Used Car Loans – Added Advantages of Buying a Used Car

Once the driving license is obtained, the next order of business is to decide whether to opt for a new car or a used car. Due to the fast changing consumer preferences, majority of the people sell off their old cars for newer models. This has resulted in not only boosting the emerging car market, but has also augmented the used car market. Accessibility to a used car has increased manifold as various banks and auto financing companies are approving used car loans. Moreover, there are numerous reasons associated to why many people are moving towards a used car.

So why is the sale of used cars gaining momentum?

Controlled Budget

Surely, buying a brand new car can seem to be a desired fantasy. The smell of a new car, plush cozy seats and the attractive paint are coveted. However, can your income really cover for the expenses of indulging in a new car? The sources to meet the heightened expenses would be through past savings or other income. A rational alternative would be to rather buy a used car that serves the purpose of acquiring a vehicle for your daily needs. Also, the amount you shell out for a used car will be comparatively lower than the amount spent on a new car, helping you to save money in the process.

Sustainability – Not a problem

The onset of the trend of selling current cars for newer ones has led to a huge surplus of used cars with an average age of 4 years. This indicates that the used cars still possess longevity of many years before they turn obsolete. Therefore, the sustainability of the used car does not pose as an obstacle and people are more willing to invest in used cars, especially when it is so cost efficient.

Easier Loan Approval

Obtaining an approval for a used car loan is fairly easier when compared to seeking loan approval for a newer car. While many banks do not highlight used car loans as their top-rated product, the process of acquiring it is less complex which makes it suitable for those who want to make an immediate purchase. The key advantage here is that even when a bank does not approve a loan request, there are quite a few auto financing companies who can either act as a bridge between the loan applicant and the bank; or completely finance the car from their end. In both the instances, attaining a loan gets easier if it’s for a used car.

Now, there are also a few things to keep in mind before you apply for a used car loan. The age set for qualifying for the loan is 18 years with minimum earnings of $1800 per month. This is one of the major reasons why many teenagers select a used car over purchasing a new car. Usually, an auto financing company looks for car buyers with a good credit score and zero bankruptcy history. These features help in instilling a sense of goodwill and provide reassurance for the payment of the loan from the car buyer.

All in all, a used car loan can conveniently help you to fix your priorities with a control on the budget at the same time. If a stress-free loan approval within the purview of a fixed budget is a criterion that you seek for your next car, you know right where to invest.

Get Out of Financial Misery With a Car Title Loan

If you have exhausted all the options of obtaining money, do not worry. There is one more option with you. It is your car. Confused? You can obtain a car title loan and get out of financial misery.

How does the Car Title Loan work?

It is easier and faster to get a car title loan when you own a car that’s paid off. You will have to provide the car title to the lender. In return, he will provide you with money.

Various auto financing companies and lenders offer online loan approval. They take help of the internet to reach maximum clientele. Also, many lenders design software applications for mobile to allow you to see how much loan amount you will get for the car title.

The loan carries high rate of interest as it is a short-term loan. While approving the loan, lenders consider the value of your car instead of your credit score. It is possible that a few lenders may even require car insurance. The loan amount depends on three things:

1) Your car’s value;

2) The amount of cash you need;

3) Your ability to repay the loan.

Thin Line of Difference between Auto Pawn Loan and Car Title Loan

If you apply for an auto pawn loan, you will have to provide your car along with the title of the car to the lender. He will keep the car as security. Under the auto pawn loan program, you will receive more cash since both the car and the car title are in the possession of the lender.

What happens if you are unable to make Payments?

If you are unable to make payments on the loan, you may lose your only car. However, the lender may allow you to keep the loan for one more month after the due date. The process is known as “rolling over” the loan.

If you are unable to make payments even after rolling over the loan, the lender will repossess your car. He will sell it in an auction to recover money. So, it is essential to pay off your dues in the specified time period.

A car title loan is one of the best options to get money when you need it the most! But, remember to create a plan for ensuring regular payments. And, once you have a plan ready, it will get you out of financial misery and save your car from repossession.

Why Should You Opt For Dealership Financing?

If you are scanning through used cars or new cars for your next purchase, there is a good chance that you may choose auto loans as your preferred option of financing. Due to the current state of economy, not many potential car buyers pick cash payment for the purchase of their new car. A majority of the drivers opt for auto loans. There are numerous ways of obtaining finance for the purchase of your new car, some methods being simpler than the rest. Dealership financing is one of the preferred methods that not only helps you in getting a tailor-made auto loan, but also eases the whole process of acquiring a new car.

How is Dealership Financing different?

Typically, dealership financing is when the dealers extend a loan to their customers. Simply put, it is an in-house financing method wherein either; the dealer will himself finance the auto loan or find a loan for you by visiting banks and credit unions, ensuring that you get the best loan. Usually when you shop around for cars, it becomes an added task of finding a lender for your loan. Dealership financing is different with regard to its aspect of keeping the transaction strictly between the buyer and the dealer, thereby making the whole process a lot simpler.

