Financial Planning Tips For Millennials

Earning and saving essential resources to help you achieve what you dream in life is not difficult. The key is: the sooner you begin, the better your chances are. This is particularly important when you are still a teenager and have a lot of time to learn and develop. Here are five financial planning tips to help you get more confidence and build up your fortune.

1. Stop Overspending

If you are spending too much and can’t meet your financial obligations, stop that before it’s too late. Think carefully about where you would cut costs, even when it is just several dollars each week. An effective way to do this is tracking your purchases. Pay attention to your shopping behaviours and know what you often buy. That might help you realise what’s necessary to stop purchasing in the future.

2. Diversify Investments

Most successful businessmen and economists suggest that diversification or investing in different stocks or bonds can help lower the risks. When a crisis occurs or the market gets bad news, you might minimise your financial losses. Remember that the primary advantage of millennials is that their investments will have enough time to recover after a downturn, so do not panic when the market falls.

3. Trust Low-Cost Funds

If you are planning to buy mutual funds, it’s important to know that a low fee is often a great sign of good returns in the future. For example, you invest $1000 and expect to have $12,000 by the time you get retired. If the annual charge is 1%, then your investment will be worth $9000 at age 65. Thus, choose low-cost funds which charge less annually to increase your return.

4. Don’t Be Fancy

Over the past few years, you will hear so many people talk too proudly about the easy money they get from the market such as Bitcoin and other cryptocurrencies. However, you should understand that for every successful investment they get, there are many failures that they have forgotten to tell you. If you decide to invest in these risky deals, hire a financial planner Adelaide or ensure that you don’t give more than that you would accept to lose. Consider what levels of risk you are ready to take on and match your bets to these levels.

5. Save For Investments

As long as you meet all of your goals in savings goals or when you earn more money, it is a good idea to improve your savings in addition to a retirement account. In general, having a particular amount of money to invest in real estates, stocks or mutual funds at the right time can be a great opportunity to help you make a fortune. That would be something such as your kid’s education, a new apartment or your own business. In general, you can apply the 20/30/50 rule: 20 per cent of your monthly income should be saved, 30 per cent goes toward optional items such as eating out or vacations, and 50 per cent is used for necessities, including taxes, rent or food.

Home Loans For Accountants

A career as an accountant can bring lots of benefits since you would earn a higher income and have great long-term prospects. Every mortgage lender and broker, Adelaide Residential Home Loans included, is aware of those things and usually willing to provide or facilitate a home loan for accountants. From discounted interest rates to waived LMI expenses, these loans would help accountant borrowers enjoy their sizeable savings.

How does a mortgage work for accountants?

In fact, home mortgages for accountants are quite similar to other home loans which are available for refinancers, investors and owner-occupiers looking to build or renovate their properties. However, this type of loan provides special discounts which you could not get on usual mortgages. For instance, you don’t need to have a 20 per cent deposit to take out the LMI (lender’s mortgage insurance). Indeed, many mortgage officers allow an accountant to borrow nearly 90 per cent LVR (or loan-to-value ratio) without requiring the LMI.

How to compare mortgages for accountants

  1. Fees: Make sure to be aware of the charges and fees that you have to pay your home loan. Compare different options for the upfront, ongoing and exit fees, then choose the right one because a small fee can quickly add up to a substantial amount over time.
  2. Interest rates: An important feature that you should consider for any home mortgages is the interest rate because it can be the decisive factor on the amount which you need to pay back to a lender later. Keep in mind to decide if you prefer a variable or fixed option, then choose a competitive rate.
  3. Special features: Compare the benefits of accountant home mortgages like discounted interest rates and waived LMIs. How much are the discounts available? How much would you borrow for the purchased property without paying for the LMI?
  4. Repayment options: It is always better to choose a home loan which offers flexible repayment options so that you could repay the debt at a suitable schedule for your budget. Also, you might benefit from a mortgage that allows for making extra repayments and paying out the loan early without any penalty. Keep in mind that fixed-rate loans typically will not allow an unlimited additional repayment, but would provide extra repayments.

Prons and cons of accountant mortgages

  • Low-interest rates: Benefit from a discount on the basic variable rates of many home mortgage so that you can save a lot of money for other important tasks.
  • No LMI: Some lenders would allow accountants to borrow a better LVR without needing to pay extra money to cover the LMI cost. This would be a considerable saving over time.
  • Higher LVRs: Many lenders provide the maximum LVR of up to 100 per cent for owner-occupiers.
  • Professional and income requirement: Most home loans for accountants often require the minimum salary, typically $150000, to qualify. Besides, many lenders might also want to check specific qualifications or certificates in the industry such as CIMA or CPA.
financial accounting

Financial Accounting: Why Is It A Necessity To All Businesses?

Opening and running a business can be a surprising, exciting, complicated and yet an expensive endeavor. It seems pretty much simple; you just need to ensure you are selling goods and services for more than you bought them, right? Wrong. Without accurate record keeping your prospering business might take a sharp and immediate dive towards bankruptcy.

