Monthly Archives: August 2010

Five Property Investment Tips

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“When buying a property for investment there are some traps you should be aware of: – 1. Don’t imagine yourself living there – you are likely to make the buy decision based on your emotions. A rose garden won’t bring you cash flow. Instead, ask yourself what sort of tenant would live there. Find out if there are supporting infrastructures in place to attract the most kinds of tenants possible. That is, business couples, families and single people. 2. Remember that bargains can be had all year round – you just have to look for them. 3. Work out how much you can afford to pay and walk away if you can’t get it. There are plenty of other houses for sale. 4. Location might be the top or only criteria for a homebuyer, but for an investor there are two other important factors; finance and management. The right kind of financing will give you that all-important cash flow, while good management will ensure you get top returns from a good tenant. 5. Once your real estate portfolio increases, make sure you have a balance of types. Everyone wanted a large family home years ago; nowadays the trend is for smaller families and so smaller homes and apartments are in demand. If you have some of each, you’ll always be covered.”

The first step to buying an investment property is of course financing. From a construction home loan to a fixed rate home loan there is a wealth of financing options to choose from, so you should research these carefully.

5 Tips to Achieve a Successful Owner Financing

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In today’s buyer’s market offering owner financing can open your home to a new area of prospective buyers, especially if you’re selling your home for sale by owner. However, there are 5 simple guidelines you should follow if you’re looking for a successful owner financing transaction.

1. Review Buyer’s Credit Reports

If you have a prospective buyer for your home, you should gain their permission to pull their credit reports before entering into a binding contract. The cost of obtaining a credit report is a small price to pay when compared with the money you could lose and the trouble you could face of having to foreclose on the house if you’re using owner financing.

2. Using a Mortgage Company

Make sure any potential home buyers are qualified to purchase your home. You can request that they be pre-qualified for the purchase price of your home through a mortgage company, even if you are going to enter into an owner financed agreement. Make sure that the home buyers have proper employment and income to afford the taxes, insurance, and payments for your home.

3. Have the Paperwork Professionally Drafted

You can use a title company, real estate attorney, or, if you’ve purchased a bundle package from a realtor designed for sale by owners, most of the time they include the preparation of the paperwork. If they do, you will still want to have any purchase agreement and/or closing papers reviewed by a real estate attorney.

4. Dealing With the Down Payment

If you are going to offer owner financing, you will want to ask for a 10 to 30 percent down payment to protect yourself in the event your buyer stops making payments and you have to foreclose on the house. The larger the down payment the more protection as a seller you have.

5. Interest Rates

You will want to charge an interest rate above the current rate the buyer could obtain if he/she went through a traditional financial lending institution. This will encourage your buyer to refinance and pay you off quicker.

Owner financing is a great way to sell your house in today’s market, regardless if you are a for sale by owner or going through a Realtor. If you opt to offer your home for sale using owner financing, you should take every reasonable attempt as outlined in this article to protect yourself and have a successful transaction.

Tips for Finding a Great Deal on Vendor Financing

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You may have already decided that vendor financing is something you should practice further. If you want to start your business with both feel firmly on the ground, it is very important to find a great deal on. You don’t want to look down and realize they are in a pile of quicksand either. Vendor financing has become a great loophole for those that find the doors being shut in their face when they turn to regular lending institutions.

You are buying products from a certain company with them financing them. Therefore you may feel obligated to go with their rates for items. You should be familiar with pricing before you agree to work with a given program. You don’t want to be paying too much for the ability to get what you need right now. You also want to try to explain that you can get a better deal somewhere else if you can. They may be willing to match it or beat it in order to keep you interested in their offer.

While your business is going to be unique, the offer through vendor financing should be customized. If the offer is only a one size fits all deal then it isn’t going to be what you need. The individuals distinctions for your business can be a strength but only if you have the right support for it. When you find a good vendor financing program that can offer all of that for you, the rest of it can nicely fall into place. Otherwise you risk huge barriers and roadblocks appearing at every turn.

You are better to schedule several consultations either in person or over the phone. These should be offered to you free of charge. If you get told to simply attend an informational seminar, which is a kind way of blowing you off. Firmly tell them you would like a consultation before you decide to go to the seminar or not. If they can’t make the time for you then you should keep looking for a great opportunity somewhere else.

It is vital to understand that there is a great deal of variety and flexibility out there when it comes to vendor financing. That can be a valuable asset to you if you know about it and use it to your advantage. However, too many people fail to do so and that means they end up assuming every program is just like the others out there. It is this very attitude though that will find you with a program you aren’t fond of in the overall scheme of things.

