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How To Change Banks When Moving Out Of State

How To Change Banks When Moving Out Of State

Moving is never fun. So, learn how to change banks when moving out of state. You could be moving to a new city or to a new state. But pretty much moving into a new home or apartment will always be a downer.

There are a ton of things to do. Once you find your next digs, you still have to pack. And then you have to move that stuff to the next place too... And then you have to put all in its place. Oh, but you forgot that you have to clean your old home too.

Outside of the physical stuff, there are other logistics to be worried about. You not just moving physical stuff. You are moving various accounts too. This includes utilities like power, water, phone, internet, gas, waste. That makes me remember I got bills to pay.

The main issue with those is that you must either change your address on the billing. But if you are a nerd like me you can go paperless. This will allow you to ease a little stress about the move.

You will most likely have to set up new accounts anyway. And that brings me to banks. Not all banks and for sure Credit Unions are in all states.

I personally like Credit Unions as they tend to have higher interest rates.

So the prime rate means a little more.

If you’re moving to a new state pay attention. I have created one of the most important to-do lists to change banks.

Opening a New Account

This only goes for those that don't have a national bank. But as stated credit unions have some perks that the big banks can't offer. It can be very easy to just open a new account. Many banks provide this for free. But sometimes this might take more work. You need all the bells and whistles to fit your lifestyle.

Make sure the bank fits your style. Does the website have enough bells and whistles for you? Will the interest rates fit your retirement plans. Can you pay bills through the mobile app on your phone?

You might just want a bank that has mostly free services.

If you do go with a mostly online bank you can be at relative ease. For the next time you move, you shouldn't have to do another big switch.

Once you have made that decision you'll need to gather up all your personal information. This would include the new address, social security number, and most likely 2 forms of government ID. Another thing to worry about is how many accounts you will want to open.

You will need cash to make a minimum deposit. But there are a few accounts you can open for free, but those are usually online only. If you are anything like me a brick and mortar gives a certain level of old-timey comfort.

Debit Card

More and more we live in a cashless world. A debit card is a convenient way to use your money. This money will be held in your new checking account. But we also about saving here too.

Please get a savings account so you can put money away. Being able to have a comfortable savings account is a great piece of mind.

Some checking accounts offer programs that round up your debit card purchases. The bank will then deposit those rounded up amounts into your savings. This is just another way that you can increase the amount in your savings over time.

You need every edge you can in today's market. So keep an eye on accounts that allow this.

Another benefit of a brick and mortar bank is that getting a physical card can take minutes. The bank can literally print one right then and there.

If you decide to go with an online-only bank you might be waiting upwards of 2 weeks before you receive your debit card.

Make Budgeting Easy

Setting up automatic withdrawals can help you plan for the future. Once you have transferred your money it is time to set up automatic withdrawal for your new accounts. The best bills to use are the ones that are consistent month to month. This would include mortgage or rent, also things like car payments are good for this too. Bills like utilities fluctuate so round up and put the extra in the savings. I'm assuming at this point you have your credit cards paid off because you should.

Getting Paid

Automatic deposits are another area you have to deal with. Hopefully, you are moving to a new state with a new job. Go into work and talk to your finance or HR department to get your direct deposit set up. It would be a shame to have you automatic withdrawals set up only not to have any money in your bank account.

You should also set up automatic transfers into your new savings account too. Automating your savings can help you save money with each paycheck and reach your goals faster.

Keep An Eye On Your Accounts

Look at all your accounts. Don't bee too hasty in closing your old accounts. Make sure the money flows the way you want it to. If you are living a tight budget it could be a disaster if you closed an account.

That is where your last check is being deposited. If the account is not open then you could be waiting weeks for the physical check. Don't forget any bills that might be coming out of those accounts.

You don't want to be fighting with a bank about overdraft fees states away. So keep a close eye on your accounts to make sure all the money goes where you want it to.

Finally Close Old Accounts

Once you are assured the transactions have cleared. You can close your old accounts. This can be very satisfying since it is one less thing to worry about.

If you have any funds left over, call the bank, close your account, and get a check written for the remaining balance.

Changing Banks Is Not Difficult

Here I showed how to change banks when moving out of state. The process doesn't have to cause more stress than the move itself. I hope this helps you. Again moving doesn't have to be all pain. Moving to a new state is a difficult process, but changing banks does not have to be.

