Tag Archives | finance

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There are a lot of factors affecting the financial status of young adults. Those who are disciplined and are able to use money wisely end up saving more. They also prepare better for their future. On the other hand, those who have not really thought about how to properly spend their money end up being broke. They also don’t have a stable job.

To begin, it is important to decide which state you should work in, and what kind of job to run after. Regardless of the amount that you are earning, you have to see to it that you are using it for the right purpose. You should also be careful not to spend whatever you earn for things you don’t necessarily need.

After graduating from college, your priority must be to pay off your student loans. It is important that you focus on this debt since it could be a burden for the rest of your life. You must also learn to determine what your priorities are. Never start a family unless you already have a stable job and you feel like you are finally ready to settle down.

Being a young professional isn’t easy, for several reasons. This is why you need to be extra careful with how you make use of your income and ensure you’re not wasting it. For more information on how to save money in the future, check the infographic below. Don’t let days go by without saving enough money for a brighter future.

12 Financial Tips For Independent Young Adults

This article was contributed by guest author Marina Robertson.

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The basic tenet of any successful business is to sell products and services for profit. However, in order to scale up a small business, one must possess a greater financial acumen which can help the individuals find additional ways of making money. Becoming a financial manager will expand your awareness level and increase your odds of being successful.

The importance of finance in successful businesses

Growing a business requires access to new financial resources. Expanding a business, launching a new product or performing mergers and acquisitions, all require core finance knowledge. Clients will trust your business and you with their money only if they have the confidence that your heart is in it.

Then again, if you think that you can go about nodding your head to whatever the accountant explains to you, you are doing yourself and your business a disservice. For concepts like profit margins, debt burdens, and asset management, your financial knowledge should be impeccable.

So what do you need to actually become a successful financial manager?

Become qualified

Becoming a financial manager is not an easy choice to make. The highly specialized nature of this field makes it imperative for serious aspirants to gain credibility and build a reputation, and until you gain some respect, money won’t come easily. Thus the first thing to do is earn a bachelor’s degree in accounting, business administration, economics or finance. These academic programs will acquaint you with financial analysis methods and technology, and help you develop the analytical skills required for career success. Soft skills are also taught as a part of the program as peer to peer communication is an important part of the job of financial manager.

Gain experience

Obtaining an entry level finance job isn’t the easiest thing in this world. Competition is tough, especially in fields like investment management. To make sure you do not waste your time looking for the perfect job, experienced professionals advise that you should accept any relevant opportunity that comes your way. This will help you gain a foothold in the industry, make new contacts and develop the relationships required to advance your career.

Get certified

Globally recognized certifications like Chartered Financial Analyst (CFA) and Chartered Financial Planner (CFP) make you a good candidate for promotion or a salary hike at your workplace. These certifications have the best ROI and are therefore the most sought after. Employers also prefer candidates who have at least one professional certification highlighted in their resume. Needless to say, such professionals are paid exponentially higher than their counterparts who do not pursue these certifications.

Qualities of a good financial manager

Now, your decision to become a financial manager should actually be motivated by self-introspection of your qualities and traits. Performing well in a job is one thing, while being a great manager is another. So, besides all the technical knowledge and number crunching, what else sets a manager apart from a normal finance guy?

  • Ability to manage and motivate team members to do their best
  • High proficiency at formulating, implementing and evaluating sales policies
  • In-depth working knowledge of the whole financial industry
  • Sound investment acumen
  • Strong communication skills; clarity of thought and speech
  • Excellent time management and multi tasking skills

The rewards

Financial managers are some of the most handsomely paid professionals. With the right mix of experience, certifications and education credentials one can easily expect to earn a six figure salary. As per the USA Bureau of Labor & Statistics, the average median pay lies in the range of $109,740 annually.

This article was contributed by guest author Saurabh Tyagi.

Image by GotCredit, Flickr

Image by GotCredit, Flickr

Credit is fairly essential in today’s world. And at this stage of your life, there’s good news and there’s bad news. The good news is, you probably haven’t had a chance to ruin your credit just yet. The bad news is, you likely haven’t had the ability to build any credit history either. In order to get credit, you need a credit history, and it needs to be good. It’s important, however, that you know what you’re doing before you start building credit in order to avoid common mistakes that will haunt you and your credit score for years to come.

Take responsibility for your own finances and credit history

As a college student, you’ve already taken an important step towards moving into adulthood and making your own decisions about your future. Now, you need to go one step further and take responsibility and ownership for your finances and your credit. While you may still need some help from mom and dad, it’s a good idea to move into the mindset that the buck stops with you.

Learn to save, budget and track your finances

Once you’ve taken ownership of your financial situation, you can start controlling it. It’s never too early to start saving. This is a valuable skill that will serve you well your entire life, but one that most young people aren’t taught. Your first step should be tracking all of your finances – your incoming and your outgoing. Mint.com is a popular application for this task. This will demonstrate how you’re spending your money and help you create a workable budget. Resolve to stick to a spending plan and to pay yourself first by putting money into savings.

