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Important factors to check before starting an annual financial plan

Finally, you have determined to design the annual financial plan. Do you know the things to be included or excluded from the list? Well, it is essential to know what is essential and whatnot. You may have achieved a part of desired economic status in due course of time by applying the budgeting method. Therefore, your annual plan must be designed out of the level of achievement.

It is amusing when one starts planning financial goals from the beginning of the year. To enjoy a stable financial status, there are several factors to consider. Only then will it no longer become troublesome for a family person to gain financial goals. While you are willing for an annual financial plan, make sure it is observed to ensure desired progress.

Annual financial plan –

Such a process helps a person to make out about the present economic condition. Due to a brief analysis of all your financial belongings:

Monthly income and expense
Amount of savings
Number of bank accounts
Amount kept as a superannuation fund
If there are any on going small loans in Ireland Number of credit cards and its credit limits
How much you have utilized from the credit amount etc.

It brings up a clear picture of your present economic scenario.

Therefore, you can easily make out whether you have progressed from the previous year or not. If no progress found, what are the necessary steps to be taken to achieve the desired state? However, an annual financial plan should focus on how much a person can save, invest, and expense throughout the year. A perfect financial plan should include,

Superannuation plan
Taxation
Piling up proper investing techniques.

Annual financial plan checklist –

Therefore, now it is clear what is all about the annual financial plan and its essential factors. However, before beginning to make sure you have looked at these critical factors.

Personalize your won list:

A personalized list is essential because everybody has their own different economic goals. Therefore, don’t copy from any of your friends or relatives. The list should include items such as amount to be kept for an urgent requirement, superannuation fund, different types of savings scheme investment, whether to invest in a security or not, children education fund and amount to be kept for amusement.

Nowadays, almost everyone is enjoying accessible debt facilities. Maximum people choose monthly repayment mode. In that case, do not forget to include the amount which will pay will pay to repay debt. To get the exact figure of your used debt, one can use the credit utilization ratio for sure.

Set up a target:

After completing the list, you can now move forward with setting up your targets. Remember these targets should be fulfilled within the next one year so, choose wisely. Talking about the goal, it is divided into three types. These are-

Short term target
Mid-term target
Long term target

A short term target should fulfill –

Incorporating a budget
Making an urgent fund or if you already have an increase the amount
Complete payment of the remaining amount of credit card

A mid-term target should include –

Ensuring the life of your family by purchasing health insurance or life insurance. Sometimes, investing in inability income insurance can be a better option.
In this phase, you can plan to fulfill your dream. It can be buying a property or a car and planning for a family tour or even a house improvement.

A long term target should include –

It is a phase for planning the future. Although it may not be possible to achieve a long-term target in a year or so, it should not be forgotten because it takes a long time to complete a long-term target. While thinking about this phase, generally, all superannuation plans. Make sure how much you want to save for your old age.
Know how to enhance old age savings.

Take a look at the need factor of the family:

Well, it is an essential factor for married persons. So, you and your wife must have some plan to run the household. Are you sure not missing something? Look at these critical factors before start planning.

Whether a couple has a child or about to become a parent, make sure how much want to keep for her higher study.
Suppose a couple has to take care of their parents and then discuss the benefits of purchasing long-term care insurance for them. If they are bed-ridden, then there must be a requirement of nursing service. Make sure how much you can bear for providing nursing service.
The expense to be made for buying health insurance for you and your wife. If you have children, then you must ensure her health too.
Plan how to manage stable financial status even after superannuation. A good superannuation savings plan can provide you ease at old age. Even if you don’t want to invest in a long-term savings plan, you can go for a short-term strategy and whenever the amount matured, let’s use it in another investment plan. By cycling the amount, one can enjoy a higher return.

8 Tips for the Parents to Help Their Teenage Child with Budgeting

By admin

On May 24, 2021

In Loan

Financial education doesn’t require a minimum age to start. You can help your children start early in their teen to learn about savings and budgeting. It will help them in the long term while trying to manage the significant expenses later in life.

They may find budgeting unnecessary because there is no pressure of saving money for some financial goals. Unlike adults, teenagers can live a lifestyle where every penny is spent before their next allowance date. Many chose to work for additional income only to spend more, not save for the future.

Therefore, it is essential to pass some financial wisdom to your kid and help them create a budget. These lessons of financial education will remain with them during tough times. Here are some tips for the parents to help their teenage kid create a budget and show some responsibility with money.

Know the Income

The first step towards creating a budget is to know the exact income for a period. Generally, the budget is created for the whole month that leaves the income period to a month. It should include the allowance from parents and money from the side hustle.

Teenagers may not have a fixed income under a signed agreement with their parents. Therefore, ask them to use the small amount among the income variation each month. It will help them create a budget immune to the variation in the income.

Set Financial Goals

Budgeting is a lifelong practice to remain on the stable side of finances. It requires consistent efforts to return an increase in savings with the same income. Even adults lose motivation if there is no visible progress or achievement.

Therefore, ask your child to have some financial goal to save money with a purpose. They can use it for vacation, education, side-hustle, or high-end gadget. For financial emergency, they can apply for bad credit loans in Ireland and create a budget to repay them.

Select the Right Bank

Selecting the right bank to open a savings account can help with the transactions and some increased savings. The teenagers are not aware of the financial terms and the hidden lines in the contracts. Therefore, it is your responsibility to help them find the right bank.