What are the Reasons for choosing Dealership Financing?

· Convenience

One of the best parts of choosing dealership financing is that everything that you need for the purchase of your car is available under one roof. In a usual case scenario, you might have to make rounds between the dealership lot for choosing your car and the third-party lender for obtaining an auto loan. However, with dealership financing, the process is simplified as your dealer becomes your lender. It is convenient in the sense that you can choose the car of your liking while arranging the auto loan, all at the same place.

· Flexibility

Accommodating a tailor-made auto loan that suits your needs is another feature of dealership financing. As it consists of a more realistic approach, dealerships often provide flexibility in auto loans. It means that you can have flexibility in choosing a budget for your car as well as deciding the monthly payments of your auto loan. Although every lender makes sure that you do not miss out on your loan payments, a dealer presents you with additional financing options that are flexible according to your needs.

· No Discrimination on the Basis of Credit Score

Ideally, it is an arrangement between you and the dealer to ensure that you make monthly payments comfortably. Thus, while negotiating for the finance of your car, the dealership will take into consideration a lot more than just your credit score. Therefore, if you have a bad credit history or a poor credit score, you can still stand to get your loan approved. Also, it can prove to be a credit booster as you are availing a loan with a low credit score.

Dealership financing has its own set of benefits. From arranging a deal that can put you in a position to afford your monthly payments, boosting your credit score and getting you the car you desire, a dealership financed auto loan may just be what you need.

Effective Cost Management and Optimal Pricing Strategies

How do firms choose their pricing strategies? Do higher prices automatically result in higher profits? How do firms that opt for premium pricing compare to firms that opt for volume? Do price increases always result in higher total revenues? These strategic policy questions relate to the optimal price points of a business enterprise-the appropriate mix of value propositions that maximizes net income and thus the return on investment and shareholders’ wealth while minimizing the cost of operations, simultaneously.

There are divergent pricing objectives and many factors influence pricing strategies. For those familiar with the relevant academic literature the critical factors are well known and supported by contemporary research. The primary goals of effective pricing strategies and core elements of effective pricing strategies are equally well established. However, some industry watchers and practitioners continue to identify profit maximization as the primary goal of business enterprises. As we have advised in previous review and guidance, this focus on profit maximization is a bit misguided.

While profit maximization is a legitimate strategic business goal, for several reasons the primary goal of a business is survival at least in the short run. There is gathering empirical evidence suggesting that when businesses overlook this reality and make profit maximization their primary and dominant goal, they tend to engage in conduct and pursue strategies that threaten their very existence. Contemporary case studies are replete with modern examples such as AIG, Bear Stearns, Enron, Global Crossing, Lehman Brothers, Refco, Washington Mutual, and WorldCom, etc. In this review, we highlight some basic economic theory and best industry practices of effective pricing strategies. This article provides general guidelines for establishing optimal pricing strategies and effective cost minimization strategies. For specific pricing and cost management strategies please consult competent professionals.

A close review of relevant extant academic literature indicates that most firms seek to maximize net income (difference between total revenues and total costs) based on several factors such as the stage of the industry life cycle, product life cycle, and market structure. Indeed, as we have already established, the optimal value proposition for each firm differs markedly based on overall industry dynamic, market structure-degree of competition, height of entry/exit barriers, market contestability, and its market competitive position. Additionally, as with most market performance indicators, firm-specific profitability index and revenue growth rate are insightful only in reference to the industry expected value (average) and generally accepted industry benchmarks and best practices.

In practice, firms use pricing objectives and the price elasticity of demand for products and services to set effective pricing policies. Basic economic principles suggest that price elasticity of demand indicates the sensitivity of customers to changes in pricing, which in turn affects sales volumes, total revenues and profits. Economic principles suggest that the price elasticity is low for essential goods because people have to buy them even at higher prices. On the other hand, the price elasticity is high for non-essential and luxury goods because consumers may not buy them at higher prices, ceteris paribus.

Optimal Pricing Strategies

Optimal pricing points maximize profits by charging exactly what the market will bear. Managers may adjust their pricing strategies depending on changes in the competitive environment and in consumer demand. Most successful world-class firms rely on effective environmental scanning, environmental analysis and market analytics to make informed decisions that create and sustain competitive advantage in the global marketplace. In practice, the core elements of optimal pricing strategy include the value of the product to prospective customers, the price charged by key competitors, and the costs incurred by the firm from new product idea generation to commercialization.

