Kenneth Boyd's Blog, page 59

Modern Trends of the Financial Industry

Technology has transformed the world of finance and banking, and those changes impact your personal finances.

Smart consumers use tech advances to create and monitor budgets, to build a savings balance, and to make informed decisions about investing. Here’s a closer look at some financial trends, and how they may impact you.

The Bank Lobby

When was the last time you were in a bank lobby?

As banks have transferred so many of their services online, there is less and less of a need to go to a physical bank, and mobile devices have also made it easier to take care of a your banking needs remotely.

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You can make deposits and transfer funds using your phone. If you’re interested in a mobile app to create and monitor your personal budget, give Mint at try.

Many banks operate at a much lower cost by operating completely online, so consider these types of banks for lower fees and expenses.

Security

Hard to believe, but the vast majority of log in attempts for online banking are due to hackers.

Nowadays, modern criminals are not looking to rob banks with guns – they are doing so with laptops. As a result, financial services companies must constantly innovate to protecting their data. And from a personal point of view, you need to be doing exactly the same thing as well.

Try backing up your files using the cloud, and minimize the number of paper records that you keep on file. Avoid opening any link or email attachment that look suspicious, and call your bank or credit card company, if you suspect an attempted hack on your computer or mobile device.

What Is Blockchain?

Even if you don’t follow tech news all that closely, you’ve probably noticed the rapid development in blockchain technology, the supporting software behind Bitcoin and other cryptocurrencies.

Get free sample chapters from my book: Not Another Personal Finance Book.

You may be wondering things like where to buy cryptocurrency and other similar questions. Ultimately, before you think about hopping on a bandwagon, you need to ensure that you are making the right decision for you. The markets for this financial instrument have been volatile, so proceed with caution.

Less Physical Currency

In an increasing number of western countries, people are no longer carrying physical currency around with them, and are instead using credit cards, smartphones, and even wearable technology like watches. And this could also link in with the previous point. If digital currency starts to become more popular, the need for physical cash could end up declining even further.

Constant Innovation

Even though we have seen a lot of rapid changes over a short period of time, now is not the time to expect them all to suddenly grind to a halt. As long as there are new ways to improve operations, make easily functioning services, and provide cost-saving and increased security levels, we are bound to see new tech firms springing up all the time.

As an individual consumer, it is always going to be worth keeping up with these changes as they occur. You never know how they could end up benefiting you.

Of course, before you make any big financial decisions, it is always worth being sure of yourself, doing plenty of reading, and ideally, speaking to a financial expert.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

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Cutting Costs Without Compromising Quality In Your Small Business

There’s a fine line that all small businesses walk.

The line between keeping overhead costs manageable and ensuring that they’re investing appropriately in their business. All entrepreneurs know that reckless, or frivolous vanity spending can mean doom for a new enterprise. On the other hand, failing to invest in the right employees, the best equipment and decent quality products can inhibit their growth and damage a brand.

The Early Days

This balance can be difficult to achieve, especially in your early days. How can you be expected to stand out from your competitors when you don’t have the best front line employees to wow your customers, or the quality of components to justify the reputation of your brand?

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Take a breath.

You can invest- even with the limited budget, not many connections, and limited resources. Like any savvy shopper, you simply have to look for ways in which to keep your costs down while still investing in quality. Seems like it can’t be done? Think again!

It’s a matter of knowing where to look for the bargains and knowing where your spending will yield the highest ROI. While this may vary slightly, depending on the nature of your business, are here some great starting points:

Buy used

Cutting costs doesn’t have to mean poor quality.

There are areas in which you can make a small sacrifice to save money, and not hurt your customers’ experience or detract from the prestige of your brand. Buying used materials, for example, is a great way of investing in quality raw materials without paying through the nose for them. Whether that’s purchasing used steel tubing in bulk for your manufacturing processes or using reconditioned mechanical or electronic parts for your equipment.

