Sources of Consumer Credit

Credit occupies a prominent place in commercial affairs, undertaken by many people. It provides an opportunity to avail the benefit of purchases of goods and services, without giving the required money upfront.

Banks
A bank is a financial institution which is licensed by a government, and plays the important role in lending money. They also act as important players in financial markets and offer financial services like investment funds. Besides the credit cards provided by banks, which can be used for cash advances, many banks offer a variety of consumer credit services like loans with or without collateral, for major purchases such as automobiles and home mortgages. They also provide credits for taking a vacation, investing in a business, paying off another loan, or a myriad of other purposes. These credits can be paid back to the bank in the form of installments. However, while giving credits, the banks are rather selective and look out for individuals and businesses with established credit histories.

Brokerage Firms
A brokerage firm deals in trading of stocks, and execute the purchase or sales of it. They are a useful source of consumer credits. The provision is for investors who have securities on deposit in a margin account and the maximum amount that can be used as credit, depends upon the market value of consumer's securities. Sometimes an additional collateral is required from the consumer's side, if the value of securities in the account declines. Money borrowed against securities can be used for any of the purposes including investment in a business, or payment of another loan.

Credit Unions
A credit union is a cooperative financial institution, that is owned and controlled by its members, to accept savings and grant loans to the other members. It is operated for the benefit of its members by promoting thrift, providing credit at reasonable rates, and providing other financial services. Some credit unions help in community development and range from small voluntary organizations to bigger institutions. People who qualify for membership in a credit union, are supposed to purchase its share, in order to activate their membership status, and gain benefits from the financial services which are offered. The operation of credit unions is almost similar to that of commercial banks, providing almost every type of consumer credit. The interest rates offered by credit unions may be slightly lower as compared to the commercial banks, however, the maximum loan amount may not be as large as provided by the latter.

Insurance Companies
Insurance, is a form of risk management, which is primarily used to hedge against the risk of a contingent loss. An insurance company is an entity which sells the insurance, whereas a policyholder is the one who buys it. Insurance companies are a source of credit for consumers in case he owns policies that include a savings component, or cash value. Life insurance loans carry relatively low interest rates as compared to that of loans from other lending institutions. Utilization of insurance companies as a credit source, actually involves borrowing one's own money. Any outstanding loan amount is deducted from the policy's death benefit, in case the policyholder dies without paying back his credits.

Finance Companies
Consumer finance companies basically deal with making installment loans and second mortgages. They offer consumer loans and financing for all purposes, and are generally more willing to make relatively small loans which commercial banks frequently avoid. They can be beneficial for some people as they do not take deposits, and can approve loans for applicants with bad or no credit histories. However, the interest rate charged by them are considerably higher and dependent on individual's credit file. If the applicant is having a bad credit profile, greater amount of collateral may be required by a finance company, for the approval of a loan.

Before approaching any of the above mentioned financial institutions for a credit, one should be sure of his needs, and should plan out the mode of repayment beforehand. It helps the consumer to avoid the hassles which occur on the non-repayment of credits, which may also spoil his credit history.

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Finance Charge on Credit

Finance charge is actually the fee which is added to the total loan amount. Periodic finance charge can help bank and financial institutions earn money which can be further utilized for a planned business expansion. Even though these charges can fluctuate, a certain minimum amount is taken from the loan seekers irrespective of the kind of loan availed by him.

What is a Finance Charge?

Finance charge levied on customers is a means for lenders to earn attractive returns over a long period of time. Every month, the customer has to pay a certain interest for the loan within a few days from the starting of the month. The financial institutions or credit card companies also reserve the right of charging extra amounts in case the customer makes late payments. The charge demanded by the banks from their customers changes depending on the condition of the economy. In case there is pressure from increased inflation, then the charge may be raised as a measure to deal with the situation. Also the finance charge charged by government controlled banks and private banks would be different. Generally, it has been observed that private banks will ask for more interest.

