Sahel Rafael Tamayo - A Cuban American Entrepreneur

April 15, 2019

How to Minimize Your Expenses

It requires sacrifice and effort to spend less and avoid debt. This is the reason why not a lot of people really manage to minimize their expenses and enjoy financial freedom. But, it doesn’t mean that you can’t do it, though. Here are a few tips to help you lower your expenses:

Create a Budget

Knowing where your money goes can help you gain better control of your money. Budgeting helps you identify areas where reducing expenses is possible and which areas you should change your spending habits. It is not easy to maintain a budget, much less maintain it. However, with some practice, you will surely master it in no time.

Shop Smart

Say no to impulse buying! Conduct a research first to ensure that you get the lowest price for every purchase you make. This entails visiting several websites or stores before you actually go shopping. Finding the best deals and avoiding impulse buying can help you save some cash in the process. This takes effort and time but any money you save is always worth that extra work. You can then use the cash you saved to pay off debts, make investments, or for any needs you might have.

Lower Your Bills

To lower your bills, you have to cut back on your utilities such as lights, cooling, heating, water, and such. For instance, every time you are away from home, ensure that you turn off all the lights. You can also regulate the thermostat cooler or warmer so that you don’t waste money in making your home comfortable when you are not even there in the first place. Some may find this easy to do but others may not. Always look for a routine that will work for you then stick to that.

One more thing you can do is to research into different phone plans to see if there are new ones that offer the same benefits but at a cheaper rate. You can try to do this with your satellite or cable TV providers, too. Don’t worry if it is just a few dollars saved every month. After all, every dollar you save means more money goes to your pocket.

Refrain from Dining Out

Let’s face it, dining out can get quite expensive. When you eat at home, you will not just save money but at the same time, you can eat healthier and enjoy quality time with your family and loved ones.

Also, when you shop at grocery stores, list down the things you need in advance. Shopping with no list prepared will only make you purchase goods that you don’t need or don’t eat.

Transfer Credit Cards with High Interest to One Account

The high interest rates charged by credit card companies are how they make money. If you are using several cards, one thing you can do is apply for a credit card that has a 0% introductory rate for balance transfers. This will not just let you pay off credit cards at faster rate as you can also save cash along the way.

Spend less and avoid debt through these simple tips.

April 15, 2019

How to Live on a Dollar a Day

What is the lowest budget you can go for a day? Do you think you can make it through with just 10 dollars? How about 5? How about 1 dollar a day? Wait, is this even possible?

If you are just like most people, chances are your mind instantly thought of negative things after asking these questions. More often than not, many people start to shut down then convince themselves that living on a dollar a day is a challenge not worth the try.

Just ask Kerri Leonard and Christopher Greenslate of Encinitas, California. They chronicled their experiment for a whole month in healthy and cheap eating. During this, they learned that it is impossible to eat fresh produce on one dollar unless you have a garden of your own. However, it is very possible to survive on rice, beans, oatmeal, and wheat gluten.

To reduce your budget for food, there is no need for you to try restricting yourself just as how Leonard and Greenslate did. You cannot stay energetic and healthy when you are already becoming malnourished. Since one of your biggest investments is your own health, since you cannot have an income if you cannot work, you have to spend enough cash for you to remain healthy without spending too much money on processed convenience and fast food foods.

Below are several frugal ways to help you save on your food expenses without compromising your health and be able to live on a dollar a day.

Purchase in Bulk

This is the number one secret of Leonard and Greenslate. They bought bulk quantities of rice, beans, and oatmeal. Beans and oatmeal in particular have high fiber and make you feel fuller even for a small amount of money. Purchase as much as you will need for a whole month to enjoy more savings.

Grow Your Own Food

This is not as challenging as it sounds. Every time food prices increase during summer, most people plant their own gardens. You can buy sees for very cheap prices and most vegetables can grow even in small spaces like patio planters or backyards.

Support Local Farmers

Find the closest farmer’s market in your area and take a trip there to pick up the freshest vegetables and fruits of the season. Natural foods always taste great and most of the time, their prices are much better than if you will buy from national supermarkets.

Shop with Coupons

Every dollar a day that you can save is money that you can set aside for future investments. Sign up for your local store’s discount card and use coupons at the same time to increase your savings.

Buy from Bargain Stores

The giant grocery names can charge 50% more compared to low cost discounters. You can find canned goods in bargain shops. There are also dollar stores selling bread, fresh produce, as well as other items that are traditionally expensive. You can even save money if you shop from stores that let you bag your groceries on your own.

