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Tristan D. Porter

Dropshipping as a Side Hustle in 2023: How to Get Started

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The business landscape in 2023 is vibrant and ever-evolving. As the cost of living continues to soar, many are on the lookout for supplementary income streams to cushion their financial demands. Dropshipping stands out as a promising option among various business opportunities in the business ecosystem.

Within the realm of dropshipping, there are several tools and systems that entrepreneurs explore as they begin their journey. Among these, the Low Hanging System may be frequently encountered, gaining attention for applicability in the field.

Financial Benefits of Dropshipping

In the bustling retail environment, where traditional businesses grapple with challenges like high operational costs and tight profit margins, dropshipping offers an alternative model that bypasses many of these hurdles:

  • Traditional Retail Vs. Dropshipping: Eliminating warehousing leads to significant savings. You purchase a product only when an order exists, removing upfront inventory and storage costs, and resulting in significant savings.
  • Potential Return On Investment (ROI) And Profit Margins: By cutting most operational costs, drop shippers often see a higher ROI. This leaner operational structure positions the business for enhanced profit potential.

Understanding these financial perks, the next step is to select the right market niche.

Choosing a Profitable Niche

The key to drop shipping success, given the vast array of products and markets, is specialization.

  • Market Research Tools: Tools like Google Trends and SaleHoo provide insights, allowing businesses to identify trending products and niches that promise profitability.
  • Evaluating Consumer Behavior: Examine buyer personas using analytics and surveys to understand preferences, ensuring your product listings resonate with your target audience.

With the right niche in place, setting up the business properly becomes paramount.

Establishing Your Dropshipping Business

Meticulous planning, structured approaches, and strategic alignments are what differentiate successful ventures.

  • Selecting the Business Structure: Whether you opt for a limited liability company (LLC), which offers a shield against potential business liabilities, or a sole proprietorship, with its straightforward setup but intertwined liabilities, your decision will affect day-to-day operations and long-term growth. It’s essential to take stock of both the pros and cons and possibly seek expert advice for a tailored perspective.
  • Tax Implications: Sales tax intricacies are constant when operating a dropshipping model, especially when sourcing products from varied geographical locations. Keeping abreast of local tax regulations, being aware of international duties, and understanding import taxes are pivotal. Leveraging specialized tax software or consulting tax professionals can offer much-needed clarity.
  • Supplier Agreements: Aligning with dependable suppliers ensures product quality and timely delivery. Dive deep into agreements, understanding aspects like refund policies, delivery commitments, and quality assurances. This step is crucial for maintaining credibility in the eyes of customers.
  • Operational Protocols: Even without physical stock in dropshipping, syncing with supplier inventory levels is vital. This awareness prevents over-committing to customers. Simultaneously, investing in top-notch customer service can be the difference between a one-time buyer and a loyal customer.

As you lay down the operational foundation, technology integration is the next pivotal step.

Leveraging Essential Technology

In a digitally-driven world, adopting the right platforms can set you miles ahead.

  • E-Commerce: Platforms like Shopify, WooCommerce, and BigCommerce offer seamless integration with dropshipping tools, ensuring a smooth customer experience.
  • Financial Tools: Tools like QuickBooks or FreshBooks can help dropshippers manage finances, from tracking expenses to processing payments.

With the tech in place, now it’s time to be seen and heard in the digital marketplace.

Marketing for Maximum Financial Returns

Building a fantastic store isn’t enough; drawing customers to it is crucial.

  • Digital Marketing: Strategies like search engine optimization (SEO), pay-per-click (PPC) advertising, and social media campaigns are indispensable for driving targeted traffic.
  • Budgeting: An efficient marketing budget ensures optimal use of funds. Allocate resources to proven strategies and constantly review advertising ROI.
woman pack the box in blue tape

Once visibility is achieved, ensuring consistent financing is the key to ongoing operations.

Financing Your Dropshipping Venture

Even with lower operational costs, securing adequate funds is crucial.

  • Bootstrapping Vs. External Funding: While self-funding offers full control, external funding can provide the necessary scale. Analyze the needs and growth trajectory before making a choice.
  • Cash Flow: Monitoring cash flow is crucial, given the diverse payment terms with customers and suppliers, to avoid financial hitches.

With any venture, risks are inherent. However, with the right strategies, these can be effectively managed.

Risk Management and Financial Health

Ensuring business health means being vigilant against potential challenges.

