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How to Cope Financially When You’re Out of a Job

  • August 4, 2021

In the best of times, it’s safe to say that juggling your finances can be a challenge. If you are dealing with reduced hours or if you are trying to manage your money properly, then you may find that it is hard to make ends meet. If this sounds like you, then you should know that there are things that you can do to try and make things much easier on yourself. Take a look below to find out more.

Find out what Benefits you May Qualify For

The first thing that you need to do is find out what benefits you might qualify for. If you have lost your job, then you may be able to get some supplemental income while you hunt for another position. Severance pay is quite common, so if you have been laid off then you may be entitled to a package. Unemployment aid is also available. If you have lost your job because you are experiencing a health-related issue, then you may be able to claim. There are many mesothelioma law firms out there who can give you some advice on that.

Take an Honest Look

It’s also very important that you take an honest look at your finances, so you can find out what you owe. Now is a very good time for you to review the debts that you have right now. This could well include car payments, any mortgages or even credit cards. This may be overwhelming at first, especially if you are adding up your debts for the very first time. That being said, if you see everything together, then this can help you to make a plan. You may be able to track your debt and money you owe by using a financial app too if you would find this easier.

Cut your Budget

If you want to use your budget to your advantage, then you need to look at how you spend your money. It might be helpful for you to create a weekly or even a monthly budget. This is where you create categories for bills and necessities. When you have done this, you can then prioritize the right things. You also need to look at how much income you are getting from various sources. Every bit can help here. Think about your emergency savings, any unemployment benefits you may have or even government-assisted programs. It is also a good idea for you to look back on any things that are nice to have, but you don’t need. Some of these expenses may well seem small, but you have to remember that they can easily add up. Some expenses that may fall into this category include streaming services or even subscriptions to magazines. You may also find that cooking at home instead of getting a takeaway on a Friday night is also a good idea, so make sure that you keep this in mind as much as possible. If you can do this, then you’ll soon find that things work in your favor.

 

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How To Prepare for your Child’s Financial Future

  • August 3, 2021

As a parent, you are always thinking of what is best for your child. You want them to be happy and healthy. But there is more to it than that! To give your child the best life possible, you need to prepare financially for their future too. Here are some things that you can do.

Start Investments As Soon as Possible

The first step you should take is to invest. During the first years of your newborn baby, it's a great time to start putting money away for their future. Setting aside some of your income each month will help you save up for that new car, college tuition, or down payment for a house.

Appoint a Nominee To Take Over Their Inheritance

It's tough to think about your child being an adult, but they will be one soon. As a parent, it is essential that you are prepared for the future and put in place plans so that everything goes smoothly when you're gone. 

One thing you should do is appoint someone as the recipient of any funds left after you die. This person is called the nominee and will take over any money left to your child in a trust fund or an inheritance, as well as all future assets that come into their possession. 

You can also try trust loans, where you give your child access to money that has been set aside for them.

Look for Partial Investment Plans

If you're not able to set aside a large amount of money each month, it is still possible for your child to have the financial future they deserve. One way is by looking into partial investment plans designed specifically for those who don't have a lot in savings or income.

Start Saving for College Now

As your child gets older, they will start asking about what happens when you're not around anymore. This is the perfect time to give them an answer and help prepare their future by setting up a 529 plan or other savings account specifically for education expenses.

Setting aside a college fund is the best way to manage your finances now so your kid can benefit from it in the future.

Purchase Health and Term Insurance Cover for Your Children

Continuing with the subject of preparing for your child's future, it is also essential to take care of their needs as they grow up. One thing you should do is buy health and term insurance cover for them so that if anything happens in life, they will be taken care of at an affordable price.

Create a Family Budget That Includes Contributions

If you are looking to make your child's future even brighter, but don't know where to start, try creating a family budget. Make sure they understand that it is their responsibility and not yours. 

Set aside money for them in each category, such as education expenses or savings, and help teach them about what happens when some months are better than others.

Find a Financial Advisor That Can Help

As you take on more and more responsibility for your child's future, finding someone who will assist you is essential. You should never have the sole responsibility of handling their finances. Besides, this person will not only guide them through their daily life but also plan for what comes after they turn 18.

In conclusion, there are many ways to prepare your child for their future. They will thank you then and even now as they grow up knowing that you're taking care of them financially!

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Money Growth Mistakes To Avoid

  • August 1, 2021

Money Growth Mistakes To Avoid

We could always use a little more money, no matter how much we have. The problem is that no matter how hard we work, how much overtime we put in, or how many things we seem to sell, we never seem to have enough. On paper, we should be in decent form. We work hard, and our pay reflects that. The problem is that life has a knack for turning it all upside down.

