10 Best Sales Strategies to Increase Sales Fast | Most Effective for Success

A sales strategy is defined as a documented plan for positioning and selling your product or service to qualified buyers in a way that differentiates your solution from your competitors. A sales strategy is also a set of decisions, actions, and goals that inform how your sales team positions the organization and its products to close new customers. 

Sales strategies are meant to provide clear objectives and guidance to your sales organization. They typically include key information like growth goals, KPIs, buyer personas, sales processes, team structure, competitive analysis, product positioning, and specific selling methodologies.

Most of these guidelines are helpful for communicating goals and keeping your sales reps on the same page. Where most sales strategies fall short, however, is that they’re too focused on the internal workings of your organization. The actual skills needed to have winning conversations with buyers—along with the messages reps need to be successful—are merely an afterthought.

When you boil it down, the goal of every sales strategy is to make sure your salespeople hit their quota, right? And it’s the messaging element—what salespeople say, do, and write in order to create perceived value—that wins or loses the deal.

To truly be effective, your organization’s sales strategy needs to focus on customer conversations. These skillfully delivered conversations are what creates a distinctive purchase experience, demonstrates value for your buyers, and separates your company from the competition.

How do you create the best and most effective sales strategy? You can’t just hope someone will stumble upon your product and purchase it, though. But the only way a business succeeds is by earning customers and growing sales from that service, product, or information.

The problem is, most sales strategies are too internally focused. They succeed in documenting internal procedures but lose sight of the messages and skills your reps need to communicate value to your prospects and customers.

Consider the following insights when creating a sales strategy:

• Research from SiriusDecisions shows that the number-one inhibitor to sales achieving quota is an “inability to communicate a value message.”

• In corresponding research in which SiriusDecisions asked executive customers about the quality of interactions with salespeople, only 10 percent said sales calls provide enough value to warrant the time they spent on them.

• A Forrester Research study revealed that only 15 percent of sales calls add enough value, according to executives surveyed.

• The Forrester study also showed that just seven percent of surveyed executives say they would probably schedule a follow-up.

In this guide, we'll dig into some sales strategies and initiatives that can help you generate more leads and close more deals. If you can improve every step of your sales process by even a little, you can increase sales by a lot.

1. Clearly Define Your Customer

First, you need to know who you’re targeting. Who is the person who would most likely buy your product and buy it immediately?

Create an avatar of that customer. Ask yourself specific questions about them:How old are they?

• Are they male or female?
• Do they have children?
• How much money do they make?
• What are they interested in?
• What are their priorities?

Knowing the answers to these questions will help you create more accurate messaging around your product and target the right audience in your marketing efforts.

Identify The Problem You’re Trying To Solve

When you’re sure you have a clear understanding of your ideal customer, their pain points, and their desires, then you can understand how you can help. This is commonly referred to as consultative selling, where you consult with the customer and find out what they need.

What problem does your product or service solve? How does it address the pain point of your customer?

If you have identified your customer correctly, and know how your product helps solve their problem, they’ll buy it from you. If, however, the customer you have defined doesn’t have this problem, they won’t buy your product.

All great success and all great fortunes come from serving people with what they want and are willing to pay for better than someone else. By adopting a “help” rather than “sell” mindset, you can understand how to serve people better and provide incredible customer service.

Try The 100-Calls Method

If fear of rejection is what’s keeping you from starting sales conversations, I have an exercise that will help you gain more confidence and generate more leads called the 100-call method. Reach out to 100 customers as fast as possible, either by phone call or personalized email.

The goal is to practice talking to people, not necessarily to see results — though that may happen!

When you do this, you’ll not only become fearless of picking up the phone but you’ll also learn how people respond to your pitch and become a better salesperson because of it. Just be sure not to sacrifice the quality of the call just to check it off your list.

You never know who could turn into a paying customer.

 
Utilize Ads

Sometimes it makes sense to spend money in order to make money, but it doesn’t have to take a lot. With the right ad, even a small budget can be effective and increase leads. You just have to know who your audience is, where you want to reach them, and for how long. Consider Google, Facebook, and Instagram ads, depending on where your customer is at.

When utilizing ads as part of your strategy to increase sales, it’s a good idea to run tests. Ad tests will help you learn the process of creating ads, help you better understand your audience, and ensure your budget is put to good use.

2. Speak to the customer deciding journey, not your sales process

A sales process is a set of repeatable steps that a salesperson uses to lead a prospect to purchase. Typically, the sales process involves several steps like prospecting, qualifying, discovering needs, negotiating, and closing. This would be an ideal checklist to follow if all your buyers were robots being taken through an assembly line. But that’s just not the reality.

Selling today isn’t a predictable progression that you’ve decided is how your prospects and customers should buy. What you’re really up against today is a Customer Deciding Journey—a series of key questions your buyers are asking as they look to address specific business goals.

Instead of being “program-centric” with a one-size-fits-all sales strategy, you need to be problem-centric, addressing the specific needs of your buyers as they arise with situationally relevant messages, content, and the skills to deliver them.

3. Implement a free trial.

Offering a free trial or freemium version of your product is a highly effective way to convert prospects. HubSpot’s sales strategy report found that free trials were 76% effective followed by a freemium option with 69% effective in turning prospects into paying customers.

Free trials give potential customers the opportunity to test your product out before committing. You can place restrictions on your free version like limited features or usage caps. In addition to providing prospects a risk-free chance to try your product, free trials also help build brand loyalty and expand your customer base. Prospects that have a positive experience using the free version will be more likely to convert to the paid version.

4. Increase Sales By Presenting The Product Effectively

Presenting your product effectively will help you increase sales by increasing conversion rates, the rate at which you convert leads into paying customers.

Your conversion rate is the measure of the effectiveness of your sales efforts. In order to help drive conversion rates, you need to work on developing your pitch in a clear, effective way. Here’s how to do that.

 
Develop Your Competitive Advantage

The odds are good that you’re not the only one selling your specific product or service. So it’s critical to be able to explain the benefits or results your customers will receive from purchasing your product or service that they will not get when purchasing the product or service of your competitor.

In order to develop your competitive advantage, you need to know what else is out there.

What are your competitors’ claims? What are the benefits they’re selling? How is what you’re offering different?

You should be able to express why people should choose your product or service over others on the market if you want to be growing sales.

 
Pick The Right Price

The price you set for your product or service is important. Not only does it affect your profits, but it also affects the perceived value of what you’re offering.

Before you determine it, you need to fully understand the costs associated with producing the product and get a feel for what your ideal customer would be willing to pay for it. You also need to know what your competitors are charging for similar products or services.

One of the best sales strategies is to beat your competitor’s price, however, you also have to make money. If you can make your product seem superior to your competitors, you may be able to charge a higher price. Keep this in mind and use it to help you set the perfect price.

 
Make Sure Your Messaging Is Clear

When it comes to learning how to market a product or service, clarity is critical. Pick one to two key benefits that your product offers and state them clearly in all the content that is part of your sales and marketing strategy. This will ensure the story you’re telling about your product is aligned across all of your marketing channels and your customers know exactly what it is you’re selling.

 
Market Content On Multiple Channels

As part of your ongoing strategy to increase sales, you should be continually seeking creative ways to improve your advertising and promotional efforts to reach new customers.

There are so many mediums out there including Twitter, Instagram, Facebook, LinkedIn, TikTok, Youtube, email, blogs, podcasts — even traditional print materials such as magazines and newspapers — that can get your message and product out to the right audience.

5. Provide a personalized, clear end result.

When customers come to your business, they aren’t necessarily looking for a product or service, they’re looking for their desired end result. These customers want to purchase a means to improve their own operation, or simply improve their strategies with the help of your offering.

After you explain your product or service offering, you have to personalize the benefits to each client in a way that’s valuable to them. If you’re selling customer service software to a small business that has no experience with one, it’s your job to educate them on its use in the setting of a small business, not to manage hundreds of employees in larger ones. By doing so they will have an easier time seeing how they can use it and spend less time debating what they’ll use it for.

By painting a clear picture of the end result, your customer will be able to see the value of the purchase and feel more inclined to accept the offer.

6. Be willing to adapt your offering.

In sales conversations, you should expect to come across clients with unique demands. It’s only natural when working with companies of different structures and needs.

