Starting Your Own Business, Part 2 

The key to successfully building your own business is to do something you love. And do not fall into the trap of doing something that everyone says there is “a lot of money to be made in it”. It is actually much easier to start a business if you enjoy the work. As you may already know, spending long hours doing something you dislike will never make you a success.

As to the money necessary to start a part-time business, today is the best time ever to be doing this because virtually anything you can think of can now be done professionally from your home. This saves you the huge overhead of renting space somewhere. Also, get your families help as much as possible. Probably the biggest mistake we see people make when it comes to starting their own business is hiring help. With the associated paper work and filings for employees, i.e. taxes, withholding reporting and insurance, this is a huge expense that you cannot afford right now.

The whole point, however, is that you need to pay off your debts and starting your own business is another way of bringing more income into the household to do this. How much can you make? If you turn out to be a good business person (keep your expenses down and the cash flowing) you may only make a profit of a few hundred dollars the first year up to as much as several thousand dollars. But if you find that you really enjoy this new business and want to make it a full-time occupation, you will see your profits growing each year.

Other Ways

There are other ways to increase your income also. Some of these could almost be considered a part-time job or starting your own business but are not quite the same.

For instance, do you have an extra room in your house? Can you create an extra room? Could you get bunk beds and put all three kids in one room for awhile? If so, you now have an extra room to rent out to a college student or young worker. A lot of people find the idea of having a “stranger” living in their house disconcerting. Remember that you can set up acceptable criteria for the type of person you will rent to. A graduate student is going to be a more serious person than a college freshman. They have to be or they would not have made it all the way to graduate school. Depending on what you charge for the room and whether meals are including or kitchen privileges, you could add at least another $400 a month to your income.

We live in the land of opportunity but it is your responsibility to find those opportunities and put them to use for yourself. Instead of spending the next few hours watching TV, why not go lay down and think of all the other possibilities out there.

US Loan Guaranty Service - Good Informational Resource - Government Site

Starting Your Own Business, Part 1

We stress this option because it is what we believe in. But how are you going to find the money or the time to start your own business especially when you are short of money right now anyway? And what are you going to do? If you have excessive debts then you might want to try to resolve those or find out information on a debt payment plan. You can usually find a debt reduction or debt management service provider pretty easily. In fact ReduceDebt.net is one of the leading providers in this area.

These concerns are all tied in together and basically boil down to “do what you love and the time will be there and the money will come”. The best way to explain this is to give you some examples. And remember that a lot of these can be done by anyone from 13 years old to 90 years old. And all of them take extremely little cash to start up.

Do you love animals? If so, you could try to get a part-time job with a veterinarian. Or you could start your own part-time dog grooming business. Sit down to your handy home computer and write up a flyer about what you will do, such as a complete shampoo and blow dry. Run off some copies of your flyer (this few dollars for flyers will be your only expense) and go out walking your own dog in a different area every evening. Every time you meet someone else with their own dog, hand them a flyer. It would be easy to fit this into a tight schedule.

Do you like flying kites? You could teach a class on Saturday mornings at your local Parks and Recreation department on how to build different types of kites and how to fly them (so they actually stay up, that is). Or you could start your own business by offering these classes in your own home. Again, your main expense will be flyers to post around town. However, learning how to get on the radio for free to preach the wonderful benefits of flying a kite would bring you even more customers.

Do you like spending your weekends biking around the countryside? You can offer your own tours and advertise them through bike and outdoor life stores. Or start a newsletter for bike riders about the most beautiful or safest or most kid friendly or easiest or more strenuous rides in your region, your state or even the whole country. You get to do what you love and still make money at it.

Do you love gardening? Again, offer classes on growing a healthy diet, one class for adults and one for kids. You don’t have enough room where you live to do this? Find a country person who does and offer to grow them so many pounds of whatever in exchange for a few month’s use of some land. Live in the city with only enough room for your own small garden? Teach the city dwellers about container gardening. You could even offer a class in your own kitchen on 50 ways to cook and enjoy broccoli. Sell your leftover vegetables to your neighbors.