Make sure you listen to your intuition though as well. Too often we push such thoughts and ideas from our mind. We often feel guilty for having the due to the fact that they just don’t have a lot of concrete evidence behind them. Yet if you feel a nagging feeling that a vendor financing program is right for you then it just might be. Pursue all you can about it to know for use. You also don’t want to ignore feelings that a program isn’t right for you. A free consolation certainly doesn’t obligate you to any more than that.

By investing your time to weigh the advantages and disadvantage of every vendor financing program you find that fits your needs, you can get the very best deal. Lower prices and lower interest rates can add up to a huge pile of money being saved for you over the long term. There are some great offers out there with vendor financing so make sure you invest the time to seek them.

Tips For Getting A Used Car Loan

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Getting yourself a used car is certainly a great way to save yourself a bit of money rather than buying a more expensive new car. There are some things to watch out for when trying to buy a used car, as you may face some issues depending on the type of lender that you are trying to get one through. Even though the process of getting a used car financing online is very quick and painless one, there are some additional factors out there that might make the process a little difficult for some people.

When you are looking to get yourself any type of used car loan the first thing that you are going to want to do is to make certain the the used car you are looking to buy is worth the value of the used car loan that you are looking to take out. There are some dealerships that are known to attempt to sell a used car well above the value of it which can put you in a pretty precarious situation by being in an upside down car loan right from the start. An upside down car loan is where the cost of the loan is more than the actual worth of the car itself, and is something to be avoided at all costs. You can avoid this by knowing the true value of the used car that you are looking to buy before you attempt to get yourself a used car financing. Do this by checking the blue book value of the vehicle through a site such as Kelley’s blue book. If you attempt to get yourself a used car loan on a car that is valued less than the loan, you may have trouble getting the loan itself.

Another thing for you to consider when getting yourself a used car loan is that you do need to trade in your old used car before getting yourself another. Most of the time you are likely going to be better off selling it yourself and using that money towards the cost of the loan in order to lower the interest rate on the used car loan, and in turn the overall price that you are going to paying on the loan through the duration of its cycle. Most lenders will provide you with a better deal on a used car loan with lower interest rates if you are able to provide them with a nice sized down payment up front. Taking advantage of this, will allow you to save yourself a lot of money down the line.

The last thing for you to consider is that most lending institutions will not take the risk on issuing a used car financing on cars that are older than four years old because it becomes a much higher risk to them if you end up defaulting on the loan. So make certain that the used car that you are looking to purchase is fairly recent and is worth it to the lenders so that you are in a position to get the best possible deal on a used car loan that you can get without any unnecessary hassle involved.

Tips On Personal Finance And Debt Management

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If you are in debt, you need to reduce and eventually clear your debt first before anything else. The key to debt reduction and elimination is your own commitment and discipline. The steps for debt reduction and elimination are very simple. The challenge is to stay the course.

Stop Further Debt

Excessive borrowing is the cause of most debt problems. You should only borrow what you really need. Keeping proper records of your debt and do not lose sight of your objectives. Your debt should be for the short term and you should aim to clear them within a few months. Do not let your loans balloon into debt problem.

Reduce Your Expenditures

Make this an obsession. If you take the bus or train to work instead of driving, congratulate yourself on the money you are saving on gas and parking. If you have packed lunch instead of spending money at the cafeteria or expensive restaurant, congratulate yourself. You would have saved up to $3000 a year. Money which will go some way to reducing your debt.

Reduce Your Debt

Try to consolidate your debts and secure a lower interest rate. Start paying more than the minimum sum and set a target date to clear your debt. This is the only way to reduce your debts. To achieve this, you need a proper budget.

Make a Monthly Budget

One of the most effective and important money management tools is the budget. Coming up with a budget is fairly simple but you need to have the discipline to stick to it. A budget is simply a schedule of your earning and what you need to spend. The key words here are “what you need to spend”. Be prudent and frugal with your money, you are already in debt, what other reason do you need? The key to good personal finance management is to spend within your means. To curb impulse spending, try leaving your credit cards at home.

Get Into a Debt Settlement Program

If you a huge debt, think about getting into a debt settlement program. If you want to do it yourself, you just need to contact your creditors to inform them about your plan for debt settlement. Most financial institutions are open to debt settlement proposal so you should not hesitate to ask them for better terms. Most financial companies will allows up to 40% to 60% reduction on loans amount payable. Negotiations can be quite tricky so you can consider hiring a debt settlement company if you are not up to it.

Proper personal finance and debt management will allow you to get ahead in life. So make sure you are dedicated and motivated to do what it takes in order to provide a sound financial life for yourself and your family.

