Personal Finance Blog

Tips And Stories To Help You With Managing Money

Entrepreneurs On The Rise

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It is a survey finding that surprised even the experts. Since 1996, entrepreneurs in the 55-64-year-old age group have initiated more new businesses every year than those in the 20-34 age range.

Dane Stangler, senior analyst for the Marion Kauffman Foundation located in Kansas City, Mo., which conducted the survey, said its results were surprising even to him. They shatter the stereotype of the young college graduate (or dropout: Bill Gates of Microsoft, Mark Zuckerburg of Facebook) as the expected founder of a new business. The involvement of baby boomers who should logically be considering retirement instead of new ventures is a growing trend, Stangler said. The number of Baby-Boomer entrepreneurs continues to rise over the younger age groups each year. The foundation’s research was reported in an AARP publication.

The reasons for the phenomenon are, of course, multiple and complex. For one thing, Americans are living longer and more healthfully. Full retirement at the usual age isn’t appealing to many who have spent their normal career years cultivating skills that can be transferred to a business they control themselves.

The AARP article points to Doug Wolf, a man in his 50’s who had spent his career years in the medical field, working at hospitals as an MRI or CT technologist. When he tired of the job, he determined, despite a bad economy, to strike out on his own. He started, wisely, by researching franchises he felt would work for him. He paused for awhile over the possibility of opening a bird feed store, but ultimately opted for a carpet cleaning business. Among the reasons: carpet cleaning is a useful service; it is year-round and indoors. So despite discouragement by some of his family, he stepped out and joined the ranks of middle-aged first-time business owners.

The franchise of choice for the 21st Century seems to be a home-based, computer-supported business. Multi millionaires such as Donald Trump, Robert Kiyosaki and Warren Buffet, all are involved to some degree with businesses like this.

From the entrepreneur’s standpoint, the advantages are obvious. What other business offers — for an initial investment in the neighborhood of $500 — the lure of low overhead (you probably have no additional housing expenses for the business beyond your own home) no need for expensive advertising and the prospects of unlimited growth, which translates into unlimited wealth.

Those who have already succeeded are proof-positive that age doesn’t need to be a factor if you have the desire.

Personal Finance Software Reviews

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Managing money has always been an issue for individuals and businesses and today’s rapidly evolving economy makes individual planning even more complex. Two of the earliest and most popular software programs for managing personal finances are Microsoft Money and Quicken, but today there are literally hundreds from which to choose. Thus, selecting the “best” has never been more difficult.

Asking people to choose the “best” of anything, however, is a relative question, that is, the advantages and drawbacks are usually more a matter of individual preference. With that in mind, let us look first at the factors that make up the choice of “best.”

Price – It is just not possible to avoid a consideration of price. Consumers want the greatest value for their money. Sometimes price is based on added perks in the software and sometimes not. Wise or not, price often is the single greatest factor in a buying decision, so it must be considered.

Simplicity – The single biggest reason many do not like Quicken is because it is somewhat difficult to learn and use. The same argument was often heard regarding Microsoft Money. Many consumers want as simple a user interface as possible, whereas others may prefer…

More Choices – Some will sacrifice simplicity to obtain multiple applications for the handling of more obscure personal finance situations.

Flexibility – Similar to more choice, a flexible software package will allow a user more options for controlling the parameters of their personal finance situation

Reliability – One of the possible reasons for the demise of Microsoft money that has been offered by onlookers is reliability. Microsoft ceased selling Money on the claim that there was too little a demand for the program. Perhaps this is the reason. Consumers want solutions that can be relied upon to do what they want, when they want.

Choices?

With these five factors in mind, let us now look at some of the better software choices available today.

Budgetpulse

Free, simple, but internationally compatible, what this software lacks in complexity, it makes up for in ease of use, and of course, price.

Buxfer

What started as simple has grown rather complex; this software however, makes up for that by allowing the importation of data directly from finance accounts such as banks and credit card systems. In addition, it now has an iPhone app. Also free.

