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Lending Someone Money? Here is What You Should be Considering

Lending Someone Money? Here is What You Should be Considering

Lending money can get you in a tricky situation pretty fast, especially when the time comes for you to get it back. It can damage years of friendship or create rifts between loved ones. But the worst part is that the amount you have lent can make a significant dent in your savings and lead to financial difficulty. This is why you need to carefully think before loaning money to anyone, especially if it is a near and dear one. Here are some of the things that you should think clearly about before lending money.

Can You Afford It?

If not, then a straight and simple answer is ‘no’. Explain how you too are short on money or how you need it for certain tasks, and politely yet firmly refuse. The person may feel resentful for a while, but at least the chances of further complications are reduced and you yourself will not have to face any monetary crisis at the last minute. Refusal to lend money is better than you ending up with a loan of your own.

Even if you can afford it, check out how much of it can you give without compromising your own well-being. You don’t know when an emergency strikes and if you have $1000 in savings don’t give away the entire amount. Tell the person that you can lend $500 only. According to experts, you should always loan money with the thought that it may never be returned. This way, you don’t face any difficulty.

What is the Loan for?

Never, ever, make the mistake of lending money to someone who is a habitual borrower. They will discover that you are ok with giving away money and will constantly bug you for more. Hence, ask them what they need the money for. Is it possible that they have gotten involved in something like gambling or drugs? If yes, then the worst thing that you can do is lend them the sum they ask for. Instead, try to get them the help they need.

But the money could be for a sick loved one and if this is something you can help out with, you moist certainly should. Just make sure you ask to see the loved one and pay yourself so that the money is properly utilized.

Can the Person Pay Back?

If yes and the situation has happened before, then you can easily lend the money without much worry. If you know for a fact that they won’t be able to pay back then either don’t lend the money or give it away without expectation of return.

If the person has ever lent you some money in the past, make sure you try to help them out the best way you can. Trust your gut instinct here and even if the person is unable to pay back, let the issue go.

The end decision is always yours. Just be very careful when you lend money to anyone.…

The Top 3 Excuses for not Starting a Personal Budget

The Top 3 Excuses for not Starting a Personal Budget

Most people think that why they should note down how much they spend and add up their expenses each month when they already know they are going to spend all of their income anyway. Well, the whole purpose of having a personal budget is to keep your monthly finances from completely draining out. You probably be living from paycheck to paycheck right now, and feel that you don’t need to maintain a budget. But think about when that paycheck won’t be enough to cover for an unexpected emergency situation, or worse when it is time for you to retire,, but you can’t because you have nothing saved up to support you in that age.

Having a personal budgeting is essential for living a decent life in today’s day and age. But a lot of people make excuses just to deny that they don’t need a budget in their life. Here are some of the most common excuses that people make:

1.   “It takes up too much of my time.”

So according to these people, freeing up 5 minutes a day and 35 minutes a week for maintaining a budget is too much for them. You might be a very busy person, but think of the time when you need some extra cash in an emergency situation, and you have nothing but your paycheck to rely on. There are so many great apps that enable people to budget with just a few taps on their smartphone. They don’t even have to especially open their laptops and PCs for this purpose now, thanks to the advanced technology.

2.   “I don’t need a budget. I keep track of income and expenses in my head.”

These people must be some kind of genius, as keeping track of so many expenses for over 30 days a month is not something a normal human being can do. An average Joe has a long list of expenses, such as groceries, utility bills, daily food expenses, car expenses like fuel, repair and maintenance, clothes, house cleaning, mortgage, cable, loan payments, auto insurance, health insurance, rent, taxes, credit card payment, and cell phone bills, to name a few.

On the other hand, having a personal budget makes having a general overview of your monthly expenses very easy. If you think writing it down is hard, you can use a budgeting software or app.

3.   “My income isn’t enough for me to maintain a budget.”

Well, this makes it even more important to have a budget. With it, you will be able to know where your money is going and where you can cut back to save for a rainy day. In addition, you will be surprised to see that within a short time, you will be able to afford most of the things that you only dreamt of buying. Not only that, if are able to save enough, you can plan for early retirement, or better yet, financial independence.

There are countless benefits of having a personal budget. All you need to do is take the first step, and within just a few months, you will be surprised to see how much have saved for yourself.…

The Competencies and the Characteristics of a Finance Professional

The Competencies and the Characteristics of a Finance Professional

The field of finance requires a very strong and powerful set of structured disciplines and competencies. Among the many critical skills that the finance professionals need to possess, they also need to ensure that the financial records and data are accurate and available for proper understanding of performance of a particular business.

These professionals also need to make sure that cash is easily available for running a business and ensures that the business complies with the regulatory requirements.

Finance might not be something very attractive within an organization but it is something that is very critical. It is to be understood that there is a direct connection between the proper finances of a company and the success of a company.

Therefore, it is always important for companies to hire good quality finance professionals who can solve all the finance related problems of the company. There are some key factors that need to be considered when hiring finance professionals and these factors have been discussed below.

The finance professional chosen to work within a company should possess a clear understanding of the business.

He or she should possess specific accomplishments that they can use for influencing the business in the positive manner. In other words, the candidate must possess sufficient level of experience needed for serving as a financial professional. It is also important for the business personality and philosophy of the professional to suit the personality and the philosophy of the organization.
Finance professionals or experts should possess skills in relation to the financial position that they like to serve. Financial professionals should possess sound knowledge of accounting principles. He or she must also be able to the financial statements of the customers for establishing credit limits. The candidates willing to serve as finance professionals need to have a clear understanding of the rules that need to be followed in this part of the industry. Depending on the position of the professional, there might be some specific technical skills that might also be important to be possessed by the professional.

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Finance professionals working within different organizations also need to carry out the job of financial analysis. This involves working with a good amount of data. Therefore, it is important for finance professionals to have the ability of determining the metrics which are important for business. They must have the capability of identifying the most critical elements or factors influencing the company or the business. Finance professionals should also be able to interpret financial results and communicate proper information to the nonfinancial associates.

Finance specialists must possess the ability of reporting accounts and data in an accurate and timely manner. They must take the ownership of correctness of financial information. They must carry out the reviewing procedures involved in identifying opportunities and compiling data in the most professional manner.
Apart from the above mentioned skills, there are some other key characteristics that the finance experts should possess and they are confidence, integrity, team player, communication skills, ability of executing and love for people.…