Have you ever moved out of state? How did you handle changing banks?

The post How To Change Banks When Moving Out Of State appeared first on Wealth And Finance.

source https://www.wealthandfinance.net/how-to-change-banks-when-moving-out-of-state/

Prime Rate And What You Need To Know

What Is the Prime Rate and How Did it Come About?

The prime rate is a common term that you may hear when applying for a loan or credit card. It acts as a benchmark for determining interest rates, mostly for short-term and medium-term loans.

Commercial banks typically charge the prime lending rate to customers with excellent credit while those with a higher risk of defaulting receive higher rates.

Here is a closer look at the prime rate, including where it came from and what it means for you.

Where Did the Prime Lending Rate Come From?

A prime rate is a base interest rate that banks use as an index when calculating rates for new loans. Other names for this rate include the prime lending rate, prime interest rate, or the prime.

Since the 1950s, U.S. banks have based their prime rates on the federal funds target rate (FFTR).

A committee within the U.S. Federal Reserve system is responsible for adjusting the FFTR. The Federal Open Market Committee (FOMC) meets every six weeks to vote on changing the FFTR.

The committee sets a target for the FFTR based on the U.S. economy. When the economy’s strong, the committee typically raises the federal rate. During recessions and periods of high unemployment or weak inflation, the committee tends to lower the rate.

Banks use the federal funds rate when charging each other for overnight loans to fulfill the reserve each night. They then add a percentage when charging customers, creating the prime rate.

Since 1994, U.S. banks have set prime rates based on the FFTR plus 3%. For example, as of the first quarter of 2019, the U.S. FFTR is 2.5% and the average prime interest rate is 5.5%.

When the FFTR changes, the top U.S. commercial banks change their base rates. Most other FDIC-insured banks follow suit within several days.

Banks are free to set their own rates. However, they typically use the same base rate to continue offering competitive, consistent loan products. As most banks use the same rate, people also call it the nation’s prime rate.

Banks Use the Prime Lending Rate as an Index

When banks advertise interest rates for various loan products, they often express the rate as a percentage above or below the prime lending rate. For example, you may see a home equity line of credit offer advertised as “prime plus one”.

The prime lending rate also provides an index for calculating rate changes to variable rate short-term loans and adjustable-rate mortgages (ARM). With these loans, the monthly payments may change when the FFTR increases or decreases as banks then adjust their prime lending rate.

You may also see the prime mentioned when reviewing the rates for credit cards and other lines of credit with variable interest rates. Banks use the prime interest rate plus a fixed value called the margin or spread.

The Prime Lending Rate Peaked in 1980

When banks first started using the FFTR to set prime lending rates in the 1950s, the national rate was between 3% and 3.5%. It gradually increased through the 1950s and 1960s before experiencing a reduction in the early 1970s due to economic hard times.

By April 1974, the U.S. prime lending rate had reached 10% and peaked at 21.5% in December 1980. Over the next two decades, rates fluctuated between 6% and 10%.

Rates reached their lowest level of the new millennium in 2008 during the financial recession. In the years since the recession, the rates have slowly increased, reaching 5.5% in December 2018.

What Types of Loans Depend on the Prime Rate?

The prime does not directly affect fixed mortgage interest rates or other types of loans with fixed interest. It mostly impacts the monthly payments for credit cards and loans with variable interest rates.

With the following types of loans, your lender will likely increase or decrease interest charges based on the federal rate:

• Adjustable-rate mortgages
• Interest-only mortgages
• Home equity lines of credit (HELOC)
• Short-term loans with variable interest
• Student loans
• Automobile loans
• Credit cards

As the prime lending rate fluctuates based on the economy, it provides a useful index for commercial and consumer borrowing. For those same reasons, it does not provide an effective index for long-term loans such as fixed-rate mortgages.

While the national rate does not directly impact fixed mortgages, it does influence the rates that lenders offer. When the prime lending rate increases, lenders tend to increase interest rates for new home loans.

How Does the Prime Lending Rate Affect You?

If you obtain a loan with variable rate interest or a credit card, you feel the effect of changes to the prime rate through higher interest charges.

Those with the best credit and least risk of defaulting on the loan get the prime rate. Compared to consumers, commercial borrowers are more likely to get the prime lending rate.

