Tag Archives: finance

4 Small Things That Could Cost Your Company More Money

professional cleaning service in Salt Lake CityWhen you’re running an SME, you need to make every dollar count towards your brand’s success. Any wasted resource can mean capital that could have been spent towards marketing, hiring another assistant, or even a launch event.

What you may not know is that the most harmless thing could be the reason you seem to be spending too much on overhead expenses. Here’s what some experts say you may be doing that is bad for cutting costs:

1. Failing to maintain your appliances.

When you don’t clean your air-conditioning and heating units, they use more energy. A full refrigerator or a dirty microwave oven at work also consume more electricity. Make sure that you hire the most trustworthy office cleaning company that Salt Lake City has to offer. They should clean your appliances to make them work efficiently and a lot more.

2. Working in a dusty area.

When you have to deal with a huge quantity of inventory, especially paperwork, your office can gather dust. If your employees have allergies, then you’ll find that you lose productivity if they’re always sneezing or feeling awful. If your workers get sick too often, consider cleaning your office to minimize bacteria and dust.

3. Leaving all your equipment plugged in.

Always unplug your computers, fax machines, heating units, copy machines, printers and other equipment when you’re not using them. They still consume electricity and if you add up those little costs every month, you’ll end up with an amount you wish you had at the end of the year.

4. Wasting paper and ink.

Training everyone how to use the printer efficiently and giving your employees a quota of supplies every week can help reduce waste. Replacing your old printer might also be a good idea since many printers today have smart technology that uses cartridges that produce less ink.

Maintaining your office regularly can really help you save money and can make your workers healthier, work more productively and even gain more clients. It’s up to you to make it happen.

3 Strategies to Avoid Inheritance Tax

Inheritance TaxLeaving an inheritance for your children when you die is a smart decision. With the help of a lawyer, you can write a will and testament so you can make sure that your heirs will receive your estate after your death. However, the value of your estate may be reduced to a lower amount due to inheritance taxes. Here are a few ways to avoid estate tax and ensure a stable financial future for your children:

  1. Write a Specific Will

Estate planning attorneys in Utah, for instance, always say that writing a will is the most effective way to make sure the court will distribute your estate according to your wishes. Without the specifics of a will, chances are the court will follow the intestacy rules during the estate distribution. Moreover, your assets will likely be liable for inheritance taxes.

  1. Put Assets into a Trust

One way to protect your assets from the hefty estate tax in the future is to put them in a trust as early as now. You can specify when your children will start benefiting from the trust. Some people, for instance, state that the trust will only be available to beneficiaries if they reach the age of 18 or 21.

  1. Leave a Part of the Estate to Charity

According to several estate planners, an estate’s allotted part for a charity won’t be liable to inheritance tax. They say if your will states that at least 10% of your total assets should go to charity, your remaining assets will only incur a lower tax rate.

By avoiding estate taxes, you can take better care of your children even after your death. But while the information above is helpful, it is still better to ask your estate planning lawyer for a strategy that is ideal for your circumstance.

Your Guide to Not Becoming Poor for the Rest of Your Life

Poor ManThere’s nothing wrong to be poor. But if you intend to pass it to the next generation, that’s where things start becoming unacceptable. Yes, there’s nothing wrong to live in poverty, but it’s definitely bad for you — almost no food on the table, leaking roofs and panhandling. These are the things that you don’t want to happen to yourself.

This article will help you sort out your priorities — to choose to pay your mortgage company over an undue Caribbean vacation, to invest instead of just saving up, and most of all, to change your mindset.

Plan Out Your Investments

The first thing you need to do is to stop saving and start investing. But before you invest, you should know you risk tolerance. Start investing in the things that you know, such as health insurance and mutual funds. Go for bonds if you’re risk-averse. But if you’re a bit aggressive, invest in stocks.

Have Goals

One of the main reasons people don’t get financially stable is that because they don’t write their goals. Do you want to have a house? Plan your investment, so you can buy one in five years. If you need some financial help, determine what type of loan will work for you, says Prmiloans.com. Planning to start a business? Stop complaining about your lack of imagination and start researching. Don’t let your motivation be dampened by the absence of immediate results. Remember, great things take time.

Change Your Mentality

If you want to get rich or financially stable at the very least, you should stop telling yourself that it’s impossible. It all lies in the mentality. Tomorrow will not change if you keep the same thinking. Even if you don’t want to get rich, aim for something that will keep you stable, alive, and happy in the long run.