  • Handling Refunds: A transparent refund policy enhances customer trust. Simultaneously, working closely with reliable suppliers reduces product returns.
  • Guard Your Investment: Ensure comprehensive insurance coverage, maintain strong supplier relationships, and emphasize stellar customer service to shield the business.

To ensure longevity, regular performance checks and adaptability are critical.

Monitoring and Improving Financial Performance

Businesses must evolve to stay competitive.

  • Financial Tools: Advanced tools offer real-time insights into profitability, expenses, and sales trends, helping businesses make timely decisions.
  • Strategy Adjustments: With evolving market dynamics, periodic reviews, and strategic adjustments, ensure the business stays ahead of the curve.

Staying updated with trends ensures dropshipping success, the venture that redefines your financial landscape.

Conclusion: Embracing the Future with Dropshipping

As the dynamics of business continue to shift in 2023, dropshipping presents itself as a viable side hustle. By understanding the financial benefits, zeroing in on the right niche, and leveraging contemporary tools, one can lay a foundation for success. Keeping abreast of technology, effective marketing, and safeguarding investments are crucial. As with any business, continual monitoring and adaptability remain key. Embrace the dropshipping wave, and you might just find your financial sweet spot.

4 Tips To Convert Instagram Engagements Into Sales

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Imagine these scenarios: company essentials = 5,000 comments per month, bills payment = 2,000 likes per month; employee salaries = 15,000 shares per month. How easy life would be if these are possible, but the bitter reality is that we can’t convert Instagram engagements to pay for our bills or any other bill.

However, it doesn’t mean your engagements are useless. Improving your Instagram marketing strategy and making it effective can convert these comments, shares, and likes into sales. Yet before diving further into details, it’s crucial to understand the power of selling on Instagram.

In case you don’t know, more than 50% of Instagram users follow different brands. Around 500 million active users visit at least one brand per day. The same goes for other social media platforms, but Instagram has better potential than them.

Instagram is more than just a tool you can use to catch up with your family and friends. Most of its one billion users use it to communicate with their favorite brands, research new items, and purchase influencer-approved products.

Now that you understand how effective Instagram generates sales, it’s time to look at some of the most effective tactics that convert engagements into sales.

Use Instagram Automation Tools

Responding as quickly as possible to customer queries may seem impossible sometimes, especially when you’re out of business hours. Fortunately, some tools can automate repetitive processes, such as real-time responses to customers’ comments and messages.

You can provide relevant answers to your customers with these tools, even if you’re not around. Likewise, don’t forget to include destination links in your automated response that will redirect your customers to your site once they click it.

In addition, automation tools will help you become more efficient to stay on top of the growing and intense competition in the market. However, not all tools available in the market are the same. Therefore, it’s critical to choose only the best Instagram automation tool to help meet your needs.

Optimize Your Bio

Customers will visit your page if they want to know more about your brand. With this, the first thing they’ll see is your bio. Instagram bio is similar to your calling card; it’s brief and includes everything prospects should know firsthand.

A successful bio converts engagements into customers and generates potential prospects. However, it’s not easy to construct an effective bio that drives conversions and sales. In that case, you might want to look at the tips and tricks below for creating the best Instagram bio:

Use It To Target Ideal Users

Write a bio that discusses what your ideal audience would want to hear. It will help them understand your business more. Should they find your bio meets their interests, they’ll unhesitatingly click that ‘follow’ button.

Add Call-To-Action Statements For Your Link

When writing a call-to-action statement in your bio, let your audience know what’s inside the link in your bio. Here’s an example: “Check out our tips, guides, and tools below.” Moreover, don’t be afraid to use some icons and emojis to highlight your link and add a touch of personality to it.

Add Your Contact Details

Don’t forget to include your contact details in your bio to allow prospects to reach out to you in the manner you prefer. You may add your email address, website link, local phone numbers, etc. Here’s an example you can use: “PLEASE EMAIL ONLY, NO DMs: youremail@example.com.”

Set Up Your Instagram Shopping

If you have an E-commerce platform, you can use Instagram shopping to boost your engagements and increase your conversions. It will allow you to upload your entire product selection directly on Instagram. This feature lets viewers browse your products and make purchases without leaving the social media platform.

If you’re not satisfied, how about this: around 140 million users visit Instagram shopping every month. Therefore, you’ll miss out on the opportunities to increase your sales if you’re not using it. Indeed, it can help you boost your page traffic up to 2,000%.