When you apply for a loan or credit card, the lender analyzes your credit score, income, and other factors to determine your risk. Banks offset potential risk with higher interest rates. As credit cards carry the most risk, they have the highest rates.

While the prime lending rate is typically 3% higher compared to the Fed’s rate, most borrowers receive a higher rate. The average credit card interest rate is about 19.24% while the average rate on a short-term unsecured loan is between 10% and 28%.

The spread, or margin, is the difference between the prime lending rate and the rate charged. With a variable interest rate, the spread remains the same, allowing your interest to go up or down with the prime.

Banks calculate interest charges each month for your bill so your monthly payments can change when the prime changes.

How Do You Find the Latest Prime Interest Rate?

No matter where you go for a loan, your lender likely sets its prime based on the federal fund rate. In fact, almost every bank and lending institution in the U.S. banking system uses the federal rate to set their prime interest rates.

While almost every bank uses the federal rate, it may take several days for most of the banks in the nation to adjust their primes. The Wall Street Journal (WSJ) publishes the current rate when the largest banks change their rates.

Prior to 2008, the WSJ published rates when 23 of the top 30 U.S. banks changed their rates. The publication now releases the rates when 70% to 75% of the top ten financial institutions in the country change.

Besides the WSJ, you can find the prime listed on financial news sites or by checking with your lender. Many financial institutions list the current prime lending rate on their websites.

If you struggle to find the rate through any of these sources, simply search for “what’s the current prime rate?”.

Summary

The Federal Reserve does not regulate the prime lending rate, but banks base their prime rates on the current federal fund rate. The Federal rate fluctuates depending on economic signals such as unemployment, inflation, and the financial market.

When the Feds increase the federal rate, banks increase their rates. Your interest rates also increase, resulting in higher payments.

You also typically find higher interest rates for new offers when the prime lending rate increases.

Whether you have a variable interest loan or plan on obtaining a new loan, paying attention to the latest prime may help you save on interest.

A financial advisor should be able to help with this too.

The post Prime Rate And What You Need To Know appeared first on Wealth And Finance.

source https://www.wealthandfinance.net/prime-rate-and-what-you-need-to-know/

How Building Wealth Will Get You Ahead

Building Wealth Before It Is Too Late

When people consider building wealth, they begin to think they have a lot of cash they can use to invest. This is not the case.

Most of us live paycheck to paycheck. I want to try to help you out of that rut. Anyone can begin building wealth, regardless of income. For most it just takes focus and some time.

One of the essential things in terms of wealth creation are good habits. If you make half a million dollars a year without the right practices in place, you won't be building wealth.

That money means nothing if you buy $500,000 worth of Twinkies. By avoiding bad habits, you can quickly turn your meager earnings into considerable wealth.

Here are some of the financial habits you need to develop your wealth.

Housing Cost

Home loan payments or rent is one of the biggest expenses we have. Aim to keep your housing costs at 30% of your income or lower.

As this percentage gets lower, the more you can start building wealth. This is a really great place to start. There are some individuals who are spending over 50% of their income on just their housing. This will leave you with nothing to invest in their future.

Also, think of some items in your home you don't use. You can easily sell things on eBay. You can even sell your lamp.

Food Cost

After housing, food is another big roadblock to building wealth. Going out to eat adds up very quickly.

Some of us grew up with a good home cooked meal. I did. And the funny thing is my mother was not the best cook. But I loved her food.

There are some other benefits to cooking at home besides saving money. If you have a family it is another way for you to show your love. Reducing these cost can get you started on the right foot.

Downsizing is not necessarily a bad idea if it means that there is still money left after spending. You have to sell items you don't need and stick to the basics.

Automate finances

Many people have financial plans in place, but they do not comply with them for one reason or another. You should try to automate your funds mainly because it makes things more comfortable and you can also adhere very well to your financial plan.

When you automate your funds, the money will probably be automatically sent to your savings accounts, investment accounts, and creditors. When you do this, you will simply remember to send a payment or be attracted to spend the money on something else because you will simply not start seeing the money.

This frees you up time and effort and can be used in other areas of your lifestyle, such as family.

Budgeting

This is probably the most common element you will hear in terms of wealth creation. The reasons why you continue to hear the reasoning are vital.

