Deeply indebted Lisa Marie Presley and manager in dueling lawsuits

LOS ANGELES - Lisa Marie Presley, the only daughter of Elvis Presley, says she is facing financial ruin and has filed a $100 million lawsuit accusing her former business manager of negligence and mismanaging her finances.

Her ex-manager has filed his own lawsuit, accusing Presley, 50, of squandering her famous father's inheritance because of her lavish lifestyle. The lawsuit seeks $800,000 in unpaid bills.

The dueling lawsuits, filed earlier this week in Los Angeles Superior Court, follow the collapse in 2016 of Presley's fourth marriage and her announcement that she was $16 million in debt.

Presley was just 9 years old when Elvis died in 1977, leaving her his sole heir. Her affairs have been managed by Barry Siegel since 1993, when she came into her inheritance through a trust.

Her lawsuit said Presley's "11-year odyssey to financial ruin" began in 2005 and alleged that as result of Siegel’s actions, "Lisa has been damaged in an amount that has not yet been fully ascertained, but is believed to be in excess of $100 million."

The 2005 deal she was referring to involved income from Elvis' former home Graceland and his intellectual property rights.

The lawsuit said that by 2016, the trust was left with $14,000 in cash and over $500,000 in credit card debt.

Siegel's lawsuit said Lisa Marie has "twice squandered" her inheritance and she had been repeatedly told to curb "her spendthrift ways."

Siegel's attorney, Leon Gladstone, said in a statement on Friday that the 2005 deal Presley was complaining about "cleared up over $20 million in debts Lisa had incurred and netted her over $40 million cash and a multi-million dollar income stream, most of which she managed to squander in the ensuing years."

"It’s clear Lisa Marie is going through a difficult time in her life and looking to blame others instead of taking responsibility for her actions," Gladstone said.

Presley launched her own career as a singer in 2003 and has released three albums to mixed success. She is better known for her two-year marriage to singer Michael Jackson and her 108-day marriage to actor Nicholas Cage.

source: news.abs-cbn.com

Financial infidelity: One in five Americans hides bank account

One in five Americans has hidden at least one bank account or credit card from their spouse or partner, a survey has found.

Younger people tended to be more likely to keep an account from a partner, with almost a third of millennials (people aged 18-37) admitting to having done so, according to the study by YouGov Plc, an internet-based market research and data analytics firm.

Twenty-four percent of Gen Xers (aged 38 to 53) had hidden assets, and 17 percent of baby boomers (54 to 72) admitted to having hidden an account, it added.

Just eight percent of people 73 or older had hidden a card or account, it said.

The study also found that almost a third (31 percent) of Americans said that keeping a card or account secret was worse than cheating romantically.

Meanwhile, 11 percent of all couples say they never discuss their combined finances.

source: news.abs-cbn.com

Buying your first home? Here are 7 things to consider

MANILA - We all dream of owning a home someday. And why not? A home means stability and permanence, where one’s family can grow roots, seek refuge and build a life together. At the same time, it is always a valuable asset and an investment in itself.

Have you thought about buying your own home but don’t know where to start? Have you ever wondered if you can even afford it? If you can, do you have an idea of what your money can buy? Whether you’re thinking of getting a tiny studio unit or a sprawling house with a large yard, you will need to put considerable thought into your plan.


Owning a home calls for responsibility and commitment. It calls for a lot of thought and a careful evaluation of your lifestyle, finances, as well as your present and future needs. Here are 7 factors to consider in deciding if you are ready to own your first home.

1. Are you ready for this investment?

Do you have enough funds to buy your dream home? Do you have a regular source of income? Are you getting a big inheritance soon? A house is usually a considerable investment, and you need to have enough money to be able to purchase one. If you plan to take out a loan for your home, you still need to have the financial capacity in order to qualify for financing schemes offered by both banks and developers.

2. Consider your present and future plans.

A house is not exactly easy to dispose, considering the sums involved as well as the paperwork and taxes that it entails. This is why you have to know your reasons for buying a house, and think how this fits with your life plans. For instance, are you planning to move out of the country anytime soon? If so, having a house makes you less mobile. Are you planning to have children soon? If so, you might want to think about getting something bigger than a tiny studio in order to accommodate your growing brood.

3. Location, location, location.

This is one of the most important considerations you have to think about when getting a house. Location almost always dictates price, which means while you may be able to afford a townhouse outside Metro Manila, you may have to shell out more for a similar unit in the city. At the same time, its location will affect your life – the amount of time you need to go to work, or the places you will most likely frequent. You need to think of a location that is best suited for your needs.

4. Let's talk financing.

Even if you do not have cash to pay upfront for a house, you may actually qualify for financing. Banks offer loans, as well as developers. Loans could stretch for as long as 25 years, depending on your age. Gauge your capacity to do regular amortizations, and check how it would impact your cash flow. Most financial experts recommend that payments on homes should constitute no more than 1/3 of your regular expenses. Also look at interest rates.

5. Look to the future and appreciation potential.

When buying a house, you should also consider how its value is likely to increase in the future. Look at developments that could possibly lead to an increase in the property’s value – new roads, malls or other commercial developments usually push property values higher. This means that you can actually sell your property later on and stand to earn from the transaction.

6. Remember the warning "Buyer Beware."

When buying property, you need to make sure that everything about the transaction is above board – the title should be free from liens and encumbrances, taxes should have been paid, and association dues settled. You also want an assurance that your house was built well and in keeping with building standards. This is why it is important to know the background of the seller. Some developers have a solid track record, but even then, make sure to do your research about the seller.

7. Ask yourself: To build or to buy?

Do you prefer to build your own house instead of buying one? This allows you to design everything according to your own wishes. However, it is also a more time-consuming process since you have to deal with an architect and contractor, while checking regularly on the work. You also need to find people that you can trust to build your home.

Owning your first home is a major decision, so make sure to think through the process before making any decision. Ask questions, do your research, and think about your life plans before you make the decision.

source: news.abs-cbn.com

Tips for Investing in Your 20s

It’s a great idea to begin investing as early as possible. However, many people are a bit too timid to begin investing in their 20s, fearing they aren’t skilled or knowledgeable enough. For others, the idea of putting money into investments seems silly when there are more important things to do with that money, like pay bills. However, if you really want to secure a strong financial future for yourself, then it is well worth getting into investing early. Here are some tips you can use as you get started.