Further, optimal pricing is derivative of effective price discrimination which means that firms segment their market into distinct customer groups and charge each group exactly what it is willing to pay. The optimal price and volume refer to the selling price and volume at which firms maximize profits. While some small-businesses often may not know exactly what consumers are willing to pay because of limited market analytics, inept marketing information systems and ineffectual environmental scanning, most firms use historical cost data, price points, and sales data to establish market trends. In practice, most small businesses make reliable assumptions and useful estimates based on historical sales patterns and set product mix and pricing strategy accordingly.

Managerial economic principles suggest that long-term success and profitability depend on optimal pricing, or producing an output to the point where the additional revenue of an extra unit of output equals the additional cost of producing that unit: (MR=MC); in other words, producing where marginal revenue equals marginal cost. In practice, we can derive marginal revenue from the firm’s demand. The mathematical derivation is given by: MR = P(1+(1/Ed)) =MC. However, an easier method of deriving marginal revenue is to use the price elasticity of demand. Since maximizing profit requires marginal revenue equals marginal cost, we can derive optimal price from the relationship between marginal revenue and the price elasticity of demand. Consequently, the optimal price is P = MR = MC(Ed/(Ed+1)). As we know, based on law of demand price elasticity is a negative. Therefore, optimal price, P = (MC*Ed)/(Ed-1).

Additionally, there is a confluence of empirical evidence in the extant academic literature suggesting that optimal pricing is possible only when there is a difference in price elasticity for different consumer groups. For example, a store chain may price the same item higher in a wealthy neighborhood, where consumers may be less sensitive to price, and lower in a working-class neighborhood, where consumers may be more sensitive to prices. The factors that affect price elasticity include whether the product is a necessity or luxury, the availability of substitute products and the proportion of disposable income required to buy certain product. The price elasticity will be high if consumers can buy alternative products or if they have to spend too much of their discretionary income.

Some Operational Guidance

Basic economic principles are supported by gathering empirical evidence suggesting that higher prices do not guarantee profit and higher total revenues do not guarantee profit. In practice, most world-class firms know that the critical variable is effective cost management. The objective functions are revenue enhancement and cost minimization. Indeed, competitive advantage in the global marketplace derives from strategic options based on EQIC: Efficiency, quality, innovation and customer responsiveness. Further, because profit is the different between total revenues and total costs, there are several ways firms with market power maximize the profit producing capacity of their enterprise. Firms can increase profit by increasing total revenues while reducing total costs; and they can increase profit by increasing total revenues while keeping total costs from rising; or they can increase profit by increasing total revenues more than they increase total costs.

Additionally, revenue enhancement can be quite expensive and often, the relationship between profitability and revenue growth is quadratic which implies that revenue growth rate may be functional and profit-enhancing or dysfunctional and profit-reducing. For most successful firms, the strategic objective is to locate the optimal revenue growth rate of the enterprise where profit is maximized, ceteris paribus. Two strategic value propositions and pricing options based on Du Pont ROI model are available to most firms: Premium pricing (emphasizing high mark-ups, high profit margins and profitability); and High turn-over rate (emphasizing high productivity and effective use of available assets). There is significant empirical evidence suggesting firms that opt for scale and volume tends to outperform those that opt for segment and premium, all things being equal.

Managerial economic principles suggest that price effects depend on the size of income effect and substitution effect. Further, the effect of price changes on total revenues depends on price elasticity of demand. When products are price elastic, price increases will reduce total revenues while price reductions will decrease total revenues when products are price inelastic. The opposite is equally true. Therefore, firms seeking revenue enhancement should lower prices if products are price elastic and increase prices if products are price inelastic, all things being equal.

Moreover, the target is optimal scale of operation-the Minimum Efficiency Scale (MES) where firms minimize their long-run average cost via economies of scale. As we have already established, scale economies derive from economies of scope, division of labor, specialization, experience curve, and learning effects. A careful analysis of the extant academic literature suggests that the optimal price path should be largely based on the sales growth pattern. However, in the real world we rarely find new products that have such pricing pattern. Indeed, we observe either a monotonically declining pricing pattern or an increase-decrease pricing pattern that does not seem close to the actual historical sales path.

Contemporary research on optimal pricing for the most part contend that the dominant firms and most firms with market power will maximize their present value by either charging the short-run profit maximizing price and allowing their selective demand-market share to decline or by setting price at the limit price and precluding all new entry. And because price sends multiple signals to diverse stakeholders including regulators, current and potential competitors, firms that opt for short-run profit maximization would have to ignore continually the reality of induced potential and new entrants and close scrutiny by diligent industry regulators.

Conversely, firms charging the limit price have to be convinced that their prevailing market share is optimal, that is P = (MC*Ed)/(Ed-1). While there is only limited analytic justification for this strategic dichotomy, professional intuition suggests that the optimal strategy requires careful balancing between current profits and future market share. Managerial economic principles strongly suggest that the rate of entry of rival producers into a specific market is a function of current product price. There is strong empirical evidence indicating that the variation in rate of firms entering or exiting an industry is positively correlated with the level of industry profits. Therefore, a dominant firm with high current product price and profit levels may be sacrificing some future profits through gradual erosion of its selective demand-market share.