Instead of saying “you won’t” or “you can’t” — make sure your sales strategy is adaptable to accommodate the customer’s desire.

7. Tailor your sales strategy for customer expansion

Most sales and marketing teams spend the majority of their budgets and effort on customer acquisition and demand generation. Meanwhile, the majority of your annual revenue likely comes from your existing customers, through renewals and upsells.

Nearly half of the companies surveyed by Corporate Visions invest less than 10 percent of their marketing budgets in customer retention and expansion. Clearly, your customers are highly underrated yet powerful growth engines within your company. And you shouldn’t overlook the potential of this untapped revenue stream.

The challenge is, retention and expansion require a distinct messaging and customer conversation approach. Existing customers are in a different position than your prospects—one that carries a unique buying psychology.

While customer acquisition is all about challenging the status quo to highlight the benefits of switching to your solution, customer retention and expansion require you to reinforce your position as their status quo. In fact, research shows that using a provocative, challenging message when you’re trying to renew or expand business with your customers will increase the likelihood that they’ll shop around by at least 10-16 percent.

8. Increase Sales By Investing In Yourself

Improving your ability to sell and convert interested prospects into paying customers is one of the most important things you can do to boost sales. There are many parts of the selling process and improving in even one of them can have a dramatic impact on your results.

Attend Sales Trainings

Some people are naturally good at selling; they can easily connect with a customer, find common ground, understand their desires, and persuade them to purchase their product. These skills don’t come easily to everyone, though.

In fact, the majority of salespeople have to learn, practice, and hone these skills over time to become successful. Even if you’ve worked hard to become the salesperson you are today, you’re never done learning.

Sales training can open your mind to new opportunities others have seen success with, allow you a chance to network with other creative salespeople, and even generate new leads or partnerships.

Learn How To Negotiate

At some point in your sales journey, you’re going to run into someone who wants a lower price or additional benefit, or a situation where you’ll have to compromise.

Learning how to negotiate can not only help you improve your relationship with your customers but can also help you drive more sales. The best negotiators look out for their customer’s best interests and find a solution that works for both parties.

 
Develop A Prospecting Strategy

The best salespeople have a plan to develop the highest quality and quantity of prospects that can and will buy within a reasonable period of time.

Prospecting is an essential part of successful sales strategies and something you need to prioritize if you want to increase sales.

If your sales strategy is lacking this critical component, or your prospecting tactics are falling short, I’ve created an essential prospecting checklist that will help you focus your attention on the prospects that will have the maximum return.

 
9. Enable ongoing situational training

Most training and learning efforts are based on a collection of competencies, supported by a curriculum and catalog that gets scheduled on calendar-based interest and availability. But what does that have to do with helping the company’s business strategy, responding to shifting market demands, and intervening to fix emergent needs when they arise?

To be as effective and efficient as you need to be today, your sales training has to rise to a new level of flexibility, customization, and situational relevance. Using a flexible, on-demand training model enables you to deploy it at a moment’s notice to solve problems as they occur, and tackle initiatives as they arise. Training your sales team for situational agility equips them with the messaging and skills they need relative to the customer conversations they’re having.

10. Increase Sales By Connecting With Your Customers

Establishing trust with your customers is key to ultimately persuading them to purchase what you’re selling. Even in an increasingly virtual world, there are many ways to connect with your customers, establish trust, and gain influence.

Here are three ways to improve sales by connecting with your customers.

Utilize Social Media

Social media is a free space where you can connect with your customers daily. If your customer is using social media, you need to be using social media. This will keep you top of mind when they consider what they want or need to buy.

As you use social media posts, such as photos, videos, and captions, be sure to provide valuable information; avoid talking “at” your customers and instead try to teach them or explain something to them that is in line with what your product or service is all about.

You can also use social media as a space to show proof that your product or service actually works, such as before and after stats, photos, or testimonials as well as videos of the product or service at work.

Don’t forget to respond to comments and answer questions. This is an amazing way to help sell to new leads.

Remember to be friendly and conversational as you approach your customers and potential customers in this space. If you use it correctly, you can establish trust and increase your leads.

Promote “Insider Information”

Everyone loves a good deal, and when they feel like they have the inside scoop on an upcoming sale, or receive early access, your customers will develop greater trust in and loyalty to your business. They may even buy more because of it.

This doesn’t only go for sales and special offers. Keep current and repeat customers in the loop with upcoming launches and business news too, and soon, they’ll develop a vested interest in the business.

Maintain Relationships

“Once a customer, always a customer” — this should be your motto if you want to learn how to increase sales in business.

Once a customer has purchased your product, it should not be the end of your interaction with them.

Focus on maintaining a strong relationship with your customer by making them feel valued so that they stick around, and get others to become customers as well. A forever customer will do more for your business than 10 one-time customers.

 
Implement A Referral Program

Everyone wants to feel appreciated, and a great way to make your customers feel valued is to reward them for referring their friends and family members.

Use future discounts, rewards points, freebies, special access, etc. to incentivize current customers to hold the flag for you.

Not only will this help maintain your relationship with your customers but it will also help you gain new leads who are more likely to purchase because they received a direct referral, all without any additional effort on your part.

Maintain a high-quality pipeline by eliminating unqualified leads.

Shopify uses the 4/5 Threshold to filter out unqualified leads, thereby allowing its sales reps to focus on selling to leads who have a higher probability of becoming customers.

When evaluating whether a lead is qualified, a rep must have a concrete answer to four of the following five variables:

Pain: Is the prospective customer experiencing a prominent business issue or challenge that requires them to make a change?

Power: Is the prospective customer directly involved with the decision-making process? If not, who is?

Money: Does our offering fall within their budget constraints?

Process: What's their buying process?

Timeline: What stage are they in the buyer’s journey? Will they purchase within a reasonable time frame?

With these  sales strategies, you will be well on your way to growing sales and increasing profits. Let me know what you think and what your best sales strategy is in the comments below. 

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30 Best small business ideas you can start with less than 10K

Planning to start your business but not sure where to begin? Statistics show that 5.4 million SMBs filed for formation in 2023 alone. However, starting your business requires setting a budget before you can start minting money.  

If you've also dreamed about starting your own business but are turned off by potentially high start-up costs, check out this list of the top businesses to start with $10K or less in the bank. I spoke to lots of people who've been successful with these business types, so you'll get some inside tips along the way.

Corporate Insurance Broker

Insurance brokers and insurance agents aren’t the same thing. Brokers tend to be licensed while agents often aren’t, and brokers can usually work with a wider range of insurance companies than agents can. Brokers generally can take on a higher level of risk, also, with the authority to analyze and make decisions about a potential client’s worthiness for insurance.

Going the broker route will give you more freedom to offer a variety of insurance products for various types of businesses. You’ll need that license though, so save some time and money to earn it. Once you’re licensed, you can take your services to local businesses with a considerable amount of credibility.

The key to finding prospects will be to network heavily. The local chamber of commerce, local business and trade associations of almost any kind, even online business meetups or local events such as fairs and school sporting events—they’re all opportunities to get your name out in the community.

You might also have to do some cold calling or visiting local business to prospect for business. It won’t be easy, and you might experience more initial success if you already have a lot of friends in the community where you live. But the reward could be very much worth it. This is a business that is hard to get started in, but once you get going you can build terrific momentum and profits as you build your clientele.

Dropshipping

Dropshipping is easily one of the easiest businesses to start as a small business. Its starting cost is around $1000 with a 10% to 40% profit margin depending on how you run it. You can earn up to $1M annually with this business model. With the increasing popularity of dropshipping, the industry has expanded quickly.

Tutoring Services

Students require help with their subjects all year long; it’s one of the most stable businesses and hardly requires an investment. Yes, you do have to gain experience and expertise in the subjects of your choice for them. Freelancing platforms like Upwork can also help you get started faster.

3D printing

A 3D printing business involves charging clients a set rate for access to printing or designing and printing your own products to sell. To start this business, you'll first need to purchase a 3D printer, which will cost approximately $1,000 to $6,000 based on the model chosen. 