These are only some of the things you need to keep in mind if you want to be financially stable. If you have stumbled upon a windfall, now is the opportunity to make it grow.

Four Benefits of Refinancing

Refinancing in UtahYou may have heard that refinancing an existing mortgage is a good idea, but the question is if it applies to your situation. You would have to go to a reliable mortgage firm in your area to find that out. However, there are generally four benefits from refinancing.

Lower your monthly payments

Refinance rates in Utah are currently down today. For example, the fixed annual rate for a 15-year mortgage refinance is a 2.67% low. You are definitely paying more than that a year with your old mortgage. When you refinance your mortgage right now, you will pay a lower amount every month. This can make a big difference to your short-term money problems.

Lower overall interest

You may think that ditching your old mortgage for a new one means you have to pay more in interest and other fees than if you had just stuck with the old one. While this may be true in some situations, in most instances, you could reduce what you pay overall. You do need to do the math on this. Add up all the refinancing fees and interest, and compare that to what you will pay for the remainder of your old mortgage. If you save something from refinancing, then you should go for it.

Less time to pay off

The beauty of refinancing is you can control how fast you pay off your mortgage. If you are making more money now, or can otherwise pay more, you can shorten your payment period. Shaving even one or two years from your payment period can mean considerable savings in the end. 

Fewer money problems

When you refinance your mortgage, you also get access to any equity you may have in your home, says an expert from Mortgagepartner.com. You can use this to get a line of credit you can use to pay for your college or any major expense. You will pay the same rate as your refinance mortgage for your line, which is cost-effective.

Mortgage refinancing is currently popular in Utah because the timing is right. Interest rates are low, and the economy is recovering. However, that can change quickly. You need to act fast to get the full benefits of a refinance Orem. Mortgage refinancing is currently popular in Utah because the timing is right. Interest rates are low, and the economy is recovering. However, that can change very quickly. You need to act fast to get the full benefits of a refinance.

Top Investment Options You Should Consider This 2016

InvestmentFrom funds to stocks to real estate properties, 2016 has quite the extensive list of good to great investment assets to choose from. However, like all types of investment ventures, you need to know what and where you should put your money in this year.

To help you get started, here are three of the top investments, as what many financial experts say:

Close-ended funds

You will find several types of closed-end funds (CEFs), mutual funds that you trade on the exchange market much like stocks, which you can get with considerably big discounts. Some of these include corporate bonds with high yields and investment-grade qualities. Many experts favor a mix of both types.

When you choose a CEF, pay attention to return consistency and prioritize this rather than benchmarks or peers. You should also confirm that the management team responsible for the funds’ great performance still manages them. The funds should also have performed great on a consistent basis, and not just on a single event.

Real estate.

The real estate market has seen a considerable rise in the number of people investing in them, particularly when the talk comes to turnkey investment property. Many of those who belong to the Millennials generation, and even some members of Generation X, now turn to real estate companies specializing in turnkey property investments.

According to Americashousingalliance.com, this is probably because of the convenience it brings as well as its dual function: it gives buyers the title of a homeowner while they also get to enjoy an additional source of income.

Energy stocks

For those who want to invest in stocks, go for energy stocks. For almost two years now, oil prices have continued to plummet, resulting in the price of these stocks to follow suit. You should consider their lower price as an attractive characteristic, especially now that prices of the commodity have returned to a somewhat more stable status. The time of overselling has come to pass, making these stocks a great place to put your money in.

Make the right investment venture this year: place your money in these three best-sellers of 2016.

Reverse Mortgages: What They Are and How They Work

Reverse MortgageAs a person approaching retirement, you’re likely in need money to cover your healthcare expenses, pay off an existing mortgage, or even pay for home improvement. At this point, you may be considering getting a reverse mortgage as it allows you to get fixed monthly payments without the need to repay a loan or move.  

Citycreekmortgage.com notes that while this may sound easy and straightforward, it is essential to understand what reverse mortgages are and how they work.

What is a reverse mortgage?

This is a loan that allows you to get cash in exchange for your home equity. This product was invented years ago to help seniors facing hard economic times access equity in their homes. It is estimated that between 1990 and 2010, over 600,000 reverse mortgages were issued.

How do reverse mortgages work? 