Here are the simple steps to set up your Instagram shopping:

  • Link your Instagram business account to your Facebook page.
  • Then integrate your E-commerce website account and create a product catalog using Commerce Manager.
  • Connect your product catalog to your Instagram business account and wait for the approval.
  • Once approved, you may start tagging your products from the catalog every time you post new content, reels, or stories related to your products.

When people see your posts, they’ll see a shopping bag icon below. Once they tap it, tags will show up, and they can tap them again to see other details, such as prices and product names.

Create Reels

If you’re serious about converting your engagement into sales, you need to avoid repeating the same strategies. Instead, look for new tools and features that may generate better yields. One of the best examples of this would be Instagram’s Reels.

Reels work the same way as Instagram Stories. Both will let you add stickers, emojis, music, overlays, and other elements. However, Reels aren’t gone after 24 hours, unlike Stories. They remain on your profile permanently so that new followers may see them anytime.

On top of that, Reels have a 2,200-character limit for captions, giving you a lot of opportunities to produce educational content that encourages every viewer to engage.

Some tips and ideas to use Reels effectively are as follows:

  • Show the reality of your business through behind-the-scenes footage, even if some may look bad. You may also show expectations vs. reality to garner more attention.
  • Tell the story of your business and introduce yourself and your brand to everyone, especially to your new followers.
  • Post educational content, such as tips, guides, etc. Make it as comprehensive as possible to keep your audience engaged.
  • Release a sneak peek or teaser trailer of products you’ll be launching soon.

These ideas can help up your engagement and possibly convert them to sales. Try and test each of these ideas and see what will benefit you the most.

Final Words

Instagram is a powerful social media platform that can take your business to the next level. One of the purposes of using it for business is to improve brand awareness through engagements.

However, gaining engagement alone is not enough to boost your sales. Instead, mix the appropriate techniques and strategies presented here to convert these engagements into sales and transform your Instagram into a profit-making platform for your company.

4 Ways To Improve Supply Chain Efficiency

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The supply chain can be considered the heart of a business. The raw materials used for production are obtained through the supply chain. Deliveries of finished products to customers and end-users also go through the supply chain. The supply chain is also that part of the business in which suppliers and providers transact with the internal teams and processes, and can thus have an impact on its efficiency and productivity. It’s the process that moves business capital from procurement, then production, sales, and then on to delivery and revenue generation.

There are quite a number of opportunities to further improve the efficiency of supply chain networks in various types of business operations. To pinpoint those areas of improvement, business owners should take a close look at their data reports to identify the gaps in their processes. In financial management, for instance, you can pay less in fees as a global business by using some of the alternative points of sale (POS) software applications and payment facilities currently offered in the market.

Here are four ways in which you can improve your company’s supply chain efficiency.

1. Enhance Visibility And Visualization

One of the most important things to consider when improving your supply chain’s efficiency is to increase the visibility and visualization of your supply chain. Creating a visual representation of your supply chain logistics and processes will allow your teams to visualize exactly where your products are headed. This would also help them identify areas that might be running into some issues or in need of fine-tuning.

For example, a beverage company can use visualization software to track the status and location of raw materials which are headed for delivery to the production plant. In the production process itself, the team can monitor the plant’s output to see if regular quotas are being met.

When the products are finished, the company can use visualization to monitor the fulfillment of orders for later marketing purposes. They can also use visualization software to track the location of delivery trucks and vans and optimize delivery by coming up with better truck fleet dispatching and routing workflows. They can even find out if there would be ways to make use of the backload by instructing trucks to pick up raw materials or other supply items before returning to the warehouse. This will result in further improvement of the cost and time it takes to transport raw materials and deliver finished products.

2. Automate Your Workflow Tasks

Another way to improve your supply chain efficiency is to automate repetitive tasks and duplication processes. Automation also helps reduce the number of workers needed for the business to operate and work hours for orders processing.

For example, in a knowledge production firm, some of the work done by editors can be automated with the use of digital tools designed to detect grammar and spelling errors. With further advancements, AI-based applications could be used as substitutes for human editors handling more complex tasks. This would enable companies to reduce idle time, achieve greater efficiency, and save on operational expenses.

warehouse

The use of automation would also help attain uniform standards in workflows and speed of processes. For example, the invoice, delivery labels, and shipment bar codes of an online store are automatically printed once a purchase is made through an eCommerce platform. An application linked to the platform then sends a message to the fulfillment center to schedule the package for pick-up by the forwarding team. The only task that would have to be handled manually is putting the order label on the package.

