How To Build Your Credit Score

On June 29, 2017

Personal finance is a broad topic that can factor in an array of life aspects. Educating yourself on the importance of a savings account, how to write checks, and managing a budget are just the basics. Understanding your credit is another level. If you’re looking to finance anything in the near future such as a car or a house, your credit score will have an effect on your financing terms. For anyone looking to build their credit score, here are a few ways you can.

Your Credit History

Taking out a loan is borrowed money, and the lender you receive the loan from tracks how you pay that money back. How much money you’ve taken out and how well you manage your payments both go into your credit history. Employers, landlords, and other potential lenders will want to see a credit history before they approve your loan.

No Credit History?

If you’ve never taken out a loan before, you have no credit history. Credit history is a report of you making payments on borrowed money. With or without credit history, anyone can build their credit and achieve financial stability.

Get a Credit Card

A bank credit card with a small limit is the best way to gain and build your credit, especially if it’s from scratch. As a guideline, only spend up to 30% of your approved limit. Be sure to make your payments on time to avoid added charges. Check with your bank on the interest rates so that you can ensure your personal finance and credit card is under control.

Make Payments on Time

With any credit you take, whether that be a student loan or simply your credit card, you absolutely never want to miss a payment. Making payments will help or hinder your credit history. If you miss a payment, your credit may take a hit.

Have Variety of Credits

A variety of credits can help your credit score. You can have a mortgage, student loans, personal loans, car loans and other credit cards to give your credit a boost.

Store specific credit cards are only usable at that exact store. For example, Old Navy has a credit card approved customers can use and in return they’re offered rewards. On top of a store credit card, you can have a personal bank credit card. The most important thing to remember is that if you don’t pay off the balance each month, you will be charged interest.

Credit can seem daunting to those who aren’t informed. Follow the tips and tricks to understanding how credit works and boost your credit score in no time.

The Future of Finance and Technology

By Sarang Ahuja

On June 29, 2017

In Sarang Ahuja

In 1998, Elon Musk founded PayPal, a web service that would be the beginning to extending personal banking beyond brick and mortar banks. The online world of finance was enhanced through technology, allowing money transfers to occur without stepping foot inside a bank. Today, technology is still enhancing the way people do their banking. Where is personal finance headed in the future?

Today, anyone with a PayPal account can send money to others, pay or request invoices, and even set up a merchant account for businesses. When you’re online shopping, you have the option to pay with the click of a button through your PayPal account. Other apps such as Google Wallet, Apple Pay, Venmo and more, allow you to control digital payments with ease through your smart phone.

Smart phones, smart watches, and online banking are evolving the world of finance at a fast pace. Although nothing is certain, can we predict where the future of financing resides?

Trending Apps

Square is an app that’s already changed the world of small business. Paying with cash is no longer necessary with debit cards, credit cards and now, chipped cards. Square allows customers to pay without cash if the business doesn’t have a card reading register. Square makes payments possible in a world without cash.

It’s a fact that apps make our lives easier. There’s no question that as time passes, apps will not only continue to ease one’s personal financing, but enhance with even more options in the future.

More Educational Financing

Control and transparency are the two things people want most when it comes to how they handle their finances. Understanding finances and investments is key to financial success. Educational programs for financing could become more popular. People want to know their options, and how to make the best decisions for themselves. This educational process will create loyalty between a bank and its customers.

Programs are popping up not only for the public, but for college students as well. Personal finance courses are becoming more necessary in today’s society.

Consumer Experience

Have you ever noticed that when you search for a product, later that day Facebook shows you an ad for that same thing? That’s because when you shop online, third parties follow your every move. Welcome to the world of big data. Big data analyzes consumers and attempts to provide the best experience possible. Much like big data and online shopping, it’s likely that the consumer experience in terms of personal finance will grow in priority for bankers. Conventional data will become actionable data to ensure the satisfaction of consumers with their personal banking experience.