Now, talking about credit cards, the credit card providers impose a minimum charge on the balance amount which is not cleared by the customer. This can be explained with the help of a simple example. Suppose you own a credit card and have kept an unpaid balance of one dollar on the card. Then, your lender would have the official authority to charge you an amount which would be the minimum finance charge of around half a dollar. Finally, what we conclude is that if the balance amount on your credit card is too meager, then you should immediately pay it off instead of paying your lender the minimum finance charge. This charge is also applicable in the case of extension of the credit amount availed.

The charges for the secured loans will be lesser and more attractive for customers than those for unsecured loans. The application of periodic interest rate to the balance of your account can give the finance charges. The calculation of periodic interest rate can be done by taking a ratio of the annual percentage rate and the number of billing periods. The charge can be different for different people such as businessmen or those applying for a personal finance. This is because business loans are generally sanctioned at high rates of interests as compared to other loans. The interest amount charged by private money lenders is always higher than that charged by banks.

Adjusted balance method is widely used by financial institutions to calculate finance charge. In this method, the new charges are added to the balance from your previous statement. Now, from this amount, the amount of money which you pay is subtracted and the remaining amount is multiplied with the interest rate number. In the previous balance method, your credit card provider will simply multiply the balance of your previous statement with the interest rate. Naturally, such methods are more profitable to the card issuers than the customers. At this point, it is very essential for all credit card customers to understand that the rules and regulations related to finance charge can vary from one service provider to another.

Hopefully, this information on finance charge will help you manage your finances well. So, take smart decisions today to secure your financial future.

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Loans With High Risk

There are many mitigating circumstances that can shepherd someone to seek a loan and if you have bad credit scores, then you are left with a very few avenues of financial assistance. One such avenue is taking high risk loans to deal with your monetary needs and wants. In a recent survey, it was found that most people take a high risk loan to clear their earlier dues so that they can improve their credit rating.

When you take a loan, a credit reference agency keeps a record of our repayment structure and assigns you a credit rating. If you default on your payments or delay them you will be assigned a low credit score, which will affect your credibility and lenders will hesitate to give you loans. In such a situation, one of the resources is taking high risk loans.

The lenders perspective is changing towards offering loans to people in a financial crunch, as they see this as an opportunity to make profit. High risk loans have high interest rates and most of the time, the loan amount is comparatively less than other loans, this makes it a good bet for the lender. The high interest rates also encourage the borrower to pay on time as defaulting on the payments becomes a very expensive affair. Taking a high risk loan may also affect your Fair Issac Company (FICO) score, which is the most widely used credit score.

In a secured loan, you have to put up a collateral, but in high risk loan, there is no such requirement, hence making it a viable option for people with poor credit history and less assets. Finance companies even offer high risk business loans for entrepreneurs looking to make a headway in self employment. Most finance companies are backed by investors who are looking to get good returns on their investment.

These kinds of loans do not necessitate a co-signer when filling an applications and making it a popular choice for people. The status of an automobile has changed from something you want, to something you need, and high risk auto loans have become an option to cater to this need. All you need to do is find a dealer who has the lending resources to finance a new or a used automobile with a bad credit car loan.

Minimum paperwork is also one of the highlights of high risk personal loans, as you will only need to produce address proof and income proof to secure a loan. If you are employed you will need to furnish your paycheck receipts, if you are self-employed then you need to provide tax receipts and if you are unemployed you need to give proof of your unemployment benefits.

High risk loans are one of the most widely offered loans on-line, but consider all your options before applying, as the interest rates can be considerably high. If proper thought and consideration is not given to the income and expense sheets before taking these loans, you could end up in a debt hole that would be very hard to climb out of.

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Loan Vs Line of Credit

For businesses to prosper and consumers to have buying power, credit needs to be made available at reasonable rate of interest. This benefits the economy as trade prospers on the basis of effective use of credit. There are many ways in which an individual or a business may avail credit. Credit is extended by any financial institution as it profits from the interest paid by the borrower over the principle. Though this basic nature of credit offering remains the same, the different credit types vary according to the terms and conditions of repayment and interest charged. A 'Loan' and a 'Line of Credit' are two such types of credit offerings.

