Investing Basics – Pitfalls To Avoid

Pitfalls can ruin even the healthiest investment plans; hence, before racing of for investment plans and new strategies it is important to be aware of the common pitfalls due to which even the most of the competitive day traders face losses in the stock market.

o Wait for miracles: grow up! This is stock market and there is no guarantee for the stock market to rise on a particular day. Waiting for the right time is useless. The right time for investment is today. Waiting and doing nothing cannot generate returns. Hence, get ready for work and start earning satisfactory returns.

o Investing for the short-term: if urgent cash is needed there is no point investing in long-term investments. Plan and invest the money accordingly that may serve your urgent need. However, make sure that you save heaven’s for needs to be fulfilled. Also, after quenching your immediate needs make sure that you integrate the investments well by investing in both long-term and short-term investments. Also, diversify the shares to be purchased.

o Turning down free money: a dollar being offered without any strings attached is never left by any person in the whole world. Then why those schemes regarding the retirement plans and others that help you get better investments. Participate intelligently in the tax-free schemes to save on taxes and invest better.

o Playing too safe or scary: excess of everything is bad and same applies to stock investing. Investing too safe and getting meagre retune takes you to nowhere as the costs including brokerage fee and time are to be covered. Similarly, playing scary can let you lose heavy amounts that may take too long to recover or may throw you out of the investment business. Hence, determine your risk tolerance levels and trade in stocks accordingly.

o Keep a salary account: investing in stocks is a business. Hence, a profit or salary account must be maintained. Get yourself a salary for investing or make an account of profit. It serves many purposes including covering the cost of investments and providing incentive to the trader to make better investments. Also, it helps in having some amounts safe with the trader and provides liquidity at the time of need.

o No investing before the credit card payments: if you have some credits card payments to be made, pay them off right now, even before allocating you’re saving to investments. Some credit cards have high rates of interests, as high as 16-18%. Hence, pilling your credits and investing from the amounts is not a smart decision. First pay off the debts and then start investing in stocks.

o Invest and not play: stock investing is not gambling or getting lotteries for the sake of money. It is a smart decision that takes considerable amount of calculations and intelligence to make money. Hence, playing with stock my turn unfavourable and lead to loss. Always take it as investments that may get too grounded if not made smartly.

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Save Money on Auto Insurance, Business Insurance, Health Insurance

These days insurance have been swarming the four corners of the United States. Whether we like it or not, insurance is a need. Why? There is no denying the fact that one disaster can have a devastating effect on a firm, a family and an individual. It can be damage, bankruptcy and death to name a few. What are the factors that we should consider and how can we know the insurance that we need.


One has to consider the purpose of owning it whether for personal use, for public transport use like a private taxi, or use for transportation of goods and industrial materials. Age is also a major consideration. Old vehicles pay a higher premium than new ones. The type and model of the vehicle has a major role also. When buying car/auto insurance online, there are sites that provide automated tools. They’re using an auto coverage analyzer where you have to answer a few question about your financial standing, automobile condition, etc. From this information it will generate what category of coverage you need.


There are insurance companies which have policies that combine protection for all major property and liability risks in one package. But you could also go with a separate coverage which is called a business owner’s policy (BOP). For protection against flood damage, find out if your office is in the flood zone-area. And if so, you must go for a policy that provides coverage against flood. Special Earthquake Insurance Policy or Commercial Property Earthquake Endorsement can cover you if you live in an earthquake-prone area. However, its policies have different deductibles. Meanwhile, Business Interruption insurance, reimburses you for the lost income during a shutdown only applies to damage covered under this policy. On the other hand, Terrorism Risk Insurance Act 2002 covers loss due to any terrorism only for those businesses that have this coverage. Injuries and deaths due to acts of terrorism are exceptions in worker’s compensation.


With health insurance, you protect yourself and your family in case you need medical care that could be very expensive. If you have insurance, many of your costs are covered by a third-party payer (insurance company/employer), not by you.


Group Insurance

Most Americans get health insurance through their jobs or are covered because a family member has insurance at work. Group insurance is generally the least expensive kind. In many cases, the employer pays part or all of the cost.
Some employers offer only one health insurance plan. Some employers offer a choice of plans. These are:

a) Fee-for-Service
Insurance companies pay fees for the services provided to the insured people covered by the policy. This type of health insurance offers the most choices of doctors and hospitals. You can choose any doctor you wish and change doctors any time. You can go to any hospital in any part of the country. The insurer only pays for part of your doctor and hospital bills.

b) Health Maintenance Organizations (HMOs)
Health maintenance organizations are prepaid health plans. As an HMO member, you pay a monthly premium. In exchange, the HMO provides comprehensive care for you and your family, including doctors’ visits, hospital stays, emergency care, surgery, lab tests, x-rays, and therapy.

c) Preferred Provider Organizations (PPOs)
The preferred provider organization is a combination of traditional fee-for-service and an HMO. Like an HMO, there are a limited number of doctors and hospitals to choose from. When you use those providers (sometimes called “preferred” providers, other times called “network” providers), most of your medical bills are covered.

Individual Insurance

If your employer does not offer group insurance, or if the insurance offered is very limited, you can buy an individual policy. You can get fee-for-service, HMO, or PPO protection. But you should compare your options and shop carefully because coverage and costs vary from company to company. Individual plans may not offer benefits as broad as those in group plans.

