The 7 Mistakes People Make That Makes Financial Independence Impossible

Even with the best of intentions, the quest to be financially independent is not easy. However, it’s not just the positive things we do that will affect whether we’re successful or not – it’s those pesky mistakes we make along the way that will, too. Although we can have a list of five things we’re doing that will bring us financial freedom, many people are also making six mistakes, which is derailing all the good work they’ve done. Below, we take a look at seven of those all too common mistakes that can make our good plans go awry.

Saving $250 = Reward

There’s an aspect of being financially responsible that people often overlook: it’s annoying. Given the choice of adding $50 to a savings account or having a few beers and a takeaway pizza after a long day of work, many people take the beer and pizzas and don’t think twice. This is an especially easy mistake to make when you’re actually doing well with your savings target. But remember: saving a few hundred dollars is something you should be doing, not something you’ve done well that deserves a reward. Resist the temptation to treat yourself just because you think you’ve earned it; you’ll only be pushing your goal further away.

Not Plugging the Holes

You can save as much money each month as you want, but if you’ve still got expensive debts hanging around your neck, then you’ll be making life that extra bit difficult for yourself. Before thinking about boosting your savings pot, make sure you’re not losing more money than you should through your debts; if you’re paying high interest on a number of debts you have, then you’ll need to do something about that before anything else. Several professional debt relief options are available to help you get it under control and make the payments more manageable. It’s only when the holes have been plugged that the boat can sail!

Not Taking a Chance

‘Taking a chance’ might have been what got your fingers burned financially in the first place, but that doesn’t you should only be playing it safe when it comes to your finances. While saving a percentage of your income and paying down debts will make a difference, real independence will only come when you don’t have to worry about the money in your bank account – and you won’t be able to do that if you don’t take a chance. Of course, it’s about analysing the risk and making an informed decision. Stick a low risk, diversified portfolio to ensure you don’t have all your eggs in one basket.

Not Following YOUR Dream

People tend to get into debt in the first place because they’re following someone else’s dream. They don’t always learn their lesson, however, and can sometimes follow someone else’s dream when it comes to financial independence, too! Only you know what you’ll need to be monetarily secure and comfortable. If it’s enough for you to have your own house and $30,000 each year, then that’s what you should be aiming for

Keeping Savings in Regular Bank Account

Of all the simple mistakes, none are as damaging or as avoidable as keeping savings in your regular bank account. It’s a recipe for disaster waiting to happen. Keep your savings separate, and you’ll have a much clearer understanding of your finances, and will avoid accidentally dipping into the cash you had earmarked for something else.

Not Revisiting The Approach

You, like everyone else, will change as you grow older. What was a dream or aspiration when you were 35 may be consigned to history by the time you’re 45. In the process of gaining financial independence, you should be reviewing your goals – and how you plan on achieving them – regularly. Some, like what you want from life, will come naturally to you, while other will be enforced, for example, if you have a child or change jobs.

Living in the Future

And finally, of all the mistakes that people make, none are as damaging as believing that financial security will come from nowhere or can be put off for a year or two. There is no magic bullet, and there’s no mythical check that’s going to spring from the sky and remove all your money troubles. It takes hard work. The best time to start the journey was twenty years ago; the second best time is right now. Don’t delay.

Avoid these mistakes, be proactive with the positive steps you can take, and your finances will look better in no time.

 

Trying For A Mortgage When You Have Bad Credit

When it comes to buying a house, mortgages are a tricky thing for everyone, whether you have plenty of real estate experience or not. Often you don’t know what criteria you have to fit, what application you have to fill out, or where to find the right one in the first place. However, when you have bad credit, this process can be even trickier. So what can you do to get a mortgage when you have bad credit? Below are some handy tips.

Why is a bad credit mortgage different?

There’s a strange allure to finding a mortgage when you have a bad credit rating. Yet there’s no real difference between a so called ‘bad credit mortgage’ and a regular mortgage. A bad credit mortgage is just one that can be obtained if you’ve failed a credit check with a lender, and then find another lender that is still willing to give you a mortgage. We won’t lie, a bad credit mortgage is more likely to have a higher interest rate due to the above average defaulting risk, but that’s par for the course. When it comes to securing a house, just simply being able to find a mortgage is important.