Finance has evolved throughout history from the time coins were first used, all the way to plastic cards with chips being a prioritized way of making purchases. Although no one can accurately say what finance will look like in decades, or even centuries to come, it’s highly likely that these predicted trends will become more prominent in the next few years.

What I Did During My Summer Vacation—Sarang Ahuja

What I Did Over My Summer Vacation (Wasn’t An Internship)

By Sarang Ahuja

On May 16, 2017

In business, Sarang Ahuja

If you’re a college student, then a paid internship is the holy grail of a summer vacation—a way to make money while also advancing career prospects. It’s a rite of passage for many students, and it can be devastating to see others land their ideal internships while you’re stuck with nothing to do over the summer.

Worry no more; if you’re a college student looking to advance your career over the summer, there are plenty of other avenues available to you that are guaranteed not to require getting other people coffee.

Find Odd Jobs

I don’t just mean mowing lawns or walking dogs (though that is an option). Look for temporary work in your area geared toward your interests. Even if it’s for a nonprofit group, doing work for their benefit can give you something to boost your resume. It’s also a great way to learn how the working environment functions, something that can be hard to gauge through college classes. Take the time to research specialty jobs that may be relevant to you; for instance, if you’re a writer, local papers may need assistance covering stories.

It’s also worth considering day long shadowing opportunities to get another good look at the workplace environment in your industry.

Volunteer

Speaking of nonprofits, pursuing volunteering experiences can be valuable for a resume even if it isn’t necessarily in your area of expertise. Not only that, but there are often leadership opportunities available through nonprofits. Consider spearheading a project and giving yourself something to be proud of.

Complete Summer Classes

Ease the burden of your college career by taking summer classes! Even if your college is far away, consider looking into knocking out a few requirements online or at your local community college. If your schedule is a bit hectic, it can cut down on your stress and even save money in many cases. For that matter, you can even use your extra time to complete an internship later on.

Research

Many colleges and universities offer undergraduate research opportunities over summers. For an individual considering grad school, research is a big standout come application season. Even outside of this, research offers an in-depth look at the working of industries even beyond math and science. Consider asking about grants that your school offers to help support you in these endeavors.

Start a Business

The growth of technology has allowed for the spread of ideas at an unprecedented rate. If you see an opportunity in a field you’re studying, or even just have a solid grasp of a particular skill, consider becoming an entrepreneur. From writing to design to building websites, there are many skills that you can hawk to those interested, all while earning money and learning.

Study Abroad

Not every life experience has to relate to work. By studying abroad for a summer, you demonstrate to employers your willingness to venture outside of your comfort zone and try new experiences. Plus, it gives you more opportunities to learn and work toward that sweet, sweet college credit. Consider some of the places you’ve always wanted to see, and form experiences that you’ll have for the rest of your life!

Secret to Negotiating a Raise—Sarang Ahuja

The Secret to Negotiating a Raise

By Sarang Ahuja

On May 16, 2017

In business, Sarang Ahuja

Talking about compensation with your boss can be a hard subject to broach. Because of this, many don’t know how to properly negotiate when it comes to talking about money, especially when the prospect of a raise is on the table. As yearly reviews come and go, many employees will consider entering into a conversation with their bosses about whether or not they deserve a raise, but most will not receive the compensation that they think they deserve.

The first step to working toward a raise is being realistic about your abilities and your contributions to the company. Look back at your recent efforts and be honest with yourself about what you deserve based on that. If you want a solid raise, you’ll need a good case for it. On average, slightly under 3% of company revenue goes toward raises, but the top percentage of employees are allocated more funds for raises than anyone else.

Nobody knows you better than you, so take the time to compile a list of your accomplishments. Have you gone above and beyond to help out a coworker, or stayed late to assist with a problem? If you’ve taken on recent responsibilities, be sure to highlight those as well. Use any quantitative data that you can find; solid figures of how a company has benefitted with your work are indisputable evidence of your prowess. Don’t wait until the opportunity for a raise comes up; start as soon as possible.

