Monday, April 28, 2014

Take control of your financial life!

To celebrate financial literacy month (not nearly as cool as cupcake month) financial advisors, estate planners, CPAs and attorneys are teaming up to talk about finances and how being in charge of your financial life is essential.

Did you know your credit score impacts a lot more than just your ability to secure a loan. In most cases your insurance company will run your credit score and base part of your monthly auto and homeowners insurance upon your credit score! Also, renters beware, many rental companies are basing whom they rent to upon your credit score! Being financially responsible is the baseline for getting ahead with your personal finances.

Businesses are also effected by financial metrics. Here are two examples:

1. Many businesses that are in the start-up phase do not have enough business history in order to qualify for a business loan without personally guarantying that loan. For this reason, it is often hard for businesses to secure start-up financing if the owners have less than perfect credit. Also, business loans often require much more paperwork and oversight, so many small business owners take out personal loans or lines of credit to avoid this hassle.

2. As a small business owner you may know that there are certain breaks businesses get when they have a favorable history. Price breaks on insurance rates for months without a claim, or zero percent financing from preferred vendors are just a few tools businesses use to save money. When you have the opportunity to make money using financial leverage you have to seize those chances! Using other peoples money is the ultimate tool in your kit bag for financial success.

If you have other ideas, please feel free to share!

Happy Taxing

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