April 15, 2019

How to Determine if Your Company is Insolvent

Being able to determine if your company is insolvent or not is essential since a director can end up facing a lot of serious consequences if the company incurs debt or debts after it become insolvent. These can include compensation proceedings, criminal charges, and civil penalties. But, it is usually hard to identify if a company already crossed that significant line of having a problem with cash flow to and going down the road to bankruptcy.

This article takes a look at insolvency indicators and legal tests that companies can use to know if they are facing financial difficulties in the horizon.

Legal Tests to Determine Company Insolvency

The section 95A of Corporations Act 2001 defines insolvency as follows:

A person is only solvent if the person can pay all of his or her debts when and as they become payable and due.
A not solvent person is insolvent.

It is not straight forward to answer the question if a company can pay all its debts when and as they become payable and due. The Courts took into consideration section 95A’s operation and listed down several insolvency indicators.

Insolvency Indicators

Potential indicators of insolvency include the following:

Liquidity ratio less than 1 – Liquidity ratio is determined through dividing total liquid assets by short term borrowing amount. This will show if short term liabilities have been covered.
Continuing losses – Company insolvency stems from the combination inadequate working capital and losses. Incurring continuing losses is a serious red flag for a company director indicating the likelihood of insolvency.
Lack of access to alternative finance – Companies with inadequate cash for paying its debt have to raise additional money to remain solvent. The lack of ability to refinance with banks or increase equity shows absence of confidence in the viability of the company.
Payment of rounded sums to creditors – It indicates that the company makes payments based on available cash at the time and the company lacks the ability to pay off its debt.
Issuing dishonored or post-dated cheques – It shows that the company is unable to pay its due debts.
Overdue remittances of taxes – Withholding the payment of tax commitments is usually considered as the easiest means for companies to preserve their cash flow in short term. This is a strategy being adopted by most companies facing financial strife.
Lack of accurate and timely financial information – The ability of a business to maintain organized and accurate records are a great sign of its wellbeing.
Suppliers place debtor on COD or cash on delivery terms – This is an evidence that there is a deterioration in the trading relationship of the company with its suppliers.
Poor relationship with the bank – Banks can see the cash levels and financial transactions of a company. This is why they are the first ones that can assess a company’s financial position. If a bank cannot extend additional credit, this shows that the bank doesn’t see the company as financially sustainable.
Creditors issue legal proceedings or demands – Legal proceedings or demands are serious concerns since these pave way to involuntary liquidation and requires close monitoring.

March 12, 2019

Why You Should Never Borrow Money To Start A Business

Majority of starting or growing business will need to borrow cash at some point in time. While taking a loan or on debt is risky, it’s vital to level up a business. However, there are some reasons why you must not borrow money if you are going to start any kind of business.

Some of these reasons include the following:

Repayments May Damage Your Cash Flow

Debt repayments may derail your cash flow once your business becomes too leveraged. Therefore, it is essential to borrow for the right purposes at the right rate for interest and make sure any kind of repayment you take on are affordable and realistic.

Borrowing May Reduce Your Options

Seizing a chance today may mean forgoing some opportunities tomorrow. The repayments will minimize your spare cash for the loan’s term, which means you’ll have less to spend on people, premises, and plan. But, if borrow for the right purposes with right rates, you will be able to provide your business a boost, which repays dividends in the long run.

Interest Rates May be High If You Have Low Credit Score

Not every loan is equal in terms of affordability. Your credit score will actually have a good deal to do with it. Once your business appears to be a risky investment, you’ll find yourself paying a good deal more for the same finances, so you must focus on establishing your credit score and reputation before you seek a loan.

Start a Business Without Borrowing Money

For most of you, small business loans are accessible and convenient if you have good credit rating with collateral and if you agree paying a big portion of the costs. Banks will fund new businesses. These loans are only accessible and convenient to people who don’t need money. Even with a great credit history, they won’t give loans for new company though the company has guaranteed contract to buy a big order.

Business loans offer different loan options like personal loans and mortgage. They’re only as original and inventive as banks wish to make them. In most cases, the real freedom is offered only to those who have long-term established business account with banks along with good credit rating.

Probably, the biggest disadvantage of these loans is the interest rates. Although banks offer low interest rates for loans, they often compensate for low charges with big account fees. In fact, even depositing money to account manually would cost the business owner some cash. They provide low rates of interests, yet the attached account to the overdraft or loan won’t doubt cost lots of cash to maintain.