How to Obtain Home Improvement Financing

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Whether you are renovating a bedroom or adding a patio deck, you are going to have to plan for the costs associated with the renovation. When planning a home renovation project, it is important to choose the right home financing plan that meets your needs.

Choosing the right home financing plan depends on the length of the project and how much you can afford to pay for the project, When you take on longer repayment terms, you will have to pay more because of the interest rates, however your monthly repayment fee will be lower. By determining the length and costs of the project first, you will have an easier time choosing one of the following home improvement finance plans:

1. Unsecured Loan: Often referred to as a personal loan, an unsecured loan is a loan that is not secured against your property, but against your credit rating. This type of loan is usually taken out for smaller projects. You can obtain a personal loan from a bank or lender. .The interest rates usually vary according to market conditions.

2. Secured loan: A secured loan is a loan that uses the assets of the borrower to ensure repayment of the loan. When you borrow money against your house or vehicle, the lender is guaranteed to retrieve its money if you fail to make the repayments.

3. Home Improvement Mortgage Refinance: Refinancing your mortgage at a fixed rate allows you to use extra money for your renovation project. The repayment schedule is usually for 20 or 30 years, or the term of your mortgage

4. Home Equity Loans: A home equity loan involves borrowing against the equity in your home. You can receive a lump sum to pay for your renovation project. Obtaining a fixed rate will make repaying the loan much easier. If you fail to make your payments, you are at risk of losing your home.

5. Home Equity Line of Credit: This type of loan works by giving you an open line of credit. This type of loan does not usually have a fixed rate so interest rates depend on market conditions. This type of loan is good for ‘pay as you go’ renovation projects.

6. Bank Loans: Bank loans are usually taken out for small renovation projects as they have to be repaid within a few years. Make sure you check to see if you have a fixed rate loan so you will not be dependant on fluctuations in the market.

The following is a list of tips to help you obtain the best home improvement financing plan:

Know Your Final Costs: Before seeking home improvement financing, add up all the costs associated with the renovation project. Make sure you allow for unexpected costs.

Affordability: Make sure you can afford the repayments. Make a list of monthly expenses including your mortgage to make sure you have enough money to repay the loan. Determine the amount you can actually pay each month.

Compare Financing Plans. Don’t settle on the first renovation financing plan. Check with three or four different lenders to see if you can get a better deal. It pays to shop around.

Find a Reputable Lender: Make sure you obtain a loan from a lender that is known for its fair rates and honesty. Read the fine print for any home improvement financing plan. Make sure you know if you have a fixed or variable interest rate.

Because home improvement projects vary from person to person, there are many types of home improvement plans available. To acquire the best home improvement loan, it is important to do your research. No one wants to mistakenly add debt from a project that was supposed to add value to a home.

Watch Out FOr Auto Financing Scams

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Car dealers are often portrayed as predators just waiting for an unsuspecting customer to come along. This is because many people believe that they are always on the prowl for unsuspecting buyers that are not very knowledgeable about cars. This can be unfair because we can argue that there are car dealers out there who would not cheat just to get an extra profit.

How do you tell the difference?

To avoid becoming a victim of sneaky car dealers, look at the following auto financing scams.

Yoyo scam

You will be allowed by the dealer to bring the car home as soon as possible. The dealer will take care of the financing, a few days later he will contact you again and tell you that there was a problem with your financing plan. He will tell you to set up a new financing scheme through him which, of course, will be at a higher cost and this will also entail a very high profit on the dealer’s part.

Be wary of this trick and avoid it at all costs if you detect it. If you have a bad credit standing, don’t have your financing done by the dealer and make arrangements for your own financing. If you ever do avail of the dealer’s financing, you should never drive the car back to your home immediately. Wait for at least 24 hours just to make sure that the processing of your financing scheme has been completed already. By allowing 1 whole day to pass by, you are assured that the dealer cannot use this scam on you.

Window etching trick

Window etching is a very common scam. What the dealer will do is to offer to etch the VIN number of your car onto the window of the car for a price. Basically, the price ranges from as low as $300 to as high as $1,000. Some buyers think that they did a good job by being able to talk down the price to a few hundred dollars, but unfortunately for them, a few hundred dollars is still a good amount of money. The best way to avoid this kind of scam is for you to buy an etching kit that you can do on your own. This is available in most auto shops and costs around $20. See how much they profit from you!

