Over the years, credit cards have become popular over time due to new rewards, new perks, and more benefits. With the future looking even brighter, people are loving credit cards more and more. One of the more popular types of credit cards today are cash back credit cards. Unlike a regular credit card, a cash back credit card will enable you to get cash back on all of your purchases.
Cash back credit cards work in many various ways. It all depends on what kind of credit card you apply for. Some credit cards will give you more cash back on particular purchases. For example, one credit card may give you more cash back on gasoline purchases or grocery purchases, etc.
The industry standard on cash back purchases usually vary anywhere from one percent to about twenty percent. When you apply for your cash back credit card, make sure that you read the terms and conditions affiliated with your card to make sure you know how your rewards work before you start using your card. You may find that some cards have a limit, meaning you can only get so much back per month. In order to avoid this, it's necessary that you check for things such as a limit.
Credit cards are given a bad name by a lot of people because the people who don't know how to use them, abuse them. These are the people who give the industry a bad name. If you're able to pay your bill off on time and in full every time, you will be the type that benefits off of a cash back credit card. The credit card companies are hoping that most people don't pay off their card on time, so that they can charge the outrageous interest rates. This way, even when they give the cash back, they still aren't losing out on the sale.
Cash back cards are ideal for people that tend to use their credit card for every thing and would just like cash back as a reward. What most people find is that a lot of reward cards offer points back or gift cards that they will never use. What they find with cash back is that they are able to either get it in a check form or as a credit statement.
The next time you're looking for an ideal credit card, make sure that you keep this type of credit card in mind. It's like getting a sale on every item you buy Just think of it, let's say you make a one hundred dollar purchase and you get five percent back, it's like you're getting a sale price all the time, it's going to be an easy five dollars back! Ask around with others about these type of cards and you'll find that there aren't that many negative side effects when it comes to using it. Remember to check the terms before applying and you should be on the right path for a perfect card!
Saturday, March 1, 2008
Tuesday, February 5, 2008
10 ways to improve the cash flow equation
Ask for all or a portion of payment up front: There are many products and services that you pay for on delivery or in advance. So why give your customers months to pay up? Asking for at least a deposit up front is a great way to jump-start your cash flow. And if you establish the policy fairly and properly, it shouldn’t alienate good customers.
Sign up for a merchant account: If you already have a merchant account, encourage customers to use this option more often. Sure, you pay a fee. But for speedier cash flow, credit cards can’t be beat. You get your money fast and customers are accustomed to paying with plastic.
Pay bills only when you have to: That doesn’t mean you should be late; only that you needn’t be early. For bills due net 30, for example, why pay at day 12? Paying right at the deadline keeps vendors happy, but will help your own cash flow crunch.
Manage receivables more closely: Create a detailed “aging” schedule of what you are owed, by whom and for how long. Call overdue accounts quickly, focusing first on the largest amounts due. Ask if there is anything you can do to expedite payment.
Create a cash-in/cash-out budget: Note specific due dates for payables as well as receivables. Although the balance between the two won’t always be predictable, the budget can give you a fairly accurate picture of where your business stands in the cash flow derby.
Revamp your invoice: A messy, unclear or inaccurate invoice is far less likely to be paid. Make sure that what you send out reflects care and attention to detail - just as you would in providing your product or service.
Offer a discount for overdue receivables: This can bring some quick cash in the door, but play this card only after you’ve called the customer to ask for full payment. Set a short deadline and make it a sweet enough deal (10-20%) for them to respond.
Accelerate your invoicing: If you invoice customers, do it quickly. Invoices can be prepared in advance, and sent out at the earliest possible moment. More and more small businesses are sending invoices as PDF files via email. This can save days of postal delays. Ask customers if they will accept invoices this way.
Cut expenses: Accelerating positive cash flow is great for your business, but slowing the negative cash flow has the same effect.
Set up a commercial credit line: Do this when times are good. Then tap the line when the need arises.
Sign up for a merchant account: If you already have a merchant account, encourage customers to use this option more often. Sure, you pay a fee. But for speedier cash flow, credit cards can’t be beat. You get your money fast and customers are accustomed to paying with plastic.