Comparison Between Line of Credit and Loan

Both credit offerings including lines of credit and loans are made available by most banks and financial institutions. It is essential that one knows the difference between line of credit and loan, when choosing between the two. Let us begin this line of credit vs loan discussion by defining the two types of credit.

Basic Difference
Let us first see how a line of credit work. When a person opens a line of credit with a financial institution, he is allowed to borrow less than, or up to a credit limit at any point of time. He or she will only need to payback the interest on the amount borrowed. A line of credit is a more flexible form of credit, where there is no restriction on the amount borrowed, as long as it is below a preset limiting figure.

The repayment plan is also flexible. Line of credit is opted for, by most businesses due to their flexibility of payment and the convenience of borrowing according to need. A line of credit may be secured or unsecured depending on the borrowing limit. A line of credit is somewhat similar to a credit card in its nature. Overdraft line of credit, personal line of credit and business line of credit are some examples of this type of credit offering.

A loan is a fixed amount of money that a financial institution grants a borrower at a fixed or floating interest rate. The repayment period is preset, along with the number of installments in which the principle and interest needs to be repaid. This is the most commonly availed type of credit. When a large amount of money is needed, which needs to be paid immediately, opting for a loan is the only option. There are many types of loans and they may be secured or unsecured depending on the amount borrowed.

Distinctive Features
A line of credit is ideally suited, when you need to borrow small amounts of money in an emergency. Many people open a line of credit to prepare for unpredictable expenses that may arise. The low interest rates offered on lines of credit, along with easy repayment plans make them attractive options. Loans are the right credit type to opt for, when you are looking for a large sum of money with a long repayment period. While line of credit is a short term debt option, a loan is a long term debt option. If you compare home equity line of credit with loans, the difference is largely the convenience of paying back money, without any fixed payment schedule.

Depending on your requirement, you can either opt for line of credit or loan. Loan remains the default choice when you know how much credit you will need, and are clear about the repayment period. However, if you have a variable credit requirement, it makes sense to opt for a line of credit instead. Consult a financial advisor who can help you decide which among the two, is ideally suited for your requirement.

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Benefits of Hiring an Advertising Agency

Advertising has reached a very high level of importance in today's fiercely competitive world. Cutthroat competition has compelled manufacturers to review their selling strategies and come up with unique and innovative ways to sell their products. This has in turn prompted them to hire advertising agencies to do the legwork for them. There are many reasons why hiring an advertising agency makes sense to a company. A few of them have been discussed in this Buzzle article. Go through them and you'll know the benefits of getting your products advertised by professionals.

Exposure and Experience in the Field
The biggest plus point of hiring an advertising agency has is the immense level of experience that it holds in comparison to a company that is hiring it. Take your own company for instance. If you want to come up with a novel idea to sell your product, you will spend a lot of time and resources trying to come up with the perfect ad. Market research, creativity and the actual realization of the idea can take a very long time by which time the whole demand focus may shift totally. On the contrary, when you hire an agency, due to its tremendous experience in the field, it will know exactly what to do, when to do it and most importantly how to do it! This will not only save you the headache of coming up with your own idea, but it will definitely be better than what you can come up with. Plus, they have a constant exposure to different types of clients, customers and consumers. This gives them an edge over a layman in coming up with ideas to sell a product.

Professional Approach to the Work
Due to the high level of experience and exposure that agencies have over laymen, they also have a strictly professional approach to their work. While a company may consciously or unconsciously end up bringing an emotional approach to the ad, an agency leaves no room for this. However, this does not mean that the client's sentiment is not taken into account. It is the combination of the client's sentiment, the ad agency's creativity and the customer's demand that together make the perfect ad. The agency sees to it that all these ingredients are present in an ad. It adds a level of finesse and class to a crude idea that the client has, thus making its professionalism clearly visible.

Well Versed with Tips and Tricks
Another edge that an advertising agency has over its clients, and this is a point that proves its expertise in the field, is the knowledge of the tips and tricks in transforming a dream of the client into his reality, and in turn, a dream of the customer. An ad agency is a knowledge bank of all the small intricacies that go into making a successful ad. This knowledge comes only from experience. For instance, just like a journalist will know exactly what questions he must ask in order to sensationalize a celebrity's interview, an ad agency knows what appeals and which audience to target and also how to do it, when coming up with an ad campaign for a client.