Preparation fees

For preparing your car, the dealer will often add an additional preparation fee to your bill. Just to conduct a test drive, replace fuses, or take the car’s plastic cover off will have your bill increasing by at least $500! If you visit other shops, you can get the information that these add on costs are already included in the MSRP as set by the manufacturer. Some dealers automatically add it to the buyer’s order to make it look mandatory. To take care of this scam, you can ask the dealer to classify it as credit (it should be identical to the amount of the preparation fee) on the following line. If the dealer does not agree to this, you can just simply walk away from the dealership.

Market adjustment

The dealer will convince you that the vehicle you want is selling like hot cakes and very popular. In order to sell you the vehicle, they will do some “market adjustments” amounting to a few thousand dollars. This is usually indicated by a tag near the MSRP tag set by the manufacturer. Even if the car you want is very popular and is very much in demand, if it is in stock you should not be tempted because getting a “popular” car is not worth it if you have to pay a few thousand dollars more. You should never pay more than the MSRP set by the manufacturers. If you do, then you are allowing others to take advantage of you.

Warranty extension

Although this type of scam is old already, it is still being used and there are many who fall for this trick. What happens in this kind of scam is that when you make a loan for the car, the dealer will tell you that you are required to purchase an extended warranty because it is one of the conditions of the bank. There is a simple way of avoiding this scam. Ask the dealer to specify clearly in writing that the extended warranty is required for the loan to be approved. The dealer will most probably find a way to have it excluded. If he persists in including the extended warranty, do not do business with this guy and go to other dealerships.  

These are some of the most common auto financing scams that are utilized by some car dealers. Always keep these in mind if you are going to buy a car. If you or a friend were treated fairly by a dealer in the past, consider using the same dealership again. It’s a good indication that they do care about their customers and aren’t just looking for a “fast buck.”  

Think very carefully and do not buy on impulse. Good luck to you and go get that car!

Tips for Financing or Refinancing Your Car Loan

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Here is a list of things that I did recently when purchasing my latest vehicle to get a good interest rate. You can apply most of these to either new or used car loans.

Always get your financing first before shopping for a car

When buying a new car, if you have financing already in place, it’s much easier to negotiate over the price of the car if necessary. If you are pre-approved, you know exactly how much you can spend and the monthly payment. Try to get approved for a little more than you think you will spend, just in case.

The 0% financing trick – 0% financing or cash back rebate?

Don’t be fooled by 0% financing, unless your credit is almost perfect, you won’t qualify. If you do, you probably be required to pay the loan off in 2-3 years, not 5 like most loans. Be sure you know the amount of interest you will be paying over the term of the loan with your pre-approved amount in advance, because you might pay less total interest than the dealerships financing and want the cash back rebate.

Have your paperwork and check ready before you go

If you get pre-approved online for say $20,000.00, some companies will mail you a blank check and a letter to show the car dealership. This could take a week or more to receive in the mail. If they don’t offer to send it overnight, it might be worth it for you to pay the $15-20 fee. The finance person at the dealership will call the loan company after you’ve made your purchase and advise the amount of the check. Bonus – you will have to sign less than half of the usual paperwork!

Shop Online for a car loan or auto refinance

Whether it’s for a first finance or refinance, the rates you can get these days by shopping online are great. There seems to be more competition and that’s good for you. Make sure you are on a secure page before typing in your social security number.

Consider having an automatic deduction from your checking acct.

I saved ½ a percent on my recent auto purchase by letting the loan company set up my auto loan as an automated monthly deduction. They let me pick the exact day I wanted it. On a side note, if you have a few bills paid this way as I do, you might want to pick the same day for all. It’s easier to remember to write it in your checkbook and make sure the funds will be there when the auto debits hit.

Try to spend within your means

I know this seems obvious to some, but you need to plan on the additional expenses. Call your car insurance company before purchasing the vehicle, and ask for a few quotes for your new insurance premium. You may be surprised that the new Honda you were looking at is classified as a sports car. Better to know in advance than after your purchase. Don’t forget, your registration will be more too.

Refinancing your vehicle can help your credit

If you are having trouble paying your bills and have at least 2-3 years left on your car loan, this can be an excellent way to reduce your monthly expenses. You’ll pay more in interest, but it may be worth it to keep your bills paid on time and your credit score up. Be sure to refinance before your payments are too late or you’ll have to pay higher interest. Also, I would refinance before I made payment arrangements with my creditors if that’s also needed, because you don’t want “payment arrangements” showing up on your credit report when your trying to get approved for the refinance.

Bad credit auto financing

These days more and more companies are willing to finance a vehicle even if your credit is bad or you’ve had a bankruptcy. You’ll pay higher interest, but again shop around and online. It will be better to get at least an idea of what you’ll have to pay before going to the dealership. You may get approved for 12-16% online and 16-20% at the dealership. If you have time before purchasing a vehicle and it isn’t an emergency, run your credit report online and have it mailed to you. Verify all the data is correct. You may have time to repair an item and get a better interest rate before you buy. See my article on how to do this.

