5 Tips For Startups To Manage Their Budget

5 Tips For Startups To Manage Their Budget

Few jobs are as hard as managing money.

While not having money in the first place presents its potent challenges, holding onto it once you have it is even harder.

It can be easy to let things get out of hand.

It starts with a little splurging here and there to maintain an image, and it ends in a career or company ending a disastrous investor meeting.

In this guide, we will go over what you need to know to make sure that you never end up in that situation, let’s get to it.

Be Honest, Be Responsible

The best companies know how to make the most of them, and if your startup is going to survive, you will need to as well.

Most businesses have an honesty problem. To be fair, honesty is a challenge at any point in life. No situation deserves honesty more than when you are bookkeeping and financial planning.

It’s tempting when receiving investments/working capital to splurge here and there. Don’t do it. It seems like common sense because it is one of the most often stated messages that go ignored.

Be responsible by measuring the importance of any purchasing decision/use of funds against its benefit and impact on your startup’s future.

Startups with little funds can be great, and that’s because they make the most out of their funds in the direction of growth and stabilizing their influx and development of a client base/leads.

Cashflow Is King

No matter what your starting budget is, whether it’s $100 or $1,000,000 it will have to be spent.

What matters in maintaining a business, is cash flow. All decisions made in regards to purchasing should be oriented in either developing the company’s network or fulfilling/accruing orders/followers/leads.

Beyond that, other things such as talent development, day to day costs and such will whittle away at funds due to necessity.

If your business isn’t actively bringing money in, then no matter how much of a nest egg you have, it will go under. Focus on what is actively earning and how you can use what money you have to bring more in.

Review Weekly, But Consider Daily

As your company uses funds, utilizing weekly meetings to examine where those funds have been going can be good for calling attention to problems/weaknesses.

More often than not, startups use these meetings to avoid looking at what’s accrued in the week until that point.

While it can be hard to examine mistakes, being aware of day to day expenditures while they happen can play a large part in handling problems before they become a crisis.

Know When Things Aren’t Working & Your Options

Sometimes no matter how well prepared you are, things go wrong. There are options for business owners of all kinds, and you need to be aware of them.

You can cut or combine positions, increase work hours, and more but when money is low you have a few options.

You can apply for working capital loans which are quick influxes of cash with pretty great terms for repayment.

Paypal, fund box, and more offer comprehensive solutions that work for many startups that have some form of traction/sales.

For other startups, short-term loans from trusted lenders are an option for fulfilling the financial needs relatively quickly as well. Companies like FastCashNearYou can help find solutions for a variety of startup sizes.

Regardless of which avenue you take, take enough to handle what needs to be handled and keep your startup afloat. Don’t overindulge in the opportunity in a way that will make it hard for you to repay later on.

After all, it is just a loan.

Use The Right Software

Put simply, if you do not manage and record your finances well, you will get in trouble eventually. Not today, maybe not tomorrow, but maybe ten years down the line when things are successful.

Tax problems are the most cumbersome to deal with, and you need to make an effort to stay on top of everything. If it seems like a lot, start with the basics of moving beyond excel and getting your hands on a quality bookkeeping or fund tracking software.

To Wrap Things Up

If you keep these five tips in mind going forward, you should avoid any major problems related to managing your budget.

Have you ever had problems with managing your funds?

Have any other comments or questions? Leave them in a comment below.…

Damaged Credit Rating? How to Avoid Further Damage

Damaged Credit Rating? How to Avoid Further Damage

Many people that have damaged credit have come to realize that life can be difficult in terms of finances when your credit is not perfect.

Recently lending conditions and the criteria to receive a loan have been tightened by lenders in light of recent global events.

This has made it particularly difficult for those with bad credit. Many of these people have little choice when it comes to finding affordable financing.

For one reason or another, an increasing number of people have found themselves with bad credit. Over the past year, many different aspects of the cost of living have increased.

This includes higher bills and higher borrowing costs. This is all had an impact on household budgets and now many people are struggling to stay up on their financial obligations.

