Posts tagged: cash flow

Financial Downsides and Potential Issues of Owning a Pet

financially downGetting a dog, or any other animal, to become a loved member of the household is a big step that many families decide to take at some point in their lives. Dogs and cats and other little domestic animals can offer a lot of love and warmth to a home, which is why so many welcome pets into their loving arms. With anything, there are both pros and cons to pet owning, and one of the biggest things that concern a family when it comes to the decision of welcoming a pet is the financial impact it will have.

Dogs are one of the most common pets that are seen in modern households. They’ve been man’s best friend through the ages. A dog can offer additional security and protection, as well a fierce friend that will last a lifetime… in dog years.

However, they also can get expensive. Some dogs, like purebreds, can be hundreds of dollars, and that is just the initial price of your pet that doesn’t include all of the supplies and equipment you’ll need to care for them for the years to come.

Regular and emergency vet visits. Dogs should be seen by a vet often and stay up to date on their immunizations and treatments to avoid getting medical problems. Sometimes these things can still happen, so you’ll have to also plan for the possibility of extra medical bills for your pet.

Special care equipment and furniture. Large dogs and older ones will need special beds that can get expensive. Walking gear can vary depending on the size and strength of your pet, and if they have existing medical conditions, they may need certain food that can get expensive. Planning for these things can help you decide a budget.

Potential injuries and prevention. Your dog may get hurt or may end up hurting others. This is rare, and some legal funding companies will offer a dog bite loan to help you stay on top of things financially while you’re working through the repercussions financially for a dog bite.

Many people have allergies to pet fur. Making sure that everyone has medicine and makes an appointment for allergy testing can get expensive depending on how many people are in your home.

Destroyed or damaged furniture and items. Dogs, especially puppies, are playful and energetic. They’ll get bored and lonely when you aren’t home. In the early months before your dog is fully trained, you may have to deal with damages to the things in your home. This can also go for cats.

Moving can get a little pricey if you have to bring the pets. Paying for transportation for a pet can get expensive depending on the size and weight and type of your pet. Some can get in the car with you, but you’ll have to make more frequent stops.

Low-Cost Investments to Start Making Money From Home

investment for online businessOne of the most popular ways to secure financial freedom in this current generation is to establish multiple streams of income. It could be from multiple jobs, a personal business or even investments. With job security an ever-growing problem for people all over the world, it seems like the most secure living you can get these days is to invest in the internet and work from home. Not only does working from home bypass the minimum wage that is set in your country, you also guarantee a wide range of clientele and the ability to work with people all over the world.

But most home-based investments require a lot of money. Trading stocks, starting up a business or investing in a company takes a lot of cash to start, making it a difficult option for someone who’s climbing out of debt but still wants to secure a comfortable future financially. In order to give you a hand, here are a couple of low-cost investments to get you started with making money from home.

Low-Risk Investments

When investments are concerned, we often think about expensive high-risk purchases like stocks, foreign currencies and even property. However, among all of the investments that people can make in life, there are some low-risk ones that have a very small chance of making you bankrupt. For instance, you can learn how to trade penny stocks online as a way to practice stock trading and you could invest in land purchases instead of entire properties. There are many low-risk investment options available to you as long as you do your research and look at the stability of a market instead of the potential gains.

Penny shares are, as the name implies, very low in price, meaning you can trade them freely without much consequence. However, don’t expect to turn $10 into $1,000 in a single week, and don’t even expect to make money within the first week of getting started. It’s a gradual and slow process, but that’s the nature of low-risk investments.

For property investments, you typically have a lot of factors involved when developing a property to be sold such as the location, target audience and so on. However, when it comes to investing in land, not only is the price a lot lower because you’re factoring out the development costs, it also doesn’t have a defined use, making it a versatile purchase for your buyers.

Starting a Content-Focused Business

A business could mean anything from a YouTube channel to a small company. However, the cheaper options here are definitely content-focused, such as a video channel, news website or a blog. You can monetize most of your content with the help of advertising services, but if you’re feeling brave then you can always upgrade to affiliate programs or even offering a product.

For instance, if you have a popular blog about the history of candy, then you could compile all of your material and blogs into a book to be sold. Ebooks are a natural transition for blog owners due to the content being relatively similar. All you need to learn is how to publish your own eBook and then advertise it to your viewers, social media and so on.

Got A Big Payment On Your Hands? Here’s How You Can Easily Afford It

bills to payThere always comes a time when all of us could do with a little extra cash. The unexpected payout can sometimes be launched on us as a result of something beyond our control – a sudden illness or a car crash, for example. Or, it could be the case that you have something to pay off (like a vacation) and it has just dawned on you that you may not have the money together in time. Whichever situation is relevant to you, there’s no denying that having a large bill weighing on your shoulders can be extremely stressful. Your focus should, therefore, be on being as thrifty as possible to get the money together in time – but what do you do when time itself is against you? Here are a few ways you can save and make money quickly so you can afford that big payout with no questions asked.

Cut out everything you don’t need

The impending payment you need to make may be necessary to your life, or something that you can’t possible wriggle your way out of. However, if you sit back and take a good look at your finances, you may find that you notice certain things that maybe aren’t quite as necessary to your life. For example, could you still be paying a subscription fee for a magazine you don’t even read anymore? Or, perhaps you are wasting lots of money each month by overusing the heating in your home – don’t simply turn it on every morning just due to a force of habit! Cancel everything that isn’t integral to your everyday life, and isn’t something your family relies on too much. These little savings might not seem like a lot initially, but they can certainly go a long way.