If woodworking is your thing, you just need to focus on the area you like best. Do you like cabinetry and can, therefore, start a custom cabinet business? Or is furniture more enjoyable to you? Or do you like repairing old houses? Or do you and your spouse like doing the arts and crafts type of thing? Or do you want to teach others how to do these things?

In other words, think about what you really love spending your time doing and turn that into a part-time occupation. We all need time to relax during the day. What better way to spend it then by doing something you love and making a little extra money at the same time? On top of that though, you may find that you really love doing this thing and you are building up clientele so that eventually you can quit the job that you do not particularly like and have your own full-time business. This is truly the best of both worlds.

Saving Money or Groceries

You can create huge savings in this area, especially if you have kids. In order to be more creative with this item, you will need to create another list of your grocery shopping for a month. Once you have each item listed along with how much you spend on that item (including groceries, cleaning supplies, miscellaneous grocery store items), you can work on cutting the costs. If you’re looking for a company to help you reduce your debt,

(debt reduction )consolidate debt, or would like just general information on debt consolidation there are a variety of links available within this blog that will help you.

One of the main grocery problems is that, for most people, it is easier to eat out then it is to cook a meal. Therefore, the first item to go is eating out. The other grocery problem is that we have so many quick foods available to us today that make life much easier for the working family. That is, it is a lot easier to buy a frozen lasagna dinner then to make one from scratch. But this is where the major savings occur (aside from cutting out visits to restaurants of any kind). So first, either start making these items from scratch or not eat them any more.

Next, look at the most expensive items on your list. Is meat taking up a huge chunk of your grocery bill? If it is, you might want to go to the library and check out a good book on nutrition. For the sake of your wallet and your families health, eat beef no more than once a week with chicken or other less expensive meats two or three times a week and meatless meals the rest of the time. Use cheaper cuts. Buy a cheap rump roast and cube it for beef stew rather than eating steak. Have baked or barbecued chicken legs and thighs instead of breasts. And meatless pasta meals are healthier and less expensive. Find the local bakery outlet to buy day old bread from. Buy store names instead of brand names when possible. By paper products and canned goods in bulk. Cut back on desserts or have lighter (and less expensive) desserts such as pudding or jello or chocolate chip cookies. Save the cakes and pies for special occasions.

Finally, if you enjoy gardening or have ever wanted to try it, now is a good time. Don’t worry about inexpensive vegetables but concentrate on one healthy tomato plant or maybe a winter squash that will keep well all winter. This is a great family project.

By working to reduce your grocery bill, you may be able to save from $100 to $300 a month. This adds up to a $1,200 to $3,600 savings a year.

Are you a student that is desperately looking for ways to save some money? Then, look no further!

A student’s life is hard; there is no doubt about that. Not only do you have to deal with sending assignments on time and getting the grade, you also have the problems of an angst-filled teenager’s life. And most of the times, it can get quite expensive, especially if you’re a college student, living alone with no student grant or loan to cover you.

It is always easy to phone home and ask for money but why burden your parents more? If you follow a strict student life that abhors wastage and unnecessary spending, you soon find out that saving money isn’t as hard as it’s cracked up to be. Here are a few pointers on how to save money when you’re living a student’s life.

1) Get a job

This is perhaps the most popular and effective way to ease a student’s financial burden. There are bound to be part-time jobs available for students that have a decent pay. If your college or university is isolated, don’t despair. Most institutions offer on-campus jobs that promise to be enriching and financially rewarding. These jobs mostly involve work around the office, operating telephones and facilitating students. If you live near a town or city, you can always search for better pay and opportunities, but remember to look up the rules involving working students. You can only work a limited amount of hours per week.

2) Set up a student account

Once you get your paycheck, don’t spend it all at once. You have to save the money and cash it your student account. Most banks have special accounts that are beneficial for students; with lower fees and higher interests. It’s not hard to set one up and you can always ask your counselor about it.

3) Live with friends

If you are searching for accommodations, you should always check with student services. Most universities have dormitories which are on the campus grounds, thus making it easier and cheaper for students. However, they might be all full, so you’ll have to find someplace which is off-campus. It’s best to go search for the best prices with a friend from your class. You’ll be able to split up the rent and have a buddy to go to class with. It might take you a while to find the perfect place, but that’s the part and parcel of a student’s life.

