Tag Archives: Finance

You Know You Want It: The Connection Between Emotions and Spending

You walk into a clothing store just to admire the displays. You saw this beautiful dress — and without comparing the style, the material, and the quality to those next to it, you immediately decide that you want to purchase it. It’s just so you. All your sanity seems to go out the window as you indulge in the purchase.

We humans aren’t particularly rational when it comes to money, and the above scenario is a perfect example it.

The Link Between Emotions and Spending

Money is strongly connected to our emotions because spending in general or indulging in a particular purchase makes us feel better for a moment but lets our cognitive evaluations lapse. This is proven by the study Misery not Miserly: Sad and Self-Focused Individuals Spend More published in Psychological Science.

In the experiment, participants were grouped into two: one was asked to watch a sad video clip, while the other was asked to watch one that does not spark any emotion. The participants could then purchase ordinary commodities at various prices. The group that watched the sad video clip offered nearly 300% more cash to buy the commodities.

The Consequences of an Emotional Attachment to Money

Spending money depending on your emotions is common and can cause numerous problems. It sometimes results in costly purchases and can consistently ruin a budget. Plus, making financial decisions based on our emotions rather than our budget and needs make us experience buyer’s remorse later on.

In other cases, emotional spending can really take on your personal debt. Quick tip: if the debt has gone out of control, taking out a quick cash loan to consolidate your finance will help you manage it easily.

Dealing with Emotional Spending

One of the best ways to deal with emotional spending is to limit your exposure to situations that tempt you to spend. Limit your exposure to advertising, for instance. If it’s the mall, visit only a few times. The less you are aware of what you can buy, the less chance for you to develop a sudden need for that item.

But the goal here, really, is not to stop buying anything fun. It’s to simply become more conscious of your shopping habits, because when you do, you’ll develop greater control over your finances — even with feelings of excitement or sadness kick in.

Saving Money: How to Begin and Stick to the Plan

The problem with saving is starting. Most people think about spending less and putting more money in the bank but just don’t get around to starting it. The longer you wait or procrastinate, the more money you’re losing that otherwise would’ve ended up in your bank account. The more cash on hand, the more likely you will spend it.

To help you solve this predicament, you need serious dedication. Remember that this is something you should do for your own future. Here are some proven tips to get you started.

Make a list

Whatever you spend this month, write it down. Make a list of every purchase, from your morning cappuccino to the new air filter you just put in your car to that new pair of running shoes. At the end of the month, add the amount to your bills. List things down in categories; for example: gas, car maintenance, groceries, rent, luxuries, etc.

Figure out what to remove from your expenses

From your categorized list you will see how you’re spending every cent. That’s where you’ll figure out where to save; hint: cut down on the luxuries. If you run to Starbucks every morning for your coffee, think about making your own at home instead. Don’t buy things you don’t need. This is one of the worst ways to spend your money. If you’re taking medicines and have a PBM (pharmacy benefit management), call a consultant to help you control the PBM cost, suggests crystalclearrx.com.

Have a goal

It’s easier to save money if you know what you’re saving for, so set a goal. This will also help you dictate how much you’re supposed to set aside every month. For example, if you’re thinking of having an emergency fund in case you’re out of a job, save money that will last at least six months without compromising on your lifestyle too much. Another way to save is to separate the goals physically, which means getting a separate bank account for that vacation or that new car. Talk to your bank about this goal and they’ll happily help you out.

“The journey of a thousand miles begins with a single step”, Lao Tzu said. So it is with money: it begins with a single penny.

Loans: Money Solutions for Different Needs

Money Loan

You may come at a point in your life when you are in dire need of money. Financial troubles or needs are common, and there are many ways you can get the needed funds. Borrowing is one way of getting a large amount of money quickly.

Considering the Debt

Before you borrow money, consider if you can handle the debt. Make sure you can repay the loan. Be certain if you need to buy or pay for the item you want.

Paying for an Education

There are different types of loans. One such loan is the all too common education loan. Students can get this to pay for university fees, books and other expenses during their studies.

Solving Business Troubles

Another type of loan is the business loan. You need to repay this on a specific date, with additional interest, of course. Business loans are great for solving business cash flow problems.

Borrowing for Yourself

AP CREDIT Licensed Moneylender says a personal loan is another type that is quite popular in Singapore. You get fixed interest rates and your repayments are the same each month. You can get a personal loan to pay for your car, your house or other debts.

Loaning to Foreigners

A foreigner loan is a rather special kind given only to non-Singaporeans permitted to work in Singapore. These foreigners may be businessmen instead of average workers.

Getting Instant Cash

A loan meant for emergencies is the instant cash loan. You can instantly get the cash you need, although you need to have proof of income. Interest rates are high as well for instant cash loans. It may be best for you to only apply for this when you have an emergency.

There are other types not mentioned here. Banks and licensed money lending companies can help you learn about other loans.

Need Fast Cash? Consider Online Loans

Processing an Online Loan

Need instant cash, but don’t have the right qualifications to borrow from traditional lenders? Consider getting fast cash through a personal loan. Online personal loans are ideal for people who have an immediate need for cash, as well as those with bad credit who aren’t eligible to apply for loans by banks and other traditional lending institutions.

Still need a little convincing? Below are five reasons to consider fast cash online personal loans:

  1. Simple Terms and Conditions

Personal online loans give borrowers quick access to cash, with terms and conditions. This basically means that unlike loans from traditional lenders, they may only require simple requirements such as being of age and your personal tax summary or other proofs of regular monthly income.