Tips when shopping for individual insurance:

o Shop carefully. Policies differ widely in coverage and cost. Contact different insurance companies, or ask your agent to show you policies from several insurers so you can compare them.

o Make sure the policy protects you from large medical costs.

o Read and understand the policy. Make sure it provides the kind of coverage that’s right for you. You don’t want unpleasant surprises when you’re sick or in the hospital.

o Check to see that the policy states: the date that the policy will begin paying (some have a waiting period before coverage begins), and what is covered or excluded from coverage.

o Make sure there is a “free look” clause. Most companies give you at least 10 days to look over your policy after you receive it. If you decide it is not for you, you can return it and have your premium refunded.

o Beware of single disease insurance policies. There are some polices that offer protection for only one disease, such as cancer. If you already have health insurance, your regular plan probably already provides all the coverage you need. Check to see what protection you have before buying any more insurance.

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Commercial Finance – Commercial Hire Purchase

Commercial Hire Purchase (also known as Asset Purchase or “CHP”) is similar to leasing, except the customer claims the allowable depreciation on the equipment plus interest as a tax deduction, as opposed to claiming the actual lease payments, as with a finance lease. The choice between the two will depend on which option maximizes the company’s tax deduction. This in turn will depend on the term and the depreciation rate allowable on the equipment.

Payment Structure

The customer can structure the payments so that nothing is owed at the end of the term or a small “balloon” payment (like a “residual” in a finance lease) can be used to offset and reduce monthly payments.


o Unlike a finance lease, no restrictions apply to term structures.
o Tax ownership lies with lessee – interest expense and depreciation are claimed.


o For those on the “cash” method of accounting, GST is claimed and amortized over the duration of the loan period.
o Amount financed inclusive of GST – interest expense is therefore higher.

Equipment Finance Broking Firm

Established in 1990, Melbourne Finance Broking is regarded as one of the most progressive equipment finance broking firms in Australia. With over 40 staff around the country and realizing enormous finance volumes (commanding significant buying power), the broking house deals with over 30 of Australia’s banks and lending institutions, including some with exclusive agency.

Heavy Equipment Financing

Each broker or broking team within Melbourne Finance runs their own business specialty. The corporate entity, Heavy Equipment Finance Australia (HEFA), was introduced by one of the teams in 2005 to more accurately signify their heavy equipment financing specialty, as well as better reflect their interstate expansion.

The HEFA team is unsurpassed in its experience and dedication to servicing the industries utilization heavy machinery, including Earth-moving, construction, road making, mining, demolition, forestry and agriculture.

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10 Tips For Choosing a Home Based Business

Work from home

Choosing the right type of business is a difficult process for your new start to become entrepreneurs. A lot of dreams when to start a business, but still frozen, especially because you do not know what is the appropriate business when those ideas come to mind.

Here are ten tips on choosing a home business that may be suitable for you.

1. Instead of choosing the first business that comes to your mind, try to take some time to explore various options. Select another business idea! Read books that might provide ideas home business or small business, and magazine articles or more entrepreneurial and marketing of existing trends and market demand. With the phenomenal growth of the Internet, the information you need now easy for your search.

2. Find out what kind of business that interests you. Define your goals, interests, desires and abilities. What is important is that you should enjoy your business is. Entrepreneurs who succeed are those who feel most passionate about what they are doing. You can not feel excited if you do not like!

3. Choose a business that is personally satisfying and profitable. Although you may have a passion in a hobby or craft, try to consider the potential business. Do you think there is a demand for it? Was going to take you on recurring income? How is the market potential, whether already saturated? Are there barriers to entry? Do you have economies of scale?

Start a business that you think has the potential benefit. You will need to do a lot of calculation to determine the financial viability of your business. Obviously this will require market analysis and an analysis of BEP, the initial financial projections show that the amount of income you should be able to cover your expenses. All this requires extra energy, especially if you are not a financial expert, but this is one important step in assessing whether the business you choose can make money.

4. Think about whether you can and want to manage every aspect of business. When you start a new small business, you may not have the luxury of staff to help complete in some aspect of your business is. Instead of just focusing on the strategic direction of your business, you may be asked to collect the receivables, track expenses, receive customer calls, and do thousands of other tasks. Snap will be other tasks that you must do in your business.

5. Area. Draw a layout of your workplace. Remember, you start business at home to save on overhead costs, so take advantage of every nook and cranny possible that you can use in your home. If you want to start a cake decorating business, you must have a large kitchen. Forget about starting a dance instruction class if you live in a studio apartment!

6. Make sure your business meets the high safety standards, especially if you have children at home. This is important if your business is associated or using chemicals and other hazardous substances. For example, store all chemicals used for cleaning carpets or upholstery. Move these materials in a safe place for example in the garage out of reach of children.

7. Check with your insurance agent to determine the types of business insurance coverage you need. This is good planning to determine what insurance is needed to minimize risk and protect your business. General categories of insurance including property, licensing, liability, health, disability, workers’ compensation, and life insurance.

8. Ensure compliance with laws and regulations in your area. Visit your local government office to view the regulations or other business licenses will be able to prevent you from selecting a particular location. Be careful, pay attention to the rules that regulate business signs and business types that are allowed at different locations. You do not want the government to come knocking at your door asking you to stop the surgery after you spent thousands of decorating and equipping your business!

9. Family. Choose a business that has the organizational characteristics that are compatible with yourself or choose a business that fits with your family schedule. If you have a newborn at home and your husband work full time, you should look for a business that will allow you to take care of your baby. Business that will force you to actively seek out clients such as real estate may not be suitable for you at this time.

10. Create your family members involved in business and work together for success! Every dream of combining home and office, career and family became a symbiotic blend of harmonious bliss. Not easy, but it is one way to involve your family in your home business. For example ask your teenager to help design your web site. Your partner can help in negotiating with your clients. The most important is that each person in your family to enjoy the job and help the success of your business.

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