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Different Types of Income

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There are two types of income namely active and passive income. Active income is where you do work or provide services and you are paid. A passive income is not earned directly, you have to complete a task then receive payment later.

Salary

This is the type of income that you earn from a job. It can be either paid weekly or monthly depending on the contractual agreement. The amount is usually regular throughout the year.

Basic salary is the amount an employee earns before deductions, taxes, and other additions. Gross salary includes the basic salary plus all additional earnings such as bonuses and commissions.

Wages

You earn wages from a job that is paid at an hourly rate. You earn more money depending on the number of hours you work. To get the hourly wages you multiply the hourly rate by the number of hours an employee has worked per day.

Overtime pay is 1.5 times the employee’s regular wages. The overtime is paid for every hour an employee works over 40 during the week. It is important to note that not all employers offer overtime wages although it is required by law.

Commission

The commission is the common form of payment for sales roles. It allows you to earn a percentage after completing a task. You earn a certain amount after each sale depending on the employment contract. Commission focuses on the results rather than time/hours worked.

For example, an employee who sells a car worth $9000 and receives a commission of 9% of the sale. The employee will earn a commission of $810 for selling the car. The income might not be regular as it only happens when a task is completed. A commission-based employee is entitled to receive overtime payment by law upon reaching certain conditions.

making money income

Interest

Interest income is earned after depositing money in your bank. The interest is different depending on the type of account. Buying government bonds as an investment will also earn you interest.

The bank calculates the interest annually and the amount is taxable. Interest income is also earned by shylock after a loan is paid.

Royalty

This is a type of passive income that is earned by creating something unique and charging people. A good example is musicians and YouTubers.

When musicians are signed by a record label, the company produces the records, pays the musician, and does the marketing. Also happens when people watch, download or stream music, the payment that musicians receive is royalty.…

Factors to Consider When Choosing Personal Line of Credit

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loan moneyA line of credit refers to a credit facility extended by a financial or lending institution to a customer, which allows the customer to access the funds whenever he or she needs to. The line of credit can take a variety of forms, including a demand loan, overdraft limit, term loan, special purpose, and discounts, among many others.

Secured Vs. Unsecured Credit Lines

Generally, credit lines are assumed to be unsecured. However, some require you to use your assets as collateral, depending on the lending institution you choose and the terms and conditions offered. The unsecured lines of credit are generally more attractive. However, they do offer higher interest rates. Your financial situation should help you decide which type will provide you with the most benefits.

Open-End Vs. Closed-End Credit Lines

Open-end credit lines are usually referred to as revolving credit. For such, you have to pay a specified minimum amount of the money owed each month, but preferably pay the entire amount the soonest possible. HELOCs are an excellent example of open-end lines of credit, which base the amount you can borrow on the percentage-appraised value of your home, subtracting the amount you still owe. The closed-end offer fixed amounts for specified purposes, and have to be repaid within a specified period.

Interest Rate

With a personal line of credit, interest will start to accrue from as soon as your loan gets approved. The interest rate is mostly determined by the financing institution you choose, meaning you should shop for the best rates. Ideally, the better the interest rates, the better the loan is for you.

Amount

Another top factor to consider when choosing a personal line of credit is the amount. Depending on the amount you need, a personal line of credit may or may not be the best option. For a personal line of credit, you may not be eligible for as much money as other options. However, that does not mean you should go for other options that offer higher limits when you do not necessarily need bigger loans.

Loan Terms

Before you accept the offer issued by the lender, consider all the terms and conditions that come with the loan. Some of the considerations to make regarding terms and conditions include repayment time and repayment schedule, among others.  

Things You Should Know About SGQR Before You Start Shopping

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The Singapore Quick Response Code for Payment (SGQR) is a single QR code that is compatible with several e-payment solutions. It simplifies QR payments by combining multiple online-payments solutions into one. As a cashless initiative, it transforms Singapore mobile payments into a cash-light society. Therefore, here are facts you need to know about SGQR before you start shopping:

Code of Honor

SGQR’s sticker works with almost all e-wallets, credit cards, or other payment apps of choice. Notably, SGQR is adopted by more than 27 different schemes from different service providers. For instance, there are NETS, Liquid Pay, Liquid Pay, GrabPay, SingTel Das, and many others, which accept Singapore and international e-payment solutions. Hence, with more SGQR points installed, you can use your e-wallet to make several payments across the country.

