Tips for Reducing Financial Stress

Tips for Reducing Financial Stress

The burdens of managing one’s finances can put a tremendous amount of stress on even the most easy-going person. Whether you make $10,000 a year or $10 million, there are some straightforward steps you can take today to ease your personal and/or professional financial stress. All it takes is some commitment, honesty, and a little bit of time.

Organize. You should have a system in place for managing incoming bills and other paperwork related to your finances. Some people prefer the conventional pencil and paper method, while others use software such as Quicken to track their income and expenses. You may like to pay your bills online through your bank’s website, or you might want to write and mail checks to each payee. The best solution is the one that you feel most comfortable using and is efficient for your needs. Furthermore, make sure you have a set place for where you pay your bills and a regular schedule of when you do it. For most people, twice a month is sufficient, but you have the freedom to create your own schedule. Tip: If you pay your bills online, consider taking advantage of the easy pay feature that your bank or payee probably offers, in which the amount is automatically deducted from the account of your choosing whenever a payment is due. This works best for bills that are generally the same amount each time, such as a mortgage or auto insurance payment. By having an organized system in place, you won’t have the stress of overdue or forgotten bills.
Track. In order to further reduce stress, you need to have a full picture of your financial situation. The first step is by tracking where every penny goes so you can get an accurate picture of any overlooked expenditures. For example, that $3 latte may not seem like much when you stop for it a few times a week to start your day, but by tracking even small purchases like that one, you may find that you’re spending the equivalent of a week’s worth of gasoline by the end of the month. How about investing in a cappuccino maker instead? It may wind up costing you less in the long run.
Set goals and plan. Now that you know where all your money is going, set both short-term and long-term financial goals. Perhaps you want to save up for a summer vacation; that would be a short-term goal. Saving for your children’s college education or your own retirement, however, would be a long-term goal. Using your current income and mandatory living expenses, plan for the life you want to live.
Budget. You’ve organized your finances, tracked your expenditures, and set your goals. Now it’s time to create your budget. Most people work out a monthly budget, including your income, living expenses, and a discretionary fund for spending money. Decide what you need to do to live within your means. Refer to your budget often and adjust it as needed.
Find a part-time job. Doing something that takes a few hours per week can help you supplement your income and reduce financial stress. Consider your family’s schedule, and when you might be able to work. Would a set schedule work better for you, or is flexibility important? Do you want someone to give you a schedule, or would you rather set your own hours? Making these decisions will help you find a part-time opportunity that can help you reach your financial goals.

The key to reducing financial stress is knowledge. It may not always be easy to take a hard look at exactly where you stand, but it is essential to meeting your personal and professional goals.

How do you reduce the stress of finances? Please share your ideas with us below!

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DSEF & CBBB: Get More Money Now

DSEF & CBBB: Get More Money Now

This is the name of a pamphlet published by the BBB some years ago in partnership with the FINRA Investor Education Foundation. It is still helpful today. Who couldn’t use more money, right?

The sad truth is that many of us were not well-educated about how to use money…if we were educated at all. I remember a class in high school called Consumer Economics. All I learned from it was how to properly make out a check! And maybe balance a checkbook.

But how do you save for goals? Handle medical expenses? Improve your home? Pay all your bills? Take care of your student loans? Take care of your pets’ medical expenses? If you’re like me, you’ve already thought about finding a cheaper place to live or brown bagging lunch more often.

Here are some additional tips from the FINRA/BBB publication:

Lighten your load. Pay priority household expenses first, in full.
Take care of bills right away. This will help you avoid fees and penalties and it will improve your credit.
Get rid of high-cost debts. Don’t just pay the minimum balance—pay as much as you can and avoid extra purchases, until the debt is gone.
Don’t max out your credit cards. This hurts your credit rating, and increases interest rates.
Pay the monthly bill for your goal. Decide how much you can afford to spend on your goal. Then put that money aside each month, just like you would for the rent or house payment.
Remember your goal before you spend. Ask yourself: once I get this thing home, will it make me happy? Do I need it or want it? Will it get me closer to my goal? Once you handle basic expenses, try to spend on things that will help you achieve your goal.

And remember, you can keep more of your money by paying attention to the real costs of services. You’ll be singing all the way to the bank if you can avoid:

Bounced check fees.
Payday loans.
Check cashing and wire transfer service fees.
Tax refund anticipation loans.

For more tips and resources, check out www.finrafoundation.org and www.bbbmoneyhnow.org.

DSEF and Council on Better Business Bureaus (CBBB) fosters honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visitwww.bbb.org/us for more information.