Get free sample chapters from my book: Not Another Personal Finance Book.

Speaking of equipment, if you’re building your IT infrastructure up from scratch or establishing an office space using only an empty room, buying used can save you a small fortune.

Many small businesses out there are trying to maintain a cutting edge image when it comes to their tech, and as such upgrade on a regular basis. You may be able to pick up everything from desks and chairs to thin client PCs for a song. Auctions are also a great source of used office equipment.

Outsource?

Many startup entrepreneurs can get overly focused on protecting the integrity of their brand. While this is a noble sentiment, it can lead them to dismiss good solutions out of hand.

Outsourcing some essential functions to a third party provider is a useful way of saving money in the long term, while enhancing the quality of the services you offer. Outsourcing usually tends to offer a pretty high return on your investment.

Outsourcing in the services of a digital marketing company, for example, can go a long way to growing your brand. While you may have lots of social media and marketing savvy, your attention is better spent on the strategic management of your business. Outsourcing to a third party provider generally costs less than establishing your own marketing department and offers some of the highest investment to ROI ratios you can get.

Likewise, outsourcing your IT provision to a third party can represent significant savings. Not only will you save on the upfront cost of building your IT infrastructure from scratch, your design can be regularly audited to ensure that it is cost efficient.

Cloud Computing

Speaking of IT, many smaller businesses are still wasting a small fortune on expensive server costs because they are either ignorant or are unduly mistrustful of the cloud. However, the cloud can be extremely to product quality.

Cloud based computing can save your company money in a number of ways. Using the cloud requires no hardware costs and the maintenance costs are virtually nil. You pay for a subscription, so the cost of maintenance and even upgrades is incorporated into the price you pay.

Cloud based solutions can also be scaled up or down, depending on the needs of your business. If your business grows, they can be upgraded without the disruption. It can boost your productivity, and even reduce your staffing costs by facilitating remote working. When employees are empowered to carry out their duties from home, it makes your office a greener place to work.

What About Climate?

We all know that temperature has a very close correlation with employee productivity. Even slight fluctuations in temperature can have an adverse effect on employee productivity. But just because you have to maintain a specific ambient temperature to get the most out of your employees doesn’t mean that you can’t take steps to reduce the cost of climate control.

Programmable and smart thermostats can cut your climate control costs without compromising on your employees’ comfort. Use a programmable thermostat to customize your workplace’s climate control schedule to your opening hours, increasing your heat in the morning and dialing it back later in the day when the ambient heat is at its apex.

If your climate control needs are more variable, a smart thermostat can be tremendously helpful. Smart thermostat technology learns your climate control preferences and gauges your building’s energy profile. Once this has been established, it automatically adjusts itself to maintain a comfortable temperature as cost efficiently as possible.

While this may represent an upfront investment it will pay for itself with savings of around 10%-12% a year on heating and cooling.

Don’t let anyone tell you that you need to cut down on quality or employee productivity to save money in business!

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

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Setting An Example By Improving Your Business’ Accessibility

Accessibility is critically important for a business.

If you want to make the right impression on customers and clients, then you need to make sure that everyone who wants to engage with your business can do so- in a way that is simple. Accessibility should be a priority for both customers and employees, and isn’t something to be taken lightly.

Making your business more accessible takes some work, but once you get started, accessibility can improve your relationships with customers. Set an example by improving your business’ accessibility with the help of these tips.

Build It Right

The best way to start improving your business’ accessibility is to start from your base. Whether your business is office-based, or a retail store, you need to make sure that people can access it and get around easily.

From installing ramps to widening your doors, consult experts to find ways of making your premises more accessible to all.

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Offer alternatives

It’s easy to forget about people’s disabilities when it comes to print or signage, but factoring in different disabilities can help make your business more responsible, and widen its reach.

Print publications in braille, and create window graphics in braille to help those with impaired vision to get access to information easily. Loop systems and audio guides are great for those with hard of hearing. When planning any sort of design or printing, make sure you consider all options to help your services be seen and heard by as many people as possible.

