Use Emotional Intelligence to Get Out of Debt

We all know what Intelligence Quotient (IQ) is, but have you been hearing the buzz lately about Emotional Quotient (EQ)? Well, if you haven't, then I'll start with a basic definition from Psychology Today:

What Is Emotional Intelligence?

Emotional intelligence is the ability to identify and manage your own emotions and the emotions of others. It is generally said to include 3 skills:
  1. Emotional awareness, including the ability to identify your own emotions and those of others;
  2. The ability to harness emotions and apply them to tasks like thinking and problems solving;
  3. The ability to manage emotions, including the ability to regulate your own emotions, and the ability to cheer up or calm down another person
In achieving financial freedom from debt, we can apply the same skills in sustaining our long term goals, or even short cutting the time and effort involved by finding the best possible solution for our particular concerns.
So, what does getting a hold of our emotions have to do with getting out of debt? Great Question and one that I looked at from a money making standpoint. In a recent article by Inc. magazine entitled, 12 Habits That Set Ultra Successful People Apart. The highlight of this article was a discussion on how the ultra successful people use EQ to get stuff done and you can too.
Here are some key tools to help you get out of debt:
  • Keep your composer by monitoring your emotions and what it feels like to have this much debt that you cannot manage. Remember that no matter what, this too shall pass. Focus on the outcome rather than the present mess, to carry you through.
  • Get informed and be knowledgeable. When you are constantly working on yourself to increase your own self awareness about how you earn, manage, and grow financially because you're passionate about it, then, you're ready to get out of debt completely. Gather all the information you need to make a well-informed decision for yourself.
  • Take your time and be deliberate in your decisions. Impulsiveness may have gotten you into financial trouble, but financial freedom from debt requires you to slow down and logically think through the problem.
  • Get a small victory under your belt quickly. Whether it is to contact your professionals for consultations, like your CPA or accountant, if you need tax advice; or a bankruptcy lawyer to consult about bankruptcy options to get out of debt.
  • Be Fearless and Graceful. Fear is imagination run wild. Fear is also what keeps many in the position of indecision and never make a move. Grab fear by the horns and be graceful, which is to be both strong and gentle at the same time.
  • Be gentle and kind on yourself first, for getting into debt and be strong enough to face fear, head on and get out of debt by the cheaper, better and faster way, for you.
I believe that money is a matter of the heart. I believe that the way out of debt is through our emotions. I believe that anyone can move out from a mountain of debt quickly when they unite their head and their heart together, as a team. It's a simple shift from guilt and shame, to freedom and joy.

Accounting Outsourcing Services For Small Businesses

Accounting is part and parcel of all the activities related to running a business. It is an important yardstick by which you can measure if your business has performed well. Small business accounting, in particular, is very important, because it gives small business owners an idea of where they stand, what costs need to be controlled, having an eye of day to day expenses etc. In essence, proper accounting helps a small business owner to manage and record his finances in a better way. If you are still wondering as to how and why accounting is important for your business, read below:

Good source for external financing

If you are a small business owner and want to expand your business, you would obviously approach banks and other financial institutions for loans. Proper accounting practices help you a great deal here. If you have managed and recorded your accounts properly, it gives credibility to your business and fetches you quicker loans. In the absence of proper accounting procedures, your reputation is at stake.

Tax savings

If you have strictly followed all the small business accounting procedures, it becomes easy for you at the time of tax payments. You can prepare your tax returns and file them easily because you can easily calculate your income, expenses and other investments from your books of accounts. If you have not maintained proper accounting procedures and not recorded your day-day expenses correctly, it could result in incorrect tax payments and unnecessary confusions for you.

Tracking growth

If you want to know how far you have come from where you started off, maintaining proper accounts is the only guiding factor for you. When you trace your income and expenses over a particular period, you will know whether your business is running at a profit or loss. Therefore preparing the final accounts properly will help you to decide whether it is really worth continuing your business or not.

Time savings

If you don't have the time or the expertise to do small business accounting, try outsourcing the operations to an outsourcing agency that specializes in this field. This agency has the resources, expertise, experience and technology to manage your accounts in a timely manner, thereby giving you immense relief. When meticulous accounting is done by these professional agencies, you will be able to run your business properly, pay taxes on time and overall have a healthy control on your business.