In sum, optimal pricing strategy depends on effective cost management, market dynamism, and price elasticity of demand. Regardless of market structure-degree of competition, the output level where MR = MC is always optimal, whether the firm is earning an economic profit, breaking even, or operating at a loss. Firms seeking to minimize costs should operate at the output level where P = MR = MC = minimum ATC -the price is equal to marginal revenue, and the marginal cost; and the minimum of average total cost. This is a very useful economic principle because when a firm is earning profits-it maximizes profit where MR = MC and when a firm is incurring losses, it minimizes loss where MR = MC and the minimum of the ATC, ceteris paribus.

22 Great Ways to Save Your Money

How to Save your Money?

1. Turn off the television.

The Greatest way to save money is to drastically cut down on the amount of television you watch. There are a lot of financial benefits to this: less exposure to spending-inducing ads, a lower electric bill (and perhaps a lower cable bill if you downgrade your subscription), more time to focus on other things in life, such as a side business and so on.

Want to take things a step further? Consider cutting the cord to cable TV altogether.

2. Enough with the collection and time to sell

Many years ago people thought their collection would bring them riches. Beanie Babies were a big fad at one time, as were Longaberger baskets. Now you can find those items on resale sites like Craigslist and at garage sales for a fraction of their initial cost, leaving many people who sunk thousands of dollars into their “investments” wondering what happened.

To avoid situations like this, never collect items of questionable value. And if you want to recoup some of the money you’ve already spent on collectible items, you can start selling them now and use those funds for any number of worthy financial goals.

3. Sign up for as many free customer rewards program you can

No matter where you live, you’ll find plenty of retailers who are willing to reward you for shopping at their store. Here’s the basic game plan for maximizing these programs: create a Gmail or Yahoo address just for these mailings, collect every card you can, and then check that account for extra coupons whenever you’re ready to shop. You can add to those rewards and discounts by using rewards credit cards to earn points on purchases at a wide range of stores that can be redeemed for cash back or other benefits.

4. Get creative

If you want to save money while also giving generously, creating your own homemade gifts is one way to accomplish both goals. You can make food mixes, candles, fresh-baked bread or cookies, soap, and all kinds of other things at home quite easily and inexpensively.

5. Understand the 30-day rule.

Avoiding instant gratification is one of the most important rules of personal finance, and waiting 30 days to decide on a purchase is an excellent way to implement that rule.

6. Prepare a list before going out for shopping and please stick to it

One of the easiest ways to save money is to only shop when you have all what you are buying written down. Because when you’re without one, you typically end up buying things you didn’t plan for or budget for and this will cost a lot. Creating a list before you go to the grocery store is very important and not only does it help you buy items that fit with your meal plan, but it can also help you avoid buying food you might waste. Always create a list and, more importantly “STICK TO IT”.

7. Call friends over instead of going out

Going out to eat has a way of completely destroying both your food budget and your entertainment budget in one fell swoop. And no matter what, it is always cheaper to stay in with friends and come up with your own entertainment.

8. Spend less entertaining your children

Most children, especially young ones, can be entertained very cheaply. Play ball in the backyard; teach them to ride a bike without training wheels once and for all.

9. Negotiate rates with your credit card company or complete a balance transfer.

Now if you’re paying a lot of interest on your credit cards, it’s important to know that you do have some power as long as you’ve been making your payments. Not only do you have the right to negotiate your current interest rate with your credit card issuer, but you have the right to transfer your balance to an entirely different card as well. Start by calling your card issuer at the number on the back of your card and explaining your request. If you don’t make any progress with them, check out these balance transfer credit cards to find one with an introductory 0% APR that could help you save hundreds of dollars in interest over time.

10. Clean out those closets.

Go through your closets and find anything and everything you no longer use. Then, don’t just get rid of it, use it to your benefit.

11. Drink more water.

Now not only does drinking plenty of water have great health benefits, it also have financial benefits, too. Drink a big glass of water before each meal in order to stay fuller longer and ultimately eat less. Not only will you save on the food bill, but you’ll also feel better after you become properly hydrated.

Remember; tap water is not only just as clean as bottled water, it’s also free.

12. Avoid going to Fast food/ Restaurants

Now instead of eating fast food or just nuking some prepackaged dinner when you get home, try making some simple and healthy replacements that you can take with you. An hour’s worth of preparation one weekend can leave you with a ton of cheap and easy dinner and snack options for the following week.

13. Quit Smoking

As a smoker, you will know by now that your habit is not only expensive, but potentially deadly as well. If you want to add years to your life and save a boatload of money, the easiest thing to do is to stop smoking altogether.