Media Selection Ability
Choosing an advertising agency to do your work for you has one more very important advantage. Due to its exposure, experience, knowledge and indispensable resources, it also has the ability to know and choose the appropriate kind of media to showcase your ad campaign. Because they are constantly in touch with the media world, they know which media is suitable for what kind of products, they know what demographic to appeal to through which media and also know which media costs how much and how to use these costs to turn in the favor of the client. The agency can guide the client about the above and thus ensure that the campaign is successful.

Diversion of Workload
A company is only as good as the products it manufactures. Hence, the prime focus of any organization should be on the products or services that it manufactures. For your company, the prime focus should be the product that you wish to sell. And for the advertising agency, it is the ad that it makes for you. Needless to say that when the agency's focus is on your product, you'll have less to worry about with regards to marketing strategies and selling tactics. All you have to concentrate on is manufacturing and leave the rest to the ad agency. It will fulfill its responsibility towards you as its client and you will have an impressive ad campaign for your product. Everyone does his own job and reaps his own benefits.

So, it can safely be said that hiring an advertising agency is an endeavor that you can take up in the best interests of your company. After all, a job done by a professional is much superior compared to that of an amateur, isn't it?

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How Advertising Will Looks Like In The Future?

Advertising dates back to the time when owners used announcers to advertise about their products in towns. Advertising is as old as 4000 B.C. and the first advertisement which appeared in the newspaper was in June 1836 in the French newspaper called 'La Presse'. From then, advertising has changed by leaps and bounds. From simple announcements to growth of new avenues, the advertising model has challenged the advertiser to actually use the term 'think out of box'. An advertiser's job has become more and more demanding not just in terms of increasing the revenue of the product, but even understanding the mindset of customers and clients. Many companies are trying to carve out a niche for themselves by trying to create new avenues every time like Apple products do. The situation grows more complex as people have started hating advertisements and do not want to see it during their favorite shows. Here the advertiser really needs to balance such a situation by carefully exploring alternatives and delivering it to the customers in a form, which will attract their interest.

Future of Advertising Agencies

In many papers, you must have read a question which would compel you to think, what will be the future of advertising? One thing is almost certain - advertising cannot and will not be extinct. In fact, advertisers are going to employ more and more research methods in order to successfully understand the client and the crowd.

• With the ever-increasing explosion of forms of digital media, one thing is certainly not going to change - word of mouth advertising, where customers are the spokespersons of the company. Consumers are going to trust their group before making any purchases.
• It is necessary to make consumers the fans or followers of your product. Adding up of fans/followers is being achieved by brands making their presence felt in social networking sites.
• Also the agencies must be able to create catchy ads, which will encourage the consumer to go ahead and buy the product.
• Of course, it's equally important for the agency that the consumer is no longer viewed as a buyer but more as a partner and creator who is going to endorse your brand.
• Another aspect is using analytics for collecting, analyzing and quantifying the data so that the advertiser can understand the impact of the advertisement in the mind of consumer. So it is a necessity to not just form messages, but to create experience which will help in retaining the ad in the mind of the consumer.
• Also, exploring new technologies to advertise is better for long term growth. According to a study, people are bombarded with advertisements that are irrelevant. Thus, avoiding irrelevant ads by the agency must be done as they do not go into increasing revenues for the product.

Changing Times for Advertising

The future of advertising has greatly been dominated by integrated advertising. This modern form of advertising includes forms like digital billboard, social vending machines and online ads and 3-D images.

Digital Billboard: An amazing form of modern advertising is the digital billboard. In the billboard, a camera is installed which is linked to a computer. The images flashed on it change from time to time according to the gender.

Social Vending Machines and Online Ads: These new channels of communication have gained popularity with the people - for instance these social vending machines used by Pepsi were a huge hit among consumers. The advantage while using this machine is, you just have to operate a touch screen through which you can purchase as well as send virtual gifts to your friends by simply text messaging the code.