To get started:

• Purchase a 3D printer and needed materials
• Determine if you'll create your own products or rent out your printer
• Determine your pricing structure per object or per rental period 

Real Estate Agent

Becoming a real estate agent is relatively costly, as its starting cost lies between $5,000 and $10,000 on average, with a median income of $49,000. It would help if you also had licensing and certifications and fulfilled the requirements needed.

Hauling Business

The startup cost of trucks and trailers ranges between $5,000 and $10,000, and you can increase your fleet with time. Professionals in this business earn around $15-50 per hour, along with other expenses. You can also help eliminate unwanted junk and clean the area.

Digital Marketing Consultant

A laptop and an internet connection are all you need to get started with this profession. You will easily make $24k to $60k per client with a 10% to 40% profit margin. It depends on the quality of services, as well as the affordability with which you can maintain the business operations.

Tour Guide

If you become a walking tour guide, it will cost you as little as $2,000. If you want to make it more special, you can always use a vehicle that costs around $10,000. The best part is, you can charge up to $360 per person during the tours. Recovering your initial investment will not be a problem in this case.

Green Business Consultant

The startup cost for this business varies for regions but is under $10,000, with a commission potential of $1M/year. However, you have to gather knowledge about the following: 

• The available technology
• Green-minded contractors for installations
• Conservation methods
• Calculating return on investment

Personal Trainer

If you are a fitness enthusiast, becoming a personal trainer can be your most viable option. You may need to spend $5,000 monthly for most businesses and earn up to $96,000/year. You’ll help people achieve their fitness goals while earning a substantial amount for yourself.

Window Cleaning Services

Most of the essentials for window cleaning services are available in your home, and are also readily available and affordable. You can make anywhere between $50,000 and $75,000 per month, going up to $1M/year. It’s a great spin on classic housekeeping services and can help you get more payments.

Online Business Manager

As an online business manager or consultant, you need the following things to start: Management experience
Internet A laptop

There are some certifications to prove your skills, but you can constantly update them over time. You can help CEOs achieve tremendous industry success too!

Fashion Designer

The median income for fashion designers is around $65,000, but you can always get more if you have the skills and reputation. You will need sewing machines, fabrics, and measuring tape. Later, you can work your way up and grow as a business.

Local Delivery Service

As a local delivery service, the primary costs of businesses include the licensing and vehicle expenses/ This business has an estimated 32.6% CAGR 2021-2027. This allows small business owners to earn up to $1,200/week with services like UberEats.

There’s a profit margin of $1-8 on every delivery after paying your drivers. This kind of business may take slightly longer to take off, but it will be worth the effort in the end.

YouTube Content Creator

Starting a YouTube channel as a content creator is free. You may have to handle some startup equipment costs, but you can start with what you have. There’s a $.10 to $.30 margin on every video view. You can also make $3 to $5 per 1,000 views on your channel, depending on your location or region.

Search Engine Optimization (SEO)

You can start working in SEO with free tools and gradually work your way up. The top-rated industry professionals earn up to $150,000/year, making it a great small business idea. You can use different tools for the task, including: 

• Keyword research
• Improving site speed
• Google My Business
• Content marketing

Freelance Writer

As a writer, you can start for less than $100 and earn up to $150/hr if you have the skills and experience required. You can also sign up as a copywriter and provide various services to industries. Tools like Surfer SEO can help you optimize your content and start your writing business.

Rental Service for Equipment

The startup cost for the equipment rental service is around $15,000 (without heavy machinery). In this business, you can enjoy an average gross profit margin of 30% to 40%. The rental equipment business is popular in various industries, such as Home medical equipment rentals
Construction tool rentals
Cars, boats, and other rentals

Brick and Mortar Restaurant

A brick-and-mortar restaurant is one of the few businesses you can start for $10,000. These businesses may have various requirements, including health district inspections, insurance requirements, etc. Nonetheless, it’s a profitable SMB to get started with.

Starting a Food Truck

To start a food truck, you need around $10,000 and make your setup $1M per food truck. There’s also a $20,000 to $50,000 profit margin from these food trucks. It’s ideal if you like feeding people and want money.

Import/Export Business

Have you seen something while traveling abroad that you’ve loved and you thought maybe people back home would buy? Bring it home and sell it with an import/export business. (Or, take something you love here and send it abroad for the “export” part.)

In the Internet era setting up an import/export business is relatively simple. Pick what it is you want to import or export—one product, or at least one category of product—and stick with it. Get going with a website and a blog about the product you’re trying to sell. Learn everything you can about that product.

It gets a little trickier from here. You’ll need to determine where you want to sell your product, whether you’re importing one to sell here or exporting one to sell elsewhere. If you’re importing, you’ll need to find a supplier for the product. After you have a supplier, you’ll need a company that can ship your product back and forth, including a company that can clear customs for you. Once you have a sense of your costs, you can determine a price for whatever it is you’re selling.

I would first recommend that you try to wholesale your product to retailers online or offline and focus your business model on importing and sourcing. But you might want to try your hand at selling directly online too. In either case I would create an awesome looking website, with a lot of thought given to search engine optimization.

This is a business idea that will take some time to plan and execute. If you can get it up and running successfully, it can be a pathway not only to profits but also to excitement and getting to know fascinating people around the world. One of my friends started a business while still in college, importing goods from local artisans in Latin America into the US market. He grew the business to the point where he was using the entire available cargo capacity on some airline flights.

Become an Ice Cream Man

Everyone recognizes the ice cream man on the corner of the street. You can start this business for $10,000. However, it would help if you remember your target audience is kids, there’s a seasonal fluctuation at times, and all you need is a freezer on wheels.

Meal Prep Company

The starting cost of license and inspection is the most significant consideration for small business owners. There’s a $20 to $50/hour profit margin you can consider. You can create a menu and market it to your potential audience.

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10 Basic Principles of Financial Management You Need to Know

Whether you do all the work yourself, there are some basic money principles to be adhered to. It is also necessary to have answers to the following questions. What do you know about money? Do you understand money? Do you have a philosophy about how you use your money?

Experts say many people have little understanding about money; consequently, their finance are never in order regardless of how much money they have. Below are simple money rules that you need to know.

Differentiate between needs and want: Many people end up spending their fortunes on things they do not need. According to experts, everything that people really need revolves around foods, shelter and clothing. They stress that a key aspect of financial planning is the ability to differentiate between needs and wants. 

Unfortunately, they say many people fail to do so. While it is true that in today’s world many items, besides basic needs, are necessary, the decision to have your house fitted with classic painting by great artists at great expense definitely falls under wants. And they are many more examples like that. 

Even when people go for their needs, their decision is often informed by their want. For instance, while you need a bed to sleep in, you do not need one that has gold engravings or fitting all over. Many people spend money that way, on the things they want, believing that they are getting things they need and this can be a costly mistake because it amounts to money going to waste. To spend money wisely, always distinguish between wants and needs then go for the needs and ignore the wants.

Do not spending all your earnings: While this is self-explanation, many people find it impossible to spend less than they earn. But for you to keep your finances in order and to avoid getting into debt or running out of cash before the next pay day, if you do not spend all that you earn each month, you will have some cash to either pay off your debts or save. Now, the benefits of having some form of saving are numerous. Saving can allow you to invest, resolve emergencies and ease the financial pressure you feel when you run out of cash before the next earnings. Of course, the economic situation in the country has left some people with barley enough to feed, but many people have risen above such a challenge by adopting drastic saving tips.

More money may not be enough: For many people, the solution to their financial challenge is more money. While some of these people may genuinely need more money, experts say some others have enough nut mismanage it because they are financial illiterate. They do not differentiate between their wants and needs; they adopt a lifestyle that results in spending more than they earn, etc. Take time out to determine which category of money user you belong to, and if you believe that more money is what you need, then you need to know that there will be a time when you will realise that you did not need all those gadgets, cars or personal houses. When that time come, more money will hold no appeal.

Plan for the unexpected: Despite your best efforts, you’ll face some unforeseen emergencies along the way. Morris urges, “Save enough money and stock up on insurance to be able to weather extended unemployment, accidents, catastrophic medical care, large car or house repairs, and natural disasters.” Increasing the amount of money you save when times are good can help you manage the cost impact of bumps in the road, making sure unexpected financial exposure does not derail your long-term goals and your family’s financial security.