Reasons That Make Invoice Factoring a Better Financing Option

Preparation is a key aspect of every successful venture. Agreeing to it, as the businesses bloom from a bud to a beautiful flower, they often face the need of extra funding for various purposes. There are a plenty of reasons like expansion, marketing purposes, meeting payroll or other miscellaneous expenses, however, all these requirements instigate the need of extra funds for which opt for various financial services.

There is a range of options available for companies to source extra funds from outside, some of which are conventional while others are contemporary. In the recent times, the concept of invoice factoring has gained immense attention because of its wide array of benefits that surely makes it the most lucrative option. Following here are certain reasons that surely indicates that invoice factoring is the most beneficial form of external business financing.

Rapid Liquidity

Very similar to debt trading, which mainly occurs while dealing with finance companies, banks and investors, invoice factoring generates immediate cash for businesses seeking an alternative to the traditional bank lending. Availability of required capital is immediate in comparison to application of credit to banks for small business loans, which assures coverage of the expenses such as payroll, equipment, rent and utilities.

Competitive Rates

By trading the invoices to the factoring company, the entrepreneurs get the opportunity to sustain their short-term business financial obligations. Alike traditional commercial bank financing, the rate terms of invoice factoring differs depending on which specifications of the chosen company.

Personalized Search Help

With the invoice factoring industry, there are both consultants and companies that offer the bidding forums and services related to private search on basis of specific business requirements. With a number of factors to choose from, companies looking for the most lucrative deal for invoice factoring might find the need of brief researching, which in general, is quite daunting for the small business owners. However, with the help of a B2B broker or a good consultant, the companies can surely cut the chase.

Operational Maintenance during the Phase of Billing Cycle Drought

This particularly relates to management of accounts during the delay of a billing cycle. The process of invoice factoring provides cash for expenditure, which might otherwise compel the owner to opt for a sale of the business or its temporary or permanent closure. Serving as a secondary supply of commercial financing, factoring helps struggling companies to stay afloat in times of poor performance or late payments by creditors or other payers.

Balance Sheet Stability

Factoring does not typically show up on balance sheet of the company as debt. The accounts receivable factoring is a workable option for ensuring that the balance sheet remains on target. The concept of cash flow is a complex mechanism to make sure that the business is capable of resolving the accounting expenditure in a standard fashion.

It is true that each option comes with certain inconsistencies and generally, nothing is perfect. However, for companies with the urge to source business funds from outside and considering the various options like Small Business Loans, financial institutions and many more, this method lets them get funds with ease and augment their business like never before.

Four Tips to Visit Car Dealers Like a Pro

Shopping for a new car does not have to become and overwhelming experience. Use the four tips to get the most out of your experience.

1. Know what you are looking for.

Start by asking yourself why you are buying a car. This may seem like a no brainier, but truly think about what you use your vehicle for currently, and what you may use it for in the future. Do you travel long distances frequently? Do you plan on starting your own business in the near future? Do you plan on starting a family? Doing more outdoor activities? By considering what you will be using your automobile for in the next couple years, you can make a selection that includes features best suited to fit your lifestyle. It's important to avoid buying a vehicle solely because you like the style if it does not also meet your current or future needs.

2. Do your research.

Once you have decided which car you like, read reviews and do some research on the value. It is important that you know what you should pay for the vehicle you are looking at. What does a good price look like for both the new and used model? Most importantly, what is the average price other buyers have paid for the same vehicle? This will allow you to spot a good deal when you see it and avoid being overcharged when visiting car dealers.

3. Contact your local car dealers before you visit.

Check out your local dealerships' website, or call them to find out what their inventory contains. Narrow your list of dealers to visit to those that carry the model you are looking for. Then, find out which car dealers have the best price on the automobile you want. You can ask over the phone, or send an email asking what their best price is. Let them know you are intent on buying and that you are doing some comparison-shopping between dealerships. They all want your business, so by making them compete you can potentially lower the price. Also, find out if they are running any specials, and read the customer reviews of the dealership.