Pay bills only when you have to: That doesn’t mean you should be late; only that you needn’t be early. For bills due net 30, for example, why pay at day 12? Paying right at the deadline keeps vendors happy, but will help your own cash flow crunch.
Manage receivables more closely: Create a detailed “aging” schedule of what you are owed, by whom and for how long. Call overdue accounts quickly, focusing first on the largest amounts due. Ask if there is anything you can do to expedite payment.
Create a cash-in/cash-out budget: Note specific due dates for payables as well as receivables. Although the balance between the two won’t always be predictable, the budget can give you a fairly accurate picture of where your business stands in the cash flow derby.
Revamp your invoice: A messy, unclear or inaccurate invoice is far less likely to be paid. Make sure that what you send out reflects care and attention to detail - just as you would in providing your product or service.
Offer a discount for overdue receivables: This can bring some quick cash in the door, but play this card only after you’ve called the customer to ask for full payment. Set a short deadline and make it a sweet enough deal (10-20%) for them to respond.
Accelerate your invoicing: If you invoice customers, do it quickly. Invoices can be prepared in advance, and sent out at the earliest possible moment. More and more small businesses are sending invoices as PDF files via email. This can save days of postal delays. Ask customers if they will accept invoices this way.
Cut expenses: Accelerating positive cash flow is great for your business, but slowing the negative cash flow has the same effect.
Set up a commercial credit line: Do this when times are good. Then tap the line when the need arises.
Cashflow Management Tips
Good cashflow management is at the heart of all successful businesses.
That’s why we have put together our top tips to help you manage your cashflow effectively.
1. Monitor Your Income and Expenditure
Make sure that you monitor your income and expenditure carefully so that you can see easily who owes you money, and who you owe money to. You can do this by keeping an invoice book and records of payments you have received on an Excel spreadsheet. If you do not monitor your cashflow you have no hope of managing it.
2. Budget Carefully
Budget carefully so that you do not spend more than you can afford to and so you know when big expenses are coming up.
3. Build Relationships with Good Customers
The saying, ‘old is gold’ is particularly relevant when it comes to cashflow management. If you have a customer who always pays promptly make sure that you build a good relationship with him/her by providing first rate customer service. Remember, it’s easier and cheaper to keep and existing customer than it is to find a new one.
4. Know Your Break Even Point
Make sure that you know what your break even point is. If your income is higher than your expenditure you are in profit and the way round means you are making a loss. If your income and expenditure are balanced you have reached your break even point.
5. Pay Bills On Time- Not Before
Don’t pay your bills before they are due. Having said this, you should always pay on time as failure to do so can damage your reputation and ability to negotiate good payment terms.
That’s why we have put together our top tips to help you manage your cashflow effectively.
1. Monitor Your Income and Expenditure
Make sure that you monitor your income and expenditure carefully so that you can see easily who owes you money, and who you owe money to. You can do this by keeping an invoice book and records of payments you have received on an Excel spreadsheet. If you do not monitor your cashflow you have no hope of managing it.
2. Budget Carefully
Budget carefully so that you do not spend more than you can afford to and so you know when big expenses are coming up.
3. Build Relationships with Good Customers
The saying, ‘old is gold’ is particularly relevant when it comes to cashflow management. If you have a customer who always pays promptly make sure that you build a good relationship with him/her by providing first rate customer service. Remember, it’s easier and cheaper to keep and existing customer than it is to find a new one.
4. Know Your Break Even Point
Make sure that you know what your break even point is. If your income is higher than your expenditure you are in profit and the way round means you are making a loss. If your income and expenditure are balanced you have reached your break even point.
5. Pay Bills On Time- Not Before
Don’t pay your bills before they are due. Having said this, you should always pay on time as failure to do so can damage your reputation and ability to negotiate good payment terms.
Monday, February 4, 2008
How to Create an Automatic Savings Plan
Do you have a savings account, yet find it difficult to find money to deposit into it? This isn’t an uncommon problem and most people find it hard to save. Generally when you receive income it is either directly deposited into your checking account or you go to the bank to make a deposit. Typically these funds head straight to the checking account so they are available to pay the seemingly endless stream of bills.
Automatic Saving is Easy
Thanks to modern technology it is very easy to set up an automatic savings plan.
