Sarang Ahuja | Finance

Leader, Financial Expert, Game Changer

Tag: personal savings

What I Did During My Summer Vacation—Sarang Ahuja

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

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!

Tips and Tricks to make extra cash—Sarang Ahuja

Tips and Tricks to Make Extra Cash

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 (1)

Financial Recovery—Acknowledging Your Money Missteps

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.

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Achieving Financial Success This Year

As the New Year is finally here, many are taking on New Year’s resolutions. However, come a week after new years, followed by months of setting your goals aside, we end up in the same position as last year, with our goals being dusted away and forgotten The new year has always been known for starting a new chapter in our lives, therefore it’s a great time to write down a list of goals to commit to. Here are five ways to actually reach and commit to your financial goals.

Commit to the Envelope Method

Let’s go back to a time before online banking and smart technology. One of the most successful savings methods used was the envelope method. Today, this method can be applied on your smartphone or tablet, or the old fashioned way. The concept is to create different envelopes for your spending habits so that you don’t go over your spending budget. This is a successful method as you are able to see how much money you have (or don’t have) to spend. It works great with paper envelopes, or you can organize your bank account through various online envelopes.  Creating this habit will allow you to stay committed to your goals.

 

Cook for 30 days straight

You hear me right. January is a great time to save money. First of all, who wants to go out in the middle of winter? Secondly, what better time to detox all the sugary baked sweets and holiday treats from the holiday than January? Begin by establishing a meal plan for 30 days straight, then head to the grocery store, and buy only the items you’ll need for your meals/ snacks. If you typically eat out, this will detox your mind and body and allow you to save money and make healthy meal choices. After 30 days, you won’t have the urge to go out to eat every day, as you’ve spent time learning how to cook and see how much money you’ve saved.

 

Make coffee at home

Cooking at home for 30 days straight, includes making coffee at home. The average cup of coffee costs about $2.70. This means an average of $18.90 per week or $907.20 per year. That’s enough to buy you a weekend getaway. Investing in a nice coffee pot and large, quality coffee mug will still save you money throughout the year just buy discontinuing those coffee runs.

 

Focus on quantity, not quality

The idea here is that less is more.The higher quality clothing, household products or items you buy, the the longer it will last, and the less amount of money you’ll spend fixing these items or spending money on replacements. This is a good thing to keep in mind when buying clothing or furniture especially. Once you purchase high quality products, you won’t have the need to buy more until you absolutely need it, hence, saving you money.

 

Watch out for the Five Factors that are impacting your Savings

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When it comes to your finances, it is imperative that you be more strategic with your spending. The truth of the matter is that financial freedom doesn’t come easy. Just because you have large expenses does not mean you cannot save a good portion of your salary for your future. By learning your own particular spending habits, you will be able to accumulate the necessary wealth for a long and fruitful future.

If you are looking for improving your personal financial health, start off by evaluating your own spending habits. Evaluating your expenses with an open minded view will help clarify what is holding you back from financial success. Below, I have highlighted five particular spending habits that we have all encountered over time. If you are looking to buy a house or plan a trip to Madrid, it is vital that you start controlling your spending today.

The Real Cost of Happy Hours

Social happy hours may seem harmless. But in the grand scheme of things, these particular outings do add up. To help you take control of your financial spending, make sure you are aware of the overall cost this habit can have on a monthly basis. Outings such as lunch with coworkers or happy hours with friends can be incredibly expensive. To help prevent this, try and limit yourself from going out throughout the week. On average, people spend about $20 dollars a day on these particular social events. That comes out to $400 dollars a month, money that could be used to pay off your bills or to add into your retirement account. Once you understand the extreme ramifications of your spending, you will be more than likely to save for your future.

Stop Dining Out!

Similar to happy hour, dining out and expensive hobbies can take a toll on your savings. Let’s start off with dining out. I mean, do not get me wrong, who doesn’t love going out to dinner with your significant other and your friends. The only problem is that those nights are incredibly costly. Usually, restaurants will charge on average three times their food cost on what you are actually served. One option that can help resist the urge is by staying in and cooking instead. If you can cut back on dining out, this can absolutely impact the amount of money you can save yourself each and every month

The Membership Fees

Unlike college, group activities are separate expenses in your life. Take for example signing up for a membership at a wine of the month club or a private resort club. These dues and subscriptions can eat away at your hard earned cash. Even cheap subscriptions such as gym memberships can play a factor of what you could potentially be saving in the future. Now the problem with these memberships is that most are automatically debited from your bank account, so withdrawals can happen without you noticing. If it seems like these are just passive activities, try and decide if they are worth staying on. For most cases, it is better for you to just cancel that membership and utilize that extra money for something you actually enjoy.

