Tag Archives: money management

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 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

 

How to Financially Prepare for a Job Resignation

One of the starkest realities regarding the professional world is that people often quit, or resign from, their jobs. This can happen for many reasons; sometimes people have to relocate, move across country, or a new opportunity presents itself. In other scenarios, the employee may be displeased with new management, the workplace environment, protocols, customers, etc. Regardless of the associated reasons, job resignations are simply inevitable parts of life.

However, there are right and wrong ways to go about resigning from a current position of employment. Job resignations furthermore require considerable financial preparations. These are very critical factors which working people should be aware of before telling their employers “I quit.”

Cover Your Bases

Despite the reasons tied to a job resignation, having one’s own bases covered is absolutely paramount, as affirmed by The Penny Hoarder. The individual who is going to resign should ideally have another job lined up, run a side business, or otherwise maintain income to replace their soon-to-be-gone revenue stream.

In addition to ongoing streams of income, people who are preparing to quit their jobs should also have a considerable amount of funds in their savings accounts. Financial experts generally recommend having at least three to six months of living expenses saved up, although some specialists are now advising individuals to put aside six months to one year’s worth of living costs.

Settle All Debts

One of the most common sources of financial hardship is unpaid debt. These debts can become especially problematic when someone leaves their job, thus cutting off a stream of income. For this reason, Mint advises that people completely pay off any and all debts which they may have incurred before going forth and exiting from their current jobs.

Try to Exit on Good Terms

Not everyone exits their jobs on amicable terms. In many cases, conflict with management, undesirable professional circumstances, and other related factors are determining motivators behind a person’s decision to quit their job. Even under the aforementioned circumstances, The Balance still advises individuals against badmouthing their soon-to-be former employers or otherwise burning professional bridges.

In many cases, new employers consult the former bosses of potential hires. For this reason, blasting a manager can easily backfire and even halt potential, forthcoming employment.

Try to Cut Back on Expenses

Even with a sizeable amount of saved funds and additional revenue streams, cutting back on incurred expenses is advisable, if at all possible. Ideally, people should not be dipping into their savings unless it’s absolutely necessary. However, not everyone has the means or flexibility to reduce their ongoing expenses. The cost of living is not cheap, by any means.

A Final Word

At the end of the day, each individual has to determine whether or not they are in a comfortable and financially safe position to quit their job. If a work environment is truly toxic or unhealthy, an employee should definitely escape and seek out financial prospects of a higher quality; the negative offshoots of a destructive work environment are well documented. However, most individuals will ultimately benefit from saving money, settling debts, leaving their jobs on good terms, and reducing current expenses, if at all possible.

 

Authored by Gabrielle Seunagal

How to Make Money on Instagram

Many individuals dream of earning thousands of dollars each month on Instagram. While this can happen, lucrative Instagram careers generally take time and require interactive, plentiful followers. Strategic marketing, partnerships with brands, offered services, etc are some ways in which people can earn income from the use of their Instagram pages, according to Shopify

Each month, there are 800 million users who use Instagram; each day, there are 500 million people who use the platform. Furthermore, there are over 30 million businesses which advertise their products and services. The frequency of user engagement continues to surge with every passing year. With that being said, there is an abundance of business opportunities on Instagram; knowing how to go about these opportunities and being aware of the associated requirements is what truly makes the difference.

Establish an Active, Sizeable Base of Followers

Reports from The Cut state that brands on Instagram are highly unlikely to do business with users who have less than 5,000 followers. This is largely due to the fact that brands want to advertise their products or services to large audiences which henceforth increases their likelihood of obtaining sales and subsequent profits.

Now, there are some people who may attempt to solve the problem of having too few followers by simply going online and purchasing additional followers; there are countless sites which make this option possible. Nevertheless, buying Instagram followers is unlikely to put one on the path of monetizing their Instagram page.

This is due to the fact that brands keep track of rates of engagement. Engagement rates pertain to the number of comments, likes, and saves which users regularly receive on posted content. Needless to say, purchased followers are unlikely to engage with users’ posts, unlike legitimate ones.

Advertise Your Own Business

While a variety of Instagram users rely on paid partnerships with various brands, this is not the only way of earning a profit on the platform. People who currently have their own businesses and enterprises are more than welcome to promote their own products/services, create special offers, etc. The is no one exact way to promote a business, however; each individual will have to discover which strategies work best for them.

Give it Time

Despite the plethora of Instagram, money-making opportunities, they do not happen overnight. A considerable amount of groundwork is absolutely imperative, as is patience. Unfortunately, there are individuals who simply want what they want when they want it. Hence, waiting and building are not their fortes. Therefore, the failure to allow time to work its magic will subsequently throw a serious wrench in the path of eager users who desire a lucrative Instagram career.

A Final Word

Individuals who decide to pursue an Instagram career are strongly advised to have other sources of income, especially during the very beginning stages. Gathering a strong, active followership usually takes weeks, months, or even years. There are several stories of Instagram stars earning thousands of dollars each month, but that almost always comes after a hefty sum of groundwork, patience, and consistency.

 

Authored by Gabrielle Renee Seunagal

Financial Advice for Small Business Owners

As the world of work evolves, more and more individuals are deciding to become small business owners. Of course, there are various motivations behind this decision: some people like the idea of owning an enterprise, others may be in search of higher pay and more lucrative, professional opportunities. Nevertheless, regardless of one’s reason for starting a small business, it is quite a big step.

There are several common and critical elements amongst people who opt to go into business for themselves. The ability to make carefully thought out risks, work well with other, and make solid financial decisions can often make or break a small business. In fact, many entrepreneurs have failed at their professional endeavors due to a lack of financial acumen. Thankfully, that changes right here, right now.

Keep Your Personal and Professional Finances Separate from One Another

A distinct separation between a small business owner’s personal and professional finances is absolutely paramount. According to Fundera, the aforementioned separation is something which many entrepreneurs struggle with. Throughout the beginning phases of launching an enterprise, many small business owners feel emotionally attached and devoted to what they’re building. However, there are a variety of upsides associated with separating personal and professional finances.

First and foremost comes less hassle when it comes time for the business owner to pay taxes. Subtracting applicable business expenses from owed taxes becomes much more complex when professional finances are intertwined with personal ones. Keeping track of the money which comes and goes each month and documenting any and all expenses will pay off in the long run. Moreover, it is simply good business practice.

Additional benefits include greater plausibility as an enterprise and absolution from impacts on personal finances in the event of legal issues or other mishaps. More often than not, people think it won’t happen to them; nevertheless, unforeseen professional issues arise each and every day.

Find Out Whether You Need Insurance

Another important step for small business owners is for them to find out whether or not they need insurance, as affirmed by The Balance. In some cases, entrepreneurs are required by law to secure insurance for their businesses. For instance, any enterprises which have employees are mandated to also obtain liability insurance and workers compensation insurance.

Always Have Money Set Aside for Emergencies

In life and in business, emergencies and unsuspected occurrences take place. This is why all small business owners should take the liberty of putting aside a reasonable percentage of funds into a savings account. This money should not be touched, except in cases of absolute necessity.

Many entrepreneurs often feel the urge to reinvest earnings and funds back into their business. However, a healthy degree of reinvesting and saving can truly help a business flourish, especially in the beginning.

A Final Word

There are many ups and down which come with being a small business owner. Nevertheless, with the right attitude and application of the preceding advice, entrepreneurs will undoubtedly be setting themselves up for lifelong professional success.

 

Authored by Gabrielle Renee Seunagal