At some point in time you have probably been forced to take out a loan or use a credit card for an unexpected event. Most people have a loan or some form of credit that they have to account for each month, it is important to keep these payments up to date to avoid late charges that may cause you to slip further into debt.
It is wise to look at your finances on a regular basis in order to budget what is coming out and determine if you have sufficient funds to cover these outgoings.
When you organise your finances it is a good idea to create a list of all the outgoings including any loans or credit cards you have that need to be paid on a per month basis. Once you have created your list make a new one but this time prioritise it so that the most important and urgent items are at the top and will be paid first.
Generally most people opt to pay the minimum payment on credit cards which is usually just the interest this means you are unlikely to pay off the actual amount you have borrowed.
If you have any spare money at the end of the month I would recommend you use this to pay off credit cards, remember to factor in the cost of living when working your finances out to avoid having to pay for day to day home running costs on a credit card. .
If you have any form of bonus scheme with your place of employment and receive a cash sum on a regular basis try to avoid blowing it on something you do not need and instead use it to reduce your monthly outgoings, this will in turn leave you with more money left over each month.
Paying off more than the minimum amount when it comes to loans and credit cards will reduce the length of time you have to pay on the loan or credit card it will also help your credit score if the loan is paid off on time and the repayment deadlines are met each month.
Sorting out your finances may seem like a chore and something that you cant face doing, sometimes not knowing exactly how much debt you are in seems like a better idea than facing the truth however ignorance is not always bliss. Knowing exactly what you owe, what out goings you have and how much extra you can afford to pay out could mean that your debt problems can be resolved sooner rather than later.
Not knowing when payments are due and wasting extra money that could have been used to reduce your debt can lead to a downward spiral where you may find yourself in a situation of taking out one loan to pay another.
By: Allen Jesson
Nature Of Work of Finance Professionals
A career in finance involves a whole range of functions, such as determining the impact of decisions that are made in nearly all functional areas on the financial front. This includes administering portfolios and formulating personal financial plans for investors, supervising banking operations, evaluating and suggesting company’s capital budgets and strengthening bank relationships.
Professionals engaged in the finance industry deal with how individuals and institutions handle their financial resources, the methods they use to raise money, its allocation, and how they use it. They also assess the risks these activities involve, and recommend various ways of managing them.
Occupations in Finance
The finance sector has a wide range of occupations to choose from. You can become a portfolio or credit manager, security analyst, opt for the insurance sector, or become a corporate financial officer, financial consultant or lending officer. Below are some of the additional roles that you can pursue:
- Bank Manager
- Financial Analyst
- Accountant And Auditor
- Appraiser and Assessor of Real Estate
- Budget Analyst
- Claim Adjuster
- Examiner
- Investigator
- Cost Estimator
- Tax Examiner
- Revenue Agent
Job Opportunities in Finance
The job opportunities in the financial sector are equally vast and varied, a few of which are given here. All of them offer a highly rewarding and satisfying career.
Commercial Banking – The commercial banking sector employs a greater number of finance professionals than any other area of the financial services industry. Jobs in the banking industry have a direct client interface with people from all sections of the society, which offers opportunities for clientele development. The starting point would be as tellers, after which people shift to other areas of banking services like credit card banking, trade credit, leasing and international finance.
Corporate Finance – This would involve employment in a corporation, generally as a finance officer. The main job responsibilities would entail securing financial resources for developing the business of the company. The money can be utilized to make acquisitions to expand the company and secure its future.
Financial Planning Consultancy – You may set up a financial planning consultancy of your own or seek employment in an existing one. This work involves helping individuals in planning their finances for their children’s education, or their retirement needs. It requires answering questions and educating clients about risk factors, to help them to invest their money wisely. Being employed in a corporate setting is also an option, with a job profile related to future financial planning. It would require a firm understanding of investments, estate and tax planning.
Investment Banking – Investment banking pertains to helping investors in buying, trading and managing financial assets. This field offers opportunities to work in world-renowned investment banks like Salomon Smith Barney, Goldman Sachs and Merrill Lynch.
Insurance – The insurance industry has achieved revenues of over trillion dollars. It is one field that has tremendous scope of absorbing finance professionals. The work is mainly about managing risks and identifying problem areas. According to estimates, it employed nearly two and a half million people in the U.S. in the year 2005. One could work as an underwriter, customer service representative, actuary or an asset manager, in this sector.
A career in finance can be pursued in a wide variety of fields. The financial sector offers opportunities that are intellectually and financially rewarding.
By: Tony Jacowski
As you have seen in in my first blog, I talked about the finance option and what it does for you in your purchase decision. Now I will briefly talk about leasing your new automobile, it’s real simple to get the idea. Let’s see if it’s for you.
Topic #2~Lease~Believe it or not, leasing has been around for many years. Unfortunately, most of us that have once leased, have taken the bitter pill and have written off the idea for a lease for future purchases. Back in the hay day, leases were brutal. When the term was over, we were stuck with having to pay the balloon payment or residual. This was known as the dastardly open ended lease. And aside from all that mess, we might of had to pay for wear and tear on the tires, paint, fabric and so on. It all came out of no where and it made us feel like tackling the bank manager into the grass pit. It’s no wonder, leases have been met with such criticism as of late.
Today, there is no such thing as that open lease, which brought much needed aire to those lease faithfuls. There is no such thing as an interest rate, it’s more or less called a money factor. You would only literally pay for the time that you do own the car. And you would only pay sales tax on the payment, not on the whole amount of the purchase price of the car. Whew…what a relief, right? It makes getting into a newer body style/model that much easier, you wouldn’t need to keep investing the cash to pay for a five year old car or maintain it much less.
What other great stuff should you know. A lease allows you to get a much nicer/expensive car for less payment. Additionally, the lease keeps more of your hard earned money in the bank, less you have to put down when you buy. There is a mileage restriction however, but you can easily get a 20,000 miles a year lease, which is more than suitable for most. Secondly, you can usually lease in terms of 2, 3, 4, 5 years to change the payment. In conclusion, a lease is very much a flexible payment plan, eliminates some of the hassles of negotiating rate and price of the car.
So what’s the negative, well it’s not that bad. At the end of the lease, you have a number of options available to you. Just try not to trade your car in six months after you buy it. You can give the keys back, trade in your car, or simply just sell it. You’re not obligated to any negative equity on a lease when your term is up. Just make sure that the tires in good shape, there’s no dents bigger than a silver dollar, and no crack in the windshield. As you can see, a lease is very easy to jump into without too many pitfalls. And it allows you to get the best new models every couple years.
By: Shaun Patrick Davidson