Don’t max out on student loans

Student loans are another thing that will follow you for many, many years. It’s important that you only borrow what you need. Look very closely at all the lending terms, such as the interest rate and repayment terms. Don’t just accept whatever the school suggests. Do your research and compare lenders. It’s a good idea to consider a part-time job while attending college to help offset your educational costs instead of relying entirely on student loans.

Educate yourself about credit and credit scores.

You’re in college, so you understand the value of education. Understanding how credit works, credit scoring and how your financial decisions impact all of this, are essential for building credit and making smart financial decisions. Many credit card issuers now offer several tools, services and tips to help card holders keep track of their credit score and their card usage, and to be responsible with their finances.

Get a credit card and use it wisely

Research credit cards that are available to college students (here are some). Don’t allow yourself to be distracted by “shiny” offers. Identify what you need in a credit card and look for those features. After you narrow down your search to 2 or 3 possibilities, carefully read all the terms and conditions to make sure there are no nasty surprises in store. Once you’ve chosen and received a credit card, treat it responsibly and respectfully. Pay on time every month. Don’t max it out, and keep track of your credit card spending on a regular basis.

Consider becoming an authorized user

Despite the large number of credit cards targeted towards college students, you may not be able to qualify for one right away. If this is the case, you may want to speak to your parents about being added on one or more of their cards as an authorized user. Being added as an authorized user with bad credit or no credit can be a very effective way to boost your credit score and enable you to then qualify for your own credit card so that you can begin building credit through experience. Your parents can use this method to help you start on the path towards a long and excellent credit history.

This article was contributed by guest author Michael Austin.

Image by Sean MacEntee, Flickr

Image by Sean MacEntee, Flickr

With the summer fast approaching, some students will be getting ready for graduation, while others will just be glad for a break before the fall semester. But, with all of the knowledge and studying that students do during the year, there is one thing that most don’t know much about, and that is credit cards; not to mention the fact that being a college student gives you access to something that most people do not have. You’re able to get a credit card while having little to no credit history. For a normal person with this history, they would most likely have to apply for a secured credit card, which requires them to put money down up front. After a decent amount of time and responsible use, then they can apply for a regular credit card and go about getting their initial deposit back from their secured credit card.

By being in college, you can be approved for a student credit card without having to put down a deposit or jumping through any hoops. As time goes by and you show that you can use a credit card responsibly, you can apply for a better, possibly more rewarding credit card, without any problems.

Your Credit Score

The main reasons to get a student credit card are to start out and to improve your very limited credit history and credit score. Just like your grades in school, your credit score reflects how responsible you are with money and how well you pay back money that you borrow. There are two types of credit: installment and revolving. An example of installment credit is your student loans; you borrow a certain amount of money and promise to pay back a set amount each month until it is paid off. Revolving credit is, for example, a credit card. The amount you spend each month changes, and you have to pay a minimum amount each month or you are charged interest on what is left over, unless you pay it off in full (which is what you should always do).

By utilizing your access to a student credit card, you can prove that you are responsible with revolving credit and improve your credit score in the process.

Why Do You Need a Good Credit Score?

At some point in your life, you will probably want to buy a home, and you will most likely need a mortgage in order to pay for it. The interest rate you are charged on the money you are borrowing will depend on how good your credit score is. The lower your score, the higher interest rate you will pay.

In the future, you may also see an offer for a rewards credit card that you think would be beneficial to you and/or your family. In order to be approved for a rewards credit card, you need to have good credit; otherwise you will be stuck using your debit card or basic credit card, and earning no rewards in the process. Just like your degree, your credit score will be with you for the rest of your life. The difference is that your college classes will end at some point and your grades will be final. You have to keep working on keeping your credit score up for the rest of your life.

I Don’t Have That Much Money, So What Use Will a Credit Card Be?

Using a student credit card to help start and improve your credit score has nothing to do with how much money you spend. Chances are your student credit card will come with a credit limit well under $1,000. In no way does this mean that you need to spend $1,000 every month. In fact, you should always stay under 30% of your credit limit, no matter what credit card you have (this helps improve your credit as well). Just make sure you pay back the balance on your card each month. Find something that you already have the money for, use your credit card to buy it, and pay it back at the end of the month. All you are trying to do is prove that you can pay back money that you are borrowing. It doesn’t make a difference how much it is.

Many people, especially students, are intimidated by credit cards, and think that they will end up with a ton of debt if they get one. Almost everyone today uses a debit card linked to their checking account to make purchases. You wouldn’t go out and spend all the money in your checking account for no reason, would you? No. So why think you would do so with a credit card? Use it to spend money you already have, and remember what you are doing in the process. You are improving your credit score so that in the future you will have more financial options if you need them. It is easier to get a credit card while you’re a student than to start looking after you graduate. Then you will be able to graduate with a new degree and an excellent credit score to match.

This article was contributed by guest author Matthew C.