BGN Entrepreneur » financial health

Start Saving towards Future Financial Health

Sky — Tue, 01 Jun 2010 16:06:26 +0000

In the current tough financial times, with many business owners seeking an alternative to bankruptcy, pinching every penny and saving all the time is very important. Nowadays, lots of individuals are searching for faster and legal way-out to reduce credit card dues and other bills.
Most of the time, people can start saving fom all kinds of small things. A lot of people are sharing tips of sharing on different aspects. If you are looking to change your financial situation, it is better start immediately.
Are you also trap in deep debt? Get more help from experts in the field of Debt Settlement, which is also called as debt arbitration or debt negotiation

Achieve Your Money Plan in 2010

Sky — Sun, 03 Jan 2010 14:46:15 +0000

Do you plan to save certain amount of money in the new year? It is not that hard if you have set a realistic weekly savings target.
To many people, managing money is difficult. However, it might be a bit boring, but it is actually very easy, not to mention important. It doesn’t matter if you are not good at math. Financial fitness is about being organized, not being a mathematician.
Here are a few steps to become a financially independent people in the next 12 months.

First of all, live within your means.
Don’t feel like you need expensive things to be happy. Great company costs nothing. Make a deal with yourself that you’ll only use the credit card for emergencies. The interest rate is just too high for impulse buys.

Secondly, fill out a basic budget.
Make a weekly or fortnightly budget. It is empowering as it indicates what one is earning and where it is going.

Thirdly, auto-transfer your savings so you don’t need to think about it.
Work out how much you can save, for example, minimum £10 per week. Then arrange for your savings to be transferred into a separate account every pay day.

Find Your Own Personal Financial Black Holes And Weakness

Sky — Fri, 20 Mar 2009 23:41:43 +0000

The important thing here is to become aware of where your money really goes and why, and decide to do something about it. One fo the amazing things about human psychology is how we can spend years of our life suffering a problem, without really doing something to solve it. Sure, we’ll fool ourselves into believing that we tried to solve it, yet our blatant lack of a result quickly gives a lie to that deception, and it is the necessity of change that is important.
Over the next couple of weeks, spend some time having a real hard look at what you spend your money on and also both the practical and psychological reasons for the spending. Are you paying money out on credit card interest, for example, when you could actually afford to pay it off? Is spending a compensation for having to work so hard, or for something lacking in your childhood? Or are you simply spending to much on expensive food, gadgets, your home, school or childcare for the children.
First of all, it is sometimes hard to spot our own weakness ourselves. Ask your partner and friends what they see as your personal money weakness. If you are really brave, consider asking a parent or consulting anyone else of an older generation.
Secondly, put yourselves on a monthly or yearaly allowance. Put limits on your weekly consumption or budget on goods that is not necessity, such as wine.
Find solutions if you’ve got too much debt and mortgage. Instead of neglecting the problems, consider seeking advice.

Ways to Protect The Credit Rating

Sky — Thu, 19 Mar 2009 18:39:30 +0000

Your credit score is your own personal financial history. It can tell financial institutions how you conduct yoru bank accounts, credit cards, movile phones and more importantly how credit worthy you are. As credit is almost an essential part of today’s lifestyles, protecting and improving your credit score has never been more important. So what can you do to improve your credit rating?

1. Check and Understand
If you don’t know what your credit rating is then you won’t understand it. Make sure you check your report at least once a year or if your situation changes. There are lots of websites which can be of some help for you to understand.

2. Make Amendments
If you find anything unexpected in your report write to the credit agency and ask for it to be amended or investigated. Even minor errors can cost future credit opportunities. If there are special circumstances around a particular entry such as missed payments due to illness etc. then you can often add a short note called a Notice of Correction. Lenders must read any Notice of Corrections, that has been added but don’t have to take it into consideration when making credit decisions. If you have settled any County Court Judgements or your bankruptcy has ended make sure this is showing on your record.

3. Register Your Interest
If you are not on the electoral roll then you have less chance of getting credit decisions. Being able to track you to a registered address is an important factor for financial companies.

4. Pay on Time
Making payments on time is very important no matter how big or small they are. If you have any problems making payments then you must contact the company immediately. Often they can assist you with ‘temporary blips’ and discussing options and keeping them informed can reduce the the damage to your credit score.

5. Check Your Identity
If you notice anything unusaual or unexplained on your credit report such as applications you didn’t make then you may be a victim of identity fraud. Always check that you can account for all of your credit ‘footprints’.

6. Keep the Record Straight
Your credit report includes a section listing anybody you have a joint account, mortgage, loan or credit card with. Lenders may take a look at the financial histories of these people when you apply for a new loan. If they have a poor credit record, you could be rejected.
If you no longer share a joint financial agreement, advise the credit agency who can remove the financial connection from your credit report.

7. Reduce Your Footprint
Several applications within a short period of time will show up on your credit report. If you want to shop around for credit, ask the companies for a quotation before making a formal application. If the company needs to check your credit report to give you a quotation, make sure it only makes a quotation search. Lenders may interpret an abnormal number of credit application searches as indicating that you have applied for an unmanageable level of credit. They may even suspect fraud.

8. Tell the Truth
Always tell the truth on your applications. Lenders can find out quite easily if you have lied and this will cause difficulties in future applications for credit. It may even be deemed as a fraudulent application.

10 Bad Financial Habits Ought to be Broken

Sky — Wed, 18 Mar 2009 22:12:49 +0000

Most of us have got bad habits, which is just part of being human. However, with the price of everything from crude oil to a loaf of bread rocketing skywards, poor money management shouldn’t be one of them. Check through these common financial faults to see which ones you recognise and what you can do to clean up your act. Here it goes.