Money decisions have costs: It is important to note that every money decision you make, there is a cost attached. This means that by deciding to purchase one item, you are giving up another. By bearing this in mind and weighing both options critically, you are more likely to avoid making a mistake. For example, if you have N1m and you are to choose between the car, you need to know that the car did not just cost you N1m, it also cost you a plot of land.

Organize your finances: Organizing your finances is the first step to creating wealth. Credit cards, bank accounts, personal loans, brokerage accounts, mortgages, car loans, and retirement accounts — track everything. Budgeting software can provide complete solutions to track all such accounts, make on-time payments, and more. Jeff Morris, a certified public accountant in Bethesda, Maryland, points out: “Once you enter your accounts and balances into budgeting software, you will be able to spend less time getting organized and more time making sense of your situation.”

Budgeting: This is another simple but highly important principle; however, it’s one that a lot of people underestimate its importance. Budgeting provides a pathway to the first tip mentioned of spending less than your earnings. With budgeting, you also have control of your day-to-day finances, prioritise expenses, plan better for your basic needs and even unexpected needs and also act as a check to spending unnecessarily. Never underestimate the power of budgeting.

Keeping records: This is another money principle that’s highly important, but the lazy man sees this as stressful and unnecessary. Keeping records of your financial transactions gives you better knowledge of your financial life, and that in itself is a financial victory.

Keeping records of your financial transactions would enable you know how effective or ineffective your budgeting is and how to correct the loopholes. It would also give you a clue on what’s actually consuming a gulp of your money and how to minimise it. Basically, you understand your financial position better when you keep records, and it’s even dire that some business people don’t see the need for record keeping.

Develop yourself: For you to get the most out of your money, experts say it is important that you spend some to develop yourself, you need to spend money to improve knowledge and to acquire self-management and communication or networking skills, which will not only help you to grow but enable you to manage yourself, your health and finances better.

Don’t try to impress others: When you try to impress other people, you are likely to cause financial problems for yourself. Because not only is such a move capable of making you to live above your means, it is also likely to make you invest in items you do not need. For example, there are people who have gone out of their way to purchase cars, only to find out that they cannot maintain them. Some of them are forced to sell the cars at a loss. The advice is that you live beneath your means, and develop a saving habit and in the future, perhaps when you are in your late 30s, you might be better off financially.

Also, avoid borrowing money. Of course it is easier said than done, but by debt-free, you stand a better chance to taking control of your finances and planning for the future. According to experts, if you can just live within your means for some years, you will be able to achieve a high level of stability.

Understand risk: The key to understanding return on investments is that the more you risk, the better the return should be. This is called a risk-return trade-off.

Investments like stocks and bonds that have a higher rate of return often have a higher risk of losing the principal that you invested. Investments like certificates of deposit or money market accounts with a lower rate of return have a lower risk of losing principal. Since no one knows the future, you cannot be 100 percent sure any investment will do well. Morris explains, “If you diversify your investments, one can go sour without severe impact to your overall portfolio.”

Diversification is not just for investments: Find creative ways to diversify your income. Everyone has a talent or special skill. “Turn your talents into a money-making opportunity. Investigate ways to make money from home and launch a home-based business,” Morris says. The extra income can supplement your full-time income or even result in an exciting career change. Good financial management software can show you how even a slight improvement in income can positively change your financial profile.

With these money principles, you would be sure to have a better guide to making better financial decisions and living a healthier financial life.

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Top Five Benefit Or Important of E-Commerce To Businesses Owners

Ecommerce has always been the way of the future, but it is more so now than ever. The outer world has become a place of ambiguity, caution, and social distance, highlighting the many benefits of e-commerce for both companies and customers.

Since its inception, global ecommerce has been increasing year after year. People prefer shopping online to shopping in a physical store because it is more convenient and simple. Amazon and Flipkart are examples of how ecommerce is transforming and disrupting the industry. Consider the following major benefits of ecommerce and start selling online.

If you have ever purchased anything online via your computer or mobile phone, you have reaped the benefit of the convince that e-commerce offers customers. According to InvestoWords, e-commerce is defined as the buying and selling of products over the internet. It is an easier and quicker way of making purchases online without the hassles of visiting a physical store or office. It also help save you the stress of going to store to the main store in a far distance away from your house.

Here is how it e-commerce works: A customer makes an order on your online store and pays using credit or debit card or opts for a pay on delivery option. On the other end, the payment reflects in the bank account of the seller. E-commerce payment options can easily be integrated into your website. So, you may need to discuss with your web designer or bank manager on options for collecting payments online. This is important.

In more developed countries, e-commerce has paved the way for seamless and smooth business transactions outside the physical office location, in Nigeria, however, it still a growing trend, although it is becoming widely accepted at a fast rate. The major reason e-commerce is developing slowly in this part of the world is because we still grapple with the issue of trust and less access to internet connection.

Business owners running online stores face the problem of building credibility and encouraging customers to trust that they are genuine especially with the prevalence of scammers online. However, with a comprehensive marketing plan in place to boost your business presence and commitment to delivering superior value at all times, a business owner can enjoy the great benefits of running an online store anywhere in the world .

If you are yet to be convinced about the benefits of e-commerce to your business, especially if the business is more products than service-based, here are reasons you should consider running an online store that will guarantee you your investment:

More Customers: An e-commerce allows case of payment no matter where you are, your business can thrive in the digital space thereby attracting more online customers. Many business owners have directed traffic through their social media pages like Facebook, Instagram and Twitter to their online store, thus increasing their customer-base and increase their sales.

To enjoy this benefit more, take advantage of digital marketing and advertising to grow your customer base. With a great landing page, customers can be directed to your online store with just a click of a button where they can make instant purchase.

More Sales: With more customers attracted to your online store, your business is bound to enjoy more sales and profits. This is where you want to take this benefit a notch further by retaining old customers and gaining new referrals. Try offering incentive to new or old customers such as periodic discounts or a free item for every new customer that is referred to your online store. Also ensure that your online customer service is functional so that complaints and queries are treated immediately. There is nothing as frustrating and damaging to your brand as having poor customer service online.

Wider Reach: E-commerce is not bound by location. Hence, purchases can be made anywhere in the world. This is especially beneficial to business owners with exportable products or e-goods, including. E-books and other documents, as e-commerce allow anyone, no matter where they are, to make payments while allowing the business owner to cash easily. is it that easy! Yes of course.

Reduced overhead costs: Running an e-commerce store is a lot more cost-effective than running a physical store. You don’t have to rent commercial real estate — instead, you can pay an affordable fee for web hosting. You don’t have to invest in security for your commercial property, plus you don’t have to worry about paying rent for a warehouse or hiring employees. With an e-commerce store, typical costs include your domain name, your web hosting, and the cost of building your website, as well as your inventory. That being said, most e-commerce websites spend some money on marketing as well.

No need for a physical storefront: There are so many difficult aspects to running a physical storefront and using e-commerce means you don’t have to face most of those obstacles. Renting a commercial property can be expensive, especially if you’re in a big city. You also have to pay for electricity, water, and internet to ensure your space is up to code and can handle your business. There’s also security to consider; if you want your physical storefront to be secure, you’ll need to invest in cameras and other surveillance equipment. With an e-commerce store, you can simply build your website and start selling your products online without worrying about setting up a physical storefront and spending as much money.

Flexible Work Hours: If you’ve heard the term ‘make money while sleep’, this is obtainable when you take your store online. Unlike physical locations that are open particular hours of the day, your online store can be open 24 hours a day, seven days a week. No matter the time, whether you are online or offline or your business is closed for the day, or you are away, customers can place their orders and you can act on them when you open business the next day. That is the good thing about e-commerce business. Note though that the quicker you act on orders the more satisfied your customers will be.

Faster Buying Process: Previously, a customer had to schedule his shopping trip in advance, even though he desired to purchase a single item. This will include rearranging his schedule and making the purchase at the store. Another vital advantage of ecommerce is that it expedites the purchasing process.
A trip to the outlet that is approximately two to three hours away from your home is no longer required. Simply sit back in the comfort of your own home or workplace, conduct a product search, and complete the order.

Additionally, online stores are open 24 hours a day, seven days a week, allowing you to shop at your leisure. By providing many options, ecommerce enables the consumer to purchase a specific product without wasting time conveniently. Additionally, you save travel time by having the product shipped to the destination of your choosing.