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Saving Up For Something Big

Saving Up For Something Big

Guest post by Michelle Willits, CUNA

Second grade: Nintendo DS. Fourth grade: iPod Touch. Sixth grade: Alienware computer. As my son nears the teen years, he has more expensive items on his “big wish” list. He knows our budget can’t handle purchases like that, so he is working to save for it.

After becoming a single mom, I put even more emphasis on sticking to a budget. He’s aware of how much his shoes cost and steers clear of the expensive ones that his classmates have (and outgrow quickly). He likes to calculate cost per unit for me at the grocery store. He declines my offers to bring home dinner from Subway or McDonald’s, citing the cost. (It’s not the money, sweetie. It’s “Mom is too darn tired to cook tonight so she’s spending the $11.74 for dinner.”)

We talk about how you have to save for the big stuff—he saw me do that when I bought my road bike last year. I took the money previously allocated to craft supplies and redirected it to my bike fund. What’s nice about that? I have an awesome bicycle that gets me out and moving, and I have a lot fewer unused or unnecessary supplies stacking up.

Once he decided he wanted the DS and, later, the iPod, he saved everything. All of his allowance, all of his birthday money, all the “fun money” that his grandparents and aunt sent him. When he got a pre-paid gift card, he “sold” it to me in exchange for cash that he could save.

My 12-year-old’s funds are primarily electronic. Every month, I deposit his allowance into his credit union account. Any money received as a gift, he gives to me to take to the credit union. (I’m lucky—I have a branch on my work campus so it’s convenient for me to make the deposit for him.) I bring back the deposit slip, and he knows where he stands.

Now, my son’s goal is a high-end computer system that can handle graphics-intensive online video games. Pretty much every penny is going toward the computer fund.

Well, almost.

The $2 he earns per week taking out the trash for our elderly neighbor? Generally that goes to buying songs or apps from iTunes. I admit, Mom doesn’t begrudge him when he may want a couple of extra songs. I’m pretty sure my mom covered the cost of a Commodores, Styx or Billy Joel 45 for me on a few occasions.

Even cooler, he is doing research to find out what computer would make the games run better, what keyboard and mouse are compatible, and what speakers have the best sound. He’s investigating the how-to for using his TV as a computer monitor, bringing his overall cost down. He’s determined to get the best computer system for the money he has, and he’s willing to save until he gets there, which looks like mid-August at this point.

I’m just afraid his next savings goal is going to be … a car.

Michelle Willits is manager of new alliances at CUNA Strategic Services in Madison, Wis. She joined Credit Union National Association in 2003 as a web associate editor for News Now. Michelle worked in newspapers in Montana, Illinois, Colorado, and Nevada before moving to Wisconsin. A 1988 graduate of the University of Montana-Missoula, she is involved with the UM Alumni Association House of Delegates and the UM Alumni Band. Her 12-year-old son rocks.

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How to Reach Your Sales Goals

How to Reach Your Sales Goals

You can make your sales goals whatever it needs to be. If it needs to be a full-time income or if it just needs to be monthly gas money or disposable income, then it can be that as well. Whatever your reasons, you’ll need specific goals in place. Here are some suggestions that will help you achieve our objectives.

Know what makes your customers happy. Your customers’ satisfaction may come in the form of product, excellent service, convenience, a personalized shopping experience, or any combination of those things. Part of your job is to find out what you can do to make your customers happy. For example, one of your customers is placing a rather large order at a home party. You give her the subtotal, which she had already calculated in her head. However, when she hears the grand total that includes tax and shipping, she is unpleasantly surprised by the steep price of shipping, and starts to hesitate about wanting to place such a big order. You can help make her happy in any number of ways. Perhaps offer discounted or free shipping if she gives you three referrals or books her own party; another idea would be to send her home with a free gift to thank her for her business. Don’t let a customer walk away because you weren’t willing to find out how to make the person happy.
Identify customers you can make happy. A harsh reality is that not everyone is able to be satisfied by services that you can provide. Don’t waste your money or time trying to reach clients who do not have a need for your product. Focus instead on your target market; what types of people would benefit the most from your product or service? Identify them by age, marital status, lifestyle choice, personal interests, etc. For example, if your company specializes in educational books and toys, your target demographic consists of parents and/or educators of young children. For the most part, adults without children don’t have a use for your product line. Sure, there will be the occasional non-parent who wants a gift for a nephew or friend’s child, but that is not where the bulk of your sales will originate. Your business will benefit from knowing whose needs can be satisfied.
Know that each client has a unique problem to solve. You’ve already heard that a key component of direct selling success is to market your product as a solution to a problem. You should also be aware that different customers will have different problems. Your customer who works full-time and often travels on business may be looking for quick and healthy meal solutions that she can take on the go. This problem, albeit similar, would require a different solution for the stay-at-home mother of three whose demand for quick and healthy meal solutions also includes something she can make a lot of for her large family and have enough for leftovers. The more you can find out about a client, the better able you will be to personalize your services.