Think of this compilation as a portfolio, and include any documents that you think might be beneficial. Save emails from people that have praised your performance, and include copies of any certificates or degrees that you may have earned in that time. If you have projects that you can include, integrate them in as well. The more evidence you have on your side, the better.

Another way to prepare for a discussion about a raise is finding evidence of what people in your position with your tenure make. If you know exactly what you are theoretically worth, it gives you a starting point for negotiations. However, you should also account for the environment in which you live; if you’re from an area with a lower cost of living, the percentage that your income increases might be lower than in a larger city. Company size is also a determining factor in how much you can expect to make.

Once you’ve gathered the proper rationale for a raise, it then comes time to speak with your boss. The best, and most expected, time to ask is during a year review. If you ask outside of this period, acknowledge that this is an unusual case and that you’re asking for a specific reason tied to your recent actions.

When negotiating, be clear and factual. Tell your boss that you’re looking for a raise in compensation, and follow it up by hitting a couple of the broader points that you’ve come up with before delving into detail. Never make the subject of a raise personal; by stating that you need more capital for a wedding, baby, or something similar, you lose some of the credibility that you’ve built up. Instead, focus on what you’ve done for the company and why that warrants a change.

If your boss turns down your request for a raise, turn it into an opportunity. Be honest with them and ask about what you’d need to do to secure the raise that you’re looking for. It can also make a good impression if you ask about the possibility of taking on more responsibilities in the future. Regardless, keep your responses measured and don’t burn any bridges. In the event of repeated rejection despite outstanding job performance, it may be time to consider other employment options.

No matter what you do, it’s still a tough subject to approach and negotiate. But, as with anything else in business, good preparation and presentation of facts is the best way to sway a potentially difficult audience to your cause.

Talking to Your Kids About Finance

By Sarang Ahuja

On May 4, 2017

In business, Sarang Ahuja

It can be tough to broach the subject of money with kids. After all, they likely haven’t had a real job or had to worry about their own finances early on in their lives. For children, adults appear to have their finances figured out, with magical credit cards that allow them to pay for everything and no knowledge of what goes on behind the scenes. Talks about the value of saving money are generally the baseline measure taken to help kids understand finance, but even then, the idea of spending and saving money may seem a world away to them.

I’d like to share a few of the ways that you can talk to your kids about money in a way that can prepare them for the future.

Explain how your finances work.

Children are renowned for their curiosity, and when speaking with them, it helps to treat them like people and not talk down to them. That said, it can be difficult to explain finances in terms that they would readily understand. But some of the basics—how a credit card must be paid back, how monthly expenses can define a budget—can be crucial in giving your children a sense of the effort that goes into managing money.

With the amount of automation that comes with managing finances, it can seem like an effortless process to an outsider, something that anybody can tell you is certainly not true. Dissect the accounts, payments, and taxes that go into every transaction with your children. You’ll likely find that they’ll have plenty of questions of their own.

Teach Shopping Habits.

Make your kids into smart shoppers by showing them the ways that you compare goods when shopping. Note to them the size and price, and experiment with different brands to spark a discussion about whether or not paying extra for a certain brand is worth it.

Work On Saving Goals.

Saving is one of the basic tenets of financial management, but to what end? Work with your children and encourage them to set saving goals, even if they’re relatively minor. Is there a new game that they want? Talk to them about the price and how long it will take to save up for it. If they get a regular allowance, help put in perspective how far their money goes. Start a savings account for your child, and teach them the value of setting funds aside for the future. Talk to them about setting aside things like birthday and holiday money in this account.

Set a Budget.

This one is more geared at older kids coming up on their teens, but breaking down monthly expenses and comparing them to income is a valuable lesson. As a child, it can be easy to forget about the transactions that keep an individual afloat, from rent to food to car payments. Create a somewhat simplified budget with them, giving them a better sense of how you allocate your finances each month, and give them the chance to plan one of their own.

Invest Wisely.

Once you’ve covered a lot of the basics, talk of stocks and investment can help kids understand the value inherent in businesses. Make it a family activity; have every individual track a stock and discuss the highs and lows that it goes through over the course of several weeks.

