Different Ways To Finance Your Business

Financing your business

Tips of financing your business

Financing your business is a challenging job as people out there in the world are not there to give their valuable money to you. Financing your business, that too, in the startup stage is really difficult job. Going out there in the market and asking people to give you money or let’s say convincing people takes too much effort. You have to be totally prepared with your business plan as to how you are going to initiate it, how you are going to take it long way and how are you going to make profit out of it and benefitting them who lend you their money. For financing your business, you need to have a great idea of business which is new in the market and which can really impress the lenders. This will be some concerns if you are searching for the ways to finance your business in the startup stage. But this does not mean that if you are having a running business and you want to finance your business more its expansion then it would be easy. When you already have a business, lenders will scrutinize your business as it how much is the capital, how long has this business survived, what is the amount of capital invested, how much is the profit earned and what is the interest earned by its shareholders. Hence before you start up with the ways to finance your business, you must be prepared for all this circumstances. Here are some of the ways from where you can finance your business.

  • Ask bank for a loan

Bank is one of the ways for financing your business. If you have good past records then bank can give you loan and you can get your business financed. You need to have a good credit score in your credit report as this is one of the things which banks see while giving loan. If you have get your property as a security with the banks then also bank will grant you loan for starting up a business or expanding your current business.

  • Make use of credit card

Credit cards should be the last resort of financing your business. This is because credit cards have a high amount of interest and hence if you are ready to find an alternative solution to finance your business avoid credit cards. But any other option is not available; you can also use your credit card and finance your business.

  • Ask money from friends and family

When you know, you have some really great idea and you know it is going to work if started but you are not able to raise money for it ask your friends and family to get rid of it. Asking friends and family for money can be little bit uncomfortable but it works for you then you not to try it. You can return them with interest after some point of time. You can consider it as an official loan and not as help. It will help you to ask for it.

Tips of Opening your First Banking Account

Person opneing First banking account

First banking account opening tips

Planning of opening your first banking account? Well, opening a banking account can prove to be a great start for your bright future, as an independent and successful adult. You might be assuming that opening your first bank account might be an easy process, isn’t it? But it is not so simple and easy as you are assuming. There are many facts and factors to be taken into consideration while opening your first banking account. Knowledge and better understanding both are considered as the key factors. The more you know, the more easily and comfort is available for opening your first banking account. The stated tips of opening your first banking account will help you in working confident enough for your future.

First banking account opening tips:

  • It is important to know the basic type of your account that you are going to open. When you are planning to go for opening your first banking account, knowing your account type is advisable. You want a checking account, current account ort a saving account? Or might be possible of opening both of them. Whatever your decision, ask the necessary question before you go for opening your first banking account.
  • Many banks offer some policies of maintaining your account and deposits. You might not get the chance of operating your account unless the deposits are clear. This is an important question to be asked to your bank. Many of the tem also have the criteria of maintaining minimum balance requirement. If you minimum balance fall from its value, the bank may charge a fee or deny your access towards the account.
  • Following and asking certain questions to the bank before opening your first banking account is important. Some of the banks ask for fees but they don’t describe it while you are opening the account. Fees like for ATMs, Overdraft fees, minimum fees and checking fees are some examples. Make sure to identify and find for this type of fees so they don’t surprise you when you receive the bill.
  • When opting for opening your first bank account, don’t feel like you need to start with the first bank you went for. Go for a ride of gathering different information from other banks. It is advisable of checking out the banks of your friends or relatives for better experience and information. There are more chances of getting benefits if a long term customer of bank has becomes the bridge of reference.
  • Among the hardest and difficult task to understand is online banking. Most of banks offer the advantage of online banking but many of them don’t. it is better to ask for online banking criteria in the bank where planning for opening your fist banking account. Online banking offers with many benefits like online payment of bills, and options of transferring your money to other. It makes you work easy because you will not be needed to visit your bank for making any transaction or paying bills.

Tax Planning Tips For Salaried People

Tax planning for saving income

Tax planning for saving tax

It’s very essential to make proper tax planning and make such investments which can minimize your tax liability. Many times it is observed that salaried people end up paying more tax then they are actually liable to pay. There are many reasons behind this, insufficient time to do proper tax planning, lack of awareness about various incentives, lack of knowledge about rebates and allowances under section 80 C deductions which are very much popular. There are also certain other sections which can help making tax planning and save taxes of salaried people. It is very much important for a salaried person to devote appropriate time and also effort for doing tax planning exercise and also be aware of different benefits which they can get. Here are some of the tax planning tips for salaried people which can help them reduce their tax liability.