3. Automate Your Warehouse Operations

Warehouse handling and operations could greatly benefit from automation, as software and robotic equipment can be used to handle most inventory-related tasks. For instance, you can use either bar codes or radio frequency identification (RFID) to identify, mark, and locate a specific box or product. If a product has to be retrieved, robotic mobile pallets and retrievers could go to the shelf where the item is located. It would then reach for the item and place it in its cargo hold.

This kind of warehouse management technology is already being used in the warehouses owned by some of the largest eCommerce platforms. In fact, more advanced systems can even place an order for replacement stock as soon as the inventory stock is retrieved by robots.

4. Use Analytics To Continuously Improve

Another move that would immensely improve your supply chain efficiency would be applying analytics in studying your supply chain. Analytics will help you come up with an objective evaluation of how efficient your business operations are, making it easier to identify the gaps and bottlenecks in your supply chain and logistics processes.

In a production setting, management can use analytics to identify which specific tasks are taking up too much time. They can use analytics reports to evaluate whether there are roles and functions which are just duplicating the output of other teams. They can use it to assess whether some layers in the production process do not directly create added value and do not contribute to the bottom line. They can also use data on the idle time of their workers to assess whether there are too many people in one department and consider cost-cutting measures.

You’d also be able to come up with strategies on how to continuously improve based on the findings in your analytics reports. The advantage of analytics is that it uses reported data instead of forecasted or predicted data. It’s not based on the educated estimates of production analysts even though such estimates may be based on established engineering formulas. Going back to the beverage production plant example, analytics can measure the time it took for production to finish from the time it received the orders.

Conclusion

There are a few key opportunities for companies to further improve the efficiency of their supply chain. If implemented properly, these supply chain enhancements not only help speed up production and reduce operational expenses but also improve customer/client relationships by being able to consistently deliver high-quality products and services.

5 Ways To Protect Yourself If Your Business Fails

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The downfall of a business is one of the most challenging and emotionally distressing events that can happen to anyone. It is heartbreaking to see everything you build from the start of your career crumbling down, not to mention the feeling that you can’t do anything about it.

Unfortunately, this unwanted situation is quite common, particularly for startups and small businesses that have existed for less than five years. They fail because of the following common reasons:

A Women with Glasses
  • Limited Cash Flow – Businesses that don’t have enough funds to support their operations often close down after some time.
  • Lack Of Management – Businesses that don’t have enough specific departments lack the efficiency of more organized companies, resulting in poor production.
  • Marketing Misfortune – Marketing is an essential element that will boost business sales. If marketing fails, you’re just wasting the company’s time, money, and effort as you’re not getting enough visibility and potential customers.

If your business starts to fail, the first thing to do is protect yourself from potential legal demands and other mishaps. Failure to take the necessary steps will result in serious consequences, including some issues that may prevent you from starting a business all over again.

That said, here are some ways that may help you protect yourself when your business fails:

Forming An LLC

One of the most effective ways to protect yourself and your assets from being used as payment for your outstanding debts is to start an LLC or Limited Liability Company. It’s an important step if you think your business is gradually crumbling into pieces.

Forming an LLC will help you to become legally separated from your company. If you can no longer pay your debts using the company funds, debtors won’t be able to go after your personal assets, such as estate properties, cars, and bank accounts.

However, there are exceptions to this rule. You could still be accountable for personal debts you guarantee, and, if you are indeed liable, you could be sued for your misconduct. You may want to consider the following tips to get the most out of your protection:

Acquire LLC Insurance

If someone files a lawsuit against you instead of your business, the LLC you formed won’t be able to protect you. Not to mention, the degree of damage it can incur you can be catastrophic. However, an LLC insurance will shield you and your company from getting sued.

Make It An Independent Business Entity

The court may take an LLC as an alter-ego if you and other owners continue to mix personal assets with that of your company to avoid tax liabilities. Therefore, make sure that your LLC will remain independent. It should have its own bank accounts, contracts, and other crucial files that must be signed on behalf of your LLC.

Transfer Company Funds To Your Personal Account Gradually

This is an effective technique since funds not linked to an LLC will not be liable to pay your creditors. But be careful because any transfer you make while you still have outstanding debts can be regarded as a fraudulent transfer, and you can be sued for that.

Never Guarantee Any Debts Personally

If your company starts to fail, all debts you have guaranteed have to be paid personally. This rule applies even if your business is incorporated or LLC, and even if they’re debts belonging to the company.

In most cases, a personal guarantee is a common requirement when filing bank loans, and you can’t do anything in this situation but agree to the contract. However, you can negotiate with landlords and suppliers to get the guarantee out of the process.

