The Challenge of Financial Independence

Everyone wants to be financially independent. At first instance the term means the financial liberty which comes with the self earned income. You can earn this income either by working for someone or by working with someone on a certain project or by venturing with your own business. Every method helps you to earn your own money which you can use the way you like. But every method has its own pros and cons and every form comes with its own set of challenges. 

If you work for someone you don't have to bother about the initial capital that you should have to start the venture. You also don't have to care about the staff and employee management and other types of management responsibilities which come handy. You also don't have to bother about and search ways to increase your profit to keep your business running. 

But you have to work for your employer and you have to follow the rules laid down no matter how rigid or flexible they are. The returns that you earn also depend on the type of job in which you are. If you manage to secure a job with a reputed organization and manage to get a high profile then you might earn a handsome salary but that will be fixed and this will limit your financial independence beyond a certain limit.  Here you depend totally on your skills. And what if the company to cut its costs asks you to leave the organization? 

If you enter into partnership and work on a certain project with someone then it will give you a level of financial independence. Here you don't have to rely totally on your skills. Whenever you enter a partnership you work with other person and share your losses with him. But at the same time you have to share your profits also in proportion according to your partnership contract. What if there is a disagreement over a certain matter related to your work. There are ways to resolve them, no doubt, but here again you have to compromise over certain things, you have to overlook your interest so that you can carry on with the partnership in future. This method of financial independence thus is more challenging than being employed under an employer but at the same time give you more financial independence. 

Venturing your own business

This one is the most challenging job which you can take but this is the form which gives you the financial independence which we all crave for. This is the riskiest job which you can take. But as it goes higher the risk, higher are the returns. You can either take up a manufacturing contract or establish your own franchise or establish a new venture. 

The challenges are many. It might be possible that your business may not give you the returns in initial stages. Moreover own business comes with different management problems. But this is the mode which gives you the real financial independence. 

Debt Collection Process

Before we discuss the debt collection process let's clear our concepts of the debtor, creditor and collector. It is the job of the attorney to collect debts from the debtors; so, he is the collector. Debtors are the individuals who owe a debt to any other person. If I took a personal loan from a bank and I am paying this bank a regular installment then I am a debtor of this bank till I pay off the amount with interest. The creditor is the individual who lends you the money. In this case my creditor is the bank X. Now let's discuss the debt collection process. 

How the debt collection process works? 

It is the job of the attorney to make sure that you or me or any individual owing the amount pay the amount in full. For this he may take the service of the collection agency. But much before this when the situation is not that serious you get the friendly reminders form your creditors which remind you of the amount that you have to deposit. 

The next stage involves somewhat strict remainders which include that if you miss the deadlines you will be charged a certain amount of fine. As this stage pass and your creditor consider you a stubborn debtor, he takes the service of the collectors. The attorney is a designated authority who makes sure that you deposit the amount within a certain time period. 

The collectors will then remind you often about the amount that you owe and the installment that you have to pay to your creditor. The calls become harassing as the deadlines arrive and all this lasts till you either take the agencies offering the debt programs or you reach out to your creditor and pay the amount in full or negotiate with him your interests.  

This is a brief insight of how the debt collection process works. To get a clear idea you should also know your rights as a debtor. 

What are your rights as a debtor? 

The Fair Debt Collection Practices Act says that the debtor should be given a fair treatment. The law further says that 

• The collectors cannot threaten you or use any such method to make you pay your debt. 
  
• They can neither harass you nor can use any violent ways for debt collection. 
  
• They cannot publish your name in public. 
  
• They cannot harass you by phone calls. 
  
• They cannot collect an amount more than the amount which you owe. 
  
• They cannot force you to accept the calls.
  
• They cannot jail you. 
  
• They cannot take away your house or property.

You can use your rights if you receive any threatening calls. You can also ask the collectors to remind you in written and for this you can write an application to the collector requesting him to do so. But make sure that you retain a copy of the letter with you as a proof.