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How to Pay Less in Taxes Every Year

  • July 27, 2021

Want to know how to pay less in taxes?

Tax time can be incredibly expensive, overwhelming, and time-consuming, right? There are not many people on this earth that wouldn't want to pay less for their taxes and use that saved money on a vacation for their families!

But how do you go about paying less in taxes?

Well, if you keep reading, you'll learn the 5 proven, helpful tips and tricks to paying less on your taxes this year.

Pay Towards a Retirement Account

Retirement accounts are one of the most popular tax-reduction tools. And they serve two main purposes.

Anything paid into a 401(k) and IRA account are deducted from your taxable income. This, in turn, lowers your federal tax.

These funds continue to grow 100% tax-free for you until you decided to retire, which is another amazing benefit.

Write off Business Expenses, Even on Vacation

If you can combine a vacation with a business trip, you can deduct the expenses spent on anything business-related. This can include flights, a percentage of your hotel bill, and meals and drinks during meetings.

It's important to talk to a tax professional to calculate these expenses properly.

For more information on how to choose a tax advisor, click here: https://wealthability.com/blog/how-to-choose-a-tax-advisor/

Claim a Home Office Deduction

If you work from home, you can apply for a home office deduction. Although, there are a few boxes you need to tick first.

For example, you need to be using the office regularly and only for business purposes. Therefore, if you are using a spare bedroom exclusively as a home office, you can deduct rent and utility fees based.

Make Charitable Donation

Making charitable donations with payroll deductions, checks, cash is all tax-deductible. Over the tax year, these deductions can make a huge difference, but they are often overlooked.

Also, the Coronavirus Aid, Relief, Economic Security Act, and CARES Act allow you to deduct cash donations of up to $300 without having to itemize.

Hire a Professional

Filing your own taxes is safe if your tax situation is pretty simple, and can save you a lot of money in fees. However, if you have a more complex tax situation, a professional tax advisor can find tax savings you might otherwise miss.

A tax advisor is always up to date with the changing tax laws and will ensure that no mistakes are made, no laws are broken, and will seek to lower your tax bill as much as is legally possible.

Want More Information on How to Pay Less in Taxes?

We hope this article has given you a clearer idea of the tax tips and tricks that can help you when saving money on taxes.

We understand that tax time can be incredibly scary, overwhelming, and expensive. So we hope these simple tips have shown you how to pay less income tax.

Did you find the answers you were looking for about how to pay less in taxes? If so, check out some of the other articles on this topic and types of taxes on our website.

 

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Why Should You Use Budgeting Apps?

  • July 26, 2021

 

Having a track of your cash and how to invest is essential to everybody who makes an income. You should have a budgeting app to help you manage your finances and enable you not to spend a lot and end up with no savings or stress on covering your bills after every month.

One of the best ways to create a better budget for all your needs as well as keep track of all your finances is using a budgeting app. There are many budgeting apps globally, such Simplifi by Quicken, that you can use to follow your expenditure, manage your finances and see your regular expenses.

Before signing up for any financing app, make sure it is right for you by considering all the reasons why you need it. The following are some reasons why you need to have a budgeting app.

All Information in One Place

Most people today have many financial accounts. You may have more than three accounts from different banks. In addition, you can have a lot of credit cards. An average American citizen can have up to four credit cards. You may have almost a dozen accounts or even more to always keep track of. If you don’t have a budgeting app, you must go to several websites to check your balance.

Budgeting apps come with only one dashboard to represent all your accounts with all the information you need. Now you only click once to open all your accounts in a single app and view your balance, credit card accounts, and investments from different accounts.

A budgeting app helps you know how much you have, allowing you to purchase something when you want.

Automatic Alerts

Almost every budgeting app can help you have a clear track of all your finances. They contain a feature that allows automatic alerts regularly even if you fail to open the app.

For instance, an app may send you a notification when you receive a larger amount than usual in your account and help you know if it’s a fraud. You will also be notified about approaching the due date to clear certain bills, helping you never to miss any bill that can affect your credit score. You also get alerts in case your budget falls and opens the chances of expensive overdrafts.

You can customize your alerts to fit your needs and only get notified to meet the transactions or essential information or the ones you care about.

Easy Budgeting

Following and creating your budget may be one of the hardest things about managing finances. It would be best if you had discipline in your budget and tracked everything you spent.

Personal budgeting apps may handle almost half of the budgeting by automatically tracking your expenditure and categorizing every purchase. The app also allows you to categorize your expenses such as rent, entertainment, gas, and groceries.

