Something that we as a nation have lost track of. Our nation has become obsessed with instant gratification. How much do you need in your nest egg in order to retire comfortably? For everyone, it is not equal. Some people enjoy the simple life, and others like to spend lavishly. Whatever you want to do, later on, one thing is true: Money gives you financial freedom in order to do whatever you like. Here are some tips on how to save the money you need in order to make the most out of your golden years.
Save 10% of your income
Whatever you make, whatever your income bracket, it’s not too little to say that you can’t save 10% of it. This way, you will not feel the urge to touch it, and after your working years have passed, you can look back and see how much it has grown. Buy bonds with it or put it in a Money Market fund. Even if you don’t invest it, the money saved isn’t going anywhere, although investing it is probably the best idea in today’s society.
Also, if you feel that you can muster up the urge to live like a broke college student for a couple of more years, you can save 20%, even 25% of your income. Challenge yourself, but don’t suffocate yourself.
Try not to use Credit Cards
We as humans like to take the easy way out. This applies to credit cards. The idea that you are just swiping a plastic card for a couple of hundred dollars doesn’t seem that bad, but when the end of the month rolls around, you have a huge bill sitting in your mailbox and all you can do is pay the minimum payment. Things like this snowball EXTREMELY fast.
With credit card companies charging up to 20% interest on their money that you spend, it is never a good idea to use plastic unless you are buying something large like a refrigerator, or if you absolutely must. Pay everything with either cash or your checking account. This makes sure that you are in the clear, and you don’t have debts you “may or may not” be able to pay later on.
Remember to contribute to your 401(k). Some companies match your deposits in your 401(k), which is basically free money. If every time you earned $10 someone gave you another $10, how is that an offer you can refuse? Although you will not be able to touch that money (you can, but remember the penalty is HEFTY), if your employer matches the amounts you put in, you are well on your way to retiring comfortably!
Put your raise to good use, not buy a new car
Besides, what’s wrong with your current car? Too often families try to upgrade their lifestyles all too quickly. A layoff or recession happens, and they somehow find their lives turned upside down as they sign a foreclosure and drown in debt. Don’t push your wallet too hard, because it will burst. If you get a raise at work, put that extra income toward a fund of some kind, whether it be a college for the kids or your own retirement. You’ve been living really well up until this point without that extra income, so why do you need it now?
Put your money into an IRA (Individual Retirement Account). This money like a 401(k), incurs penalties for withdrawing early, so do not touch it. Instead remind yourself that this money saved is money that will grow exponentially, money that could be put to good use as a necessity later. Another two words: Tax advantages. Money contributed to retirement is qualified for tax advantages by the government. Now, where are you going to see that?
It’s no secret why compounding interest is called the “Eighth wonder of the world.” The money grows on itself at an alarming rate. It’s a bit like a turbocharged automobile. It is slow to startup in the beginning, but near the end the progress is amazing. Compound Interest takes your principle and earns you a percentage interest based on that principle. If you successively use the previous period’s principle added to the interest you earned in your previous period, that is considered your new principle. It grows based on time. That is why starting early is so important. Make time work for you, not against you.
One thing to remember: The average American spends about 18 years in retirement. If you want your retirement to be filled with joy; If you want your retirement to be filled with smiles with your family, never having to worry about money, then learn to put some of your money away and make it work for you. Nowadays, many people are working until they are 70+ years old. That’s a horrible way to live, but hey, that’s the choice they made in their youth. Be smart about how you use your income.
Obtaining a home equity loan after your bankruptcy may be more difficult than you think.
Lenders require both the lapse of time and good credit history after discharge from bankruptcy. Unlike payday loans that are possible to get approved for even if you have a bad credit score (find out more about payday loans here – https://www.elcloans.com/), home equity loan lenders are hesitant about approving loans for people with poor credit history. Some require at least 5 to 7 years.
Many people feel that offering a loan to someone who recently got out of debt or bankruptcy is like offering a liquor license to someone who recently graduated from rehab. The question should is, “Are there options for those who need a financial boost after bankruptcy?”