Don’t Buy Into the Limited Resources Myth

As mentioned, many 20-somethings don’t even think about investing because they believe they don’t have the extra money to do it. This isn’t really true, though. For most people, this is the time when they have some extra cash because they don’t have kids, mortgages or other obligations that can drain finances. It is probably going to be easier for you to find extra money now than in the future.

Start Small

Another cause for hesitation is often a fear of not knowing what to do. You don’t have to jump in with both feet right from the start and probably shouldn’t. A good starting place is with your 401k if your employer offers one. You can try out different options and see how things go. You may even be able to learn a bit about corporate finance, like the information from UAB Online, which will be super helpful down the road. As you begin to work more with investing, you’ll begin to learn more, which will lead to more confidence and the ability to branch out with your investing.

Take a Few Risks

Since you are young, you have time on your side. A few losses won’t really hurt you in the long run because you have a lot of years ahead of you to make things up. Going with bigger risks allows you to have the chance to get big returns. If things pay off, you can get a great start to saving for your future. You should avoid sticking with just investments that have little risk because the returns are way too small. While you have time for them to add up, you still won’t be able to earn anywhere as much as you would if you took a risk every now and then.

Don’t Be Afraid to Ask for Help

You shouldn’t be afraid to get help with your investing. In fact, it is a smart idea. Despite starting out small and with easy investment, getting a professional to weigh in can be tremendously helpful. Even if you are currently enrolled in a business course, like on from Northeastern, you still can benefit from help. Not only will they be able to direct you properly, they will teach you a lot about investing that will come in handy in the years ahead.

Following these tips can help you to get started with investing now. Doing it while you are young can be incredibly beneficial to your future. The bottom line is to not let fears hold you back and to take some risks now while you have the time .

source: 20smoney.com

Searching for your first home: Rent or buy?

MANILA - Choosing your first home is likely to be one of the biggest financial decisions that you will make. As with all purchases, you can either feel you made the right choice, or regret the investment.

This is why some prefer to initially rent or lease, and then decide whether the neighborhood is right for them. But they could also miss out on the opportunity to buy when the price is more affordable.

So should you rent or buy your first home? The quick answer to this question is it depends. The decision to buy or rent depends on so many factors that varies per individual: your lifestyle, finances, future plans, and even the current real estate market.

What is right for one person may not be suitable for another. For instance, a newly married couple whose career plans include moving abroad would be in a totally different position from a large family with an entrenched business in a specific location.

There are pros and cons for each option. Here’s a run-down of the upsides and downside of buying and renting.

Buying a house means being able to hold on to a hard asset that almost always appreciates in value.

It also lets you and your family establish roots in the community.

Plus it allows you to plan out your life--where your kids will study, where you will work--for the long term.

But expect this to put a dent on your cash flow, since you will need to put in equity, which could go anywhere from 20-60% of the property value.

It also means paying real estate taxes and maintenance costs.

Should you need to dispose of it at some point, you will find this may not always be easy, and you could be at the mercy of market conditions.

Renting is easier on the pocket--you only need to worry about a downpayment and security deposit.

It also gives you a measure of flexibility. If you’re unhappy with the place or your landlord, you can simply end your contract.

 It also means not having to worry about taxes and maintenance costs, which are the landlord’s concerns.

However, property rentals rise, and it means you have to be ready to deal with increasing rental fees, depending on market conditions.

Rent is an outright monthly expense, and does not enhance your asset base.

You have to live with the terms set by the landlord. For instance, the landlord may prohibit you from keeping pets, or may not allow you to drill holes for your pictures on walls.

Still not decided? Look at each of these five factors for more help:

1. Your current life stage and lifestyle. How old are you? The younger you are, it’s more likely that your options are wide open. Career-wise, there’s a possibility of finding a new job, within or outside the city you are now in, which means renting might be better for you. Are you single or do you have a growing family that needs more space? If it’s the latter, consider how owning or renting a home affects their lifestyle.

2. Your future plans. Do you have any plans of moving abroad? If so, then you might be better off renting a starter home. Otherwise, you will have to deal with selling off your home when you leave the country. This may not come easy when you’re about to migrate, and this may not even be at a price acceptable to you. Don’t forget your significant other, if you have one. If you purchase that starter home, do you think your prospective spouse, whose parents live far away, would be happy to move there?

3. Your financial status. Can you afford to pay the down payment for the starter home that you want? If you are thinking of taking out a loan for this home, do you have enough income to support the monthly payments? Note that your expenses as a homeowner will not be limited to just the mortgage payments, but will also include maintenance costs, real estate taxes, and in some cases, condominium dues and homeowner’s fees.

4. The neighborhood where the property is located. It’s been said that there are three things to consider when you buy property, that’s location, location and location. Let’s say you have identified the neighborhood where you intend to stay for the medium term. Evaluate the neighborhood and determine if it has good potential to become a growth center. What are planned developments being undertaken by the government and other private companies in the area? If the area’s potentials look promising, and if your finances permit, then it may be worth purchasing your starter home here. On the other hand, if the neighborhood is riddled with problems such as flooding, security issues, and urban blight, you may wish to simply rent a place for the time being.

5. The current real estate market. Don’t forget to consider the current real estate market before deciding if you would purchase or just rent a property. It is always better to buy when it is a buyer’s market than a seller’s market. Plus, look at interest rates if you intend to take out a loan for this purpose. The lower the rates, the cheaper it is to buy a starter home.

source: www.abs-cbnnews.com

Trapped in debt? Here are 7 steps to free yourself

MANILA - Do you feel like you're drowning in debt? If you are, and you think there is no way to escape the debt trap, don't despair. With good planning, discipline, and a measure of sacrifice, you can retire your debt and be free from its burden.

Before you address your problem, try to look back and see how it started. You may be among thousands of Filipinos who are saddled with debt accumulated slowly over the years. This may be the result of living beyond one’s income, lack of planning, or sudden emergencies that force one to borrow, among many other factors.

For many, debt can creep up unknowingly. A personal loan here, a mortgage there, plus months of just paying the minimum amount due on your credit card, could add up until you one day find it beyond your control.

Whatever the cause, what’s important is that you take immediate action before debt paralyzes you financially and even legally. Your action will have to be on two levels – behavioral and financial – so that you can effectively cut down your debt.