When you spend or purchase anything, the app records and categorizes; after a month, you can view your budget and know the amount you have left and how much you spent that month. A budgeting app ensures you stay disciplined about your budget without spending more than your limits.

Avoid Mistakes

Financial mistakes can be very costly. If you miss a credit payment, specific interest charges may apply, and in case you fail to pay any fee, you may experience higher loan rates and reduced credit scores. Budgeting apps ensure you don’t make any mistakes.

However, if you have a budgeting app and receive alerts to clear certain bills, you will have great money management. It also helps you to make fewer mistakes.

Final Verdict

Managing your finances can be difficult, but it is an essential part of your life. A budgeting app helps you track and control your money by giving you access to your account in one place. You can also set up investing and savings account goals to help you save without bothering yourself.

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Are Digital Assets A Good Investment?

  • July 26, 2021

 

Investing in digital assets has become very popular in recent years. That said, while many people have been quick to invest, many old skool investors have been more hesitant to get involved. 

This hesitancy comes from the fact that digital assets are still relatively new. They’re not as heavily regulated as other instruments and they’re often a lot more volatile. On top of this, many people don’t really understand exactly what they are. A digital asset isn’t tangible in the same way that real estate or gold is - many people find it hard to visualise what they’re investing in. 

But what if this ignorance is stopping people from making money? What if digital assets are the future? This post offers a brief guide to some of the most popular forms of digital asset, as well as advice on how to invest.

Cryptocurrencies

Cryptocurrencies are digital currencies. Like real world currencies, they have a monetary value. Unlike real world currencies, they are not centralised to any government and have no cash equivalent.

The first ever cryptocurrency was Bitcoin - it was introduced in 2009 as a neutral currency to be used by businesses to get around currency transfer fees. Many cryptocurrencies followed in its path. There are now hundreds in existence. 

Cryptocurrencies have seen huge rises in value over the last decade. For example, Bitcoin increased 43 times in value between 2017 and 2021. These dramatic rises have been followed by dramatic falls - Bitcoin has almost halved in value since March. This volatility does make it risky.

By diversifying and investing in multiple cryptocurrencies, it’s possible to reduce the risk. It’s also important to buy crypto from a trusted exchange - you can find out how to open a cryptocurrency account here. Cryptocurrency needs to be stored in a secure place such as a cryptocurrency wallet. It’s worth spending time researching different cryptocurrencies before investing any money.

NFTs

NFTs (non-fungible tokens) are the collectibles of the digital world. Just like owning an original art piece or the first ever printed copy of a book, an NFT grants you ownership of an original digital asset such as an image, audio file or document. While there’s little to stop someone copying a digital image, an NFT is a certificate to prove that you are the owner of the original image - therefore controlling copyright laws.

Already several NFTs of popular memes have been sold for huge amounts of money. In other cases, companies have been cashing in by creating their own NFTs in the form of digital trading cards and other collectibles. You can check out this post for some of the best NFT projects. NFTs are thought to only become more popular in the next few years. Of course, their newness does make them slightly risky.

There are specialist platforms set up for buying NFTs. You can usually only purchase NFTs using a cryptocurrency such as ethereum. 

Domain names

Domain names are one of the oldest forms of digital asset. Some domain names can be worth thousands and even millions of dollars due to containing a word that is in demand (such as ‘business.com’ or ‘insurance.com’). Money can be made from buying a cheap domain name that later becomes in-demand. New words and acronyms are constantly being invented - if you happen to own a domain name that contains one of the words or acronyms it could be very valuable. 

You can buy domain names via domain registrar websites. This guide offers more information on investing in domain names.

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How To Choose The Right Insurer

  • July 24, 2021

Choose the right insurer

Have you chosen your home insurance? Health insurance? Contents insurance? Car insurance? Yep, we get it, too, there are far too many insurance options out there! Every single one of these are necessary to your family, but choosing the right insurer for you all isn't always easy to do. There are so many insurance companies out there in the market and every single one of them has a range of plans that you can consider to suit your needs.

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How to Manage Personal Finances When You’re in Debt

  • July 22, 2021

Managing your finances can be difficult, especially when you have debt. It feels like a never-ending sea that will cover you at any moment, especially when you don't have the money to pay for it. According to the finance site Value Penguin, the average credit card debt in the US is around $6,000, with approximately 45.4% of people having some form of credit card debt adding onto the average debt of $90,460 that each household has. Comparing this with college students who have an average debt of $29,900, it's no wonder many people feel as if things are helpless for them. Fortunately, there are ways you can manage your debt and help to relieve some of the pressure you're feeling. 

Why Managing Your Personal Finances is Important for Your Financial Future?

