How to Spend Money Wisely In Online Business

saving and spending (Photo credit: 401(K) 2013)

Understanding how to spend money wisely for the development of your online business is vital to the success of your company. Just as with any business, cash flow is critical and very important. It does not matter if you have the best business model possible. If you squander the funds that you gain as profit from your operation, your success is in jeopardy. 

Before you start operating, you should set specific goals for your online business. Those goals should be supported by clear, complete yet concise company policies. This principle is vital, even if you are operating alone, operating with a few people, or have grown well enough to be considered a medium size business.

If you have not sat down and put the goals and policies for your company, do so before you spend any money on further development. Once that is done, you should make sure you have a plan for putting aside cash savings for at least three months known operating expenses. You should also be saving an equal amount for unexpected costs.

Each month, you should add to cash savings before you pay other expenses of the company. The amount you add should be according to a plan you develop. The sooner you have those savings, the safer the future of your online business will be. Funds available after normal operating expenses and payment into your cash savings plans should only be made if the expenditures for business development meet the following tests.

Does your planned expenditure support your company policies? Are the developmental costs you want to incur going to help your company meet its stated goals? If you can answer yes to both of those questions you can be fairly confident in spending funds for development of your online business for any tax related advice contact Tax helpline.

If you have more than one type of development expense, but not enough funds to do more than one at this time, do not take funds from your savings. Those funds are for normal operation and emergencies. You might put the developmental funds you have available at this time into another stash of cash, until such time as you have the funds to proceed.

If the development you plan can be seen to have an immediate impact on revenue or cash flow, you could consider using a portion of your savings that are for unplanned expenses. Never take funds from those savings meant for future operational expenses.

Tax Deductions in an SMSF: Quick Tips for Contributions and Earnings

One of the most popular reasons to open a Self-Managed Superannuation Fund, or SMSF, is the tax benefits it affords. SMSFs are tax-effective vehicles in part because certain contributions and earnings linked to these smaller super funds receive special before-tax, or "concessional," treatment. Yet, SMSF trustees are warily eyeing the ATO as it sweeps trustee roles for rule-breakers.

In this climate, it's very important to ensure all self-managed super funds comply with the latest regulations. It could mean the difference between a tax rate of 45% instead of 15%. Compliance also frees the SMSF to deduct certain expenses. Let's take a look at the current state of allowable deductions, from life insurance premiums to administrative fees, to discover how the bills can be legally reduced within the framework of a Self-Managed Super Fund.

Rules of Personal Contributions

One way to trigger deductions and maximize retirement savings is by making concessional personal contributions to an SMSF. For self-employed or partially retired workers, personal contributions to an SMSF are deductible on individual returns. Note the cap on how much a worker can contribute in a year. This cap indirectly limits the amount of available deduction.

However, it is possible to exceed the concessional cap—currently set at A$25,000—but doing so means stepping back and paying the government more for "excessive contributions." This would cancel out any deductibility gains and should be avoided.

Of course, it is not possible to claim personal contributions whose sum is greater than the taxable amount. If, for instance, John's income is A$50,000 and he makes A$8,000 in personal contributions to his super fund, how much of his contributions can actually be deducted? A$50,000; deductions do not translate into income 'credits.' In the best-case scenario, the deduction reduces the taxable amount to zero.

Funding Assessable Income

Beyond personal contributions, members can generally deduct those expenses that directly contribute to the fund's assessable income. Normally, a Self-Managed Superannuation Fund incurs some administrative and actuarial costs in the course of sustaining the trust on behalf of the members, and these—including the ATO's levy—are certainly deductible. Some insurance expenses, namely death and disability premiums, may qualify as well.




A lesser-known deduction is the cost of paying out on a life insurance policy if one or more members passes away. This is called the Future Services Benefit Deduction. In some situations, deducting this expense is a smart move that could end up saving the surviving members thousands. It could even prevent them from having to pay taxes on fund earnings for several years.

Earnings from Fund-Held Assets

Tax deductions are also available to offset certain fund expenditures and investments. The most popular deduction depends on the tax-free treatment of earnings from a super pension's assets. Any income or capital gains made on the investments of these assets can be counted against the SMSF's income.

The tax office says over 85% of SMSF deductions in 2010 were based on this rule. It is the main attraction for many retirees who now rely on self-management for maximizing their investments. People who claim these deductions, however, must remember to continue making minimum pension payments every year. It's what qualifies super investment expenses and earnings for tax-deductibility.

This strategy could be profitably deployed by a retired couple, for instance, that wants to combine both taxable and tax-exempt funds into their pension. Read this tax saving through SMSF case study, where SMSF Perth put together a strategy to design a largely tax-free inheritance for their children, while taking advantage of concessional deductions for the taxed money they actually lived on.

Author Bio: Greg Major, Director, Blueprint Wealth:Greg Major, Director of Blueprint Wealth which specialises in Self-Managed Super Funds in Perth, has over fifteen years’ experience in a variety of Financial Services roles within the Banking Sector in Australia. Most recently Executive Vice President with ABN AMRO, Greg has extensive experience across all major wholesale banking and finance fields, including derivatives and risk management, capital markets and structured finance, and balance sheet, liquidity and capital management with experience working across Europe and Asia.