Product Catalogue: Customers are looking for a detailed overview of the items they wish to purchase, which is a critical aspect of ecommerce. An e-commerce platform provides its customers with a product catalogue that includes data sheets that detail all of the company’s products and services.

The characteristics, utility, and specifications are comprehensive. Even the colours of certain items, such as cell phones, are defined so that you can make your selection based on personal preference. Customers can learn about the ingredients in edible items and gather additional knowledge that is not available in retail stores.

With expertise at their fingertips, customers can more easily purchase the products they want. Additionally, online websites provide reviews and consumer feedback that inform consumers about a product’s marketability. The portal provides warranty information and other product-related terms and conditions that may prove helpful to a customer.

No Physical Store: E-commerce allows the small business owner to skip the process of purchasing a physical location, thereby saving costs for rent. You can work out your inventory from your living room as long as you deliver goods to your customers on time. All you need to work out is delivery logistic.

Many clothing and jewellery stores have taken advantage of this especially in Lagos. These stores charge a token for delivery and as soon as you pay. They have their delivery person send purchased goods at a particular day of the week which saves costs as well.

Whatever works work for your online store, ensure that you never give customers reason to mistrust you as a bad reputation can be damaging to your brand and bottom line.

In conclusion, e-commerce has come to stay and with the bank policies that have been rolled out recently, it is inevitable that more businesses will automatically embrace e-commerce in the next one year or two. Businesses that decide to start now to build an online reputation for their brands stand to enjoy the benefits listed above. Most importantly, build credibility for your online business by taking advantage of your social media pages to promote your online store.

What do you think of this? Leave a comment below let's us know your thought about the benefits of e-commerce to business owners. And if you have any contribution feel free to use the Create Link Bottom Below. Thank you for your time reading my post.

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How To Build Wealth: 5 Simple Ways To Build Your Fortune

Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, the only real way to get rich overnight is via speculation, an inheritance or a lottery win.

Ironically, the best way to build wealth “fast” is to chart out a prudent path toward long-term gains. The quicker you can save and invest, the faster your money will compound, which is the true magic behind building wealth. Here are 10 ways you can grow your net worth as rapidly as possible without taking on undue risk.

Successful people invest time, energy, and money in improving themselves. A man told me once, "The best way you can help people in need is to not be someone in need." Help yourself out so you are in a position to help someone else out. This means investing in yourself to become great at something.

I invested in sales training when I was 23. That made my income-producing ability skyrocket. Investing in yourself is the best investment you can make.

1. Find a job in the right vehicle: The rich are able to get in with the right company where there is opportunity for growth. My VP of sales Jarrod Glandt started working for me over seven years ago for $2,500 a month. He wasn't making anything but he was in the right vehicle. He grew his skill set and was able to multiply his monthly income many times over because he knew I was looking to expand.

Too many people just look for a job. You need a job, but you need the right vehicle. All companies live from this thing called revenue. Get commissions rather than just a salary and you will finally be in control of how much you earn.

2. Get great at what you do: Commit to being great, not just average. Any industry can be a painful profession for average and bottom performers, but massively rewarding for those that are great. Those that live, breathe, and eat their profession, those that are obsessed, become great.

I have never met a great who wasn't all in and completely consumed by their trade. Have you? The fact is, if you aren't great, you are average. The rich get great.

3. Get multiple, connected income streams flowing: You won't get rich without multiple flows of income. That starts with the income you currently have. Increase that income and start adding multiple flows.

You want what are called symbiotic flows. Do not just add disconnected flows. Instead, find other ways you can add income to the job you already have. My video guy does advertising for me — and after proving himself, he started making advertisements for those connected to me. He didn't start a doughnut shop.

Too many people go from one flow to a second flow, resulting in two flows that do nothing. Your flows should always be connected.

4. Hit $100K, then invest the rest: First, try to save $100,000. Why? You need to prove to yourself that you can go out and get money. If you have only $10,000 saved, your only priority should be increasing your income so that you can save more.

Saving $100,000 shows that you have an ability to make money and then to keep it. Most people can't do either of those things.

5. Buy a Rental Property

One of the key ways to build wealth fast — and over the long term — is to earn passive income. And one of the best ways to generate passive income is to own one (or several) rental properties. With a well-managed rental property, you’ll receive a steady stream of income every month, with little additional effort required on your part. 

While you’ll have to find tenants to move in and will have to deal with occasional maintenance issues, your income will essentially be on auto pilot. Unlike your mortgage payment, your rents will continue to rise over time, meaning your tenants will be paying some or all of your mortgage while you watch your properties appreciate in value.

Run Side Hustles

Even if you have a job, you don’t have to only rely on your paycheck. You can run a successful side hustle to increase your income. You can turn your talent or hobby into monetary value during your free time.

There are many lucrative side hustles you can run online as long as you have internet access. These include:

• Working as a virtual assistant
• Freelance writing and editing
• Copywriting
• Online tutor, coach, consultant
• Web design, app development, coding, etc.

Other side hustles that don’t need internet access include:

• Part-time professor at a local college
• Part-time gym instructor
• Freelance bookkeeping, tax preparation, tutoring
• Becoming a shopper
• Part-time driver for a ride-sharing or delivery service

Once you can earn and save, then you can start building wealth. I'd recommend multi-family real estate if you are conservative like me. I never looked to get rich quick, but I did look to get rich.

6. Create a budget

Creating a budget and sticking to it is crucial if you want to know how to build wealth from nothing. 

Using that regular income source we just spoke of, now you need to create a budget to take control of how you are spending your money, usually set on a monthly basis.

A budget is a financial plan for a defined period that contains estimated income and expenditures for that period.

Every household and/or individual needs to create at least a monthly budget to identify your expected income and estimated expenditure. Living without a proper budget is like sailing without a compass, and you can guarantee that you’ll get lost in the seas of financial missteps. 

A popular budgeting technique is the 50:30:20 rule. In this technique, you can formulate a budget where 50% of income goes to essential expenses (rent, mortgage, food, healthcare), 30% to non-essentials like shopping, vacation, entertainment, and 20% to savings and investments.

Why is budgeting important? 

One main reason is that by understanding how you spend your money, it’s easier to identify the things that can be cut: the lower your expenses, the more you can add to your savings and investments. 

By identifying and cutting unnecessary and avoidable costs, you can build wealth faster. It’s that simple.

7. Build an emergency fund

Now that you have learned how to save a significant part of your income, the next course of action to build wealth from nothing is to create an emergency fund. 

An emergency fund is like self-funded insurance. It’s money you set aside for unexpected expenses like car repairs and unforeseen circumstances like job loss or pandemic-induced lockdowns.  

When unexpected expenses and unforeseen circumstances arise, there are ways to make matters worse: incur debt and/or sell your investment(s). 

You pay interest on debt, and when you sell your investment(s), you lose both the amount you sold and the interest from the market exposure it could have earned if you didn’t sell.  

Therefore, to avoid those two scenarios, we recommend you learn how to start an emergency fund right away. An emergency fund should hold between three to six months of your monthly expenses. Also, ensure those funds are in a savings account where you can easily access them when the need arises. 

Like insurance, an emergency fund won’t make you wealthy, but it will prevent you from selling your investments or incurring debt during emergencies. 

Live Within Your Means

You’ll never generate any wealth at all if you spend more than you earn. To set yourself up for a lifetime of prosperity, it’s important to create a strict budget and stick to it. Make sure that in addition to all of your unavoidable expenses, you’ve got a significant line item for saving and investments. Every month that you can come in under budget, you’re adding to your pool of lifetime wealth.

Don’t Be Too Conservative

Although being too speculative is a sure-fire way to risk all the savings you’ve worked for, being too conservative can be equally damaging in terms of limiting your wealth. Taking some risks in your financial life — from investing a bit more aggressively to starting your own business — is a necessary component if you want to generate outsized levels of wealth. 

If you put all of your money into Treasury bills, for example, you’ll actually generate a negative real return after taking taxes and inflation into account. Owning some stocks, real estate, your own business or even some cryptocurrency are ways to gain exposure to higher potential returns on your investments. Just understand that while speculation has a role in generating wealth, it also brings additional risk to the table.

