Money Questions and Answers

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

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.

Coming To Grips With Paying Your Rent On Time

by Guest Contributor

Whether you have recently left home or full time education or your circumstances have changed, taking responsibility for paying your rent on your own can be a daunting prospect. Probably your most important outgoing will be your rent cheque, be that owed to a property management company, a private individual, local authority or a relative.

Paying your rent and in line with your contractual obligation takes some organization. For even more practical and clear advice on subjects ranging from universal credit to where to get help if you fall behind with your payments, visit the Money Advice Service.

Paying Your Rent On Time

Below is a list of things to consider for making sure pay your rent on time to your landlord.

Direct Debit

Renting a property and moving on in involves making important obligations to your new landlord. You will be bound to pay your rent on time and usually in full, unless your agreement has more flexible terms.

Scheduling your rent payment by direct debit is one way to minimize the risk of missing your payment date. Missed payments can lead to losing your deposit or even eviction.

By setting up a standing order from your personal bank account or from a joint account with your partner straight to your landlord’s designated account, you minimize the risk of riling your landlord or worse. And, it will help you in paying your rent on time every month.

Don’t Take The Main Road With Your Finances

by Guest Contributor

Don’t take the main road in finance: try these tips

By Paul Watson

There you are, your business plan in hand and the bank manager’s office before you. You can feel the sweat dripping from your forehead as that suited, booted, Gordon Gecko-esque manager opens his door and says, “Come in, then. Let’s hear why I should give you a loan”.

You sit opposite his plush glass desk, distracted by the clang of the Newton’s cradle atop it, as you recite you’re your wildest business dreams to him. The bank manager stares at his watch for a bit, yawns, looks dreamily out the window and toys with his Newton’s cradle. Once you’ve finished, he simply says no, and pushes you out the door with all the dismissiveness of an irritable geography teacher.

Trudging through the rain to your struggling business, you can’t help but wonder, Why me?

Yours is a story that thousands of business owners suffer every year. Indeed, national newspaper The Daily Mail claims that more than 43 per cent of small businesses are rejected for loans.

But there are alternatives. Here are just a few.

Find the niche lenders

Lenders that specialize in your field are usually your best bet, understanding your niche market more fully than the big banks.

Why Cash Flow Improves With Efficient Invoicing

by Guest Contributor

A small business owners’ invoicing process seems like a minute detail in the grand scheme of your business. After all, that small business owner is focused on innovating, selling product and growing his or her business.

But improving an invoicing process — that part of the business that allows a small business owner to get paid — can actually improve your cash flow, allowing the business owner to grow the business. It’ll also save some headaches along the way.

Here are a few tips and tricks to making the invoicing process more efficient.

Understanding Invoicing

Most small business owners didn’t start out as business owners. It’s likely that they started as an employee for someone else in a position that paid them on a regular basis. As long as they were doing their job, they never had to worry where and when their next paycheck would come from.

The small business owner, however, is the one that has to make sure his or her employees have that same peace of mind. It’s not always that easy.