14. Turn off the lights and save your electricity bill.

Keeping the lights on in your home may not be expensive on a per-watt basis, but it sure does cost money over time. To save as much as you can, turn off lights any time you leave your house – or even when you leave the room. Turning off lights when you have plenty of natural sunlight can also help keep your electric bill down over time. The bottom line: If you aren’t using a light, turn it off.

15. Increase your yard sales

Yard sales are a great place to score awesome deals on items you need anyway – think house wares, shoes, clothing, or even sports equipment. The key is, you have to be careful not to use the low prices found at sales as an excuse to buy things you don’t need. Advice; at your next garage sale, limit yourself to items that were already on your list of things to buy.

16. Purchase quality appliances that will last.

It’s worth the time to do a bit of research when you buy a new appliance. A reliable, energy-efficient washer and dryer might cost you quite a bit now, but if it continually saves you energy and lasts for 15 years instead of five, you’ll save significant money in the long run.

17. Compare price list of groceries and find the cheaper one

Most of us get in a routine of shopping at the same grocery store, and we may not even realize that we’re not getting the best deal. Fortunately, there’s a simple way to find the cheapest store around. Just keep track of the 20 or so things you buy most often, then shop for these items at a variety of stores. Eventually, one store will come out on top for your purchases – just make that one your regular shopping destination and you’ll automatically save money.

18. Share your dreams with those you love and also those that love you.

I know this is an odd way to save money, but think about it. If you spend time with the people you love the most and come to some consensus about your dreams, it becomes easy for you all to plan for it. Set a big, audacious goal together and encourage each other to be financially fit – soon, you’ll find you’re doing it naturally and your dreams are coming closer than ever.

19. Get to know how to fix things yourself

Many years ago, it was far more difficult to find ways to fix everyday items we have in our homes. But today, it should be a piece of cake. You can find online tutorials and videos that show you how to fix almost anything, and all for free. No matter what you’re trying to fix, it’s always worth a shot. Learning a new skill never hurts either. You can always go to places like http://www.youtube.com and get some tutorial videos.

20. Never look down on yourself after making a mistake

Even if you make 10 good choices in your life, it’s easy to beat yourself up and feel like a failure over one bad choice. If you make a big mistake and realize it, think about why you realized it now instead of then, and try to apply that later on. The memory of that mistake can end up being very valuable, indeed.

21. Never look back – Always look further

Don’t let the mistakes of your past drag you down into more mistakes. Instead, look ahead to the future. Learn to see past mistakes for what they are. Sometimes the best life lessons are learned through life experience, good or bad, so embrace your past and don’t run from it. Promising to do better and setting goals can help keep mistakes where they belong which is in the past.

22. Don’t ever give up

Whenever the struggle against debt feels like it’s too much, go read a personal finance blog or get a finance tips book and remember that there are a lot of people out there fighting the same fight.

You Can Spend Your Way Out of Debt

This headline has got to be a typo. How can you spend your way out of a money problem? Am I in charge of a federal government program?

When you find yourself in a hole, the first step to get out of the hole is to stop digging. So how can you spend your way out of debt? I will explain how.

Google “how do I get out of debt” and scroll down past the paid ads. Just about every result from your search will give you some iteration of the following advice items:

  • Get your bills organized so you can see what you are working with
  • Create a spreadsheet of your income and expenses (either on paper or using a computer program/app)
  • Add up your expenses and add up your income. Do you have more expenses than income?
  • Get another job.
  • Eliminate every expense that you can. You can keep electricity, housing and food but not much more.
  • Live this lifestyle until every debt is paid off.

Alright I am getting a little facetious here. But I do not believe that I am exaggerating much. The idea touted is to live as spartan a lifestyle as possible and maximize the amount of money that you pay towards your debts.

The common theme here is that to get out of debt, you must eliminate everything from your lifestyle and use that money to pay towards your debts.

How long do you think you can live like this? Two weeks? One month?

If you are single then this lifestyle may last longer because you have no one else to worry about. But when there is a spouse, the two of you must live like this. The plan just got much more complicated.

Add children to the scenario and the complication just increased exponentially. A five year old does not understand debt. All he knows is the cable TV is no longer there.

My suggestion is to build in some spending on some “unnecessary” expenses. Allow yourself to do something more than work, work and come home. This will be different for everyone. In my case, we went out to dinner once a week. A nice restaurant, not a fast food joint. It was something to look forward to each week.

We also maintained our Dish TV. No movie channels. This made staying at home instead of going out to restaurants and movies easier to do. We came out money ahead.

We began our plan in 2010. Our 25th wedding anniversary was in 2012 and we had talked about taking a cruise for years. So we also budgeted for this and saved a little every month.

In theory this “frivolous” spending makes the debt pay off slower. But if this tiny bit of fun keeps you on your payoff plan, then you will reach your goal. Living spartan for a month and then giving up does not get you to your goal!