Building wealth is not a rocket science process. With dedication and discipline, you can grow your wealth fast. Before starting on this journey, it’s important to equip yourself with financial education. That alone should catapult you through the other steps seamlessly and eventually build wealth.

Many people overlook retirement accounts when it comes to building wealth. You’ll not only save for retirement but also grow your wealth over time.

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Professional Tips on How to Save $4000 in a Year and Grow your Savings

Do you live from paycheck to paycheck, use credit cards to keep up with your bills, and feel that you cannot afford to buy anything you want?

Feeling that you don’t make enough money to save anything is a sign that you would benefit from taking a proactive approach to saving. Having a savings account will bring you peace of mind and help you manage your finances more efficiently.

It will also help you spend less money on your living expenses because, when a financial emergency arises, you won’t have to borrow the funds to cover the crisis and then pay them back with interest.

Saving money could also allow you to take a well-deserved vacation, put together a down payment for your dream home, or buy a new car.

Regardless of what you need money for, you can save up enough if you make a few changes to the way you handle your finances. You might think that the only way to save up money is to make sacrifices.

Not even close! Saving money doesn’t have to be hard. You can still have an enjoyable lifestyle when you’re putting money away. The key to saving money is to be smart about your finances.

In this action guide, you’ll discover how to save a few dollars each day. The changes may look insignificant, but small savings add up!

Following these tips will help you save $4,000 in a year. Sooner than you think, you’ll have a hefty savings account and find even more ways to save money as you get the hang of it!

Step 1: Take Control!

Budgeting and money management don’t have to be complicated. You just have to find a system that works for you, and these tools will make managing your finances a lot easier.

Track Your Habits

Tracking your spending habits can take a while because you’ll want to see where your money goes for at least a month.

The immediate benefit of tracking your spending is to identify the recurring expenses that you could easily avoid.

You could save from $3 to $15 a day depending on your habits:

1. Do you pick up a cup of coffee on the way to work?

Make coffee at home and buy a travel mug.

You could easily save $3 or $4 a day.

2. Do you only read a few articles from each daily newspaper or magazine you purchase?

Look up the free versions of these publications online and save $4 or $5 a day.

3. Do you buy fast food every day for lunch or to feed your family?

Feeding a family of four at McDonald’s costs at least $10 to $15 if you choose the most affordable menu items.

You could easily save this money by buying groceries and cooking meals in advance.

Try these tools to get an idea of where your money goes and to easily identify expenses that you can avoid:

1. Mint is a free app that tracks what you earn and spend.

This app organizes your expenses into different categories so you can get an idea of how much you spend on groceries, clothes, entertainment, and more.

2. BudgetSimple is another free tool that tracks your expenses.

This tool is especially useful because it automatically generates suggestions to show you where you could cut down on spending.

Establish a Budget

Once you’ve tracked your spending to see where your money goes, you can create a customized budget that works well for you.

The key to creating a budget that works for you is to find a method you like using. There are many online tools designed to create a budget that corresponds to your needs. These apps require you to enter your income and link your bank accounts to automatically track your expenses for you:

1. You Need A Budget, also known as YNAB, is one of the most popular budgeting apps.

This free tool organizes your expenses by categories, helps you put money aside, and generates a budget based on your current expenses.

Then You Need A Budget website reports that people using this tool started saving an additional $200 a month on average.

2. Pocket Expense and BudgetSimple are tools similar to YNAB.

The main features are the same but you might find that the interfaces of these tools are more convenient.

If you’re not a fan of tools that automatically create budgets for you, there are some apps you can use to manually allocate where your money goes.

This approach is inspired by the old practice of placing cash in different envelopes. GoodBudget and Mvelopes are two good online apps that make it easy to create a budget in this way. Budgeting is definitely worth it, and these 21st-century tools make budgeting easier than it has ever been.

Sticking to Your Budget

Establishing a budget is the easy part. Spending accordingly can be more difficult.

Following these three rules will help you stick to your budget and save $200 a month or more:

1. Assess how much you need to cover all your recurring expenses.

Put enough money aside as soon as you receive your paycheck.

An app like Mvelopes or other online tools can help you allocate these funds.

Your bank may even provide a tool in their online banking app.

2. The money that is left after you cover all your expenses is not for splurging!

Spend a reasonable amount on things you love because you worked hard and deserve a reward, but it’s important to make saving some of this money a priority.

3. Use Level Money or a similar app to keep your spending under control on a daily basis. This app shows you how much money you can spend over the month, week, or day.

Get into the habit of checking this app whenever you feel like buying something you don’t really need to decide whether or not you can afford to splurge.

Sticking to a budget requires discipline, but you can still live comfortably even while living frugally.

Follow these rules to ensure you pay important bills and avoid spending too much on impulse purchases. Establishing a budget that works for you and sticking to it could help you save $200 a month, or $2,400 a year!

Step 2: Don’t Let Financial Institutions Charge You For Their Services 

Avoiding Banking Fees

How much do you spend on banking fees?

Banking fees can seem trivial, but these expenses add up over time.

There is no need to pay for these fees when free options are available.

If your bank is currently charging a monthly fee for their services, find out why.

In most cases, banks will charge you a monthly fee only if your average balance is under a certain number if you don’t make enough transactions or don’t receive enough via direct deposit to qualify for a free account.

The average monthly cost of a checking account is $7 at a bank and $2 at a credit union.

Opting for a free alternative could help you save $84 or $24 a year.

If you cannot avoid a monthly fee at your bank, get a free checking account elsewhere. Some banks will even offer a signup bonus when you open a new account!

If you cannot find a free account that corresponds to your needs or would rather not open a new bank account, a good option is a service offered by American Express called Bluebird.

Bluebird gives you the possibility to receive direct deposits and use the money to pay bills, withdraw money from an ATM, or write checks without paying any fees.

Overdraft protection is the only service you should be paying for if your bank doesn’t offer free overdraft protection.

Did you know that the average American spends an average of $225 a year in overdraft fees?

This money could be easily saved by taking a few minutes to sign up for this service.

Avoiding Payment Processing Fees

How do you pay your utilities and other bills? Depending on the payment method you use, you might be wasting money on payment processing fees.

Even if these fees are only $2 or $3 for each transaction, this is money you could be saving. On a yearly basis, you could be paying around $100 a year in such fees. Follow these tips to avoid payment processing fees:

1. Use online banking to schedule automated payments directly from your bank account.

This way, you can avoid paying the fee most utility and insurance companies charge you when you pay with a card. Automated payments are also a good way to avoid paying late fees.

2. Always compare your payment options and ask about fees.

Scheduling automated payments from your bank might not be the best solution for all your bills.

For example, insurance companies often charge a monthly fee to process your payment regardless of how you pay your premiums.

Consider paying your insurance premiums in one lump sum on a yearly basis to avoid paying this fee.

Avoiding Credit Card Interest and Late Fees

Do you use credit cards for bills or daily expenses?

Take a look at your account to get an idea of how much you spend on interest and other fees. If you feel that your credit cards are costing you too much, contact the company and ask them to reduce your fees, or shop around for a better option.

Transferring your balance to a different card can be a good option if you qualify for a lower APR or for a card that doesn’t compound your interest on a daily basis.

It’s important to understand how interest is calculated on your credit card accounts. Most cards compound interest daily and use your average daily balance.

This means carrying a higher balance will result in higher fees.

You can easily avoid this by making a higher payment than usual if you make a large purchase with your credit card.

Use these strategies to reduce the amount of money you spend on credit card fees:

1. Always pay more than the minimum monthly payment.

Each payment goes towards the interest first, then towards the balance on the account. If you only make the minimum payment, your payment will cover the interest, but will not lower your balance by much.

Making larger payments will help you pay off your balance more quickly and eliminate having to pay as much interest.

The best method to avoid interest is to pay your entire balance each month. So whatever you charge in a month, pay it off that same month.

2. Schedule automated monthly payments to avoid late fees.

Most credit card providers also provide you with an online tool you can use to check your balance and make payments.

You could save roughly $350 a year by avoiding banking fees, overdraft fees, and payment processing fees!

