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Is Hiring a Financial Advisor Worth It?

September 20th, 2019 · Credit Repair

In today’s world of personal finance, there’s a lot to navigate, and we have learned to do a lot of that navigating on our own. From debt settlements to bankruptcy, the plethora of information out on the internet about all things financial makes it pretty easy to question why anyone would even consider getting a financial advisor.

The answer, the reason why you should at least think about getting one, lies in the same reason you might think you don’t need one: today’s world. Yes, there is a veritable fountain of information available at your fingertips on the worldwide web about how to manage your money, and yes, since it’s your money, it would logically make more sense to take care of it yourself.

But while you work and earn money, more often than not you don’t have an actual degree in finances. Beyond that, do you really have the energy and time to invest the necessary resources into figuring out how best to invest and spend your money? This is where a financial advisor can be very worth it.

When to Hire a Financial Advisor

The best time to hire a financial advisor is when you realize one of three things:

  1. You don’t know what to do when it comes to planning your financial future.
  2. You like the idea of managing your money but just don’t want to take the time to do it. 
  3. You realize it would benefit your financial plans long-term to have an impartial 3rd party opinion.

If you have a decent-sized emergency fund and believe you can take on the expense of a financial advisor, it’s possibly going to be a good investment for you.

Benefits of a Financial Advisor

Financial advisors usually cost from 0.5 to 1 percent of your portfolio each year. But if you think you could benefit from any of the perks a financial advisor can provide, the money spent could be well worth it. Financial advisors are known for accomplishing the following:

  • Guidance for developing an overall investment strategy
  • Rebalancing portfolio
  • Minimizing taxes
  • Allocating assets
  • Structuring retirement accounts

Doing all of the above can improve your financial future as well as something as basic, yet important, as your credit score. Really, it’s a win-win.

Finding a Good Financial Advisor

Finding a good financial advisor means finding someone who can do all of the things listed above as well as one additional thing: behavioral coaching. Behavioral coaching is remaining calm, cool, and collected in the face of financially-based fears and other emotions.

The market can be unbalanced or uncertain at times, but a good financial advisor is someone who will guide you develop an investment strategy, rebalance your portfolio, minimize your taxes, allocate your assets, structure your retirement account, and provide you with steady, reasonable, and logical reassurance in the face of financial scares. Learn more about how a financial advisor can help you with your unique financial situation.

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How to improve cash flow for a struggling business

September 19th, 2019 · Credit Repair

If you ask any successful businessman about the one main thing that can make or break an organization, the answer you will most commonly receive is the finance or cash flow. Many businesses have gone to the ground because of their inability to ensure constant cash flow. Conversely, an organization that has been able to keep a constant flow of finances have flourished. This is a testimony of the fact that cash flow is one of the most important entities for a business to thrive. It becomes all the more applicable for a business that has not been doing too well recently. Here is a complete discussion of the logistics of cash flow so that you can implement it in your business.

How do you define cash flow?

In simple terms, cash flow includes the tracking of all the cash and cash-related entities involved in a business and how it funds the entire process and the use of this cash to make financial settlements to progress and flourish with a business venture. Once this aspect is taken care of, half of your headache is taken care of.

Why is cash flow so important?

As mentioned before, business is heavily reliant on the kind of financing that is present. Even after acquiring the cash, it is essential to use it judiciously, so that you can channel it in the appropriate mediums. If you are not responsible with the cash flow strategies, chances are you will end up with a struggling business soon. This emphasizes the importance of cash flow.

Tips to improve cash flow for a struggling business

Create a forecast

The forecast means predicting when and how much cash will come into your account and how much of it will be used for paying the expenses and how much revenue will a company be left with after all the transactions. Though it may not be accurate to the tooth, it gives you a clear perspective of where you stand financially, so that you can consult and decide how to move forward further. Generally, the profits are imbibed into the business itself to keep it progressing in the right direction.

Working capital management

This is the second most important aspect of cash flow. Now that you have generated revenue and have cash at hand, what are you going to do with it next? You can either use it to pay off your debts, channel it for your expenses or put it back in your business again to build its reputation and size. Sometimes, when the capital is considerably large, it may become difficult for you to manage everything on your own. Hiring a financial manager might be helpful in this scenario. Most big companies have a separate financial department to take care of the proceedings for them. Snap finance reviews can help you in assessing the situation we’ll.