A Man Holding Credit Cards

Secure Business Records

Bookkeeping is an important process that allows you to maintain and keep all crucial business documents safe. For example, keeping a record of all the money you invest in a business may grant you an ABIL or Allowable Business Investment Loss, especially when the business starts to fail.

An ABIL will help you reduce the tax you have to pay by weighing the money you lost against your personal income. This way, you can lessen the loss and recover some of the money you lost. That’s why it’s crucial to maintain good records, especially on how your assets are separated from your business.

Seek Professional Help When Necessary

In most cases, many business owners would want to do plenty of things all by themselves. Unfortunately, they often forget to seek professional assistance, especially at this point when money flows in, and this can be a serious problem in the future.

For example, having a lawyer who will help you document and record everything to secure your investment and protect you in case your business fails. Also, it would be best to consult a lawyer when you set up your business to protect personal belongings during a business disaster.

File For Bankruptcy

Legally speaking, you’re not allowed to close down a business while it still has liabilities to settle, such as outstanding debts and other deficits. Also, you can’t put your business on sale in the market while you have creditors waiting for you to pay them. However, there’s one way to protect you from these unfortunate circumstances, filing for bankruptcy.

Filing for bankruptcy is one way to get you out in the direst situations, but it should not be treated as ‘get out of trouble’ solution. You have to remember that filing for bankruptcy doesn’t mean you and your company will be free of any accountability.

During the process, all business assets will be seized and sold to reduce your debts as much as possible. It prevents your creditors from filing a case against you, which could be expensive and time-consuming, considering they have lost a significant amount of money.

Bankruptcy can give you another opportunity to start a new venture. But this time, make sure you operate the business properly to protect yourself from serious legal consequences that could hinder your progress again.

Final Words

If your business fails, one of your top priorities is to protect yourself from possible liabilities, such as outstanding debts. Failure to take the first step will result in severe and costly legal processes.

You may refer to the discussion above for protection when your business venture fails. These include forming an LLC, avoiding guaranteeing debts personally, maintaining business records, seeking professional legal counsel, and filing for bankruptcy.

Lastly, you may have another chance to start a new business journey. But make sure to do what’s right to avoid facing hefty legal damages.

Business Management 101: Planning for Success

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What makes a business successfully compete with the best in the industry? How does a new company overcome the various hurdles with business management? It’s not easy to answer, as every entrepreneur has a different situation and scenario to deal with.

However, just because everyone experiences business management differently doesn’t mean there aren’t patterns you can use. For example, you can use the success of other businesses as a roadmap for your company. If you’re looking to take your company to the top, it’s all about planning for success. Here are a few surefire ways to future-proof business endeavors.

Data analytics in business

Data Management Platforms

First and foremost, one of the best ways to prepare your company in today’s digital age is to work on your data management platform. The idea is to make things as easy as possible for you and your employees, opening up the opportunity for efficient and optimal company processes.

The good news is that you won’t have to tackle data management independently. There are cloud-based services available to help you get started as soon as possible. With the help of good data management platforms, you can manage your company from anywhere. So long as you have access to your smartphone or laptop, you can manage your business with the help of the cloud.

Programs and Services Geared Toward Communication

You’ll likely have to deal with inbound and outbound calls no matter which industry you choose. It’s especially true for the call center industry, so it’s best to go for services specifically designed to help new businesses flourish. One such specialized software service is the predictive dialer, which you can find here at convoso.com/predictive-dialer. It’s a cloud-based predictive dialer meant to decrease wait time and increase the time agents spend talking and solving issues.

Companies use most types of software geared toward communication to get ahead in the industry, specifically with call centers. While the type of software you use depends on the industry, there’s no denying that communication is something every business owner has to get right.

Web Design — Specifically for Conversion

It’s easy to get carried away with marketing campaigns, especially if you want to experience success as soon as possible. However, a great marketing campaign won’t amount to much if the landing page isn’t optimized. The result is high web traffic but a low conversion rate. To help turn things around and convince online users to become paying customers, it’s all about web optimization.

Keep things simple, and get straight to the point. The sooner you can get online users to the checkout page, the easier it will be to increase your company’s conversion rates.

Conclusion

The exciting part about business management is how a little bit of preparation can go a long way. Give yourself enough time to prepare, and ensure that you get a fantastic start. If you have a challenging time formulating a plan, you can use the success of other new companies as a roadmap.

