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June 27, 2021June 28, 2021

Top Five Ways to Save More Money

You might not realize it but some of the most common and popular spending issues are due to a too luxurious car, a too big house, or the use of a credit card that is way beyond your current income.

If you want to budget properly and enjoy more savings, below are the top five ways to save more money.

Dispute the Assessment of Your House

If you have your own house, you can lower your real estate taxes if you challenge the value that the local assessor has placed on your property. To do this, you will of course need to present good evidence.

However, if the recent property sales in your community made you believe that your house has lower value than the assessment and there is a qualified real estate agent who can write an appraisal that will support your claim, grievance can be filed with the assessor’s office to hopefully reduce your bill

Lower Your Taxes

This often means that you need to make the most out of itemized deductions that will be easier to do if some of your income is from a side hustle instead of your regular day job or if you are self-employed. It will open up more deductions such as a home office to expenses for items related to your work, all of which are trickier to claim if you are an ordinary worker.

As for investment concerns, you will be able to save some cash if you sell then write off those investments that already lost money. These losses can be used for offsetting any gains you got in a particular year.

When your losses are higher than your gains, you could deduct up to $3,000 of the investment losses from your regular income every year. People who have higher incomes can also save some cash if they shift their money out of the taxable bonds to tax-free municipal bonds.

Get Rid of Unnecessary and Trivial Costs

If you want to save money, look first for those smaller savings, not because these can put an end to your budget concerns but mainly because it is easier to find and make the most out of them. For instance, it might be time for you to ditch that expensive premium latte you love drinking every afternoon.

You can also try to buy home furnishings and clothes only during sales events. Keep your home cooler in winter and warmer during summer. Instead of hiring someone to do chores like shoveling show or mowing the lawn, why not do these yourself?

Soon, you will see that even those small savings can add up in the long run.

Cut Back on Bigger Expenses

This one may be a bit more painful for you. For example, if you smoke, it might be time for you to take some steps to quit. Go for a car that is cheaper to buy, maintain and fuel instead of that SUV or luxury car you have.

Refinance Your Mortgage

Finally, if new mortgages cost at least 2% points less than the rate you are paying, you can save more dollars through refinancing.

Remember that these five suggestions might not work for you. Consider your personal situation and make the necessary changes accordingly to save more money.

June 27, 2021June 28, 2021

Should You Take Your Business on Sharktank?

While Shark Tank, the hit show of ABC, seems to focus on nothing but glitz and glam, it actually gives you a very realistic view of how it is like to be working with investors for your business. The only difference is that it is shown on TV with popular investors.

But, should you take your business on Sharktank? If you are still on the fence on whether or not Sharktank will be worth it, here are the best lessons that business owners like you can learn from this popular TV show.

You Be Able to Summarize Your Business Idea in Just 10 Words or Less

It is one question asked frequently on Sharktank and one that usually gets terrible answers or catches entrepreneurs by surprise. Be sure to spend time here. Ask yourself the reason why you started your business, where you hope to go, why it matters, then sum everything up. It is better if you can be clearer and more concise. It is probably the main reason why Sharks ask the question. This is an amazing chance to leave them impressed.

Preparing Several Presentations is a Must to Show That You Know Your Audience

When watching Shark Tank, you will soon realize that every investor cars about different areas of your business. There are others interested in your financial history, some like to hear about your objectives and how you plan to grow your business, while others just want to know about the business in general.

It means that you need to prepare the answers and consider them as separate presentations. Since presentations are everything as far as investors are concerned, it would be so much better if you make them more customized.

Spend More Time on Your Presentation

This is definitely that must be mentioned if you are planning to take your business to Sharktank because it is a no-brainer in the show. You should come prepared with answers for questions regarding your business. At the same time, you also have to make sure to sell your business in the presentation.

Even if you have the world’s most groundbreaking product, you might close the deal if you have less than stellar presentation skills, you answer questions nervously, you don’t seem interesting with presenting your product, or you don’t appear outgoing.

It is recommended to take note of all the basics regarding your business followed by all the advanced or cool ideas or features. After doing this, you can ask questions about ever item and practice how to present them in such a way that will keep the Sharks interested and show them its importance.

Come Up with Realistic Goals for Your Finances

This is a lesson that you can transfer to all aspects of your business. It is a must to be realistic. While there is nothing wrong with being ambitious, you shouldn’t try overselling or overestimating when you pitch an idea to investors. Good investors can notice if you go overboard with your figures so make your financial goals realistic and follow through them. It will help you move forward better compared to overestimating only to come up short.