It can be difficult to build up an estate when you don't know how much money you receive and how you spend it. You should not divide it into specific categories.

Budget your hard-earned dollars to find out how you could spend them. When you have a budget, you will be able to realize how much you could spend on small items that don't seem like much, but if you add them up, they become a considerable amount.

Having a budget is also a smart way to get rid of expenses you don't need and save money. If you discover that you spend much more than you earn, you will have the opportunity to make changes that will leave you with something small; it will save you.

Start working hard

If you are in a college and you have the opportunity to work as an unpaid intern at the brokerage firm, my suggestion will be to take this opportunity. There are not many people out there who even after trying their level best can get an internship at any firm.

If your performance is good or even satisfactory that brokerage firm will most probably end up hiring you.

The vital point to understand is that you should never miss an opportunity that can give you a better chance to succeed later in your life. Trust me it's better to sweat now that the grid tomorrow.

Today's hard work will show the result, maybe not tomorrow or day after tomorrow, but very soon you will find yourself in a better position than most of your friends and colleagues.

Cars

There is a stereotype where people assume that a vehicle is actually a symbol in their status, but that can never be the situation. Most people see wealthy individuals riding flashy cars as they drive, and they want exactly the same for them.

The aim isn't about being rich; you just want to build wealth. Many wealthy people have different habits from those of the rich.

Utilize your free time

Its Sunday, but you don’t need to spend all your time with your friends at a party or a bar. Instead, you can invest a few hours on starting a side business, maybe a personal blogging website, dropshipping store, Internet marketing, etc.

Today there are so many different ways to generate revenue online. If you love playing games, start a YouTube channel or Twitch channel, and he starts live streaming your gameplay.

There are many successful examples on YouTube where these gamers literally make 4 to 5 figures every month by just playing games and chatting with each other.

Invest in education

Today one of the best paying jobs is in the field of computer science. The best thing is, you don’t need to have a degree to become a programmer.

In fact, there are hundreds of professional programmers in multinational companies like Google, Amazon, who have absolutely no background in computer science engineering.

Instead, they were either marketers, businessmen, or wherein the Army. But just by taking a few courses either online or off-line, they equipped themselves with the knowledge and skills required to be a programmer in a multinational company.

Here is a great book to get you in the mindset. I'm sure you have heard of Robert Kiyosaki. His book Rich Dad Poor Dad is highly rated and full of valuable information on how to start saving.

Fewer expenses

I don't want to make anyone feel dumb with this one. But it is challenging to accumulate money when you spend it all. When you save, you'll have the money to invest. And on that money, you will earn interest. i.e. build wealth.

So, if you don't learn to save, you could be ruined, no matter how much you make. That is why you will hear lottery winners and athletes go bankrupt. They have received a considerable amount of money enough to employ ten families for life.

Sadly, few seek out a financial advisor. If you have that much money your grandkids should be able to live off the interest. You don't have to be at that point to start though.

It's not that complicated to start. Start by saving a small percentage of your earnings. Pay attention to your expenses. Then you will see your wealth increase it over time.

In a few months, you may be surprised at the amount you will have in your bank account. It is best to set aside money to save before you spend a penny of your earnings.

Conclusion on building wealth

Now get out there and save!

Learn more about building wealth.

The post How Building Wealth Will Get You Ahead appeared first on Wealth And Finance.

source https://www.wealthandfinance.net/building-wealth/

A Bank for Financial Stability is Key

A Bank Is A Great Place To Start

The average citizen visits the Bank in various ways. Some will use their smartphones, while others will visit your local branch for a one-on-one meeting with a cashier. These are examples of banking services and the role they should play in a person's life, even when it is the next step in your routine.

For those who want to know what the banking system has to offer, here is an overview of the main features of banking services for financial stability.

Protection of property

The main advantage is related to the security of financial assets. Being able to put money into a chequing account knowing it will be there when you need it is actually a big relief. Before this was not possible and that is where the money could be lost and it did not come back.

To avoid entering this type of hole, personal and commercial accounts are opened in the banking system. It keeps things simple and easy provides the kind of protection that is necessary when it comes to money.

Accounting for accessible funds

The accounting of funds is necessary because there is money to arrive and depart regularly. This is why most people appreciate the possibility of using the banking system to their advantage since accounting is managed by professionals. Everything is monitored with the bank to see what is in the account, that is when the cash is well protected.

