What is the Definition of Personal Finance – Budgeting

If you find yourself asking where to begin with learning proper finance, start with the definition of personal finance, budgeting. Why the definition of personal finance is budgeting we will outline in the following article, because truly there is no more important lesson as to what proper financial management entails, and what will most directly contribute to your success with your money.

Proper Budgeting is Personal Finance Mastery

There is no need to look beyond budgeting when beginning your journey towards personal finance mastery. Budgeting can be a scary prospect when you have not done so for a long time, the money tale told by your expenses and income can paint a poor picture. But whether you are a millionaire with investments, countless loans, mortgages and stock holdings, or an honest hardworking fellow just beginning your financial journey, budgeting is the key to continued success with your money.

Proper personal finance budgeting allows you to account for what monies you have coming in and what monies you have flowing out of your accounts. Mastery of your finances, no matter your level of income is a matter of using this information to make decisions that increase the money you have coming in each month, and decrease the flow of cash you have leaving your possession. If you choose to achieve this through additional investments, decreasing interest rates with consolidation loans or a job promotion the basics of personal finance budgeting remains the same.

Proper managing of one’s debt, income and expenses is the soul of managing your money and that is why the definition of personal finance is budgeting. There is no need to get more complicated than this, with your credit cards, payday loans, investments and stock options, you will find yourself on a sound financial footing if you keep a detailed budget, follow your money, and ensure that you spend less than you earn each and every month.

To properly budget your personal finances you simply add up your sources of income, account for every penny that you have flowing to you each month, and track every expense. I am not concerned with the exact system you employ as long as you are detailed and know how your money is flowing. Track your loans, and if you have bad credit lenders, know how much you are spending in interest. Track your credit cards and what amount of your payments applies to principle and what cash goes towards interest. Make knowing your finances your business and when you have an accurate picture of the flow of your money, then work to improve your finances.

Most mistakes of personal finance are made because honest, hardworking people have an unclear, or foggy idea of how their money is spent from month to month. With a little attention to the details of your cash flow you will find that there are countless ways to save additional money, and increase your income. Keep a focus on the basics of personal finance and never forget that the definition of personal finance is budgeting. You too can start making a profit today.

Guide to Commercial Equipment Leasing and Financing

There is a few ways to go about getting commercial equipment financing and leasing. The most important tool today you have at your disposal is the internet. You can search for literally hundreds of companies who provide equipment finance and leasing. This allows you to shop around and find the best deal and in today’s environment, it can make all the difference.

The first thing you should look for is a company that provides financing for your industry. A lot of companies over the past few months have moved out of certain industries citing that they are high risk. It is best to call finance companies before filling out any paper work just to make sure they are still in your industry or in current times, still in business. Once you have put together a list of companies offering finance and leasing, your next step is to prepare the necessary paperwork. All finance companies will have their own standards, but I will try and point out the standard documents.

The first paperwork you will be asked to fill out is the application. This will include information such as your full name, address, social security number, employment and information on the equipment you need financed. It’s pretty self explanatory why the company needs this information but the most important reason is to check your credit score. In today’s world, your credit score matters more now than it ever did. In the past, you could still get a loan with bad credit. Those days are long gone. Most finance companies are looking for people with a quality credit score and won’t give you the time of day if you have bad credit. In some cases, banks and finance companies will work with you but will require significant collateral. It is best to wait until your credit improves as you will also get a better interest rate.

After you receive an initial approval from the finance company, some companies can approve application only depending on the amount requested. However, you may have additional steps such as collecting your bank records and tax history. Some companies will want two years of tax history and six months of bank statements. Based on the equipment you are buying, you may need a specification sheet (spec sheet). This can be sent from the dealership or equipment supplier to the finance company directly. This for most part covers the standard documents needed for getting your equipment financed. After the loan documents have been signed and returned, the lender will wire or overnight a cashier’s check to the vendor. You can then pick up your equipment.

Finally, I would like to conclude with some important tips about obtaining your finance or lease agreement. It is very important to read over each piece of paper to make sure that you fully understand the terms of the lease or loan. In most cases, your lease or loan payment will be anywhere from 24 months to 72 months. If you do go with leasing, try to get a one dollar buy-out clause attached to end of your term. This is very important as the life of the equipment being leased will last much longer than the term you leased for.