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How To Be Financially Fit In Your 20’s

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financially fit

When you’re young it seems like you have forever, but what you don’t realize is that your 20’s are the best time of your life to begin your journey of being financially fit. You have the compounding power of time in your 20’s. You can invest more aggressively and take more risks in order to get better returns. The problem for many people at this age is that they see the time after they graduate as a time to slack off or start a rock band. However, your 20’s is a crucial time because you have more control over your cash flow. These are some ways you can use this decade to set yourself up for a financially secure future. Here are reasons why you should begin financial fitness early:

Save Money

20’s is a great time to get into the habit of saving money. In this time of your life, time is your ally and you can use the power of compounding to help you grow your cash in a way that cannot be repeated again.

Let’s assume that you will save $1200 or per year ($100/month) from the age of 25 to 65. By the age of 65, you will have around $185,700 (assuming a 6% return). Delay this by just 1 decade and you end up with $94,800 or nearly 50% less.

Get into the habit of saving as much as you can every month.

Don’t Skip Loan Payments

Pay off those school loans as soon as possible or you might ruin your chances of being financially fit. Yes, you have to be frugal for a long time but delaying or skipping payments could lead to accrued interest and ruin your goal of being financially fit. Many young adults don’t realize the importance of paying off student loans ASAP because federal interest rates are low. Skipping payments could lead to forbearance which could end up costing you more.

Understand The Basics Of Finance

When you’ve just graduated, terms like 401(k), Roth, IRA, TSP are confusing and scary. However, being financially ignorant could leave you in the dark. Know and understand what those terms mean and use them to your advantage. There are institutions that can help you understand if you’re willing to reach out to them

Start Investing

With time on your side, your 20’s is a good time to start investing your hard earned cash. You can start small by looking into putting your money into an index fund that mirrors the stock market. If index fund is not available in your 401(k), use a low cost target date fund. If you’re unemployed, open a Roth or traditional IRA. The key is to start investing or to open a retirement account and regularly transfer money to it to be financially fit in your future.

Be Aggressive

According to studies, 2 out of 10 adults in their 20’s have money in a money market or stable value fund. Putting money in these types of investment won’t keep up with inflation so it’s like putting money in the freezer and it entails more risk. However, it also provides you with more growth at a time in your life when you can handle the risk.  When you are conservative you risk losing out on market gains and jeopardizing your savings.

Your 20’s is a good time to start on the path of financial security. At this point in your life, you have the power of time without the responsibility of children or child care. Most people in their 20’s are paying their student loans, however it is also the best time to start planning for retirement or setting our sights to buying your first home.  

Investing

Saving Money On The Holidays

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holiday savings

The best time of the year has finally arrived. As people are gearing up for merry-making, the list of expenses also gets longer. The thought of ringing in the new year with a pile of debt can make you restless. Make a comprehensive plan, shop smart and enjoy your holidays with full vigor. Here are some smart tips to save you from spending too much on the holiday season.

Make a budget

Think about how much you can spend. Do not go overboard with spending. Include even the smallest anticipated spending in your budget like postage, greeting cards, Christmas décor, and so on. Observe all the expenses minutely and try to save a few bucks if you can. Before you go into a store, think about how much you want to spend on an item. If you can stick to your budget with every purchase, you can allocate some extra money on some unexpected expenditures.

Use cash

Using cash for holiday shopping is a great way to save some money. You can only spend how much you have. Credit cards are like short-term loans. These cards enable you to shop more than you can afford and regret later.

Put yourself on the shopping list too

Sometimes, you buy something very expensive for someone out of impulse, but you never buy that for yourself because of budget constraints. Sometimes, it is better to splurge on yourself too. Check the impulsive gift shopping to save money.

Send e-cards

Sending e-cards is a great way to save money on postage. E-cards are mostly free and come with attractive personalized options.

Choose an inexpensive method to make merry

You do not need to buy extravagant gifts for everyone in the family. Instead, take them out for a ride to see the neighborhood Christmas lights. You can also bake some cookies or cakes for them or try making Christmas crafts for the kids.

Take advantage of the discounts and sales

Holiday sales are the best opportunity to get some amazing gifts at low prices. Check the online deals too. Do some research and ensure that you are paying the best price available in the market for a product. You also need to know when to stop splurging.

Become a Secret Santa

You can use your finances to participate in charity during the holiday season. Instead of buying endless toys and gifts for family and friends, donate generously to this noble cause. You can be on your budget and at the same time arrange toys, clothes, and books for those less fortunate. You can also ask your family to join these celebrations and experience a unique feeling.

Arrange potluck parties

Organizing a big party for family and friends is an age-old tradition for Christmas and New Year. However, arranging and decorating the party in a generous way is a pricey affair. Cooking a lavish meal also needs lots of time and money. Let all your guests know that you are preparing the main dish for the party, and you would appreciate if they can bring in sides, appetizers and drinks. You can also send emails to all the guests requesting a special dish for the party along with the invite. After all, collaborative effort is known to produce great results.

