Nicholas Fainlight is an aspiring finance professional.

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Overrated Business Tips To Forget

Overrated Business Tips to Forget

Wherever you go, people provide unsolicited guidance on how to grow, run, or start a business. Out of the pointers they offer, some are valuable, and you must observe them. However, others are misinterpreted, outdated, or just plain wrong for the business you’re running. Here are some overrated business tips to forget.

1. Your Service or Product Must Be Unique

Businesspersons are often advised to outline what makes them stand out. However, it is not necessary to find an exclusive approach to achieve corporate success. A subtle change may improve the entire experience.

2. Customers Are Always Right

Do you need to make the customers happy? Yes. However, if your main goal is to please people, you may end up in a world of unnecessary suffering. It’s best to pay attention to the things that bring you a long-term profit, not the things that take your energy and time.

3. Do Not Start a Business With Your Friend

Many people think it’s a bad idea to start an enterprise with a friend, but that’s not true—friends whose expertise supplements each other may build a thriving business. Establishing a company may be straining to the relationship; however, the benefits of operating with a person you trust may be worth it.

4. Promote Your Business on Facebook

Companies have acknowledged that paid advertising is the only path to increase your Facebook image, which is still one of the world’s best social platforms. However, it is not always the top place to use up your advertising budget. There are other more effective means to reach your audience for a much lower price per lead, for instance, on platforms like Pinterest.

5. Concentrate on Your Site Instead of Building the Brand

It is important to have a brand that reverberates with ideal customers. However, investing all energy and time in the “perfect” site is not how to make it.

6. Never Reject an Opportunity

It is tempting to “do it all” and take all opportunities that cross your path at the beginning of your business. Saying “yes” to all opportunities in your corporate encounters will stifle your time and dilute your brand.

7. Gather as Much Cash as Possible

Each business needs cash to start and grow; however, not all businesses must seek that through financiers. While funding may help some companies grow significantly, other lifestyle corporations are at an advantage without it.
Finally, despite all the advice that entrepreneurs receive, they should filter what is right for their business.

How To Balance Profit And Purpose In Business

How To Balance Profit And Purpose In Business

Entrepreneurs need to build business empires while still staying committed to their purpose. A significant number of business people struggle to commit to their purpose while still keeping their enterprises profitable. Businesses need to demonstrate their contribution to humanity while still growing their profit margins. Here are ways businesses can balance profit and purpose.
Go Green

In the past few years, many businesses have shown their commitment to adopting more sustainable production methods. No matter the size, every organization can play a role in reducing its environmental footprint. Surprisingly, the current generation prefers to buy green products. Therefore, companies that will demonstrate high sustainability credentials will gain numerous customers who want to buy green.

For instance, manufacturers can reduce carbon emissions by sourcing closer to home. When raw materials are transported for short distances, it helps cut both transport costs and carbon emissions. Besides, leaders who have a passion for conserving the environment can shift to renewable energy sources.

Find an Inspiration

Walk away from your comfort zone and start doing something new that challenges you. Learn from these things and find inspiration in them

Leverage Technology

Technology is changing every aspect of life, including how consumers interact with brands and how they buy products and services. For example, online sales have doubled in the past five years. Additionally, organizations are using machines to understand customer needs better. This means that businesses must stay on top of the latest innovations to remain competitive in their respective industries.

Share Your Success

Entrepreneurship is a murky journey characterized by ups and downs. Therefore, successive entrepreneurs should consider sharing their experiences with novice business people. When you balance profit and purpose, your impact is significant and tangible, and more consumers will want to be associated with your business.

Understand Your Purpose

Purpose goes beyond providing high-quality goods and services to consumers. It also means that your business prioritizes the common good of the community. For example, some companies such as Unilever have already developed a unique living plan to track their progress of minimizing their environmental footprint. Business leaders should devote time to learn about societal impact and how to improve it.

To change business operations to meet new expectations requires exceptional and visionary leadership. In today’s versatile business world, leaders who will adopt agility will be in a better position to achieve long-term success.

Group of people sitting around a table with an open laptop and graphs and papers, Nicholas Fainlight improve credit score

4 Tips for Improving Your Credit Score

Once you graduate college and begin your life after school, you likely realize how important a credit score is for various decisions. You may have had to deal with issues relating to your credit score beforehand, but it’s certainly something you must pay attention to now. Your credit score affects whether or not you can open credit cards, get a car loan, or get approved for a mortgage. Many landlords also want to know your credit score to see how reliable you are when it comes to making payments. You may have a low credit score or not much credit at all, but there are certainly steps you can take to build it into a respectable number. However, you need to understand that it takes time and hard work to reach an excellent score.