  • Use entire section 80 C deduction

Under this section 80 C, the maximum deduction available to an individual is 100000 Pa. generally salaried people whose gross total income is equal to or more than 250000 must utilize this entire limit of 100000. Say for example an individual is having an income of 600000 and he utilizes only half of the amount of limit of 100000. Now this individual will end up paying an extra tax of 15450 as against an individual having same income but utilizing the entire limit. This is a case of poor tax planning. Here are some of the investments which can be qualified for deductions under section 80 C.

  • Public provident fund
  • Life insurance premium
  • National savings certificate
  • Accrued interest on national savings certificate
  • Equity linked savings scheme
  • 5 year fixed deposit with post office and banks
  • Tuition fees paid for kids’ education
  • Principal component for home loan repayment
  • Restructure the salary

Restructuring the salary is the right way of tax planning. It includes certain factor which goes long way in deducting your tax liability. It is an efficient way of tax planning and claiming tax benefits. Below mentioned things can form part of one’s salary structure.

  • Food coupons like ticket restaurants and sodexo are exempt from tax up to 60,000 per annum.
  • Medical expenses which are being reimbursed by employer are exempt up to 15000 per annum.
  • Transport allowance is exempt till 800 per month.
  • Individuals staying in rented place are allowed house rent allowance as a part of their salary.
  • Opt for a joint loan

The principal repayment on a home loan is eligible for deduction up to 100000 Pa and the interest paid is also eligible for deduction till 150000 per annum.  In certain cases where home loan is for substantial sum, it is very much common that the principal repayment and interest will exceed the specified limit. For making sure that the tax benefit is fully utilized, an individual must opt for a joint loan with his or her spouse or siblings or parents. By doing so both the loan holders can claim their part of tax deduction and this is an effective way of tax planning.

Types Of Business Loans

Business loan typesFor making any business successful, you need to have a great idea for business and a practical business plan. But do you think this is enough for business. Of course any idea or any plan is not possible to implement without money. Thus money and finance are equally important for any business. Now in today’s time, it is not easy to procure money, people are not willing to easily give their money but there are many options available to encourage new entrepreneurs and finance their business. Loans are one of such options which can be used to finance your business. There are types of loans available in the market but for financing your business, you need to have adequate knowledge about types of business loans. Get to know every types of business loans then decide which type of business loan is more suitable to your needs and whether interest rate is okay with you and whether the amount of installment is payable or not. Don’t opt for any of the types of business loans which you cannot repay and then you have to pay extra penalty. Thus think wisely study all your options, your needs and your ability to pay and then opt for the types business loans more convenient to you. Here are some of the types of business loans which can be helpful to you in making your choice.

  • Balloon loans

The name of this loan is bit funny but describe the loan very well. These types of business loans is written under another name but you can still identify such loan by the fact that whole of the amount is received at the time of signing of contract and the amount of interest is paid off during the life of the loan along with a balloon payment of the principal due on the final day of the loan. Only in occasional case, lender will avail you with a loan in which interest is paid off with a single balloon payment. Balloon loans are usually taken on the cases when the business has to wait for the specific time before you got to receive the payment from a client for its services or products. In other words they can be referred to as installment loans.

  • Secured and unsecured loans

Any of the types of business loans can come in two forms, either secured loans or unsecured loans. When your lender knows you very well and he is convinced by your business plan and he has confidence that the loan will be repaid on time then he will be willing to write you an unsecured loan. If you are starting off a new business you cannot get unsecured loan as the lender will definitely see your track record of success and profit. Such types of business loans has higher rate of interest.

A secured loan on the other hand needs some or the other collateral security for getting the money but it has lower amount of interest as compared to that of unsecured loans.

How to Manage your Personal Finance

How to Manage your Personal FinanceIt is considered to be important for the individual in managing your personal finance which is going to be helpful to you only. There are many things which are needed to be taken in to account because managing your personal finance will help you to be secure enough for your future which you need to go through. You might be thinking that managing your personal finance is considered to be easy and you can comply it easily, but the facts say something else. It is considered to be a complex thing because you need to go for focusing on many of the aspects which are considered to be important for taking it in to consideration. The further information will help you in these matters.

There are many things which you can take in to consideration while going for managing your personal finance which you have earned of. Whereas it is considered to be your future investment which you are going to accumulate so that your future or any of the emergencies does not becomes the issue which you cannot go for clearing it. Well, there are many ways which can help you in the matters of going for managing your personal finance like take the notification about your spending in current time, go for preparing of the budget, preparing household budget for your home, etc. and many more of the things which can be considered to be important points which can help you in going for managing your personal finance which you have earned of.