Step 3: Become a Smart Shopper

The best approach to smart shopping depends on how you and your family live, how much time you can spend on shopping and cooking, and on what you enjoy.

Try different strategies to figure out what works for you and your family. Adopt these simple habits to save on groceries and other household expenses:

1. Use coupons and discounts to save on items you would usually buy.

You’ve probably seen couponing TV shows or websites where people save hundreds of dollars each week with coupons.

The truth is that this type of extreme couponing is incredibly time-consuming and tedious. Follow these tips to save money with coupons without any hard work:

The golden rule of couponing is to never purchase an item just because you have a coupon.

Rather than saving a few dollars or cents, you’re spending to buy an item you would otherwise not buy.

Subscribe to the newsletter, mailing list, or download the app of the grocery stores where you usually shop. Check these sources on a weekly basis to look for items on sale and clip coupons for items you usually buy.

Avoid spending hours looking for online coupons or going through hundreds of paper ads.

Download apps to automatically look for coupons instead.

Grocery IQ is an excellent choice if you use a grocery list since this app will automatically look for coupons for the items you intend to buy anyway.

You can also use The Coupons App to scan barcodes on products and look for coupons or to find all the deals offered at any nearby stores.

2. Plan your meals ahead of time and make grocery lists.

These simple habits will help you stick to a budget every time you go to the grocery store and could also help you adopt a healthier lifestyle.

Apps like Pepperplate, Ziplist, or Plan to Eat helps you find new recipes, save the ones you like, plan your meals for the entire week, and automatically create grocery lists for you. Use Supercook.com to find simple recipes based on the ingredients you have at home.

This could become your go-to solution whenever you’re about to take your family to a fast food restaurant because you’re low on groceries. If you’re short on time to cook during the week, set aside some time during the weekends to make large 
quantities of your family’s favorite foods and freeze meal-size portions.

This works great for chili, casseroles, and other dishes. You’ll have easy lunches and dinners to just heat and eat throughout the week. Eating out is fun! You don’t have to completely eliminate this expense.

Determine a reasonable budget for taking your family to their favorite restaurant once a week.

3. Shop at several locations.

Try different grocery stores to determine which one has the best prices or selection.

Find several alternatives for your regular household items.

Go to the grocery store once a week to buy items such as fresh produce, dairy products, meat, and nonperishable items. Look at the per-unit price or check the quantities or weight to determine which products are the best values.

Stock up on discounted items only if you will use them in your meal plans. Visit the dollar store once a month.

Stock up on dish soap, cleaning products, sponges, shampoo, soap, toothbrushes, toothpaste, glassware, school supplies, and wrapping paper.

You would normally pay between $2 and $4 for these different items at a grocery store, so going to a dollar store for some bulk shopping is worth it.

Shop online for household items and nonperishable items.

You will get access to a wider selection and have the option of buying large quantities at discounted prices.

Consider getting an Amazon Prime membership to get free shipping and lower prices on some household items.

Buy used items from online auctions, online consignment stores, or local thrift shops. This is a great way to save on clothes, toys, electronics, and décor items for your home.

You can even find used furniture on sites like Craigslist. Shopping for clothes at eBay, Goodwill, or online consignment stores could help you cut your clothing budget in half!

If you have children, this strategy could save you a lot of money. Plan in advance before making big purchases such as a new TV, computer, or video game console. This will give you time to put money aside and compare your options.

You might want to wait for Black Friday or Cyber Monday to get low prices on these items if you don’t want to buy them used.

Gas is another recurring expense.

Gas prices vary a lot and it’s difficult to determine the best time to gas up. Try using an app called GasBuddy to track and compare gas prices at different gas stations in your area.

The amount you can save by being a smart shopper really depends on your needs, how many people you’re shopping for, and how much time you can afford to spend on comparison shopping.

Step 4: Get Rid of Unnecessary Expenses and Spend More on Things That Matter

You could save a lot by eliminating some unnecessary expenses. Consider these examples:

1. Reduce your cell phone bill.

Try these tips:

Shop for a family plan if you need more than one line.

Cancel your contract and switch to a service that will bill you only for what you use. This could help you cut down your phone bill to $20 or $30 a month if you don’t use it a lot.

You may have a landline bundled with your internet service. Use this line, instead of your cell phone, whenever you’re at home.

Wait until you are home and can use your own Wifi network if you need to go online and don’t have unlimited data on your phone.

Shop around for an affordable Smartphone. Your own provider might not have the best price.

2. Cut down your cable bill.

There are more affordable options to watch TV. The downside is that you’ll get fewer channels or shows to choose from.

Buy an antenna to watch TV for free over VHF and UHF signals and try different online streaming services to determine if these could be a good alternative for you. Exploring alternatives is worth it since the average monthly cable bill is $64.

3. Save on your entertainment costs.

You can save a lot by taking your family for a bike ride or by organizing a football game in the backyard instead of taking them to the movies or the arcade.

There are plenty of free things to do that will help everyone get more exercise and have a great time!

4. Avoid anything that is individually packaged.

Buy food items in bulk and make your own snacks and to-go meals instead of stopping at a fast-food restaurant, gas station, or coffee shop.

5. Think twice about buying a name brand.

Spending more to get a name-brand product is worth it if the product meets high-quality standards and will last longer or work better. However, spending more to get name-brand items that are not any different from cheaper options is a waste of money.

On the other hand, there might be some things you are not spending enough on, which results in more expenses in the long-term.

Consider these examples:

1. Health insurance.

Purchasing more coverage could help you save in the long-term.

Raising your premiums to get a lower deductible and co-pay is worth it if your family visits the doctor a lot.

2. Car maintenance.

Repairs and preventative maintenance can go a long way towards lengthening the longevity of your vehicle.

Learn how to do an oil change and perform other simple maintenance and repair tasks to save money.

3. Home maintenance.

Investing in new window panes, better insulation panels, and newer appliances could lower what you spend on utilities.

If you’re renting, talk to your landlord about making a few improvements to help lower your bills.

4. Quality products.

Some products such as tools, razors, cookware, or furniture will last longer if you purchase slightly more expensive products from well-known brands.

5. Organization products.

Keeping your pantry and household supplies organized will prevent you from purchasing items you already have.

Spending money on items that will help you get rid of an expensive bad habit or that will help you track your finances can save you lots of money.

You could save $64 a month by ditching cable and at least $20 a month by looking for a more affordable phone service provider, which roughly translates to $1,000 a year!

Step 5: Trick Yourself Into Saving

All the tips you have read so far will help you reduce expenses.

However, you will not actually save money until you transfer it into a savings account. Saving is a lot easier if you make it a habit and set up automatic savings systems. Follow these tips to put money aside without any stress:

1. Try an app like Digit.

This tool automatically takes money from your bank account and puts it aside.

You choose the amount you would like to save each week.

This is perfect if you’re busy and don’t even want to think about putting money into a savings account.

2. Schedule automated transfers from your bank account to a savings account.

If you would rather not trust a tool like Digit with your information, you can always use your bank’s online platform to schedule an automated weekly

transfer to your savings account.

3. Identify your two or three most expensive habits and get rid of them.

This could be smoking, going to Starbucks, buying some snacks, or spending money to get extra lives in Candy Crush Saga.

Put the money you would normally spend on these things into a savings account.

4. Make saving money a game!

Set some weekly or monthly goals and reward yourself when you reach these goals. Using Digit or another system to put $5 aside every week means you would end up with $260 in a savings account by the end of the year!

As we mentioned earlier, it can be helpful to have a specific goal in mind when you’re setting up a plan to save money fast. Sometimes this goal can be as big as getting married or buying a house; other times, it can be smaller in scope.

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What Does Financing a Car Mean and How Does It Work

Financing a car means taking out a car loan that you repay over time or it means you are taking out a loan from a financial institution or vehicle dealership that you pay back at a given interest rate over time. When you take out a car loan, you agree to pay back the amount you borrowed, plus interest and any fees, within a set period of time. Shopping around and comparing loan offers could save you significant money in interest and fees.

Sometimes it seems like buying a car is a Catch-22 situation: You need money to buy a car but you need a car to get to work so you can earn money to buy one.

That’s why financing a car taking out a loan to pay for a car is common. You can think of a car loan as its own separate purchase it comes with a cost, which you pay through any interest and fees the lender may charge.

