All About Business and Finance

Let’s take a look at the facts: Housing prices are rising at a clip of 10-15% per year, tuition costs are rising by an average of 10% each fall, and energy costs – well, the average rise in prices depends on the week you happen to be looking at, but double-digit increases have been the norm for the past few years. And now, the really depressing fact: Average wage increases have hovered between a measly 3 and 4 percent for the past three years. Now what, you ask, does any of this have to do with car financing?

Hey, as simple as can be stated, it boils down to numbers. Interest rates: These are the hidden little killers that can destroy retirement plans and lifestyles over the course of a lifetime. Car financing is the second most important credit-related decision you will ever make, the first being the mortgage on your home. So, just as an example, let’s say that you make $30,000 per year and are looking to finance a $25,000 car over five years. The difference between attaining approved car financing at 6% interest and 16% interest equals $130 per month if you take the loan out over 5 years! And here’s the clincher – a 3% annual increase in salary will net you an extra $900 per year (and that’s before taxes), while saving $130 per month on your car financing puts nearly $1600 more dollars in your pocket. (And hey, that’s after taxes!) Even a few percentage points difference on your car financing can actually equal or exceed the raise you got from work this year!

I had no idea those tiny numbers could add up to so much money! What is my best option for getting an approved car finance plan – with the lowest interest rates?

In the end, your credit rating, and the interest rates it commands, can make or break you over the course of your life. Car financing is not rocket science, but you really have to be careful with the numbers – or you can end up paying thousands of dollars more than you have to. Your best approved car finance option is probably going to be obtained through a bank or credit union. The great things about getting your car financing through a bank is that you tend to get the best rates, personalized service, and you don’t have to worry about some pushy car salesman trying to shove useless add-ons down your throat every five minutes! However, banks and credit unions have higher car-financing standards, so you need decent credit to consider this as an option.

But wait a minute – the banks always take forever to process a loan, and the salesperson at the dealership can get me approved in minutes!

This is very true. But there is a price for that convenience, isn’t there? The dealer almost always offers you a higher rate on car financing – and be prepared for them to try and sell you every single add-on you never wanted in the hour it takes them to fill out the paperwork! That approved car finance arranged through the dealership may save you a week over financing through a bank – but just a few percentage points difference in interest rates can easily cost you $1,000 more each year for the entire length of your loan. So in the end. . . how much is that week worth to you?

All right. . . the dealer can be a bad option for car financing – but what about those online places that can approve me in minutes?

In all honesty, the Internet can be a great place to secure approved car finance. With the ability to hop around and shop the different sites, you can definitely get some decent interest rates, sometimes comparable to those offered by a bank – plus you can get approved in minutes, and be driving your new car in a day or so. So what’s the catch? Well, the Internet has more than its fair share of scammers just looking to get your social security number and other vital information. If that car financing information ends up in the wrong hands. . . well, you can do the math! Plus, the ‘Net can be terribly impersonal at times – but it is still a viable option for approved car finance at competitive interest rates.

Impulsive and poorly made car financing options can literally cost you the price of an entire new car over the course of your life. Approved car finance is available through a number of outlets, and each has its own benefits and disadvantages. However, if you want to be able to afford actually driving your new car someplace other than home and work for the next few years, you may want to avoid the inflated car financing, AND those useless add-ons, offered by dealerships.

Why invest and why take out an investment loan?

People’s needs for investment are as varied as the investment vehicles themselves. Some want to own their home outright, pay the kids’ university fees, or take world trips; while others want to start their own business or retire on a comfortable income.

The reality for most of us is that we won’t be able to afford these things on our salary alone (unless you’re fortunate enough to be the CEO of a major corporation). The key to successful investment is to leverage, that is, to use an investment loan to improve your capacity and increase your return.

Why invest in property?

Investing in property is the safest way to invest, but we also believe in a diversified portfolio to minimise risk. Similarly, Australians have trusted investment property as their favoured investment vehicle for generations – and with good reason.

We recognise the cycles, the incredible advantage that appropriate leverage (making capital gains from borrowed funds) offers, the benefits of rent return and taxation relief in servicing those borrowings, and the significant growth achievable over time. It is not unusual for ordinary investors to accumulate four or more properties over 10 years – and the financial flexibility and cash flow outcomes can be exceptional, giving you piece of mind.

Property allows you to leverage. With only $20 000 cash invested (plus around $10 000 upfront costs) it is possible to invest in a $200,000 property, making your earning potential greater.

Can you afford to invest in property?

