Tag: financial resources

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Financial Planning

Tips to Manage Financial Challenges

family facing financial struggles

If you are in a difficult situation facing financial challenges, learning how to properly use loans, for bad credit applicants, can help.

Do you have a steady source of income which covers not only your needs but also your wants as well? If you’re one of the thousands of Australians who want secure finances but are also dealing with financial issues, you may be wondering how you can achieve that reality.

What Are Your Financial Challenges?

Like many individuals in serious debt, you are probably worried about trying to pay for your daily living expenses and outstanding debts, while wishing to buy a home, a car and probably take a vacation. If so, don’t ever think that you’re alone in this aspect. There are also many struggling parents who need to save for your children’s education while paying off debts and adults with elderly parents to support. And, things get worse when you are going through a divorce, dealing with a death in your family or probably looking for a substitute job for the one you recently lost.

The truth is that there are many events in life that test not only our ability to cope financially but to think positively and overcome these trials with a smile.

Use your financing options to manage these financial challenges

Learn how to take control of your finances, boost your borrowing power and secure a better financial life with the following tips:

Write down each of your goals

Are you really determined to pay off all your high-interest loans? Or do you just need to have a better credit rating so you can borrow even more? Sometimes, we don’t actually know what we want. We just keep on looking for solutions to our immediate problems without looking into their root cause.

For example, if you have $5,000 worth of debts, both in consumer credits and loans, do you trace back to the causes of those purchases? Or, do you simply skip the reflection aspect and look for better financing that could lower your interests so you can have more money to spend on your needs and wants?

While there is nothing wrong in looking for better deals, such as low-interest and easy to pay bad credit loans. Finding the root of the problem in your finances can help you make better decisions with regard to budgeting and balancing your sources of revenue.

Swap the present wants for future needs

Are you spending a few hundred dollars on things you can live without—such as a gym membership, magazine subscription and a trip to your favourite coffee shop? If so, think of how you could use the money to build wealth, like starting a retirement plan to secure your finances in later years.

The sooner you start saving for retirement, the more financially secure you can be when you finally stop working. These contributions are typically tax-deductible, so aside from getting a tax credit for starting a retirement plan, you can also grow your money faster because savings grow faster in a retirement plan as a result of tax-free compounding.  In the end, even small contributions can make a significant difference over time.

Diversify your investments

Do you know how to protect yourself against ignorance? Warren Buffet says that it is through ‘diversification’. Since you’re not really sure if an investment will appreciate over time, you should diversify your portfolio to ensure that your exposure to any individual asset is limited.

What are the asset classes that you currently hold?

Are you involved in alternative investments like real estate, or are you simply invested in stocks or bonds?

Instead of chasing performance for a single investment class why don’t you add a good mix of real estate, cash, bonds and stocks in your egg basket? This way, you can protect your financial portfolio from wreaking havoc when the market declines. If you put more than 15% of your money into a company’s stock, you may be heading for disaster. While you may not be thinking of the worst-case scenario, preparing for these things can help you when you lose your job and your other sources of income. Losing your investments as well, all at once is not an easy crash to bounce from.

Grow your wealth

One of the most important benefits of bad credit loans is that you can use it for wealth maximisation. Create a long-term investment strategy that requires adjustment in your personal budgeting and your appetite for risk. This helps to ensure that no major market glitch will pull your finances down. You never know what will happen tomorrow, but one thing is for sure… life goes on and with the right mindset and professional help, you can enjoy a comfortable and financially stable lifestyle.

Contact the Australian Lending Centre today and receive financial advice from our specialist loans team.

Categories
Financial Planning

How Quick Loans Can Help You Take Control Of Your Finances

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If debt is a pervasive part of your life, and every now and then you are looking for quick loans, you are not alone. But, don’t you know that you can find your way back to a stable financial ground with good planning and a little bit of work? Learn how quick loans can help you take control of your finances.

