The 5 Tips Young People Should Know To Protect Their Financial Health

Whether you just got your first job and are hoping to start saving up cash, or you’re about to graduate college and want to pay off your loans and set yourself up for a strong financial future, taking steps to protect yourself and your wallet from financial risks can be a smart long-term move. Young people who pay extra attention to their financial health can help ensure a stable and prosperous future.

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1. Boost Your Earning Potential and Your Career by Going Back To School

If you’re looking for a single move that can help you increase your earning power and boost your odds of a successful career, consider going back to school to get a degree. Having a degree can open numerous doors and may enhance your lifelong earning potential.

Even if you don’t have the time for an in-person program, online degree programs can allow you to reach your goals while still fulfilling personal and familial obligations and working full-time. When you start searching for online programs, make sure your selected school is accredited and has affordable, competitive tuition costs.

2. Find Creative Yet Stable Ways To Increase Your Income Over Time

According to one study, higher education levels are associated with higher income levels over time. However, earning a degree isn’t the only way to earn additional income and grow your income gradually. There are some creative and potentially stable ways you can earn more, either full-time or on the side. For instance, you could:

• Monetize a current hobby
• Sell unneeded items online or at a yard sale
• Pick up freelance or part-time work

3. Find an Affordable Home and Start Saving for Your Own House

One of the most effective ways to build long-term wealth is to purchase your own home, so it’s best to start saving for a down payment as early as possible. Every month, put away a small portion of your paycheck into a house fund.

If it comes time to purchase a home and you find you’re a little short on funds, there are financial assistance options that could help you make up the difference for your down payment. There are typically three different down payment assistance possibilities: tax credits, loans, and grants. Whether you’re eligible for these programs depends on your career and income, your location, and the type and cost of the house you want to purchase.

4. Master the Keys to Good Budgeting Early On

Having strong budgeting abilities is the key to healthy financial management. Learn how to make your own budget early on. Master skills such as:

• Paying the bills on time
• Tracking your spending
• Eliminating unnecessary purchases

5. Protect Yourself With Insurance, Good Credit, and a Savings Cushion

Finally, take a few measures to protect yourself and your long-term financial health. Make sure you:

• Purchase necessary insurance coverage
• Pay down loans and other types of debt
• Put money into savings every time you get paid
• Keep your credit utilization ratio low

When you’re just starting out your professional life, paying close attention to your finances can give you a strong foundation for the years to come. Young people looking to protect themselves – and their wallets – from risk and harm can take several key steps, from saving up for a down payment to finding clever ways to boost their income and more.

Looking for a loan? Turn to First Financial for fast and easy loan approval. Reach out today!

Common Personal Loan Application Mistakes and How to Avoid Them

Personal loans grew by 19.2% in the first quarter of 2019.

With more people than ever applying for and using personal loans, there are also more people making avoidable personal loan application mistakes. Mistakes that cost borrowers more in the long run!

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If you’re looking to join the many people applying for personal loans then it’s important that you avoid these mistakes so you can get your loan with the minimum amount of stress and extra costs.

In this post, we’ll go over some of the most common mistakes made in the personal loan application process, and how to avoid making them.

Keep reading to learn more.

Not Shopping Around

One of the biggest mistakes borrowers make is to not compare different lenders before applying for a personal loan. Different lenders will all have their own loan fees and penalties as well as different basic requirements for approval. Compare the various:

• Interest rates
• Origination fees
• Payment schedules
• Prepayment penalties

While it can be very tempting to go with the first option that you find, this can wind up costing you more over the life of the loan in interest and fees. Be sure to compare local banks, national banks, credit unions, online lenders, and different types of loans.

One of the things you should pay close attention to when choosing your personal loan provider is their lending practices and any kind of predatory actions. These are things such as abnormally high-interest rates or late fees, rushed approvals, and encouragement to lie on the application.

Not Paying Attention to the Details

When it comes to personal loans, there are so many little details that it can be easy to get overwhelmed and ignore them, but this can majorly backfire. It’s critical to pay attention to what the application, origination, late payment, and returned check fees are, not just what the monthly payment will be.

If you’re not aware of these fees then it can be easy to make a mistake that you’ll be penalized for. For example, if your loan has a prepayment penalty, you could be charged extra for paying off your loan early. This is something you need to be aware of but could easily overlook.

This also applies to reading the fine print on closing documents. These include important information regarding how interest is calculated, what forms of payment they accept, and the payment schedule. While these may seem like small details in the grand scheme of things, they can make a big difference in how you pay back your loan.

Stretching the Truth

Some people consider getting a personal loan a last resort. This means that when they do apply for one they may feel desperate that they need to be approved. But no matter how desperate you’re feeling it is crucial that you don’t stretch the truth or outright lie about your current financial situation.