When setting your sales goals, keep in mind the basics of how to make a sale, but as you grow your business to meet your needs, focus on what you can do to find the best return on your efforts. What do you think should be added to this list? Please share your ideas below!

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Questions to Improve Your Business

Running any kind of business requires a lot of self-awareness and self-reflection. Self-awareness helps us use our strengths to their fullest potential and minimize our weaknesses, while self-reflection allows us to improve upon past mistakes. In order to tap into these two qualities and improve your business, ask yourself the following questions to focus your energy in all the right places.

What do I do best? Perhaps you have a unique way of making people feel comfortable, getting them to talk about themselves, and leaving a positive memorable impression on them. Harness your strengths into selling power for your business. Make it a point to chat up as many guests at a home party as possible, and conduct your networking opportunities face-to-face when you can. Whatever you happen to be good at, find a way of incorporating it into your business because you’re not just selling a product; you’re selling yourself.
What is my product’s best solution? The product or service you sell must be the solution to a customer’s problem. Most likely, it has several uses. Decide which is most valuable and desirable for consumers and emphasize it in your demonstration and marketing efforts. For example, your company’s line of educational books for children comes with a trade-in program for customers who make at least one purchase every six months. This solves the all too common problem of children’s rooms being overfilled with books they’ve outgrown. Such a unique and valuable solution to a problem plaguing most parents should definitely be one of the first things a customer learns about your product, as it sets it apart from competitors.
Where are most of my sales coming from? This applies to both your demographic and your method of sale. What is the profile of the customer who is buying the most? (Businesswomen between 25-45 years old, mothers of young children) How are those sales being made? (online, at a home show, through referrals) Analyzing your sales will help you maximize your marketing efforts so you get the greatest return on your investment. It will also reveal any dead-ends you may have been unknowingly pursuing.

You’ve asked the questions; now what do you do with the answers?

Make the best use of this information by creating an action plan. Set a goal (be specific with numbers and deadlines), create benchmarks, plan rewards for yourself, and map out your path to completing the goal. If your goal is to implement a target marketing campaign, use the information you have about your strengths to come up with a way to execute the plan. Identify the solutions your product provides in order to hook your target market, and plan sales methods that will reach them. Now your business approach is based on proven information about just a few elements which are essential to improving your business.

Being aware of yourself and being willing to reflect on past actions are two qualities that can make you a strong business owner. Remember to always be honest with yourself about the answers to these questions, and commit yourself to putting your action plan into effect. What questions do you think should be added to the list? Please share your ideas below!

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DSEF & CBBB: Can You Get Rich Quickly By Flipping Houses?

By Holly Doering

This weekend, a company is coming to my town to hold a free seminar on “flipping” houses. According to our state’s Department of Labor & Industries, flipping is defined as owning a property for less than one year, making more than $500 in improvements, and selling the property with the intention of monetary gain.

The company in question has advertised in the past that you could earn between $3,000 and $10,000 a month with their program. Now they just say you’ll earn cash and build a massive residual income stream. It’s supposed to be pretty easy. Sound like a sweet deal?

Not so fast. Here’s the rest of the story:

1) While initial seminars are free, additional seminars cost $1,500. You’ll also be encouraged to invest in more training—up to $25,000.

2) Fox Business says that to make a living flipping houses, you’ll need to have at least half a dozen going at once. Other sources caution that flipping isn’t for the financially strapped—it requires cash reserves.

3) Even if you only flip one house per year, your state may consider you a “contractor,” which means you’ll need to be licensed, bonded, and insured with L&I. If the IRS considers you a “dealer-trader,” you’ll have to pay self-employment taxes.

4) This company has earned an F rating with the BBB, based on a government action alleging deceptive trade practices and consumer complaints reporting trouble canceling purchases and obtaining refunds. Always check the track records of companies atwww.bbb.org before doing business.

According to MSN Real Estate, house flipping is not as easy as it looks on TV. They report that on the original video of the A&E reality show “Flip This House,” there was even a warning stating “Do not try this at home. It’s for trained professionals. You will lose money.”