Educate

While adopting these practices can go a long way towards making your business more accessible, a lot of the work will be down to your employees. It’s important to educate staff about how to work effectively with people with disabilities and give them any support they need.

Encourage your staff to learn sign language, and pay for the training. It’s a useful skill that can benefit thousands of people, and help your business to engage with a wider range of people.

Get free sample chapters from my book: Not Another Personal Finance Book.

What About Your Website?

How accessible is your website? In many instances, there are changes that can be made to improve accessibility. Some great tips for making your website more accessible include organizing your headings, using alt text and being more careful with your color selections.

Accessibility experts can help you transform your website, so it’s an investment worth making, to help keep you ahead of your competitors.

If you want your business to be respected and seen as a leader in the industry, then it’s time you got serious about making your business more accessible. Being seen as a respected business owner requires many elements, but you can improve your reputation by implementing more accessible practices.

Could your business do more to be accessible? Take some responsibility and start looking for ways to help your business appeal to a greater number of users and make a bigger community impact.

Build a Following

 

If you take the time to make your business more assessable, you’ll build a following of customers who value that trait in your business. Your goal of helping people access your business may have a long-term positive impact.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

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You’re Doubling Your Car Ownership Costs- And You Don’t Even Know It

So, how much does car ownership cost?

From the very start, we have to consider everything, from the cost of insurance to the price of the car itself. Before we even have a license, most of us feel the sting.

As if that weren’t enough, car ownership also raises our monthly living costs. When you have a car in the garage, you have to think about everything from insurance payouts to fuel costs. It’s enough to give anyone a headache.

But, in the modern age, a car is a prerequisite for most. Work commitments and lifestyles dictate we couldn’t be without them. Hence why there’s an average of 834 vehicles per 1000 people in the U.S.

Sadly, most of use can’t eliminate the cost of a car, because we may not have access to public transportation. No matter which way you look at it, car ownership is going to set you back. Many drivers, however, increase car costs without realizing it, and you may be one of them. Here are some car ownership mistakes you can avoid.

A great personal finance book I highly recommend. Click below:

How Fast?

Driving fast leads to increased fuel consumption, and it doesn’t take a genius to work that out. But, have you ever considered by how much? In reality, increasing your speed by just 15% can raise fuel consumption by 20%. In fact, even sticking to 55mph rather than 65mph can make a massive difference.

If you’re unsure how much this would save, try sticking with a lower speed for a month and see how much less you spend. You can do that by tracking the miles you drive, and the amount you pay for gas during the month.

You can find some real savings.

Getting Careless

Some drivers get careless on the road after a while, because they get complacent and don’t pay close attention to the road.

When that happens, you expose yourself to accidents, and this is especially the case when driving around trucks and large vehicles. These big vehicles have blind spots, and they rely on you to pay attention. Admittedly, you would be free to gain compensation from a blind spot accident, or any accident on the road for that matter. But, that doesn’t stop your monthly car costs from increasing.

Get free sample chapters from my book: Not Another Personal Finance Book.

Once you’ve had an accident, your insurance premiums will rise. And, given that insurance is expensive anyway, you’re sure to feel the sting. As such, you’re better off keeping your eyes and mind on the road, no matter how used to driving you are.

Warning Signs

Some drivers ignore warning signs in their vehicles. We leave strange sounds until they lead to breakdowns, or we ignore worrying smells until we can’t anymore. Ironically, we do this to save ourselves money on a car repair- we put it off until later.

In truth, though, these warning signs often come before significant repair work is needed. Ignoring them is one of those mistakes you can’t afford to make. You’ll end up having to fork out for replacements on expensive parts. But, if you listen to what your car tells you, you may be able to fix issues before they get that far. And, you don’t need us to tell you that would save you a fortune.