Determining your credit rating

A credit rating is not the be-all end-all of getting through life, seeing as it’s not impossible to find mortgages when it’s bad. However, it is an important element in finding your dream house or just a better place to live. Your credit score is all dependent on your spending history. If you’re especially worried about your credit rating, refining your purchasing habits can help, or your can read through helpful sites such as Better Credit Blog which have lots of handy tips. Your credit rating can also be affected by factors you’ve simply forgotten to account for, like a credit card that’s no longer in use still being open. Make sure to check through all accounts new and old before applying for a mortgage, as any one of them can affect a credit report. If you have a stable income and proof of this, finding a mortgage will be easier in the long run, as this is an example of your trustworthiness when it comes to handling finances.

Finding the right place to look

There’s a lot of information out there for bad credit mortgages, yet wading through it can immediately put a person off. When trying to find a lender that will consider someone with bad credit, look for terms such as ‘subprime’ and ‘adverse credit.’ These sound like less than favorable slang words, but like mentioned above, there really is no difference between standard mortgages and bad credit mortgages.

Don’t despair when it comes to your credit rating, there’ll always be things you can do to better it. We can all understand how tricky it is to spend the right way in an economy that trips up and down constantly, but finding a mortgage shouldn’t be made harder alongside it.

 

The 411 on Foreign Ecommerce

So you’re running an ecommerce store and looking for new customers? Many businesses are taking full advantage of the world wide web by going, well, worldwide! China and India are prime examples of growing international markets currently being targeted by ecommerce titans and SMBs.

Still, this does not mean that the decision to extend your business overseas should be taken lightly. Obviously, engaging new customers leads to increased revenue but it can also create difficulties for vendors who are simply not prepared for international sales.

Below are a few things to consider before taking the plunge into foreign ecommerce.

International Shipping

Recent surveys show that consumers are doing most of their shopping online and the trend isn’t slowing down any time soon! But of course, there has to be some way of delivering those goods to consumers in a timely manner, one hopes.

Different shipping options are especially valuable for overseas deliveries which can often be much costlier and more time consuming depending on their country of origin. Keeping this in mind, it may behoove you to stick with the shippers you already know and trust. Delivery giants like FedEx, UPS and DHL all offer international shipping with a name you can count on.

However, some ecommerce vendors have found another way to reduce their own shipping costs and appease foreign customers. It’s known as ‘drop shipping.’

Drop shipping takes handling and delivery out of your hands entirely by sending customer orders directly to the manufacturer or warehouse of your choosing. This way, when a consumer makes a purchase, the package will be sent out immediately without additional steps on your end.

This solution isn’t for everyone. If you custom create your products, drop shipping isn’t really an option. But if you don’t, you can often find drop-ship vendors who ship internationally or are located in the countries you are operating in. Neat, right?

Processing Foreign Currencies

It is very important to think about the foreign markets you are trying to target. Not only from a marketing perspective, but also from a financial perspective. How are you going to manage so many different types of currency?

Some free ecommerce store platform providers like Shopify offer add-ons capable of converting currency automatically. These can be especially helpful for foreign shoppers who visit your page. Instead of seeing the price tag in US dollars, it will be instantly converted to match their IP address with a currency they are more familiar using. Another option is to adopt a third-party gateway, like PayPal or Square, to accept foreign payments without the headache of exchange rates.

Even so, it may be difficult to juggle various taxes, rules and regulation for each region you do business. Think about adopting additional add-ons to manage your books and track your orders to better manage your taxes.

Multilingual Customer Service

If you are considering branching out your business across the world, you will definitely want to revamp your customer service. Think about the customers and countries you are reaching out to and ensure that your store can handle customer requests in multiple languages.

Some point-of-service systems offer regional language packages to assist international ecommerce vendors. In contrast, small business owners might benefit from working with for-hire customer support teams to address consumer concerns. After all, breaking down language barriers is key to operating in a successful international market.

Now that you have some insights on managing international sales and providing the same kind of convenience and service to your foreign shoppers as your domestic ones, see what you can accomplish on the world stage.