For businesses to prosper and consumers to have buying power, credit needs to be made available at a reasonable rate of interest. This benefits the economy, as trade prospers on the basis of effective use of credit. There are many ways in which an individual or a business may avail credit. It is extended by any financial institution as it profits from the interest paid by the borrower, over the principal. Though this basic nature of a credit offering remains the same, the different credit types vary according to terms and conditions of repayment and interest charged. A ‘Loan’ and a ‘Line of Credit’ are two such types of credit offerings.
Both these options are made available by most banks and financial institutions. It is essential that one knows the difference between the two, when choosing.
When a person opens a line of credit with a financial institution, he is allowed to borrow less than, or up to a credit limit at any point of time. He or she will only need to pay back the interest on the amount borrowed. It is
I was once told, “If you want to invest your money, you need to invest in real estate, especially if you want to invest in something that only increases in value.” That has been proven to be a true statement. Call up several local real estate offices and ask if they have any rental property. You might be surprised at the number realtors that have rental property. Why buy rental property? Because it is an easy way to make your money make money for you. Are there any Tips Investing Rental Property? Yes, there are several ways a person can do this.
The easiest tip would be to watch your local newspaper for low priced sells on houses, manufactured homes and apartment complexes. Secure a loan through your bank allowing enough to cover some remodeling expenses. Set a rental rate to cover your payments and rental insurance. Keep in mind that the idea is to make money, not lose money.
Contact your Land Commissioner’s office in your state captiol. The land commissioner’s office publishes a book of delinquent taxes on property in every county in
It is said that marriage is the best thing that can happen to two people in love. It is true, provided the spouses understand each other and are aware of the responsibilities that come with marriage. However, married life can suffer a setback, if there are financial issues in a relationship and the partners do not work it out properly to solve these problems. In studies conducted by experts, financial issues have been included as one of the top reasons for a divorce. So, it is always better to be aware of financial problems, if any, and find effective ways to deal with them.
Monetary Issues and Their Solutions
This is one of the basic issues that married couples face. They are not clear about whose salary should be used for household expenses and whose should go in for savings. Lack of planning leads to confusion, ultimately resulting in differences between a couple.
Solution: Couples should try different ways to handle their finances and check which one works the best for them. According to surveys, around 64% of couples have joint accounts, 14% of
Today, loan has become the part of the normal living. In the present circumstances, it is difficult to identify a person without even taken a singe loan. Loans are the money provided for temporary purposes, which has to be repaid in the particular repayment track. Now, most of the people have multiple loans since the economic conditions are becoming stringent. The widespread utility of the loans have motivated to introduce many different types of loan. The different types of loan have its own characteristics and attributes, which makes it different from others. The economic regulations prevailing in the country is the deciding factor behind the different types of loan.
The different types of loan are available mainly in the focus of the purpose of the loan. The most popular types of loan include home loan, personal loan, car loan, student loan, payday loan, debt consolidation loan and so on. The lenders have also introduced many subtypes of these loans, to meet the necessity of the specific group of people. The point essentially has to be noted is that these loans have different rates and repayment track. Each type of loan will be structured according to the needs of the particular loan.
A VA loan is a mortgage loan established by the United States Department of Veterans Affairs for providing home loan benefits to veterans, active servicemen, surviving spouses, and their families. This does not mean that the VA gives out the loans. The loans are provided by private lenders, while the VA guarantees a certain part of the loan. This helps get better cost benefits and terms of repayment. Also, as they do not have mortgage insurance, you are able to save a lot of money every month. Remember that these are not one-time loans; in fact, these loans are reusable and you can avail another, once you pay off the earlier one. The best part about this loan is that if you fail to pay your mortgage, the VA will step in and negotiate with the lender for better terms. Also, pre-payment of dues does not attract any penalty. Hence, because of all these benefits, availing this loan can be very advantageous for you. However, you must know certain things before you plunge into one. For example, there is an occupancy rule which is applicable to the VA loan.
Things You Should Know Before Applying for a VA Loan
The concept of hardship loans is quite different as they belong to a separate class of loans. Roughly parallel to the debt consolidation loans, hardship loans are utilized as means of solving financial junctures. Several people have successfully used such loans during the time of economic recession. In some cases, due to the negative status of the economy, the loans did not have a significant positive outcome. But in cases where the economy is booming, this category of loans tend to be of great financial help. The results, are thus mixed.