4. Know how to get the best deal.

There is always room to negotiate on the price of the car, the interest rate, and on the monthly payments. Make sure that you know your credit score before you buy, that way the car dealers cannot tell you that your credit score does not qualify you for a lower rate. You can also consider getting financed by a bank or another lender, rather than taking the in-house financing from the dealership. Find out if you can get pre-approved for an auto loan from an outside lender, and what the interest rate would be. That way, if a dealer offers an interest rate of say, 7%, but the bank offers 5%, you could save thousands over time by going with your outside financing. You can also use this as a tool to drive down interest rate before accepting the in-house financing.

Don't Run Out of Cash: Why More Businesses Are Opting for AR Financing

In the recent years, account receivable (AR) loans/financing have gained immense popularity. A fast way of arranging money for operational purposes or expanding businesses, several firms are turning towards AR financing. This method provides fast cash while also ensuring that a business's financial profile appears in a good light. The benefits of account receivable financing options don't end here, read the below points to know how AR loans can save a business from witnessing a doom's day scenario of running out of cash!

1. Quick financial help: The principal benefit of AR financing is that it offers an organization the opportunity of procuring monetary aid from a commercial finance company in order to immediately meet the pending production or operational expenses. Unlike loans that are rendered by banks, AR loans do not require months to be sanctioned and the proprietor can get working capital against his credit sales.

2. It is a credible way of expanding your firm: Unlike short term internet loans that give a small loan and take repayment on a daily basis, AR financing is a traditional form of financing that truly grows with your business and has proven itself as a credible form of support for large and small businesses. As you pay your bills and payments on time with the extra cash flow the AR financing provides, your credit rating in the market improves, instilling trust in your stakeholders. With a remarkable record in the market, you can expect your clientele list to increase soon.

3. The sole proprietor remains with you: If you are taking aid of venture capital, you might be relinquishing your equity, which is certainly not the case with obtaining account receivable financing. Neither you share the decision making power nor your venture. You still remain the primary decision maker. Funding through venture capital mean surrendering your claim to a certain percentage and losing control over your business's operations.

4. It lets you focus on the bigger picture: With sufficient money being available at your disposable to meet all immediate expenses, you can thoroughly focus on your future plans of either extending your product line or capturing new locations. You can work with complete peace of mind, concentrating entirely on the performance and productivity of your venture instead of worrying about financial issues.

AR financing option can be explored by businesses of all levels; whether you are mid-size company or a well-established name in the market, you just have to locate an experienced commercial lender or factoring company that has been well established and can provide your business the flexibility it needs. The details of your AR financing can be all worked out once you have found the right company.

Accounts receivable financing is one form of business loan for securing fast working capital. This pro-business loan uses your company's accounts receivable as collateral. By selling outstanding invoices at a discount factoring company or AR financing company will be able to provide your business with immediate cash flow.

How to Finance a Small Business With Ease

Thinking of financing your small business? Need tips? Why not read this article and avail yourself to some basic guidelines & principles that will help you carry out the complete with ease!

Believe it or not, financing is one of the most intimidating and challenging tasks to carry out when it comes to escalating your business!

Whenever you start a new business, it is important that you put together a few strategies that can help you secure the financial assistance, which plays a great part when it comes to running your business successfully. Once you find the right lender or investor to help you get your funds approved, you must identify your business needs and find the right solutions in order to take your business to the next phase.

A few steps that need to be done when it comes to financing your start-up business.

Step #1: Personal Savings

Personal savings play a great part when it comes to starting a new business. It is important that you put in your personal contribution first and then move on to the next big step, i.e. 'taking loan from a bank' or 'lending money from lenders or investors'. If in case you're not willing to put in your own money first because of your financial condition or whatever the reason is, you must take advice from your family members, friends or office colleagues in order to find an ideal finance solution to deal with all your needs.

Step #2: Identify all your needs

If you're about to finance your start-up company, the first thing you must do is identify all your essential needs and make the necessary strategies to fulfill all those requirements. Also, you must think about sustaining your business in terms of both supplies and equipment.