Check the SGQR Code

Although SGQR accepts dozens of e-paymentlaunching SGQR options, ensure that you check the brands listed below the SGQR code to confirm that the store you are shopping from accepts your choice of payment. While at the store, you do not need to verify with the cashier; instead, check the sticker.

Loyalty Rewards

Using SGQR code could lead to loyalty rewards. With only one sticker, it is possible that organizations competing for clients are willing to offer better and varied options to entice consumers to use their application. Therefore, consumers can use this opportunity to get loyalty rewards.

Lower Costs

By using the SGQR code, everyone will benefit from the low prices of products because the system is centrally maintained. Hence, it is simple to deploy stickers. Therefore, it is a cheaper alternative for stores as accepting e-payment options means that they do not charge consumers extra costs.

SGQR Code Is an Industry Effort

Usually, mobilizing natural competitors to come together and complete a task is a big deal. Notably, the development and launching of SGQR transpired through a collaborative task force led by IMDA and MAS. The payment council consisting of members from trade associations, banks, businesses, and payment service providers, established the task force.

Currently Rolling Out

Starting from the Central Business District, the SGQR code entered the business world progressively from early 2019. More than 19000 existing QR stickers from diverse payment methods received a replacement of SGQR stickers. Later, the participant payment providers rolled out SGQR for new merchants.…

What to Consider When You Want to Invest in Bitcoin

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Nothing in the past few years has made people more money in a short time like bitcoin. Some investors can tell you that bitcoin has become overbought and it is now a ticking time bomb waiting to go off, but this simple idea of digital currency has proved them wrong again and again.

Therefore, for a person who has some extra bucks lying in the bank, you need to invest the money in a venture that has proved itself over and over again, and the returns are outstanding. However, before you set out to invest in bitcoin, here are some essential things to consider.

Risk

bitcoin currencyLike in any business that you will try to venture into, there will always be some risk involved. And as a smart investor, you need to inquire and research about the possible risks involved in investing in bitcoin. It is not always wise to follow what other people are suggesting to you blindly, once you have understood the risk then you can comfortably invest and watch your investment grow. Being aware of business risk liberates the mind from unnecessary panic.

Capital

Whenever you want to invest, the first thing you need to consider is the capital you have. You should use money that you do not need for your basic daily demands like food, shelter, and clothing. The reason for this is because an excellent investment requires sufficient time, and it is not like rolling dice in a casino. As you plan to invest in bitcoin, you need to make sure that you have surplus money that you will not need in the near future.

Knowledge

purchasing bitcoinsSome people trust investment companies to handle their investments for them, while others like to be hands-on on every investment that they make with their hard earned money. Regardless of how you want to handle your bitcoin investment, you should at least get some basic knowledge on what bitcoin is and how it came about to be. But if you do not have the time to go through all that, then you should have an investment partner that you trust.

Platform Provider

When investing in bitcoin, you need to find a platform where you can buy and sell your shares. There are many platform providers now available to take your orders and buy for you the number of bitcoins you want. However, you should ensure that you have the best platform that can execute your requests quickly.…

Why You Need a Financial Advisor to Take Your Business to the Next Level

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Most people would not give in to the idea of risking their finances without an objective plan. It is unusual to embark on a potentially costly and time-consuming venture without seeking some advice. Unfortunately, most business persons often neglect the services of a financial advisor. Only a handful make it without the financial help, with most of them failing right on their tracks.

finance tips

Financial advisors bring the expertise and experience needed to get the best of your investment. For instance, if you are starting a business in life sciences, you would probably be looking for the lifesci advisors to help you assess the viability of your business and to also get an idea of the what to and what not to do. That said, here are some ways a financial advisor can help your business.

Expertise

A financial advisor in any field brings in required expertise that might be lacking on your side. Ideally, a financial advisor seeks to find practical answers aimed at making your business productive and profitable. Besides, they will also offer you accurate projections that will help you establish and grow your business. By doing this, the advisor will also help you refine your business plan and ,at the same time, help you handle different circumstances.

