Simple Living – Finance Tips

Simple living is about living consciously. In the modern world we are encouraged to be fast paced, time poor and lack financial awareness by a system that is basically paced that way. To bring things back into perspective we need to become more consciously aware. We need to learn the luxury of breathing deeply and letting go of modern stress and pace.

Lets look at finance. The simple thing is that most of us have learnt very bad habits. We have learnt to look, point, want, get. A lot of this is taught and encouraged by our parents who become afraid of telling us ‘no.’ They, in turn, do this for many of the same reasons that we learn bad habits. i.e lack of awareness and mindful, thoughtful living.

Here are some things we can do to rescue back a slower pace to our lives and become more consciously aware of and in charge of our finances.

Don’t allow a balance to build up on your credit card.
Only use a credit card when you know for certain that you have money coming in to pay it off that same month.

This also includes the fact that you should never lend someone money based on credit. It is not your money to lend. It is amazing that this has to be stated because so many people do this, but basically If you have to use credit, it means that you do not have the money to lend anyone, so simply say that in response to a request, ‘I do not have the money.’

Don’t go to places with your credit card that encourage you to spend for entertainment like a mall or a day at an adventure event or fun park. Leave the card at home and take cash. Once the cash is gone it’s home time. You will not go over your limit.

Entrepreneurs and Their Angels: Some Basic Financing Tips

Whether you’re a seasoned serial entrepreneur, or a first time entrepreneur, in many instances during the early stage, pre-revenue stage of a new company, the entrepreneur/founder will turn to family and friends for initial investments, and this is called the angel round of investments. But there are some do’s and dont’s when it comes to soliciting capital from angels.

First and foremost, while angel investors are often high net-worth individuals, that isn’t always the case. And soliciting them for funds for your company is a securities offering, governed by Federal and State securities laws. Thus, one of the “do’s” for the entrepreneur/founder is to make sure their angel is an “accredited investor” as that term is defined in Regulation D of the Federal Securities laws, or has an appropriate exemption.

Second, you can provide the angels with a business plan, or prepare a Powerpoint slide presentation, to inform them of your plans for the company. Since this is a private offering, there are no set requirements for what has to be disclosed to your angels. However, here’s an important “don’t”: all information relayed to your angel investors must be factual, and the founder may be liable if it is found that he or she provided materially incorrect or fraudulent information to the angels which was used by them as a basis to invest. So, be sure that you present any information that you are unsure about, such as projected revenues of the company, with language indicating that projections are based on estimates, and that actual results can vary materially from what is presented as projected revenues.

It’s very important that you advise your family and friends that an investment in a new startup company is a very risky business, and that if they are risk-adverse, they should not put any capital into the company. The founder can make an analogy that investing in his company is the same as buying a Powerball ticket; there can be a huge profit if the company is a winner, but in all likelihood, there can also be a total loss of investment.

One more very important “do” for the entrepreneur/founder: once you have many angels invest in the company, they are presumably going to be owners of the voting common stock. You don’t want to have to track down your relatives and friends for their voting consent to certain issues, such as a further financing. You would prefer it if they could designate one person to represent their ownership interests, and sign on behalf of the group. In order to accomplish this goal, the founder should make sure that the angels form a special purpose entity, such as a special purpose limited partnership, and that way, only the general partner of the investment group would have to sign any consents and management of the new company won’t be impeded by having to chase down the friends and family.

Finance Tips For Making That Extra Income On Spare Time

There are some things that you can do (if you have a good internet connection) from the comfort of your home that can generate income for you. But there are also other things that you can do outdoors if you prefer that. However all these projects require at least a small amount of cash to get started. Fortunately, there are financial products that can provide you with the funds you need.

Here are some examples of tasks you can perform from home and some you can do outside if you are more of an outdoor person. All the following examples need some starting investment, you may already have what it is needed to perform the task but if you do not, there are ways to get what you need and pay for it.
Bear in mind that most things will complete amortization quickly as the income generated will soon cover for the costs and you can get financing to pay for everything.

Funds For Computer Related Tasks

With a well equipped computer and a good internet connection, there are many tasks that you can perform on behalf of online companies and get well paid for it. For instance, you can perform advertising tasks by having a blog, a related website, an opt-in mailing list, etc. Of course, you need a good internet connection and a suited computer for the job.

As regards the cost of the internet connection, chances are that you will soon cover that with the income generated by the tasks. However, the purchasing of the computer may be an issue. Remember that you can always resort to some financial products specially tailored for computer purchases.

There are personal loans conceived for desktop computers and laptop purchases that provide you with the needed funds and at the same time come with very flexible repayment programs so you will not need to worry about the installments. Besides, you will soon recover the investment.

Outdoor Tasks And Its Funding

There are companies working in advertising and television that need to find certain landscapes. For this task you just need to know a bit about your city and nearby’s. Having a digital camera is very useful and lately a must, because it saves a lot of time for those who have to make the decision. They do not need to travel to each and every site to see if the landscape is suitable for the photographs or filming they need to make.

There are also many other uses you can give to a digital camera that can provide you with an extra income. You can work for insurance companies, for convention centers, clubs, pubs, etc. In many cases you will also need to take some photograph courses so as to be able to provide better material.

Just like with computers, though cameras can be costly, you can always resort to personal loan financing and obtain low monthly payments to ease your purchases. Eventually you will recover all you have invested plus some good earnings.

As you can see, there are many things you can do on your spare time that can provide you with additional income.
You just need to use your imagination and if you are lost, search the internet for home-based businesses and you will find tons of information to help you get started.

