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3 Savings Tips Millennials Should Start Today



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You may or may not have ever considered the various reasons why saving money is important. Not only can it be character building, but it can also be very satisfying to watch yourself boss up and meet your goals. Maybe a goal like saving your first $100k. Or maybe saving to have money left over after saving for the down payment of your first home or car purchase.

There’s something awesome about delayed gratification that outweighs any fly by night splurge. Here are the 3 savings tips that you can start today to level up on your saving goals

Tip #1  

In All Thy Getting…

The best way to start saving is to start understanding why you’re spending. Especially if you’re spending frivolously. The honest truth is that you’re not spending money simply because you have it in the bank, or worse, on a credit card. There are feelings involved. Yes. Feelings that can be categorized by either pain or pleasure.

Feelings of exhilaration when you splurge or the freedom you feel when you go out with your friends are feelings of pleasure. However, the feelings that we like to avoid are siblings of pain. Such as how you feel when you can’t go out or can’t afford to buy that new iPhone XS Max.

Now, you might expect me to say “get out of your feelings”, but no, I want you to do the exact opposite of that. Not only do I want you to be still in that “feeling” you feel when you’re getting ready to fail…I mean, spend, but I want you to also redirect. I want you to begin redirecting your thoughts on spending which will help get your feelings in check. “How so?”, you might ask. Easy – ask yourself these three poignant questions based on my “WNR System”(Wants, Needs and Rewards):

  1. Is it trending? Anything trending represents your impulse for immediate gratification of all of your wants. Do you remember when hoverboards first came out? Before the hilariously painful videos of people busting their asses or nearly experiencing death by hoverboard fire? Because they were trending they were more expensive. However, weeks later you could buy a quality hoverboard for half the original price on Basic supply and demand. Therefore, if what you want is trending, more than likely if you wait it out for a few weeks you will likely find a deal worth the wait and save a ton of coins.
  2. Are my bills paid? Your bills are a representation of the needs in your life. Fiscal responsibility not only reflects in your spending habits, but it also flows into other areas of your life. I’m pretty sure irresponsibility has peeped it’s little, ugly head in other areas of your life as well. So if your bills aren’t paid, then it goes without saying that you shouldn’t spend a dime on anything extra. Not for you and not for your kids and not for your friends. As the saying somewhat goes, the way you do one thing is how you do most things.
  3. Is it deserved? If your bills are paid and you haven’t been on a spending spree, the next thing to consider is if you have put enough skin in the game to reward yourself for good behavior. If you have, go for it! Sometimes you just simply deserve to eat the cookie and buy the shoes as noted by one of my fav speakers, Joyce Meyers. However, if you feel as if you haven’t really saved as much as you could have for that week or month, go ahead and enjoy a slice of delayed gratification and set a later date to make the purchase.


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Personal Finance

Securing Credit? Importance Of A Personal Financial Statement



If you, as an individual, are a salaried employee but now wish to start a business, then your personal financial statement will be the key to avail credit. You may not be entitled for a loan for business, as the eligibility criteria here underlines history and financial position of an existing business. Since, the business in question would be a start-up; you will have to depend on personal finances for the time being, as a means to fund the venture. It is however recommended to keep personal and business finances separate, in the long-run.

When providing monetary support to a new business, it is important for the fund-provider to understand your financial position, which is well-represented by your personal finance statement.

What Does a Personal Financial Statement Contain?

A personal financial statement reflects your financial health. It is a spreadsheet or a document that gives a breakdown of all assets, liabilities, and fiscal details.

  • This document also contains general information such as your name, address, etc.
  • The assets are detailed on the right side, while the liabilities are listed at the left side of the sheet.
  • Liabilities include credit card balance, a personal loan, mortgage, unpaid tax, and more.
  • Assets include amount of balance in bank accounts, trading accounts, retirement account balances, and similar information.
  • If you are married, then you can apply for a joint personal financial statement, which shows details of all debt incurred and owned assets, of both the involved persons.

What is excluded from a Personal Balance Sheet?

There are a few things, which personal financial statements do not show.

  • Business-related liabilities and assets do not surface in a personal financial statement.
  • This spreadsheet also excludes leases and rentals since the rented or leased assets are not under your ownership.
  • A personal balance sheet will exclude personal property such as household goods, furniture, and more, which cannot be sold off to repay a loan.
  • However, property that has significant value such as antiques, jewelry, etc, can be included, if the asset value of these items are verified for appraisal by a certified agency.

Analysis of Net Worth, Possibility of Availing Credit, and More

A personal financial statement thus basically shows your net worth, which is assets minus liabilities, and it holds a great value, when it comes to seeking loans.