Think of it like trying to lose weight. If your plan is to eliminate everything except kale and celery, you will probably lose a bunch of weight at first but give up in a week or two. The thought of a slice of pizza will become so overwhelming that you’ll go overboard and eat an entire pizza, then feel guilty and quit the plan. But if you eat in moderation through portion control and watching your calories, you will allow yourself to eat a little bit of pizza and still lose weight. It will be a slower weight loss but you will stick with your weight loss plan because you are not completely depriving yourself of “forbidden” foods.

Naturally your likes and budget will determine what you can do with your spending. Maybe you can only afford to go out for a meal once or twice a month. Will this “reward” keep you on your plan to get out of debt? It did for me!

Should you get out of debt? Absolutely! But in order to achieve success, I believe you must build some fun spending into your budget. This may postpone your end date on paper, but your chance of success will be infinitely better than living on dog food and reading by candles!

Tips For Smooth And Cheap Online Money Transfers

Online money transfers offer convenience because they connect people whose geographical locations would have otherwise made it impossible for them to exchange money. It is a process that also offers time convenience, because depending on the platform you select for the transfer, you can have the money with you in a few minutes. Deposits, money sending and withdrawals of the same have been made pretty smooth by the online transfers. When you choose the right money transfer platform, you will not only enjoy the convenience, but you will also have confidence with the transfer process, but there are things you should do to make the process more pleasant.

Tip 1 – Take time to find the best exchange rates. Banks are not always the best when it comes to offering good exchange rates and you therefore want to do your homework before you go ahead with the transfer. By taking time to make comparisons between the different foreign exchange providers, you will be able to settle for the best rates that will give you maximum gains especially on currency conversions.

Tip 2 – Always do an online search on the country you are sending the money to see if it is an international transfer you wish to make. Such a search will fetch you promotions and special deals from the relevant money transfer companies. You might be very lucky to find a company with an offer of zero fees on transfers for a given period of time.

Tip 3 – Prioritize security and safety before making any transfer. The only way you will manage to enjoy a pleasant, safe money transfer experience online is when you work with a company whose services are regulated. Always settle for a company that is licensed and insured for foreign exchanges so that you do not end up worrying about anything going wrong during the transactions. Do a research, especially on newer service providers before using them for your transfers and check what security and safety measures they have in place for users.

Tip 4 – Consider the transaction processing time and costs. When you decide to send money online, you want to choose a transfer platform that takes a very short time to process the transfer and whose costs are reasonable. Today there are online money transfer services that take a few seconds to process the transactions and this eliminates the chance for errors with the transaction and offers peace of mind. The recipients should also receive instant notifications, once the money has been received.

Tip 5 – Remember that exchange rates do fluctuate. The foreign exchange market stays awake and the rates can soar or plummet in a matter of seconds. Find out what your online money transfer service provider uses and keep an eye on the trends so you can choose the most ideal time to send the money. Not very many people pay attention to the fluctuating rates, because the sanding could be a matter of urgency, but if you have time, pay attention to the fluctuation so you can select the best sending time.

Easy Ways To Regain Control Over Your Finances

Money and the absence of it is one of the most common sources of fear in the world. If you learn how to eliminate the anxiety that finances cause, you can start acquiring more of this all-important resources. It is far better to gain control over your finances than it is to let your finances control your life.

Start by creating a budget and diligently adhering to it. Although most people are well aware of the benefits of budgeting, few people actually take the time to write one. Knowledge is what you know, but wisdom is how you use what you know to benefit and improve your life. Put this knowledge into action and start budgeting today.

Stop spending money on things that you really don’t need with the intention of rewarding yourself. This is especially true of big ticket items that won’t provide the same lasting satisfaction and peace of mind that savings will. Write a reasonable sum into your budget for treating yourself on a regular basis and stock all your overages away. Savings are infinitely more valuable than tangible assets when financial problems arise.

Consider your risk tolerance and remain cognizant of this in everything you do. Your risk tolerance basically defines the amount of risk that you are capable of handling at any one time. If you take on too much financial risk, you will be more prone to irrational and hasty decision-making.

There are lots of ways that you can take on too much risk. For instance, if you choose to finance a home or purchase a car before you’re actually ready for these purchase, this will create an excess amount of risk. The end result will be anxiety and stress and a tendency to make choices that aren’t in line with your financial well-being or your financial goals.

Establish a mindset of gratitude, no matter where your life might currently be. If you make a point of being happy with what you already have, you won’t be as likely to overspend on new things that you really don’t want or need. More importantly, you also be more predisposed to taking good care of the resources your currently own. This will extend the lifetime of these assets and help you get more value from them.

Start making a proactive plan to take care of your existing debt. Reach out to your creditors and attempt to establish reasonable payment plans that you can actually adhere to. If this doesn’t work, think about getting a debt strengthening loan in order to centralize your payments and make everything easier to manage.