Step #3: Explore your options

When it comes to finding a right source for borrowing money, there are plenty of options to choose from which include commercial banks, credit unions, commercial finance companies, and more. Also, you can approach different business capital firms or make partnerships in order to finance your business effectively. No matter what choice you make, it is important that you learn as much as you can about the basic steps that are involved in the process of taking loan from a government /private firm or a person.

Step #4: Create a business plan and then execute it meticulously

Once you've carried out all the above written steps, then comes the turn to create an effective business plan. This includes understanding your intentions on how to finance your business, how to expand it, determine what exactly you want to achieve through your trade, how to meet the specific goals, determine the financial objectives, and much more.

Steps To A Wealthy Mindset

1. Redefine What Wealth Means for You.

Being "rich" simply is a term for many people. Technically, wealth or being wealthy is defined as having an abundance of resources or possessions. The high life does not equal wealth. Having a gigantic mortgage for a beautiful home or a huge car payment does not equal wealth.

Are status symbols your end goal? Does wealth for you mean that ability not to worry about bills or how much is left in your checking account at the end of the month? Does it mean providing comfortably for your family or being free from financial worry?

Does it mean the ability to afford luxury designer goods or getting a membership to the local country club? Being rich or being wealthy can also mean you enjoy a comfortable retirement. Maybe to you wealth means something totally different.

Your definition of wealth goes a long way towards setting your goals.

2. Learn To Hold Off Gratification

In today's culture everyone expects instant gratification, we all wants things NOW NOW NOW.

However, a wealthy person knows how to delay gratification and sacrifice the now for later. This often comes with a positive attitude towards work and wealth, such as: "If I invest now, I will make 30% more later."

The wealthy do not only think of now, they plan for the future. Long-term thinking over short-term. The present is merely an opportunity.

Change your mentality about spending. Do you really have to have that (place object here) now? The truly rich hold off gratification, knowing that what is trendy, popular or a must have today may not last until tomorrow.

3. Learn the difference between having a high income and being truly wealthy.

High incomes do not necessarily mean that you are rich, especially if this income comes from only one source.

The myth persists that you can only be truly wealthy if you come into family money or are born into a home of silver spoons, silk sheets and antique furniture. Continue to believe in this myth, and you still have the mindset of the broke.

Most people also believe that a high income job is the end-all of their problems and work their butts off to get to a position that pays in five or six digits but end up baffled at how little they have by the time retirement rolls around.

For example, the average high level manager earns $200,000 a year, with benefits but stands to lose that income in the event of layoffs or illness.

Although his income earning potential is high, it only comes from one source.

Contrast that with a middle level manager earning $50,000 a year. This middle manager, however, rents out properties in the city for another $500,000 and reaps dividends from stocks and bonds for another $100,000 a year. In the event of illness, death or mass layoffs, half of his earning potential is still secure.

The source of the latter's income is also easily passed on to future generations, securing wealth for the middle level manager's family.

4. If you're starting a business know when to hold off, reassess and quit.

Investors will say no to your idea, but not all of them.

Those with a poor mindset go to the bank for a loan, get rejected and never think about their idea or opportunity again. The wealthy mindset goes to the bank for a loan, gets rejected, redrafts the proposal and returns to get the approval.

The poor mindset goes into business not knowing the risks of the deal and is baffled when the fallout occurs. The wealthy mindset goes into a deal, knows the risk and gets out if things are going bad.

Always follow your gut and do your research. Know when to back off from risky or unethical deals will not only take your money but have effects of your freedom.

5. Use Your Subconscious to Manifest Your Financial Destiny

The wealthy know that before you can be physically wealthy, your mind must be thinking wealthy too.

Create dream posters by cutting out pictures of your dream status or quotes that inspire you.

Never underestimate the power of your will and mind.

Wealthy people never say they cannot do it, they think of ways so that they can. Instead of thinking "I can't afford that", think to yourself "HOW can I afford that?"

Write down 10 things you want when you're wealthy every morning right after you wake up. The key part is to write them in the present tense, "I have... ".

The act of physically writing this list and seeing your dreams in black and white will engrave your desires into your subconscious and motivate you to take action towards them every day.

The truly wealthy consider their mind as the foremost asset. They also tend to invest in their mind, especially when it comes to education. Visualize yourself to be the millionaire, entrepreneur and successful person you want to be.
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