5 Ways You Can Tackle Your Debt

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Living with debt is a reality that too many Americans face. It can be hard to go on and live your life when debt collectors are constantly calling you and you never have any money left in your bank account after payday.

According to recent studies, 79 million Americans are living with some degree of debt. It affects every aspect of your life and can be mentally draining. Stress, depression, and anxiety can begin to consume you if you’re living with a debt that you’re unsure how to pay off.

There are ways you can tackle your debt and get your life back. Not every option is going to be the right one for you, but here are 5 ways you can deal with your debt and get your life back.

Ask A Professional

Debt is a serious problem that can lead to serious consequences. Living with a high amount of unpaid debt can lower your credit score and make it hard to get a loan or even rent an apartment!

If you’re dealing with a lot of debt and don’t know how to go about tackling it then your best bet is to talk to a professional. Set a meeting with a debt or financial counselor. They’ll go over all of your debt with you and provide you with options for tackling it based on your unique situation.

A professional can refer you to other resources that could help lower some of your debt. They can also help you figure out where you can cut costs in your day-to-day life to start repaying your debts. They are seasoned professionals who will help you determine a plan to improve your financial future.

carton illustration about bank defaulter

Avoid It

Obviously, this won’t be much help to you if you already have debt, but the best way to deal with debt is to avoid it. Don’t take out loans that you can’t repay. Don’t buy that $1,000 cell phone just because you’re positive you can afford the $50 monthly payments.

One medical or personal emergency, unemployment, or a number of other unexpected factors could leave you unable to afford that monthly payment. Never buy something unless you could afford the pay the full amount, right then and there, in cash and still be financially comfortable.

Avoid falling into a debt trap by paying all of your bills in full and on time when possible. Never use your credit card to withdraw cash at an atm. When you do find yourself in debt you need to be proactive. Don’t wait too long to take care of the problem because it will only become exponentially worse.

File Bankruptcy

Sometimes we get ourselves into a situation that we can’t get out of. When that happens, it’s time to take a step back and try something different. You could spend the rest of your life chipping away at insurmountable debt, only for it to be shifted to your spouse or family members after you pass.

There are different types of bankruptcy you can file for so you’d need to speak with a professional to determine which is right for your situation. Bankruptcy should be a last resort, but it can be so worth it.

Filing for bankruptcy, “will give you a fresh start and allow you to take back control of your life,” says Karl S. Pearson, founder of Pearson Law, PLC, and one of the bankruptcy lawyers in Scottsdale AZ. Some forms of bankruptcy even allow you to retain your assets, including your car and home.

Payment Plans

Staring down thousands of dollars of debt is an overwhelming and depressing feeling. It can be hard to imagine ever coming out from under this burden, but it is possible. Most companies understand the financial burden that debt can place on a person and are willing to work with you if you communicate with them.

Call whoever is in charge of your debt and discuss your options with them. Most companies are more than willing to schedule set payments with you on a specific payment plan. Remember, these companies simply want to see progress against the debt. They don’t expect you to pay it all off at once.

Make your minimum payments on time every month to ensure that a late fee isn’t added to your debt. If you ever can’t make your scheduled payment then you need to call the company immediately and inform them. Oftentimes, they’ll be more understanding than you think and give you an extension.

Take A Class

Many people find themselves victim to debt because of bad financial choices and lack of knowledge about how their finances or credit works. The best way to start working toward becoming debt free is to grow your knowledge about how finances and credit work, and how they should work for you.

You can take classes online or even at a local community college if one is offered in your area. It’ll give you the chance to learn the ins and outs of what debt is, how it happens, and ways you can avoid it in the future.

5 Things to Consider Before Going Guarantor on Your Child’s Home Loan

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Most parents are more than happy to support their children, including lending them money and helping them with everyday life decisions. However, going guarantor on their home loan is a significant commitment to make.

Being a guarantor means accepting liability for the portion of the loan you guaranteed, which may cause problems if the worst happens and your child defaults on it. Before you agree to help your children in this way, take the time to think about the following factors.

Getting Started with Family Life Insurance

The Professional Property Advice They Received

If you haven’t had much experience in the property purchasing field, ask your child whether they’ve received expert advice from a property investment advisor. Having someone who works in the industry advise them of their options can mean that being a guarantor won’t always be necessary.

Property advisors can review your child’s financial situation and help them work out what they can afford the repayments they can expect, and the safest options to secure a property loan. If they recommend a guarantor for home loan certainty, you can at least enjoy more confidence knowing that your child received professional advice to reach that conclusion.