Treatment of Chapter 13 versus Chapter 7 bankruptcy
In considering you for a home equity loan after bankruptcy, lenders will look at whether you filed a Chapter 13 bankruptcy or a Chapter 7 bankruptcy. Lenders will sometimes look more favorably upon a home equity loan applicant who filed a Chapter 13 bankruptcy. This is simply because in a Chapter 13 bankruptcy, you pay your creditors through a payment arrangement, while in a Chapter 7 bankruptcy your debts are erased.
Whether you filed Chapter 13 bankruptcy or Chapter 7 bankruptcy, lenders will look at how much time has elapsed since the discharge of your bankruptcy when considering you for a home equity loan. Lenders generally like to see at least two years and sometimes four years between the discharge of your bankruptcy and your application for a home equity loan. This time-lapse shows lenders that you have had sufficient time to get back on your feet and get your financial affairs in order.
In addition to the lapse of time after bankruptcy, lenders will want to see that you are establishing new credit accounts. You will need to make purchases on credit and pay those accounts on time. Lenders want to see not only that you have established new credit accounts, but that you are able to manage those accounts effectively.
Lenders will examine your credit report and look to see that you have not left any bills unpaid after bankruptcy. Lenders will be unlikely to approve a home equity loan application if you have not established any credit after bankruptcy. The lender needs to be shown that you have the ability to manage your finances and take on the responsibility for the repayment of the home equity loan.
Lender treatment of your Chapter 7 or Chapter 13 Bankruptcy
In general, lenders treat either type of filing in the same manner. You may have filed a Chapter 7 bankruptcy, which allows you to erase the majority of statutorily erasable debt or a Chapter 13 bankruptcy, which will result in a payment plan with each of your creditors. No matter which type of bankruptcy you have filed, lenders will require both a lapse of time from the discharge and establishment of new credit before considering you for a home mortgage after bankruptcy.
Time must elapse before applying for a home equity loan.
Lenders will require a lapse of time of two to four years from the discharge of the bankruptcy before even considering granting you a home mortgage. A lender wants to see that you have had sufficient time following the discharge of the bankruptcy to reestablish yourself and your financial affairs. Unfortunately for most lending institutions, this is a mandatory requirement that may prohibit you from obtaining a home mortgage within the first two to four years following your discharge from bankruptcy.
How to re-establishing your credit history
Even after the requisite two- to a four-year waiting period, before a lender will consider you for a home mortgage, a lender will want to see your ability to re-establish your credit.
New credit shows the lender that you have taken and can handle the responsibility of managing your credit accounts. Lenders will want to see at least two years of purchasing and paying the new credit on time.
This means with the new credit that you establish, following the discharge from bankruptcy, you must make all payments on time and according to the payment contract. You must be establishing good credit for a lender to consider your application for a home mortgage after your bankruptcy.
When using the internet, phone listings or maybe just a referral from a friend you should always make sure to double-check and ask the company if they give free quotes on debt consolidation and always look around for the best deal, because there are many companies out there willing to work with you, now all you have to do is find them.
In addition to the Internet, there are several options available to those with a tarnished credit history such are credit counseling services. It’s good to know that there are avenues to take in life when living with debt…a person doesn’t have to settle for high interested rates and a lifetime of a bad credit reputation.
It is quite understandable that in order to start any new scale small business, capital plays a major role. This can be solved by taking loans from any financial institutions such as credit unions. So find out how you can apply for a start-up loan for your new business.
Be Aware Of The Reason And Amount Of The Loan
It is quite obvious that any small business owner will be aware of the reason for which he needs the loan along with the loan amount that is required. If it is a start-up business then it is not true.
Start-up owners might be in the procedure to determine the number of funds needed and why it is needed.
Whenever there is a loan taken from any bank by any business owner, it has become a debt to the business and to the owner as well.
So in order to reduce the risk factor, there should be proper research about the reason for taking a loan by preparing financial statements which actually helps to understand the requisite.
Pay A Visit To The Local SCORE As Well As The SBDC Offices
A start-up business owner always wishes to gain some advice as well as assistance from expert executives.