It’s normal to get carried away by the festivities and spend a fortune on shopping. However, having a balanced budget for your holiday shopping can save you from the extra financial burden.  

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Business

5 Strategies To Massively Save On Your Holiday Spending

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Regardless for those who are buying presents on-line or in-person, you continue to need to lower your expenses.
Whereas many individuals neatly use rewards playing cards and coupons, they’re nonetheless lacking out on beneficial financial savings, which can price you serious money. These firms might help.

Get smarter about rewards

Curious which reward program suits you greatest? Birch helps you discover new bank cards based mostly in your spending habits.
Have already got playing cards with cash-back bonuses? You need to nonetheless try the finance app because it additionally helps you optimize what’s already in your pockets.

By grouping your transactions into classes, Birch exhibits you which of them card provides you essentially the most bang to your buck. You’ll never miss a another reward.

Money made simple

Utilizing Ebates is as simple as one, two, three: Join, Earn Cash, Earn Cash again. I’m not kidding.
Free Ebates memberships let savvy buyers seek for combining shops, and with one click on – and a coordinating purchase – you’re creating wealth. I’ve been a member for years.

The web site is straightforward to navigate, together with helpful day by day offers. There’s even a Chrome extension that permits you to simply store with out ever skipping out on reward money again. So even for those who ever neglect to undergo Ebates first, the Money Again Button will notify you.

Easy financial savings

With greater than 600,000 coupons at over 70,000 retailers, Retailmenot has every thing you have to save over the vacations – from coupon codes and cashback provides to meals offers and in-store gross sales.
The web site exhibits customers the highest trending reductions, whereas the app makes it simple to save lots of at your favourite shops and eating places proper out of your cellphone.

For these optimistically venturing out to brick-and-mortar shops, the the digital provides market makes use of push notifications and message-prompts to assist buyers and companies alike.

Flip reward playing cards into gold

Present playing cards amassing mud? Flip them into playing cards you really need or cold-hard money with the most important reward card change on the earth.
CardCash desires your undesirable reward playing cards and truly pays you as much as 92 % of the cardboard worth.

Have somebody in your elevate that’s arduous to buy? I believe you’ll in all probability seize them a present card. Why not do it at a reduction and select from the king-of-card’s big stock?

Giveback whereas gifting

It’s the season of giving – we wouldn’t be speaking about presents if it weren’t – so why not give again whereas procuring?
The world’s first-ever shopfunding web site, GoodShop donates a portion of what you spend once you store at 1000’s of shops on their web site.

From nationwide charities to native colleges and group teams, once you store with Goodshop you not solely save, however you give again.

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Business

The Importance Of Controlling Risk In Your Business

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business risk control

Risk is a part of life! Any enterprise, big or small, can face some unforeseen incidents and incur a significant loss. The risk can result from both inside or outside, natural disasters, accidents, human error and faulty production. Managing or controlling the risks is one of the most important aspects of running a business. If the business is owned by a sole proprietor, he has to face an additional personal risk of liability and financial crisis. The risk management techniques include risk reduction, risk transfer, and risk avoidance.

The risk management process involves proper planning. Here are some guidelines to control risk in your business venture.

  • You need to identify methodically the probable risks surrounding your business.
  • Review the probability of occurrence of the events.
  • If you can sense any problem early, deal with them without any delay.
  • Chalk out a plan to respond to the unforeseen events.
  • You need to use your resources effectively to address the risks.

The importance of liability trends

One of the most important aspects of risk control is tracking the trends in liability insurance coverage. It can help you to get more coverage options for your business. You should always buy a good liability insurance policy for your enterprise. There is some additional coverage too like inland marine insurance which provides coverage for job site insurance and builder’s risk insurance which is specifically for construction site coverage.

Risk evaluation and consequences

Evaluate all the pros and cons and the risk involved in the business. Avoid doing something that has less benefits, but severe consequences if the action fails. If you want to take up the challenge, do it intelligently, divide your liability with your partners, and try to reduce the risk component.

Importance of quality assurance program

To avoid any unprecedented risks in business, implement a quality assurance program. Review the feedback from the customers. Regular product quality testing can give time for correction and reduce the chances of product failures.

Maintain accurate records

Implement a system that can check the overall performance of the company. Keep a track of how the finances of the business are being utilized. You should regularly compare the economic condition of your business with that of the market. It can help you get an idea of controlling financial risks.

Managing financial risks

Reduce the financial risks by managing the accounts of the business regularly. Minimize outstanding balances and identify the poor credit risks. Implement a credit and payment standard. Also, specify which credit score and payment methods are acceptable. Evaluate customer payments and if the customers do not follow your plans, implement advanced payment options. Keep your outstanding loans, and financial needs to the minimum. Plan business expansion in such a way that you do not have to take a huge debt. Try to finance the growth internally.

Recovery planning

Your business needs proper coverage for thefts, scams and other crimes. Chalk out a disaster recovery plan to save your funds. Get adequate insurance for data security, employees, and equipment.

Remember, it’s always better to plan in advance and nullify risks.

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