In this article, we’ll define what financing a car means, how it works, the smartest way to go about it, and whether vehicle financing is a good idea. The options for getting financing for a car along with any requirements will also be discussed. We’ve researched and compiled the top auto loan companies so you can compare vehicle financing options should you decide to get one.

Let’s take a look at how car financing works, how your credit can affect your loan terms and what to think about when trying to decide if financing a car is a good idea for you.

How Does Financing a Car Work?

“Financing a car” involves buying a vehicle with a loan rather than paying the full cost upfront. Over an agreed amount of time, you pay back the principal or the value of the car through monthly installments along with any fees and interest. Together the interest and fees you pay when financing a car make up the finance charge, which is the cost of taking out the loan.

The amount you pay monthly is determined by the value of your vehicle minus the money you put down, the given APR, and the loan term. Your APR makes up the interest payments and fees and is the main contributing factor to the price of your loan. Primarily your credit score influences the interest rate you get but other factors such as the age of the vehicle also help determine this.

If you plan to finance a car, you’ll need to shop and apply for a car loan. If you’re approved, you’ll make monthly payments until the loan is paid off. Each payment you make will be split into the following two parts: The principal payment, which goes toward paying back your loan balance
The interest payment, which pays interest due

Part of your payment may also go toward certain loan fees, like late payment fees.

Once you repay the loan in full, your lender will usually send a lien release document (depending on your state) to the state transportation agency. The car’s title will then be updated and transferred to you.

How Long Can You Finance a Car?

Terms for financing a car range from 12-94 months depending on whether you are financing a new or used vehicle. However, in most cases, the terms for most purchase loans for vehicles are around 72 months. It is also important to note that some lenders may not offer the longest and shortest-term options in this range.

Financing a car could be a way to take advantage of dealership incentives and car manufacturer specials, such as 0% financing or rebates. But keep in mind that you’ll typically need to get a car loan through the automaker’s finance company to qualify for these offers.

When you’re financing a car you can trade it in at any time to a dealer, but you still have to pay off the balance of the loan. Usually, the amount left over is covered by the trade-in value of the vehicle, but this depends on the age of the car and its condition among other factors.

If you need a set of wheels and don’t have the cash in hand to pay for it, financing may be your only option. Be sure to pay attention to how much you finance versus the value of the car you’re buying. If you don’t make a down payment and finance the entire cost of the car, you could find yourself owing more than your car is worth within a year or two.

Options for Financing a Car

Getting financing for a car is usually straightforward and can be done through various vehicle dealerships, online lenders, credit unions, and banks.

Each of these options fits into two different categories which include:Dealership Finance: Financing through a dealership involves signing a contract and getting a loan through their network of loan providers. It is often considered the easiest option and can save you money through their manufacturer car-buying programs. However, these often come with varying credit requirements and terms so you may be unable to take advantage.

Direct Lenders: This form of vehicle financing is done directly through banks, credit unions, and online lenders. Getting offers directly from loan providers allows you to compare offer terms and get preapproved. It can also give you leverage to negotiate when looking for a car at dealerships.What

Credit Score do you Need to Finance a Car?

There is no specific credit score needed to qualify for financing a vehicle, but some lenders have minimum requirements. While some loan providers may not have credit score requirements some may instead have income minimums. Each loan company has different ways of calculating whether you should get a loan and factors like income, credit, and vehicle type may be weighed differently in the process.

It’s generally a good idea to take some time to build your credit before applying for car financing — if you’re able to wait. If your credit scores are low, you may receive fewer offers than someone with good credit. And if you’re approved for a loan, you’ll likely get a higher interest rate than someone with a better credit score.

People with credit scores over 780 paid an average interest rate of 4.01% on their new-car loans, while those with credit scores of 500 or less paid an average rate of 14.3%, according to Experian’s report. This could translate to a major difference in how much interest you pay over the life of your loan.

Let’s say you got a five-year $20,000 car loan. Here’s how your credit could affect how much you pay in interest.

You’d pay more than $8,000 in interest on your loan with the 14.3% interest rate. That means your $20,000 vehicle would actually cost you more than $28,000.

Get Together The Required Paperwork

When financing a car there are four main requirements:

Proof of Identity: You will need to verify your identity with a government-issued ID which can include your passport, driver’s license, and birth certificate.

Proof of Income: In order to ensure you can make payments on time, documents like recent pay stubs, current bank statements, a recent W-2 form, or other statements. If you are self-employed, the last two years of your tax returns can also be used for proof of income.

Proof of Insurance: Like all auto loans or vehicle financing ventures you will need proof of the minimum required car insurance in your state. Getting this is typically easy, and you can call your car insurance company to get a binder to show you have the proper coverage.

Proof of Residence: To show proof of residence, you may provide your driver’s license, utility bill statements, insurance bills, mortgage or lease statements, and bank or credit card statements.

In some situations, you may need additional information such as your social security number or vehicle purchase documents in order to finance a car. If you are financing a used car you’ll need the original title document before you can move forward with an auto loan.

Get Rates From Auto Lenders

Lenders may not offer the same APRs and loan terms when you’re financing a car, so compare rates from auto loan providers. There are plenty of vehicle financing options, from dealerships and banks to companies that specialize in auto loans.

When getting quotes from auto loan providers you must know the differences between being prequalified and preapproved when financing a car. Prequalification offers an estimate of your rate, but because potential lenders only do a soft credit check, the rate could change after you apply for a loan. Preapproval comes after a hard credit check and almost guarantees financing at the terms outlined in the preapproval offer.

Preapproval can lead to a slight decrease in your credit score, but it allows a serious shopper to calculate the monthly car payments for the life of the loan. FICO counts all hard credit checks relating to your car loan as a single inquiry for up to 45 days, so rate shopping won’t impact your credit more than once.

Pick The Best Auto Lender For You

Everyone has different needs when it comes to financing a car. While some may avoid auto lenders with higher interest rates, others would be satisfied with any provider that’s willing to finance their vehicle.

When choosing an auto lender, keep the following factors in mind:APR: The lower the APR listed in your contract’s disclosures, the less you’ll pay to borrow money.

Term length: Your loan term can vary considerably in length. Having a long-term loan typically means you’ll pay less per month but more over the full amount of time.

Down payment: Making a significant down payment can save you money on interest when financing a car. The minimum down payment–if any–is determined by each auto lender. You may be able to use the trade-in value of your old vehicle toward the down payment on a new vehicle.

Tips for Financing a Car

Below are some tips to keep in mind if you decide to finance a car through a purchase loan:Get preapproved: Getting preapproval for an auto loan gives you leverage and a better understanding of what you can afford. What you are offered helps you find out what to rates and terms to expect from a dealer and gives you perspective on what is a good deal for your financial situation.

Put down a sizable down payment: Conventional wisdom suggests that putting down at least 20% of the vehicle’s value is a good idea. The higher your down payment is, the lower your monthly payments and interest rates will be.

Don’t buy vehicle add-ons immediately: Dealerships will try to sell you a number of things including gap insurance and extended warranties at extremely high prices. While these can be good investments, there is no need to buy them as soon as you get a loan and it is better to take your time and compare options.

Get a shorter loan term: If you can afford it, getting financing a car with a shorter loan term length allows you to have lower rates and pay less in the long term.

Finance a car you can afford: Generally it is recommended by financial experts to not pay more than 10-15% of your take home pay on car payments. Also, considering purchasing a used car can save you a lot of money as well.

Just as you might shop around for a car, you’ll want to shop around for a car loan. The interest rate and loan term you’re offered may vary by lender — shopping around could help you find the best rate and terms for your budget.

Applying for prequalification with different lenders and getting prequalified can help you see estimated loan rates and terms without a hard inquiry appearing on your credit reports. But remember that getting prequalified isn’t a guarantee of loan approval — your loan terms may change after you submit your loan application and the lender runs a hard credit inquiry.

As you consider each loan offer, don’t just focus on your monthly payment. Look at the total cost of financing, too. For example, it may be tempting to choose a longer loan term to lower your car payments, but you could end up paying much more in interest over the life of the loan. Finding the best financing for your needs can take some strategy and time. But in return, you could save hundreds or even thousands of dollars.

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