Hardship Loans for Students
The most common hardship loan is the one that is given to students, and is provided by many major banks such as Wells Fargo. More often than not, students are compelled to apply for common student loans as a result of high educational fee structure. During the course of their education, they are also forced to borrow various other loans such as cash advance loan and other personal loans. After their graduation, a large number of students are in grave debt or do not have any financial means to pursue their education further. The Federal Family Education Loan Program is a program that is offered for
1. The Expected Future Inflation Rate – The performance of TIPS bonds are affected by the expected inflation rate for the future. These securities are inflation protected securities, and if the expected inflation rate for the near future is expected to rise then these bonds will perform better. If inflation is expected to fall in the near future then the bond performance can suffer as well. If inflation is expected to increase then the demand for these securities can also increase significantly.
2. The US Economy – The economy of the United States can affect the performance of Treasury Inflation Protected Securities. A weak economy usually means a lower inflation rate, and this in turn causes the performance of these Treasury securities to decrease as well. A strong economy often means rising inflation, and this translates into better performance for this type of bond investment. The state of the US economy has a big impact on the performance of TIPS investments.
3. Changes in The Consumer Price Index for Urban Consumers – The Consumer Price Index is one factor that will help determine the TIPS bonds performance. When this index increases then the performance of these securities also improves because these bond
With the global stock markets having gone up considerably from their lows, the number of people taking interest in equity investments has shot up again. While choosing stocks, doing some research is of prime importance, and investors should look for those that are fundamentally stable and sound. Financially strong companies are known to pay attractive dividends to their shareholders which adds to their earnings considerably. Let us first understand the basic concept of dividends in the next section.
Dividends are the monetary payouts made to the shareholders of a company from the net profits earned during a particular period. Generally, they are declared after the quarterly or yearly financial results. They are paid on a per share basis and the amount per unit is decided by the board of directors. So, the more number of shares you hold, more would be the dividend amount you receive in your account. It would not be wise to expect dividends from companies which are making losses on operating levels or have a high debt burden. On the other hand, firms with a healthy amount of cash in their balance sheet and decent cash flows quarter-on-quarter will succeed in paying effective dividends. History reveals that
Every business organization needs capital to function and earn profits. This capital is collected by the organization by issuing shares or stocks that can be purchased by individuals. When you purchase stocks of a company, you get a stock certificate which states the number of shares acquired, and implies that you have a partial ownership of the company. This means that you will earn a share of the company’s profits, in proportion to the number of shares you invested in. For example, if a company has 100 shares and you buy 5 of them, you have 5% ownership of the company. A stock market is a place where you can invest in, and trade for, stocks of different business firms at a certain price. An example is the New York Stock Exchange (NYSE).
When it comes to the best strategies to invest in stocks, there is no single strategy that is universally recommended. You can choose a strategy that suits you, based on how much amount you wish to invest, the risk you are willing to take, and how the market behaves.
Techniques for Stock Analysis
There are basically two analytical techniques used by stock investors for stock picking, or choosing the
The insurance business is affected by fraud that costs millions of dollars every year. It’s a crime that not only affects insurance companies, but also translates to higher costs of premiums for the common man, as insurance companies increase the cost of premium to make up for the losses incurred as a result of fraud.
Frauds are prevalent in every sector of the industry. Hence, it is our responsibility to report anything that we find suspicious, as our doing so can successfully foil the plan of someone attempting to dupe the company.
In this Buzzle article, we shall take a look at some of the most common types of fraud that insurance companies have to be aware of.
Different Types of Insurance Fraud
1. Automobile Insurance
Automobile insurance fraud is perhaps the most common. The fact that auto insurance is compulsory these days has led to a rise in the probability of auto insurance fraud. Some of the most common types of automobile fraud include those listed below.
Report of False Theft
This is a common type of fraud in the automobile insurance sector. The culprits report that a car is stolen, when in reality, it is not. So, what do they do with the car?
These days, most of us ensure that we have the proper insurance policy for almost all items we buy. From a smartphone to a car, or a home, everything needs to be insured, to limit our losses. The knowledge of concepts such as actual cash value is necessary for all those who wish to buy a new insurance plan.
