Guest Contributor on Money Questions and Answers Blog

When To Hire A Collection Agency For Nonpayment

The ideal business world would have perfect mathematical precision especially when it comes to small business invoicing. In all likelihood, invoices will be paid on time. But, the day may come that one goes unpaid.

What do you do? How to do you approach the person or entity that owes you money?

The best thing to do is initiate formal communication, in writing, with a demand letter. This can be best drafted by your attorney, but you can likely handle it yourself if you haven’t one. A simple search will show you good examples of this kind of letter.

While this letter doesn’t have any legal “weight” in the sense that the other party is any more obligated to pay their outstanding debt than before, it may be enough to get a certain kind of debtor to pay up. One or several letters does succeed in letting you set the tone for what is to come. The other party will know where you stand and will be much likelier to take you seriously.

If you set up the right kind of contract with the other party in the first place, there will be a clause in place about litigation. If they default, basically, they will have to pay your court and legal fees, in addition to their own, in the event that you sue. That’s a lot of money to avoid paying back money, so many lendees will back down at this point, settling with you out of court. This is the sensible thing to do anyway, and you never know how a party will react.

If you don’t have this kind of legal recourse, you’ll do well to hire a lawyer who specializes in small business cases, or hire a collection agency. There are different kinds of collection agencies, ones that buy your debt from you and others that coerce the other party into servicing their debt, and then taking their fee from that amount. Know all of the details before you bring one of these on board.

The Pros and Cons of Trading Forex

by Guest Contributor

Every good investor knows that before you take on a new investment, you need to weigh your options carefully. It isn’t enough to just do good research on the market. You really need to make an active decision about whether the foreign exchange market for currency is right for you. To help you make that decision, consider these important points.

Understand That You Are Speculating When Trading Forex

In a sense, you are selling one currency against another and betting that the currency you buy is going to increase in value while you hold it so that you can sell it for a profit. That’s the basic principle. But that means one of two things.

Either you have to have a watchful eye on your investments and pay close attention to the markets as they move, or you need to become familiar with the stop loss order so that you don’t lose more than you bargained for in the end. If you do not understand the risk associated with Forex trading and only focus on the potential payout, you are making a grave mistake.

Cost Cutting Classroom: Supplies, Software, and Tax Tips for Teachers

by Guest Contributor

Being a teacher is incredibly rewarding, but it costs when it comes to supplies and in-class needs. School systems watch their dollars and cents closely, and so teachers get left needing to cut corners to provide the same amount of efficiency.

Supplies, software, and taxes don’t have to amount to as much when you know how to cut costs. Get smart and learn how to avoid full price and empty wallets.

Here are supplies, software, and tax tips for teachers…

Keep Track

Saving can be as simple as keeping track of expenses and out of pocket buys for your classroom and students. Speak to other teachers, your principal, or financial planner about tracking costs and filing for reimbursements at the end of the quarter or year.

Consider Claiming a Home Office

If you qualify, you can claim a portion of your home as an office. Those who tutor after school, at night, and on weekends may qualify as a ‘business’ owner, saving on taxes. It may even create a greater incentive to spend more time making a supplemental income!

Track Mileage

Expenses are not books and supplies alone. If you coach or manage a school-affiliated team and use your own vehicle, you can get compensated for gas and vehicle maintenance. It’s small savings if you live in the same town as the school, but if you live over twenty miles and go to and from multiple times per day, the mileage and stress on your car adds up.

Why Now Is The Time To Close Your Account At The Bank Of Mom And Dad

by Guest Contributor

If you are in your teens or early twenties, you know that Mom and Dad won’t be there to provide for you forever. You may be just starting to earn your own money from odd jobs and be a long way off from achieving a full financial independence from your parents, but you can start with not asking them for money every time you want to go out with your friends. If you want to go for a drive around town, fill up the car with your own money, or walk instead. It’s time to start standing up on your own, beginning with closing your account at the Bank of Mom and Dad.

Financial dependence and today’s generation

More and more young adults are having difficulty becoming financially independent from their parents, not because of the lack of motivation but because of a number of factors such as poor job prospects and the escalating costs of education. Some young people also have a poor understanding of basic finance and lack budgeting skills, as they have become used to their parents handing them money for every need or want.

And while parents may have taught their children the value of money and the basics of budgeting, young adults may still have a difficult time going out on their own into the “real world,” considering the state of the economy and rising prices of rent and utilities.

Hand-outs from parents

Parents, caring as they are, would still insist on handing their young ones a little bit of extra cash, especially when they see their children struggling with the independent life. Ideally young adults should be responsible for all their personal expenses on their own and not receive monthly stipends from parents, but in real life that seldom happens.

For instance, you may already have a decent job but your income does not seem to cover the monthly rent, your food, and other things you spend on. Is your income really the problem, or your spending?

Don’t Get Caught Out Without A Backup Plan

by Guest Contributor

On more than one occasion in 2014 news headlines have contained two words that – when used together – send a shiver down the spine of every airline boss and traveller, both of the business and leisure variety. Those words are “Iceland” and “volcano”. Should the worst case scenario arise, make sure you and your staff have a reliable travel money card and a backup plan to support them in the event of a potential stranding.

Eyjafjallajokull Volcano in Iceland

Anyone who recalls the events of April 2010 will be well aware that the scenario proposed is not one that affects Iceland alone and that you need a backup plan. When the country’s Eyjafjallajokull volcano erupted it spewed millions of cubic meters of ash into the skies over northern Europe.

Barely visible to the naked eye from ground level, these ash particles are no less a major hazard to aircraft. Circulating in the atmosphere in such a heavy concentration they can both affect visibility and cause damage to engines.

When the risk became apparent, a zone in which airspace was closed crept down across the continent. In the UK, Scotland alone was cut off first – meaning travelers on regular shuttle services such as London to Edinburgh had to make alternative arrangements… all because of a natural phenomenon taking place nearly 1,000 miles from the Scottish capital. As the ash travelled, so the airspace restrictions increased to a point that air travel across most of the continent was cancelled.

You Need a Backup Plan

The thing is this was not a once in a lifetime occurrence – such circumstances could very likely occur again, and indeed there have already been a few scares since 2010. Responsible companies who rely on air travel for any part of their business should make preparations for such a scenario unfolding in future.

Trade Forex: A Decidedly Directional Strategy for Success

by Guest Contributor

“The trend is your friend.” You’ve heard that before, right? When you trade forex, many traders live and die by that rule. There’s a reason why. Trend following is a major trading strategy employed by even expert traders. But, it’s not the only trading strategy or methodology out there. Forex is primarily a directional-driven market where traders must decide how they will exploit movements in the market. A static or “sideways” market is nobody’s friend.

At the same time, directional trading can easily turn against even the most experienced trader. These trading strategies exploit small movements in currency pairs. If the trader is correct, he wins money. If he’s wrong, the losses could be catastrophic. It’s a high-stakes game. If you’re ready to play, here are the major sub-strategies that will get you off the ground.

Trend Following When You Trade Forex

The idea of trend-trading or trend-following is that an established trend will continue in the same direction rather than reverse course. The strategy uses technical analysis to try to spot trends or patterns in the market, and then it exploits those patterns for profit. It’s a form of data mining and analysis. To trade on a trend, you can either trade in a general direction with unlimited upside potential or trade within a range.

For example, a general trend-trading strategy might have you find a trend and then take a long or short position on it. You may then place your stop loss at a conservative point given the volatility of the market.

Trading within a range means that you attempt to find a pattern of movement within the daily trend and then enter and exit within that range. So, you profit on the daily oscillations of the market, rather than a long-term trend that lasts either all day in one direction or multiple days.