Take Action

Use these tips to avoid expensive car repairs, and to control your personal finances.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

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5-Star Service: Bridging The Gap Between Business And Customer

Of all the mistakes we make in business, poor communication is something that we’ve all done from time to time.

Whether it’s not making yourself clear with your employees, or a serious error in your advertising communication, we’ve all dropped the ball. Great communication, however, is a fundamental tenet that solidifies your relationship with customers.

It’s a goal we should strive for, in order to grow sales and profits.

Bridging the gap between business and customer is, arguably, more difficult now than ever. The marketplace is oversaturated with businesses of all sizes, which is why communication is so important to business survival.

So, how do you build the communication bridge?

Hemingway’s Approach

It’s the Ernest Hemingway approach to presenting yourself. You show the tip of the iceberg, when, in fact, you’ve done more detailed research- so you don’t have to show everything. How you are perceived, and how you engage with the customer, are important to any marketing campaign.

To dig deep and find consumer preferences, try using a questionnaire with open-ended questions, or interview customers by phone or online.

A great business book I highly recommend. Click below:

You need to get to the emotions behind why a customer makes a certain purchase. Nurturing quality relationships with customers is about solving a customer problem, and helping customers feel an affinity towards you.

Business Ethos

To help a customer feel a sense of affinity toward your business, you lay bare your ethos for everyone to see. Transparency isn’t just beneficial for the employees in your business, it also helps customers make their buying decisions.

If you are selling items via a website, create solid security for customer payments. You have to show your customer that you are doing everything in your power to protect their best interests. Because customers are providing sensitive information, such as card details, so you have to assure the customer that their information is secure.

Payment Security

On ecommerce sites, there are gateways, where customers input card details, and it’s important to have these parts of your site secure- and as user-friendly as possible.

Get free sample chapters from my book: Not Another Personal Finance Book.

Providers like BlueSnap are one of many that can be utilized to ensure that your customers’ sensitive information is kept securely. Data breaches happen so often now, that we don’t like to put our trust in a company that we don’t really know.

This is the peril of so many small businesses now, and if you are reliant on customers to see you through difficult times, it’s essential for you to provide that piece of mind to every buyer.

It’s About Them

Your customer needs to be the priority- not you.

Of course, when you’ve developed a good relationship with the customer, then you can work at highlighting what makes you different. But when you build a new customer relationship, it’s about appealing to them.

This issue goes back to the emotional needs, but you can communicate your overall attitudes to the customer in your marketing, and also ensure that you are going above and beyond to address customer needs.

It’s The Little Things

When we are buying from a brick and mortar store, we don’t think about what we bought, but how we felt when we bought it. This needs to be at the forefront of your mind when working towards building a solid relationship with a customer, especially when your relationship is exclusively online.

Email marketing is one of those things that can go one of two ways: it can engage the customer, or it can turn them off completely. This is why tone of voice is essential, because it links the product with your brand.

One of the great things about running an online business is that you have total control over your tone of voice, but if you are running a physical store, some of the tone may be lost. Consider the little things when nurturing your relationship with the customer.

The Long Game

Building a relationship with a customer isn’t just about the immediate impact; it’s about the long game. When you’re trying to entice customers at the very outset, it’s not just about flashy gimmicks; it’s about a sense of trustworthiness, which allows you to nurture a customer over time.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

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4 Scary Things That Can Happen When You Don’t Budget

Nothing wrong with having fun…

Although we owe it to ourselves to enjoy our lives wherever we can, we must also acknowledge our responsibilities.

Whether we work full time or part time, run our own businesses, or make a living as a freelancer, when we’re riding high financially, it can seem as though we’ll be living the high life forever.

A good paycheck, a healthy bonus, or a closed deal with a lucrative client can be intoxicating. They can tempt us to treat ourselves, live a little, splurge. and throw financial caution to the wind.

But pause and think first.

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Although many households budget in lean times, it’s important to remember that budgeting is only ever really effective when it’s done every month and year. If we fail to budget, however, it can result in some pretty scary consequences…

Can You Save?