There are also advantages of borrowing money to start a business. However, if you are a wise business owner, you will not consider it because of the possible disadvantages that you might experience in the long run. Remember that you are just getting started with your business and you must do your best to use your own money for it to avoid any possible problems.

March 12, 2019

Why You Should Attend Industry Conferences

Many people relish the experience of joining industry conferences. Well, you couldn’t blame them because there are so many things to love about such conferences. You get to travel to a new city, step outside the office and get exposed to brand new ideas. There are also more fun perks such as free swag, cocktail hours, and even celebrity speakers.

On the other hand, if you happen to be a manager, you are probably worried with the expenses associated with all the things mentioned above. You might be curious to know if it would be worth it to send your employees to these industry conferences if you can just simply require them to attend free webinars with no need to leave the office.

In case you don’t know it, there are a lot of good reasons why attending industry conferences is nothing compared to participating in those free online webinars. Why don’t you read on to discover the true values and benefits of attending industry conferences both for organizational growth and employee development.

Exposure to Innovators and Experts

Industry conferences will differ when it comes to how much one on one contact they offer to the innovators and experts. However, every conference offers exposure to different industry leaders through keynotes and sessions.

Out of Office Thinking

Have you ever heard how sleeping on a problem could point you towards the right path to a good solution? There are times when you need to take a quick break from doing the job so that you can make breakthroughs and gain perspective. Attending industry conferences can disrupt routines and expose you to brand new and fresh ideas. You can go back to your work feeling recharged with fresher inspiration and motivation.

Professional Networking

Industry conferences don’t just put you face to face with the experts for you can also become surrounded by some of your field or industry’s most engaged, driven, and accomplished people. Industry conferences provide numerous opportunities for you to meet and mingle with your fellow attendees. You can make the most out of this time to form new connections or reconnect with some prior acquaintances.

Knowledge Share

Every time an employee attends industry conferences, the insights and knowledge they learn don’t just end with them. They can also bring back this learning to the company wherein they can share with their colleagues the things they learned, pitch some new ideas to make the business more effective and efficient, and take their work caliber to a higher level. Investing in just a single employee is already investing in the entire team and the company as a whole.

Discover New Tools and Trends

Industry conferences are the perfect place to discover the greatest and latest in your industry, from groundbreaking tools, to new techniques, or growing trends. If you wish to stay right at the forefront of your field with all the latest relevant set of skills and knowledge, it is a must to be a regular attendee of industry conferences.

March 12, 2019

What is PMI or Private Mortgage Insurance?

There are some kinds of mortgage insurance. The one that many people complain about is PMI or also known as Private Mortgage Insurance. Homeowners with PMI need to pay hefty premium and insurance does not cover them.

Private mortgage insurance or PMI provides zero protection to borrowers. Some borrowers think that PMI makes them special, yet there aren’t any offered private services with this type of insurance.

A less known kind of mortgage insurance is the type, which pays off your mortgage once you die. In short, you pay small premiums for a less chance of dying. You can get better protection with a life insurance policy. The kind of mortgage insurance that many people carry is the kind that ensures lenders in case the borrowers stop paying the mortgage.

Reasons Why You Pay for PMI

A lot of borrowers take out PMI for the reason that the lender requires it. This is because borrowers are putting down less than twenty percent of sales price as down payment. The less the borrowers put down, the higher the risks to lenders. Thus, the lender likes insurance against default.

You do not select a mortgage insurance company and you cannot negotiate premiums. It may not be typical, yet what happens if you get mortgage that exceeds eighty percent LTV or loan-to-value.

Who is Required to Get PMI?

Homebuyers who put down less than twenty percent of the purchase price of the home and the ones who have a conventional loan are typically needed to pay PMI. You should ask your lender if the loan you’re considering needs PMI or MIP or mortgage insurance premium.

PMI – How Much Does It Cost?

The cost of private mortgage insurance relies on your down payment and credit score, yet it ranges from 0.3% to 1.5% of the yearly’s original amount of loan. This is an extra cost aside from the interest you pay on mortgage.

There are some ways on how you can pay PMI and these include the following:

One Huge Payment – There are times that lenders would require borrowers to pay PMI in full at the time of closing. You may see if yours does in loan estimate.
Monthly – Majority of policies in PMI require borrowers to make payments every month. It’s an extra charge added to your mortgage bill every month.

You can also consider both options. You can pay some of PMI upfront like a down payment and you can just pay the remaining monthly.