 Here are seven steps to help you surmount your mounting debt:

1. Take a hard look at your finances.



This step is necessary since retiring debt calls for a sound plan that you can implement. Try to determine what you are paying for and how much. Just knowing how much you owe can surprise you. By doing this, you will also be able to determine which debt you have to prioritize, e.g. those that cost the most to maintain. You would like to retire the debt that charges you 20 percent a month ahead of the debt that charges you 12 percent a year. Understanding your finances will also allow you to come up with a workable solution.

2. Restructure the most expensive loans.

Today is a great time to restructure loans, given the low-interest rate environment. Are you paying credit card debt? Possibly with more than one credit card company? You will never get out of debt if you do not manage this. Talk to your credit card providers about restructuring the loan. You may also get a personal loan at a lower interest rate to help bring down your interest costs. Study all options available to you, while taking note of penalties and transaction fees.


3. Slash, not just cut, your monthly expenses.

Look at your lifestyle to find out where you can scale back. If you spend so much on entertainment, then cut this drastically. No more expensive night outs or fancy dinners for the time-being, unless you can find more affordable alternatives. Forget expensive vacations. Turn off the aircon and use an electric fan instead. Skip the expensive hair treatments. The cutbacks you can make will all count.

4. Sell assets. Raise cash to retire your loan by selling off assets, big and small.

Do you really need two cars? Do you need to stay in that very expensive house or would a smaller unit in a less luxurious part of town suit your purposes? Those diamond rings sitting in the closet may be your ticket to debt freedom. Even those expensive bags you picked up in your shopping sprees could fetch a fortune in the second-hand market. Selling off assets could help you bring down debt levels drastically.

5. Find additional income sources.
Find other cash sources so that you can put this toward retiring your debt. Are there additional projects you can take on or other jobs you can hold? Try tutoring children in your spare time, or baking cookies on weekends. Your creativity is your limit. This new income source will give you the elbow room to wiggle out of debt.

6. Live below, not just within, your means.

Sometimes you have to change your lifestyle drastically. You may need to dress simpler, consume less, and live a less luxurious life. You may look into selling your car and going back to taking public transportation to work, if your car loan is the cause of your debt burden. If living independently is causing you to bleed financially, think about moving back to your parents. Perhaps the kids could go to a less pricey school. The situation varies per individual, so take what is most appropriate for you.

7. Pay off as much as you can.

Try to retire as much debt as you can, to keep interest costs low and to hasten the debt retiring process. Pay more than the minimum amount due on your card. The longer you are in this situation, the more stressful it can get for you. Bite the bullet now and embrace the inconveniences and hardships it brings, knowing that this is necessary on your way to getting out of debt.

In all these, do not forget to stay focused. Don’t lose sight of your goal, which is to free yourself from debt that can affect you for life if you do not act on it now. By staying focused, you will be less tempted to spend on unnecessary items or to slack off in your debt retirement efforts.

Have a spreadsheet to help you monitor how close you are to your targets. Stay positive and remind yourself that freedom from debt will soon be at hand.

source: www.abs-cbnnews.com

Choosing an Accountant: Simplifying the Process

Trying to choose an accountant can be enough to make anyone’s head spin, especially if it’s your first time. With your finances vulnerable to their professional expertise and skill, many business owners are terribly afraid of making a disastrous mistake and putting their earnings in jeopardy.

In truth, it’s far better to be apprehensive about such a choice than it is to approach it with complacency. Your accountant will have access to your most delicate business dealings, and you need to know that you can trust them to take care of you and your enterprise.

If your search has begun, then here are a few tips to help you choose the right professional for you…

Gather Recommendations

One of the most effective ways of finding a suitable professional is to turn to your contacts and see whom the people in your network would recommend. There is no better commendation than one that comes from a person you know and trust, so if someone has a candidate that they would like to put forward, it’s worth your time to contact them. Although their actual suitability will largely come down to your personal preference, recommendations are still a useful place to start, and you know from the outset that at least one of the candidate’s clients thinks highly enough of them to tout for business on their behalf.

Assess Their Experience

You may want to gather some additional candidates to add to your list through internet recommendations or reviews, but once you have a suitable number of options to explore, a good way to whittle them down is by looking at how much relevant experience they have. As a business owner, you need someone who can prepare tax returns, and complete and archive financial documents for companies with a similar revenue and structure to yours. Additionally, they must be able to use any relevant software instrumental to your bookkeeping methods, such as cloud computing or Excel spreadsheets. If they already have clients in a similar sector, then that’s one more tick in the relevant box.

Check Their Certification 

Once you have a preferred accountant, it’s important to check their certification before you commit to anything. A country specific central body will regulate all financial professionals in your region, and to be included on their register, accountants will have to possess relevant qualifications and uphold the highest professional standards. This means that when you choose a name that features on their list, you always know that you’re getting the most for your money, and that you’re working with an individual or firm that you can rely on.

Find your perfect accountant today by following these three simple steps.

source: 20smoney.com

Money Management

Money management is important for any individual. As long as you have income and expenses, it is vital that you are able to manage your money in order to remain financially independent. The good news is that money management is a skill that can be learned so even if you have been having trouble in this area, you can learn tools to help you manage your money more effectively.

Creating a Budget

A budget is the first step in money management. This involves listing all of your income and all of your expenses. When it comes to your expenses, you need to list them in order of importance, including every amount you spend (magazine subscriptions, daily coffees, chocolates from the vending machine etc). If your expenses are greater than your income you will need to cut down on your expenses.

Cutting Down Your Expenses

Having made a budget, cutting your expenses will be much simpler. You may not have even realized you were spending so much money on small expenses. It is often a shock how quickly the small expenses add up and make the difference between financial independence and struggling financially. Look to the bottom of your expenses list and cut off the unnecessary expenses. Perhaps you could bring lunch from home each day or you could bring a coffee with you instead of buying it from a machine. Once your budget works, you need to make sure to stick to it and review it regularly.

Saving

Another important aspect of money management is saving. You should be saving money every month and should cut enough unnecessary expenses off your list in order to do this. Create a direct debit and make your savings one of your expenses to ensure you save automatically every month.

Paying Off Debts

Many people have debts that they are struggling to pay off and paying high interest rates for. If you are getting your finances under control you should sort out your debt as much as possible. Personal cash loans such as car title loans can help. Personal cash loans can be used to pay off individual debts or you can use a loan such as car title loans in Sacramento to help you consolidate your debt. This will involve you paying off your smaller individual loans, leaving you with one larger loan with a more competitive interest rate. This will help you manage your finances.

source: 20smoney.com

Your Mortgage vs. A Cash Offer: What You Can Do

Cash is king in most business transactions, and it’s no different with mortgages. A cash offer can be very tempting for a seller because there is no risk of the buyer defaulting on their payment.