Lying on a loan application is illegal and can come with massive consequences including fines, being barred from ever applying for a loan again, and even jail time.

There are lenders out there that will work with people with poor credit, low income, or other financial issues. Just be honest.

Not Having a Budget

One of the first things you should do when considering applying for a personal loan is create a budget so you know exactly how much loan you can afford. If you jump into a loan without considering whether you can really afford it then it can put a great financial strain on you when it’s time to make your payments.

You need to be sure that you can afford the monthly payments because if you can’t and you miss even one payment, it can negatively impact your credit score, and cost you even more in missed payment fees. While you may feel like you’re solving one financial problem with the loan, you could be creating another even worse problem down the road.

This budget should also include an emergency fund so that if something should happen to you like an injury or loss of income you’ll still be able to make your payments.

Borrowing Too Much

Just because a lender is willing to lend you more than you asked for, does not mean that you should accept that larger amount. While more money can sound like a big bonus it also comes with more principal to repay, more interest, and higher fees that are sometimes based off of a percentage of the loan itself.

If you take out a larger loan than you need and miss any payments it can have negative consequences for your credit score and your future borrowing power.

Avoid making this mistake by taking out only the amount you need, not more. Don’t let predatory lenders convince you to take more.

Assuming You’ll Be Approved

A pre-approval does not necessarily mean you will be approved for the actual loan. This can cause a lot of problems if you move forward and begin spending money before you’ve actually been fully approved for the loan.

Pre-approval doesn’t include all of the details in your credit report that will be found during the actual loan application process. If something unexpected comes up and your application is denied you can wind up in great financial distress.

Be sure to avoid spending like you have the loan before you actually have the money in your account, and make sure you have a backup plan for what you’ll do if your application isn’t approved.

Avoid These Personal Loan Application Mistakes

A personal loan can be a powerful tool for financing important things in your life, but it can also be very expensive and complicated. Be sure to avoid making these personal loan application mistakes to keep the process as smooth and cost-effective as possible.

If you’re in need of a personal loan fast, we can help. See what you’re qualified for today!

How To Keep Your Small Business Bank Account Full & Ample Cash Flow

According to a study, poor cash flow management contributes to 82% of small business failures. Even businesses that bring in more money than they spend over a year can run into financial trouble if they don’t manage their cash flow well. These tips can help you ensure that you always have a positive balance in your bank account.

Set Your Business Up for Success

One of the first tasks new business owners must complete is to choose how to organize their business. Forming a limited liability company protects your personal assets from business-related lawsuits and provides tax advantages. Even if you have already been in business for a while, you can change your company to an LLC; however, each state has different regulations that you must follow to avoid legal issues. Do your research or consult with an attorney before you proceed.

Send Invoices Promptly

The faster you send invoices to your customers, the earlier they are likely to pay you. The invoice serves as a reminder to the client to send their payment. It also provides the customer with a deadline to meet. Consider using software that automatically generates an invoice when you make a sale to improve cash flow.

Provide Incentives for Early Payment

Many businesses offer customers 30 days to pay an invoice before the payment is considered late. However, if you can get customers to pay earlier than that, your cash flow will improve. One way to encourage early payments is to offer a discount. For example, you could offer a 1% discount to customers who pay invoices within 10 days. The discount should be small enough that the benefit of the early payment exceeds the loss of revenue, but large enough to compel the customer to pay early.

Increase Revenue

You can boost your cash flow by increasing revenue as long as you aren’t spending more money than you bring in to produce the increase. One of the best ways to boost sales is to improve your marketing.

Creating a professional-looking logo is a cost-effective way to build your brand, make a good impression on customers, and set yourself apart from the competition. You can save money on your logo design if you try a free logo creator online. These tools are easy to use. Pick the style you want. Choose an icon. Add your text and then adjust the fonts and colors.

Another good way to boost revenue is to expand the payment methods you accept. The more options you provide to customers, the more sales you are likely to make. Additionally, offering more ways to pay tends to result in faster payments. So, work with a bank like First Financial that can provide the type of merchant services you need.

Maintain Accurate Financial Records & Cash Flow

It is nearly impossible to improve your cash flow without accurately keeping track of your finances. Without accurate records, you don’t know where you are and you can’t tell if you are improving. The right accounting solution can provide you with insights into your cash flow that can help you make better decisions about running your business. Accounting software can automatically generate profit and loss statements and balance sheet reports so that you always have instant access to your financial information.

Effectively managing your cash flow is critical for the success of your business. Following these tips will help you ensure that you always have the financial flexibility you need to grow your business.