Actual Cash Value Defined
Actual cash value computation is done by considering the price of an item, when it was new, and then deducting depreciation from it. The insurance company pays this amount to the customer who has had insurance and has claimed for the same.
The depreciation is decided by the insurance company, by being just, and taking into account some fundamental factors that affect its value over time. More the number of years of purchase of the commodity, lesser would be the amount of money which the customer might get from the insurance company. This concept can be grasped well by considering this simple example.
Let us assume that a customer buys a bike and has an auto insurance policy for the same. If he crashes the bike immediately after the purchase, then the actual cost will not be too less than the
Personal accident insurance is a kind of insurance policy, wherein the policy holder receives cash cover from an insurance company, in case he or she meets with an accident. It helps you in paying your hospital bills, and in case an unfortunate incident befalls, wherein the policy holder dies, the family receives cash benefits. Even though death of your near and dear ones can’t be replaced by money, it at least gives you something to fall back on in times of need. You need to claim your accident insurance settlement as soon as you possibly can, as different states and companies have varying rules of the time limit within which you need to apply.
In case you meet with a car accident and you are thinking of this settlement, there are a few things that you need to do. You first need to report this unfortunate incident to your insurance company and file an auto insurance claim. Once your claim is submitted, a claims adjuster will get in touch with you either by calling you, through email, or through post. A claims adjuster is an employee of the insurance company, and he or she is exclusively responsible for dealing with such
A company, that purchases Commercial General Liability Insurance (CGL), is covered for the cost of defending and settling real or fraudulent claims pertaining to bodily injury, that may be faced by a customer at the place of business or injuries sustained by employees at the client’s workplace; property damages; personal injury as a result of defamation; operations liability, and advertising injury up to a maximum amount as stated in the contract. This insurance is the most basic business insurance. As a rule, the deductible, or the percentage of the insurance claim that has to be borne by the insured, and the premium that is paid for the coverage provided by the insurance company, are inversely related. Companies also purchase umbrella liability to cover payments exceeding the general liability insurance policy limits.
General Liability and Property Insurance for Businesses
CGL is bundled with Property insurance and sold as a package that is referred to as the Business Owner’s Policy (BOP). Property insurance protects the assets of the business against accidents that may occur on or off the business premises. The main disadvantage of purchasing a BOP is that the coverage limits for CGL and property are low. This is because the insurance company
Running a business successfully requires a lot of financial planning and effective financial management. A cost sheet can be a way of being aware of all the costs incurred by us on different things while running a factory or facility. From this knowledge, we can easily think of cost cutting ideas for companies and institutions. So, you must have some idea as to why the preparation of a cost sheet is essential. The format is standard and we are expected to follow it. In this article, you will learn how to prepare a cost sheet.
Factors to be Considered
Calculation of Materials Consumed
The aim of preparing a cost sheet is to show the various types of costs incurred by the factory in the course of its operations. This document consists of particulars and amount columns. In the particular columns, you show the different kinds of expenses of the company. Calculating the materials consumed is the first step. The materials consumed are calculated by adding the purchased raw material cost and carriage inward to the opening stock of raw materials, and then subtracting the closing stock of raw materials from this total.
Materials Consumed = (Opening stock of raw materials + purchase of raw
Be it during the times of economic recession or in a good-going financial stability, companies today are giving significant importance to cost cutting. And when it is a matter of cost cutting, outsourcing plays a central role in the management strategy.
In simple terms, outsourcing is a concept that involves one party to avail services from other company on a contractual basis. The services outsourced or contracted are ones that are general or supportive in the parent company. Accounting and payroll is a service that is outsourced more nowadays.
What is Accounting Outsourcing?
In this, one company asks another company to manage its accounting and payroll functions which are generally required on a regular basis. Small companies prefer doing these tasks themselves, as they have a separate department for all these supportive functions. On the other hand, since larger companies are getting more focused on cost saving, they opt for accounting outsourcing just as a measure of saving on the in-house account management costs. This has surely proven to be a profitable step for companies in reducing the account and payroll handling costs.