Common Credit Mistakes

Credit mistakes spoil our credit score, a vital three digit number which reflects our credit worthiness and help us to qualify for different types of financial services which the financial companies and banks provide us. 

Financial companies extend to us the credit facilities in the form of loans, overdraft, credit cards and many more. For this they charge us a fee and an amount in the form of interest rates. It is up to us to keep up with the deadlines and pay them the amount on time. We score negative if we fail to do so. We fail because we perform certain mistakes. These are some of the most common mistakes which we generally overlook and never pay attention. 

In order to maintain a good credit score it is important for us to avoid such mistakes and maintain a good reputation with our creditors. 

Here I will discuss the most common credit mistakes so that you can avoid them and prevent your credit score from getting spoilt. 

Let's hold multiple credit cards 

Holding too many credit cards means that you have an access to too much of credit.  This will appear as such on your credit report and this will in turn reduce your credibility with the creditors who will shy away from lending you any more amounts. 

Credit cards increase your purchasing power. More you use them, more amounts you have to pay and in case you are not able to keep the deadline, interest rates build up and you are left with large bills which you have to clear off at the end of the month. Credit cards get you into debt and with too many credit cards in your wallet you have to exercise a lot of patience, willpower and discipline so that you don't end up with piles of debt. 

Let's pay only the minimum dues 

This is the most common mistake which we all make. Paying a minimum amount is only is fruitful if you hold too much of debt and you have plans to pay off the credit card balance with maximum interest rate. But if you are simply not in a habit to pay the amount in full then the effect for you can be devastating. Postponing payments will increase your interest and your debt amount. Moreover this will also earn negative marks for your credit score. Remember that you still have to pay the amount to the company. You cannot shy away. 

No harm in exceeding credit limits 

Once you exceed your credit limit you are liable to pay additional fee and interest for the extended limit. 

Credit report is alright. No need to check it. 

Errors in credit score are not uncommon. Therefore it is wise to cross check your credit report every time you receive it. Your credit report is your responsibility and therefore it is your duty to examine it carefully and get it corrected. 

Methods of Creative Financing

Creative financing is all about using a financial means other than the traditional ones like mortgage loans etc. to own a real estate or any other asset.  Creative financing is the word which is fast catching up. Individuals are using creative financing to acquire different types of assets. 

Any legal method which delivers fast cash comes under creative financing. There are different ways by which you can do this. 

Look around your home. Do you owe any antique or any such thing which are of no use to you? If you have, then sell them. If you owe a used car then you have to which is too old to run on roads then contact the dealer and sell it in parts. You are not required to pay a fee if you register your car with a dealer online. You will be amazed to find the number of individuals who are ready to pay for the parts of your used car. 

If you own an unused land then scan it carefully. Find out if it has any wild growth of bushes or trees. If there are any then get them sawed. Sell the woods to earn the money.  

If you own a car which you seldom use then rent it for commercial purposes. And the money that you earn from your vehicle you can pay your mortgage loan or use it to fuel your business needs. 

If you have applied for a new home which is in good shape then rent it and pay a part of the rent towards the mortgage loan that you applied to own the property. 

If you own a land that is on the outskirts of your town then lend it or lease it to a company which is on a look out for such lands. And you can use the part of the lease to pay back the loan amount that you have to pay. 

Consider eighty to twenty home mortgages. This is a combination of two mortgages one primary and the other secondary. This reduces the liability towards a single lender. With this loan you finance hundred percent of the finance and avoid the monthly installments payment. 

Contact the hard money lender. These are the one who lend money at relatively higher interest. They are the lenders other than the banks and private lending companies which operate in the financial market. 

Reach out to your friends and family for the help. Ask them the money that you fall short of and borrow from them the amount on their conditions of return. 

There are many more ways to arrange for the money other than the conventional ones. You just have to be a little more observant and creative. When it comes to creative financing, every thing holds importance and every penny counts. So, look around and pick out the things which you can use to generate the cash that you need. 