It is a lot harder to improve your credit than it is to actually damage your credit, unfortunately, but there is hope.

You should ensure that no further damage has been made to your credit than has already been done. This should be your first step.

You will be in more difficult financial trouble in the future the worst your credit becomes.

The way that you pay your bills and other financial obligations are one of the things that can result when your credit is damaged.

Your credit rating will worsen if you make regular late payments or miss payments altogether.

There is a possibility that the delinquencies will be logged on your credit report and you could possibly end up with County Court judgments against you.

This will make the situation worse. Repayments and financial commitments should be paid on time.

Another thing that can damage your credit rating is applying for many different credit cards or financial aid extensions in a short period of time just because you keep getting rejected.

The chance of rejection will be high when you apply for credit if you have bad credit, and after being rejected many people will try to apply again.

This will cause further damage to your credit rating because each rejection is reported to your credit file.

Typically you should wait at least three months after you have been rejected before you apply again for financing.

Make sure that you meet the eligibility criteria of the lender in the first place before applying for finance, this will greatly reduce the chances of being rejected.

If you have bad credit you should apply for credit with lenders that cater specifically to those with damaged credit.

Be sure to also check your credit report on a regular basis and you can see the improvements to your credit and to keep tabs on anything that may come up.…

Five Ways to Destroy Your Credit Score

Five Ways to Destroy Your Credit Score

1. Reckless Spending Habits

During an emergency, credit cards are useful.

However, many people have difficulty identifying an “emergency expense.”

If your car requires an immediate repair, or you need to purchase a last-minute plane ticket, these constitute emergency expenses.

Since credit cards make it possible to obtain our “wants” now, it can be difficult to maintain a measure of self-control and fight the urge to use credit for frivolous purchases.

Buying merchandise you cannot afford is an assured way to destroy your credit score.

Credit ratings can significantly decrease within months – and take years to rebuild.

2. “Keeping up with the Joneses”

Certain people have a bad habit of envying the material possessions that others have.

If their friend or neighbor buys a new vehicle or wide-screen television, they also want the item.

Unfortunately, these persons go to extreme lengths to acquire these things, which usually involve financing the high-ticketed item.

Creating additional debts can strain your finances. If unable to repay the finance or credit card company, you’ll also ruin your good credit rating.

3. Late or Skipped Payments

Some people underrate the importance of making timely payments to creditors.

Each time a credit card or a loan payment is late, or not received, your credit score plummets 10 – 15 points.

Late or skipped payments are the easiest ways to quickly reduce your credit score.

Additionally, creditors charge late fees.

4. Failure to Check Your Credit Report

Paying your bills on time each month and keeping credit card balances low does not guarantee a good credit score.

Credit reporting is not infallible. Therefore, mistakes and errors can occur.

A negative remark on your credit report can decrease your score, and make it difficult for you to obtain a home loan or automobile loan.

The best way to protect yourself from mistakes is to review your report annually.

Highlight and report any mistakes to the three credit bureaus.

5. Failure to Protect Your Identity

Don’t assume that identity theft can never happen to you.

Instead, take the necessary steps to ensure that you never become a victim. In addition to checking your credit report every 6 – 12 months.

Take extra steps to carefully discard financial documents (credit card statements, bank statements, and credit offers.) Use a shredder and mark-out account numbers with a black highlighter.

Since many thieves steal mail from mailboxes, stay on the lookout for monthly financial statements.

If a credit card or bank statement is not received, contact the creditor immediately.…

5 Frugal Living Tips for Young Family

5 Frugal Living Tips for Young Family

Saving cash is always good – especially for a couple just starting a family with small children.

Here are five tips that I have used in my own life that have kept the spending down.

1) Cook from scratch.

Not only is it much healthier to cook from scratch, but it’s also way cheaper to cook your own food.

For example, instead of buying a jar of prepared pasta sauce, I buy a few cans of tomato paste and crushed tomatoes (I have also crushed fresh tomatoes myself, but not usually) and make my own pasta sauce and have the equivalent of 3 or 4 jars of prepared sauce, for the same price.