A person will know that they can enter a bank and see the total amount that is under their name in a matter of seconds.  It is fundamentally the form of control that a bank has the ability to offer and ultimately promotes financial stability.

A bank gives you loan options

Loans have been around for a long time, but the banking system has a strict process in place to ensure that things are fair and recorded. You will find a legal agreement signed by both parties to ensure that things are done in accordance with the letter of the law. And that's what the banking system has the ability to bring to the table by simplifying everything.

These loan opportunities are necessary for those who will need money in their lives. Your budget has the ability to offer access to these loan opportunities at a fair rate and full protection.

Guaranteed insurance on acquired funds

Losing money is probably the worst feeling on the planet and can ruin lives. With the banking system, things are protected and insured, which means that your budget is responsible for the funds and will always take them into account. We can feel safe knowing that their funds are in one place, of course, if someone were to steal them, it would not be in their favor.

And this is what guaranteed insurance has the ability to do as soon as banking technology is put to the test. This is the kind of quality you need to feel secure with your finances.

Easy access points

The banking system is no longer localized. It can be spread all over the world and everyone seems to be able to access its funds from almost anywhere. Having the ability to do so is powerful and really encourages people to move and stay financially secure.

From local branches to online banking accounts, the ATM has been fully and positively expanded. In this way, people can enjoy financial stability without feeling cut off from the use of their accounts.

Everything is embedded in the palm of your hand and that is the true power of recent banking services.

Professional advice

Professional advice is important for financial stability, whether it is an individual or a large organization. And this is what the banking system has the ability to offer since there is a continuous entry for professionals at the head office or in a local branch. You will find professionals who can guide clients in one way or another.

This can be essential for those who want to be financially stable and need to start doing business with their bank.

The banking system promotes this type of implementation and simplifies things for those who need it most.

A bank provides Fast transfers

It has never been easier to transfer money from one place to another as it is today. Without the banking system, money transfers could be a source of hassle and would not be safe either. That's why most people visit their banks for this particular task.

Obtaining the bank guarantee at the origin of the transfer is much more secure than any other solution. Transfers are not only safe but also fast, making them the ultimate solution.

You become a part of the technology

The modern banking is a technological miracle where every day thousands and thousands of computers and even supercomputers are employed to handle the transactions, share market, and various other money management related tasks without any interference from the human site.

Today it takes literally just a few seconds for you to get your money in local currency in any country from an international ATM. Just try to imagine the technology behind this transaction, without a doubt it is mind-blowing.

Now let’s take an example of mobile banking or instant loan. By literally just clicking on one single link in your net banking, you can apply for a loan. Similarly, with literally just one click and by selecting the appropriate bank account, you can ask your bank to provide you with an international debit or credit card.

All these features only facilitate individuals to spend more and contribute more to the economy.

Final thoughts

It is very important to have financial stability and it all starts with knowing the role that banks have to play in all this. While many variables affect personal and domestic financial stability, banks have an important role to play in all of this. The reasons why they are cited give an overview of what the banking world has to offer and why they have been used since the foundation of modern commerce.

Without these institutions, many countries would not have the ability to stand so firmly because they are doing so now, because there could be total anarchy. It is essential that you keep this in mind while understanding what banks do and what they really contribute to society in general.

The post A Bank for Financial Stability is Key appeared first on Wealth And Finance.

source https://www.wealthandfinance.net/bank/

Creative Ways to Make Money So You Can Save

10 Creative Ways To Make Money And Pay Down Debt

Finding creative ways to make money can be difficult. Tryin to survive after losing one job and finding another can be hard. The good thing is that there are many things you can do to make money in the meantime. Here are 10 creative ways to make money that will help you put money in your pocket.

1. Focus group discussions

They are available both online and off-line. Businesses are paying people to discuss their product and services with groups of people. In addition, there are focus groups where legal professionals obtain feedback to determine how a case can end before it begins. The prices of the latter vary and you must complete a pre-qualification, but then there is an opportunity to earn a considerable sum of money.

2. Donate plasma

It may not be available in all cities and not everybody is eligible. That being said, many individuals do so on a monthly basis in order to make up for their income. In general, you can make a donation once a week, which means that you have 4 times to make money every 30 days. This can be very useful if you need money regularly while you are not working.