However, all is not lost if you’re going the way of the mortgage. You’ll just want to follow the steps below to make sure your offer is as appealing as possible.


1. Get your lender to back you up

A pre-approval letter from your lender is a must. It will also help if you can get your lender or real estate agent to show the seller financial statements that clearly display you’re a qualified homebuyer.

2. Have an appraisal ready

You don’t want to make the seller wait for your loan to be approved. Talk to your lender and find out exactly how fast they can get an appraisal done on the property, and when the loan will be approved. With some banks and mortgage brokers, it’s even possible to have an appraisal pre-ordered and ready to go.

3. Get inspections done right away

You don’t want to make the seller wait for anything. So as with everything else, get your inspection done as soon as possible.

4. Make a higher offer

When people pay with cash, they usually expect a discount. This provides an opportunity for non-cash buyers to make a higher offer. Paying more isn’t ideal, but if it’s what you have to do to get your dream home, it could be worth it.

5. Put more cash down

If you have some extra cash, consider making a higher down-payment. Instead of getting a mortgage for 70-80% of the purchase price, you could drop the financing down to 60-70% and potentially make your offer more appealing.

6. Make it personal

It’s not uncommon to write a letter to the seller, explaining a little about yourself and why you would love to purchase their home. A seller almost always appreciates knowing more about their potential buyers, and if you can strike an emotional chord, your chances of closing the deal could increase.

Bottom line:
At the end of the day, being flush with cash isn’t what makes the difference; it’s convincing the seller that you are a sound candidate to purchase their home.

If you have your finances straightened out, get things done in a timely manner, and can make a personal connection with the seller, you could very well beat out a cash offer.

source: totalmortgage.com

The Indisputable Benefits of Debt Consolidation

Surviving in the modern economic environment
 
On a regular basis, we hear about people who are simply no longer able to manage their finances effectively. Among those people, it is especially people who are struggling with medical debt which they have not willfully chosen that are to be pitied the most compassionately. The reality is that no sane person willfully chooses to become ill and this is exactly why it simply does not seem to be fair that medical debts should be treated in the same harsh manner as other kinds of financial debt such as credit cards and financial loans. Fortunately, there has been some changes in the way in which fico scores are awarded, especially as they apply to medical debt. This is providing people who are struggling with medical debt with at least some relief. The reality is that an increasing number of people are facing this problem each and every day. Living costs have escalated sharply over the last couple of years and especially so since the latest recession, which has caused a lot of problems for millions of people. There are also those people who are struggling to repay a mortgage while at the same time, they simply are not able to sell their home because of reduced property prices. It seems that a very large number of people are finding themselves in a situation where they simply can no longer cope with the current economic conditions.


The same thing applies to vehicle finance

For many people, reliable transport is critically important in order to successfully execute their duties, but just like everything else, the prices of motor vehicles have increased sharply and this requires a substantially larger loan when such a vehicle is purchased. However, especially after the recession when thousands of jobs have been lost because most corporations were left with no other choice but to reduce their labor force in order to survive under difficult economic conditions. This has resulted in the inability of many vehicle owners to afford the payment of those vehicle loans. Now, they are forced to deal with those outstanding loans and they are left with no other choice but to find an alternative way to resolve those problems. A large number of consumers struggle when they are presented with such a stressful situation and then they make very foolish decisions which often results in an even worse financial situation.

Consolidation makes a lot of sense

It can be very stressful when you are contacted on a frequent basis by various creditors, all of which are determined to collect unpaid debts. You have barely gotten off the phone with one creditor before you are forced to repeat the whole process once again with another creditor. This can drain your personal energy very quickly and can leave you with a sense of hopelessness regarding your situation. However, if you could manage to consolidate all your debts so that you are only required to deal with one creditor, that would significantly reduce the amount of stress to which you are exposed. This will lead to significantly higher energy levels which could then be utilized to effectively concentrate all of that energy on finding a way to resolve your debt problems as quickly as possible. Debt consolidation is genuinely a solution which holds many benefits for persons who are struggling with large financial debts.

source: 20smoney.com

Tips to Ensure Your Bad Credit Doesn’t Cost You a Job

Unbelievably your bad credit can cost you a job. Employers can examine you and if they discover your credit score is low, they may decide not to employ you.

Why is this?

They believe it is a mark of a lack of responsibility. Someone who cannot take care of their finances should not have a position of responsibility within the company. It is a hard reality to deal with. There are actions you can take to ensure this does not happen, though.

Establish a Secure Line of Credit

Store cards and cards for people who have bad credit are an ideal way to begin rebuilding your credit score. There are two main features to these lines of credit:

1. They have higher interest rates.

2. You can expect them to have far lower limits.

They are like the training wheels of the financial world. Once you learn how to use these correctly, you can graduate to riskier cards with higher limits and lower rates.

Utilization Rates

You should never use more than 30% of your credit limit at one time. This is known as the utilization rate. If you have a utilization rate of 30% or over, this is a sign you are financially irresponsible. It is an example of you relying on your cards to survive, and that is not a good sign.

Only go over these limits in an emergency, and make sure you get below this limit as soon as you can to preserve your credit score.

Pay On-Time and in Full

Late and partial payments have the biggest detrimental impact on your credit score. Whenever you make a purchase on a card, you should always check whether you can meet the repayment by the deadline. If you cannot do not make the purchase.

When Your Score Improves

As your score creeps towards the 680 mark this is where you start to appear on the databases of credit card companies. This is where they are interested in sending you offers for higher tier credit cards. Acting in the wrong way here can cause your score to plummet once again.  Just be sure that there are some things that can kill your credit score.

If you want to keep your chances of getting that job high, stick to the same principles as before. Only take higher tier credit cards if you know you can make the repayments and prevent yourself from getting carried away.

On the other hand, dealing with higher amounts of credit successfully can continue to push your credit score ever higher. A bad credit score can destroy your ability to get a job, but a good credit score can enhance it.

Conclusion

It is unfair that something like personal finance can now come into finding a job. However, we cannot do anything about it. Your only option is to work on improving your credit score.