Three Dimensional Images: This innovative idea which uses a flat screen usually in malls, shops, etc., displays images which have real life effects. Another brilliant discovery made by a Japanese firm is to map out the profile of the customers through facial features. The 3-D images are a new way to convey the message to the consumer. This technology has been successfully incorporated in the movies and now is used by advertisers to display ads in the malls.

The future of advertising is very bright provided the advertiser and the manufacturer take reasonable precautions. Like being truthful to your consumers, though it's a far fetched idea but still it has become a norm. People don't want to trust brands, which are unreliable in delivering their promises. Staying away from excessive advertisements is another option which will guarantee that people will remember your ad more if the message is subtle and simple. Now is the time to change the old conceptions and start embracing the new models, which are the successful mantras in this new world. Concluding this discussion, it's essential to quote Robert C. Gallagher words that say - 'Change is inevitable - except from a vending machine'.

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Manipulation Facts

There are certain things we say in order to convince others of our own ideas. This may happen in our day-to-day life, or at the workplace, or when a student tries to convince his teacher to get a higher grade at an exam, for instance. However, there are ideas that are very well phrased and which most often act in an irrational manner on the target subject and with which one has greater chances of success. Such methods are generally used in the manipulation through publicity.

Manipulation through advertisements uses many persuasion techniques and it is best for us to be familiar with, in order not to be fooled into buying certain products and services we don't really need or even want. It's good to know such techniques no matter on which side you are - whether you are a buyer or a seller, whether you are trying to persuade someone to accept your ideas or buy your things, or you are someone who wants to buy the right product/service, without being unwillingly manipulated and making wrong choices. The success of applying certain strategy depends on the situation. Thus, some work better than the others on a certain scenario, but it all largely depends on the degree of discretion one uses in the act of trying to manipulate others.

One of the simplest techniques of manipulation through advertisement is that of temporal distortion. Sometimes the best way to influence the target person is to act as the thing you want to get from that person has already taken place. Thus, you can refer to a decision that person is trying to make as if it was already made. If you speak to that person as if he/she had already accepted your proposal and even enjoyed it. Also, associating pleasant images with the use of Past Tense makes the proposal seem actually irresistible.

It is known that people feel the need to reward the favors they have been made. A favor can cause feelings of gratefulness and as a result, the subject feels the need to free himself/herself from the psychological burden of owing something to someone else. In order to achieve this, people become more willing to return the favor, even with a greater one than the one they have received. The principle of reciprocity is made of the need to repay a favor, whether it is asked for or not, immediately after accepting it. This typically human feature transcends any cultural or racial differences, regardless of the nature of the favor. This favor can refer to most anything, from a simple smile to physical labor or little gifts. This principle is very easy to use. You offer something to someone and then just wait to be rewarded, or you can give an idea about how to be rewarded.

Yet there is another very efficient method of using this principle. It is more powerful than the simple offering of a gift and then expecting for a reward in exchange. At the same time, it is a bit more subtle. Thus, in order to increase the chances to receive a favor is to ask for another type of favor, which has a higher value and meaning than the one you intend to ask for. The request will most certainly be refused, because the favor is too big. After this refusal however, the request will be decreased to the smaller and real one, the one the asker has initially thought of. Statistically speaking, this last mentioned favor has almost 100% chances. This may happen because of the fact that cultural norms dictate that in exchange for a concession, you must make another concession.

Because the first request is made slower, and thus reduced, you actually make a concession, and the target-subject will be forced to make a concession himself/herself and will do that by accepting the second request, the smaller one. This method works very well because cultural norms have the tendency to overcome even logic.

Although all these may seem as ways that can be used by teenagers to manipulate their parents for instance, and obtain things from them, the grievous thing is they are actually largely employed by the mass media and especially by the advertising industry, without most people's awareness of what is actually going on and how they are fooled and wronged. Beware!