4) Be thrifty

Don’t spend money as if you’re filthy rich (unless if you are filthy rich, in which case you don’t need to read this article). Try to develop good spending habits which include only buying things you need, reduce wastage and getting your money worth. If you’re buying something, make sure you can use it fully. If it can be made at home, don’t buy it. There is no strict guideline to being thrifty; you just need common sense.

5) Learn how to cook

Yes, this includes the boys as well. You’ll be amazed to discover how much you actually spend on meals. You could save a huge amount of money by buying a week’s worth of grocery and cooking your own meals. If you’re not much of a cook, then let your one of your roommates do it and you just buy supplies. That way, it allows you to save money, have a homemade meal and no fuss.

Living a student’s life teaches you life lessons, namely how to save money and how to be independent. These lessons can carry you far ahead in life and mold you into who you are going to be. Therefore, always try to save money when you’re living a student’s life.

Debt Reduction – Your Personal Credit File

There are two types of personal credit files: standard and investigative. A standard credit file contains a more or less complete outline of a consumer’s financial history. Chances are you won’t ever have to deal with anything besides a standard credit report.

Investigative reports are much more detailed and may contain information about a person’s lifestyle. Investigative reports are usually prepared for companies that want a really thorough investigation of a person’s background. For example, an investigative report may be prepared on someone trying to take out a million-dollar insurance policy, or an executive being considered for a high-level job, or someone applying for a job requiring a security clearance.

There are four parts to a standard credit report:

Personal Information

Your name, address, previous addresses for the past five to ten years, your date of birth, your Social Security number, your spouse’s name and Social Security number, the names and addresses of your previous and present employers, and your phone number can appear in the personal information section of a credit report.

Tradelines

A tradeline is industry lingo for a credit account. In this section, you will find a list of most of your credit accounts, the date each account was opened, whether you have paid each account on time, how much you still owe, whether you share your accounts with someone else, and any negative information about the account (for example, if it was included in a bankruptcy filing).

Public Record Information

Monetary judgments (if you were sued in court and lost, a judgment would order you to pay the person who won), state and federal tax liens, and bankruptcies appear on credit reports. Past-due child support may also be listed. Public record information is usually collected by companies that go to courthouses and gather financial public record information, and resell it to credit bureaus and other interested parties. Debt Reduction is covered in other articles found on this site.

By the way, information in credit reports is reported in a factual and straightforward manner. For instance, if you filed bankruptcy, your file would list the date and court particulars of your bankruptcy filing, but it wouldn’t say you’re a “deadbeat.”

Inquiries

A listing of everyone who has seen your credit report recently will appear on your credit report. Each listing is called an inquiry. There are three kinds of inquiries:

One kind is usually generated when you apply for some type of credit, insurance, or a job. Another kind of inquiry is a promotional (sometimes listed as a “PRM”) inquiry. These are usually created when lenders ask the credit bureau for lists of people who fit a certain profile so they can mail them pre approved credit card offers. These companies don’t actually receive your report, only your name and address if you match their guidelines. (And they don’t actually get that either, since the names and addresses go to a mailing house that sends the solicitations.)

While you would receive the names of the companies that were involved in a promotional offer under the inquiry section, those types of inquiries are not included on the reports that are sent to credit granters and other companies that get a copy of your report.

An account review inquiry is created when lenders want to review the credit of some of their customers. Say, for example, your department-store card issuer wants to increase customers’ credit lines before the holidays. They may go to a credit bureau and ask them to run criteria through a certain group of customers’ credit reports to find out who meets their qualifications. Those who do will get credit-line increases. Again, this type of inquiry is not reported to lenders.

If you’ve ordered your own credit report recently, you may also see consumer inquiries. Those just indicate that you reviewed your own file. They aren’t sent to lenders, either.

The previous three types of inquiries—promotional, account review, and consumer—are called “soft” inquiries because they will appear only when you order your own report, not when a lender orders it for review.