Tips To Avoid Getting Into Debt

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While many articles and books have been written to help you once you’re in debt, very few have been written about how to avoid getting into debt in the first place. Many people choose to go to credit counseling only after they’re on the brink of filing for bankruptcy. If you want to be successful financially, you have to first learn how to do things before the fact, not after it. In this article I will show you some common sense things you can do to avoid debt.

Teaching Personal Finance At Grassroots

Understanding the importance of personal finance is a key factor in being successful in life. It is hard to do much of anything if you are unable to manage your money. Most highschools today don’t teach teenagers the importance of finance despite the fact credit card companies will mail them cards upon their graduation. I believe this one of the reaons why the average American family today owes about $10,000 in credit card debt. They simply do not understand how to manage their money, or they lack the discipline to do so.

Save For Your Luxuries – Don’t Borrow

The first step in avoiding debt is to simply not borrow money. If you want something that you can’t afford to pay for with cash, you probably don’t need it. If you really want it, you should save up your money and buy it. By doing this you will become disciplined and stay out of debt at the same time. It is easy to get a credit card or a loan to buy something. It takes discipline and hard work to save up enough money to buy it. Saving money has always been a simple path to building wealth. The more money you save, the wealthier you’ll become.

Do You Really Need The Latest Tech Goods?

Many people are distracted by the bells and whistles of the many electronic products which flood the market today. Many people fail to realize that the digital camera or Ipod you pay $200 for today won’t be worth anything tomorrow. Electronics almost always depreciate in value. Why go out and use a credit card to buy expensive electronics when they will lose their value after they’re purchased?

Cut Out The Middle Man

One way to effectively mangage your money is to develop a wholesale mentality. When I say this I mean that you should consider not paying retail prices for electronics, furniture, or other goods. You should think about paying wholesale prices for these goods rather than retail, especially if they depreciate in value. Instead of going to the mall or furniture store to shop for clothes or furniture, why not go to a clothing outlet or thrift store?

The Freedom Of Being Debt Free

Many people become wealthy and debt free by simply saving their money, paying wholesale prices for goods, and placing some of their savings in safe investments like IRA accounts. They often will only have one credit card if any, and the amount of money they have saved up will be much larger than the balance they owe on their credit card. This is the real secret to wealth. The get rich quick schemes and late night infomercials are disinformation which will not give you true answers.

Don’t Be Another Sheep!

Avoiding debt and maintaining good credit is another key of financial success. It is important to understand the 80/20 principle when dealing with personal finance. You will want to avoid doing what 80% of the population does. Most people owe tens of thousands of dollars on credit cards, student loans, or car loans. Others use payday loans between paychecks to make ends meet. This puts them in a cycle of debt which will keep them from ever becoming wealthy or retiring in comfort. The credit card companies and banks continue to make billions while most consumers are getting further into debt.

Used Bike Finance?drive a Good Bargain

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Availing the benefits of used items is not a fashion of today’s financial world. It has been taking centre stage for time immemorial. So do not any single item which is not offered and availed for ones personal requirements, same is the story with the used car finance.

There are many lenders available online and offline for Used Bike Finance. With their respective policies and plans, these lenders lure borrowers one way or other for used bike finance. Individuals are advised to just once go through the conditions before making a signature.

No matter of individuals credit history i.e., CCJs, IVAs, bankrupts, arrears, and defaulters too can avail the benefits of used bike finance without any hassle. Only the problem, they may have to face is of a little paper works and documentation. In doing so, such kinds of heavy paper works, the process of used bike finance catch up a bit lower speed.

For, armed with your target price, you should be ready to begin shopping around for the best purchase price of used bike finance. Try to visit more than one lender, since price varies lender to lender. At the lender, you will want to be sure to negotiate, keeping in mind the following tips:

• Don’t set your sights on just one used bike model. Many manufacturers offer similar models, and one may be much more affordable than another. If you are trading in your old bike, do not discuss the trade-in price until you have established a purchasing price for the new bike. You do not want to negotiate a good purchase deal by accepting far less than your trade-in vehicle is worth. If the dealer is not willing to give you a deal that you are happy with, do not hesitate to take your business elsewhere.

• If you want to avoid negotiating over price, you may want to consider a dealer with a no-haggle policy of used bike finance.