Factors to Consider When Choosing a Loan That Requires Private Mortgage Insurance

Like some kinds of mortgage insurance, private mortgage insurance may help you qualify for loans that you might not get other. However, it could boost your loan’s cost. It does not also protect you once you run into issues on your mortgage. This will only protect the lender. Sometimes, lenders provide conventional loans with small down payments that don’t need PMI. Typically, you’ll pay higher interest rate for such loans.

March 12, 2019

Top Five Traits of a Top Sales Person

It doesn’t matter if you are already a great salesperson who wants to improve yourself or you are a sales manager searching for the perfect addition to your sales team. You will get the best results if you know what makes a top sales person great.

Check out the top five traits a sales person should have.

High Level of Organization

For your sales skills to be put to good use, you have to be organized so that you can juggle all your priorities. There are some prospects that require regular contact for them to turn into clients. There are also potential clients in different stages of the sales process, and there are also existing clients who should be assured that they are still a priority. Pitch in meetings and scheduling with managers, administration, trainings, and many other corporate needs. Proper organization of your accounts and your days as a whole is important to sales success.

High Emotional Intelligence

High emotional intelligence, or also called EQ, can be refined easily if you already have it but it could be a bit hard to cultivate when low. EQ refers to the ability of knowing your tendencies and behaviors and how these affect or will affect the people around you. High EQ also means that you have the ability to adopt your own behaviors to get successful outcomes.

While most research studies reveal that EQ is becoming more and more critical for leaders and in the workplace, it is also a must to be a top sales person. High EQ allows you to adapt to situations and people, pick up on cues, and has stronger effect in selling compared to the rest of the top five traits.

Resilience

Resilience is yet another essential trait of a top sales person. You can guarantee consistent sales results if you can bounce back quickly if things go down south. Resilience is cited as the top trait of a top sales person. Sales entail lots of ups and down. A salesperson who can bounce back fast constantly sees success in their field.

Self-Motivation

Self-motivation is self-discipline mixed with fire in the belly. Only a highly motivated person can get up each morning, make calls, plan, and organize their day even if no one looks over their shoulder. But, the road to becoming a top sales person requires more than that. It needs discipline to carry out a properly organized plan. Most salespersons work from home and this kind of environment is filled with distractions. A top sales person has self-motivation to keep them right on track.

Desire to Improve

The last of the top five traits of a good sales person is the desire and willingness to do better with their craft. The best of the best salespeople constantly work to become better. They have the humility enough to know that even if they are good with what they do, they are still open to the chance to get a little better. They refine what they know and do and actively look for ways to become more efficient.

March 12, 2019

Top Five Tips on How to Host Your Very Own First Airbnb

Homeowners can now earn some extra cash on the side by opening the doors of their homes to guests looking for short-term vacation rentals. As a result, Airbnb rentals are growing more and more popular by the day. But, amidst this very competitive market wherein references and good reviews are vital to ensure the success of your vacation rental business, it is a must to host your Airbnb in the best way possible. This is a business that also becomes an art when done the right way.

Below are some useful tips to host Airbnb and give your guests a five-star experience.

Add a Personal Touch

When you host your Airbnb, having a personal interaction with your guests can spell the difference between a memorable stay and a so-so experience. Try to know more about your guests prior to their arrival and ensure that they know that you are ready to answer their questions about the area or the Airbnb. Greet them when they arrive and check to see that they settle in well to form a personal relationship. This is also your chance to make sure that everything they will need for their stay is within reach. Take things a notch higher by leaving them with a welcome note.

Cleanliness is a Must

Your Airbnb must always be clean all the time for your guests to have a memorable vacation. Bathrooms must be spick and span, trash cans should be always be emptied, dusts must be wiped, and signs of previous guests must be removed. If you are using a cleaning service, it would be great to prepare a checklist of things that should be done during every cleaning so that nothing will be neglected.

Stick with Simplicity

When you host your Airbnb, minimal clutter is a must. As much as you want the Airbnb to make your guests feel at home, you shouldn’t make it too personal to the point that guests will feel as if they are intruding with your way of life. Avoid displaying family pictures and remove personal belongings from drawers and closets. The goal here is to give your guests a comfy space where they can just relax, spread out, and genuinely feel at home.

Inform Guests

One of the best tips to host Airbnb is to offer your guests all the necessary information before and during their stay to create a better and smoother experience. Give them clear instructions during check-in and clarify house rules prior to their arrival to set their expectations beforehand. The moment your guests arrive, it should also be easy for them to find essential instructions for different equipment pieces like fireplaces or stereo systems. You should also give them contact details they can use if they need help or have questions. Tell them the checkout procedures and other things that require explanation.