At the end of the day, taking your business to Sharktank will be worth it if you want to prove that it is practical and you want everyone to see it as that.

June 27, 2021June 28, 2021

Should You Purchase Single Family Houses?

Once you are finally ready to buy your own house, you will have several choices to choose from. These include apartments, condos, townhouses, or single-family houses.

Single-family houses are popular options because you will be getting an independent structure that is not attached to the properties of your neighbors. You will be the proud owner not only of the house but also the land where it is built on.

However, is this kind of property really worth it? Should you purchase single family houses?

There are actually many perks and benefits associated with single-family houses as compared with apartments, condos, townhouses, or other housing options. It doesn’t matter if you are searching for the best home for your family or you are looking for a new and profitable real estate investment, the following are some of the advantages of a single-family house.

Access to Various Communities

You can find single-family houses on almost all communications including urban, suburban, and rural areas. Apartments, townhouses, and condos are not often found in rural and suburban areas.

You Can Customize and Make It Yours

With single-family houses, you own the interior and exterior of the space, giving you more freedom when it comes to designing your home.

Although multi-family units such as townhomes and condos can also be customized, there is nothing that says “your home” quite like single-family homes. These houses consist of just a single property unit with just one family that owns the land that sets it apart from other options. It gives homeowners the perfect chance to create a house of their own on their own piece of land.

You Get a Yard of Your Own

Speaking of land, single-family houses are usually but not always bigger than apartments, townhomes, or condos. They also usually have more outdoor space. Single-family houses have bigger yards compared to attached townhome and condo units.

On top of that, the surrounding yard of single-family houses is private, which means that you won’t be sharing common areas with your neighbors. It provides better advantage for those growing families that have kids who love to play outdoors.

More Private Space

You can expect your space to have more privacy if you don’t have any neighbor that is physically attached to your house.

Unlike those multi-family units, a single-family house offers more privacy from neighbors. It is among the most obvious reasons to buy single-family homes. It gives you the freedom to live as you want with no need to worry that your neighbors will be disturbed. Conversely, since there are no shared floors or walls, it is also less likely for you to hear the noises of your surrounding neighbors.

From the freedom to create your very own personalized house to having a private yard, it is easy to see that single-family houses provide several hard to beat unique benefits. So, when the time comes that you are finally ready to buy your first house, you can be sure that a single-family home will be worth it.

June 27, 2021June 28, 2021

How to Rehab a Home Under $10,000

Rehabbing your home is not a cheap project. The cost can easily add up, from installation to buying all your new furniture pieces, appliances, and décor. But, this doesn’t mean that you shouldn’t do the necessary updates at all.

Below are some quick expert tips on how to rehab a home under $10,000:

Go for Salvage Materials

There are salvage stores where you can buy donated and leftover materials and supplies. You can also find appliances with below-retail prices as well as used furnishings and building materials. Good resale materials are also available at auctions.

Install a Steel Entry Door

It will cost you less if you replace your battered front entry door with a brand new steel door instead of a wooden one. It will give you a return of up to 91.3% of your total investment. High-end steel doors with sidelights are priced at only $1,000 to $3,000 as compared to high-end wood versions that cost more than $4,000.

Ceramic Tiles are Better Than Stone

Ceramic tiles are the exact replicates of stone tiles but they come at a cheaper price. They are not like artificial wood flooring that lacks the texture and warmth of the real thing. High-quality ceramic tiles cost as much as $5.50 for every square foot although it can go as low as less than $1 for every square foot unlike natural stone flooring priced at $10 for every square foot. Installing ceramic tiles is also typically less expensive.

Choose the DIY Route

Home rehabbing labor can get very expensive so you will be able to save if you take on some of the work yourself. For example, you could save a few hundred dollars if you tackle a 2-hour painting job on your own. However, make sure you only do those jobs that you know you won’t mess up. Homeowners will be able to save cash through doing the demo on their own and letting the contractors deal with larger projects.

Settle for Vinyl Windows Instead of Wood

Unless your goal is to have the same historical accuracy of older houses, vinyl windows are better than window if you want to save on maintenance and money and earn up to 5% bigger return on investment. Vinyl windows have an average price of $130 to $500 each unlike wood windows that cost $150 to $800. While insulated vinyl frames cost more than those that are non-insulated, these have the same level of energy efficiency as wood so you can save on your cooling and heating costs.

Buy Your Cabinets from the Maker

Homeowners who can install cabinets on their own can save more if they bypass retail stores. You can save up to one-third on your cabinets if you buy them directly from the manufacturers.