Title Insurance

Title insurance is made up of two words-title and insurance. Let's understand both the terms separately to find out what title insurance is all about.

What is a title?
Title is a legal term which gives you all the legal rights to own, use and sell a piece of land. If you have a title of a land then this means that you own that land and you have the right to use and sell it. If there is a problem with the ownership then the title of the property is questioned.

What is insurance?
Insurance is a contract between an individual and an insurance company. The individual deposits a certain sum of money called as premium with the company and the company in turn agrees to pay a predetermined sum to the individual or his family in conditions of any uncertain event or claim.

Then what is title insurance?
It is the insurance against the problems related to the title. The title insurance thus provides you with the financial cover and protects you against any losses due to lien, defects in the title or lawsuit against your title. This insurance is available in Canada, Mexico, China, Europe, Australia and UK.

Why is title insurance important?
It protects you in case there is any defect with the title of your property. The problem with the title arises when someone in the house or any relative files a lawsuit and questions the ownership of the property. The title insurance gives you the cover for the legal expenses that you have to bear to defend yourself in case there is a claim against the property title.

The title insurance has its existence till you or the successor of the property is interested in the property of the title. But as soon as the property is sold to any other person the title and the ownership rights are transferred to the new person and thus this person has to purchase the title insurance policy.

What is the procedure for title insurance?
You can apply for the owner's title insurance policy. To apply for title insurance policy you have to visit any reputed insurance company dealing with title insurance. As you approach the company and show interest for a plan the company will first inquire about the title for which you wish to take a cover.

The company will first send its officials to find out the risks associated with the title, if any. For this they browse the records and plot the chain of the title and find out the claims for the property title if any. Through this search they endure that all the liabilities associated with the property are paid off. They further try to eliminate risks before they approve your application.

Advantages and Disadvantages of Online Banking Services

One click of mouse opens the world in front of us. Internet in fact is one of the most applied and successful technology of our times. It is the network which links us to others, connects us and lets us to share our ideas. Every type of business no matter how small or large it is relies on internet in some form or other. They may either provide their customers with the additional facility or they may be simply being there on cyberspace without any virtual existence. Same thing holds true for banks as well.

Banks are there in the financial market and they are there for business. They are in financial business providing different financial services to their customers. Online banking is an additional service which the banks provide to their customers.

This is a type of value added service which the banks extend to their clients. It is also known as PC banking, home banking or electronic banking. This value added service enhances the accessibility to account and processing of the transactions.

The benefits which online banking brings for us are many. We can access our account without stepping out from our homes. We can access the account any time and from anywhere. This is in fact a twenty four hours banking which is available to us every time we switch on our computer and visit the site.
Online banking facilitate us to perform any type of transaction, sign e- cheques, pay our clients, make transfers, apply for bank drafts, transfer money from one account to another, check our account balance and lot more. Online banking gives us the flexibility to perform the transactions and access to your account anytime you wish to do so.

What more? We can access different accounts in different banks simultaneously. We don't have to run from one bank to other to find out how much we hold in your account. We also don't have to visit the nearest branch to inquire about the latest account schemes and the loan transaction process.

Banks do provide all the information through their sites. But understanding the method to access these services is what is seen as a drawback of online banking. Individuals unfamiliar with such internet services or using the service for the first time may find it hard to understand as to how to perform different transactions. They often confuse as to press which button to complete the transactions.
Setting of the account and finding the right option may take some time. Sometimes certain options may be embedded deep in some option and digging them out may be a hard job. To overcome this best thing is to first brows the site and familiarize with it.

Trust is also one factor which is seen as a drawback and this is the main reason why most of us are still not using the services.

Foreign Investments in Argentina

Investing in Argentina is now a lucrative option. There are several reasons to support this statement. Argentina was considered an expensive country. That was in the nineties but the things have changed after as the government devalued peso in 2002, after the country faced the worst economic crisis of its times.