Resist those Impulse Buys

Making expensive purchases on a whim can quickly diminish your savings. We have all been in that situation where we see something that catches our eyes and immediately have the impulse to buy. While satisfying as it may be, you must resist that temptation. To prevent this from happening, go into your stores with an overall inventory list of what you actually need. This will prevent you from loading your cart with unwanted buys.

Pay in Full

When it comes to credit card debt, it is important that you pay in full. Yes, there will be times where you cannot pay the full amount. But making only minimum payments on your credit card will be a disservice to you and your financial future. By paying the minimum amount, you are adding years to your payoff date. In addition, the interest compound increases making it almost impossible to get out of debt if this continues. Make sure you allocate your funds in paying off your debt. Yes, this will require a big sacrifice, especially for those social activities. But, it is also absolutely necessary to get you on track in building a healthier financial future.

TedTalks Finance: Shlomo Benartzi and Saving for Tomorrow

When it comes to finance and personal savings, it is often easy to say that you are going to save for the next week. But what about now? What about today? Generally, we as a public have assumed a mentality that is driven by our intrinsic desires to spend. In this TedTalk, Economist Shlomo Benartzi discusses the biggest obstacles when it comes to saving for your retirement. He includes various psychological behavioral factors that questions our mentality so that we can reflect and internalize on our true priorities.

Evaluate Your Finances, February Edition

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With a month already into the new 2016-year, the resolutions for a financially healthy and fruitful future may find its way at a close. For many of these resolutions, these intrinsic financial goals have motivated millions of Americas to evaluate their personal finances holistically. But, like with any motivating push, the timespan can oftentimes be short-lived.

Before you hang up the cleats and veer away from your bank statements, think back about why you wanted to save. Reflect on your goals for the future and critic what your funds and savings were within the past month. This type of practice is a necessary starting point to help you get back on track in evaluating your financial goals for the year.

Once you have self-reflected on those objectives, take a few hours to evaluate your finances more specifically. Below, you will find seven key financial metrics you should examine thoroughly. These numbers will allow you to see where you are currently are and what you need to do to reach your goals. Remember, the more you know, the better off you will be in the future.

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1. Know Your Net Worth

One of the most important metrics you should evaluate is simply your net worth. By definition, your net worth is the amount by which your assets exceed your liabilities. Another way to look at this is the overall value of everything you own minus your debts. This number will allow you to measure the status and heath of your personal and professional finances, while also setting you up financially for your future goals. To accurately determine your net worth, use this tool here.  This will allow you to

2. Know Your Debt Levels?

The next step is to look at your debt and expenses. Start off by evaluating your 2015 debt levels. Then compare them to a month-by-month spread. Here, it is important to go beyond the numbers and see what you can do to optimize your financial situation. Ask yourself these questions: What was your biggest expense? Did you borrow any money within the past twelve months? What can you do to pay down your debt faster? These overarching questions will allow you to strategize and plan a way you can save even more.

3. Retirement Planning

For some people, this may be a new concept. For others, this is seen as a bi-weekly ritual. Like it or not, time will always be never-ending. Because of this, you need to make it a point to plan a retirement budget. A simple approach is to assess whether you are contributing any amount to a 401K, IRA, or retirement account set up by work. If not, try and find an option that will allow that. Once that is set up, try and find a way to optimize your savings. The best way to do this is to think about your goals. Think about what you are looking for twenty years from now and how much you should have at that point. This will provide you the necessary incentive to continue, and possible increase, your savings.

4. What is your Credit Report Score?

One of the best indicators of analyzing your personal financial health is to evaluate your credit score. You may have heard this phrase thrown around when you are looking for an apartment or looking for a new credit card. Whatever is the case, having a strong credit score can alleviate any pressures in specific financial situations. To get your credit report for free, check out annualcreditreport.com.

5. Savings

Outside of your retirement, there are a variety of different aspects when it comes to savings. One of which is the cash position that can be handled in a short-term use. And the other is for unexpected emergencies. This is usually what we call an emergency fund. At the end of the day, we cannot predict the future. There are unforeseen events such as a hospital visit or a car crash that will require us to have a lump sum ready to use. If you have not already set up this type of account, I would strongly advise you to begging saving for your emergency fund. Remember, just because you own a crystal ball does not mean you can predict the future.

6. Student Loans

This is more for the fresh college graduates who are seeing the adult world for the first time. Unless you were on a scholarship or you were fortunate to have your parents pay for your education, student loans may be the dark cloud following you everywhere you go. The best way to tackle this problem is by knowing the monthly amount. This goes back to the second financial metric, “Know Your Debt Levels.” By having a conceptual understanding of this expense, you will be able to control how you are going to pay it off and how much you can save each and every month.

7. Future Investment Opportunities

If your investment is financially healthy, you should begin exploring other investment opportunities. If, however, you are hesitating about the situation, talk to a financial expert. Either way, exploring different avenues and finding new ways to grow your money other than work can be incredibly beneficial to your campaign.

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