Cost Savings

The initial cost of hiring a financial advisor cannot be compared to the gains that come with making this decision. Unless you are a seasoned financial expert, you will probably be focusing on your core competencies. This way, a financial advisor will help you with your finances and make it easy for you to make financial decisions from the point of strength. As a result, you avoid making costly mistakes, thus saving the pain associated with these painful mistakes.

Planning for Growth

financial ideaWhen thinking about the future of your business, most business owners tend to be emotional. You can either be overwhelmed, afraid, or excited. A financial advisor comes with an objective perspective and helps you make informed business decisions devoid of emotions. For instance, you are thinking about diversifying your products; they can help you determine whether it is a wise idea.

When exploring new territories, it is imperative to have a financial advisor on board. Ideally, these professionals help you navigate unfamiliar areas and at the same time give the liberty to focus on core aspects of your business.…

Where to Invest Your Money

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Once your income exceeds your needs, you have two choices: either you start buying more luxurious things, or you can invest your money. If you choose to spend your money, you’ll end up with nothing for the future. But if you invest it, your money will multiply in the future, and you’ll be able to afford twice the luxury items you’re probably thinking about right now. This is why we highly recommend investing your money instead of spending it right away once you have an excess.  But for those who have never invested in anything, you might not know where to starts. Here are a few things you can invest in for starters.

 

stock ratesStocks

A lot of people say that investing in stocks is difficult and ambiguous. It is just like gambling, one day you win, the next you’ll lose. However, investing in stocks can be continuously beneficial if you know how to play it right. The first rule of investing in stocks is to never go all out. Don’t invest every penny just yet, save some for if things do go downhill in the stock market.

Next, you’ll want to do research on which companies’ stocks are worth investing in. It could be a start-up business with promising future prospects, or an already successful company. If you don’t understand much about business and economics, you can always hire a financial advisor, but this does require you to spend some money. You can also just take it slow, decide how much you’re willing to invest, and read The Forbes a little more.

 

house behind maple treeHousing

When we say housing, we don’t mean buying a house. Although, if you do want to buy a house, that would be an investment as well. Being a property owner has a lot of perks, whether it being a house or an apartment, and type of land ownership is an investment. You can buy a property and sell it in the future, where the prices might go up if you choose a housing that is high in demand.

Look into strategic locations and the properties that are developing around it, and you can buy one for when the heap starts. Most property developers will start selling even when the property isn’t done yet, so this is your window to invest.

 

The most important thing about investment is to be smart and careful. Don’t invest every single penny, and do your research before making any decision.…

Managing Expenditure as a College Student

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jeans no money pocketsWhy It’s Important

If you are currently living in a dormitory or even abroad, you know exactly why this is important. Not living with your parents means that you’ll need to find your own food for the day, you’ll need to buy your own necessities such as soap and cleaning tools, and all that. Moreover, you’ll need to cover medical supplies for when you get sick.

Trips to the mall and grocery stores are funded by yourself.If you can’t manage how much you spend, you’ll end up running out of money by the end of the month, and have to cope with ramen noodles for one week. It would be a miracle to not end up with indigestion or some sort. Managing your expenditure is not just about financial stability, it is key to maintaining your health and well being.

 

How to Manage

Managing your expenditure has to come from yourself. Without determination, you might still be lured to spending your dinner money for that gorgeous pair of shoes you saw online. Thankfully, the digital era has provided us with plenty of easy financial management applications. You can note your expenditures there for around two weeks, and make note of how much you’d initially spend for food, entertainment, etc.

Then, you can set up a budget for the next two weeks, making sure you don’t spend more than, for example, $20 per day for food.  You can even go as far as setting a withdrawal limit to your debit cards, so that you don’t withdraw a more than necessary amount of money per week.

 

pink piggy bankShould You Start Saving?

Yes! The answer is always yes. It is never too soon to start saving money. Why? Because it will also be useful for something. If it’s hard for you to save without a cause, then start a cause! It could be something small, like saving up for a music festival or for a holiday trip. When you’re used to saving money, it would be easier for you to save up for bigger things, like a car or even a small apartment.

You can save your money in a separate bank account, to make sure that none of your saved money gets accidentally withdrawn for daily expenditures. It doesn’t have to be difficult, you can start by saving $5 per day, and by the end of the month you’ll have $150. Maybe you could use that for the gorgeous pair of shoes we discussed earlier rather than using your dinner money!

 

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