Saving on Operational Costs: This is one of the most important and evident benefits to companies from various industries. Companies
Almost all professions have a standard code of conduct which consists of certain guidelines that need to be followed. The Generally Accepted Auditing Standards (GAAS) are a pre-defined set of criteria to which all the certified public accountants must abide by. These determine the quality and the efficiency of the audits done, be it of a private firm or a government entity. They are also followed when it comes to passing a judgment on the work done by an auditor.
Establishment of GAAS
In the United States, there are 10 standards which were established by the American Institute of Certified Public Accountants (AICPA) in 1947. Although, with time, there have been minor amendments in these standards, but the basic rules still apply.
The 10 GAAS to Follow
The list below is based on the general working standards related to the field work, interpretations, and reporting.
In order to perform an audit, the auditor must possess adequate amount of proficiency through technical training.
It is also necessary for the auditor to consistently keep an independent approach in terms of his/her mental attitude, when it comes to matters related to performing the audit.
It is important for the auditor to exercise professionalism during the task.
The main purpose of financial accounting is to provide necessary economic information required for decision-making in a business. Financial accounting follows certain rules and guidelines to prepare reports on the financial standing of an entity. These rules and guidelines are usually referred to as Generally Accepted Accounting Principles (GAAP). GAAP sets its accounting standards and guidelines for preparing financial reports for public, private, non-profitable organizations, and government-owned companies.
Readers of a financial report should be intimated if the information provided in the financial statements follow the GAAP guidelines. The accountant or auditor is responsible for ensuring this procedure.
Fundamental Concepts of Accounting
This principle treats the company as a separate entity from its owners. Personal accounts of owners/partners should be kept separate from profits and expenses of the company. So, the accounting reports are prepared from the viewpoint of business purposes and not from the owner’s outlook.
This principle states that the company has to consider the original cost of fixed assets like building and machinery, rather than market value. But today, most of the companies report only the market value.
According to this principle, the auditors should prepare the financial reports in order to project
Your wallet contains a plethora of information about you, from your cards and license, to your cash. Losing it means losing all that it contained, and that puts you in grave danger, because you run the risk of identity theft. You need to be aware what needs to be done in such a case to protect yourself from things like credit car fraud, identity theft, etc. Once you get over the initial shock of losing a wallet, it’s time to think clearly. Do not panic (easier said than done, I agree). Think of ways to amend the situation. Here’s how.
Dealing with the Loss of Your Wallet
Once you are sure the wallet is not on you, hunt for it. Try to remember where you last used it, where you were when you last used it, what did you use it for, etc. Rake your brains and see if you recall where you put it back once you finished using it. Then look for it again in those places.
If you are sure you have lost it, call the place you last visited with your wallet. Most public places like shopping malls have a lost-and-found center, so chances are if they have
If you are young and buying your first home, it can be a very scary time in your life. However, it’s also very exciting to think that you are going to own your property for the first time ever. This is truly the American Dream at work! Chances are, your mortgage payment will be more expensive than whatever rent you were paying before you were a homeowner. You may be worried about how to budget after you close on the house, but you will catch on quicker than you think. If you couldn’t afford the house, the bank wouldn’t have given you the loan, so get ready to crunch some numbers and enjoy the first year living in your new abode.
Pay Attention to Your Lending Officer
Before your loan is even approved, your lending officer should sit down with you at the bank and give you a quick run down of the numbers. If they don’t, you should ask them to do so, or find a lending officer that will; it’s totally OK to shop around for lenders, especially in this economy. When you meet with your lending officer, don’t be afraid to ask questions and/or take notes. When you lock
Research suggests that attending one wedding can leave you $500 lighter (spending on yourself, your clothes, the gift, and other miscellaneous expenses). And this does not include travel expenses in case you have to travel to another city for the wedding. While insurmountable expenses are inevitable for the couple headed into wedded bliss, for the guests attending the wedding, the day(s) can be saved. You are obviously going to have to shell out a few bucks for the gift, your attire, and the parties before and after, but these can be controlled significantly by one simple measure – planning! Head into the wedding season without a plan, and you won’t know what hit your savings. On the other hand, a little planning, even though it may end up with you going slightly out of budget, will keep you within spending limits and help you get through the wedding season financially. To make a plan, consider the following questions:
How many weddings have you been invited to?
How many weddings do you absolutely HAVE to attend?
How many involve the same group of guests?
How many people are you close to among the guests?
Why is this important you ask? So that you