Consider All the Different Ways To Save

Lowering the costs of rehabbing your home is not just the only way for you to save money on such projects. Projects that will help boost the value of your home can also increase equity and return more than how much you spent on them in some instances. Don’t be afraid to try renovations even though they might be expensive as long as they are worth it in the long run.

June 27, 2021June 28, 2021

How to Find Reliable Handymen

While homeownership is one of the most exciting things that can ever happen in your life, this also comes with some very real and serious responsibilities, particularly regular maintenance and repairs.

Surely, some of you might have been blessed with the skills required for putting down tiles or fixing leaky sinks. However, for many homeowners, these jobs are best entrusted to the hands of experts. This is where handymen come in handy.

Before you hire a handyman who can help you with any project around your home, it is important to look for someone who got the skills for getting the task done and is also trustworthy. You also have to make sure that the price is fair.

Letting a stranger into your home to do the job is never an easy decision. Check out the following tips and tricks on how to find reliable handymen.

Look for Certifications

As you interview potential candidates, be sure to ask about the certifications that they have. For example, you have to check if the prospect handyman has been certified with the local association of handymen in your area. These certifications can give you the assurance that you will hire someone who is professional, knowledgeable, and can provide customer care.

Keep an Eye Out for Communication Skills

It is best to avoid handymen who cannot communicate with you well. It is a must to work with someone who will be able to give you a clear explanation of the work he is doing and offer a timeline for its expected completion.

Prepare the Necessary Contracts

You should never hire a handyman with no signed agreement of the rates, responsibilities, and others. You can come up the contract yourself or look for a contract template online. These contracts can provide you some level of protection, particularly if this is the very first time that you will work with a certain handyman. It is also the best time for you to inquire about the project’s warranty.

Request for Free Quotes

Remember that you don’t need to pay just to receive a quote. These days, it is common courtesy to receive free quotes. You should never waste any minute on a handyman who already asks you for money just to see your property.

Gauge the Honesty

One of the best signs of a reliable handyman is someone who is honest with you all the time. If they have never tried building a deck before, the last thing you want is for them to handle the project. You would like a handyman who will point you to someone else to do the work.

Verify the Insurance Coverage

It is usually best to ensure that the handyman you will work with is insured so they will be covered in case they accidentally cause damages to your property or get hurt during the job.

Inquire about Receipts

Ask ahead of time if the handyman offers a receipt. There are reasons why you should do this. First is the fact that these receipts let you monitor the flow of money and offer proof of the contract’s completion. One more reason for getting a receipt is that you can use it for verifying a tax deduction when you are paying for work on a home office or investment property.

June 27, 2021June 28, 2021

How Much Should You Spend on Rehabbing a Home?

You probably want to rehab your house to make it more energy efficient, improve its value, or simply to change its appearance. Whatever your reasons might be for rehabbing your house, the whole process will begin with deciding how much you will spend for the project.

How Much Does Home Rehabbing Cost?

Your property’s size and the overall extent of the works required will directly affect the price of rehabbing your house. The best and easiest way to settle on your budget is to come up with a list of all priority items then divide the list into nice-to-have and must-haves.

For example, if you have older windows and doors that are not in their tiptop shape anymore, installation of new windows and doors must be included on your must-have list. Meanwhile, if new tiles are not urgently required for your house, this one can be added to the list of nice-to-have.

The second step you need to take is to get quotes from several builders for you to get a more realistic idea of all the involved costs. It is best to go for installers and builders that provide a free consultation and quote so you will be able to save more money as you come up with your decisions.

After you have evaluated the quotes depending on the extent of work, professionals suggest that you add another 10-20% to form some buffer for overspends that are quite common even in renovation projects with the most exact pricing. For example, if the average price is about $30,000, you might want to have a contingency of $3,000 up to $6,000.

Be sure you use your property’s market value as a good starting point to calculate the costs of rehabbing a home. The general rule of thumb here is that the amount that you spend on renovations must not be over 10% of your home’s current market value.

How to Budget for Cosmetic and Structural Home Renovations

Full structural rehabbing of your home will obviously be more expensive than cosmetic rehabbing. In cases like this, the rule of thumb of 10% for renovations might no longer be applicable. Property professionals estimate that these full structural renovations can cost you as much as 40% of your property’s current value.

This means that if your house is worth $500,000, fully-finished structural rehabbing can set you back up to $200,000. It can include changing the roof, moving walls, installing new windows and doors for improved functionality, updating the floor plan, the cost of hiring a builder or architect, and more.