How to manage your personal finance

  • Well, don’t worry managing your personal finance is not considered to be s scary process but it’s just that you need to go for less of your costing factors which can help you in saving up your money which you have earned of. The further information will help you in giving up the advice about the things which you need to take in to account at the time of going for the further process.
  • It is considered to be important for noting down the track record of your monthly spending you take in tor account. Many of the people have no more of the idea about the amount of money which they spend up every month. so it is considered to be betters of recording such things which can help you in notifying that at the end of the month which are the expenses which have taken place and because of that the money has been spend.
  • Prepare up the budget of your household things which you are needed every month. This will give you proper ideas about the things which you need to go for spending up money on your household stuffs. Not only that but preparing of budget will help you in providing idea and controlling yourself of not spending more of the amount of the money than the budget which you have decided for. at the end of the month you would get proper idea that how much of more of the amount you have spent from the actual budget which have been prepared.

 

Types Of Bank Account For Children

childrens bank accountIn Today’s time parents like their children’s to indulge into banking so that it helps them in future and bank also support their decision to do so. Thus banks offer many options which help the parents to set up a bank account for children’s. Bank accounts for children can be set up for either long term perspective or even for short term needs. One of the bank account for children can be interest account where they can deposit their savings and sit back and watch their money grow by earning interest over time. There are also several bank account for children where they can open up checking account and it will allow them to manage and track their spending and funds. Here is some of the bank account for children where you can start banking of your children at smaller age only.

  • Education savings account

Education savings account is one of the options for opening bank account for children. They are established to pay off the education expenses of the children’s. These types of bank accounts are usually set for the individuals who are below the age of eighteen years. Grandparents, parents or any other interested individual might set up education savings account for the children if they find for any specific income requirement made by any of the financial institution. The funds put into education savings account might be used in covering up the secondary school expenditure or college fees or other educational expenses. Such kind of account can be set up with mutual fund or brokerage funds or banks and generally there are maximum annual contribution amount for each and every such account. Majority of the education savings accounts are non-deductible and also the withdrawals are also tax free for such accounts. This is one of the bank account for children which is advisable and even helpful to children.

  • Interest earning savings account

There are many banks which interest earning savings account which are designed specifically for children. This type of bank account for children allows the children’s to place their funds into the account and interest will compound every year. Parents or any interested adult can connect with the account of their children electronically and transfer funds into their account accordingly. There are some banks where bank account for children has to maintain minimum balance where as some banks does not have this criteria. By opening bank account for children, they can deposit their own money into it and this can also teach them the importance of savings from young age.

  • Joint checking account

There are several banks which allow opening bank account for children jointly with their parents. Such type of account is shared between children and parents jointly and both parents and children can have access to the bank account jointly and also manage their funds jointly. Banks have the right to establish limits and also have a check on their children’s spending habits and all.

3 Reasons of Having Offshore Bank Account

reasons of having offshore bankingHaving offshore bank account is considered to be something important which all the people must have the knowledge of. You might be thinking that, what offshore bank account can provide me right? But let me tell you that there are many benefits of having offshore bank accounts which can help you in many of your matters which is in your benefits. Well, let us discuss it in details. An offshore bank account is similar to those bank accounts which you open in your country or nearby your residence, but offshore bank account is not in your country but it is in a different country. There are many reasons of having offshore bank account on your name.

The further discussion will help you in getting all sorts of information and reasons of having offshore bank account which you can for. Well, there are any reasons of having offshore bank account like it will help you in diluting your political risk; your asset protection can be done in a better manner, diversification of your currency, etc. and many more of the things which you can all it as the reasons of having offshore bank account for you. The further discussed details will be more helpful to your when you will understand it properly.

Reasons of having offshore bank account

  • Asset protection

We all know the fact that sooner or later your chance is also going to come for the matters of dealing with the lawsuit which is being processed by US government. So why to take the chance? In this situation the role of offshore banks comes in t action. If you have open up and having the offshore bank account than it will be helpful in keeping your assists over there and as per the provision each and every country have their different lawsuits and regulations which another country cannot bind for.

  • Helps in diluting your political risk

Now days it is considered to be one of the biggest threat is not of the market when it comes for the saving but it is the political government which is being present in your country. Well, opening and having offshore bank account will help you in saving up your money in many matters. You must transfer some of your savings to the offshore bank account which you have open in another country and this will help you in getting all sorts of benefits to those savings which you have accumulated outside the country in the offshore bank account which you are holding as of.

  • Diversification of currency

We all know the importance of holding foreign currency right? We can easily get all the access towards it if we are having any offshore bank account. Not only that but it increase our credit score because as we are holding up the foreign currency. These offshore banks provides your with the option of holding the foreign currency online which is considered to be benefits for the bank account holder. Not only these but there are many different reasons of having offshore bank account which can help you in getting and Lessing downs your risk factor of your savings.