In order to open a start-up, the visibility of the idea and executing the same is the biggest challenge and that part is one of the crucial among all, with a help of an experienced person it can be reduced as they understand the requirements better than a newbie.
There are several organizations such as SCORE, a non-profit entity that has a volunteer group of retired business executives apart from that there are Small Business Development Centre which is an integral part of Small Business Administration that can help small business owners with the process of Small business loan application.
Check Your Credit History And Score
When you are trying to take a big step before that you need to learn how to walk and that’s where your credit score comes into the picture. Whenever there’s a startup your credit history turned into your business history. So before you take a step forward it is always advisable to look into credit reports. Something around 700 or more than that would be great and it will definitely increase the chance of getting a loan with a very hazard.
Review Your Options For Borrowing
Large banks are mostly deal with bigger clients who got a brand name, a proper set up and Goodwill but for a startup above mentioned things are yet to be achieved hence it is always preferable to approach the commercial banks or a credit union and even if you are member of the local credit union, you can directly connect the loan officer and convince him with the business idea you have.
Even they turn you down there are several microfinance loans that can create a loan to the startup. You should opt for every possible option.
Create Your Business Plan
Whenever you are asking for lending money from any financial institutions, the reason should be as strong as they can’t put it down and it has to be crystal clear.
A good business plan is necessary because the competition in the market is very high so your idea has to be unique.
Before you get into this you must secure that your business plan has components such as financial statement, the value of the assets which are going to be used to secure the loan along with that a thorough market analysis of the market your business will serve.
Make A Presentation and Book the Appointment
No matter how good you are at what you are going to do, if you can’t persuade the loan officer then all the efforts will go into the vein.
So in order to avoid such incidents, you need to prepare a proper business plan and a presentation that will force the person to look at it again and will also help him in understanding your basic need for this start-up loan.
There are several things such as financial statements, charts, graphs, etc. but the part which actually plays a pivotal role in this is the executive summary.
Loan officers hold a notion about this summary, if it’s distinctive then will definitely put some interest in it. Make an appointment with the loan officer and ask them to provide you some time so that you can explain the idea to them properly.
The presentation needs to be compendious and methodical.
So if you are planning to start a new business, then you must be aware of start-up loans. If you are going to consider a start-up loan for financing your new business, then collect some knowledge of how you can apply for it. Follow the above-mentioned ways to get one.
It is challenging for a new venture to get approved of a start-up loan from a bank or private loan provider for a business start-up.
New business loans are very risky loans that any bank or lender might face. So anyone will be not much sure of start-up loans.
Why Is Business Start-Up Risky?
If you wish to know why new business ventures or start-ups are risky for lenders, then have a look here. Lenders always expect borrowers to have:
Capital: Business assets that are utilized for creating products and services and that which can be changed into cash for making payments on the loans for business. Any new business usually will be having a few business assets.
Collateral: Cash for contributing to the new business. Any new business owner will be having very little collateral until he can make use of personal assets or there is a co-signer with some assets for pledging.
Capacity: A proper track record for showing that the business has the potential of generating sufficient money for repaying the loan.
Character: It is a good credit rating. A business owner with a good credit rating such as a business credit or a personal credit does not mean that he will be able to get the approval of a business loan. But if he has a poor rating it will be quickly turned away.
Reasons Why Banks Refuse Start-Up Loans
Absence Of Experience: Banks are seen to deny start-up loans to a person who has not a minimum working experience of 1 year in the profession.
Absence Of Management: Lenders do not feel comfortable with a new business start-up that has no powerful and expert management team for adding their assistance to let the business grow.
Absence Of Customer-Base: It is one of those circumstances, you will not get a loan approval until you have any customer, but you can also not start the business and get the customers without getting a loan. If you can make them believe that you are having some potential customer backup it can create a good impression on any lender.
For instance, mentioned are some typical replies from banks to a young man who was looking out for a start-loan to begin his professional practice.
Banks will simply say that they do not offer any loans to any start-ups. You can move to other banks. But it will take time for finding the perfect one.
