Separating Business From Your Personal Money

As a business proprietor, during my first few months of doing business, I used to spend the money of the business itself for my personal needs. Over time, I learned that that was a mistake for the following reasons.

1.     You Slow Down Business Growth

First of all, the money intended for the business was for the purchase of new equipment, the development of infrastructures, payrolls and investing in other businesses. Taking money from the business for personal use can slow down the business’ growth.

2.     Corruption

With you having no systematic way of getting money from your business or not even distinguishing different funds for different uses, your business is founded on confusion and corruption. When it does grow in a few years, it will be plagued by these two problems rooted ever since the business began.

3.     Bankruptcy

Eventually, with too much usage of business funds for personal use instead of business growth and expansion, you risk the business growing closer to declaring bankruptcy. Remember, businesses thrive on expanding profits and recovering capital. It doesn’t mean that once you regain your capital, you can use all the profits you get.

4.     Unworkable Business Reputation

I’ve experienced this during the first year of my business when it became expansive (but still a bit slow because I was taking business money for personal use). Most businesses that would like to partner up with you may withdraw their offers because you have an unworkable business reputation. An unsystematic and non-clockwork repertoire is not attractive to investors or possible business relationships.

How I Saved Up on Buying a New Laptop

With today’s economy, every man and woman must know how to cut their losses and maximize their gains or what they have. However, I maximized my laptop that it broke down last week. So much for maximizing, but still, everything wears and tears. So, with just enough money for a secondhand laptop but not so much a new one, I came up with a few ways how to get a new laptop, even the brand new ones, without having so much in expenses.

1.     Research

It is always important for me to know if the item I’m buying is worth the price. Sometimes, brands overprice items because it has a “big name”, making them some sort of status symbols. I’m referring to Apple computers here; while they’re efficient, they’re a bit pricey that PC’s could actually outdo them. In all cases, research and look for user reviews.

2.     Analyzing Reviews

As I always look at it, reviews are subjective especially when only a computer user, not an expert, makes a review out of it. When looking at user or common reviews, take note of their location, their possible occupation, their usage of the computer or laptop unit, the length of time they owned the unit. All these details could say everything about overheating and malfunction, and other future troubles you might face with the unit.

3.     Finding Secondhand Bins

One thing the Internet gave us is an endless supply of information and opportunities. With buy and sell websites such as eBay or forums, you could find some units to your liking. However, always look for seconhand units owned only for at least 1 month to a year. Anything more and quality can’t be guaranteed.

4.     Haggling

Before you decide on a purchase, find other products similar to the specifications of the laptop you’re buying. Once you gain enough information, you could haggle with the laptop owner about the price of the laptop. If they do not agree with you even if you point out its market value with its “batchmates”, then move on to the other laptop owners. The first one to agree to lower their price is a considerable deal already, but you could always push a little further, like I do.

Tips On Rebuilding Your Credit Score

Credit reports impact your credit score, and the reports contain the financial activities you’ve done for the last quarter or year. Your score will affect your ability to gain credit and approval for loans, mortgages or credit cards with low interest fees. You’ll be paying higher bills or get rejected if you have a poor score that instantly puts you in the high-risk category. Here are a few ways to rebuild your credit scores. 

1.     Use Your Credit Card

If your debts are not too heavy on your credit cards, resign all but one of your credit cards. Ensure all resigned credit cards have no debt. Now, this single credit card’s purpose is to help increase your credit score. Use it to purchase small-priced items or items that your actual money could afford to pay on time and in full. A good performance in paying your credit bills on time can boost your credit score.

2.     Develop Good History

A good financial history is reflected by the length of time your credit is in good standing with another creditor. With a low-balance credit card fully paid on time and in full every month, your good history develops over time. By a year, you could upgrade your credit status to a good standing that could get you an average-interest loan from a high-risk, high-interest one.

3.     Separate Supplementary Accounts

If you’ve recently had a divorce or if you have shared properties with a business or company you owe, separate these supplementary accounts legally. Supplementary accounts allow other people or establishments to use your line of credit, which can affect your score when things get sour.

4.     Correct Inaccuracies

If you could correct any erroneous or outdated information listed in your credit reports, a good credit score boost may just be in the corner. Initiate a dispute  whenever necessary and don’t be afraid to use this legal right.

5.     Avoid Bankrputcy

When you’re deep in debt, avoid filing for bankruptcy if you still have a capacity to earn money. Bankruptcy is for people who are retired, disabled and unable to get income because of their incapacities. Even if 80% of your income goes to your debt, to protect your credit score, avoid bankruptcy filing.

How My Landlord Took Me to Court (Or What I Learned About Financial Disputes)

There are times that we’ll learn things the hard way, or life’s way, in general and this story is a summary of my learnings with my recent dispute with my landlord. You see, I knew I paid for my rent this last February yet my landlord continued to insist I haven’t paid anything yet. The trouble was, we never issued receipts to each other simply because it was an informal arrangement. But it was actually brewing more trouble than I first thought.

With the receipt gone, we continued to dispute if I had paid for this month’s rent. Eventually, my landlord grew tired of disputing with me on a daily basis and finally, I received a letter that sent me to meet him and his legal representative. The legal representative cleared to both of us that it was a sticky situation simply because he never issued a receipt and I never asked for a receipt. Without proper documents, we had trouble. However, the landlord was pushy and, even against the advice of his legal rep, called to have me on court.

The court investigated the entire scenario and the tricky situation described by my landlord’s legal representative was actually sticky because the landlord was discovered not to have paid his stamp duty and his rental property taxes. He was overdue by 12 months. Eventually, I was held not responsible for the entire case and my landlord faced a great fine and interest rate to pay for the taxes.

As I moved out this March and landed here in Birmingham a month ago, I realized that I always have to ask for receipts. My former landlord was a very friendly man and we became chummy with each other to the point that receipts and forms were never needed. But sometimes, you just need something concrete for times when you need legal support.