Open accounts with credit

For many recent graduates, you might not have much credit at all, which leads to a low score. The first step to take is opening accounts that utilize your credit; the earlier you take this step, the better. There are plenty of student credit cards out there that are easy to get approved on, or ask your parents to add you to one of theirs. Even using the card a few times a month and then immediately paying it off helps improve your credit score. Be aware that opening new forms of credit means a credit report will be pulled for you to be approved, which often temporary drops your credit score a few points. This drop is completely normal and goes back to what it should be within a few months.

Make payments on time

Something that seriously damages your credit score is making late payments. Even a single late payment on credit can lower your score. If you’ve been notorious for this issue and it’s what caused your score to be so low, change your methods starting today. Set alerts for when your payments are due or even set up automatic payments so you don’t have to worry about forgetting at all.

Regularly check your credit score

If you want to really make a difference in your credit score, you need to be aware of any changes to it, whether positive or negative. The more you familiarize yourself with the score and see fluctuations, the better able you are to make decisions that impact your finances. It’s also important to regularly check your credit score so if a fraudulent account is ever opened in your name, you can report it as soon as possible and prevent it from seriously affecting you. Credit Karma is a great resource to use and can be downloaded as an app on your phone.

Pay off debt

If you want to see immense improvement to your credit score, pay off current debt. Even paying off a single debt can boost your score several points. Make larger payments than required and avoid paying more interest than you have to. While paying off your debt, consider using the debt snowball method in order to receive the maximum benefit.

Home with forest behind it sunlight streaming through, Nicholas Fainlight millennials save for first home

4 Tips to Help Millennials Save for Their First Home

There seems to be a prevalent mindset that millennials will never be able to afford a house. While the housing market is inflated in some areas, for most of the country, there are certainly affordable properties. This misconception is certainly not current for many young adults who are working full-time, even if they have significant student loan debt. There are a few steps millennials can take to save for their first home, even if that purchase is ten years down the road. Here are steps you can start taking today to help get you ready to purchase a home.

Boost your credit score

While this tip isn’t directly related to saving up money, it’s a vital one when it comes to purchasing your first home. When you apply for a loan for your mortgage, a big factor for the interest rate and whether or not you’ll get approved is based off of your credit score. If you do not have a great credit score now, you can fix this issue by opening up a credit card and lightly using it; make sure you pay off the balance each month and avoid late payments. Over time, your credit history will improve as you use more of it. Regularly check your credit score as well to make sure there’s no false information or that someone is opening accounts in your name.

Save up a down payment

The best way to make owning a home feasible and less stressful is by saving up an adequate down payment. The rule of thumb is to have 20 percent of the home’s value as your down payment, though many people do not follow this number. You can get approved for a home if you have less than a 20 percent down payment and there are programs out there to help make up the difference and navigate buying your first home, but it’s still best to put as much money down initially as possible.

Do your research

There are major costs associated with buying a home, but you can mitigate some of these costs if you do sufficient research. Make sure you are only buying a house you can actually afford; people often get approved for mortgages that severely strain their budgets. Also shop around for real estate agents and learn what costs you can cut back on and how to get the best deal as you search for your home.

Set regular goals

Buying a home might seem far off, but saving up a down payment takes time. Set goals for yourself to achieve over the next few years. Even putting away $20 a week adds up! You can also schedule automatic withdrawals from your account to go to a separate account for your down payment. You won’t notice the money’s gone and you’ll save up a decent down payment for when you start shopping for a home.

 

Nicholas Fainlight How to use Credit Cards the Smart Way

How to Use Credit Cards the Smart Way

Credit cards are something we’re likely all familiar with. You’ve probably gone shopping to a larger store and had the salesperson ask if you want to open a credit card account specific to that store. It’s likely you always brush it off, knowing you don’t shop there that often or don’t want to deal with more debt. However, many people open credit cards, whether a store card or a regular one. The average household in America carries nearly $6,000 of credit card debt. Other studies show that about a third of Americans have at least one credit card.