If you currently have direct deposit through your employer you will find the easiest way to establish this is to have part of your paycheck directly deposited into your savings account as well. It doesn’t matter if it is $10 or $500, simply having this happen automatically will ensure money is saved every time you are paid.
If you don’t have direct deposit there is still an easy option available if you do your banking at a local branch. Typically your bank can link checking and saving accounts together and establish automated transfers between accounts at a regular interval that you select. So if you cash your paycheck every other Friday you could establish an automatic transfer of a set amount of money from checking to savings to coincide with this deposit.
Automatic Saving is Easy
Thanks to modern technology it is very easy to set up an automatic savings plan.
If you currently have direct deposit through your employer you will find the easiest way to establish this is to have part of your paycheck directly deposited into your savings account as well. It doesn’t matter if it is $10 or $500, simply having this happen automatically will ensure money is saved every time you are paid.
If you don’t have direct deposit there is still an easy option available if you do your banking at a local branch. Typically your bank can link checking and saving accounts together and establish automated transfers between accounts at a regular interval that you select. So if you cash your paycheck every other Friday you could establish an automatic transfer of a set amount of money from checking to savings to coincide with this deposit.
You Don’t Get Do Overs at Retirement
You’re playing a game and all at once someone shouts “Do over” and everyone starts the game over. You get “do overs” in quite a few things in life but retirement planning isn’t one of them. Whatever decisions you make now you will have to live with once you retire. Think about your retirement and what you might want to be doing when you reach 55, 60, or older. Do you want to be scratching out a living or do you want to be enjoying life? What you do right now could dictate your future retirement.
No matter what your age, this isn’t something that should wait. Every year you put off stashing something away for retirement, you are losing money. The sooner you start, the less you will have to set aside each pay to have a nice retirement nest egg.
What can you do?
There are lots of ways you can start saving for your retirement. If your company has a retirement plan, sign up and contribute as much as you can. Put aside a percentage of your pay check each month to invest in an IRA. If you invest in a traditional IRA, you might be able to take a tax deduction for the amount. If you invest in a Roth IRA, you won’t get a tax deduction but your earnings will be tax-free. There are no tricks to retirement planning and saving, it’s something you should do on a regular basis. Even if you have a company retirement plan, it’s a good idea to have some personal saving in an IRA or similar saving vehicle.
Bottom line:
Gone are the days when a company had a guaranteed pension plan to supplement your social security benefits. Gone are the days when a retired person could actually live on the payout from a company pension and social security benefits. We are accustomed to a lifestyle that commands us to have 80 percent to 90 percent or more of our annual income set aside for our retirement. Given the longevity of today’s population, you could live for 20 or 30 years after you retire so you will need to have quite a nest egg put aside. If you are planning to retire in the lifestyle you have grown accustomed to living, you can’t do a “do over”, you have to start planning and saving right now.
No matter what your age, this isn’t something that should wait. Every year you put off stashing something away for retirement, you are losing money. The sooner you start, the less you will have to set aside each pay to have a nice retirement nest egg.
What can you do?
There are lots of ways you can start saving for your retirement. If your company has a retirement plan, sign up and contribute as much as you can. Put aside a percentage of your pay check each month to invest in an IRA. If you invest in a traditional IRA, you might be able to take a tax deduction for the amount. If you invest in a Roth IRA, you won’t get a tax deduction but your earnings will be tax-free. There are no tricks to retirement planning and saving, it’s something you should do on a regular basis. Even if you have a company retirement plan, it’s a good idea to have some personal saving in an IRA or similar saving vehicle.
Bottom line:
Gone are the days when a company had a guaranteed pension plan to supplement your social security benefits. Gone are the days when a retired person could actually live on the payout from a company pension and social security benefits. We are accustomed to a lifestyle that commands us to have 80 percent to 90 percent or more of our annual income set aside for our retirement. Given the longevity of today’s population, you could live for 20 or 30 years after you retire so you will need to have quite a nest egg put aside. If you are planning to retire in the lifestyle you have grown accustomed to living, you can’t do a “do over”, you have to start planning and saving right now.