Seven Tips to Help With Interview Preparation

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One: The Resume

Of course, bring a couple of copies, and be sure to read your resume before the interview, so you’re completely familiar with everything you’ve written. You might also bring materials which would be particularly good at illustrating an important aspect of your work, such as creative designs, writing samples, and so forth. Be careful though, not to overdo it with the props. When in doubt, just bring your resume and your business card – they’re the most important props you’ll ever need.

Two: Appropriate Dress and Appearance

Dress professionally for the interview. Remember that you don’t get a second chance to make a first impression. Your appearance should be neat and clean, pressed and polished. Conservative business attire is appropriate for most settings.

Three: Directions to the Interview Location

Try to get directions at least a day before your interview, so you don’t get lost and arrive late. And here’s a tip: Always bring some cash to pay for parking. Never ask an employer to validate your parking stub, or reimburse you for parking. Not only is it not polite, you’ll create a negative impression, since it’s considered common courtesy to pay your own expenses for a local interview. The best time to arrive for an interview is precisely when you’re scheduled, not early or late. It can irk an employer to be told that the candidate for a 2 o’clock appointment is waiting in the lobby at one thirty-five. If your appointment is at two, then arrive at two.

Four: Name and Title of the Interviewer(s)

When you arrange the interview, find out who you’ll be talking to, and what their function is within the company. You might already know the person. If that’s the case, you’re ahead of the game. If not, send out feelers among your contacts within your industry, or look in your industry’s trade publications to see if the person you’re going to be meeting is distinguished in any way.

Five: Understanding the Company’s Hiring Procedure

To correctly gauge the sequence of events surrounding or following your first interview ask these questions:

A. Can you describe to me, step by step, the hiring procedure for this position?

B. Will I be asked to take any tests?

C. How long will it take before you reach a decision?

D. Who will be making the hiring decision?

Six: Background Information on the Company

While the amount of background information you can gather about a company is practically endless, it would be ludicrous to try to become a walking encyclopedia of corporate trivia. By arriving for your interview adequately briefed, you’ll make a strong impression on the interview. Best of all, you can spend your interviewing time discussing your background and the company’s needs, not the corporate biography, or company financial report.

Seven: A Complete List of Questions You Want to Ask

A. Company questions deal with the organization, direction, policies, stability, growth, market share, and new products or services of the prospective company or department;

B. Industry questions deal with the health, growth, change, technological advancement, and personnel of the industry as a whole;

C. Position questions deal with the scope, responsibilities, travel, compensation policies, and reporting structure of the position you’re interviewing for; and

D. Opportunity questions deal with your own potential for growth or advancement within the company or its divisions, and the likely timetable for promotion.

How To Get A Finance Job From An Engineering Background

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“It’s something very personal, a very important thing. Hell! It’s a family motto. Are you ready Jerry? I wanna make sure you’re ready, brother. Here it is: Show me the money. SHOW! ME! THE! MONEY! Jerry, it is such a pleasure to say that! Say it with me one time, Jerry.”


-Rod Tidwell, “Jerry Maguire” (1996)


“If I’m an engineering major, how can I get into finance? Show me the money!”


I find myself answering this question a lot, possibly because I’m from a non-finance background myself. Or maybe just because everyone wants to get into finance.


How you can leverage your technical background to land a job in the jungle of finance? As a technical person right out of school, you have two ways of breaking in:


1. Get an investment banking analyst position in the technology or TMT (Technology, Media & Telecom) group of a bank. You will use none of your quantitative/analytical background and instead use your interest in the industry/work ethic to get in.


2. Get a quantitative job at a hedge fund or doing trading/fixed income at a bank. You will leverage your quantitative and probability skills to get in.


Of the two, the second is easiest for most engineers. Wall Street has never been more quantitative, and it’s only getting more quant-focused each day. Even with some recent problems in the credit market and some high-profile difficulties at prestigious funds such as Goldman Global Alpha, this trend will not stop anytime soon.


Hedge Fund And Related Jobs


On-campus recruiting for these positions is less common than it is for banking analysts, but it’s there if you seek it out. Citadel, one of the largest hedge funds in the world, does undergraduate recruiting for its rotational program, as does Jump Trading, based out of Chicago.


The good news is that if you’re an engineering major at a top university, you have a good chance of landing one of these jobs, even with no previous finance experience. If you’re in this position and go through on-campus recruiting, you need to emphasize your interest in finance because this is how they select candidates. Here’s a direct quote from a Citadel recruiter:


“To be honest, we know you’re all pretty good quantitatively… after all you got an engineering degree at one of the top programs in the country. You need to show us that you’re interested in finance because that’s what differentiates you.”


During interviews they will ask you quantitative questions but it’s crucial that you show them you have had a strong and consistent interest in finance. Have some good stories prepared, especially on personal investing and why you’re particularly well-suited to be a trader.