Teach Giving.

With all of the pressure to accumulate enough cash to balance a budget, it is still important to teach your children that, at the end of the day, there is still always someone less fortunate that is worth giving back to. Encourage them to research different charities, and perhaps even foster their own fundraising efforts for giving back to the cause of their choice.

After all, it’s not just about encouraging them to be better spenders, but encouraging them to be better people.

Tips and Tricks to Make Extra Cash

By Sarang Ahuja

On May 4, 2017

In business

Saving, despite its plentiful benefits, can sometimes only do so much. In every individual’s life, there is a point when they decide that it’s about time that they made more money. Maybe it was the first time they mowed neighborhood lawns, or took a paper route, or even fought for a raise. There’s a lesson to be learned here: there are always opportunities to make more money with a little creativity and determination. I already talked about the gig economy and some of the best side job options available, so if you’d like information on that, read this article.

However, there are other ways to provide yourself with an alternative income stream or even gain the skills necessary to secure a raise. I’d like to discuss some of them now.

Get a certificate.

You’d be surprised at the number of skills that have some kind of certification associated with them, that can be earned without too much of a time commitment online. In some cases, you may be able to just take an exam to prove your competency and shore up your resume.

There’s a certain level of research associated with doing this. For instance, you’ll want to make sure that you’re earning your certification from a credible website. Some can actually cost quite a bit of money, so you’ll have to weigh the cost with the impact that it’ll make. Still, if you earn enough money as a result, you can make your investment back and reach your career goals in the process.

Grow Your Portfolio.

The best kind of income is the kind you don’t have to put too much time into. Building a stock portfolio is a great way to generate passive income over time. The best investment portfolios are focused on long-term growth, and with a little research and monitoring, you can build a supplemental source of income. Lending firms are also an option if you’re particularly short on time, and are a good way to dip a toe into the waters of investment.

Gain a Following.

Starting a blog is an unlikely way to generate income! The first step is positioning yourself as an expert on a particular niche (like finance!). It can be tough to generate a regular readership, but you’ll never need a stringent schedule or anything outside of a computer and internet connection.

Once you’ve started providing something of value, you can expand to other, smaller services and find a way to offer more to your audience. This is a flexible approach, allowing you to commit as much or as little as you want.

Learn Niche Skills.

Every industry has its quirks, and in yours, it always pays to learn the little things. Consider the niches in your field, and consider becoming an expert in one of them, a font of knowledge that others around you can depend on.

Certifications can come in handy here; it’s never too late to learn, and you’re not starting from scratch. Even in a workplace, taking on extra responsibility in a specific area that is needed can lead to further raises and opportunities.

Financial Recovery—Acknowledging Your Money Missteps

By Sarang Ahuja

On March 24, 2017

In Sarang Ahuja

When it comes to personal finance, it can be easy to continue spending on something that offers you little to no value with a disproportionate level of attachment due to resources you’ve already expended. This is known as the sunk cost fallacy and can cause individuals to act against their best interests and spend more than necessary. When this happens, the best course of action is to ignore the amount already spent and move along, even if this is difficult. Similarly, if you’re caught up in another bad financial habit, the solution is always to acknowledge the issues with your behavior and adjust accordingly. With that in mind, here are a few financial mistakes that are easy to make, but also easy to recognize and fix.

Not planning for a major life change

When something major occurs in your life, you should attempt to anticipate and deal with it as soon as possible. Changing jobs and careers is perhaps the most jarring financial change to make, but the expenses and time associated with major events such as weddings and the birth of a new child can tax you more than you’d expect.

Take advantage of the time you have before the event occurs. When it comes jobs, don’t quit until you’re absolutely certain you’ll be able to support yourself between jobs. Setting up a new job is half the battle, but the other half can often involve pursuing other sources of income that can support you in the interim.

Not tracking online payments

When it comes to online payments, never assume that payments are being made automatically. Even with autopay on, make a list of websites that will be charging you and find time to check them after every payment is made. It can help save you from unexpected late fees and save you the hassle of having to call companies to talk about your payment.