Help Your Guests Explore

Offer valuable service to guests by acting as their personal concierge. Recommend good restaurants or give them directions to the best attractions of the area. You might want to write down these recommendations so guests can browse these at their leisure. You can also stick your property with guides or books about the place.

March 12, 2019

How to Travel the World for Cheap

Almost everyone in this world loves to travel. Nothing beats the thrill of venturing into the unknown. A quick search online will make you see all those scenic photos of countries that easily sparks this desire to pack your bags and fly to the nearest destination. Unfortunately, though, traveling also happens to be one of the most expensive pleasures there is. This is not something everyone can easily afford.

But, the good news is that you can travel cheap as long as you know what to do. If one of your biggest dreams is to travel the world, there are several tips that will help you do exactly just that without breaking the bank.

Carpool

Carpool refers to several people travelling in the same vehicle. For example, you can try to look for someone who is travelling in the same direction as you then split all the expenses in half. The best thing about carpooling is that more people joining the trip means you will also be paying less for your travel.

Swap Homes

Home swapping is quickly becoming a popular trend that you can find the method to travel cheap on some websites. As you know, most of your travel expenses will go to your accommodations. But, if you choose to swap home with fellow travelers, you will be able to get rid of these expenses, making your trip so much cheaper than before. This also has many added perks such as proper bathrooms, a fully equipped kitchen, and all the other things you will never find even in the cheapest hotels.

Hitchhike

If you want to travel the world cheap, you can always go for the old-fashioned way of hitchhiking. What you will basically do here is that you will try to stop people on the road then travel with them to the same direction they are headed to. This is one of the best ways to meet new local people. On top of that, this is completely free although there are some hitchhikers who offer cash in exchange for this favor.

Use Budget Airlines

Several airlines started to offer their passengers with extremely low ticket rates several years ago. While these budget airlines may not provide added comfort, remember that your main goal is to travel cheap and see the big world out there, not fly in a first class airplane.

Be a Cruise Ship Crew Member

This particular method is not just great to travel cheap for at the same time, you can also earn money during the process. You can enjoy visiting different countries, see wonderful destinations, and have a steady flow of cash coming in. Obviously, there are several downsides here. You need to work so you might have a limited time to go sightseeing. But, the good news is that crew members can get a few days off once the ship reaches its port of destination. This is the perfect time for you to explore the place.

You see, you can travel cheap and discover the world around you. Try any of these methods and have the best travel experience ever!

March 12, 2019

How to Save A Million Dollars

Saving a million dollars may seem impossible for many. But, it is possible if you will follow some strategies like the following:

Try to Live Below Your Means

You can save money in 2 ways. It’s either you can spend less money or make more. In many cases, it is much easier to lessen your spending and live more frugally. It means buying a modest home, scaling back on expensive vacations, buying practical car, using coupons, and making a budget so you could easily track your spending.

Save Money As Soon As Possible

If you start saving as early as possible, the lesser amount of cash you will need to put aside every month. For instance, once you start saving about $405 and you are only 25 years old, you will get a yearly return of 7% and you’ll be a millionaire once you are 65 years old.

Make Saving a Part of Your Life

Determine the amount of cash you like to save every month and have that withdrawn automatically from your paycheck. If you will be stuck on where you should place the money, begin with 401k or some employer-based retirement plan. If you have this cash taken out instantly, it will prevent you from spending that. Others find it a beneficial thing to do, especially when starting with the income’s percentage instead of the actual amount of money. If you are struggling to start, you may begin with two to three percent of your income. Then, add extra percent every year. The whole point is to start.

Always Choose Your Investment Wisely

Saving accounts as well as certificates of deposit are a good place to begin. However, if you want to grow your own wealth, you must invest in stocks. While there’s absolutely a risk involved, you must choose a portfolio that would provide you a shot at a realistic gain, but also be comfortable sticking with during a major market setback. It’s done through taking risk tolerance test.

When it comes to choosing an investment for your portfolio, it’s recommended to focus mostly on diversified low cost ETFs or index funds. The reason behind it is that lesser the return you give to the fees, you’ll be able to add more on your savings.

Pay All Your Debts

If you have a credit card with a huge balance, you will struggle paying on its interest rates. If you are used to paying everything through your credit card, better discipline yourself and never consider this a habit. So, if you have money and you can pay your debt, do not delay it and pay immediately. Although you need to put aside some savings for a year or for several months, it’s worth it since you can put your monthly payment to your retirement instead. Make sure to understand every payment and how it works for you. This will provide you financial freedom and will surely help you save a million dollars before you retire.