The question should really be, “can you afford NOT to invest”, whether it be in investment property or some other form of investment? While everyone should be investing to give them more options in life, property investment may not be suited to everyone. Most people on a standard wage can service an investment loan. After all, the investment loan interest is first met by any rental income you generate. As a general rule there will only be a small shortfall on the interest on your investment loan. Traditionally the investment loan shortfall, as well as other costs relating to your investment property would be met by your personal income. Many investors however include a capitalising line of credit in their investment loan package so that they can draw on this to meet any shortfall costs as opposed to paying same from their personal income. Instead, they use as much of their personal income as possible, not to pay any shortfall interest on the investment loan but to make additional repayments to their home loan. This way their home loan is paid off much more quickly.

With your investment loan you should also remember that negative gearing does deliver some relief to servicing your investment loan on the way through. While most investors will wait until the end of the financial year to claim their tax deductible shortfall you can in effect claim the investment loan shortfall on a monthly basis. Check out the ATO website on deductibility of interest on investment loans.

What history can tell you about property

History shows us that all property whether it be investment or owner occupied doubles in value every 7 to 12 years. Each property market is cyclic, that is, it goes through times of fast growth followed by little or no growth. When one market eg Sydney is in strong growth, other markets eg Brisbane will be in a little or no growth phase. The markets are referred to as being counter cyclic – when one is doing well, another is doing not so well.

This means for example that when the Sydney’s growth slows, Melbourne’s picks up followed by Brisbane. This is the reason we emphasise the importance of investment property as a mid to long term investment. The key however is to identify the markets with the highest probability of short to medium growth and lowest probability of downside risk. This enables you to build equity faster and therefore add to your investment property portfolio.

It also means that there are always new opportunities for investment property as there are always markets somewhere which are experiencing their growth phase. Choosing investment properties in growth markets assists in developing well-balanced, diversified portfolios.

Property in the future

In the past all property was good investment property, and a lot of people did very well out of it. While those days are gone, there are still exceptional opportunities for investors who understand the current market influences such how our population is changing, how family size is changing, how types of employment are changing, and how the economy is changing and what influences it.

So why wait? Research property – buy with your head not your heart – be an informed purchaser and most importantly make sure your investment loan is also working for you.

It is difficult for businessmen to concentrate towards the growth of his business if he is short of finances. Also financial help is a must for people who want to start their own business. Small business finance helps you with all your financial needs. It is meant for small business houses and can be availed in two forms secured and unsecured small business finance. It is also open to people suffering from bad credit history.

BASIC INFORMATION ON SMALL BUSINES FINANCE

As the name suggests small business finance is meant to provide financial help to small business houses. You can also avail small business finance if you want to start your own venture. Small business finance is basically of two types, secured small business finance and unsecured small business finance. To avail secured small business finance you will have to place one of your properties as collateral against the loan amount. This can be any of your property like car, home, bank account etc. Placing a security helps you to avail small business finance with lower interest rate and flexible repayment duration. Also you can avail large amount of money by placing collateral of high equity. On the other hand no such collateral is needed to avail unsecured business finance, but the interest rate is slightly higher compared to secured business finance and also the repayment duration is shorter. Small business finance can also is availed by people suffering from bad credit history.

SMALL BUSINESS FINANCE: ADVANTAGES

Small business loans are advance to businessmen running small business or those who want to start their own venture. Small business finance is available in both forms, secured and unsecured small business finance. If you don’t want to risk your property you can avail unsecured small business finance, but if you want to avail loan at low interest rate secured business finance is the best option for you. Small business finance open to all be it good credit borrower or bad credit borrower. Anyone suffering from arrears, defaults, CCJ, IVA, bankruptcy etc can also avail the benefits of small business finance.

SMALL BUSINESS FINANCE: SUGGESTION

While applying for loan, always give preferences to a well known lender having good reputation in the market. Also search well before applying for loan. With good research you can avail a lender offering small business finance at reasonable interest rate. Small business finance is the best option for small business house and for people wants to start their own venture.

Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls.

Do know your rights.

More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want.

Don’t wait too long.

The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.

Do work with your lawyer.

Your Home Loan Modification doesn’t rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.

Don’t file for bankruptcy, unless you really have to.

Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway—so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.

Do have a backup plan.

Not all people will qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.

If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.

Unless you have been living on a desert Island you will know that many people are becoming very rich through making money via the internet. If you are also trying to grab your stake in this huge business I hope this article can provide a decent introduction for you.