Identification of the relevant cash flow

You might be having some unnecessary expenses and irresponsibly handling cash. This is one of the main reasons why many businesses struggle to establish themselves. It is essential to identify the problem in the bud stage and nip it before it grows on to become something more bothersome. Identification of the irrelevant cash flow and concentrating on the relevant ones is an important technique of regulation.

Restructure your payments

The kind of payment pattern that you have been following for the finances of your business might also be a problem. Either you are not generating the invoice in time, or your customers are not paying you within the deadline, that is contributing to irregularities in the cash flow. It might be a good idea to restructure your complete payment strategy to come out of the rut.

Take advantage of technology

Technology has advanced in leaps and bounds, and it would be foolish to not take advantage of it where it is due. There are a lot of applications these days that can track your expenses and channel them to proper mediums so that your savings might even be utilized to the maximum extent. These can be easily downloaded from appropriate portals, and you should use it for your benefit.

Invoice promptly

One mistake that many people do is not take the invoice seriously and delay generating it to as late as possible. Subsequently, the payment also becomes late. Be very particular about the time of generation of the invoice, so that you can send it to your clients promptly and they can clear your payments. These payments are what will keep you floating in the market.

Collect outstanding debt

However difficult it might be, desperate times need desperate measures. If you feel that your business is struggling and you are in dire need of money, you can always look at all the money that you have landed to others and ask for financial assistance. Collect your outstanding debts to settle the issue.

The bottom line

If you can manage the cash flow well, that is half the battle won. It will help you in coming out of a slumber and help your business achieve the heights that you aspire to.

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How to Get the Best Home Mortgage Rate in 2019

September 10th, 2019 · Credit Repair

There are quite a few important factors that combine to help you get a mortgage rate for a house. The trick is to know what these factors are and how you can manipulate them or work them to your advantage, which in this case would mean getting the best home mortgage rate you can in 2019.

Keep reading to learn more.

Your Credit Score

Your credit score is a combined representation of a prediction of a credit scoring company. If you have a bad credit score, you might not be very consistent at making your outstanding balance payments. Maybe you don’t pay your full bills and opt for the minimum due.

That’s okay. But credit scoring companies are going to see that behavior and predict it won’t change, thereby awarding you with a lower credit score. On the other hand, if you make your payments in full, consistently, and don’t max out your credit cards, you’re going to have a better credit score.

Credit scoring companies are constantly searching for new and better ways to predict the actions of the everyday consumer. The better they can predict how you spend your money, how often, on what, and whether or not you pay your bills will determine, in part, the score they give you.

That score will, in turn, determine the type of home mortgage rate you’ll get in 2019. If you’ve shown yourself to be a responsible credit card owner who has established good and regular habits of paying off debt in the past, you’ll be well on your way to getting a good mortgage rate.

Interest Rates

Home mortgages can have a fixed or variable interest rate or even a combination of the two. A variable interest rate will likely start lower than a fixed, but there’s always the chance it will increase in a rising-rate environment.

Fixed interest rates will cost more right off the bat, but they will remain stable throughout any sort of rate fluctuation that could cause you to pay more on a variable rate.

Your interest rate is something you and your lender will work out together, but it’s still an important component in figuring out the type of home mortgage loans you qualify for.

Where Your Potential Property is Located

Where you’re planning to build your home will make a big difference in the type of loan you get. Expensive areas will impact your loan options differently than inexpensive areas. Rural areas versus urban areas will also change things up.

Do some research on property prices in the area you’re looking to purchase in. This will help you have a good idea of the type of loan you’ll need.

Your Down Payment & Length of Loan

The more equity you invest in your loan, the happier your lenders will be. There’s a fair amount of risk associated with building a home, so the more money you can give upfront, the more likely your interest rate will be lower. In addition, the sooner you can pay your loan off, the better.

If you are willing to pay more on your down payment and choose a shorter period of time to pay off your loan, that will go a long way in convincing lenders that you mean business and deserve a good mortgage rate.

Cost of the Home and Cost of the Mortgage

How much your home is going to cost determines the cost of the mortgage in question. Depending on the area you’re building in and what your house is going to look like, your mortgage could fall into one of three different categories:

  • Conforming: These loans are up to $424,000.
  • Super Conforming: These loans fall between $424,000 and $636,150.
  • Jumbo: Loans in this category max out past the upper level of super conforming loans.

The higher the loan, the higher the interest. Use this understanding to your advantage by following the tips we’ve suggested above: work hard to keep your credit score solid and good, think about which type of interest rate would best suit your needs, do research on where your home is located and the prices of other homes in the area, pay more on your down payment and opt for a shorter loan length.

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