To answer this question, you need to know more about the kind of debt that exists. Many different types of debt can affect you. They are: 

  • Secured Debt: This is any debt that is acquired by providing collateral that is used as security. This type of lending is often used by individuals who need cash but don't have a good credit rating.
  • Unsecured debt: This is any debt that is not secured with collateral, such as credit card debt, medical bills, or student loans. This is what most people encounter and is a significant burden on personal finances. 
  • Revolving Debt: This type of debt isn't due until the end of the billing cycle (or monthly payments). Once again, this can include credit cards and student loans and include home equity lines of credit. 
  • Mortgage: This is simply a mortgage, money that is that owed on a property. It's an agreement that is made between the lenders and borrowers and is paid back over time. 

These debts can have a profound effect on your future and any plans that you may make. For instance, any debts that you've built up over time could affect your retirement plans. It also could profoundly affect any inheritance that you might want to leave for your children. As well as have a massive impact on any future purchases you wish to cover by negatively affecting your credit score. It could also make it extremely difficult to put aside money for emergencies. 

What Can You Do to Start Managing Your Money Better Today?

There are many things you can do to start managing your finances. One of which is understanding the personal debt you have and what you will need to do to pay it. You can do this by making a budget or setting up a repayment plan. You can make a budget and payment plan by figuring out your income and your expenses, after which you can choose to make a list of the highest and lowest debts you have and need to pay. You can also do this with the expenses you have before taking care of your debts. You can begin paying off the lowest amount first before working your way up to the debts that will cost more. Doing this will help you build your credit. 

While making a budget or financial plan, answer these questions: 

  • What are your financial goals?
  • What can your income pay off? 
  • Will your expenses get in the way of you paying this? 
  • What are your payment plan options? 

Once you have these answers in mind, it's time to create a tailored budget for your household. 

Set up a monthly budget and stick to it as best you can.

It can be challenging to stick to a budget once you made one. You will often want to buy things, but it's important that you stick to the budget you set for yourself, so you don't find yourself overspending and ending up in more debt. Your monthly plan should include your income for that month, your expenses, including any money you have leftover after you've paid your costs which could go to paying your debts, and any money put aside for your savings. 

Make good use of Mobile Apps and Payment Tools Given by Banks. 

Fortunately, we live in a world where technology has provided some great tools for managing our finances and debts without any issues. For example, banks such as Provident State Bank provide online banking services that make it easier for customers to see how much they spend from anywhere, whether at the supermarket or home. Using these apps to manage your finances can make it even easier to track. They can also tell you how much your savings are or if you're overspending. Some banks even offer payment calculators that allow you to make a budget that you can handle to pay off your debts one step at a time. 

Build a Healthy Credit Score

Your ultimate goal with taking care of your finances isn't just to ensure that your debt is cared for but also to ensure that your credit score builds over time. Paying off your debts can help you improve and will ensure that you will have a bright financial future. You can maintain a healthy credit score and raise it by keeping on top of bills, building on your savings, and taking care of your credit card. Doing this will ensure that your credit score is healthy and will encourage you to keep to your monthly budget. 

The Bottom Line 

While it can be challenging to keep up with the increasing debt in society, it's essential that you keep on top of your debt since it can cause significant issues for you and your family. By making a monthly budget, you can track and keep on top of your debt and spending. By using bank apps and other resources, you can keep on top of your repayments, and by keeping track of your credit score, you can improve your overall financing so you can ensure a better future for you and your family. 

If you're interested in learning more about managing your finances, you can get in touch with a financial planner or advisor or speak with your local bank, who will be happy to give you helpful advice. 

 

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Read This Before You Decide To Borrow Money

  • July 22, 2021

 

At some point in your life, you’re probably going to have to borrow money be it for a house or something else. But before you do, you should carefully consider your financial situation. Borrowing money can get expensive. Here’s what to consider: 

Ask Whether Borrowing Will Substantially Improve Your Life

We live in a culture where borrowing money is the norm. People do it all the time. It seems like the right way to organize your finances. 

However, you should think carefully about whether it will improve your life. Just because everyone else is doing it, doesn’t mean that you should too. 

Ask yourself whether buying something that costs a lot of money will substantially improve your ability to live and enjoy your life. Sometimes when you consider it deeply, you’ll conclude that it is worth borrowing money from somebody else, but not always. 

Check You Have All The Right Paperwork

When it comes to borrowing, paperwork is important. Both parties need to know where they stand. 

If you don’t have good paperwork, you can download a free promissory note template. This offers prompts for all the legally-required sections you need to include in any agreement with somebody else. 