Top Ten Financial Tips
1. Get Paid What You're Worth and Spend Less Than You Earn
It sounds simplistic, but many people struggle with this first basic rule. Make sure you know what your job is worth in the marketplace, by conducting an evaluation of your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. Being underpaid even a thousand dollars a year can have a significant cumulative effect over the course of your working life.
No matter how much or how little you're paid, you'll never get ahead if you spend more than you earn. Often it's easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. It doesn't always have to involve making big sacrifices.
2. Stick to a Budget
One of my favorite subjects: budgeting. It's not a four-letter word. How can you know where your money is going if you don't budget? How can you set spending and saving goals if you don't know where your money is going? You need a budget whether you make thousands or hundreds of thousands of dollars a year.
3. Pay Off Credit Card Debt
Credit card debt is the number one obstacle to getting ahead financially. Those little pieces of plastic are so easy to use, and it's so easy to forget that it's real money we're dealing with when we whip them out to pay for a purchase, large or small. Despite our good resolves to pay the balance off quickly, the reality is that we often don't, and end up paying far more for things than we would have paid if we had used cash.
4. Contribute to a Retirement Plan
If your employer has a 401(k) plan and you don't contribute to it, you're walking away from one of the best deals out there. Ask your employer if they have a 401(k) plan (or similar plan), and sign up today. If you're already contributing, try to increase your contribution. If your employer doesn't offer a retirement plan, consider an IRA.
5. Have a Savings Plan
You've heard it before: Pay yourself first! If you wait until you've met all your other financial obligations before seeing what's left over for saving, chances are you'll never have a healthy savings account or investments. Resolve to set aside a minimum of 5% to 10% of your salary for savings BEFORE you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account.
6. Invest!
If you're contributing to a retirement plan and a savings account and you can still manage to put some money into other investments, all the better.
7. Maximize Your Employment Benefits
Employment benefits like a 401(k) plan, flexible spending accounts, medical and dental insurance, etc., are worth big bucks. Make sure you're maximizing yours and taking advantage of the ones that can save you money by reducing taxes or out-of-pocket expenses.
8. Review Your Insurance Coverages
Too many people are talked into paying too much for life and disability insurance, whether it's by adding these coverages to car loans, buying whole-life insurance policies when term-life makes more sense, or buying life insurance when you have no dependents. On the other hand, it's important that you have enough insurance to protect your dependents and your income in the case of death or disability.
9. Update Your Will
70% of Americans don't have a will. If you have dependents, no matter how little or how much you own, you need a will. If your situation isn't too complicated you can even do your own with software like WillMaker from Nolo Press. Protect your loved ones. Write a will.
10. Keep Good Records
If you don't keep good records, you're probably not claiming all your allowable income tax deductions and credits. Set up a system now and use it all year. It's much easier than scrambling to find everything at tax time, only to miss items that might have saved you money.
It sounds simplistic, but many people struggle with this first basic rule. Make sure you know what your job is worth in the marketplace, by conducting an evaluation of your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. Being underpaid even a thousand dollars a year can have a significant cumulative effect over the course of your working life.
No matter how much or how little you're paid, you'll never get ahead if you spend more than you earn. Often it's easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. It doesn't always have to involve making big sacrifices.
2. Stick to a Budget
One of my favorite subjects: budgeting. It's not a four-letter word. How can you know where your money is going if you don't budget? How can you set spending and saving goals if you don't know where your money is going? You need a budget whether you make thousands or hundreds of thousands of dollars a year.
3. Pay Off Credit Card Debt
Credit card debt is the number one obstacle to getting ahead financially. Those little pieces of plastic are so easy to use, and it's so easy to forget that it's real money we're dealing with when we whip them out to pay for a purchase, large or small. Despite our good resolves to pay the balance off quickly, the reality is that we often don't, and end up paying far more for things than we would have paid if we had used cash.
4. Contribute to a Retirement Plan
If your employer has a 401(k) plan and you don't contribute to it, you're walking away from one of the best deals out there. Ask your employer if they have a 401(k) plan (or similar plan), and sign up today. If you're already contributing, try to increase your contribution. If your employer doesn't offer a retirement plan, consider an IRA.