A bank will be giving you a certain amount ($60,000) that is the limit for SBA express start-up loans.
So before talking to a bank, contact the SBA. Learn about their criteria. Few banks are ready to trade in with the additional paperwork as well as the hassle of the SBA loans. You can contact SBA and get the tentative approval for reducing the objections that the bank put.
Does Personal Credit Have Any Impact On Start-Up Loan’s Approval?
A new business will never have a business credit of its own. So the bank needs to have a look at the credit of that person who owns the start-up. Banks are seen to frequently say no to start-up loan appeal as the borrower’s personal credit includes problems. For instance:
The problem can be as small as a negative rating on a borrower’s credit report. But it will be all that the bank will be considering and denying your start-up loan.
A low credit rating will affect your ability of obtaining a start-up loan. Nowadays, any credit score below 800 will be questioned. So you must know your credit score and work for raising it.
Can You Get Your Start-Up Loan Sanctioned?
A great way of getting a start-up loan sanctioned is by crafting the plan of your business carefully for answering each and every question that a loan provider may ask along with those objections that can get raised.
Show may you plan for contributing capital to your business. What will you be contributing to your business on your own? What are you already having?
Show from where you will be bringing your collateral as well as credit report of you along with the co-signer if present.
Show the management that guides you, the advisors as well as executives you need to guide your business fast to profitability.
Add a spreadsheet to show when the business will be having a great cash flow and be sure that you will spending less than you will be bringing in.
Show the experience you have with any similar business or that you have expert management team beside you.
So if you are thinking of starting up a new business, look out for a loan for funding. Start-ups loans are of great help if its application is approved. Apply for funds from a private loan provider and get the loan approved for your start-up.
Is a start-up loan a great idea for beginning your new business? All businesses will require cash at the time of start-up. If you have an idea of a new venture and wish to start it, then you must solve the funding issues. Mentioned are some benefits of start-up loans.
You Will Have Funds To Start Business
Starting a new business will require sufficient working capital for affording initial costs like inventory, equipment, rent along with payroll and other important expenses. Depending on the industry of your business, you might require a higher amount than you can take from your savings, credit cards or family and friends for beginning your start-up. If your business needs a huge initial investment like inventory or maybe equipment, a start-up loan will be one best way to borrow the required funds.
Thus you can ensure that you are putting forward your best foot as you begin this latest venture as well as have the required funds for making it occur. You can get your new business venture financed by taking a start-up loan from banks and other financial institutions. Many private loan providers are also accessible these days. You can look out for them online, check their criteria, terms, and conditions before selecting the most suitable one for your business need.
Simple And Fast Disbursal Loan Procedure
Most of the financial institutions such as banks and some private lenders are seen to cater to a large business loan’s demand by shifting their focus upon start-ups. With the support of the government as well as a positive economic view favoring these ventures there is a huge scope for financing new business and expansion.
The digital lending platform takes care of this market and offers business loans that work properly for both the borrower and the lender. The loan procedure is simple, friendly as well as hassle-free. There are many companies that will offer start-up loans in an easy 4-step procedure that will ensure the upgraded customer experience. You just need to fill up the application form that is available online and upload the necessary documents.
The simple, user-friendly and less tiresome documentation procedure is accompanied by timely loan disbursal to the borrowers. Some companies make sure that within 72 hours the loan gets disbursed.
You Can Hold Your Ownership
Start-up loans may act as alternatives for seeking financier, who can ask for some equity share in your company. If you finance your start-up with a loan, you will be having more options when you will consider prospective partnerships.
For instance, you will get the opportunity to select financiers depending on strategy instead of monetary value. Also, remember that financiers might have the authority to take other decisions that will affect your start-up directly. If you wish to maintain control over your new venture, then it is always best to apply for a start-up loan.
Competitive Rate Of Interest
Banks and other financial institutions such as some NBFCs along with private lenders and companies offer start-up loans at a very competitive rate of interest. Some lending companies offer start-up loans to small as well as a medium ventures at a great competitive rate of interest, very basis processing fees with completely no hidden costs. Thus they are the much-preferred lenders in the current market of star-up loan providers.