The Risks

Though you would likely do anything to give your child the best chance of success in life, it’s helpful to be aware of the risks of going guarantor on a home loan.

It’s essential to understand that if they can’t cover their monthly repayments, you may be liable for the money they owe. This might occur if the home is sold to cover the mortgage, but the bank sells the property for less than the total owed. In such cases, the guarantor is generally required to cover the difference.

The Alternatives

If you meet with property experts and financial advisors, you can learn all about the different ways to fund a home. Having a family member act as a guarantor is one of them, but there are other ways you may be able to help your child without taking on such a significant responsibility.

You may, for example, decide to provide them with a one-off gift. Just allow for gift tax if you choose this route. Otherwise, you might help them save by allowing them to move in with you rent-free while they earn the money they will put towards their deposit.

Some parents decide to purchase the property themselves, while others pay for their child to see a property advisor. You can do many things to help your child move into their first home without exposing yourself to risks that could damage your own financial situation.  

Independent Advice

Your child probably sought professional advice when deciding to purchase a home, so there’s no reason why you can’t also seek advice before becoming a guarantor. Find a financial expert who can answer any questions you may have about how it works and if there is anything you can do to minimize the associated risks.

Set Clear Expectations

If you decide to go ahead with being a guarantor for your child, make sure your expectations are clear. Set a financial limit, such as 10-20% of the property price, and discuss when your financial involvement in their mortgage ends. Generally, this is when there is enough equity for them to remove you as guarantor.

Most parents would go to the ends of the earth for their children, but anything involving your financial future requires careful consideration. Weigh up the pros and cons before you decide to help your child fulfill their dreams of becoming a homeowner.

4 Factors that Should Determine Your Decision to Sell Silver

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Gold and silver investors don’t just accumulate bullion. There comes a point when savvy investors will want to realize their gains by selling part or all of their collection, and timing that moment can be difficult.

Going on price alone can quickly turn into a trap. It’s human nature to move off of an asset when prices start to fall. You’re worried about losing value in these assets. But if you can resist the urge to panic sell, the question becomes – when should you sell silver?

Silver

#1 You Have a Plan for the Proceeds

The secret to mastering human nature and resisting panic selling is managing your investments with a plan. Don’t sell because you’re chasing prices; sell because you have a plan for the proceeds. That plan could be:

  • Taking advantage of a new investment opportunity.
  • Going on a vacation you’ve always wanted.
  • Turning your investments into a down payment for real estate.

Slowing down and operating on your own schedule can also help you find out where to sell silver coins for the right price. Part of making the most of your investment is making sure you get a fair price.

#2 You Are Outgrowing Your Storage Solution

Storing physical bullion comes with its own challenges. Experienced bullion investors will have their preferred methods and take precautions that will keep silver away from sunlight exposure and chemicals in the air.

However, space can still be tight, especially if you’ve been focused on silver. It may be time to sell some of your silver coins because you’ve run out of space. Make room when prices are high so that you’re ready for the next dip.

Because of the large price differential, you can make more out of your storage by turning silver into gold. Many investors start with silver because of the lower barrier to entry, but as your holdings increase, it may make sense to recalibrate your silver/gold split.

#3 You Need to Rebalance Your Assets

Assets don’t grow at the same pace. That’s one of the basic principles behind diversifying your assets, to begin with. Your goal is to balance risk vs. reward. That also means that at certain points, you need to rebalance your portfolio, as one asset class outperforming another can create an imbalance.

After a recession or a period of economic or political uncertainty, gold and silver assets may take up a larger percentage of your portfolio than you intended. This is great news because it means your bullion has done its job.

But as the economy rebounds, historical patterns suggest that the stock market would experience faster growth, and you don’t want to miss out on that opportunity either.

An unbalanced portfolio could carry more risk or be designed for slower growth than you intended. Recalibrate your portfolio to make sure you’re primed for what’s to come.

#4 You Are Planning Your Estate

Estate planning can also play an important role in your decision to sell gold or silver. You may not want an heir to have to take on the job of finding the best place or time to sell silver when you could do it best. You can simplify the process by handling selling silver on your own and leaving cash instead.