Perhaps the most popular but not necessarily the best way, in my opinion, is to join some sort of MLM scheme. There are SO many to choose from. This business is huge and feeds mainly on the desperation of people who want or need to make money fast. These business tend to have very similar websites that have pictures of cash and flashy cars and stories of people who have made their fortunes using their system.

They are all basically the same. You pay a fee to join (either one time fee or a monthly fee) and you convince others to do the same and they in turn do the same. It’s appealing to many people because theoretically you only need to introduce a few people and get them to do the same and so on and the effect snowballs. So theoretically a little bit of work and getting a few people on board will snowball into $1000s or more and you can retire as the snowball grows by itself automatically.

The reality is this is simply theory. It very rarely actually happens that you invite a few people and watch the snowball grow. I have tried a few of these MLM’s for fun really just to see what this market is really all about and they all pretty much turn out to be the same. A company is getting ready to launch so they contact all the people they know and hype it up as the answer to their online income dreams. People get really excited and chat on Skype all day long about how their marketing plan is coming along. Then the company launches and things are going great this guy has a new recruit that guy has a new recruit, maybe even you have 1 or 2 in the first month. It all seems to be going according to plan. But then a month or maybe a few months in the momentum begins to slow. Not so many new people are coming in and the recent recruits get impatient and upset. They then start to get angry with whomever recruited them and start to accuse those recruiters as scammers because they promised them financial freedom and it hasn’t happened yet. So then they go around every forum and start slandering the program saying it’s a scam etc but then somehow those same people find another new start up program and they foolishly believe that this next one will be the answer to their prayers.

It’s almost religious because a lot of these MLM’s have a “leader” and the people follow him almost like a cult. He was able to recruit maybe 100 or more people within a short period of time and he is normally very charismatic (otherwise how could he recruit so many so quickly). Whenever anyone says something bad about him the followers are quick to defend his reputation because they have somewhat fallen in love with him and believe that he is their “savior”.

I’m not saying that everyone is like this but believe me I have seen this phenomenon at least twice in my travels.

In saying all of that you can certainly make money with these MLM’s, and you can also certainly become rich as many have. But you are basically doing it via a legalized pyramid scheme. Many people think these MLM’s are illegal or dodgy but they aren’t in the slightest. All you have to do is give a product for the money the members pay and you are totally legal. So what you find is many MLM’s give webhosting which is of course a staple product for any internet user. Reality is perhaps 90% of the members don’t even use the webhosting. They are only in it for the business opportunity.

The fact is this market is huge. It isn’t about to die anytime soon and the market is growing. More and more people come to the internet in search of an online income so this is certainly one way to make money online but in reality it isn’t stable and your business is being built on sand as it were.

Another online money making business idea is to become a ghost writer. If English is your native tongue there are many online marketers that need people to write articles for them about anything. They normally tell you the topic they want you to write about and how many words etc. Depending on how fast you can type and think you could make anywhere from $10-$30 per hour doing this work. If you have an above average knowledge of a topic then you are able to give superior quality content on that topic you could make more. The problem with this business is there are already many people doing this and it could be hard to get your foot in the door. You need to build a reputation before you get decent work so your first 100 jobs will be a real struggle. However if you do a good job you will get a lot of repeat business and eventually be able to work completely form home using only your computer and your writing skills.

The final online income method I will talk about here is called Niche Marketing or Affiliate Marketing. Essentially you create websites focused around a certain theme. If the theme is computer mice then you have a website all about that topic and you feature all kinds of mice on that site which link to sites like Amazon where you will get a commission if someone actually buys a mouse. You can also put Google AdSense on the site and earn money simply from people clicking on ads. This has been my preferred method and it is the one method I will stick to for now as it’s working well and doesn’t require me to recruit others.   Some of my niche websites include Wedges Sandals & Mother of the Groom Dresses

My success or failure purely depends upon me and no one else. When I did the MLM’s they just kept failing because people would drop out and I felt like I was constantly bailing water out of a sinking boat. With the website business it’s the opposite. The costs of running this business aren’t very high. Just need webhosting which is about $5/month and $10/year for each domain name you buy. Currently my income is growing by about $75 per month so its working well and the growth is stable. However doing this business takes a lot of learning. During my first 6 months I earned about $100. But after that it started to be more consistent and started to grow at a decent rate. There are many courses you can buy that will show you the basic ropes if you want a head start. Otherwise just search the net and learn as much as you can for free and give it a go. About 80-90% of websites fail so be sure to try as many websites as possible before you give up. Most people have 50-100 sites before they have a few successful ones.