Today the foreign companies are treated at par with the local companies operating in Argentina and this is what making Argentina appealing for the investors.

Why you should invest in Argentina?
Argentina has a free market economic system. It is a democratic country and the laws there treat the foreign and local firms equally. Thus the foreign firms don't have to practice and work under a definite set of rules laid down exclusively for them as it happens in many foreign shores. Therefore the foreign firms can enjoy an access to the large population of prospective customers and give a stiff competition to the local firms.

In Argentina foreign firms are encouraged to invest in broadcasting, newspaper, magazines, cables, petroleum, nuclear power generation and nuclear mineral mining. To motivate the firms for investment the procedure of investment is kept simple which does not involve lengthy paper works or approval from the authorities.

The foreign firms are also given unrestricted access to the financial markets and moreover they don't have to take the approval of any government department or the central bank to transfer the profits form Argentina to their nations. The foreign firms like the local firms are eligible to apply for the economic development incentive programs.

The foreign firms are also given tax exemptions but like local firms they have to meet some tax liabilities. The tax liabilities are assessed on the basis of the consumption and export.

The foreigners are treated equally at par with the local citizens and hence have the same civil rights as the citizens of Argentina. The foreign investors can thus open a joint venture, Limited Liability Company, branch office, sole proprietorship or a stock company.

Thus with the reduced paperwork involved for opening a branch and the freedom to relocate their profits to any of their desired location at any time are some of the benefits which make Argentina an appealing destination for investment.

If you wish to open a branch or start your business in Argentina then find out about the documentation and the requirements that you need to fulfill in order to start your business or investment. For this approach the local authorities giving such services. Choose a bilingual staff to start off with the process and avoid any complications due to misunderstanding.

How to Develop a Sound Investment Plan

In this article I will discuss the process which can help you to develop a sound investment plan. The steps are as follows:

Lay down your objective
A sound investment plan starts with a sound objective. Ask yourself why you want to invest? What purpose will the money solve in future? Lay down your financial goals before you start investing. Different individuals have different reasons to invest. But all of them invest for the unforeseen circumstances, for retirement, to support their child education in future.

Calculate your risk taking capacity
Once you have your objective in your mind, find out your risk taking capacity. This is important because different securities available in the financial market carry different amount of risk. Life comes with different types of responsibilities and you can't just risk your hard earned money in some risky securities just to earn few more dollars. So, calculate your risk and invest wisely to build up your money. for this subtract your age from your retirement age. This will give you the amount of risk you can take.

Find out the different types of securities
There are many. You can invest in stocks, bonds, mutual funds, insurance, certificate of deposit, commodities, government bonds, real estate and securities which have inflation protection feature.

Prepare a portfolio
You can call portfolio a small bag which carries different type of securities in a certain proportion. A portfolio helps you to diversify the risk. A combination of different type of high risk and low risk financial instrument help you to reduce the risk and earn a high return. How does this work? The losses from one security are covered up by the gain from another one. This is the concept on which the portfolio works.

Rules for investment

Rule 1
Higher the return, higher is the risk. Therefore evaluate the risk of the security carefully and calculate the long term return that the security will earn for you. Invest wisely. Also make sure that the real returns that you earn from the security are higher than the inflation rates. look at the past trends of the stocks and securities before investing.

Rule 2
Hold at least ten percent of your portfolio in gold. Gold is an excellent inflation hedge. It provides you with liquidity as well as the returns.

Rule 3
Mix different securities in certain proportion so that you hold different types of securities and increase the return over time. Make sure that you evaluate your portfolio in every three or four month and make the changes so that you avoid heavy losses and improve the returns.

Rule 4
Practice some patience. Money does not multiply overnight. It takes some time. It is seen that most of the securities are profitable and earn desirable return in the long run.

