So you’ve decided that you want to start your own business. You’ve built your business plan, including revenue projections. What’s the next step? Funding. How exactly are you going to start this business, especially if you do not have all of the capital to get going? Acquiring a loan from the bank is not always the easiest option, but thankfully, it is not the only option. Below are a few options to get your business up and running.
1. Grants
Government grants are a great option because they are not required to be paid back. However, there are a few downsides. Grants usually come with stipulations, such as strict application requirements and periodic updates on the status of your business. Entrepreneur’s 11 Grants for Women-Owned Businesses You Need to Know About is definitely worth a read. 2. Online Lending
This is quickly becoming another way to receiving business loans. The biggest advantage is they are much faster than the typical bank loan process. A few sites gaining popularity are OnDeck and Kabbage, which are both rated A+ with the Better Business Bureau (BBB).
3. Crowdfunding
Within the past couple of years this option has become a popular way to raise money for anything from help with medical bills to college tuition. Sites such as Kickstarter and GoFundMe allow users to pool from multiple potential investors. There are regulations on some platforms, such as the site keeping a percentage of earnings.
4. Friends and Family
The age-old way of getting a loan is still very effective. Lenders only invest in businesses they believe in, partially because they trust the founder. This option allows for more flexibility with matters such as length of repayment and interest rates. As long as you show your loved ones how serious and dedicated you are by having a strong business plan, it’s worth it asking them to invest in you.
The best way to find funding to jump-start your business is to do research. A great tool is Fundera. It allows users to compare a list of lenders based off of the information they entered about their business. Another great way to do research is to ask other entrepreneurs with a currently running business for advice; they were once in your shoes and will most likely provide great financial pointers.
Summer is usually the busiest season for travel. Since this time of year when many people travel for vacation (and sometimes work), prices tend to be high for travel related needs (airfare, hotel, etc). Here are some tips to ensure you don’t go broke by the time the Fall season rolls around:
1. Save for your vacation in advance
Most people tend to book vacations using the money they have at the time. Having a savings account (preferably online) dedicated just for traveling funds is a better alternative. This allows you put a little bit aside each month, instead of incurring the cost of booking the vacation all at once. It also prevents you from splurging – you can only spend what is in your vacation fund!
2. Travel during offseason
Traveling is not only limited to the warm months. If you are looking for warmth, there are many places around the world that are warm year round (such as the Caribbean). Offseason prices are usually significantly cheaper and allow you to get the most bang for your buck.
3. Book your vacation at the right time
Booking a vacation way in advance is not always the best solution. Sometimes, it only requires a few weeks. BuzzFeed has a great guide for when to book vacations. Google Flights also has a great tool to search flights from all airlines and it will give suggestions for cheaper days to travel.
Traveling is a great activity; however, it doesn’t have to break the bank.
Are there any other tactics you use when booking your vacations?
We often draw a blank when we hear financial terms such as interest, 401(k) and money markets. We scramble to Google these terms but still may not be able to clarify exactly what it all means. Below are 10 common financial terms and how they may apply to your life.
Money Market Accounts (MMA): These are accounts similar to your typical savings accounts at banks; however, there are two key differences. Money Market Accounts typically require larger daily minimum balances (usually anywhere from $1,000 to $2,500, although some online banks are removing the minimum deposit requirement) and they pay more interest (usually an average of about 1.0% APY). MMAs are a good option for those looking to minimize financial risk (as opposed to stocks and bonds).
Interest vs. Interest Rate: Interest is the amount it is going to cost you to borrow money. Interest rate is described as the percentage paid for the use of the loan. Interest rates may be variable or fixed and are typically higher on riskier loans.
401(k) Plan: This is the most common retirement account, provided by an employer. Money is deducted from your paycheck pre-tax, therefore lowering your taxable income (that’s a good thing!). Another great benefit is employer matching. This is when employers match what you are contributing (usually up to a certain percentage or dollar amount); it’s basically free money!
Stock: This represents ownership in a corporation and part of its earnings. To name a few, the benefits to owning stock are: growing your money (provided the company is doing well) and the ability to defer paying your taxes.
Bond: Bonds are another form of a loan; it is money leant from an investor to a government or corporate entity. Yes, the government and corporations borrow money too! Bonds are a good investment opportunity because they are a bit safer than stocks. If a company were to go bankrupt, creditors (issuers of bonds) are paid before those who hold stock.
Premium: This term may sound a lot more complicated than it really is. Simply put, premiums are the price that a bond or stock sells above its issue price.
Equity: This is the value of ownership or the value of the shares in a company.
Secured vs. Unsecured Loans: These two terms are commonly misunderstood, especially when it comes to student loans. Secured loans require the lender to put up something of value against the loan; if the loan is not paid, the lender has the option to use that item to satisfy your debt. A secured loan gives the lender security. An unsecured loan is just the opposite; nothing of value is needed to obtain a loan. Student loans, as well as credit cards, are unsecured loans.