If you’re being pursued by a debt collection service, make a point to connect with the company to discuss your accounts. Find out how much you owe altogether and determine whether or not your can feasibly repay your debts. If you have acquired more delinquent accounts that you can reasonably manage, it may even be a good idea to consult with a bankruptcy attorney. Efforts like these are a proactive way to start bringing your finances into a more manageable and profitable state.

Steps to Open a Savings Account

Anyone with financial goals also needs methods for achieving them. A savings account can be one way to build a nest egg for the future. When you wish to begin this type of relationship with a bank, you will need to follow prescribed guidelines for becoming a customer.

Research Options

Different financial institutions have specific policies and guidelines for their services. Before opening a savings account with any one bank, gather information from several to enable you to compare. Optimally, the facility you select will have a convenient location, possibly with more than one branch. Also, look for a lender with hours that match your schedule, an extensive ATM network, and attractive features such as online banking. Find out about minimum balances and fees to help you choose the institution that offers the best package to fit your needs.

Gathering Materials

After choosing the bank you want to use, gather the documents you will need to open the savings account. Most financial institutions require at least one form of identification (possibly two) and proof of address. Acceptable forms of identification include a driver’s license, passport, school identification card, voter ID card, or government-issued photo identity card. Acceptable types of proof of address include a bill from a utility service, a registration letter for the connection of a utility service, or a rental lease. You will also need to know your Social Security number, so bring your card if you have not memorized this number. Minors will need a parent or responsible adult to accompany them to the bank to open a joint account in both the minor’s name and the adult’s name. Bring the cash along that you wish to deposit, also.

The Process

You will meet with a representative to open the savings account. The representative will present the options you have for different terms and packages, and you will need to choose the one you wish to use. Ask specific questions about fees, service charges, interest, minimum balances, and statements at this time. Take notes, if necessary. If online banking is available, arrange this service at this time. You will likely need to choose a username and password to access the bank’s online portal. Review terms of online services, also. Request an ATM card to be connected to the account, if desired. Review all terms to ensure you understand them. Sign the contracts to indicate your understanding and agreement. Give the representative the cash to be deposited. You will receive a receipt to show this transaction. You will also receive a book that displays deposits, withdrawals, and balances.

To maintain the account effectively, stay up-to-date on your balance. Add all deposits and subtract all withdrawals to ensure you know the balance. When the bank adds interest or subtracts fees, add or subtract these amounts to or from the balance to get an updated balance.

4 Immutable Laws of Money Control

A wild goat was blind in one eye because of an accident sustained as a kid. Since he was vulnerable if a predator approached on his blind side, he made a habit of grazing on a high cliff facing the sea. He kept his good eye in the direction of the land watching out for enemies and his blind eye towards the ocean.

One day, a boat filled with sailors rowed past the cliff. A sailor spotted the goat, grabbed a bow and shot at him. As the goat lay dying he gasped “I thought my enemies would come by land. I never thought to look out to the sea”

Wealth is only guaranteed when your personal money making machine is made up of effective money generation and money retention system. A defect in either of these systems makes you vulnerable to poverty and financial failure. Unfortunately most people intending to make money often concentrate all their efforts on generating money with little or no attention on controlling money. This is like trying to save the life of an automobile accident victim by doing everything to get him to the hospital without stopping blood flow from his body. The truth is: he is likely going to die faster due to loss of blood than due to the injury sustained. You will remain poor more as a result of lack of money control skills than due to lack of money generation skills. This is true for individuals as well as for organizations.

Think about it this way, every time you save $100, you are automatically $100 richer. But every time you need to make $100 you will need to spend some money in other to make it, sometimes as much as $ 80. Therefore preventing yourself from losing $100 might be equivalent to making $500 or more. The first and most important skill of enduring prosperity therefore is money retention skills.

6 Key Symptoms of Chronic Lack of Money Control

If you ask most people if they are good at controlling money, their answers will be a resounding yes. But this approach will give the kind of result you will get if you ask children if taking ice-cream is good for their health. The best way to know if you have money control problem is to answer the five questions below as sincerely as you can with a yes or a no. No one else needs to know what your answers are, but being sincere with yourself will put you on the path of enduring prosperity.

  1. Do you regularly find yourself in short-term and long-term non-business debt? E.g. You always have to borrow money or apply for IOU before the end of the month
  2. Do you find yourself borrowing money from people who earn less income than yourself? E.g. Sub-ordinates or non-working parents
  3. Do you find yourself usually involved in regret expenses? These are expenses you incurred and wished you had delayed for more important expenses
  4. Do you find yourself usually involved in emotional purchases or expenses? Buying things or spending money not because you need to but because of what people will say
  5. Do you find yourself regularly unable to meet expected and predictable bulk expenses such as: Children school fees, Maternity bills, House rents, Major car repairs
  6. Do you find yourself regularly dreaming of jackpot or sudden financial breakthrough and therefore frequently participating in different types of lottery or lucky dips

If your answer to only 2 of the questions above is yes, you have money control problems. If your answer to 3 or more is yes, your money control problem needs urgent and immediate attention. But don’t panic. You only have to be aware of some money control laws and begin to obey them.

