Tag Archives: Finances

How to Repay Debt

In the best of worlds, nobody would incur any debts. Unfortunately, there are countless people who are up to their eyeballs in debt. Ideally, incurred debt is something which should be paid off as quickly as possible; yet, many individuals find themselves struggling to pay back the money they owe. The subsequent interest which often accompanies unpaid debt doesn’t make matters any less complicated. Thankfully, there are a variety of strategies which can be employed in order to effectively pay off debt.

Make Ongoing Payments

Indebted individuals have a tendency to avoid their debt. The avoidance is often motivated by dread and reluctance to face the large sums of owed money. However, avoiding the debt will never erase its existence. The only way to free oneself of debt is to make ongoing payments.

In this day and age, merely paying the minimum balance is not going to cut it. Payments should be made as frequently as possible. Each time an indebted individual receives a check, he or she should be putting aside a percentage of funds (or a specific dollar amount) to pay off what they owe. Initially, this can be uncomfortable and may even require some budget modifications. However, repaying debt in a timely manner is always wiser than idly wasting time and allowing interest to accumulate.

Increase Income and Profit

Despite the massive pitfalls of failing to repay debt, a lack of funds is a problem which many people struggle with. Therefore, individuals who literally cannot afford to pay down their debt should strive to increase their income. This can be done via asking for a raise, advancing one’s career, or even starting work in the gig economy or freelance market to create an additional stream of revenue.

Live Within Your Means

Countless people incur debt in their attempts to live above and beyond their means. While this type of money management is irresponsible and reckless, it’s particularly dangerous for individuals who have yet to repay owed funds. Anyone who is struggling with debt should proactively work to lower their expenses; this can almost always be done. Cutting back on unnecessary purchases, eating at home, and limiting entertainment fees are some prime examples of ways to reduce costs. Some people spend their entire lives in debt all because of poor money habits.

Avoiding Debt

Having to repay debt is no fun whatsoever. Debt holds people back from financial success, home ownership, the ability to live independently, and many other opportunities which life has to offer. Those who are able to take advantage of certain opportunities, even in spite of their debt, will not have the same quality of experience as their debt-free counterparts.

To make a long story short, debt should always be avoided. In the event that avoidance is not feasible, repayment should occur as quickly as possible.

 

Authored by Gabrielle Renee Seunagal

How to Take Out a Loan

There are many people who will take out loans in their lifetime. There are many banks, online lenders, and additional financial institutions which have no problem issuing these loans. However, the reality which most individuals fail to understand is that loans almost always come with interest rates.

In other words, not only will people have to pay back the loans, but they will also pay for having to borrow money in the first place. For this reason, it is highly critical for individuals to tread carefully in regards to taking out loans. Thankfully, the following advice will certainly provide some much-needed insight.

Be Sure that It’s What You Truly Need

Virtually everyone stumbles upon a time or situation where they need to have money. However, being in need of funds does not necessarily mean that you should run to your nearest financial institution and seek out a loan. Sometimes, there are other available alternatives, such as dipping into savings or even asking a friend or relative if you can borrow money. However, not everyone has the aforementioned alternative; there are some cases where a loan from a financial institution is the most feasible solution for financial issues. Nevertheless, exhausting all options prior to taking out a loan is always best.

Come with the Necessary Materials

Individuals who require loans from financial institutions will have to complete an application and present official identification, as stated by Pocket Sense. After doing so, the hopeful borrower will also be mandated to show proof of their income. Of course, proof of income is required for the sake of the financial institution; before lenders loan money, they almost always ensure that borrowers have the financial means to pay the loan back, preferably within an allotted amount of time.

People who take out loans should also have a plan for payment. Proof of income is great, but on a practical level, this is not enough. Borrowers should map out exactly how much money they will put towards paying off the loan each week/month. This plan should also fit in with their budget, thus allowing the borrowing to cover their living expenses, put funds into savings, etc. If putting together a clear-cut payment plan is not possible, rethinking the prospect of taking out a loan may be a good idea. After all, fees and interest rates don’t care about personal circumstances or financial hardships.

A Final Word

Taking out loans comes with its own risks and setbacks. There are often many stipulations and strings attached which borrowers fail to realize until after the fact. For these reasons, taking out loans should always be done with extreme caution. Being truly sure that it’s necessary and having a very well thought out payment plan will make a considerable difference.

 

Authored by Gabrielle Renee Seunagal

How to Financially Prepare for a Recession

Nobody likes to think about recessions and all the havoc which they can bring upon a society and to the economy. Nevertheless, many people have lived through and experienced the plights of recessions. Although they take a toll on virtually everyone, members of society who are most vulnerable and least prepared tend to suffer on considerably higher levels. This is what makes financial preparation so absolutely paramount.

Failure to plan is ultimately a plan for failure. However, the following steps will allow people to not only prepare for a recession, but also protect the businesses and funds which they have garnered over the years.

Consistently Save Money

As stated by Money Talks News, constantly putting aside money always make a big difference, but it especially comes in handy during a recession. Financial advisors currently recommend for people to put aside at least six months to one year’s worth of living expenses. This is something which a surprisingly high percentage of people fail to do. Many of them believe that a crisis will not befall them, but a safety net always comes in handy. Consistently saving a certain percentage of funds from each paycheck makes a difference.

Saving money prior to a recession can truly determine the difference between survival and homelessness.

Look Into the Gig Economy

There are many opportunities which exist within the gig economy. Driving for Lyft/Uber, renting out rooms on Airbnb, content writing, graphic design work, and more are all opportunities which people can and should take advantage of. Not only does this allow for individuals to create an additional revenue stream, but funds earned in the gig economy can be put into savings, bills, etc.