  • Net worth translates as what you will have in cash if you sell off all the self-owned assets to repay debts.
  • If the financial statement shows debts as greater than assets, then your net worth will is a negative.
  • For instance, if the sum of your utility and credit bills, auto loan bills, mortgage bills, etc. sum up to be more than the cash of all the investments and real estate property you own, then your net worth is negative.
  • If the net worth shows as negative, you can file for bankruptcy protection to resolve some of the debts. It may prevent creditors from collecting outstanding debt by posing any financial threat or stress on you.
  • However, certain liabilities cannot be discharged, and these include alimony, taxes, child support, and more.

Thus, personal financial statements have a great impact, when it comes to securing funds to run a new business. The document allows banks/NBFCs to assess your financial situation so that they can take an informed credit decision. If your financial health is not up to the expectation, you may be given an option to provide a personal guarantee, pledge an asset, or co-apply for the loan.

How to Fund Your Start-up Business?

You can either apply for a property loan or a soft loan to arrange capital for the venture, or opt for a small cash loan or a short-term loan, until the business attains enough vintage and financial history, to shift to a business loan suited for only business purposes. Thus, by comparing personal financial statements over a time, you can track your financial health and monitor it closely to improve the same. You should keep a check on this document regularly, especially if you intend to avail credit for business needs.

What is a Business Financial Statement?

A financial statement of your company will list liabilities and assets specific to the business alone. It will depict the net worth of the company, and leave out your personal financial details. The financial statements of an organization, include income statements, profit and loss statements, proof of revenue generation over a specific time period, expenses and debts incurred, cash flow statements (indicated the amount of cash the business has), shareholder equity statements (indicate the performance of the company’s stock).

Thus, a personal and business finance statement are different from each other in lot many ways, though they serve the same purpose, which is to denote the financial position of an entity, be it an individual or a company. An organization’s financial statement comes in use when applying for a traditional business loan, which is the best way to finance your start-up initiative, after it attains at least 3-years vintage.

If you wish to secure a loan for your start-up business, do not hesitate to take support of your personal finance for the moment. And to avail monetary support via this route, you need to keep a regular check on your personal financial statement.

This article originally appeared on ValueWalk. Follow ValueWalk on Twitter, Instagram and Facebook.

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Personal Finance

Video: A “How To” On Being Financially Responsible



Let’s start the new year right by following these steps to being financially responsible and clinching the formula to build wealth.
Some of the philosophies presented in this video come from Robert Kiyosaki, the author of Rich Dad Poor Dad Why do they not teach this in schools?


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Personal Finance

How To Invest Your Way To Your First $1M (In 8 Steps)



While being a millionaire most certainly offers a sense of privilege and extravagance, it also provides comfort.

Despite the idea that many of life’s luxuries can cost you your bank (plus a large chunk of your future earnings), achieving comfortable wealth is possible—if you’ve got a solid investment plan you’ll follow religiously.

Here are eight investment strategies to work your way to your first million dollars.

1. Say No To Fees (Of Any Sort!)

Investing comes packed with hidden and some obvious fees – broker fees, distributor fees, exit and entry fees, maintenance fees, and a string of other service-based fees. If you can manage your own investments and money, you can save hundreds of thousands in fees over the lifetime of your investment.

2.  Don’t Try To Time The Market

This can be one of the biggest blunders one can make—simply because it’s impossible, speculative and you’re gambling with your savings. While there are indicators that show market trends, this does not promise that your investment will most certainly move up or down.

3. Think Long Term And Diversify

If you put all your investments into one asset class, your investment will tank the minute the asset class goes into free fall. How do you beat this? Plan and diversify your investment – it could be debt, treasury bills, equity, real estate, startups, business ideas – anything, as long as you think long-term. This can pay off in the long run.

4. Think Like An Owner

When you buy your stocks or make your investments, think and act like it’s yours – you’ll be doubly careful to make the right checks and invest smart. When you invest in solid, robust companies with this in mind, the returns would also be equally strong. Good companies can pay you high dividends that can up your total income.

5. Invest In Yourself First

Be it education or investing for your retirement, put yourself first and then try to budget for the other frills in life.

6. Borrow If You Can, Don’t Buy

With a growing shared economy, you now have plenty to choose from – co-working spaces, ride-hailing and ride-sharing services, shared rentals and accommodation, and the list goes on. Here’s where you can really cut costs – be it while running your business or as a regular looking to channel the savings elsewhere.

7. Set Goals (And Stick To Them)

Make sure you start saving as early as possible and invest it – even a dollar can compound over time. As time goes, set bigger goals and get excited about them! Once bonuses and income increases come your way, bump up your investments – it can soon touch a quarter of a million.

8. Max Out Early

Your 401K can be one of your biggest retirement funds and maxing out your annual contribution by the end of June can be a great way to boost your retirement savings. How does this help? It gives your money an additional six months to compound.



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