Investment helps you to increase your asset, make your money grow and help you to tide away those difficult times. To make your investment successful you have to practice a little patience and give take a systematic well managed approach so that you achieve your financial aim and lead a prosperous life.

Best ways to Ensuring Small Business Finance

It is a well known fact that money is required to be available on a regular basis in order to successfully run a business organization. Finance is a major necessity, both in case one starts up a new business or in case of expansion of an existing one. Small Business loans are required not just to buy new machinery but to meet other requirements which are necessary to be fulfilled in order to achieve success in any business.

Small business loans can be broadly classified under two heads. Secured loans and unsecured loans:

1. Secured loans are those loans which can be availed against some collateral such as home, property or the business itself. Secured loans are usually offered at lower rates of interest, which may depend on the current value of the collateral.
2. In the case of unsecured no collateral is required and are usually offered at a higher rate of interest, due to the risk involved in it.

There are many types of loans which are offered by various banks and other financial institutions, such as SBA loans, which are distributed through private lenders such as banks, credit unions, etc., and are backed by the Small Business Administration. Then we have equipment leasing. This form of loan may not be known to many people. Since a loan need not be given and/or received in terms of currency. An equipment leasing company supplies the equipments to small businesses instead of providing it the funds to purchase equipment. These equipments can be rented out, and profits made out of it.

As we all know that for any kind of loan, credit score of the borrower plays a very important role in securing a loan. A higher credit score will ensure lower rates of interest and a larger loan amount. Now, since loans are usually provided by banks, there are usually strict requirements which are required to be met, and conditions such as excellent credit scores, collateral, and fixed monthly payments are quite common. The purpose of these requirements is to make sure that the borrower repays the loan on a regular basis. Usually a small business entrepreneur with excellent credit scores, good collateral, and a brilliant business plan is able to receive sufficient money.

There are several advantages of opting for a small business loan. The foremost advantage being that in these loans the ownership of the company is retained. Also, the interest rate charged is tax free. Apart from that, small business loans can be used for a number of purposes like buying new equipments, buying new plots to set up factory units and for meeting day to day expenses.

Information on Log Book Loan

A logbook loan happens to be one of the best options, if you require money for urgent or regular expenses and are looking for easy borrowings. Logbook loans are easy loans which are available in a hurdle free manner and are availed at low costs. Not just that, it gives you freedom to utilize the loan for whatever purpose you think best.

Before we discuss logbook loans, it is important to know about logbook. A logbook is a document issued by Driver and Vehicle Licensing Agency (DVLA). Typically a logbook has several entries about the vehicle relating to the current registration mark, VIN number or the chassis number, and details about the registered keeper of the logbook.

In recent times logbook loans have become very popular as it is an easy way to get money by keeping the logbook as security. In case of a logbook loan, the logbook of your car is the Collateral for your loan. Anyone who has logbook loans registered in his name is eligible for logbook loans. A logbook loan depends on the lender and the vehicle.

The following are some of the points which are applicable in a log book loan:

1. Your car or vehicle should be ideally less than 8 years old, for getting a logbook loan approved.
2. Apart from that, it is required that the logbook must be in the name of the borrower.
3. It is also required that the borrower should have a regular income and there must be no financial claims on the vehicle.
4. It is also expected that all the Taxes and insurance due on the vehicle have been paid in full before the vehicle logbook is pledged for logbook loan.
5. Although the car or vehicle may continue to be in possession of borrower, the logbook is kept by the loan providing agency for the period, until which loan is repaid. Also this does not imply that the borrower can save himself from the obligation to maintain the vehicle in good condition.

Since logbook loans are secured on the logbook of the borrower's vehicle therefore logbook loans do not involve credit check. Therefore, whatever may be your credit rating you do not have to worry, about your eligibility for a logbook loan if you are able to meet the criteria of the loan providing agency. Apart from all this what really attracts borrowers is the fact that problem cases such as people who have faced bankruptcy can also apply for this loan.