It really depends on the type of job you are applying for, though. Remember that good personal finance is a mark of responsibility and integrity. If you are applying for a position that requires both of these things, expect them to check your score. If not, you might not need a good credit score.

Have you ever encountered a situation where a credit score has held you back from getting a job?

source: 20smoney.com

TIPS: Protecting your finances when selling a business

MANILA – There comes a time when entrepreneurs are faced with the tough decision of whether or not to sell the business or allow a major investor to buy a big slice of the pie.

According to John Bly, a managing member of LBA Haynes Standard, entrepreneurs should prepare their personal finances when facing mergers and acquisition opportunities.

To prepare for mergers and acquisitions if you are a small business owner, Bly suggests preparing enough reserves aside, putting yourself in a good credit position, and be ready to leverage your balance sheet.

“Your personal finances should be in order, make sure that you are ready for the transaction, that you have enough reserves, that you have enough capital, and that your bank supports you,” he told ANC’s “On The Money.”

Financial adviser Salve Duplito, meanwhile, advises entrepreneurs to “think cash.”

“Whether you are buying another business or being bought, being in a position where you either have your own cash or can easily raise it allows you to get more out of mergers and acquisitions,” she said.

Duplito said if you are being bought by another firm and your books clearly show them you are cash-strapped, you will be vulnerable.

“If you are an entrepreneur, conserve cash now and build your reserve funds more aggressively,” she said.

Duplito also suggests guarding your credit worthiness fiercely.

“This doesn’t mean don’t borrow, in fact, it means quite the opposite. Banks find it more palatable to lend to someone they know and have a good track record of payment,” she said.

Entrepreneurs should also know to how to determine the value of their business, or if you are buying a business, not to overpay.

According to Bly, when valuing a company, make sure you have the right advisers.

Choose advisers based on their capability, track record and credibility, not the size of their professional fee.

Bly explained that valuations are affected by continuous cash flow, recurring revenue and growth opportunity.

“The Philippine market is going to be hot in the next 10 years because of the growth opportunity. It’s a young population, it’s a growing population, and it’s education-based. The faster the opportunity for growth, the higher the valuation because as the buyer, you are buying future growth and future earnings,” he said.

Aside from numbers, Bly said entrepreneurs should also look out for other red flags in mergers and acquisitions, such as culture, bad accounting records, personnel files that are not up to date, and bad state of equipment.

source: www.abs-cbnnews.com

Rejected for a Mortgage? Here Are Your Next Steps

There’s nothing worse than having a house all picked out, only to hear back from the bank that you’ve been rejected. You’re far from alone, though. In 2013, about 14.5% of all new purchase loans were denied by lenders, and that number climbed to 22.7% for refinances.

Where you go from here depends on many factors—why you were rejected, what your individual finances look like, etc.—but here are a few ideas you should definitely consider.

Try a different tactic

Occasionally, it is possible to turn around and apply with a different lender who has fewer restrictions. This is because some lenders tack additional guidelines onto those that are required by law, making it more difficult to qualify. On your second go around, try a local bank—they often more willing to work with individuals.

If that isn’t an option, you may want to consider applying for a different loan program. A normal 30 year fixed may be considered the standard, but that doesn’t mean it’s for you. Mortgages backed by the government—FHA, VA, and USDA loans—tend to have less strict requirements (FHA, for instance, allows a credit score as low as 580).

Work on your credit

Credit issues are one of the top reasons lenders reject loan applications. Often, people only realize their credit is a problem when the time comes to make a large purchase, but ideally, you would be keeping an eye on your credit situation well in advance.

If your problem is your credit, start by paying off as many cards as you can (but don’t close them immediately—your score takes into account how much credit you have open to you vs. how much you’ve used). Even once you’ve cleaned up your act, it can take time for your credit to recover—one to three months, or even longer if you’ve done severe damage.

Troubleshoot your appraisal

Another very common reason loans are rejected is that the appraisal came in too low, leading the bank or lender to think that the property isn’t worth the investment on their part. Sometimes a low appraisal is a fluke. Often, all you can do is move on to a different lender, or, if it happens a second time a different house.

Find a cosigner

If you’re having trouble qualify for credit, debt, or income reasons, asking a close relative to cosign the mortgage with you may be the helping hand you need.

This isn’t always recommended, though. Cosigners are legally responsible for the debt, too, which can raise their debt-to-income ratio and make it difficult for them to make large purchases in the future. Plus, money and family don’t typically mix well.

source: totalmortgage.com

The one-page financial plan

(The writer is a Reuters contributor. The opinions expressed are his own.)

NEW YORK - Gather round because here is today's personal-finance lesson inspired by famed Hollywood screenwriter William Goldman: Nobody knows anything.

In other words, no one knows where the market is headed. No one can tell you exactly what financial moves to make. And no one knows where they are going to be 40 years from now.

Here is what you can do: Make your best guess and muddle through life the best you can. That's the thesis of "The One-Page Financial Plan," the new book by New York Times columnist Carl Richards.

Rather than over thinking everything to the point of paralysis, just jot down a few general goals, get started, and don't beat yourself up over past mistakes. Reuters sat down with Richards to talk about the surprising power of simplicity.

Q: Personal-finance experts usually don't talk about uncertainty. Why was that important for you?

A: The giant fantasy of financial planning is that we all know exactly where we will be in 40 years, so we just need to sit down and plan for it. That gives people a false sense of precision.

The reality is that most of us don't even know where we will be six months from now. We don't know what our utility bills will be in the future, let alone when we are going to retire or when we are going to die. So the natural human reaction is to say, aw, just forget it. But that's not a good choice either.

Q: So what should people do?

A: Call it what it is - guessing. Give yourself permission to let go of all this anxiety, and just make the best guess you can and be committed to the process of guessing.

Q: Your book is called "The One-Page Financial Plan." So what's on that one page?

A: On my one-page plan, there is a statement at the top of what's important: For my wife and I, it is to spend time with the family, and to serve in the community. Then there are three goals: To fully fund all retirement accounts, to fully fund our kids' education accounts, and to put money away for a house.

That's it.

Q: You have had some financial missteps yourself. How did those experiences inform the book?

A: When you write publicly about this stuff, people think you have everything figured out. But nobody is foolproof, and making financial decisions is hard.