You don’t have to impose your decision as it may affect the relationship. They may not feel comfortable while asking for financial suggestions from you. Therefore, share the opinion with the pros and cons of each bank and let them decide.

Create Categories for Budget

Categories in budgets will help to keep track of the spending on different expenses. Your kid may not have the correct definition of categories to create a detailed budget. This may lead to unnecessary costs that often derail the budget.

Ask them to enlist the expenses in a single column and allocate categories to them. In the end, they should also divide the costs based on need and wants. Ask them to cut the expenses in the want column to save money for the financial goals.

Guide Them in Investment

An investment-oriented mind is built with experience and guidance from experts. A teenager may not have access to some financial guru to help them with the savings. Therefore, you can guide them in investing their money to increase their savings over time.

You can use their savings to buy gold or share from the stock market. Make sure they understand the risk associated with the investment before taking any money. They may want to invest in their side hustle to turn it into a small business.

Track the Spending

Expense tracking is essential to remain on the budget. You can ask them to install an android application to keep track of their spending. It will also remind them if they are about to cross the allocated amount.

Parents use these applications to keep track of their children’s spending. It may seem a little intrusive to their personal space. Therefore, take their permission before trying to keep track of their every purchase.

Increase Income

You can either reduce the spending to achieve the financial goal or increase the income with a side hustle. It is okay to let your kid learn the value of money by earning it the hard way. They can start with a part-time job in some store or company to make money.

You should let them explore different line of work to find their passion. They may require some guidance now and then to deal with the problems at work. Without you and a direct lender, they may not find where to get a loan in Ireland with bad credit.

Learn from Mistakes

They will make mistakes while trying to follow a budget for the first time. Even the budget will require updates based on their spending habits and requirements. It is vital to not dwell on those failures and learn from them.

Conclusion

To sum up, your kid will take some time to learn about money management. Teenage is the right time to start financial education with some serious goals. They will reap the benefits in the future while trying to manage their expenses on a limited salary with a long list of financial goals.

Tips for Getting a Commercial Mortgage in Ireland

By admin

On April 15, 2021

In Loan

A commercial mortgage is a great way to build an investment portfolio. You can buy a factory or a shop for rental purpose. Getting a commercial mortgage can be a headache, and they are more expensive than residential mortgages.

The demand for such mortgages are likely to be higher down the line because many people do not have to pay for the commercial property outright, and the pandemic has also turned up the screw. Many entrepreneurs are now looking to get a mortgage to build a property ladder, but they are not able to get the most attractive interest rates.

One of the significant reasons for not getting a mortgage at a fair interest rate is you do not know what to look for. Here is how you can get a commercial mortgage in Ireland.

Understand about your property

Financial institutions will be reluctant to sign off on your application if you are not aware of your property. It is not like you have put in the cash, and lenders will give you away from money. They want the money back. Hence, they would like to know whether you know about your property.

Of course, you must have examined your property before buying, but you should be double sure that it is not going to cost you additional money. Ensure that your property is strong enough to leave an impression on lenders that it will be a successful deal.

The condition of property matters a lot to decide for the lender whether or not they should close the deal. You will explain your purpose of using the property. For instance, if you want to rent it or sell it after a few years when the price escalates, lenders will take into account this scenario as well.

Find the best rates

Since there are various mortgage lenders out there, it can be quite challenging to pick the one that offers commercial mortgages at better interest rates. A rule of thumb says that you should research to find the best interest rates.

They vary from lender to lender, and there are various factors associated with them, and one of them is your credit score. Your credit report must be good, even if you are ready to pay down a larger deposit. Further, processing fees and upfront fees vary from lender to lender, and hence the total cost of the mortgage can fluctuate.

You can pick the best commercial mortgage rates in Ireland by comparing lenders. If you cannot make a decision, you should consult a mortgage broker. They can help you choose the mortgage lender that offers lower interest rates.

One of the best advantages of consulting a broker is you do not need to spend your time in research. They have a panel of lenders, and they can pick you an ideal one after evaluating your financial condition, credit score, and affordability.

Negotiate for a better deal

Once you have established a comparison between lenders, you can play off lenders against each other. For instance, if you have found out that one of the lenders may have an extra thing to attract people, you can use that knowledge to convince other lenders to offer you the best deal.

Having knowledge about the market shows to lenders that it is not easy to fool you, and hence they will likely be ready to offer you a mortgage at more affordable interest rates. If the past payment record has been excellent, you do not need to be afraid to negotiate for a better deal.

Prove your affordability

Commercial mortgages are more expensive than residential mortgages, and you will also have to pay down a larger deposit than the latter. Whether you seek to buy it from a bank or a lender, you will have to prove your affordability.

If you buy a mortgage, you will have to prove your affordability. Having a good score is not enough to qualify for a commercial mortgage. Lenders will evaluate your financial condition too. Apart from looking over your current financial condition, they will also look at your futuristic condition.

In case you lose your job or you suffer from a financial emergency, how will you manage to keep up with repayments? You must have a backup in case of financial emergencies, so you do not fall behind repayments. Be ready to answer such questions; otherwise, you will likely be turned down.

Of course, finding a commercial mortgage at lower interest rates is not as easy as pie. You will have to research a lot. You can also contact a broker who can engineer your meeting with a lender that suits your financial condition and investment goals. However, you must have a good credit score and a repaying capacity. Otherwise, your lender will turn down your application.