Every person will find that money and savings are their greatest economical allies, especially in the face of a pending recession.

Pay off Any Incurred Debts

Another important thing to do in preparation for a recession is paying off debts. No matter the state of the economy, credit card companies will continue to charge interest for unpaid balances. Over time, this can truly chip away at your income; besides, any money which goes towards interest is lost income which could have otherwise gone towards savings or bills. It’s also worth noting that paying interest does not decrease one’s debt, but merely lessens the fees for not paying one’s debt on time.

Money is an incredibly valuable resource; it becomes infinitely more valuable during times when the economy is experiencing a recession. For this reason, everyone should be actively working to become debt-free.

A Final Word

Ideally, people should be saving money, creating additional revenue streams, and paying off debts regardless of whether or not a recession lies in the near future. Being in the strongest financial state is always the best way to set oneself up for success. While economic recessions might prompt stronger precautions, you can never go wrong when you are in good financial health.

 

Authored by Gabrielle Seunagal

How to Earn Income in High School

The benefits of high school students earning income are well documented. Not only does this allow young people to assume responsibility and grow as individuals, but making money also prepares high schoolers for the real world. As adults, young people will have to work and be able to earn enough money to support themselves and provide a suitable, comfortable life.

High schoolers should want to get a head start and moreover, this is something which parents and guardians should encourage. However, there are still certain rules and laws regarding work for underage minors. Learning how to abide by the aforementioned guidelines while simultaneously earning income is guaranteed to set young people up for incredible success.

Look into Working Odd Jobs

Some of the best money making opportunities for young people come in the form of odd jobs, explains Well Kept Wallet. This is attributed to the fact that high schoolers are completely inexperienced with working and must also maintain their academics in school.

Some of the best odd jobs include babysitting, pet sitting, restaurant work, dog walking, washing cars, working in retail, etc. While these jobs don’t necessarily pay the highest fees, they are very educational experiences and breed a strong work ethic. This will prove to be beneficial, especially after high schoolers mature and enter the real world.

Get an Internship

Contrary to popular belief, internships are not mutually exclusive to college students. There are a slew of high school internships which are available for young people. Many of these internships also offer compensation; this can be a great opportunity for students who are eager to learn, grow, and network. There are countless stories of young people getting internships and developing lifelong relationships with impactful mentors.

This is certainly something which success-minded high schoolers should look into.

Look into Entrepreneurship

While many high school students are encouraged to attend college and eventually work a traditional 9 to 5 job, this lifestyle is not for everyone. There are some young people who have the entrepreneurial spirit and they should explore that spirit. Entrepreneur advises students who are interested in starting their own businesses to seek out mentors, involve themselves in extracurricular activities, and familarize themselves with leadership and marketing.

A Final Word

The world we live in is changing and evolving with each passing day. There are many opportunities out there and it’s never too late to get started. Young people who begin earning income while they are still in high school will definitely have an advantage over their peers who fail to make the most of these opportunities.

Parents also play an integral role in the economic success and advancement of their children. While young people can and should do everything in their power to take advantage of opportunities, support and encouragement from parents or guardians will make all the difference in the world.

 

Authored by Gabrielle Seunagal

How to Pick the Right Career

An individual’s chosen career is a life-impacting and monumental decision. The occupation which one chooses will directly affect their income, opportunities, and quality of life. While some individuals naturally come across their careers, other people take more time before discovering their desired occupations. Both scenarios are OK; each person grows and develops at their own pace.

However, people who fall into the latter category will likely benefit from some advice regarding how to pick the right career. There are several critical factors to keep in mind. With the proper knowledge and guidance, the process of choosing the best career can be very insightful and inspirational.

Think about Yourself

Whether or not someone has a successful career largely depends upon themselves. This is why The Balance advises people to think about themselves, their hobbies, passions, interests, and strengths prior to deciding upon a certain career path. More often than not, the activities which someone enjoys recreationally are somewhat indicative of which occupations would be best for them. Self-assessment tests and career aptitude tests can also help people get an idea of which careers would prove to be most beneficial.

Consider Promotion and Prevention

Brazen explains that there are generally two types of professionals: promotion-based ones and prevention-based ones. As the name suggests, promotional-based professionals tend to focus on opportunities and have the “entrepreneurial spirit.” Conversely, prevention-based professionals tend to thrive in more traditional positions of employment. The majority of people either lean towards promotion-based or prevention-based professionalism; making this distinction can truly help people weed out which careers choices are not for them.

Make Sure Your Credentials are Up to Par

Different careers and occupations require different degrees and credentials. For this reason, people should be sure to research the educational requirements which are associated with their aspirational careers. If they have these credentials and are sure they’ve found their desired career, the person at hand can proceed. However, if the individual does not currently have the necessary degrees to pursue their desired career, going back to school or taking classes to earn the aforementioned credentials are options which should be considered.

Pinpoint Your Desired Lifestyle

Most individuals have a conscious idea of the lifestyle they wish to enjoy. Whether or not this wish comes to fruition greatly depends upon income and career choices. If the individual at hand has concerns that their career will not permit the lifestyle of their desires, then they have some decisions to make. Considering an additional source of income, higher ranks within their occupation, or even more prestigious credentials are options to consider if one’s current career does not provide the desired salary.

A Final Word

Deciding upon a career path is not easy, by any means. There are many opinions out there and different occupations are better for various lifestyles. Someone who likes to travel and go on adventures is likelier to thrive in a career which allows for remote work. Conversely, a person who opts for a more traditional lifestyle may find themselves better suited for a 9 to 5 or similar forms of employment.

At the end of the day, there is a suitable career path for everyone. Happy hunting!

 

Authored by Gabrielle Seunagal