Saving is a great way of insulating yourself and your household from financial risk. It can prevent you from having to face any unpleasant financial surprises and avoid burying yourself in debt.

A big part of effective saving is choosing the right savings account, so that you can grow your wealth over time, so choose for an online account. As online banking is less expensive and simple to access, you can set up an automated transfer from your checking to your savings account.

Get free sample chapters from my book: Not Another Personal Finance Book.

If you don’t have a budget in place, however, savings is unlikely to be a real priority for you.

Controlling Debt

Lots of households carry some level of debt- whether it’s student debt, credit card debt, loan repayments or simply your mortgage. There’s no shame in debt, but failing to manage it properly can cause it to spiral out of control.

Effective budgeting allows you to calculate optimum repayments, so that your debts are paid down quickly, and you can reduce your interest costs. Consolidating your debts with a debt consolidation loan can make it much easier to budget, and will help your credit rating, too.

Debt Risk

If you allow your debts to spiral out of control, it becomes much harder to manage high-priority debts (like your mortgage) and lower priority debts (like credit card repayments). All your debts must be paid, but you need to think of your debts in some order of priority.

When this happens, you may find yourself unable to meet your commitments to your mortgage lender and may even end up in foreclosure. If this happens a real estate lawyer will be an extremely valuable resource. Prevention, however, is always the best cure.

Unexpected Costs

Finally, if you don’t budget every month, you’ll be far less able to manage the all of the expenses that run through your bank account each month. When this happens, you don’t know a “good month” from a “bad month” in terms of your spending, and you’re unable to scrape together an emergency fund.

An unexpected payment, like a car repair bill or the cost of replacing a broken appliance, can be disruptive, and leave you with no alternative but to get yourself deeper in debt.

Start Now

A household budget is a tremendously helpful tool in navigating your way to financial freedom. Start this month- you can do it.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

 

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Money Hacks For First Time Homeowners

When you first manage to save up enough money for a home, and you move into your first ever place, you might think that the hard part is over and you can relax a little.

However, it will soon become apparent that you have a mortgage, bills, and utilities to pay for each month, which might leave you a little empty-pocketed and without much room for savings. However, with these money tips and tricks you will be able to still save up money for your future while paying for your home now.

Don’t skimp- on some things

When you move into a home, most people will tell you to buy secondhand or cheap furniture for the time being just to get you started, however this is not the most cost effective way to do things at all.

Instead, you need to think about investing in a decent sofa, oven, fridge and other appliances, because they will last for a long time and this will save you money in the long term. Make sure you invest in good quality stuff when you move into your home.

A great personal finance book I highly recommend. Click below:

 

Rent First?

There is nothing wrong with renting for a while before purchase a house. If you want to get some independence away from your parents, but you haven’t got enough money for a house yet, rent for a while with Apartment Place and you can save up for your deposit, other fees, and save for furniture in the safety of your own space.

It is a great way to give you the experience of being a homeowner before you make that commitment of a mortgage.

Smart With Food

Food is a big cost, especially if you can’t resist a carry out pizza at the end of the week. If you want to save up and be able to live a more luxurious life, you need to be smart with the food you buy and make it last.

Think about not spending money on fruit or vegetables if you aren’t going to eat them, because they will only go to waste and this can be horrible for your bank account. Cook in big batches to last for a few days and this will save you money and time during the week.

Find Bargains

Always be on the lookout for bargains in your life for the house. If there are certain things you want to buy for the home, keep an eye on objects and look online to see if you can score a good bargain.

Get free sample chapters from my book: Not Another Personal Finance Book.

eBay can be great for this, because the site has lots of different objects that people need to sell off, and you might get lucky with what you pick out.

It is always worth checking and double-checking for a good bargain, because you will save so much money in the long term, which you would have wasted otherwise. This will allow you to have the things you want without over paying.