And, as previously stated, never hesitate to let go of a recurring payment if you feel you are no longer gaining value from it.

Not having a budget

Building a budget may seem like a daunting prospect, but there are tried and true rules that can help you easily plan out where your money goes every month. One of the most prominent is the 50/20/30 rule, which states that you should allocate 50% of your monthly funds to necessities, 20% to retirement, savings, and debt payment, and 30% for lifestyle expenses, which involve everything else. You’ll need a way to track this budget, and some online services make it easy, but much of this can be done by writing down relevant information.

Not building additional sources of revenue

Sometimes, time limitations make this difficult, but securing or setting up alternate streams of income can give you more breathing room month to month. This can involve taking on freelance projects, securing a part time job, or even selling old items that you no longer need. Be flexible, and ensure that you have the time to properly dedicate to side projects.

Not having long term goals

Things like retirement can seem like ages away, but knowing the eventual outcomes you are trying to achieve go a long way toward your planning tactics. For that matter, it’s not enough to simply have a goal; you need to know the steps that you want to take to reach that goal, and do the proper research and preparation to ensure that you’ll be able to act on it when the time comes. This can involve managing your debt, creating an emergency fund, and putting serious thought into where you allocate your savings.

A Little Something on the Side: Getting Started with a Side Job

By Sarang Ahuja

On March 24, 2017

In Sarang Ahuja

The dynamic of labor in the United States has changed over the past decade. The long-held institution of the 9-5 job is crumbling in the face of a difficult job market and the increasing interconnectedness of technology. Because of this, individuals are opting to take on smaller part time jobs, sometimes to supplement an existing source of income, and sometimes because of difficulty in securing full time employment. Either way, working a side job can be a valuable asset and resume booster, providing the individual with an alternate cash flow that may not be as consistent or time consuming as a 9-5.

So, if you’re an individual that needs some extra cash, regardless of your reasons for doing so, there are a multitude of avenues you can take. I’d like to discuss some of the options available on the part-time job market.

Driving

Uber and Lyft have effectively disrupted the public transportation industry with crowdsourced drivers and a easy-to-use apps. Known in the industry as rideshare apps, an increasing number of people are becoming Uber and Lyft drivers to earn money on nights and weekends. Though becoming a rideshare driver is not as intensive as becoming a certified taxi driver, there are certain barriers to entry that applicants need to abide by.

Drivers need to submit to a background check in addition to possessing a valid driver’s license, a smartphone, and a car with four exterior doors and five seatbelts. Additionally, some cities may not allow rideshare services to operate, so be sure to know if your area can participate! Still, on a busy weekend night, rideshare drivers can accumulate quite the haul.

Babysitting

Despite being one of the stereotypical jobs for teenagers, a good caregiver can alleviate pressure from parents and make a positive impact on a child’s life. Previously relegated to word of mouth, technology has also made it easier to find babysitting and care gigs. Care.com is one example of a website looking to match babysitters with families in need, and payment is easy to receive through the site.

Depending on when you’re available, you can expect to make anywhere from $12 to $25 an hour babysitting. The high end of the scale is generally seen among night sitters, who assist tired parents with children, particularly babies and newborns.

Writing

Writing freelance blogs and articles has a huge market on the Internet. There are plenty out there if you go looking—but be warned, the pay can often be low. Research is important when writing online; you’ll want to know the regulations of the sites that you’re pitching to, as well as having a solid understanding of the topics that you’re writing about.

Still, nothing beats the flexibility of writing for an online outlet and working wherever you’d like! Find a site that fits your schedule, interests, and needs and have a great time producing quality content.

Design

While it requires a bit of a background to do well, with a bit of artistic know-how, you can create beautiful graphics or design for the web. For doing this, it helps to have a collection of your previous work somewhere on the web; bonus points if you can make your own online portfolio from scratch.

Upwork is an online resource for the errant designer, offering potential leads and jobs to community members. Plus, if you start to gain momentum, the amount of money you can make will increase over time.