3. Mystery shopping

You may have heard of this kind of online employment, but many of these ads are not legitimate. As a result, they are often overlooked. That is unfortunate because there are real opportunities for those who are interested.

It's about going into a store and pretending to be a customer in order to evaluate things like site cleanliness and customer service. When you are required to make a purchase, you will be given a budget and reimbursed for the amount spent.

As long as you provide a receipt. This means you can earn extra money and earn free products.

4. Rent of friends

It may sound a little unorthodox, but many people do that and make money. Many have difficulty meeting like-minded people with whom to spend time. Rather than wasting their time and expecting the very best, many are heading to the online rental agencies and searching for "friends". Whoever is going to be "rented" has the opportunity to determine the prices and directives. Again, it's a bit off the mark, but individuals do get paid to do it, so keep that in mind.

5. University Research

This creative way to make money might take more of you. Many universities are paying people to take part in the research. For example, MIT in Cambridge, MA is paying people to visit one of their many laboratories.

You can perform IT work in exchange for cash. In some cases, there are no limits to the amount of money you can make. It just means you will be trading a lot of time for the money.

Assuming that you are not sure if this option is available in your local schools, you should try it.

6. Crowdsourcing

There are many sites where people can accomplish simple tasks for a fee, so consider adding it to your list of possibilities. There are all types of things available, including research, data mining, checking texts for errors and conducting surveys.

You are allowed to perform as many as you are eligible and you will be paid once the tasks have been approved. It is possible to do quite a few, especially if you register on more than one site.

Sites like Legiit offer a platform to provide all different kind of services. This Legiit service charges $2000 for a simple blog post.

7. Freelance writing

If you have a gift for writing, you can always make good use of it. There are content factories on the Web that are constantly looking for writers. Sign up for one or more of these programs if you want to earn cash.

Each site has its own list of requirements, but they will become second nature once you get started. Remember that you are not expected to write so well that you will be eligible for a Pulitzer, so don't be discouraged from applying just because you are not perfect.

TextBroker would be a great place to start with this.

8. Craigslist

There is a section of Craigslist that was created for those who are looking for gigs. Try posting in this section if you are looking for extra cash.

While some of these are a bit longer, the majority are things like helping people move furniture, designing a logo for someone and things that are short-term and temporary. Checking the listings out daily is very useful.

So add this to the list of things you do once you wake up in the morning.

9. Start your dropshipping business

Dropshipping is mainly a technique of managing your clients, their requests and the retailer is who will be responsible for fulfilling the requirements of the clients. Dropshipping doesn't require any initial investment, any inventory, and any workforce.

All you need to do is research in a niche which has potential customers looking to purchase products online. Then you need to perform a bit of research on AliExpress and other online marketplaces to find a trustworthy retailer or manufacturer.

Once you have accomplished all this task,  you need to create a store on Shopify or any other platform and start promoting your online business using various advertising techniques like a Facebook advertisement, Instagram influencer marketing, etc.

Your main objective is to bring your brand or business in front of potential customers so that they can visit your site and make purchasing decisions. A customer places an order on your website.

Then you will need to forward the details to the retailer or the manufacturer and then it's up to them to fulfill the requirements of the customer. You get involved only when your customer creates a dispute or wants a refund.

A great platform to use for this is Shopify.

They provide everything you need to get started. Website hosting, domain hosting, and payment solutions are included.  With a little hard work to this could replace the income of a full-time job.

10. Bitcoin Mining

This is something that has become very popular. Bitcoin can add a few extra dollars to your pocket here and there. In some cases, you download an app and sit back while Bitcoin is mined with a bot.

If you have a desktop computer you can mine with even greater speed. Also, there are not

You can't expect a lot. But with the price growing to $10,000 what you mine today can be worth a lot later. You will not get rich doing this, not at all, but it will give you enough money to buy something you need here and there. The great thing is that this can run in the background, which means you can make a little extra without giving it much thought.

This is a mixed bag of things that you can do to make money if you are in between jobs. While some are more lucrative than others, each of them can help you stay financially afloat until you find something more permanent.

The more of these you try, the higher your income potential will be. But don't spend it all, please. Pay down your debt and save for retirement.