On the other hand, cosmetic rehabbing like changing your bathroom or kitchen fittings and fixtures or applying a fresh coat of paint on your house will not cost you over 1-5% of your property’s value. If you want to add more value to your house before you sell or rent it, cosmetic rehabbing is often enough for the job.

It is always recommended to talk to the experts before you start any rehabbing job in your home to know how much it will cost you.

November 18, 2020

How to Handle Cash Flow Problems

Are you facing some issues with cash flow? If yes, it is only understandable that you would want to solve it as fast as possible.

No matter what the reasons might be behind your financial concerns, below are some tips on how to handle cash problems.

Boost Your Profit Margins

Increasing your prices might not be typically your preferred action but auditing your finances may reveal room for improvement. You can also negotiate better deals with your suppliers to further improve your profit margins.

Make Credit Control a Priority

It is a must that you know the specific amount of money that you owe at a particular time or period. Prioritizing the collection of owed money can help your business maintain a more positive cash flow. You can set up a computerized system to achieve this and this system will provide notification for late-payments and reduce the overall period of collection.

Audit the Finances of Your Business

Perform a review of all incoming and outgoing revenue to check where you can make some improvements or have some savings. A direct strategy to upsell complementary goods or services together with your primary offers can have a substantial effect on your turnover.

Cut Down Costs

It may seem simple to streamline costs by moving the best deals and tariffs on a regular basis. However, this is one of the best ways to make significant savings. Providers wouldn’t want to stop doing business with you and this threat alone might be more than enough to convince them to give you a better deal so you can save money every month.

Consider Small Business Lines of Credit

Small business lines of credit work similar to credit cards. As a borrower, you just need to pay interest on your outstanding balance and not necessarily the whole credit line available. Once you have your balance paid, the credit amount will replenish and you will be able to borrow all over again.

Turn to Short Term Business Loans

It is easy to get approval for short-term loans and lenders can offer funding in just a single business day at the soonest. While these loans have a higher APR or annual percentage rate, the overall capital cost is often cheaper than longer-term options that have a lower APR.

Reduce Business Expenses

One of the most common approaches to fix cash flow problems is to reduce expenses. But, it is easy to do it wrong and end up cutting larger expenses that could hurt the ability of a business to generate revenue. Good thing that there are some expense-reducing measures that can be taken to reduce the cash flow amount that a company receives with no need to hurt the overall business operations.

For instance, you can suspend some non-essential expenses such as pest control or landscaping to improve cash flow. Cut anything not essential before you reduce cut on necessities such as labor, inventory, or marketing.

These are some ways on how to handle cash flow problems. Be smarter and put an end to your financial worries in no time.

November 18, 2020November 18, 2020

How to Estimate How Much Your Company is Worth

Do you know your business’s economic value? There is a big chance that you have never tried to do it before even after running your business for a few months or even several decades.

At one point or another, it will be necessary for you to know your company’s value in cash. But, how do you do it if you lack financial expertise in the first place?

Whether you are planning to sell your business soon, you want to finance your upcoming retirement, you plan to put up a new venture, or you are in need of more investors, it is a must for you to know its real value. There are several steps on how to estimate how much your company is worth and these include the following:

Calculate the Value of Assets

Start by adding up the value of all the things that your business owns and these include all inventory and equipment. After that, subtract any liabilities or debts. The value of the balance sheet of a business is at least a good starting point to determine the worth of your business. But, there is a possibility that your business is worth so much more than the net assets that it has. You also need to consider your expected earnings and revenue.

Base It on Your Revenue

How much are the annual sales that your business generates? Make sure you calculate this and determine the typical worth of a similar business in your industry for a specific level of sales with the help of a business broker or stockbroker. For instance, this might often be equivalent to twice the amount of your sales.

Use the Earning Multiples

Another relevant measure to estimate the worth of your company is with the multiple of its earning or the P/E or price to earnings ratio. Try to estimate your company’s earnings for the next several years. If your typical price to earnings ratio is P/E with projected earnings of $200,000 annually, the worth of your business would be $3 million.

Conduct a Discounted Cash Flow Analysis

This discounted cash-flow analysis is a rather complicated formula that checks the yearly cash flow of a business and projects this into the future and discounts the future cash flow’s value to today with the use of net present value calculation.

It’s Not Just About Financial Formulas

Never base the assessment of the value of your business on the numbers alone. You might also want to consider your business’s value according to its specific geographical location. Aside from this, you also need to take into account the potential strategic value of the business to a potential acquirer if business synergies occur.