You’ve probably heard horror stories of people getting into insane amounts of credit card debt they’re never able to pay off. Many people completely swear off of credit cards and believe they’re sure ways to get sucked into overwhelming debt. However, if you handle credit cards in a smart way, you won’t have to worry about dealing with outrageous amounts of debt. Here are tips on using credit cards and actually benefiting from them.

Online shopping

One of the best uses for credit cards can be to use exclusively for online shopping or somewhere else you think information could get compromised, such as a small stand or other place that appears to have low security. All too often, we make online purchases and then see that our account information has been compromised. It’s much easier to freeze and cancel credit cards and get the purchases taken off your statement than it is to do the same with getting money back into your bank account. By using a credit card for a purchase you would have made anyway, you can protect yourself from fraud.

Designated purchase

Sometimes, credit cards can be useful for a designated purchase. You might receive a lower car insurance rate if you set up an automatic payment, but don’t want to save your bank information, using a credit card becomes a great alternative. It’s also easier to track spending if the only purchase you’re making on that card is one kind.

Gain rewards

You can easily find credit cards that claim they have incredible rewards programs. Nearly every card now offers some type of reward. It’s important to avoid being drawn into promises of rewards and going for every card offered; take the time to research different cards and find out which ones offer the best rewards for you. Then, use that card regularly to make purchases you can afford and build rewards that are actually beneficial.

Build credit

A very smart reason to use credit cards is because they allow you to easily build your credit. By regularly using a credit card and not making late payments, you’re able to improve your credit score. This benefit is especially useful to younger people who don’t have any kind of credit score and need to create one in order to make larger purchases or rent an apartment. Spend smartly and avoid creating debt so you can improve your credit score.

Pay on time

Finally, the smartest way to use your credit card is by paying it off on time. If you carry a balance over from month-to-month, you’ll likely have to pay large amounts of interest, often around 20 percent of whatever the balance is. If you can’t pay off a large purchase in a month (or very shortly after), do not use your credit card. The problem with credit cards is people avoid paying off the balance each month, so it just accumulates and interest builds, which results in outrageous amounts of debt and you paying more than you spent in the first place.

A credit card isn’t something you have to be scared to use, as long as you’re following these tips and being smart in your spending. It could actually be something that benefits you.

Laptop, cellphone, pens sitting on a desk, image used for Nicholas Fainlight blog on why you should get a side hustle

5 Reasons You Should Get a Side Hustle

No matter where you are in your professional journey or what your personal finances look like, there are plenty of reasons to start some kind of side hustle. If you’re young, it’s even more of a reason to find an additional source of income! When you’re young, you usually have less responsibilities than someone older does, such as family, an established career, or something else. If you have free time, use it to devote to generating additional income; your future self will thank you.

You can pursue a passion

For many people, their day job isn’t necessarily their dream or what they’d be doing if they could do anything at all. We usually pick our full-time jobs because they pay the bills and it was the best option at the time. A side hustle allows you to pursue your passion and do something that’s more fulfilling than your day job. Even if you love your full-time job, a side hustle allows you to be more creative and be your own boss.

You’ll meet interesting people

No matter what side hustle you choose, you’ll end up interacting with people you wouldn’t have met in your regular job. You’ll make great connections that could seriously impact the future of your career and the choices you make. You could find an incredible job opportunity or friend that changes the course of your life. Do not be afraid to talk to people and expand your network, especially in connection with your side hustle.

It helps cover expenses

If you’re in significant debt, a side hustle could be an answer to your financial issues. You can find an additional source of income that fits your income, even if it’s simply freelancing online. Use the extra money you make to put toward paying off debt or to cover your rent each month. It’s up to you to decide what to do with the extra money you’re making, but it’ll definitely help ease financial stress.

You’ll develop new skills

As you work on your new side hustle, you’ll develop and hone skills you didn’t have before. Maybe you’re working at a restaurant or doing something that involves writing; there’s a big change you weren’t using those skills in your full-time job. Maybe you’ll start a side hustle that requires you to learn completely new skills; many of these skills can benefit you in other areas of your life as well

You’ll feel secure

For many people, their side hustle is the start of a full-time business venture. Even if you’re only making a small amount of money with your side hustle, you still know you have some source of income if you’d lose your full-time job. You might not make enough to cover all of your expenses, but it’s at least something, especially if you can turn it into a full-time job.