For trading jobs the “fit” part of the interview is even more important than it is for banking. If you don’t trade stocks in between classes and wake up early each morning to read financial news, gambling is a good hobby to mention. I was asked if I played video poker/online poker and other casino games when interviewing for hedge fund jobs. You want to emphasize hobbies/interests that show you can think about risk vs. reward.


No Thanks, I Really Want To Be A Banker


Full disclosure: you can do this, but the hours are going to be far worse than trading, the pay won’t be much better and you’ll have to do truly menial, low-value-add work. The advantage is you do have a wider variety of exit options – doing engineering and then banking sets you up very well for venture capital, for example. And the perks are nice.


As a technical person, you have several things going for you right away: no one will question your intelligence, and they probably won’t ask you brain teasers or math questions. If you can get a degree in Electrical Engineering, you can do Excel calculations in your sleep. And no one will question your attention to detail (or at least not as much as if you were an English major).


What you will need to focus on in recruiting and interviewing is demonstrating your 1) interest in finance and 2) ability to handle the hours/stress of the job, which are considerably worse than those of an engineering/tech company.


A few more specific tips: when you discuss your interest in finance you need to mention tech companies if you’re applying to a tech group in a bank. And don’t just mention Google or Facebook. These are the most visible tech companies by far, but anyone can learn about them by reading TechCrunch or by listening to friends.


You need to show real interest in the industry, which means taking the initiative and talking about less well-known companies. Before my interviews at tech groups in banks I made a list of less well-known startups/other companies I found interesting and had a story prepared around each of them. You should do the same.


As far as the second point about handling the stress/hours, as an engineering major you should have had many extended project classes… these are all good to mention, as are any internships where you launched a product that required “crunch time” at the end.

Personal Finance – an Integral Part of our Lives

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All forms of educated people, intelligent individuals from all walks of life in professional occupations are often the authors of these complaints. They have managed to come to grips with law, the working of the medical professions or indeed the law of the land but when it comes to tackling the policy documents of a mortgage protection insurance plan, they tend to be totally bewildered.

I am not surprised. For far too many years the financial service industry has smothered itself in complete jargon, essentially to bewilder the consumer and conceal poor value for money . Successive UK governments have not helped, making some areas of personal finance such as pension or tax related issues impenetrable to understand, to some of the finest brains in Britain. Indeed, on such occasion they have been instrumental in causing some of the biggest problems to impact up personal finance world. A good example is mortgages interest rates.

It is against this existing backdrop that I will undertake to write a series of articles related to personal finance. Wherever possible, I will try compare personal finance views and then seek to cut the verbiage and highlight complex financial areas in simple, good old plain English. And I don’t suspect that this will be no easy task. Indeed, I will spend many a Friday or even Saturday night burning the midnight oil and banging my head against the study wall in attempt to penetrate the deepest bowels of the current personal finance world.

This article on personal finance will not actively solve your personal finance worries – that is completely down to you. But if it helps to expand your knowledge or indeed understanding of the personal finance world, or if provides you with just one tip to go out and improve your knowledge of personal finance, these articles may indeed proved a worthy aim.

Here, on our website, you will find accurate information on all credit card, loans, insurance and investment deals you can use as an efficient Personal finance comparison. Personal finance management has never been so accessible.

The Importance of Learning about Personal Finance

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There are a number of different reasons as to why a person should learn about personal finance, but it is perhaps understandable that most people can not see these reasons for themselves. Personal finance is a difficult topic to learn about and for that reason a person just naturally tends to shy away from it, making excuses in an attempt to avoid having to learn about it. Well, personal finance is extremely important and here are some reasons why.


Money Flow


If you understand personal finance, then you will understand your money flow a lot better. There are a number of people that muddle through life paying their bills and their mortgage payment with the money that they have and then spending the rest of it or maybe letting it sit in their bank account. These are people that have no idea how personal finance works, so even if they end up making the right decisions they are doing it through luck.


While there is nothing inherently wrong with this particular approach, don’t you think that you would feel much better if you knew exactly what was going on with your money flow? The old saying is that knowledge is power and if you know about your money flow, you arguably have the most important individual power that exists in the world today.


Uncertainty and Fear


Human beings as a species have an irrational fear of uncertainty. In this respect, we are no different from any of the other mammalian species walking the planet, because all of them have been conditioned through thousands of generations of being eaten and killed to be afraid of what they don’t know. Uncertainty and fear therefore go hand in hand and when they do this in relation to something as important to your basic survival as money, the paralyzing effect that fear can have on you is something that is not even pleasant to think about.