Making money in real estate is possible. But like anything else, it takes time and effort. If you attend a seminar like the one described above, ask a lot of questions and read contracts thoroughly before signing. (Make sure you get the exact name of the seminar you attended.) Understand any cancellation clauses or refund policies too.

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4 Rules for Business Growth

Do you remember running the 50-meter dash as a kid in gym class? The task was simple: run as fast as you can until you reach the end. Your direct sales business, however, requires a much different approach, one more similar to running the mile; you need endurance, stamina, and a view of the overall task in order to succeed. Growing your business should always be a super-objective you are striving to achieve to stay ahead of the competition, evolve with the industry, and know how to satisfy your customers’ needs. Read on for some suggestions to grow your business for the long haul.

Educate yourself on current trends. You should make it your business to always be aware of where the industry is headed; the last decade, for example, has found the direct selling industry rife with change. The focus has shifted from building face-to-face relationships exclusively to combining those efforts with building online relationships as well. In addition to this virtual internet takeover, the economy has also played a major role in how direct sellers operate their businesses. Did you know that an economic downturn can actually benefit the industry? Always do your research to stay on top of what is happening with the direct sales industry as a whole, not just your particular company.
Evaluate your ideas and seek improvement. This is especially true if you have been working your business for a long time. You most likely have some tried and true methods of marketing, demonstrating products, and recruiting prospects for your downline. Make sure you periodically self-evaluate what you’re doing and continually be on the lookout to better your own ideas. Get feedback from your upline, your customers, and your network. The best way to grow your business is to be a perpetual student; never stop learning.
Take calculated risks. Risk-taking is a necessary element to any business, but since you are ultimately responsible for the consequences, both good and bad, of those risks, really weigh the pros and cons before making the final decisions. When faced with a decision about your business, take into account not only the financial implications, but also those that may affect other aspects such as your reputation, adherence to your company’s policies, or your ability to provide top-quality customer service. While we certainly cannot look into a crystal ball, the key to risk-taking is to be educated enough to make an informed, well-thought out decision.
Brand and market yourself. You are likely one of thousands of direct sellers representing your company. What sets you apart from other consultants? What benefits would a customer reap by choosing to work with you instead of the representative across town? Focus your efforts on becoming an expert in your field, and market yourself as someone who is passionate not just about the products themselves, but what they can do for others. If your company sells products that are environmentally-friendly, your prospects and customers should know why this is such an important issue for you. What is your connection? Why did you choose to do this as your way of earning a living? Decide what makes you unique and begin building yourself into a brand to differentiate yourself from others.

A successful direct sales business is within your reach; look at the big picture, continue developing your talents and skills, and make informed decisions about where to focus your professional efforts. What are some tips you have to add to our list? Please share them with us below!

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Creating Additional Income Streams For Your Business

As an entrepreneur, you’re always looking for ways to increase sales and diversify your opportunities. The business world is unpredictable, but especially in times like these, having the security of an alternate income can be a lifesaver if for some reason you experience a lull in business. Fortunately, there are many ways to create additional income without having to shell out any kind of significant investment.

Teaching, coaching, and consulting are all great ways to bring in some extra cash. All you need to invest is your time, which you’ll use to reach out and offer your services, as well as time you’ll need to prepare a presentation of some kind. If teaching interests you, reach out to local community colleges, libraries, or recreation centers with an idea for a class, workshop, or seminar. Create multiple sessions and offer prospective students a package deal. If teaching isn’t your thing, you might be more comfortable with one-on-one coaching or consulting. Using your skills and experience, you undoubtedly have a lot to offer someone who is just starting out in small business ownership or something else related to your field. The possibilities are limited only by what you’re willing to do, and the result can be very profitable.
Start a blog. Writing a blog can be an effective way to share your expertise with others, market your business, and attract more customers. You don’t have to limit yourself to blogging; create a website that includes how-to videos, customer testimonials, or even guest posts from other industry experts. Earning money as a result of online content can take some time, but the potential for it paying off is certainly achievable.
Listen to what your customers want. Take the initiative by asking your own customers as well as others in your network about what other services/products they would like to see. For example, if you’re in the business of creating gift baskets, ask your customers what other service/product they would like to see. A customer might suggest fun gift baskets for kids. This might be an idea worth exploring. Ideas from customers are often your best source of creating an additional income stream.
Explore your other interests and skills. Make a list of all your hobbies, as well as all the things you do around the home, for your kids and through volunteer work. For example, you might list doing pedicures with your daughters. Since you sell cosmetics, this might become a service you offer. Or besides selling kitchenware, you also love healthy cooking and you might sell an easy to follow healthy cooking program. You want to look for things that compliment what you are doing now and other interests and skills you possess.
Other ideas to explore.
- Create your own How-To-Videos
- Sell other services that compliment your current business
- Personalization services – gift wrapping, sewing, special delivery
- Create partnership with local businesses