5. Have a Savings Plan
You've heard it before: Pay yourself first! If you wait until you've met all your other financial obligations before seeing what's left over for saving, chances are you'll never have a healthy savings account or investments. Resolve to set aside a minimum of 5% to 10% of your salary for savings BEFORE you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account.
6. Invest!
If you're contributing to a retirement plan and a savings account and you can still manage to put some money into other investments, all the better.
7. Maximize Your Employment Benefits
Employment benefits like a 401(k) plan, flexible spending accounts, medical and dental insurance, etc., are worth big bucks. Make sure you're maximizing yours and taking advantage of the ones that can save you money by reducing taxes or out-of-pocket expenses.
8. Review Your Insurance Coverages
Too many people are talked into paying too much for life and disability insurance, whether it's by adding these coverages to car loans, buying whole-life insurance policies when term-life makes more sense, or buying life insurance when you have no dependents. On the other hand, it's important that you have enough insurance to protect your dependents and your income in the case of death or disability.
9. Update Your Will
70% of Americans don't have a will. If you have dependents, no matter how little or how much you own, you need a will. If your situation isn't too complicated you can even do your own with software like WillMaker from Nolo Press. Protect your loved ones. Write a will.
10. Keep Good Records
If you don't keep good records, you're probably not claiming all your allowable income tax deductions and credits. Set up a system now and use it all year. It's much easier than scrambling to find everything at tax time, only to miss items that might have saved you money.
Friday, February 1, 2008
Where is Blogging for Money ‘Passive’?
Perhaps the main area of where blogging has an element of ‘passivity’ to it in how it can earn an income is when it comes to your archives.
I’ve been blogging now for close to 4 years and in that time would have published over 20,000 posts across my own blogs. While the writing of these posts is anything but passive (more on that later) the great thing about it is that even after those posts drop off the front page of a blog they continue to have earning potential.
In fact as I look at the most popular pages of my blogs (and the ones that earn the most) - the vast majority of my income comes from my archives - posts I’ve not thought twice about for months, if not years.
In that regard - that income has a passive element to it - old posts are like an investment that continues to earn an income into the future.
Set and Forget Income Streams - One of the great advances from the last few years in generating an online income has come from the improvement of advertising networks like AdSense which allow publishers to add a snippet of code to their blogs that will automatically run ads on the blog over time.
While you can (and should) definitely work on your ad optimization - many bloggers get to a point with their ads that they are able to largely set and forget them. The ads will earn an income and the cheques (or direct deposits) will appear each month. There is no searching for or negotiation with advertisers - the system handles it all for you. This takes a load off many publishers minds and allows them to concentrate on other activities of running a good blog.
Put the idea of Archives and set and forget income streams together and there is an element of passivity to blogging for money. Add to it that money made from blogging doesn’t depend upon you being ‘open for business’ to make money (ie I make more money during the hours that I’m asleep than when I’m awake due to my time zone) and I can understand why people might describe it as a passive income
I’ve been blogging now for close to 4 years and in that time would have published over 20,000 posts across my own blogs. While the writing of these posts is anything but passive (more on that later) the great thing about it is that even after those posts drop off the front page of a blog they continue to have earning potential.
In fact as I look at the most popular pages of my blogs (and the ones that earn the most) - the vast majority of my income comes from my archives - posts I’ve not thought twice about for months, if not years.
In that regard - that income has a passive element to it - old posts are like an investment that continues to earn an income into the future.
Set and Forget Income Streams - One of the great advances from the last few years in generating an online income has come from the improvement of advertising networks like AdSense which allow publishers to add a snippet of code to their blogs that will automatically run ads on the blog over time.
While you can (and should) definitely work on your ad optimization - many bloggers get to a point with their ads that they are able to largely set and forget them. The ads will earn an income and the cheques (or direct deposits) will appear each month. There is no searching for or negotiation with advertisers - the system handles it all for you. This takes a load off many publishers minds and allows them to concentrate on other activities of running a good blog.
Put the idea of Archives and set and forget income streams together and there is an element of passivity to blogging for money. Add to it that money made from blogging doesn’t depend upon you being ‘open for business’ to make money (ie I make more money during the hours that I’m asleep than when I’m awake due to my time zone) and I can understand why people might describe it as a passive income
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