Compare this situation however to a situation where somebody knows about how their money flow works and understands their entire personal finance situation. This person is not a person that is likely to be afraid, since there is no uncertainty involved with their financial situation. It is a lot easier to be afraid when you have no idea where your money is coming from and where it is going.


Utilization


If you truly understand personal finance, then another thing that you definitely should understand is utilization. A person that does not understand or appreciate personal finance is a person that is unlikely to save a lot of money, instead spending whatever they happen to have left after monthly expenses on entertainment and impulse purchasing. While there is nothing wrong with being a consumer on this level, it is something that might hamper you later on in life when your income begins to dry up and you realize you have no prospects on the horizon.


If the person does not spend a lot and does not understand personal finance, the same thing could happen. While the money in your bank account is available to you instead of having been spent on something impulsive, it is still not being utilized to its fullest extent.


Only a person with an understanding of personal finance would know that money being saved should at the very minimum be placed in a high interest savings account and later on should also probably be invested in things that yield a much higher interest rate. This difference in understanding and ultimately in utilization comes specifically from an understanding in personal finance.

Simple Finance Guide for Your Home Business

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Have you recently started your own home business, but aren’t sure how to handle the finances?  Are you nervous when it comes to business debt, budgeting for the future and balancing your gross/net figures?  Below are some helpful tips to guide you through some of the most difficult tasks of business finance. You can accurately and consistently manage your business finances without a lot of stress if you’ll implement the simple principles below.

Finance Starting Point

In order to manage your home business finances, you need a definite starting point.  This will be a summary of your entire financial assessment for your business. Note of Warning:  Often, a home business finance plan mingles with personal finances.  Try to keep these as separate as possible for tax purposes and to avoid confusion.  Even if you buy something personal with business money, write it down so you’ll be sure not to include it as a business expense.

Your Starting Point Assessment Should Include the Following:

*Most Current Gross Profits/Loss of the Business

*Most Current Net Profits/Loss of the Business (your bottom line)

*Cash on Hand

*Checking Account Balance

*Debts/Loans for the Business (include payments due and balances)

*Assets

*Advertising Funds

*Miscellaneous Items having to do with your business finances

Once you have an assessment of where you stand financially with your home business, you can move forward.  The assessment is not your budget, but it allows you to create a budget based on realistic figures.  Budgeting on a dream is not wise with a business.  You might reach your goals, but what if you don’t?  Set your goals, but only budget for those amounts when you’ve actually reached them.

Creating a Home Business Budget

Most home businesses have a tremendous advantage over larger businesses because operating expenses are normally much lower.  There’s no building rent to pay, additional utilities, etc.  If you stay at  your desk most of the day, you will save on gas, car maintenance, etc. For this reason, it’s usually easier to budget for a home business. Based on what your business has profited over recent months, or your start-up cash if your business is brand new, write down all of your business expenses that need to be paid for each month or year to get a monthly estimate. What about your salary?  The salary must be determined only after your expenses are paid.  If there’s any left, you’ll still want to keep extra cash in your business account for emergencies or unexpected slow times.  You should determine your salary on the low end at first while building your business and stick with your salary amount to maintain a steady budget. For example, if you’re able to take a $350 per week salary in a brand new home business, that’s great!  Many home business owners work a full time job while building their business and take very little (if any) salary. If you have a business checking account or some form of online account for finances, you should deposit all funds into this account and pay your salary out of the account as well as your expenses.  Checking accounts make budgeting a simple process if you keep your checkbook well balanced at all times.

Create a Budget Based on the Following Categories (more if necessary):

Some of these items will be broken down into weekly figures, some monthly and some yearly.  However, you should calculate a monthly average in order to create a general monthly budget.

*Business Expenses (include supplies, equipment, phone, etc.)

*Insurance (business and personal health insurance can be included)

*Taxes (estimated figure from your accountant based on profits)

*Debt Repayment for any business loans

*Advertising (amount will vary, but you can set a minimum or maximum amount)

*Your Salary

Once you have a list of expenses for each month, write down due dates for each, and pay bills as they come due.  Pay on time, but not too early. Your money can sit in your bank account and draw interest in many cases while waiting on due dates.

Budget with Slow Times in Mind

Just because you have tremendous profits one month, this doesn’t indicate that you can raise your salary.  Leave money in your account for those slow times.  Also, budget in advance for payments which are due yearly.  It’s much easier to save a little each month than to be surprised with a large bill later. Following the simple budgeting guide above will enable you to keep an even pace while managing your business finances.  Handle your finances with care because this is the lifeline of your home business.