Dollar bills rolled and stuck in the ground like plants, image for Nicholas Fainlight blog about how to become debt free

Worrying About Debt? 5 Ways to Become Debt Free

According to a recent study, Americans are leaving behind around $62,000 worth of debt. This number is overwhelmingly high and shows there’s a serious problem facing people living in the United States. Far too many people are in debt, for various reasons. Some of the biggest culprits are student loans, credit card debt, and mortgage debt. For most people, garnering some amount of debt is basically unavoidable, but you can keep it to a minimum and pay it off responsibly. No matter how far you are in debt, here are some tips you can take advantage of and start repairing your financial life.

Create an emergency fund

While first saving before paying on debt may seem counterproductive, it’s a step you must take. Create at least a month or two of savings that’s enough to cover your monthly payments. This way, if an emergency ever arises, you’ll have money to still cover your debts and make payments that month. An emergency fund gives you peace of mind and allows you to fully focus on getting rid of debt.

Make a stable budget

Before you begin tackling debt, make sure you set a realistic budget. Evaluate your lifestyle and monthly expenses and plan a budget that takes into account what you need to spend money on each month. Identify areas of your lifestyle where you can cut back; avoid going out to eat as much, buy cheaper groceries, or downsize to a smaller apartment. Avoid going on an expensive vacation or buying lots of new clothes or a car. Once you make your budget, stick to it, and avoid unnecessary spending.

Avoid more debt

Once you establish your budget, avoid getting into more debt. Do not use credit cards and only purchase something if you actually have the funds to pay for it. Debt for school or a mortgage are sometimes unavoidable, but do all you can to minimize the amount you’re paying.

Craft a solid plan

After you establish a budget, take a good, long look at the debt you currently have. See if you can consolidate or refinance anything to lower your interest rates. Determine how you want to pay off your debt, whether it’s the highest interest rate first, the lowest total amount of loan, or some other way that works for you. Put as much extra money toward your debt as you can each month. You might have to live simply for a few months or even years, but it’ll be worth it to be debt-free.

Find a side hustle

Sometimes, you just don’t make enough money to pay more on your debts or cover all your expenses. If you’re at this point, it’s time to look into getting a second job or some kind of side hustle. Start a blog about something you’re passionate about, have a yard sale, get a second job, or do some freelance work online. Find any way you can to generate more money to put toward your debt.

Change spilling out of a glass jar, image used for Nicholas Fainlight blog on how saving doesn't have to be hard along with how to get started

Saving Doesn’t Have to Be Hard: 3 Tips to Get You Started

The value of saving money is pretty apparent to most people, but the actual process of doing so is a lot more difficult. As human beings we often do not actually want to save up the money we have worked so hard to get. The temptations to spend that money are all around us and it can sometimes be challenging to see the future benefits of saving it. While saving may be more difficult than spending, there are some tips on saving that can take away at least a little of the pain of doing so.

Save money from windfalls

Windfalls of cash do not happen often to the average person, but many can claim the event has occurred at least once in their life. Take the idea of a tax return as an example; most people can relate to this because so many of us elect to have a tax return come our way at the end of the year and end up with a decent sum of money.

When that money does come in, consider banking it rather than spending it. The government and economy might benefit if you spend it, but you as an individual would be better off pocketing as much of it as you can muster. A possible exception to this rule would be if you have significant debt to pay off. Then, using a windfall to get out from debt could be equally beneficial, just remember to save the money you would have used for that debt.

Use the 24-hour rule

Is one day really too long to wait on a purchase? Not when you are using the 24-hour rule to help eliminate wasteful spending. This rule says that before you make a purchase, you must wait at least 24 hours to decide if it is really something you truly need. Establishing this rule for yourself can cut out so much of the wasteful spending many of us are prone to doing. After a single day of cooling off, many purchases will seem completely unnecessary. It can also be beneficial to carefully think about how you’ll use this item, whether it’ll make you feel good for a little bit or if it’s a long term investment.

Unsubscribe from services you do not use

If you have a cable subscription but practically never use it, why do you have cable? Likewise, if you subscribe to any other services that you honestly do not get your money’s worth out of, get rid of them. It may seem like just a few dollars here or there each month, or each year, but subscriptions can add up to serious amounts of money over time. Besides, if you are not getting the intended value out of these subscriptions, then there is really no reason to hang on to them. It is fairly easy to rid yourself of these subscriptions once you put your mind to it. Spend some time today figuring out what you can cut out.