How Important is Your Credit Score After 50?

We've all heard that a credit score can be “built over a lifetime and destroyed overnight.” But once you reach 50 and your long-term financial goals are mostly in order – let's say you have a mortgage, a 401k or an IRA, and a healthy emergency fund – how important does your credit score become?

The answer is that while your credit may not seem as important as it did when you were shopping around for your first mortgage years ago, life's full of surprises and you never know when a good credit score may be necessary after 50. 

Here's a few reasons why it's simply a good idea to maintain a solid credit score after you reach the age of 50...

Unforeseen Financial Emergencies

As most Americans are now aware of in the post-Great Recession era, the bottom can fall out on the economy seemingly overnight. It's safe to say that most of us now have our guard up when it comes to the prospect of a financial emergency, which means preparing for the worst and hoping for the best.

With that in mind, a healthy credit score well into your 50's is a valuable asset for you and your family. Mortgage refinancing, credit advances and loans are all relevant to 50-something consumers, but are hard to get done at any age with a bad credit score.

Basically, it's better to be safe than sorry when it comes to credit.

Existing Debt

50-somethings with existing debt can negotiate better interest rates if their score and credit history is still considered good-to-excellent. This is important to both the individual and their heirs in case they pass away, since assets after a person has passed are distributed to beneficiaries only after their debt has been paid off. If the debt outweighs the estate, beneficiaries aren't saddled with the old debt (unless they're a co-signer on any of these outstanding debts), but they do miss out on an inheritance.

This is all to say that an old debt never dies, but unfortunately we do. (Mordbid, I know.) And to prepare for such a situation is to take action while we still have the income, the assets and – most importantly – the time.

Paying down old debt – especially credit card debt – can take a lot of that precious commodity that we call “time”. One way to expedite this process is by negotiating lower rates with your credit card companies; another is to transfer a sizable portion of that debt to a 0 percent credit card applied to balance transfers. Simply apply for a new, 0 percent card, transfer as much of your existing debt to your new card as you see fit, and start paying it down more vigorously to remove as much of that balance as you can during the allotted 0 percent period.

While both of these options allow someone to pay down their debt at a faster rate, they're essentially reserved for good-to-excellent credit consumers. If you want lower rates, you need a good score, which is why it makes sense to maintain a healthy score well into your 50's and beyond.

The Hassle, and The Guilt

The last reason it's important to maintain solid credit and good-standing accounts is the hassle and the guilt that comes with defaulting and paying late, which are what ultimately drive down your credit scores for good.

The incessant phone calls – which you're legally entitled to stop, by the way, as part of the Fair Debt Collection Practices Act – the scary looking letters (you can stop these, too), and let's face it, the hit to your pride. None of that's worth dealing with at any age, especially when you thought your financial woes were long in your rear view mirror.

Look, it doesn't feel “good” to have bad credit and it certainly doesn't feel good to owe money. Maintaining a good credit score is what you've done all your life, so why let go just because you're unsure of it's worth in 50's and beyond?

No one can tell the future, and it's impossible to say when or how a good credit score could come in handy down the road. But it's best to be prepared if the situation arises; you'll sleep better at night in the meantime knowing you – and your family – will be in good shape in case of a credit or finance-related emergency thanks to your lifelong dedication to paying on time and carrying little to no debt.

This post was written by Jason Bushey. Jason is a personal finance expert and you can find his work daily on www.creditnet.com.

Are Short Term Loans Right For You?

During the present economic condition, it becomes often very difficult to meet up all your needs with the regular income. After all, you have to pay off all those medical bills, utility bills and education bills. Moreover, emergencies are always there and you have to arrange the money somehow. In situations like these, applying for traditional credits from banks or other financial organizations, doesn’t seem to be very feasible as the process is a bit time consuming and involves lots of formalities as well. 


As an alternative to these types of conventional loans, short term credits or cash advance loans happen to be popular options. Since you don’t need to provide a huge number of documents and the process, too, is completed within a short period of time, these financial alternatives seem to be popular way outs among people. Moreover, you can get approved for these credits even if your financial history is not-so-fair and if you have a bad credit score. However, while applying for such types of loans, you need to keep certain factors in mind –

· Do you really need the money? – The fact that there are plenty of financial alternatives available in the market and you can easily get approved for them nowhere means that you can apply for one every now and then. In fact, taking too much loans and then being unable to repay them within the given time will affect your credit status and gradually will lead you to a poor credit score. Hence, make sure you need the money desperately and then, apply for these loans. For example, if you want to go on a vacation, but can’t plan it due to lack of money, don’t apply for a short term loan. Remember, these credits should be applied for only for unexpected expenses that you have to pay off.

· Try to cut down the borrowing as much as possible – Make it a point to borrow as less as possible amount of money. This is important because these types of credits always involve high rates of interest and the more amounts you borrow, the greater amount of money you would have to pay to the lender.