Protection Of Personal Wealth
If you use a start-up loan for your new business then you will be able to keep your personal assets separated from the finance required for your business.
Each new company includes a risk, for instance, the most properly planned start-up venture can face difficulties that will be challenging for you to take care of as a business owner.
So think well before you pledge your personal assets like retirement savings, money essential for living or equity on your house. If you apply and get approval for a start-up loan it will let you start your new business venture. You do not have to place your own funds at any risk for doing so.
Set Up Business Credit
Your business will require large cash flow to grow and develop further. If it does, it will be aiding you to own a responsible credit usages history.
Strong credit history will be indicating huge reliability as a borrower. By availing and repaying a start-up loan first, a new business owner will be increasing the chance of his business to get approval for more loans of bigger amount later in the future.
It will also aid in securing lower rate of interest. If you qualify for a start-up loan you can start your new venture without the help of any friend or family member and financier who will want ownership because of their investment. A new business owner must examine all considerations before he decides to take a start-up loan.
Several business dreams died in the embryo because the finances needed to beef life into it is lacking. If you are a women entrepreneur and you needed the funds to expand the borders of your business, then this article is a must-read for you. Here are the places to get the needed grants:
Fundera’s Zach Grant
One of the easy means of getting the capital to move your business to the next level is by going through Fundera’s Zach Grant. All that you are required to do is to upload a video of the blueprint of your company to the national contest in which you will explain the reason why you started your company. $2,500 are given in grants every year. All that is required thereafter is to follow the company on their social media handle.
A Grant for Greatness
Another area where women can get the desired grants awarded to you is through A Grant for Greatness. To qualify for entry into this grant, you have to present a two-minute video of your business idea to the organizers. The prize money is $1,000. For women with established business concerns and who wants to benefit from this grant, their annual turnover should not exceed $20,000.
Eileen Fisher Program
This is another area that has a bias for women in business and where you can get the needed grants for business.
The focus is on businesses run solely by women and presenting your well-packaged entry will most likely yield desired dividends at the end of the day. The sum of $100,000 is given to 10 recipients every year. The business should have interests in creating environmental and social change in society and must be strictly run by women.
Zions Bank Smart Women Grants
If your business has interests in child and elder care, arts and culture, and teacher support, then the place to be for a grant is Zions Bank Smart Women Grants. The sum of $18,000 is on offer every year over six categories. This is one credible place that you can rely on to get the desired funding for your business.
Walmart Global Women’s Economic Empowerment Initiative
This is an international organization that is open to all women in business across the world that need the grant to stabilize their business concerns.
They are providing $100 million in grants for women in business. This is a place to be for women you need grants for their business. If you are based outside the US, there is a bright chance to getting the grant through Walmart Global Women’s Economic Empowerment Initiative because the focus is more on business interests that are based outside the US.
This is an initiative that provides up to $15,000 annual grants to 12 women entrepreneurs. If you packaged your business line of action excellently well, the chances of getting on the list of 12 beneficiaries are very bright. This grant comes with professional counsel on the way to move your business forward. Beneficiaries will also benefit from networking opportunities in their notch.
Women’s Business Centers
This is an indirect way of getting the grant needed by women in business. Unlike others that we have mentioned above, there is no price money here, rather it is a database of Small Business Administration which is sponsored by Women’s Business Centers. Some of the centers give small grants themselves to women in need of capital while others will help in the search for where to get the desired funding. Simply go to the database to check out what is there for you.
InnovateHER Women Business Challenge
If you are a woman and you needed the grant as well as innovative ideas that will make your brand to compete favorably at the top, then the place to be is InnovateHER Women Business Challenge. This idea is co-hosted by SBA and it is a competition that offers $70,000 grant money that is spread across the first, second and third winners. This is one of the real deals for women in business.
Idea Cafe Grant
If you are applying for the grant under Idea Cafe Grant, you must be prepared to compete with male counterparts. The prize money here is $1,000 which is enough to grow a business. Most of the past winners are women; this gives the edge for women in business over their male counterparts.