Business valuation is extremely important for buyers and investors. Evidence of value is critical to gain the interest and attention of those who have the financial capital you need and are looking for. If you cannot show the worth of your business to an investor, they will never know the amount of reasonable monetary investment they can make.

Use these tips on how to estimate how much your company is worth.

November 18, 2020

Five Tips for Hiring Great Employees

When you are a recruiter or hiring manager, you need to be diligent and creative enough to ensure that you recruit only the top talent from a large pool of candidates. But, the question now is, how do you ensure that you hire the perfect people for the position?

Check out these five tips for hiring great employees that can help with the growth and success of your company or organization:

1. Start with a Good Job Description

Job analysis is the first step to hire the right employee. This allows you to gather information regarding the essential skills, work environment, responsibilities, duties, and outcomes of a certain job. The data from job analysis is crucial to develop the job description for new employees. This job description helps you plan your strategy for recruiting the right employee.

2. Treat Job Candidates Like Valued Customers

It doesn’t matter if it is a face to face interview or a phone screening because the first impression of an applicant of your company is crucial. You need to make them feel and show them that you are excited to know them better as you consider them for the job. Among the best techniques for recruitment is to treat applicants just as you treat customers and clients. Respect their time, be hospitable, and make yourself available.

3. Provide an Employee Referral Program

The best candidates often surround themselves with equally capable professionals. Although most employees might already share open roles with qualified contacts within their networks, a properly developed employee referral program may help encourage your employees further to refer to other great candidates they know. You can provide incentives for every referral with contests and bonuses to make the program even more exciting.

4. Prescreen Candidates

There is one very important reason why you should prescreen candidates every time you hire an employee and that is it helps save time for the selection and interviewing committee. While candidates might look great on paper, you can determine if their specific qualifications are really suitable for the position through a prescreen interview.

In addition, a prescreening interview also helps you determine if the salary expectations of the candidate are compatible with the job. A skilled phone interviewer can also get evidence if the candidate is fit for your company culture or not.

5. Take Past Candidates into Consideration

Finally, when hiring for a position, some talented candidates usually don’t make the cut because of timing and other external factors. Every time you recruit for the same position, you might want to revisit the resumes of previous candidates. These applicants are already familiar with the company and might have also gained new experience and skills since the last time spoke.

As far as finding the best talents is concerned, it is a must that you are persistent enough with the willingness to use your creativity. With the use of these five tips for hiring great employees, it will be easier and faster for you to discover highly passionate and qualified professionals who are more than ready to be part of your team.

November 18, 2020

Why are There So Many Different Credit Scores?

Have you noticed how your credit score seems to fluctuate depending on where you have it checked? Well, don’t be surprised by this inconsistency. That fluctuation is because the United States has three major credit bureaus that independently calculate credit scores to ensure fairness. These include Transunion, Equifax, and Experian. All of these three also use several models for credit scoring.

FICO® Score is the most commonly used model for credit scoring although Vantage scores have also risen to popularity since its launch in 2006. The three credit bureaus are using a predictive scoring system to determine the credit risk of a consumer.

Although these three bureaus are using the same models, each of them has proprietary and small differences for calculating credit scores. But, the basis of the systems is the same across the three bureaus so a consumer with high scores on the data of one bureau will likely see the same high score at the rest of the two bureaus.

Why Do You See Different Credit Scores?

There could be several reasons why you might be seeing different credit scores from each of the three bureaus. The most common ones include the following:

The dates of the credit scores are not the same

Your credit score can change at any time. Since the data in your credit reports can get updated at different times at every bureau, a certain bureau might be missing one account or other details that might hinder or help your score. If you requested your credit report from one bureau two weeks ago, it is highly likely that it will be different next week depending on the new reports.

Different credit scoring models were used to calculate the scores

Similar to a fingerprint, all of the three bureaus are using scoring systems that are slightly different from each other. Although you know the basis for calculating your credit score, each model is slightly different from one person to another depending on the different lenders’ requirements and the person’s history. For instance, a car lender might use a completely different scoring model than a mortgage lender since both of them place more importance on specific different factors.

The details in your credit reports are different among the credit bureaus

It is actually a very common scenario than what you might think. There are lenders that report to the three bureaus but some might not even report to any of them at all. This is why it is always a wise idea that you go through your credit reports every now and then to check for errors because even the smallest mistake can easily impact your score.

At the end of the day, even if you see variations and differences in your credit scores, rest assured that all of these have been based on the information indicated in your credit reports. This is why you need to focus on what is in your reports as this can help you in building your credit as a whole.