extreme and unprecedented levels. Paranoia, regardless of its target, is never healthy and should always be remedied when its presence is made apparent.

Overcoming the desire to hoard money and other objects may be tough in the beginning, but with the proper work, time, and treatment, it can be done. Afflicted individuals are furthermore recommended to seek out professional help to combat hoarding as opposed to self-medicating.

Authored by Gabrielle Renee Seunagal