Refinancing: Sometimes a borrower may have a loan with such high fees and interest rates; A new loan is then taken out to pay the old one, essentially with lower fees and interest.
Short-term vs. Long-term Investments: There are many types of investments. Short-term investments are great for financial goals set for two years or less, such as money market accounts. Long-term investments typically carry a longer maturity date, such as retirement accounts.
What are some difficult financial terms you’ve had to research?
Being financially sound is more than just earning, saving and properly managing your money. There are additional aspects to consider when it comes to thinking about monetary matters. Here are the basics to becoming the financially wise woman you were destined to be:
Saving is more than stashing your money in a shoebox:
Of course, it’s great to have a savings account through a bank, however, there are many ways for you to save what you earn while earning interest. Sites such as mint.com and nerdwallet.com are great online tools for searching for interest-yielding savings accounts such as online savings accounts, CDs and money market accounts.
Investing is also a key part of financial growth:
The thought of investing makes some women’s heads spin but if done properly it can be very lucrative. Once you have satisfied all of your financial obligations, determine if you have any extra or discretionary funds left over. If you do, it is wise to look into investing. Some investment options are: real estate, mutual funds and ETFs, to name a few. Saving for retirement is also a crucial part of investing. Some employers offer 401(k) plans or plans such as IRAs are options you can open up at anytime without the assistance of an employer.
Doing research will ensure that you are finding what’s best for you:
Doing research is key when it comes to money matters. Whether it’s reading finance books, articles or attending seminars/classes, it is wise to not only familiarize yourself with these topics but become well educated. This will allow you to see that money is just a tool and not something to be afraid of.
[vc_row][vc_column][dt_fancy_title title=”money.howstuffworks.com” title_align=”left” title_size=”small”][vc_column_text]It is a known fact that women earn about 78 cents for every dollar that men earn – also known as thegender pay gap. Because of this, many women are forced to set aside a majority of their earnings for debt while putting little towards savings and investments. Debt is an overwhelming part of life; however, it is easier to eliminate than you thought. Here are some crucial tips that will help you to manage your debt given the current state of the economy:
1. Assess your debt
It’s been said that the first step to recovery is admitting that a problem exist. Grab a pen and notepad and begin to make a list of all your debt, starting with the lowest balance. Be sure to make a note of the interest amounts and due dates for each. After calculating the total amount, you are now forced to come to terms with the reality of your debt.
2. Write down and fix your spending habits
A good rule of thumb is to begin tracking all expenses, no matter how big or small, from today to roughly three months back. Doing this helps to see your spending habits and identif which expenses are truly necessary and which ones can be cut out. Other ways to find save money and cut out additional expenses is to negotiate your current bills with creditors such as your cable or mobile service provider. It never hurts to ask; the worst they can say is no.
3. Create and implement a debt pay off plan
The “extra” money that you were able to save from cutting unnecessary expenses can be put towards paying off debt. Every month, you should pay the minimum owed on each bill (starting with the smallest debt) plus the “extra” money. Be sure to add any “unexpected” money as well such as income tax refunds. If you follow this plan each month, it will help to eliminate your debt much faster.
Being in debt is not the end of the world. With the discipline and dedication, you can get back on track to financial freedom. Getting rid of your debt is one of the most liberating things one can do. Just remember, you have control over your debt; don’t let it control you![/vc_column_text][/vc_column][/vc_row]
Money remains the #1 stressor for American Women. A study by MarketWatch in 2015 reported nearly 62% of Americans are living paycheck-to-paycheck. These Americans reported having no emergency savings whatsoever. Moreover, a study by Prudential reported only 14% of women feel confident enough that they will have enough money after retirement to maintain their current lifestyle. A lot more women are become the breadwinners of their family; however, they remain unaware of how to secure their household financially for the long-term.
Financial independence equals freedom
From a young age, Americans have been taught to get a degree, get a job so that you will be able to support you and your family, and save for retirement for the next 40+ years. Yes, this is a good financial foundation; but, what happens when unexpected, yet typical, situations arrive? Do we borrow from our 401(k)? Well, that limits your savings and you are essentially losing money. Do we take out additional lines of credit? This option has led to approximately $884.8 billion in credit card debt for Americans. A savings outside of retirement should be another financial goal for women.
A lot of women do not know enough about the importance of saving outside of retirement and investing. Many women are either scared or uneducated about all of the aspects of financial planning. A study done by Fidelity Investment shows that 92% of women are eager to learn about financial planning; however, only 47% are confident talking money and investments with a professional and 8 in 10 refrain from having financial conversations. We desire to be more financially secure, yet we are not taking the necessary steps to do so.
There is no better time than now.
Today is a great day to start discussing and investing in your financial future. It has been said that if one does not take action within 24-48 hours, then they most likely never will. The first step does not have to be something massive; it could be something as small, yet crucial, as opening an online only savings account.Magnify Money is a great site to help you get started toward a more secure, liberating financial life. Attending financial seminars is another great option. You are not alone – never be afraid to ask for help![/vc_column_text][/vc_column][/vc_row]