Student Checking Account

student checking accountIt is very easy to open the student checking account. Even kids can open the checking account for their own purpose. Many things have changes with the time. Students have to put up with their matters of studies and many more criteria’s and for that student checking account is the best choice to opt with. There are many features which is helpful for the students to clear up their issues regarding their studies. This account is more favorable for the college students who have to comply with many matters such as paying their fees, studies expenditure and what not. All the banks, financial institutions, credit union facilitates with the student checking accounts which help the student in their education field.

Student checking account provides the students with many features which help the students in easing their problems related to their studies. Like debit cards, lowing fees, and many other criteria’s. Student checking account gives the access to the students to manage their money in the account whenever and wherever they want to. Many ATMs have been established for the students to withdraw the money when needed from their student checking account. Many options have also featured in the student checking account relating to the online banking. Because online banking have given its rise in the country.

Students are now not going to the bank for depositing their money or withdrawing their money from their account but they have started using the easy way of banking, that is online banking, where you can reach and operate your bank account sitting at the place you are and without any interruption in the process. The base of online banking is accepted by the banks and the facility of student checking account is also operated online by the students. Chase student checking is the best way to operate your account sitting in campus or operating it from the home or the place where you are.

Student can now save their money in student checking account without any anxiety of their savings to be sold out or to be used. This account helps the student to let them withdraw the money or use the account for numerous times. There is no limit specified for the deposits or withdrawals of the student checking account. All the necessary transaction such as paying the college fees, educational expenses can be written off from the savings in the student checking account in the banks, financial institutions where it is opened. Many times that question arise that is it advisable to open the student checking account? But yes it is very much beneficial for the student because this can create the habit of growing their skills in the field of banks and financial institutions.

Many ATMs have been opened for the students so that the students can directly withdraw their money from the account with help of the debit card which is provided by the bank when they open the student checking account. Account alert is one of the benefits which are provided to the students opening the student checking account. This feature makes the student remind about their balance in the account and the minimum cash balance which should be in their student checking account.

5 Good Habits To Save Money In 2014

how to save moneySaving money is an art. It means to set aside some amount of money from present income for future use. The main reason as to why many people do not get to do what they want or need is because they do not have a good amount of saving. This article will show you, how to cultivate a good habit of saving in 2014.

You must determine your needs: You must make this decision as to what you will do out of the money saved. This will help you to determine how much amount of money, you want to save and for what period of time. It can be divided into certain intervals as per your convenience. You must also ensure the frame of time within which you can achieve your goal.

Chalk out a plan: The next thing that you should do is to make a rough draft of how to go about with the saving of money. This plan must include the place where you want to save, whether interest is required or not, intervals within which you should save. This will help your work easier.

Discipline: Most people lack discipline, Discipline helps you to stay within your area of focus. You must take care of the plan and see to it that it is carried out in a proper manner.

Sacrifice: Once you have a mind set for saving money then you will have to undergo certain sacrifices. You will have to make a demarcation between your wants and needs. The best way to save is not to spend money on useless stuffs. It is hence very important that you plan your savings.

You will have to carry everyone along: In the process of saving you might have to choose between the needs of the various family members. So you should be convincing enough.

Applications of financial astrology

financial astrologyThe influence of astrology goes beyond the personal realm to the professional one and it has had quantifiable and verifiable effects on human life. The movements of celestial bodies do not dominate individuals alone, but often influence whole societies as well as fields such as finance.

Financial astrology refers to the connection between planets and finance. You might be a firm believer of astral energies and their influences on the financial and business environment. This includes investors, brokers and insurance companies. Financial astrology can determine their success. The increasing curiosity of this field has led to the generation of a substantial amount of specific literature that is valued by the general people who read it.

You should know that astro-economics has numerous applications. Primarily traders use this practice in multiple actions. The first and foremost application is determining the major economic trends and how it originates from the cycle of planets. Economy is bound to follow similar cycles. In a way you could say that history repeats itself. Astrologers offer a global perspective with their ability to foresee the progression or crisis of the economy. Sometimes they can predict it years before the analysts see it coming.

One thing financial astronomy will help you with is telling you the right time and place to invest. Innumerable traders have found astro- economics to be very helpful in this regard. It has helped traders with identifying the utmost profitable stocks and the ideal time for investing in them. Finance astrology can be linked to complex philosophical concepts such as the nature of time. This practice is related with numerous other topics besides economy. It shows you a worldwide and all-encompassing outlook of market trends.

It does not try to ruin long standing values or ideals. It simply encourages a multi-disciplinary tactic. It suggests that traders take into account all possible factors as when making decisions.

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