So stop reading and get started with these creative ways to make money.

Check these post out to learn more about building wealth.

The post Creative Ways to Make Money So You Can Save appeared first on Wealth And Finance.

source https://www.wealthandfinance.net/creative-ways-to-make-money/

Top Business Financial Statements

Business financial statements are something that every company must have because they provide an image of the company's performance.  If you are setting up the initial business, you should be familiar with the different types of business financial statements found commonly.

Income statement

The income statement is one of the company's most important business financial statements.  As its name suggests, it can be the company's full net income for a reporting period.  The reporting period may vary, but it usually corresponds to the full tax year.

The income statement will begin by listing the company's sales and other revenues.  This will be combined with a detailed inventory of the company's expenses.  The final total of the statement would be the net income or reduction of the company's net income.  If you are looking for the financial statements of a public company, earnings per share can be included in the income statement.

Your income statement will normally have one page.  It can be supplemented by complete information on the result.  This supplementary report may contain additional information on all the information contained in the income statement.  It is very important to note that we now have no standard template required for both reports.

The income statement is generally considered to be the most significant in the company's financial statements.  This is certainly due to the fact that it provides a clear overview of the industry's performance.  It could also be used to determine which ones might not use the company as a high overhead cost.

The balance sheet

The balance sheet is an excellent financial report because it shows the company's financial situation since the date of the report.  It can be used to determine the company's performance for a given period of time.  Balance sheet data are generally classified into general categories such as assets and liabilities.

In these categories, you will see a line break.  The breakdown will be carried out in order of liquidity.  Therefore, the things that use the most cash will probably be listed first in all categories.

Like the income statement, it is actually a key document for almost all companies.  When a company's financial statements are published, a balance sheet is usually included.  In other cases, you may be asked to provide a balance sheet through your bank or in order to sell the company.

Mutual Funds

Mutual funds are mainly the investments which are managed by professionals and experts and not by the investors themselves. You don't have to be a super investor to understand mutual funds. Just pay close attention to other investments like in the bond, stock market, etc.

With a mutual fund, you have the facility to diversify your portfolio which ensures better stability over the years. Furthermore, it also helps to mitigate risk (though not all) from the instability in one specific business.

Even though professionals directly look onto every single mutual fund, there is no guarantee that you will always make a profit. Everything depends on the market and various other factors which may also be geopolitical as well as related to the bank’s internal policies.

The cash flow statement

As its name suggests, this stamen will provide a report on how much money is flowing through the business.  This report will likely be designed for a given reporting period.  In this report, the cash flows can be divided into three categories.

The first of these categories will likely be operating activities.   This may include cash flows from the sale of assets, licensees and debt collections.  The company's cash outflows include payments to employees, fines, suppliers, and taxes.

The second category is the cash flow from investing activities.

This may include the purchase of fixed assets, which represents negative cash flow, as well as the sale of these assets, which represents positive cash flow.  The purchase of investment instruments with the company can also be listed as well as the capital loan for any shareholder.

The last category is that of fundraising activities.  This category will only list transactions with lenders and owners that offer long-term finds for the company or perhaps the return in the funds.

Companies that do not want to make money will have to list all the contributions they receive in the cash flow statement. But usually, this would be a non-profit.

Statement of changes in shareholders' equity

The name on this declaration gives you an idea of the information it contains.  It will contain all changes in the company's equity for a reporting period.

Changes in equity may result from a selection of different activities, such as the issuance and acquisition of shares or perhaps the issuance of dividends.

It is very important to remember that this is actually a financial statement that will not generally be published internally.  This is certainly due to the fact that the information it contains will never be useful to your business management team.  However, this statement should be published externally.

Footnotes to the business financial statements

Since the company's 4 financial statements are the ones to which you should pay attention, you should know the footnotes to the financial statements.  This statement may not be a statement per se, but it may need to be provided as a supplement.

This is certainly especially important if you present your business financial statements to investors who are not familiar with your small business.

Footnotes can help investors to read the information presented in the financial statements.  In the footnotes, you can provide clarification on how the financial statements were created.

You can also provide more information on inventory valuation and contingent liabilities.  Footnotes will probably provide you with the information you need to comply with the regulations.

Management teams will require all of these statements, with the exception of the statement of changes in equity.

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