See what you might be owed

You might not realize it, but you could have money hidden away in places you weren’t aware of. Read this Fairfield Funding structured settlement review for more information on structured settlements. You may be receiving your settlement in monthly payments at present, but if you urgently need money for something specific, you can apply to have the cash presented to you in a lump sum instead. Equally, if you have been particularly frugal with your household bills lately, you could be in credit with your energy companies, in which case they will owe you money.

Sell, sell, sell

Most of us have a whole hoard of clothes and items taking up space in our homes. Back in the day, we relied on garage sales and car boots to get rid of the things we no longer needed. But thanks to the internet, it has now never been easier to quickly sell your unwanted possessions online for a decent price. Teach yourself the basics of websites like eBay, Gumtree, and Shpock. Providing you can take a few good pictures of your items, and you have the time to post them quickly to your buyers, you can make a lot of easy money just by using websites like these.

Investing While in Debt is Totally Possible

debt investmentsDo you have some money saved up? It is completely normal to want to see that money grow in investments. If you happen to be in debt, though, investing seems like nothing more than a pipe dream. How do you get out from under a mortgage while investing money at the same time? Well, fr.doylesalewski.ca says that you can do just that. There are many ways in which you can balance your debts while investing in new ventures.

Know the Types of Debt You Have

Your ability to invest while in debt is based on the type of debt you’re trying to pay off. Some types of debt make it a very bad idea to invest in other ventures during. Others are not so bad. High-interest debt is the worst kind. This type includes credit card debts and similar situations where the interest rate is more than 10%. Low-interest debt, on the other hand, is easier to invest during. This includes car loans, mortgages, and bank loans for personal use.

Why Should You Invest While in Debt?

Getting rid of debt is a process that takes a long time. Loans that last for up to 30 years exist. You don’t want to dedicate all your time and money to paying off these debts and find that you have nothing waiting for you at the end of it. When you pay off debt on its own without investing, you gain financial freedom at the end of the period. This comes at the cost of less time for any future investments to mature. If you start a portfolio right now, the time value of money is such that a $100 investment today could yield over $10000 at the end of the 30-year period of your loan. This value depends on the interest rate of your investment over this period of time.

You Need a Different Portfolio

Investing while in debt is different to investing in ventures in the traditional way. The difference here is that instead of making low-risk investments you use that money to pay off your loans and long-term debts. The returns, in this case, include a reduced debt balance as well as the return on your high-risk investments including stocks. The higher the risk you take with your investments, the less money will go towards your loan payments. Of course, you need to consider budgeting to make sure that regardless of your investments you will still have just enough to pay off your loans.

Investing is still possible when you’re in debt. The question you should be asking yourself is: should you? This is a very personal decision. It depends on your confidence, your ability to assess risk vs. reward, and much more. This isn’t something that should be engaged in on a whim. You’ll be making some high-risk investments. Make sure you’re psychologically ready for this adventure. You don’t want to wind up demotivated and possibly depressed because an investment falls through. Learn to roll with the punches and focus on managing your debt too.

NPS Assets Investment Crosses Rs 1 Lakh Crore Mark

asset investments ideasThe National Pension System (NPS) is a voluntary defined contribution plan for retirement income. Individuals aged between 18 and 60 years can open a Tier I and Tier II account. They need to contribute a minimum amount of INR 6,000 per annum to the Tier I NPS account.

The contribution is invested among different asset classes, such as government bonds, corporate bonds, and equities. Contributors can indicate their investment choice to maximize their returns on investments.

Although the NPS was launched in 2009, it did not gain much popularity initially. Individuals shied away from investing in the NPS because of its complexity and a general lack of clarity related to their contributions.

However, in the previous year’s Budget, Finance Minister Arun Jaitley took a huge step towards increasing the popularity of this tax saving investments plan. He made contributions of up to INR 50,000 tax deductible under the section 80 CCD (1B) of the Income Tax Act. This deduction was over and above the existing benefit available for investments up to INR 1.5 lakhs under the section 80 CCE. This offers individuals a total tax deduction benefit of INR 2 lakhs under sections 80 CCD (1) and 80 CCD (1B).

As a result, an increased number of investors started investing in the National Pension System. Assets under management for the NPS crossed INR 1 lakh crores for the first time since the launch of this tax saving scheme.

Working of the NPS

Individual subscribers

They can open their NPS accounts with any of the “Point of Presence (POP)” appointed by the regulatory authority, Pension Fund Regulatory and Development Authority (PFRDA). They need to fill and submit the Common Subscriber Registration Form (CRSF) to the POP along with KYC documents and initial contribution. On successfully opening an account, users receive a Welcome Kit comprising the Permanent Retirement Account Number (PRAN) card and other related documentation. The PRAN is unique for each subscriber and portable, giving you flexibility even if you change your job or location.

Tier I is the pension account while Tier II is the investment account. Withdrawals from Tier I accounts are limited and help to create the retirement corpus. Tier II is a voluntary investment facility and the amounts from this account can be withdrawn without any limitations.

Corporate subscribers

The corporate model for this tax saving scheme was made available from December 2011. It was customized to suit the requirements of different companies and employees. The NPS is an option offered for providing additional retirement benefits to the personnel, and can be made mandatory by the companies for their employees.

Companies can join this tax saving investments scheme through the POP. Employers who contribute to this pension plan on behalf of their employees also receive tax advantages, which make it attractive for them. Companies can claim such benefits for an amount that is up to 10% of the employees’ salaries (basic + dearness allowance) through deduction as business expenses.