1. Living Beyond Your Means
If your pay is never quite enough and you have to borrow to make ends meet, you are already on the slippery slope to financial difficulties. The first step to sorting yourself out is to stop thinking of budgeting as a frightening word. List all your income and outgoings to give yourself a clear picture of your spending and then look for ways to cut back. Ask yourself if you really need so many glossy magazines each month or that expensive satellite TV subscription and shop around for cheaper deals.

2. Too Many Credit Cards
Do you accumulate credit cards like boys collecting toys? If so, you could be doing serious damage to your finances. Introdutory offers may be seductive but before you know it your debts can pile up and you could be struggling. Try to pay off the balance on credit cards with the highest interest rates. You also need to learn to say ‘no’, and really mean it.

3. Lving for Today
We’ve all done it, blown that money we were putting aside for a boring necessity on something a bit more exciting. But spending everything you earn and not putting anything by for tomorrow is a recipe for disaster. Even saving a small amount will give you greater financial security and help you through an emergency, such as a boiler breaking down, car repairs or losing your job.

4. Letting Your Finances Slide
It’s one thing not knowing exactly how much you have in the bank but quite another to be unaware of how much debt you’ve accumulated and how you are coping with it. Checking your credit report is a good way to check on commitments. This is your personal credit history and lists borrowing, from credit cards and loans to your mortgage, along with your repayment record. Lenders will probably view it when you apply to them, so it needs to be up-to-date and accurate.

5. Burying Your Head in the Sand
Thinking your money troubles will sort themselves out is a classic sign of denial—and doesn’t work. If you’re having trouble making repayments on a loan, credit card or mortgage, talk to your lender as soon as you can. You may be able to arrange a payment holiday or another way to lower your monthly payments. There are also many sources of free, independent advice, such as Citizens Advice, the Consumer Credit Counselling Service and National Debtline.

6. Missing Payments
It’s easy to forget a monthly repayment, especially if there are unexpected bills to pay. Unfortunately, you will not only be wasting yoru hard-earned cash on late payment fees but you could also jeopardise your credit history. Lenders are less likely to offer you the best deals if your payment record is patchy. You may also experience an immediate and painful hike in your interest rate if a payment is more than 30 days late.

7. Failing to Plan for Retirement
It may not seem a priorty now but retirement is going to come sooner or later and you need to prepare. The earlier you start a pension, the better. And you will have longer to build your fund. Talk to an independent financial advisor about the best options and don’t forget to review your plan regularly.

8. Not Being Credit Card Savvy
You may think you’re being clever by using low or zero per cent balance transfer rates but you’ll only come out on top if you pay off your balance before the introductory deal expires. Look for extra income to clear your debt, find ways to cut back on your spending or think about using a low-interest loan to reduce the burden of repayments.

9. Putting Your Identity at Risk
Every time you throw a bank or credit card statement in the bin or give personal details to cold callers, you are laying yourself open to identity fraud. And criminals using your data to borrow money and run up bills in your name. Always destroy documents showing your personal details before throwing them away, especially if they include financial information. Another precaution is to check your credit report regularly for suspicious entries. It is so effective that it’s recommended by the Home Office.

10. Forgetting to Reward Yourself for Good Behaviour
Cutting out all of life’s little pleasures will almost certainly lead to failure when it comes to beating your bad habits, so don’t be too hard on yourself and make sure you have a treat now and then. That way, you’re less likely to go on a financial binge.

Get Into Good Financial Shape

Sky — Sun, 08 Feb 2009 18:37:16 +0000

First things first, you need to be in control of how much is going in and how much is going out! Then you can look for ways to make life easier—and boost your income.

1. Create a Budget
Draw up a budget and work out where you’re spending small amounts of money often. Buying things like coffee or snacks throughout the day may not make you feel like you’re a big spender, but it all adds up. Making your own lunch and avoiding indulgent food purchases will make a real difference to the amount of cash you can put in the bank. Using up all the food you have at home helps, too.

2. Pay Off the Big Debts First
If you have credit cards, try to avoid paying only the minimum amount you owe, as this is normally barely enough to cover the interest. Focus on using your spare cash to reduce the balance on your bills, starting with the one that has the highest interest rate.

3. Get What You’re Owed
If you’re on a low income, check whether you qualify for help with your council tax or rent, and if you’re eligible for benefits. For example, if your family has a total annual income of less than 58175 pound, you may be able to claim Child Tax Credit.

4. Put a Little Aside
If you do have some spare cash after paying for essentials, try to put a little away each month towards an emergency fund. Then, if the unexpected should happen, you’ll be prepared.

5. Go Green
Cutting down on how much energy you’re using at home will not only benefit the environment but also your finances. Turning your heating down by one degree, making sure turn all the lights off when you leave a room and avoiding leaving electrical items on standby can make a real difference to the energy bills.

6. Stop Driving to Work
Try to find the cheapest possible transport option to and from work. Getting the bus, for example, may work out a lot cheaper than driving—while cycling to work costs even less.

7. Take in a Lodger
It might not seem like a hugely tempting idea, but taking in a loger will boost your income considerably. Under the Government-approved Rent a Room scheme, it’s ppossible to let a room in your house and earn some money without paying tax.

8. One Man’s Trash is Another Man’s Treasure
Try selling your unused or unwanted items. Even though you may not need that old chair any more, it might be exactly what someone else is looking for. You could try setting up a stall at a car boot sale, or use a website, which lets you put items up for auction.