A logbook loan can solve a lot many of your needs. For example, you can take logbook loan for purchasing assets and consumer durables, for buying a washing machine or renovating your house, tax saving investments, higher education, vacations, as well as emergency medical needs. In other words, you can use it for any declared legal use.

What is the best way to Measure Finance?

Finance is a very important aspect of any business. A business can never survive without proper sources of finance. There are several ways to measure finance. What method is the best for you depends entirely on you.

Financial analysis of a company reveals several aspects, such as to ensure that the business is going right ways and is meeting its financial targets. A financial analysis is conducted in several ways. E.g. yearly basis, half yearly basis, quarterly basis and sometimes, is also measured in a monthly basis. Most of the firms conduct quarterly business review through which the gains and losses of a firm are calculated and with the help of this data, action plans can be designed which will specifically target the weaker aspects of the firm, which significantly affects the financial aspect of the business.

As it is seen in most of the cases, corporate heads, measure their financial status by measuring their company's net worth. This is done basically by way of collection of relevant data which helps them run the business and forecast the performance of the rest of the fiscal year. In this case, the first thing that you need to do is to list all the assets of the company. Now it is important here to state, that the estimation of the assets' worth should be close to real. After this is done, the liquid assets are added to it. These assets include the cash available in bank accounts, no matter whether they are savings or not. Once all these have been added, you arrive at the total assets.

The next step is to calculate the total liabilities. In this, we start with outstanding loans and leases. They may also include mortgages if the company has not fully paid for its buildings and infrastructure. Add to them the direct financial debts of the company if there are any. After this has been done, we arrive at the total liabilities of the company. The liabilities should be subtracted from the assets in order to calculate the net worth of the business. If this is negative, then that means that the company is not in a very good shape.

Also there is another approach for measuring financial growth. This is through the calculation of the investment performance. Now, this can be done in order to manage assets as well as make a financial forecasting, which is based on historical data and financial analysis. Now in this case, the first thing to do here is to set it up on the basis of time. In case of small scale businesses, a monthly financial assessment is done mainly to manage the business better. This is applicable especially to new enterprises.

A company must also keep records of the findings of the assessment. This is mainly because financial analysis is not a very simple thing to do, and therefore it becomes all the more important to keep a record.

Tips To Save Airfare Money

Airfares have always been a matter of concern, and although airfares have actually come down in recent times, yet it still needs to go a long way. Air fares may be a nightmare for those who travel on budget, or those who have to fly frequently.

However, it is important to know that, finding cheap air fares is not actually a very tough task. All you need to do is to take care about the following points, which would help you in getting the cheapest airfares.

A number of airlines nowadays have launched special schemes, according to various needs. Search for the option, which suites your needs the best. Also, there are special schemes for frequent flyers. So if you are a frequent flyer and need to travel on a regular basis, then you have something which can be of extreme importance for you. In fact, it can save you an astounding amount in the long run.

Another way of saving money can be travelling on weekdays instead of weekends. This is because airfares on weekdays are generally lower than that of weekends, owing to a thinner travel list on weekdays than that on weekends, with heavy rush. This would not only help you in securing lower airfare; but also availability of tickets too would not be an issue as well.
The internet can also be an important tool for you in finding airfares at considerably lower rates.

You can use the internet in searching for airfares, which suit you the best. You would also receive enough information about flight timings as well as availability of tickets. You would also find many agents who have contact with the airlines and help flyers get affordable airfares. You can compare the rates on the internet itself.

Time and place play a very important role in airfare rates. You need to avail yourself with information in regard to the destination. It may happen to be a tourist destination. If it is so, then make sure that you are aware of the peak seasons. Avoid travelling in peak seasons to such places. This would help you in securing airfares at considerably low rates.

You can also find out about the time, when airlines revise ticket prices and load new ticket prices. Most often there are some really low fares available, which are of course limited in numbers.

Everybody wants cheap airfares, but few can actually get it, mainly due to lack of information. Therefore the key to success lies in information.