We got caught up in a very basic mistake: Projecting a rapidly growing business, which meant we could afford a big house. It turned out the business didn't keep doing that, and we were faced with the tough situation of owing far more than the house was worth. So we lost it.

Q: What is one trick people can use to get their finances under control?

A: I use what I call the 72-hour Test. Once I found myself with a stack of unread books on my desk, and I thought: 'What if I just waited 72 hours between when I thought I had to absolutely have a book, and when I actually purchased it?'

The surprising reality is that after 72 hours, whatever it is, you usually discover you don't need it anymore.

Q: What about debt - how much is too much?

A: I have yet to meet anyone who has paid down debt and was unhappy about it.

Maybe on a spreadsheet it makes sense to have some mortgage debt, and invest the difference in the stock market, and make a bunch of money. But paying off your home makes people really happy.

Q: We are all so anxious about money. Why is that?

A: Money is not just about math, it's about emotions. The stuff you dream about, the stuff that keeps you awake at night, your most cherished dreams and your biggest fears. The rubber always meets the road with dollars. That's a very potent cocktail.

source: www.abs-cbnnews.com

Why China is raising retirement age

BEIJING - China's pension fund will come under tremendous pressure to break even in coming years and as such, the government needs to gradually raise the official retirement age to salvage the finances, a top official said on Tuesday.

Yin Weimin, minister of human resources and social security, said the government will gradually raise the official retirement age, which is as low as 50 for some female workers, but stressed that any policy changes will be phased in over five years.

He did not say when retirement ages will be raised.

Analysts have long warned about China's state pension crisis and the severe funding shortage, with some estimating that the cash shortfall could rise to as high as nearly $11 trillion in the next 20 years.

Yin said the finances were not as dire for the moment, but warned about challenges ahead.

"The pension fund faces tremendous pressure in terms of breaking even in future," he told reporters at a news briefing on the sidelines of the annual meeting of China's parliament.

The fund's income stood at 2.3 trillion yuan ($367.3 billion) in 2014, exceeding its expenditure of 2 trillion yuan for the year, he said.

But in coming years, the proportion of Chinese over the age of 60 will rise to 39 percent of the population, from 15 percent now, Yin said.

That would depress the dependency ratio - the ratio of the number of people younger than 15 or older than 64 to the working age population - to 1.3 from the current 3.04, he said.

And as China's economy slows to an expected 25-year low of around 7 percent this year, Yin cautioned that the country's labour market will also face greater pressure.

Employment fell more year-on-year in January and February compared with the same two-month period a year earlier, he said, but added that he was confident China can still create more than 10 million jobs this year.

Chinese leaders have repeatedly said they will tolerate slower economic growth as part of the reform process so long as employment levels remain healthy.

And some officials have said the Chinese labour market held up last year despite the economic slowdown due to a fast-growing services sector, and brisk job creation in new emerging industries such as the e-commerce sector.

source: www.abs-cbnnews.com

Bring financial order to your life in 2015

MANILA, Philippines - Have you ever felt that you are always at the mercy of circumstances where money matters are involved? For instance, are you always running out of cash? Do you feel that your bills are always piling with no reprieve in sight?

Perhaps, it’s time to bring financial order into your life. Financial order, in a nutshell, means being prepared to face your financial obligations without getting stressed to the point of anxiety. Although money matters are not exactly the easiest to think about and may cause you a measure of stress, they should not overwhelm you completely.

Financial order is important. At the very least, it gives you peace of mind. It also keeps you out of trouble and helps you avoid unnecessary expenses and losses. For example, if you missed funding a check you issued by only one day, you could be paying as high as P2,500 in penalties. Same thing holds true for credit card bills.

Creating financial order in your life is possible, but it entails careful analysis of your financial standing, your consumption and spending patterns, and your personal goals. It is both a process and a goal. You have to continuously work to keep financial order in your life, and you should always aspire to achieve or keep it.

Here are some concrete ways to achieve financial order:

Keep records.

By keeping records, you will be able to keep an eye on your bills’ due dates which allows you to plan accordingly. Over the longer term, your records will allow you to monitor your spending and debt levels. There are programs available online to help you do this. If you prefer to keep records the old way, you can get a large envelope where you can file your receipts, bills, credit card and bank statements. It would be helpful to organize these regularly.

Manage expenses.

Are you going overboard with too many expenses? If you keep financial records, you will be able to pinpoint areas where you can cut back or where you can better manage your expenses. Look at areas where you may be incurring unnecessary expenses like paying for too many cable channels you hardly tune in to or gym memberships you hardly have time for.

Have a savings plan.

Once you are better able to manage expenses, you can have a savings plan. Commit to saving a fraction of your income and to add to this regularly. As much as possible, try to allocate funds for savings before you spend your regularly monthly earnings.

Pay debt.

Try to keep your debt level to a level that is comfortable. To know how much debt you currently have, calculate your monthly disposable income. This covers your take-home pay, bonuses, and all other income coming from other sources. Next, compute your monthly payments on all loans. Then, divide this amount by your monthly disposable income and multiply by 100. This will give you the percentage of your disposable income that goes into debt payment.

Protect your income.

One source of financial stress is the fear of leaving your family and loved ones vulnerable if you pass away. This is why it helps to take out a life insurance, especially if you have young children or if you are the breadwinner in your family. Insurance will also protect your assets. If you own a car, consider getting an automobile insurance. If you own property, home insurance is a worthwhile purchase.

Know your net worth.

This is an exercise that everybody should do, regardless of economic status. To know this, add up the value of all your assets (property, stocks, etc.) and income. Deduct the amount of your debt from this amount. The resulting number is your net worth. Note that this may change every year, depending on the value of your assets (e.g. share prices may change) and the amount you owe.

Once your finances are in order, you will be better able to forecast your fiscal activities, and you will be able to create realistic goals that will lead you, eventually, to financial freedom. It’s never too late to start – and 2015 is as good a year as any.

source: www.abs-cbnnews.com

5 'money-sucking loopholes' you should avoid

MANILA – There are financial loopholes that people often overlook but can potentially give their financial condition a massive jolt.

Financial adviser Salve Duplito said these financial loopholes originate from people’s “soft spots” like desserts, perfumes, or gadgets.

If left unchecked, these soft spots can turn into “money-sucking loopholes,” she said.

Here are five hidden loopholes in finances:

1) Bank charges and interest charges on credit cards and loans

Duplito said charges such as the P7.50 fee charged by banks for other bank withdrawal can amount to a large figure if overlooked.