· Shop around a bit before taking the loan from someone – These types of credits are available both online as well as with unconventional sources like personal lenders. You can even ask friends, family or someone from your acquaintances if they can lend you the money for a short period of time, probably till when you receive your next paycheck. While shopping online, check out the different sites – compare the rates of interest and other charges like application fees or processing fees. Check out if the lenders ask for an early repayment charges. Considering all these factors, choose the deal that suits your need best.

· Go through the Terms of Service carefully – Well, this is quite an obvious task before signing any kind of deal. But being in a hurry, you may miss out something very crucial. Make sure you understand all the terms and clauses perfectly before signing the agreement.

Author’s Bio – Sam Payn is a well known blogger who has been associated with guest blogging for a number of years. He specializes in writing on topics related to finance, loan, insurance etc.

Deterring Burglars on a Budget: Inexpensive Security Ideas for the Home

A Honeywell home alarm system control panel. (Photo credit: Wikipedia)

Approximately 73.9 percent of all burglaries target residential properties. More than two million burglaries took place in 2010 alone. Protecting your home doesn't have to put a dent in your budget when you're smart about using affordable solutions.

Secure the Windows and Doors

This may seem obvious, but the FBI reports that nearly a third of all burglaries in 2010 were unlawful entries without force. Unsecured doors and windows are like a welcoming invitation for intruders. Upgrading or installing locks on windows and doors is affordable and extremely effective. Place a wooden stick in the track of sliding doors so they can't open. Drill a hole in your window frame where the top and bottom portions overlap and insert a long nail as a backup if the window lock fails. Make sure everyone in the family uses the locks regularly.

Tidy Up Your Landscaping

Trees and shrubbery offer excellent hiding places for burglars. Take a close look at your landscaping. Could someone hide in the bushes beneath a window while prying it open? Do overgrown tree branches offer lots of dark shady areas around the lawn at night? Make some alterations so your landscaping is sparser, making it more difficult for criminals to hide.

Brighten Things Up

Proper lighting deters criminals both inside and outside the house. Motion-activated lights around the garage and doors are an excellent way to turn burglars back. The lights alert you to movement outside the home while illuminating the burglar's activities. When you're away, set timers on lights inside the house so it always appears as though someone is home.

Consider an Affordable Alarm System

Not all alarm systems are expensive. There are many affordable options that will give you protection and peace of mind on a budget. Browse a site like TopHomeAlarms.com for an idea of what your options are. The mere presence of an alarm system deters burglars, so don't think that only the pricey options are worth your money.

Get a Dog – Or Simulate One

A dog is a major deterrent for burglars. If you're a fan of these furry friends, by all means add a canine companion to your family for added protection. If you're not ready to bring a pet into the family, you can make burglars think you have an animal instead. Motion-activated alarms are available that play the sound of a dog barking when someone is outside the door. A "Beware of Dog" sign and some proper accessories, like dog toys, in the yard will enforce the illusion.

Get to Know Your Neighbors

If your neighbors are familiar with you and your family, they'll recognize when something isn't right and an intruder is lurking around the house. Neighbors are also able to make it look like you're home when you're out of town by picking up mail or leaving some of their trash on your curb as well as their own. Leave spare keys with people you trust and never place them in false rocks or hideaway flower pots.

Don't leave your security to chance. Take these low-cost measures to protect your home now.

Gambling : One of the 50 Pluses Favorite Retirement Activities

(Photo credit: Wikipedia)

According to the Las Vegas Convention and Visitors Authority (LVCVA) the average age of a Las Vegas visitor is 51 years old. I have traveled and vacationed there many times over the years and I can confirm this statistic. 

I might even say that the age stated is on the low side. I can see how the 50 plus age group enjoys their trips to the casino. Gambling may be their favorite recreational activity and maybe even the most favorite activity next to travel. 

Gambling at casinos is a more popular leisure activity than it has ever been - which is primarily due to the rise in online casino sites, which have enabled people to play games like poker, roulette and online slots from home – or any other location, thanks to mobile casino apps. 

This has made playing casino games far more appealing for people, but also means that the need for people to be aware of responsible gambling is greater than it has ever been before. 

At the heart of gambling responsibly is working out a financial budget, based on what you bring in each month, so that you know what percentage of your income you can afford to spend on gambling per month. 

You should budget based on what you can afford to lose, rather than what you hope to win, as this way any winnings are a happy bonus – rather than something you are dependent upon to prevent yourself getting into financial trouble. Once you know what you can realistically spend, put that money in an account separate from your main one, to ensure that you do not have the temptation to exceed it. 

It is also very important to limit yourself in terms of time spent gambling, because otherwise this can easily cross the line from being a fun leisure activity to an out-of-control addiction. Again having a limited budget will help you to maintain the time limits you impose per week, and you will find yourself sticking to those limits to ensure that your allotted gambling budget lasts throughout the month. 

Limiting the time you are allowed to spend gambling per week will also reduce the risks of falling into common traps like trying to win back money you have lost by continuing to gamble and bet more. This generally leads to even greater losses, and is not a responsible way to gamble.