In the case where you purchased your home with a forward or regular mortgage, you made monthly payments to the lender and eventually built up equity in your home. In a reverse mortgage, the opposite happens. The lender now pays you on a monthly basis which means that he gradually purchases the equity in your home. The loan is now repaid when you sell the home, pass away, or when your home is not your principal residence.

Advantages of Reverse Mortgage

Reverse mortgages have many benefits.

The chance to decide how you would like the cash to be paid out to you. It can be done in a single lump sum, in a line of credit where you decide how and when your available cash gets paid out or on a regular monthly cash advance.

You also don’t have to repay as long as you live in the home as a principal residence no matter how the cash is paid out.

According to the Federal Trade commission, if you receive payments worth more than your home’s value, you’ll not owe more than the value of your property.

You still remain the owner of the home and cash advances are non-taxable.

So if you’re considering a mortgage, shop around and compare your options. There are different mortgages available in the market and your mortgage planner will be happy to explain what each mortgage requires and the features of each one.

This is How Mortgage Lenders Determine Your Loan Amount

Mortgage Form in St. GeorgeMortgage lenders use a number of ratios for determining the amount you can borrow for your mortgage. It is important to understand these criteria and have a basic idea regarding the maximum amount of loan you can apply for based on your financial capability.

If you’re still at a loss on how this works, many mortgage companies in St. George can give you advice and share information like the following:

The Front-End Ratio

This is your annual gross income’s predetermined monthly percentage dedicated to paying off monthly mortgage payments. Payments essentially are composed of your PITI or principal, interest, taxes, and insurance, and in general must not go above 28% of your gross earnings. There are also mortgage lenders who allow borrowers with PITI of 40% max to get a mortgage.

The Back-End Ratio

This is a percentage of your gross income for paying off outstanding debts, which is also commonly referred to as your debt-to-income or DTI ratio. Debts can include payments on credit card and cars, child support, and other mortgage payments. Lenders suggest that your DTI ratio must not go above 36% of your gross salary.

Your maximum allowable debt each month may be estimated by multiplying your gross salary by 0.36 and then dividing the number by 12. While it is fairly hard for to stay below 36% in locations where prices of real estate are higher, there are lenders who can work with a DTI ratio up to 45%.

The Percentage of Down Payment

Lending institutions may actually allow you to buy a house with a considerably more affordable down payment. Paying off a minimum of 20% of the purchase price, however, can reduce the required insurance. Those who have the budget to afford larger down payments can buy houses with higher purchase prices, and more than 20% may be able to aid borrowers in foregoing insurance. The down payment, as well as front and back-end ratios has a direct impact on your monthly mortgage payments.

Now you have some basic idea on how lenders determine your loan amount. Seek help from a competent and professional mortgage company to know more information on types of loans available to you.

Living Frugally Effectively: Saving Up for When it Counts

saving money

saving moneySaving money is, more often than not, easier said than done. With the cost of living going rising in Australia, individuals and families alike are working on ways to live frugally. But what does it take to cut back on costs — without really sacrificing comfort?

Here are ways on how you can efficiently save your money — and still make ends meet:

Produce Your Own Food

Now this is one frugal tip that’s a favourite! Nothing beats growing your own fruits and vegetables from your garden. It’s a bit tedious though, but just think about the amount of savings you would have afterwards.

Produce bought from the grocery store can be very expensive, so it’s best if you just make your own. It can even serve as your additional source of income eventually—as you can sell some of your harvest if you have more than enough.

Think of Other Ways to Travel

Don’t just settle on buying your own car to answer your travelling needs. Purchasing a vehicle can be very heavy on the pocket as it takes you years to complete your payment. If you insist on getting your own, why not look into used cars for sale? Australian experts think that’s a better option, rather than splurging on something that will eventually have a decreased value.

Apart from having your own car, you can get into carpooling. That can help you cut down your expenses. Still need to be more frugal? Bike to your destination instead. That way, you can get your exercise as well.

Cut the Cable

Cable TV may offer a lot of channels, but are you sure you will be watching them all, at all times? Why would you need cable TV these days when the Internet is more accessible? The World Wide Web has almost anything now, including your favourite shows on reruns. That’s even more convenient, since you can take it wherever you go, unlike cable TV. Just cut your subscription; don’t worry about missing out on episodes of your favourite show.

These ways will help you lessen your expenses, but you have to remember that saving money still depends on how you manage your finances. Overseeing your expenses is a sole responsibility; all it takes is self-control.