With some effort and extra time, you have the ability to find additional sources of income. This revenue can help you get through a slow season or simply help you reach your personal and professional financial goals faster (not to mention expanding your contact list for your primary business!) What other ways can you create alternate streams of income? Please share with us below!

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DSEF & CBBB: Save Money Through Energy Efficient Products…by Double Checking the Claims

Save Money Through Energy Efficient Products…by Double Checking the Claims

By Jason McGlone

Gas and electric costs are rising, and they’re not showing any signs of slowing down. This has many consumers looking for a way to save. Numerous home improvement businesses promise increased efficiency and ultimately huge savings on your energy bills for anything from doors to furnaces to windows. Thing is, the savings they advertise isn’t usually the amount that you or most others will come close to saving.

In fact, the Federal Trade Commission recently settled with several replacement window businesses over ads claiming more savings than they could deliver. For the record, the ads claimed anywhere from a 35%-50% savings. The FTC found that the window companies couldn’t show this kind of savings—the ultimate result of this were significant fines, as well as being prohibited from making similar claims in future advertisements.

BBB urges consumers to exercise caution when shopping for home improvement products and services. Specifically, if a business is claiming energy bill savings, it’s a very good idea to examine how much they’re claiming and to think about whether or not that amount is feasible. Can you expect to save some cash if you’re getting new windows or a new furnace? Sure. How much? Putting an exact figure on it can be difficult to nail down.

There can be many aspects involved in ensuring your home is energy efficient. Are your doors drafty? How old is your furnace? Moreover, what kind of heating and cooling system do you have? Do you keep electronic items plugged in? This is by no means an exhaustive list, but the point remains: no single upgrade will save you “half” on your energy bills.

So, when you’re in the market for any home improvement upgrade, it’s worth paying attention to energy efficient products—they can save you money. But when you see claims that seem too good to be true, it’s time to start asking questions.

For more information on energy efficiency labels, visitwww.bbb.org/blog/2012/04/energy-efficient-windows-are-clearly-better-but-how-do-you-compare.

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DSEF & CBBB: 7 Ways That Consumers are Wasting Money

7 Ways That Consumers are Wasting Money

By Ryan Gillis

Wasting money doesn’t actually mean you are bad with money, it just means that like millions of other Americans, you spend too much money on things that can be easily made less expensive, reports MSN.com. MSN outlines the 7 most common budgetary mistakes:

1. Investing in expensive mutual funds

Mutual funds that charge high fees take large percentages of your returns, so it would be wise to look for mutual funds that charge a low fee rates annually. Any mutual fund that charges less than 0.5% in fees annually is a good number to look for.

2. Ignoring your credit score

A low credit score means less money in your pocket. In many cases, the lower your credit score the more money you will pay on interest rates, and other expenses such as auto insurance premiums. A low credit score can even effect whether or not you get job as some employers take credit score into consideration when hiring.

3. Failing to lower your rates

Many consumers just accept the interest rates that are paying when in reality if they only asked for a lower rate, especially on credit cards, it may actually be effective. In the case of mortgages, car loans and student loans refinancing is the best option for lowering rates.

4. Overpaying for car insurance

Reducing car insurance premiums is not very difficult with a little bit of effort. Auto insurance companies offer a lot discounts, and comparing rates of insurance companies online takes just a few minutes.

5. Buying brand name products

Once consumers get past all of the slogans and fancy commercials, the product that brand name companies put is basically the exact same same as off brand ones. Off brand labels can also save the company a great deal of money, and offer similar quality.

6. Buying too much life insurance

The key to buying life insurance is to only buy the coverage you need at the cheapest price. For this reason term life insurance insurance is more popular than a whole life policy. As lifestyle conditions change, it , may helpful to alter your coverage or even eliminate it all together.

7. Failing to take the company 401k match

Many companies have programs in place where they will match employees 401k contributions to a certain extent. In order to take full advantage of these contributions, it is necessary that the employee contribute a certain amount. By not taking advantage of these programs, employees lose out on free money.

For more information, visit http://finances.msn.com/saving-money-tips/6930544.