Financial accounting is arguably one of the essential tools for the success of any business, whether big or small. It plays a critical role in all financial decisions you will make. From procuring vehicles, supplies, and equipment, to selecting inventory quantity, determining salary amounts and increasing production, accounting is a vital component of any successful business venture. But if you do not have an extensive background in financial accounting, where should you start?

Selecting an Accounting Method

The first decision you need to make is to determine the accounting method you want to use. Different accounting methods usually decide when and how you record your business’s expenses, with the two primary accounting methods being accrual accounting and cash accounting. Cash accounting is ideal for small businesses because it requires that the bookkeeper records transactions when they have received or made payments. Accrual accounting, on the other hand, is usually the choice for huge corporations. With this method, the accountant logs every transaction as it takes place, whether or not you have received or made payments.

What Are the Benefits of Financial Accounting?

As mentioned earlier, accounting is instrumental to the success of any business, and as such there are numerous benefits associated with it. So, what are the benefits of financial accounting?

1.Helps in Wise Decision Making
A majority of business decisions including anything from pricing to expanding the goods you manufacture much rely on a business’s accounting procedures. It’s easy for a company to focus on the cost of goods and the sale of products to calculate profit; however, this could result in a financial disaster when all the liabilities of your business are factored in. Accounting helps keep track of money owed, loans, equipment depreciation, salaries and many other items that might not be included in the list of expenses. Additionally, accounting helps analyze business trends to aid in making policy adjustments for better cash flow and profits. Make sure to check the top Vancouver accounting firm for an accurate accounting and corporate tax preparation services.

2.Source of Information
Another significant benefit of accounting is the information it reveals about your business. This financial information is not only useful to the managerial team who use data about assets, revenue, equity, and expenses to make decisions but also investors who examine all results of financial accounting to determine whether to invest in your business or not. Bankers also use your financial records to calculate the risks involved in lending you a loan and from the same information, they can either deny or approve your application for a loan. Besides, financial accounting allows business leaders to change their budget and business plans for the future to take advantage of commercial strengths revealed by accounting or address any arising financial problems.

Federal and state regulations require a business always to perform financial accounting, which implies that the process has an added advantage of keeping your business in compliance with regulatory agencies and free from any fines or legal action. Accounting information is also an element of business ethics and transparency, requiring accurate and honest information for market analysts, competitors and investors to review.

4.Helps Detect Waste, Fraud or Carelessness
Besides keeping track of financial records, financial accounting involves the comparison of your company’s checkbook with bank statements, and hence one can easily pinpoint discrepancies and anomalies. With proper accounting and bookkeeping, you can identify any differences and detect errors that could be avoided in future.

So, whether you’re a startup business or a large corporation, remember to keep a record of every transaction as it occurs, ensure every entry is accurate and let the accounting-based information guide every financial decision you make.

For more information contact:
Superb Accounting Vancouver
6823 Station Hill Drive #307A, Burnaby, BC V3N 0A9
(604) 518-6458

Accounting Guide In The Sentimental Categories

Accounting is used in every business and is segregated into private accounting, public accounting, and government accounting. Accounting is used worldwide and without accounting, it is difficult to keep track of all financial transaction.

Shopping For Accounting Software Online

Shopping for accounting software online is a great way to research and compare several types and brands of accounting software to make sure you find what that will work for you. Online shopping can also be a lot more efficient than driving across and around town in person, especially if there is no store that sells accounting software close to you. There is no advantage to buying accounting software in a store (unless the accounting software program is too large to realistically download), other than you get a hard copy to re-install it if you should ever need to. However, many online accounting software sites will either make disks available to you or will let you re-download the software if you should ever need to. Shopping online for accounting software is also more convenient because it can be done 24 hours a day.

Important features of accounting software websites

When shopping for the best accounting software for you, there are a few things to look for when comparing websites that sell accounting software. Just like you shop at specific grocery, clothes or hardware stores for certain reasons (price, convenience, selection, etc.), you should shop at specific online stores because they have the particular mix of features that are best for you. After all, just like not all retail stores are alike, not all online stores are alike either.

The functionality of site- the best accounting software sites is clearly organized, intuitive, and easy to navigate. You should be able to search easily by price, brand or category to quickly find the accounting software that would best fit your needs. Look for an easy and secure checkout process and clear and concise information about the software and all associated charges. The website is a reflection of the company itself, so pay attention to the ‘look and feel’ of the various sites and use that as a barometer of how well the accounting software will work for you.

You should be able to search easily by price, brand or category to quickly find the accounting software that would best fit your needs. Look for an easy and secure checkout process and clear and concise information about the software and all associated charges. The website is a reflection of the company itself, so pay attention to the ‘look and feel’ of the various sites and use that as a barometer of how well the accounting software will work for you.

Selection- finding just the right accounting software for your needs is important, and there can be a significant difference in selection among accounting software sites. Make sure to visit at least three sites that sell accounting software before buying anything as it might surprise you as to how many options you have. Look for a website that specializes in accounting software, or that sells related software.