Laws of Money Control

Law #1 – Law of Financial Entropy

Your money and financial life will continue to be in a state of disorder unless you apply conscious force or influence to put it in a state of order and sustain it there.

That means, money cannot just accumulate in your bank account without you applying the discipline of savings. It also means that you will never suddenly discover that you have any money left in your hands at the end of the month unless you make conscious effort to keep some, irrespective of how much you earn. You see, the force that tries to take money away from your hands has to be stopped by the force of your will and desire to be prosperous. Financial prosperity or poverty is like a physical building, when completed it looks big and intimidating; but it usually starts with invisible foundations, sand, concretes, blocks, and cements. Just like a building will never be complete by accident, your financial success will not happen by accidents. It will only be established and sustained by the awareness and application relevant financial laws, actions and habits.

Law #2 – Law of Financial Goals

You cannot achieve and sustain a money goal you never set for yourself.

You cannot arrive at a financial bus station you never intended or decided to go to. Nobody wakes up in the morning; take a public transport, and instructs the driver to take him to a popular bus station called “No Where”. But that is what people try to do when they wish to have money without having specific and definite money goal. If you aim at nothing, you will surely and certainly hit nothing. If you do not have a clearly defined and well documented money goal for given period of time, you should be happy not to have any money, because that is what you wanted.

Research results in Achievement Psychology reveals that less than 3% of average population of people have clearly written down goals and 100% of successful leaders anywhere in the world have clearly written down goals that are often carried around with them on a regular basis. Ask yourself these questions: Exactly how much do you want to earn in 2 years, 5 years, and 10 years time? What kinds of information, skills, expertise, experience, do I need to have in order to earn this kind of money? Who are the people currently earning this kind of money legally, and how can I have access to the information, skills, expertise, experience, and strategies they have? Providing written, detailed, and sincere answers to these questions will produce effective money goals and clear road map to your financial destiny.

Law #3 – Law of Potential

The financial value of a habitual expense is not as important as its potential financial consequence.

You can also state this law like this: “the size of a car in not as important as the speed at which it is moving”. Many people habitually spend their money on seemingly small and inconsequential expenses and take for granted that the amount of money involved in such expenses can’t negatively impact their financial prosperity. Well, when you focus on the impact of just one transaction that may be true, but when you factor in the frequency of such expense and the exponential effect of its addictive influence on your long-term financial goals, you may discover it is enormous. Try out this experiment on your expenses and see the kind of impact we are talking about. Take a sheet of paper and list out how much you spend on weekly basis on things like: non-alcoholic drinks, beer, pepper soup, fast foods, entertainment CDs/VCDs, and none business telephone calls etc. Total the amount in Naira and multiply by 52 (weeks in a year) and see how much you have.

For a person who spends as little as $20 on non-business calls, $ 40 on fast food, and $20 on non-alcoholic or alcoholic drinks daily for 5 days a week and 52 weeks of the year the cumulative expense comes to about $20, 880.00. But that is not even the real consequence we are talking about. Imagine that instead of spending that money, you consistently set it aside every year and put that $ 20, 800.00 into a business or investment that yields 15% per annum. In 10 years the money would have become $423,941.65 and in 20 years it would have grown to become $ 1,797,288.74. Talk about potential!. Again, the moral lesson here is not to completely avoid these expenses, but to become aware of careless indulgences and the potential we have to put our hard earned money to productive use.

Law #4 – Parkinson’s Law

Expenses expand to meet the money available

The more you earn, the more you want to spend. The higher your income, the higher the living standard you want to adjust yourself to. Have you ever noticed that when your income increases you often become irritated by the things you used to enjoy? For instance if you used to enjoy viewing you’re your 14″ television screen when your monthly income is just $5000.00. When you take a promotion or new Job that pay $25,000.00 you will suddenly become interested in a flat screen 28″ television, along with high range cable network, and exotic sound accessories. In fact, you will suddenly discover you need to change both the quality of your furniture and the location of your accommodation. You will keep adjusting to your new level of income until you realize that the money is really not enough after all.

The truth is, savings and investment will never happen just because you earn more money. Your financial behavior is determined by your subconscious financial blue print. If the dominant thought pattern in your financial operating system is consumption, all your financial behaviors will be consumption oriented irrespective of how much money you earn. If don’t have savings with an income of $ 1000.00 per month, you will not have savings with an income of $ 50,000.00 per month. Increase in income without a change in financial habits is like trying to have a different picture by enlarging the negative of the same photograph