In addition to these soft inquiries, there are several distinct types of “hard” inquiries that will appear on your credit report whether you order it or a lender does. Mortgage-related inquiries, auto-loan-related inquiries, credit inquiries, insurance company inquiries, and employer inquiries are examples of hard inquiries.

Under the credit reporting law, employment inquiries are reported for two years, all others for one year. Debt can create a huge set of problems in your life, so its best to avoid it. Otherwise your options are debt management, or debt consolidation. If you’re interested in debt reduction look for other free informative articles on our site.

Debt Counseling Services – Signs its a Scam

Whether someone is offering you debt consolidation services, debt management, a credit card application or just trying to get you to sign up for a free credit report its important that you pay attention to the details. Here are a few different scenarios.

• The ad assures you that there will be no credit check. Any legitimate company is going to want to see your credit report, even those that lend money to people with less than perfect credit.
• You have to call a 900 number to apply.
• The ad absolutely guarantees that you will be approved. No legitimate company will do that. This is a double warning sign if the ad specifies that you are absolutely approved for a large credit limit such as $2,500.
• The card is offered by a company that claims to be in the business of credit repair, especially if the name implies that it’s a not-for-profit operation. The real credit repair agencies are more interested in getting people out of debt, not into debt.
• Any offer that prompts you to say, “Wow! That sounds too good to be true.” You know the old saying about that. This is another one of those situations in which you should listen to your gut.

Even legitimate credit companies sometimes offer useless services.

For example, some companies offer “credit insurance,” to protect your card in case it gets stolen. The offer assures that you would not be responsible for any bogus charges if you notify the company right away. Sometimes, the company will offer this service free for three months but then charge you a monthly fee, which it will helpfully take by hitting your credit card automatically.

The problem is that under federal law, you are protected in the event someone steals your card for any purchase over $50, if you notify the company right away. Many companies will forgive that $50 anyway.

Another worthless service is credit disability insurance. Again, the idea sounds good. If you are disabled, your minimum payments are covered until you can get back on your feet.

Once you do get some credit, use it wisely. Resolve to never again get in the position of waking with cold sweats or letting the answering machine pick up because you have no way to pay your bills. Debt consolidation or debt management companies will be wanting to speak with you soon.

Your best friend right now is your good common sense. You know now how easy it can be to get in over your head. You know that nothing you buy on a whim will bring you more pleasure than a savings account and little or no debt.

I’m reminded of that great Jimmy Buffett song, “Permanent Reminder of a Temporary Feeling.” He was talking about things like tattoos, but he could just as well have been talking about having huge credit card balances with nothing to show for them. You know from your own experience how easily that can happen and how stupid you feel later on. If you’re not careful you could find yourself calling a debt consolidation company to help resolve the thousands of dollars in debt you have.

Great ways to avoid credit card debt

Credit card debts are becoming the most common forms of debts today. The process of settling the credit card debts is much simpler and hence should be settled faster.

Debts and credit cards

Credit cards are the most essential financial tool provided to consumers today. Immense competition in the world of banking and financial tools has resulted in easy availability of the same. Having multiple credit cards is no big deal with 0% charges and no balance prerequisites for getting a credit card. But this facility is often used in the wrong way by consumers. The benefit of paying later and buying now is an appealing prospect but leads to high interest payments with bills piled. Credit cards are used for payments of utility bills, medical bills, grocery bills and all kinds of bills. These pile up and result in debts. If not paid on time the high interest rates can make the financial situation worse. Hence avoiding debts of credit cards is the best way out.

Avoiding credit card debts

The best way to avoid debts on credit cards is to limit the use of the same. Also reducing the number of credit cards is another way out. Generally if card has overdrawn its limit then another card is used. This results in a repetitive chain of debts which are never ending. Hence by reducing the number of credit cards and trying to make payments by cash are the best ways to avoid debts on the credit cards.

Settling smaller bills

The credit card debts result in poor credit rating which can be a problem for future financial investments and loans. Credit rating can be improved through the settlement of smaller bills. Usually the smaller bills are piled on because they are less in amount and the general conception is to settle these all together. But by settling smaller bill amounts the credit rating can be improve and also unnecessary interest charges on these bills can be saved. Settlements of smaller amounts of bills are the best ways to avoid credit card debts.