The above-listed places are sure bets that women in business can look to for the desired grants to move their business interests forward in the right direction. Check the timing of the entry and make sure your business plan fits into the requirements- you will get the desired reliefs for your business. Make sure you monitor the progress of your entry.
The statistics show that the number of women entrepreneurs is on the increase. According to American Express, between 2017 and 2018, an average of 1,821 women started their business concerns every day in the US. Here are the following tips on where women can get grants for business.
The Halstead Grant
If you are a silver jewellery artist, then this is the place to try your luck for that grant you desperately needed to move your business interest forward. Women jewelry designers can take advantage of this opportunity to get the funds that will push their business in the right direction-most especially those that are based in the US.
If you are interested, simply go to The Halstead Grant and download the grant form and fill up the required details there. For the year 2018, the winner (Emily Shaffer) received $7,500 cash grant plus $1,000 in jewelry supplies. Included in the package is a trip to Prescott, Arizona in addition to perks which included a feature in grant publication-Reveal not forgetting a signature trophy. The lines have been opened since the first day in the month of August 2019. This is an opportunity for businesswomen who are jewelry artists.
Open Meadows Foundation
Away from interests in jewelry artists, are you interested in promoting gender, racial or economic justice? Then Open Meadows Foundation is the place to be for desired funding. In as much as your projects meet their requirements, you are eligible to apply for the grant here. All you need to prove during the process is the clarity of the fact that the project is completely feminine in outlook and structure.
If women in business can prove that they own the copyright of the idea, there are bright prospects of getting the needed funding. You can apply for a $2,000 grant under this foundation. Priority is given to small businesses and start-ups and the application is twice in a year. You can look up to it in 2020 because the application for the fall of 2019 closed on midnight of August the 15th.
Cartier Women’s Initiative Awards
Women who are into the big league in business circles and desire the heavy funding for their business initiative are welcomed under this platform. The idea of this initiative began in the year 2006 and it is for business women of all categories. There are no restrictions on business interests here; in as much as you are a career woman entrepreneur, you are free to apply.
To cap it, it cut across all the races on earth; no matter your color or race, in so much as you are into business, you are free to apply. The grant money here is as high as $100,000 USD. The stakes are very high here; your business must have a healthy turnover and must have been in existence for at least a minimum of three years. For the year 2020; the application has opened since June 2019. You can go for it if you belong to the big league of women entrepreneurs.
Tory Burch Foundation Fellows Program
If you desired total empowerment that goes beyond the provision of cash for the business, then you can look in the direction of the Tory Burch Foundation Fellows Program. It covers capital, education, and access to networking. The existence of this grant dates back to 2009 and with a decade in operation, you can rely on them to get the desired total breakthrough that you have been craving for in business.
To be considered, your business must be resident in the US and you must be 21 years old and above during the time of application. Added to that, you are expected to be proficient in spoken English. Applications for 2019 closed on March 12 and winners have been announced in May. The grant money is $ 5,000. You can get ready for next year’s awards.
More Grant Resources
The four places mentioned above are not exclusive in terms of where grants for business can be obtained. Thank goodness for the internet, you can invest time in research to track down other viable options aside from the ones presented above.
When you log unto reputable databases like Grants for Women, you are going to see several options that you can take for effective results that matter. The list there is comprehensive and in the alternative, you can as well visit the nearest SBA Women’s Business Center close by for those in the US for assistance. Make sure you fall under the category and track your application. Success will definitely follow.
The above are sure areas where women can get desired funding for their business line of operation. If you play by the rules are ensure that you fall within the category covered by the body; you will stand the chance of getting the results that matter at the end of the day.
Stop living paycheck to paycheck and take control of your finances. Young people need all the financial help they can get to succeed in the modern world. It is incredibly important that you get all the good advice.
Spending less than you earn every month, keep the money in your wallet to a minimum. Even as you start saving, another first is to start educating yourself about every aspect of personal finance.
Hi,I am Carolyn Rhea, author of NIME 2016. Money management tips can help you and your family feel more financially secure.