Mint

Many claim that mint has the largest number of online clients and this claim appears to have considerable basis in fact. The Alexa traffic rating for this site is around 2000, which places traffic in the millions daily. They must be doing something right. It too, is free.

Quicken

Still a favorite of millions, the price of this hard-line program for your personal computer remains a low $39.95. It continues to be easy-to-use, comprehensive, and secure.

AceMoney

Simple and comprehensive, this award-winning personal finance software is a favorite of millions. At only $39.95, this one gives Quicken stiff competition.

YNAB

Which means, You Need A Budget, is a small software company run by a husband wife team from Utah. The price tends to frighten some away ($60.00), but for a smaller, rather young software company, this one makes a pretty good product. Big plus? One platform is compatible with any operating system.

When choosing the “best” personal finance software for you, write down what you consider to be most important, flexibility versus complexity, price versus value, simplicity or complete? Once you know those factors it’ll be far easier to settle on which software is right for you.

Written By: Sam Mauz

Sam Mauz is a blogger who enjoys writing about personal finance. When not blogging about personal finance or working for Wonga.com, Sam can be found soaking up rays on the hiking trails of Arizona.

Managing Debt

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How proper budgeting can help you contain debts?

Keeping a proper budget is very important in personal finance. It can help you prosper financially and achieve financial goals. Importantly, through maintaining a proper budget, you can get relief from debt. Here we discuss about some budgeting tips, by following these tips you can reach your financial goals.

Use credit cards wisely

One of the prime causes of personal debt woes is of course the unwise and imprudent use of credit cards. It is a very common trend in the country that many of you take out multiple credit cards and use those cards recklessly. Inadvertently, this often results into debt woes. In order to avoid this, it is recommended that you must use credit cards wisely and with discretion. However, this is not to say that you avoid using credit cards completely. Rather, it is recommended that while using credit cards, you must be very rational.

Put in place an emergency fund

Another important budgeting tip would be to build up an emergency fund so as to meet any unintended contingency. Various emergency cases may occur at any time and these can result into huge monetary loss. Natural disasters or sudden emergency cases may result into huge financial loss. If you have an emergency fund in place, you can contain all these unintended contingencies. In order to build up an emergency fund, you need to save something on a regular basis.

Examine your expenses

Another important budgeting tip would be to analyze your expenses. First of all, you need to carefully examine the expenses that you make. You need to see your items of expenses and see how much you spend on each of these items. This will help you identify the items on which you are spending more than actually required. The next step would be to prepare a realistic budget or to allocate money on each of these items. Thereafter, you need to ensure that you do not spend beyond your limits. You need to do this on a regular basis. This will help you a lot to save a lot of money.

Curb instinctive purchases

One common thing that often creates a big hole in your pocket is your impulsive purchases. Sometimes, it is seen that, you can’t control yourself and engage in tempting purchases. In order to contain this habit, it is recommended that before visiting a shopping mall, you must decide what you will purchase and the approximate amount that you will spend. You need to stick to your decision. This will in turn help you save a lot of money.

5 Essential Tips For Small Business Startups

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life-is-crap-business-tipsAny small business starts with a good idea. But pampering it along until the good idea bears fruit is tricky.

Paul Wheeler of Manchester, Vt., who with a partner made Life Is Crap a successful business that markets millions of dollars worth of merchandise, shares some pointers on how to negotiate the rapids of getting started until you come to more peaceful waters.

Tip #1 – Ask Experts For Assistance

Before you launch your small business, be absolutely certain you have your idea firmly in your grasp. False starts make expensive lessons. Focus on what it is you want to do. Research to learn what is available that will move you toward your goals. Find out what the competition is likely to be. Be certain before you begin that you and those you may be working with have the skills necessary to achieve your goals. If there seem to be gaps, look for advice. Communicate with others who have experience in the area you are looking at. There is much available just through a search of websites that represent people who have ideas similar to yours. Borrow from them, but be wary of such things as copyright, intellectual ownership and other legal realities that could land you in hot water. Many businessmen who are dealing with the same kinds of things you want to do are often willing to give you a little of their time. Ask. Wheeler advises that “The ability to recognize what you don’t know is first and foremost.”