Ask Yourself If It Will Affect Your Relationships

If you’re borrowing from friends and family, it can put a strain on your relationship with them, particularly if you find that you can’t actually pay them back.

Most lenders you know will offer you a lower rate than the going market rate. This automatically puts them at a disadvantage because it probably isn’t a true reflection of the risk you pose. 

Before you borrow money, therefore, consider how it might affect your relationships with others. Again, think about whether you need the money so much that you need to borrow from them rather than through the regular channels. 

Make Sure You’re Ready For The Long Haul

Clearing a backlog of debt can take a long time. For that reason, many people who borrow can wind up feeling stuck in their situation. Month after month, you have to pay back your creditors. It can take a long long time. 

Some people can mentally deal with financial situations like these. They just accept them as a part of life. But other people don’t like them at all. In fact, it can be a major reason for mental health problems. 

The only way you know whether you should go into debt is to ask yourself whether you have the temperament to deal with it. If you don’t, then steer clear. 

Accept That Your Budget Will Be Less Flexible

You have control over most of your expenses. But you must repay the creditor every month according to a schedule. There are no exceptions. 

Because of this setup, your overall budget will be less flexible. You’ll be less able to ramp up spending in some months, and pare it back in others. Some of your income will automatically go to paying back your creditors. 

In summary, borrowing money isn’t necessarily a bad thing. But you must consider the pros as well as the cons.

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A Comprehensive Guideline That Will Help You Manage Your Money

  • July 20, 2021

There is more to becoming financially stable than amassing great wealth. That's why you need to learn the money language and ways through which you can manage your finances, creating room for wealth growth. Many people are struggling with debts and overwhelming budgets due to poor money management techniques. Detailed below are guidelines that, when followed, will equip you with elementary financial management skills.

Track Your Expenses

Tracking your monthly bills is the first step to money management. You can never manage your finances without understanding where your income goes. There is a tendency for households to look for credit companies for loans without understanding how they'll use them. Unnecessary credit lowers your creditworthiness while impairing your future financial freedom. Statistics show that most people apply for loans to handle and take care of expenses. Looking for a loan for necessary and justifiable spending is crucial, hence the need to scrutinize Maxlend to affirm the lender's reliability.

Through exploring your expenses, you will manage to cut off unnecessary expenses. For instance, if you have a monthly subscription that you no longer use, it would be best if it's cut off. The beauty of managing your expenses is distinguishing what expense is justifiable and which one to dispense with.

Track Your Income

After tracking all your expenses, you should consider examining your monthly income. The income you generate services your expenses. How well does your income service your expenses? Comparing your income to your monthly expenses helps you understand whether you generate enough income to meet your expenditure. Financial management demands spending less than your earnings. Your earnings must service your expenses, support your saving plan and retirement policy. Therefore, scrutinize whether your income is enough to save for emergencies, retire, and meet monthly bills.

A study shows that many people are unable to service a $1,000 emergency without overstretching their financial reach. The best way to harmonize your income and expenses is revisiting your budget, hence cutting down on some expenses. Alternatively, you can establish a side hustle to help you fill your financial gaps.

Embrace Budgeting

Budgeting is the prerequisite to managing your finances appropriately. Nonetheless, most people don't understand how requisite a budget is to financial liberation. There is a misconception among the populations that budgeting entails tracking down one's expenditure. There is more to budgeting than designating fractions of your income to household expenditures.

Budgeting will, then, help you make and implement major financial decisions. A budget instills the art of responsibility and a healthy spending trend that loathes impulse spending and buying. When budgeting, ensure to incorporate your monthly, savings, and future needs.

Looking for Money Saving Channels

Keenness must be employed when buying products and services to identify ways to cut costs without jeopardizing quality. Therefore, exercise due diligence when procuring services and products, which helps you compare prices. For instance, when buying an auto insurance policy, you should consider scrutinizing coverage from different companies to identify the most affordable without depriving quality. Additionally, you can look for discounts, cashback offers, coupons, and other money-saving techniques and channels. You can save or use the money you save for other household development needs.

Examine to Manage Your Credit Life

Managing your finances demands improving your creditworthiness. Therefore, examine your credit score and report. Your credit card account usage and payment pinpoint how reliable you are credit-wise. Therefore, take time to examine ways to advance your credit score, and one is avoiding unnecessary credits. Improving your creditworthiness requires an upfront understanding of your debts. Therefore, examine pending debts and loans, including student loans.

The art of tracking your income, expenses and creating a budget enables you to manage your money effectively. Nonetheless, it would help if you diversified your household income generating techniques through saving and investing. Additionally, plan for your future financial freedom.


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