Venture Capital Financing Tips

Few words carry more fascination to an entrepreneur than “venture capital.” The two words may mean different things to different people. Across the world, venture capital means the freedom to have the money to turn your idea from the workbench or the lab into reality.

In short, venture capital is money designed for high-risk investment in startup enterprises. It involves high risk for the investor in beginning ventures or later stages to continue expected progress and growth. It also holds out the possibility of large profits in exchange for the risk of investing.

Venture capital differs from standard bank financing. Instead of paying back a conventional loan within a designated time period at a predetermined rate of interest, venture capital fund investments are repaid through a negotiable percentage of the entrepreneur’s stock in the business over three to seven or eight years as the company succeeds and grows. In most cases, a successful initial public offering (IPO) will allow both investor and entrepreneur to prosper by bringing the company’s stock to the public market.

Usually, the terms of ownership are negotiated and predetermined before a venture investor will conclude the financing.

How a venture capitalist chooses to structure his investment depends on the style and track record of the venture fund. It can be straight equity, a combination of equity and loans, or a sliding scale of reversion from majority control of the entrepreneur’s stock to minority ownership upon achievement of certain milestones. Sales and revenues or an anticipated (IPO) are perennial favorites.

The advantages of venture capital for an entrepreneur are quickly apparent. There is usually no requirement to repay a bank loan. The venture capitalist and the entrepreneur assume some of the risk of the new business together. Better, there is usually no requirement to tie up funds dedicated to interest. That factor alone can be used to propel the business forward.

Further, the venture capital firm can often bring much needed expertise to a new entrepreneur’s business. Beyond capital, knowledgeable and well-connected investors can further lend invaluable knowledge to the startup firm.

Sharing ownership and control of the entrepreneur’s business is often considered the chief disadvantage of the involvement of venture capitalists. This is often the main reason for lack of success for small, inexperienced entrepreneurs, resulting in a failed deal.

Before even considering the small, but powerful area of venture capital, the entrepreneur must know and understand two chief areas of concern

First, the entrepreneur’s industry expertise and background should be flawless. It should be on the cutting edge of industry development.
The startup company must understand the rigors of successfully running a business, as well as marketing, no matter its industry.
It should show a third-party perspective to prove the need for its product by the industry or retail consumer.
Finally, it should clearly demonstrate the fact that the proposed business can grow and achieve profitability in record time.

Secondly, the entrepreneur should consider the most appropriate “fit” with the chosen venture firm. That requires an understanding of the venture firm’s preferred emphasis on investment, the expected time frame for funding, its venture partners, successful previous funding and desired geographic locale.

The job of choosing a venture capital source is far from simple.

It runs the gamut from your wealthy cousin who has always liked you and has just inherited a few hundred thousand or millions of dollars. He might be one of a handful of people who know you directly and can serve as “seed capital” funders for you and your enterprise.

Despite a lingering slow-down in the worldwide economy, there is always plenty of money available for the entrepreneur with a well-thought-out novel idea. The only thing required is more attention to research and facts.

Military Finance Tips on Home Buying

If you are in the military, you’ve probably moved once or twice already and probably will do it again. You’ll most likely be able to buy and sell real estate at a profit. If you know you are going to be moving in the next two to three years you can treat the situation as an investment and maximize your profit. Figure out if you’ll need to take out a military loan, military personal loans, or other type of loan to purchase a home before purchasing a home so you know what you will be able to afford.

First, before buying a home, make sure its something that will sell in the future. If you decide to go with a fixer upper, find one in a good location perhaps close to a top school. Don’t buy something in a poor location, such as a bad neighborhood or busy road. Ask your realtor about the houses you are looking at and how long they have been on the market. With the military you’ll probably have to move with a short notice period so you don’t want something that’s been on the market for six months because it will probably take that long again or even longer to sell when you are ready to sell it.

Keep the outside of your house presentable as well as the inside. You never know when orders will change so you have to be prepared to sell at any time. If you plan to fix up a house, do as much as possible when you first move in so if you don’t get completely through with a project before its time to move, some or most of it will be done making it look better than it did at first.

A tip on fixer-uppers. Don’t buy a house that needs a new roof or has a mold problem. These types of situations will require professionals, its expensive, and it may not completely solve the problem. If you are going to buy a fixer-upper, buy something that just needs a new paint job, new fixtures, or a room that just needs updating. It will cost you some out of the pocket expenses but in return you’ll be investing in the house so you’ll turn out profitable once you sell it.

The interior design and landscape of the house are important to its resale so keep up the value or add to it. A carpet wears out about every two to three years so you may want to purchase new carpet when you move in so you can enjoy it or when you get ready to sell. If you haven’t replaced it your real estate agent may insist you replace it to add more value to the house. This is part of a cost-benefit analysis that you will have to do to determine whether putting value into the house is worth it or not, and when to if at all.

For the color and look of the house, it’s best to stick with neutral colors. People may be turned off by bright or a detailed design so in order to make the house attractive to an average audience its best to keep it simple. Patch up any holes, buff out any scratches, and clean the house so it looks presentable to the viewers and also that it looks well maintained.

As for the outside of the house, which is the first thing people see it’s important to make it look well maintained. If something isn’t eye catching, people aren’t going to remember it as well. If you are fixing up the landscaping of your house just before you sell it visit your local nursery where plants are already alive and growing inside of planting seeds which can take a while to grow. If its fall, don’t go purchase tulips which are made to be planted in the spring. Speak to someone at the nursery and see what they recommend is best for the time of year.

If you have children, keep their toys stored away. People don’t like clutter and if they see it, they may be turned away. You want to give buyers an expensive view of our lot that is going to make them feel right at home.