Spring Cleaning Your Wallet

By Sarang Ahuja

On February 16, 2017

In business, Sarang Ahuja

Now that tax season is here and the hustle and bustle from the holidays has finally settled down, it’s time to get cleaning, your wallet that is. Now is the perfect time to come up with new financial goals while planning out your financial expenditures for the rest of the year. Tax season is a great motivator to getting your finances on track and looking forward to springtime. Here are the some ways to clean up your financial wallet this season!

Pay down your debt

With tax season finally here, now is the best time to pay off as much of your debt as possible. Why? Because your tax return will give you the highest cash value that you own. Now, remember to do this the smart way. If you only got $500 back in taxes, but have $2000 in credit card debt, it may be a better idea to split those payments up to help contribute to a higher monthly payment. But if your tax return is say $3000, then you have enough to pay off your debt and treat yourself! It’s also a good idea to split up your monthly payments to an even amount until you can pay it off in full. This will show creditors that you are able to pay your monthly bills at a consistent rate.

Plan out vacations or trips

Now is the best time to plan out any family vacations or yearly trips. For one, you have more time to do so now as it’s still snowing and cold outside. Once spring time hits you’ll want to spend as much time outside as possible, without the worry of planning your yearly travel plans. Now is also a good time to plan things out because again, tax season is here so you may have a little extra boost in cash to contribute to your vacation funds.

Consider your credit cards

With spring time comes new promotions and rate options available from different financial lenders. For example, there may be a discount on personal or student loans. Many companies also offer great credit card offers with 0% interest or low fees on balance transfers. This is the time to sit down and take a look at your debt to see if there’s anyway you can cut down your monthly payments. Making a phone call to your lender provider can actually be the trick to lowering your rates. You may also consider opening a new credit card or transfer your balances for a lower rate. Whatever you decide to go with, make sure you do your research and talk to a provider before making any important decisions on your finances.

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Tax Season Tips

By Sarang Ahuja

On February 9, 2017

In business, Sarang Ahuja, Uncategorized

With tax season here, hopefully you’re not sporadically running around looking for your tax returns, receipts, and other important documents. Hopefully, you have also decided how you will be filing your taxes this year. But if not, have no fear! You still have two months left to file your taxes and most people haven’t even started yet. By following these tips you’ll be able to get organized and ready to file your state, local and federal taxes, but also take these tips to help you become organized for the rest of this year so that you have a smooth tax season next year.

Receipts

One of the most important things to do during tax season, (which sadly most people forget to do) is to save and organize your receipts. The reason for this is because if and when you get audited you have to have proof that you made that purchase (since you are filing it for a return). Many people questions if they should really be saving all of their receipts, however saving all of your receipts will give you an accurate estimate on how much money you spend on categories such as food, entertainment, shopping, etc. Saving your receipts will also allow you to become more organized and when tax season comes around, you’ll know exactly what you can and cannot claim.

Documents

As you already know, you’ll need some important documents to file your taxes. It is your employer’s responsibility to send out your w-2 or 1099 form. (If you are self employed, you should have a 1040 or 1099 form). It’s important not to lose these forms, however, some payroll and employer services have these forms on file. You will also need identification and your social security number. Along with these, you will need to bring along any documents or forms that were received from any stocks, investments or bank accounts that you will receive. Be sure to stay organized and keep everything together.

DIY or HIRE?

Another step you’ll need to consider is how do you want to file your taxes. It may be easier to hire someone, but it could also be costly. If you make over $200,000 a year, it is recommended that you hire an accountant to do your taxes for you as they will ensure that the least amount of mistakes are made. If you didn’t make much money, are not a homeowner or a business owner, and can’t claim anyone but yourself, filing your taxes via DIY may be the way to go. For one, you will usually find out how much your return will be right away. You can also do these at home with the click of a button so it saves you time and money. However, you do take the risk of making a mistake. Again, it’s always best if you can have professional advice to help you decide which way is best for you to file.

Sarang Ahuja | Finance

Leader, Financial Expert, Game Changer