A Game Plan

Put together a game plan to save more money, so that you can afford your first home.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

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Can Getting Rid of Your Car Help You Financially?

The decision to buy or lease a car is a big decision, and a choice that has a huge impact on your personal finances.

A car gives you the freedom to travel and provides a lot of convenience. However, is owning a car really the best financial decision, or are there alternatives that we can rely on?

For many people, purchasing a car is no cheap task, and it takes a lot of time, money, and effort to maintain a car. In this post, we’ll be talking about how getting rid of your car may be a wise financial decision and why you should consider it.

The Responsibility

Whether it’s ending up in a car accident due to your driving (or someone else’s) or having to keep your vehicle maintained for a long period of time, the responsibilities of vehicle ownership are expensive and you need to consider all of them.

Be it servicing your vehicle, replacing certain parts, keeping the engine clean, or even just washing off the grime and dirt, maintaining your vehicle comes with responsibilities- and they can get incredibly expensive if you’re not careful.

A great personal finance book I highly recommend. Click below:

 

Financing and Payments

Paying for a car is expensive. If you’re already knee-deep in debt, then it’s important that you try and get yourself out of debt, if you’re experiencing financial trouble. By selling your car, you can minimize a lot of the debt that you’ll incur and you might even be able to completely wipe your loan if you’re smart about it. This can become a great financial benefit, especially if you’re struggling to pay for the car in the first place.

Have Public Transportation?

Thanks to the growth of public transport in many cities, it’s much easier to get where you want to go. Whether it’s visiting friends in another city, or even taking an Uber when you’re out partying with friends, it’s more convenient, relaxing and ultimately costs less.

Even if you’re injured in an Uber, you may be able to make similar insurance claims and get the compensation that you would from paying car insurance, and you don’t even need to own the car!

Get free sample chapters from my book: Not Another Personal Finance Book.

There are plenty of other conveniences and extra perks to public transport, but they all ultimately affect your financial situation. Would I recommend public transport as a financially wise alternative? Absolutely! But there are, of course, some downsides, such as having less freedom to drive where you want.

Think About It

As you can see, getting rid of your car may be a great financial move. While it can limit your transportation options, there’s no denying that it may be one of the best moves you can make, you’re cutting back on expenses. Give this idea some careful thought, because it may pay off for you.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

 

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Surviving Tough Times: Why It Pays To Set Up An Emergency Fund

We all know that life has its ups and downs.

One day, everything is going great. The next, the future may not look quite so bright. If times are tough, the last thing you want to worry about is being able to make ends meet. Studies show that money is one of the most common sources of stress and anxiety.

While it may not be possible to prevent every bump in the road, you can maximize your chances of being able to cope financially by setting up an emergency fund. If you don’t already have a contingency pot of money, here are some reasons to start saving, and some tips to help you boost your balance.

 

 

 

 

The Unexpected

 

There are many things in life that can impact your finances. Your health, your employment status, and unexpected incidents like car accidents or extreme storms, can all take their toll on your savings goals. If you’re involved in an accident, your home is damaged by a hurricane, or you lose your job out of the blue, you may be worried about paying bills and keeping a roof over your head.

The good news is that there are often solutions to the problems you may encounter, but immediate fix is not always available. This is why it’s so useful to have a fund that you can dip into to keep you afloat when the waters are choppy.

What About Accidents?

If you’ve had an accident while driving, you should be able to file a claim for repairs on your insurance policy. You may also be entitled to claim compensation if you’ve been injured as a result of another driver’s carelessness. If you weren’t at fault for the incident, take a look at sites like https://berkmyer.com/st-petersburg-car-accident-attorney/ and seek advice.

Get free sample chapters from my book: Not Another Personal Finance Book.

If your legal action is successful, the money you’re awarded can be used to cover medical costs and lost earnings. It’s also worth noting that it can take time to process an approved insurance claim.