Negotiations for credit card settlements

Even though avoiding debts are the best way out of credit card debts there are unavoidable circumstances like illnesses and loss of employment which leads to the same. In such circumstances negotiations are the best way out to avoid further debts. Negotiations can lead to reduction of the credit card debt. The amount can sometimes be reduced to almost 50% which is a benefit only on credit card debts. It helps to improve the credit rating and the remaining amount of the debt can also be paid in installments.

Using common sense is also always a very good option.

Debt Solutions

Saving money is a great way to stay debt free. If you start early enough it means when purchasing items, the item will only ever cost as much as it is. Using credit cards and other similar methods of payment, the interest payback on the item can often make the item end up costing more than the displayed price. The more you save, the more your bank will reward you with interest and the more debt you will avoid and the more debt fee you will be.

Although saving money can sometimes be hard, when there are bills coming in and your income may be low having a good amount of savings can help you avoid large interest rates on payments and say debt free. Saving money is a great habit to get into. Whether you decide you want to spend you savings on a luxury item like a car, or even just live off it while times may be harder, the money you have in your savings will always have a use.

A great way of saving money and a way to build up your savings and reduce debt is to start transferring a small amount of your earnings into a separate account. Doing this will quickly build up your savings while having very little effect on your day to day life while giving you extra money when you may need it which helps you stay clear of debt and remain debt free. For example if you put away just $10 a week, in a year you will have $520 which can be put towards Christmas gifts or a new TV or other extra things you may not always budget for helping you to reduce debt.

Collect up any change you have around your house. There is so much money just lying around your house without even realizing it. Saving money is easy if you get some money bags from the bank, and count it up and take it in. Even if collecting it all up may only make $20, it is still money that was otherwise just lying around on your floor doing nothing and while it not be enough money to really help you be debt free, it is enough for a little treat at the end of the week like a nice bottle of wine without feeling like you are tapping into your savings or main income but while still feeling like you are saving money.

Another great way of saving money is to cut down or quit something you do already. If you smoke or drink, cut down or quit. Place any money you would’ve spent drinking or smoking in a jar or take it to the bank. This not only benefits your health but also helps you stay debt free. Even if you are just saving the money you may normally spend on a packet of crisps or a chocolate bar, over time you will really notice the difference it can make to your finance and can help reduce debt.

Budgeting - 5 Tips to Avoid Debt

No Debt - No Problem 

1. Make a budget, this is the most important thing you can do. Having a budget will help keep track of your spending which in turn will help you stay debt free. When making a budget, it should include how much money you have coming in, and how much you have to spend each month on bills and essentials. Whatever is left on your budget sheet when you take the outgoings from the incomings is your budget for the month. Every time you spend something, no matter how small put it on your budget sheet and work out how much you have left. Small items add up quickly, just a few extra bars of chocolate or some non essential items in town can end up making you spend money you don’t need to be spending, and that you often forget you have spent.
2. When buying an item in town, don’t buy it straight away, go around to different shops, have a look at other items, look for the cheapest you can find or try and find a similar item within the price range of your budget. Going around to different shops will help the impulse go, if at the end of shopping around you still feel you need the item then make sure you can afford it. If you can’t afford it and you don’t need the item, then be strong and do not buy it.
3. Make a shopping list. It may seem like something only old people do, but making a shopping list really works. It not only helps you stick to your budget, it makes sure you only buy the items you intended to buy when you set out. Stores are designed to make us buy things we don’t want or need, and often when shopping we end up coming back without what we set out for. Make a list, stick to it. It will help.
4. Set a budget for each shopping trip. If you are going into town to shop, take out $100 from the bank or whatever you can afford and set this as your budget for the day. Only spend the money in your wallet or purse. Having cash will make you stick to your budget. Don’t buy anything on card even if it’s a debit card. Only spend what you have. Even a few small extra payments on cards, it will mount up. If you absolutely must have something that is out of your budget range for the day, check tip 2.
5. To save some extra cash, take around 10% of what you earn every week or month, and put it somewhere safe like a separate bank account. The money will soon grow and can be put towards something your saving for. 10% isn’t so much money that you will notice it being gone from your main spending budget.