“Don’t be fooled by the seemingly small amounts like the P7.50 ATM fee for withdrawing from another bank’s ATM,” Duplito said.

At only six transactions per week, the P7.50 ATM fee costs P45 per week, P180 per month, and P2,160 per year.

Interest charges and late payment charges on credit cards can also cause a huge dent on finances if left unchecked.

“When you pay your bill in full every due date, you don’t pay any interest charge at all. It’s like having free cash on some days of the month. But one you miss your due date or don’t pay in full, you become a borrower. That means interest charges start piling up the moment you swipe your card again,” said Duplito.

2) Installment costs of tuition, large appliances and other similar fees

In most schools, the cost of opting for monthly or quarterly tuition payments can range from P3,000 to P8,000 every year.

To reduce installment expenses, Duplito suggests saving up for tuition fee a year before you need to pay it.

She said that assuming tuition costs P100,000, the first step is to open an account in your bank and name it tuition; and then instruct your bank to automatically transfer P8,500 a month every time you receive your salary.

“You don’t think about, you don’t worry about it. The only thing you have to do is make sure you spend only what remains in your main account. By the time you need to pay your tuition, the money is right there,” said Duplito.

She said the same strategy can be applied to appliances, noting that if you are paying additional installment cost to have that item now, that’s not financially smart.

“Save first, then buy,” she added.

3) Cost of gourmet food

Duplito said expenses may take a hit if you have developed a habit of eating gourmet food.

She said that if your budget doesn’t have space for gourmet food, simple food will do.

“The cost of simple home cooking and a meal in new restaurants everyone is raving about is as far from each other as the opposite sides of EDSA on a Monday. But they all fill the stomach the same way, no matter what your Facebook friend’s post says,” she said.

4) Recurring tech expenses
Duplito warned that expenses used for technology may give birth to more expenses like apps, games, and SMS charges.

“Gadgets are pricey and in many cases, they are more expensive than buying the minimum allowable number of shares of a good company,” she said.

Duplito advises to constantly review your tech expenses and adjust when you feel like you are overspending.

5) Missed tax deadlines

Duplito said that if you look at your books in the last five years, the biggest expense is probable tax.

“That means if you miss your deadlines, your late payment fees and surcharges will be huge as well,” she said.

“Hunt those little loopholes without mercy. That’s a habit that can save you a lot of money,” said Duplito.

source: www.abs-cbnnews.com

How well did you do on the money front in 2014?

MANILA, Philippines - As 2014 draws to a close, this is a good time to look back and see where you have done well and where you can do better in all aspects of your life – from your studies or your career, to relationships, to health and well-being, and even your finances.

Reflecting on how you did in the past year allows you to plan better for the year ahead, because it gives you an insight on your areas of strength and weakness.

One of the good things about assessing how you have done in the financial front is that you have actual records or figures to look at and tell you how you’ve fared. Ideally, you have set out some financial goals and laid out a plan to support them at the beginning of the year. If you did, then it will be easier to gauge your performance against your goals. If you did not have a plan to start with, this may be a good time to start making one.

To have a rough idea of how you managed in the financial front this year, examine your records – bank books, bank statements, credit card statements, tax records, and the like. Look at the following aspects of your finances: your savings, debt, and investment gains (or losses). Look how much you have in each of these categories, and as you go through each one, ask yourself the following questions:

Did you reach your targets?

If you had a pre-set target, then you would know right away if you did. If you had no set target in mind, ask yourself if you are comfortable with the amount you have for savings and investments, as well as your debt levels, with consideration to your current financial status. In thinking about your targets, look into the future and project. What do you want to achieve in the next five, 10, or 20 years? Let’s say you want to buy a house in the next five years using your savings. Look if your savings grew at the pace that will allow you to make the purchase in five years. Look at your investments as well. Are they growing at the pace that they should to meet your goals? Are there other investment products that may be better suited to your profile and support your financial goals?

Did you spend according to your budget?

This will be a good time to think about the purchases and acquisitions you made, and how you’ve kept close to your budget. You can easily tell if you went overboard if you’ve experienced getting your utilities cut off, or are paying a hefty sum for interest expenses. You would also know that if you’ve experienced many cash crunches throughout the year. If you overspent, then think of where you overspent. Did you spend more than you intended to on shopping or entertainment? Or did utilities rise higher than you expected? Ask hard questions. Could it be that your income is no longer enough for your needs, suggesting that you may need to rethink your career plans?

Where did you do well?

Look at everything and identify where you can say you did well. Why do you think did this happen? You might say that your savings improved drastically this year. If it did, what did you do or what were the events that led to this? Perhaps, you cut down on your unnecessary expenses or perhaps, you started putting aside a set amount each month. It could also be that you got a big bonus. Knowing where you did well and how you managed to do so will give you guidelines on how to achieve this again in the coming year.

Where can you improve?

Take a good hard look at where you could have done better, and think of why you have failed to achieve some of your goals. Did you lack discipline? Were you unable to plan in advance? Were you unaware of your financial options? In determining where you can do better, think about your behavior and spending patterns during the year. Did you overspend when you were with friends? Did you buy a car that was too expensive to maintain? By closely examining your expenditures vis-à-vis your daily activities, you may be able to pinpoint specific areas for improvement.

As you reflect on all these questions, you might want to start writing a journal that outlines your thoughts. This will guide you in planning how to address these issues in the months ahead. This early, why not make a commitment that 2015 will be a better planned year for you? Remember the adage – if you fail to plan, you plan to fail. We suggest taking the future with both hands and start securing your financial independence beginning today.

source: www.abs-cbnnews.com

Want to manage your finances better? Here are some apps

MANILA, Philippines - Managing your finances can be made much easier with some of the financial planning tools that are now available through your smart phone. Tracking your expenses, analyzing your budget, and scheduling payment of bills are just some examples of the many things that are easier to do with the apps.

Smart phones and apps offer many conveniences. For one, they allow you to record your transactions in real time. Since you almost always have your smart phone with you, you don’t have to get home to record your transaction in your spreadsheet. There are apps that let you store your receipts as well.

It’s also a very handy way to access your financial records. If you need information about your finances while you are at the bank, for instance, you can simply check your smart phone. They also provide you with a good recording system. You can synch your phone with your PC, providing you with an automatic back-up system. Best of all, it’s a paperless system, so you minimize waste.