Unemployment

If you’ve lost your job, and you haven’t been offered a severance package, you might be anxious about coping without a steady income. If this is the case, try and find a new job quickly. Register with recruiters, sign up to websites that advertise vacancies, and consider taking on a short-term job.

If you have skills that could benefit others, think about setting up a side hustle while you’re looking for something more permanent. You could work on a freelance basis, or use your interests and hobbies to earn money.

If you enjoy writing or baking, for example, you could start a blog or start selling your creations at local fairs. For more ideas, check out this useful article https://www.entrepreneur.com/article/293954

Damage At Home

If your home has been hit by a natural disaster, you’ll need money for emergency repairs. While your insurance should cover these costs, it usually takes time to process claims, and this is why it’s beneficial to have an emergency fund. If you don’t have savings you can use, check the details of your policy carefully, and ask your provider about emergency assistance.

It’s not always easy to save, especially if you don’t have a huge amount of disposable income at the end of the month, but putting aside a small sum each month could make all the difference. Make the commitment to fund a savings account each month.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

The post Surviving Tough Times: Why It Pays To Set Up An Emergency Fund appeared first on Accounting Accidentally.

Financial Recovery After A Missed Loan Payment

A personal finance setback can be frustrating- but you can recover.

Some financial problems are minor. For example, you add more to your credit card balance than you planned, or you don’t save as much as you’ve budgeted for the month. In both cases, no harm done- you can always change your behavior and improve next month.

For a growing number of consumers, debts have become a normal part of life, and the issue of missed loan payments has increased dramatically. If you can’t make a loan payment, take action sooner rather than later. You want to move fast to reduce the damage sustained to your finances, and taking action will make the whole situation less stressful.

Worst Case

The worst-case scenario is the risk that you default on a loan. Depending on what sort of loan it is, you’ll find yourself owing more money in penalties, fees and interest charges, which will build up your account balance.

Your credit scores will also decline, and you may need to contact the specialists at www.KCarpLaw.com/foreclosure-and-debt-relief/ in order to make your recovery easier. But that’s the point. You can recover. It might take years, but you can do it.

How To Get Help

Credit counseling is now a big thing; it’s a service designed to help you understand your situation and come up with the best solutions. It’s getting an outside perspective from a debt specialist.

Get free sample chapters from my book: Not Another Personal Finance Book.

In many cases, you can get a reputable counselor for free using the National Foundation for Credit Counseling (NFCC). Just make sure you ask about fees and charges upfront to make sure this will help and not hinder your situation.

Bankruptcy

Speaking to a few bankruptcy attorneys is a great idea when you need some drastic help. Just be prepared to hear the words, “you should really file for bankruptcy.” The reason they are suggesting this is simple: filing for bankruptcy may be a financial solution for you.

However, it is worth accepting that there might be better alternatives out there, so only use this as a last resort. Talk with a trusted friend or family member, and get their opinion.

Government Options

It doesn’t matter what area you live in, there is usually some form of public assistance that will be able to help you. That could be a local service, the federal government or another body that’s been set up provide relief for all those that have fallen behind on their payments.

The hope is that these programs will give you some relief and help you keep up with your loan payments, so that you avoid more drastic problems.

How To Recover

Here are some steps you can take to put a negative financial situation behind you:

Budget: Use your bank statement and credit card statements to review your spending and create a monthly budget. Create a category for each type of spending. Some areas are fixed expenses (car payments, mortgage or lease payments), while other costs are variable (meals and entertainment).

 

Cut variable spending: Review your variable spending and make some cuts. If you eat out three times a month, for example, cut back to twice each month. Rather than buy coffee at a shop each day, make coffee at home a few days a week.

 

Savings account: Use the extra dollars from your spending reductions to fund a savings account, so that you can pay for an emergency, such as a car repair.

Implementing this plan will give you more confidence and increase your peace of mind.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

The post Financial Recovery After A Missed Loan Payment appeared first on Accounting Accidentally.