Man using a tablet with an icon that says finance pulled up, image used for Nicholas Fainlight blog about finance apps

5 Apps for Managing Your Finances

Man using a tablet with an icon that says finance pulled up, image used for Nicholas Fainlight blog about finance apps

Everyone looks forward to receiving compensation after working hard. However, due to rising expenses, many people see their compensation vanish within a few days. Struggling with your finances is difficult, but there are ways that you can receive help. Thanks to the age of technology, there are multiple financial apps currently available to help manage your finances and get things under control.

Mint

Mint allows you to manage your monthly expenses, bank accounts, and credit cards under one joint account. You can view your net worth at any time. Mint calculates your spending each month, so you can keep track of your budget. It also provides different charts to help manage your finances without any issues. Mint will also send you notifications when you have upcoming payments.

Penny

Penny will interact with you and answer any questions you may have about your finances. It helps you keep track of your finances by showing you information about your daily spending and what bill payments are soon due. Penny also includes different financial charts and graphs to help you get a clear understanding of your financial situation.

BillGuard

BillGuard helps users understand their spending habits, while also protecting their financial information from fraudulent activity. This app can sync with your bank accounts, which allows you to see your overall balance, with a breakdown of every transaction. BillGuard also checks with you to make sure you made those transactions and not an impostor. If something is wrong, the transaction will be flagged until you speak with your bank or the merchant. BillGuard also includes analytics, such as spending per category, which gives you an enhanced look at your finances.

Expensify

Expensify is available on your phone, as well as the internet. The user interface is easy and divided into multiple sections; SmartScan, Track Time, Track Distance, and Add Expense. Track Time allows you to keep a tab on your daily earnings. The popular SmartScan option allows you to take pictures and electronically save receipts. You can also add your credit or debit card to Expensify and track your balances from there.

You Need A Budget

You Need A Budget (YNAB) emphasizes being flexible. You’ll be tasked with assigning your money to a specific category, such as food, gas, and utilities. With YNAB’s structure, you’ll be able to easily recognize patterns in your spending and see which areas need to be improved.

Person skydiving in a clear blue sky, image used for Nicholas Fainlight blog on risk in finance

The Importance of Risk When It Comes to Finance

Person skydiving in a clear blue sky, image used for Nicholas Fainlight blog on risk in finance

Risk is involved in every aspect of life. The risk of taking your first steps is falling; the risk of asking a person on a date is rejection; the risk of interviewing for a job is failure; the risk of parallel parking is hitting another vehicle. So, it is guaranteed that creating a business or investing in something financially, as well as physically, involves considerable risk.

What is risk? According to Google, risk is the possibility that something unpleasant or unwelcome will happen. However, according to the business dictionary, risk is a probability of damage, liability, loss, or any other negative occurrence that is caused externally.

From a finance point of view, risk is the probability that an investment’s return will be less than expected. However, risk also offers the chance of reward. For example, a reward could be an increased return compared to a lower expectation. Financial risk is comprised of multiple categories: basic risk, capital risk, delivery risk, exchange risk, interest rate risk, political risk, settlement risk, underwriting risk, and much more.

Examining financial risk includes looking at daily finance operations, such as cash flow, transactions made by the business, and the business’ financial systems set in place. You may consider things like which clients owe the company, how the company plans to retrieve the money, insurance, and its coverage, as well as whether the business can extend credit to customers and how.

When calculating financial risk, external factors like interest rates and foreign exchange rates should be considered. Those factors can affect company competitiveness with services produced abroad; changes in interest rates and exchange rates can immediately affect debt repayments.

All businesses should extensively discuss risk management within the business’ strategic management. Doing so allows the company to identify and tackle any risks before they become an issue, which will in turn aid the chances of reaching defined business goals.

Once the risks have been pinpointed, there are several ways to address them: accept it, transfer it, reduce it, and eliminate it. Acceptance of a risk might happen if the costs are too high to handle it in any other way. The risk could be dealt with by transferring, which typically takes place with the company insurance. Reducing a risk is merely introducing safety measures to keep the risks from occurring, and eliminating the risk could be something like changing the production process. Once the risks have been determined and the type of management has been decided, take steps to put the measures into place.

Risk management is not a one time kind of deal; it requires consistent monitoring and should often be reviewed to ensure the management approach is successful. Set the plan in stone by creating a risk management policy that will identify the company’s approach to risk, and it’s management. The CEO’s and the board should all be on the same page before moving to the management policy phase.

All choices in life and business involve risk to some extent. By understanding what risk is and how to manage it, business and employees are more likely to meet their financial goals.

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