Remember that apps are just a tool that would make financial planning easier for you. While some of these apps would give you financial advice, they do not take the place of financial planning. Also note that these apps process data based on what information it receives. Therefore, you should take pains to put in complete and accurate data. Use whatever advice the apps give in the context of your financial goals or as inputs that would guide your decision making process.

Apps can either run on Android, Apple’s IOS, or both platforms. Although most financial apps have been designed to be secure, exercise the same caution as you would in doing any online transaction.

For starters, check your own bank for their apps. The services offered vary but most would offer balance inquiry, balance transfers, and bills payments. At the same time, the Philippines’ top telecommunications carriers also offer financial services such as mobile wallets and mobile payments.

Other than those, here are some of the most useful finance apps worth checking out:

Mint.com
Free app, Android and IOs

One of the first personal finance apps, Mint.com syncs with your bank records and will even categorize these for you. It keeps track of your spending and categorizes them, so that you have an idea of how your budget looks like. It sends bill reminders, alerts, and even advice to your phone.

Level
Free app, iOS

Another budget tool is Level. It allows you to record your spending and monitor your transactions, and then it analyzes this and provides you with budgets for the day, week and the month. It also helps you create a plan to save money, or tweak the budget that Level automatically provides. It even tells you if you have overspent.

Koku
iOS

This app downloads and consolidates all your financial records, including your checking accounts, savings accounts or credit cards (f your bank is included in its list of banks). All you have to do is just refresh your account. This way, you do not have to log on to different online banking sites just to see your balance. If your bank is not among those that Koku can connect with, you can import your statements into Koku. The app also provides an analysis of your income and spending habits. Since it automatically syncs to iCloud, you will be able to access your account from anywhere using your Apple device.

Expense Manager
Free, Android

This app that lets you track your expenses by week, month or year, in different categories. You can take photos of your receipts and store it using this app. It also lets you automatically save information to a Dropbox account, so that you can check this from another PC or mobile device. It also includes payment alerts, a currency converter, tax calculator, and a tip calculator, among others.

MoneyWise
Free, Android

Another expense-tracking and budgeting tool, this app let you monitor cash flow and set personal financial goals. You can keep track of your expenses across categories, and it converts these into charts for your reference. Data can be exported as HTML or into Excel.

Money
iOS

For businesses, Money is an app that tracks and balances cash, debit, credit and savings accounts by importing these files. There are tabs for your balance, transactions, budgets, and reports. It can convert currencies automatically. It syncs with ICloud, which makes the information available on other devices.

Unleash
Free, iOS

Unleash monitors your company's income, expenses, profits, cash, profit margin and valuation. It tracks collections, and lets you know when customers’ payments are overdue. If you want to compare how your company is performing against US small businesses in your industry, this app will allow you to see comparisons. It also provides a facility for making financial projections based specific scenarios, like hiring additional personnel or increasing sales volume.

Expensfy
iOS

For travellers, Expensify is a useful app that keeps track of your business expenses and mileage. It also lets you scan, upload and file receipts which can be made into expense reports that you can readily submit to your supervisors when you get back to the office.

Toshl Finance
Free, iOS and Android

Toshl is an expense and budget tracker. It works with any currency and separates your travel expenses from the rest of your finance. It syncs across multiple devices.

Other expense tracking apps worth looking at are Spending Tracker, Money Zen, and Spendee.

In using any of these Apps, make sure that your account information will remain private and are accessible only with strong passwords known to you and only you.

source: www.abs-cbnnews.com

5 Reasons Why You're In Debt Up To Your Eyeballs

We've all seen the LendingTree commercials where the guy sarcastically says: "I'm in debt up to my eyeballs. I can barely pay my finance charges. Somebody help me!"

If that sounds like you, read on. Here are a few reasons why you're swimming in debt and what you can do about it.

No spending plan. Without a plan or financial goals, you're headed down the road to digging yourself deeper into debt. A spending plan establishes goals and principles. If your goal is to save $20,000 for an emergency fund, then you need to avoid more debt along the way. Since debt must be paid back, it would take away from funding the $20,000 goal.

Keeping up with everyone else. Your neighbor just pulled into his driveway with a new Ford Mustang, and you immediately think about buying the new Infiniti luxury sedan. That's what we know as keeping up with the Joneses. But it doesn't stop there. Your sister tells you she just picked up the latest purse in the Louis Vuitton spring line, and you think about that Chloe bag you didn't really want until now. We do this to ourselves because we don't want to feel we're missing out on the finer things in life. But what we miss is the reality of the Jones' financial situation. If they're living on credit, you'd never know because you're so blinded by their bling. Take a step back and assess the real reasons behind your newest impulsive purchase, and then take action.

Lack of discipline. Just as you begin to think about purchasing a new car because your neighbor recently bought one, hopefully you have enough restraint to consider the impact on your spending plan. If your goal is to get out and stay out of debt, then discipline will play a major role in your daily financial life. Financial discipline will help you assess your goals and consequences when faced with a decision that could potentially take you off the plan. Discipline is your friend. Embrace it.

Buying a new car every few years. Remember the car your neighbor bought? Well, let's just say you're about six months from paying off your current vehicle, but you've now convinced yourself that it's time to get a new car because "I deserve it." This is a classic reason why so many people dig in and remain in debt. Most people relish the idea of not having a car payment, and others relish the new car smell and feel every few years. You must decide what's more important to you -- living a debt-free life or cruising in the latest model.

In your world, credit is king. You enjoy a little retail therapy because you've had a hard week.But your bank accounts are overdrawn. Not to worry, you've got good ole MasterCard coming to your rescue. The problem? Your cards are mastering you and not the other way around. You've become so addicted to the plastic that you hardly recognize your spending plan anymore. As with the guy from the LendingTree commercials, your life is largely financed by your debt. But it's driving you crazy and will cause many sleepless nights ahead.

Here's the thing about getting out of debt: It requires a strong but realistic spending plan that you can stick with through the end. This is a "living" plan that will change along the way, but that's the beauty of it all.

Forget keeping up with everyone else, and cut up your credit cards. Spending your time trying to impress people who don't factor into your bottom line is a waste of money and will impede your financial goals. Assess your financial goals, and decide if having a new car is truly worth the money spent. Remember, it's no fun being stressed because your finances are out of control. Take control now, and enjoy the fruits of your efforts along the way.

source: dailyfinance.com