Also, cheaper is baking your own bread, growing your own herbs on your windowsill, and making your own salad dressings.

The list can go on and on! Get to know your kitchen!

2) Plan your meals.

Planning your meals will save you not only money but time as well.

Ever walk into the supermarket hungry, and walk out with way more than you intended to?

Having spent much more than you intended to? It’s really easy to do.

If you walk in there with a list, once a week – or better even less often – your budget will thank you.

3) Cloth, cloth, cloth.

The cloth diapers of today are certainly not what your great-grandmother used. They are stylish and cute, and really easy to use.

My favorite is pocket diapers, but there is a vast array to choose from. Kelly’s Closet is a really great place to get some diapers, but there are loads of options these days.

Pocket diapers close with snaps or Velcro and have a pocket in the back where you put the insert in to soak up the goodies.

I can’t even imagine having to buy paper diapers all the time!

The diapers that I have gone through both of my boys, and will hopefully go on my future children.

We also don’t use paper napkins, but cloth towels. And for my cycles, I also don’t use paper.

Why would I want all of those chemicals on me all the time? Gladrags and the Divacup are what I use.

They’re sanitary, don’t pollute the environment, and best of all – save me money because I don’t have to buy disposables.

4) Breastfeed!

What could be cheaper than free?

5) Get rid of your air conditioner.

Ok, maybe I’ll get flack for this one, but I live in the Middle East, and I don’t have one.

So, I don’t care where you are, you can go without it, too! Meanwhile, my fans are blowing.

I had to learn to dress for the weather. It wasn’t easy – I wasn’t born here, after all, but if I can do it, anyone can do it!

I really hope these little tips will help you in your life and in your budget. And I hope you enjoy your little one!…

4 Frugal Party Etiquette Tips

4 Frugal Party Etiquette Tips

Hosting a party can be fun, but it can also be quite expensive for hosts as well as guests if you are not careful, as expenses can quickly add up.

What are some frugal, but fun, party etiquette tips that can help trim costs all round?

Trimming the Guest List

Not everyone can afford to feed their friends, as well as their friends’ children, partners, in-laws, and second cousins.

If you want to trim the guest list, it is perfectly acceptable to include “no dates please” or similar wording to that effect so that your guests do not end up bringing half their family with them.

Are Potlucks Acceptable?

Asking your guests to bring along their own meal can be awkward in some families and regions of the country where the hosts are expected to shoulder the responsibility of feeding and entertaining their guests, but in others, it is acceptable and even standard practice to ask guests to contribute to a potluck without coming across as rude or cheap.

Just be sure to provide your own contribution to the potluck, such as roast beef or a selection of desserts.

Frugal Menus

Dinner menus tend to be more substantial, so if you are planning a dinner menu, offer a selection of buffet-style meal options from a variety of stations that guests can graze from.

A big no-no would be to run out of food during the party, so always make sure you have plenty of food if you are planning a dinner party.

If you are not able to provide enough food for a dinner party, plan your party at lunchtime. Lunch menus are lighter and can help you trim costs.

No Gifts!

Some guests cannot imagine turning up to a party empty-handed.

However, if you have included the stipulation not to provide a gift in the invitation, this will take the pressure off from guests who are strapped for cash and would otherwise have turned down the invitation.

Even though you may still receive the odd bottle of wine or a bunch of flowers from a few guests who have ignored the no gift-giving rule, making it clear that gifts are not required will alleviate the pressure from guests who are feeling the pinch.

It is still possible to have fun and host a party if you are working on a frugal budget. Start by trimming the guest list down and making it clear on the invitations that extra guests are not allowed.

Potlucks can also help you to keep your costs low if it is acceptable to host a potluck in your region and with your family.

Frugal menu ideas include hosting lunchtime parties, as guests will not be expecting a substantial meal for lunch.

Finally, let your guests off the hook by letting them know that gifts are not necessary.…