Financial Freedom Tips

Archive for April 7th, 2010

Australia has been called the lucky country. Lucky for natural wealth and resources, mythologic climate and an simple going attitude. But what about luck for retirees? Most of us realise that a Government pension won’t give us the lifestyle we want to enjoy through the years when there’s no income coming in the door.

Today, people are living longer and would love to stop working sooner. But the huge question is, how can you afford to do it? The 9% employer contribution from your salary is not going to be enough to cover your weekly expenses and bills in retirement, never mind a holiday overseas or new car. If you don’t do something now about your super, you’ll be looking forward to more baked beans on toast than a roast dinner with all the trimmings!

The good news is, people are making active decisions and putting super contributions into overdrive. Adding extra money into your statement is definitely a smart investment move, especially when there are so many great incentives to encourage you, like salary kill or voluntary contributions.

There again, with choice of fund now well established, you should compare your current fund with the others out there. There are funds that will take people from any line of work like this industry super fund. All profits go back to members and in general, the low fee structure and long term performance are very captivating benefits.

So, even if you think you don’t have any extra money to place into super, read on.

Track down lost super

3 million Australians have unclaimed superannuation. Are you one them?

There are several online sites that can help you find lost super, so you can place your money into one active account.

Roll your super into one fund. Pay less fees.

If you have worked casually or moved around from Say to State, you might have several superannuation accounts with low balances and you’re paying fees for apiece one of them. Fees are taken from any investment returns you have prefabricated which mean less money in your account. The higher your fees are, the harder your fund’s investments need to work to wage sufficient returns.

It makes sense to consolidate all your balances into one account. One fund is easier to manage. Less paperwork to worry about. And of course, you save on paying fees.

One less latte a day can really add up

If you spend $3 a day on your morning coffee, that’s $15 a week. Over a year, you could save over $700 and place it into your super fund.

Take your lunch to work and save a packet

Spending $10 a day on lunch, that’s easily $200 a month. You don’t need to be a genius to see how much that is over a year. . . well over $2,000.

Have a garage sale

Organise a garage understanding with your friends or neighbours. You probably have plenty of items, clothes or furniture to sell. Look around your home and make a list. It’s surprising how many people would like to own what you think about useless. Put your profits into your super.

ebay your way to more super

Sell unwanted items online in your own time. It can be a lucrative way to top up your balance. Each dollar counts when it comes to adding to your super.

After all, there’s only so many baked beans you can actually enjoy eating!

There’s nothing more exciting and nerve wracking than starting your own small business. But like most things, getting started will not be simple. Definitely, money will be a huge factor. If your small business is starting from scratch, meaning, you’re setting up an office or store, buying merchandise, hiring people, advertising, and marketing, then you’re going to need a relatively good sum of money to do it all. Some people turn to small business loans from the bank, others borrow it from friends, while others look for other lending institutions.

A business loan from the bank involves a lot of things. A lot of preparation goes into a small business loan request from the bank, and it often requires a plenty of background checks on your individualized financial history. The bank, like any other lending institution, has to factor-in you’re the risks involved before approving a small business loan. In order for them to determine interest rates and period of payments for your business loan, they will have to take a look at several factors:

(1) How much is your annual income? This is a staple question for business loan requests.

(2) What are your revenue-making strategies for your business? Most banks don’t care what your business is, as long as you give them a clear picture of how you’ll be making profits to pay them back.

(3) How’s your credit history? This is a crucial deal for small business loan, or any type of loan. Your credit history your track record of how you’ve repaid loans, credit card bills, and other debts in the past, will be used as a guide for giving you that business loan. If you have a bad history with credit card services, then the chances of getting approved will be bleak.

If you think the answers to these questions look bad for your, then maybe a small business loan from a bank is not for you. Maybe the substitute would suit you better.

Cash Advance- money lent: a loan given in cash, especially by an employer or credit card company, in anticipation of the borrower’s being healthy to repay it.

A business cash advance is a easier way to get a small business loan. The premise behind this loan is similar to that of an open-end credit loan. Open-end credit loans are loans for variable amounts of money up to a set limit. Unlike closed-end loans, open-end credit does not require a borrower to specify the purpose of the loan and the lender can't foreclose on the loan. So if you’re business makes use of credit card services, then you’ll be very much qualified. A business loan through cash advance doesn’t require collateral but have fixed interest rates and will charge fees and penalties for certain situations like late payment or if you don’t manage to pay in full (if concurred upon).

The minimum amount for most lenders is ,500. The maximum can go as high as you can negotiate it to be. In order to get this substitute business loan, you have to have been employed or in business for at least a year; you are of legal age; and you or your business makes use of credit card services. This special business loan is acquirable online, and transactions can be done online as well. The inactivity period for a business cash advance can take from 24 to 72 hours. The money will automatically be transferred to your statement upon approval of the cash advance.

Having bad credit history or financial track record shouldn’t keep you from that small business loan. All you have to do is look at the alternative.