  1. You Don’t have to Worry About having Bad Credit

The straightforward requirements for loan eligibility set by providers rarely take into account the borrower’s credit history or current finances. As long as the borrower meets all the minimum eligibility requirements, they may qualify.

  1. Online Loans are Available to Everyone

Whether you’re looking for some quick cash for medical expenses, fixing your car or doing some much needed home improvements, considering that you meet the requirements, you can choose from many online loan options. This corrects the prevailing myth that online loans are only for people with bad credit.

  1. Significant Loan Amount

It is worth mentioning that, since online personal loans are categorised as fast or emergency loans, they are normally unsecured and have shorter terms. Despite this, however, fast cash providers, such as Rapid Loans, say borrowers can get a significant sum starting from $1,000 to as much as $10,000 depending on your requirements and the online lender.

  1. Faster Loan Application and Approval Process

Undoubtedly, among the many benefits delivered by online loans, the fast application and approval process are the biggest pulls, since the majority of those who apply need instant cash as soon as possible. Depending on the specific lender, you can receive your money in less than an hour or within the day.

Emergencies may happen any day. Know your options in case you need fast cash.

Easy Ways to Get Money for Your Wedding

Wedding Rings

Being wed is one of the more important highlights of living. It means you are now ready to have a family of your own. You are now ready to take on the responsibility and accountability not just for you own but for others in your soon-to be family.

However, it is no secret that weddings, no matter how simple they are celebrated, require some serious financial considerations. Unless you are already wealthy, then there is no need to read this. However, for the average Joe, you may need to save a few of your monthly budget just for this purpose alone.

In some cases, you may want to consider the following as options to earn extra for your wedding.

Maximise the Power of the Web

Sell some of your used stuff online. You can make money by auctioning them on eBay or even directly selling them on Craigslist as well as other online market places. You can also start doing some affiliate selling of products that you truly enjoy to your friends’ network on Facebook.

Maximise your contacts and networks and spread the word about what you are doing and what you aim to achieve. They will be more than happy to help you out.

Provide Sitting Services

If you naturally love babies, then why not offer babysitting services to neighbours? Or if they have a dog and you are simply fond of them, then you can also be a dog sitter. Or, if you know a friend who will need to be away for some time, maybe you can sit her property as a house sitter. There are plenty of online sites that can point you to clients looking for such services.

Drive Other People

If you got wheels and extra time, you can sign up with either Lyft or Uber and drive people to their destinations while earning some extra buck on your spare time. Ridesharing is now fast becoming popular especially among folks who have smartphones and who dislike the rudeness and exorbitant fares of some taxis.

Be a Virtual Worker

So many online work opportunities will only require a few hours of your time. You can join paid survey sites as well as paid focus group sites. If you love writing, strut your skills on UpWork or Elance.

Short-Term Loans

While it is not a good idea to begin your marriage in debt, rapid finance is a quick way to get cash for your wedding, Rapid Loans suggests. And since it offers no collateral, low interest rates, and quick payback terms, the benefits will be more on your side.

There are other ways on how you can earn some extra cash to add to your wedding budget. The Internet is a treasure trove of resources. You just have to find those that are legitimate and those that you will definitely enjoy doing.

Personal Finance: 5 Areas to Get on the Right Track

Personal Finance in Michigan

Teenagers are big consumers in today’s economy, with a spending power of as much as $91 billion in 2011, by one estimate. Even with this statistic, though, few are saving for college or other long-term financial goals, even fewer have a basic understanding of personal finance and how to excel at it.

You don’t need to understand everything about personal finance, but you do need to know the basics to set and achieve better financial goals. To better prepare for your financial future, you need to see the bigger picture, and this consists of small things about your money.

  1. Money Management

Setting financial goals should include budgeting, getting insurance, and estate planning. You should make money choices based on your goals, values, and vision for your financial future.

Minnesota-based Kalsee Credit Union explains that knowing your money personality gives you a much needed awareness in approaching your spending and saving habits. Whether it’s living frugally and having everything on a budget, a secure financial future starts with responsible money management.

  1. Income Flow

The more income streams you have, the better. This can be active income (paycheck or instances where you trade your time for money), portfolio (from investments), or passive income (money from rental properties or other assets).The goal should be to have a backup in case one stream fails, and that you’re relying heavily on one income source.

  1. Work

This is your “day job” where you get active income. Do know, however, that it’s hard to be financially stable if you rely solely on active income because this is taxed the highest and there are only so many hours you can devote to work. This is why some of the wealthiest people get to the top not only from their paycheck but with investments and other earnings.

  1. Debt

There’s good debt and there’s bad debt; both open up opportunities, but only if you know how to handle them properly. A home loan, for example, gives you the opportunity to become a homeowner, but that won’t mean much if you can’t pay it in the end.

Regardless of the type, you have to repay debt. Focus on settling this and you’ll set yourself up for financial security.

  1. Savings

This is literally money in the bank. Saving hard-earned cash for a particular goal gives you a cushion in case something goes wrong should be your top saving goal. After that, any amount you can put aside can go to anything your heart desires.

Start by saving money ahead of time rather than charging everything on your credit card. This lets you stay out of financial trouble.

Personal finance involves numerous factors, but you don’t have to master all. Know where you want to focus on first, and then set your goals based on those to move forward with financial security.