“You don’t personally have to have expertise in everything,” he adds. “Look for the best help you can get.” In his case, that involved gathering a small group that represented artists (they sell clothing and other items printed with “Life is Crap” messages) and others with business and marketing experience, Their business is based on humor, so it was essential that the creative element share that sense of humor. If you find yourself mismatched with any of those you will be working with, remedy it sooner than later. Too many points of disagreement can be fatal to even the best ideas. When you are sure you have found the right combination, let others do their jobs. “Let them flourish,” Wheeler says.

Tip #2 – Be Consistent

Stay consistent. If you are discouraged too soon, your business will be affected. Look ahead to plot where you are going. Set achievable short-term goals and stay committed to them. Make adjustments when you need to, but don’t jump from one thing to another. “Do it without losing sight of the underpinnings of your business,” the Vermont small business owner advises.

Tip #3 – Have Faith That Things Will Work Out

Wheeler acknowledges that a bit of luck now and then helps. One of the new twists for “Life is Crap” involves putting designs on Life Is Crap checks. And that little venture was pure serendipity, he says. He was attending a trade show and chanced to meet someone in the check printing business. A little casual conversation and voila! But the key element here is that Wheeler was in a place and at a time when other creative people were gathered. Even serendipity needs a hand sometimes.

Tip #4 – Have Empathy For Your Customers and Employees

He lists a number of qualities that he believes will help people starting a business: Have empathy for employees and customers. Identify with people. Hone your analytical skills and if you feel you are lacking, find someone who can do the job for you. Be able to laugh at yourself. Learn to really listen to others. Recognize that they may have something important to offer. Cultivate humility and patience. Try to stay fresh and open to innovation because things change. .

Tip #5 – Love What You Do

Most of all, you “need to really love what you’re doing and come to understand it thoroughly. If you are ready to “work morning to night,” he says, “You’ll probably make it. But people who have great ideas go bankrupt every day.”

Higher Education One Of Victims of Bad Economy

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It has long been apparent that higher education has a direct correlation with what a person can expect to earn during his or her lifetime. But there is growing concern that the high cost of higher education may be nudging some young people out of the matrix. With the amount of their tuition checks constantly rising, the number of students borrowing to pay their college costs has doubled in the past decade, the College Board reports. The average cost of one-year tuition at a public four-year college is now $20,000, and at private non-profit schools, the average jumps to $35,000. Those numbers are lending themselves to a groundswell of discontent among young students who say they are being priced out of the prospects for the higher education they need to compete in today’s world.

One group of students recently expressed their concerns in a demonstration at New York University’s Washington Square. The group characterized themselves as “Casualties of Debt.” and their objective was to foster more understanding of their situation. Among the figures they tossed up for review: The amount of outstanding student loans in America surpassed credit card debt for the first time in August 2012. The indebtedness inevitably eats into the prospects of the better earning power they are trying to build, they complained. NYU, incidentally, leads the nation in student debt at $659 million and growing.

College tuition continued to rise even when other industries were cutting prices to accommodate a sluggish economy. During the 2008-09 school year, in-state tuition at public schools rose by 6.4 percent, while out-of-state tuition jumped by 5.2 percent. At private four-year universities the increase was 5.9 percent. College graduates are leaving school with major debt and, at this point in time, at least, moving into a depressed job market plagued by high unemployment, making the promise of increased earning power just empty promises for many of the graduates.

The New York demonstration, which was supported by MTV personality and filmmaker Andrew Jenks, may have had minimal impact, but it is an indicator of unrest among students and among those who would like to be students, but whose current personal finances don’t allow them to pursue the education that they are convinced would enhance their future earning power.