Hopefully using these tips will help you get a better grip on your finance and help you budget for the future and avoid debt.

Avoid Credit Card Debt - Consider Hidden Credit Card Costs

The Fixed-Rate Credit Card That Isn’t: When you take out a fixed-rate mortgage, you know what the rate will be for the entire life of the loan. When you take out a fixed-rate car loan, you know that the interest rate will be the same on the first payment as the last. When you take out a fixed-rate credit card, it’s an entirely different story. Severe credit card debt can be avoided if you’re careful.

Variable-Rate Cards: Just like with mortgages, a variable rate means the interest rate is tied to another interest rate in the economy, and will change if that interest rate changes.

Every card issuer that offers a variable-rate card is free to decide how it’s going to compute the rate. One, for instance, may determine the rate by adding 5 percent to the prime rate as listed in the Wall Street Journal. Another may choose to tie the rate to the federal discount rate.

Most variable-rate cards change rates quarterly but some do semiannually-it is up to the card issuer to decide. Information about how the variable rate is determined, and when it changes, has to be disclosed up front in applications and solicitations. According to CardTrak.com, most variable-rate cards have interest rate “floors” below which the interest rate cannot go, even if the index rate goes lower. If rates dip very low, as they did in 2001, consumers may be better off getting a lower-rate card elsewhere than sticking with a bottomed-out variable rate.

Tiered-Rate Cards: A few credit card programs offer tiered rates: The interest rate depends on the balance on the card. For example, a tiered card may charge 17 percent on balances up to and including $1,000, and 13 percent on balances above $1,000. This rate structure is designed to reward higher balances and make more money off lower balances. Tiered-rate cards are usually not good deals because they “reward” customers for going deeper into debt.

Different Rates for Different Balances: Many cards now charge different rates for different balances. There may be a lower rate for the balances you transferred from another card during a promotion, for example, or another rate for cash advances. If you have balances subject to different interest rates, your issuer will print an “effective” rate on the statement, which is basically an average of the different rates you are paying.

A caution: All issuers allocate payments to the lowest-rate balance first. That means you’ll be wiping out the cheapest balance first. This is directly contradictory to the most common advice for paying off debt, which recommends you pay off your highest-rate balance first. Consider yourself forewarned.

Teaser Rates: 5.9 percent or even 0 percent interest sounds great. And it can be. But remember: Card issuers would not continue to offer teaser rates if they weren’t profitable. Many teaser rates just don’t last that long. Six months sounds like a long time, but by the time you’ve completed the transfer (which can take a few weeks), you may not benefit from the new rate that long. And if you don’t find a new card or negotiate a better deal, you may be stuck with a higher rate than you need.

So which do you choose: a fixed-rate, variable-rate, or tiered-rate card? It really doesn’t make a difference whether you choose a fixed-rate or variable-rate card, since neither is completely stable. So far, there have been no studies that tell whether fixed or variable-rate cards change rates more dramatically. We think it’s a matter of finding a bank that has a general reputation for charging low rates (fixed or variable) and hoping they don’t decide to suddenly change their marketing strategy. Whatever you choose, you are taking something of a chance. The exception are cards from Arkansas banks, where state law keeps rates very low. If you can get one of these cards, you know the rate will be good as long as that law’s in place!

When Your Account Changes Hands

It’s true that the big banks keep getting bigger-at least in the case of credit card issuers. Credit cards are so profitable for banks that “do it right” that many of the larger banks want to get more and more customers. Sometimes, they’ll just buy them from other issuers.

Card issuers have to give you fifteen days’ advance written notice before changing the terms of the credit card. This is also true if a bank buys another bank’s cards and raises any of the costs. In addition, individual states may have laws that cover banks located in that state.

If, for instance, your new credit card issuer is located in Delaware or New York, you will have extra protection against a sudden rate hike. Delaware and New York laws require issuers to give customers thirty days’ advance written notice before raising the rate, and also require banks to give customers the opportunity to pay off the card at the old terms and surrender the card.