Money Mistakes – 5 Things You Need To Know If You’ve Made A Mistake On Your Tax Return

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Dealing with different taxes is no fun at the best of times. Nobody enjoys handing their hard-earned cash over to the government, and although we love receiving tax returns, organizing all the paperwork is a tedious and complex process. This can sometimes lead to mistakes, which can have rather significant consequences if you don’t get them fixed. So today, we’re going over what you should do if you’ve got something wrong on your tax return:

You Should Probably Seek Professional Guidance

First and foremost, it’s time to call in a professional. Filing your own taxes can save you a bit of cash upfront, but if you’ve made a mistake, you really don’t want to try to fix it alone. Run a quick Google search for a tax accountant near me, and select an agent who can fix up your figures and ensure you have the correct information to submit.

You’ll Need to Submit an Amendment

Figuring out the numbers precisely is vital at this stage as you’re going to need to submit an amendment. While you might get away with accidentally submitting the wrong information to the tax office once, if your figures are also wrong in your amendment, you might find yourself in some pretty serious trouble. The good news is that your selected tax accountant will be able to get everything fixed up properly, so you can avoid making the same mistake again.

What if your Mistake is Related to a Self-Managed Retirement Fund?

Calculator with money

It’s important to note that if you have a self-managed retirement fund, you’re going to need to get in touch with your accountant. Mistakes on your tax return may affect your account if the issue was related to it, so your personal accountant or financial advisor needs to be kept in the loop.

You Could be Audited

The tax office is within its rights to randomly audit anyone at any time. However, your chances of being audited will increase significantly if you have made a mistake on your tax return. Because of this, it is important to ensure that you have all receipts and documentation organized and ready in case this occurs.

You May Face Penalties

Finally, it is important to be aware of the fact that you may face penalties if your mistake is significant or goes uncorrected. We don’t say this to scare you but to prepare you for the possibility.

In most cases, as long as you take steps to rectify the issue, the worst that will happen is that you will receive a fine. However, if your mistake is large enough and goes uncorrected for long enough, it could be considered tax evasion. So, it is important to get things sorted as efficiently as possible.

Making a mistake on your tax return isn’t the end of the world, but it is something that you need to correct swiftly. The tips in this article will help you do this, but it is important to remember that our first point really is vital. While it can be tempting to try to fix the issue yourself, having a professional rectify things not only ensures that they’re correct but also provides you a certain level of protection moving forward. It really is your best course of action. You can also claim back any fees associated with doing your taxes in the next financial year, so it ends up paying for itself. Good luck.

What to Do if You’ve Been Scammed by a Ponzi Scheme

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It can sometimes be silly to think about the people that get caught into all sorts of ridiculous ‘get rich quick schemes. Most people will probably tell themselves that they’ll never be conned into such things, but you never know what might happen. The invitation for a potential Ponzi scheme might come from a trusted source, urging you to invest as much as possible now as it’s set to blow up. Something like NFT tends to ring a bell as the most popular form of Ponzi scheme.

No matter the scenario, people have been on the receiving end of Ponzi schemes, and they often don’t know who to turn to. It’s understandable, as such methods can make it challenging for anyone to push back and turn things around. Here’s what you can do if you’ve been scammed by a Ponzi scheme.

Look into Various Chargeback Options

Keep in mind that not every victim of a scam can get their money back, which is why it’s crucial to look into as many services as possible that can help. For example, chargeback companies give you the opportunities you need to get back your hard-earned money after being the victim of a scam. Aside from letting your bank know, look into various hargeback options. You can check this Payback LTD review to see if it’s a service you’re comfortable trying.

Cut off all Communication and Interaction

Without a doubt, one of the first things you should do if you feel you’ve been scammed is to cut off all communication with the fraudsters. The trouble with many Ponzi schemes is that people still invest cash if they don’t know for sure that it’s a scam; the issue with that is you could end up losing so much more by the time you finally realize that it’s a scam — resulting in a worse situation overall.

Cut off Communication

Even if you feel like you don’t have enough evidence to prove you’ve been scammed, it’s crucial to cut off communications, as they could end up reassuring you and tricking you into investing more money.

Consider all of the Information you’ve Provided the Fraudsters

It’s understandable to get somewhat personal with those involved with a Ponzi scheme, perhaps to the point where you end up giving them sensitive information. If it happens to include your bank information, ensure that you let your bank know as soon as possible.

Any account you have that the fraudsters could potentially access should be changed, including your password and other security measures. Anything that you feel is compromised by the scam, make changes as soon as you can.

Conclusion

Being caught in a Ponzi scheme can be stressful, and it can feel like you’re alone on the matter. The good news is there are always services you can count on, even if you might not have too much evidence to tip the odds in your favor. With a bit of research, you can find assistance that can help you recover lost funds — especially in an age where Ponzi schemes are so commonplace.