People are in debt because…

There are many reasons why people get into debt. Some simply had to use it to deal with bad circumstances such as illness, accidents, divorce, and other financial setbacks; while others simply lack financial management skills and budgeting strategies.

Current stats on Australian debt:

Federal Reserve research shows that Australian households have a total of $2 trillion unconsolidated household debt. But, despite the increasing financial obligations, consumer spending in Australia increased to 23.8 AUD Million from July to September 2016. It is roughly a million higher than the 23.7 AUD Million consumers spending in the second quarter of the same year. These results could mean that household debt and consumer debt are increasing, as more people are willing to apply for loans, credit cards and mortgages.

So, how do you prevent debts from cutting into your paychecks? Well, you can increase your income, practice money-management tips and use quick loans to cover your immediate financial needs while working on it.

Strategies to help you take control of your finances

Make a workable budget that you can stick to:

You can start by jotting down your most urgent expenses and the overall cost of all other things you will use the money for.

  • Prioritize spending. You may be surprised that the thing you think you need most, is not even worth it.
  • Don’t forget to write down even the frivolous purchases
  • Keep track of your daily expenses, such as fare, coffee, food and other necessities
  • Check for alternatives. Can you pack lunch instead of buying take-out meals?
  • Set your financial goals. There’s a huge difference between financial dreams and financial goals. A dream is what you hope for, while a goal is something you planned to achieve. You plan it to make it happen. You don’t dream about it and allow things to flow in its natural course. Financial goals require action. You take an active part in its realization.

Create a list of the following:

  • Things you want to accomplish
  • The resources you will use to achieve them
  • Time frame
  • Cost
  • Action plan. Make sure that your plan will work considering your budget.
  • Repay your quick loans on time. When does the repayment date start? Include the date in your action plan. When you have a deadline to beat, you will have enough motivation to make yourself productive until it happens.

Do you need quick loans now? Where will you spend it on? Whatever is your reason in applying for a loan, the Australian Lending Centre is here to help you. If we helped thousands of Australians deal with their financial troubles, why can’t we do it for you? Call us now!

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Budgeting

Common Budgeting Mistakes to Avoid

money budgeting and management

Budgeting is always a good idea because this way you can control your financial resources and expenses. But there are a few mistakes that can make a budget go awry. If you don’t want this to happen, make sure you avoid the following ones.

Budgeting Mistakes

Making it too strict

Even though budgeting is not fun at all, the feeling you get when starting it is quite exciting because you believe you can spare a lot of money. Because of this feeling, many Aussies tend to make a budget they cannot afford or respect because it’s too strict.

Many articles advise people to use the money in order to achieve the things they want, but in most cases, they also recommend to cut the budget allocated for fun, discretionary spending, or indulgences. When reading such an article and being excited to spare more for your goals, you can easily be tempted to allow no money for these activities. But not spending at all on your entertainment is not possible so that you will do it anyway. In the end, you will still dispense an amount of money for these needs, but you will be disappointed because this will affect your budget. Why end up frustrated because you were too excited at the beginning? When planning your budget, try to be realistic and avoid making it too strict. Allow yourself “fun money”, but not too much.

Planning it without a purpose in your mind

Having a goal is an excellent way to motivate you to stick with the budget you made. So what is your purpose? Why are you saving money? For instance, if you still have to pay your student loans, or you have debts, budgeting is undoubtedly a wise choice. When you know that you must save money for a particular goal, your motivation is boosted. On the other hand, it is easier not to respect a budget when you don’t have any purpose. You don’t need debts to have a substantial reason to spare money. You can think about your house renovation you have dreamed for so long, a new car, a motorcycle, etc.

Not considering irregular expenses

When budgeting, keep in mind that you must include the irregular expenses, even though they do not “pop up” monthly. Some are quarterly, others are annual, and so on. For instance, consider the holiday spending, car insurance premiums, school supplies, car maintenance, home repair projects, and pet vaccinations. Additionally, don’t forget that utility bills are higher in winter and summer.