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See How Mere Exposure Affects Advertising

The objective of advertising is to entice consumers to develop a preference for a brand over others to increase sales for the company. This is just the truth in plain, but, brutal words. You may think that, as a consumer, you are immune to these advertising tactics and that, you buy what you think is value for your money and suits your tastes. So, let me burst that bubble for you and dish out some dirt on advertising, called the 'mere exposure effect'. Apart from creating brand awareness, advertising gets you so familiar with a brand that you naturally start preferring it. It mostly has a positive effect on prospective consumers because nobody really looks at an advertisement and thinks, "Hey, I am not going to buy this brand because its advertisements just keep popping up everywhere!". What you may perhaps think is, "It looks good, maybe, it is worth a shot". We perceive absolutely no harm in trying out a new brand once, and judge for ourselves if the product or service is really what it promises to be in its advertisements. Advertising at least becomes successful in alluring you to make the first-time purchase. Today, we are a consumer-centric global economy and consumerism is our new religion.

Mere Exposure Effect in Advertisements

Robert Zanjonc, a social psychologist, advocated the effect of a stimuli on a person that he was repeatedly exposed to. He said that when someone was exposed to a stimuli, with every exposure, the person was liable to become more familiar with the stimuli and fear it less than before, until a point is reached when the person does not react negatively on being exposed to the stimuli. It may also be said that the subject starts exhibiting positive reactions to the stimuli. This theory was applied more universally, than being specific to the effects of advertising, and pointed towards the cognition and affect relationship between the subject and stimuli. An experiment conducted by Professor Charles Goetzinger, in 1968, at the Oregon State University further supported this theory. The experiment showed how human psychology works and reacts when an external stimuli is introduced in the environment. It starts with hostility and soon turns to inquisitiveness, eventually encouraging the subjects to adopt a more positive attitude towards it, following repeated exposure. When you have more face time with a product, prompted through advertising, you become familiar with it even before you have bought it. Constant exposure through television advertisements, print advertisements in journals and magazines, billboard advertising and even online ads create the effect that advertising is aiming for.

One of the best examples of the mere exposure is, as a matter of fact, advertising. However, take the example of online advertising itself. When you are surfing through a website and stop by at a particular web page, there is a high probability that there is at least one online ad on it. It may be a flashy banner or a simple text ad of a few words. However, you cannot negate the fact that you are aware of what that ad is advertising. You cannot ignore an ad when it suddenly pops between the text that you are reading. In fact, the more attractive the online ad is, the more you are likely to get distracted by it and spend time viewing it. Over time, as a person repeatedly views the ad, he will, as expected, show more inclination to the product that was advertised as compared to other products that he may not be familiar with at all. However, the mere exposure effect in advertising is not all that rosy. It comes with its cons. Although, advertising may successfully expose the product or service to more prospective buyers, it brings with it more associations which may or may not always be favorable. You ultimately end up buying what you really liked about the product, based on your perception of its advertisement, your need for the product and/or reviews from other sources. This is not totally contradictory to the previous statements. Advertising can indeed only entice you to make a purchase and in the end, it is up to the consumer's buying decision to take that step.

There is definitely a reason why companies have an entire budget dedicated to advertising and they shell out so much moolah just to attract more customers and increase their buyers' base. It is another thing how advertising moguls play with the consumers' psychology with brilliant campaigns and effective advertising strategies that are the perfect concoction of carefully selected colors, fonts, pictures and words, in an attempt to manipulate consumer behavior. It's not surprising that the supermarkets don't keep the milk at the end of the aisle for nothing.

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How to Manage your Business

Have you always wanted to own a small business that will allow you the opportunity to be your own boss? While starting your own cafe or book shop may seem like a distant dream, once you have your initial capital in hand, running your own business can be child's play as long as you learn to manage a business effectively. If you want to manage a small business, then you need to be aware of the responsibilities that come with the job. Depending on what the business is, your responsibilities can range from ordering the things you need, managing the employees, assigning their duties, managing accounts and finances, marketing and advertising the place, customer relations, etc. While your key responsibilities can seem overwhelming, with effective management skills you will be able run an organization pretty well.

Managing a Business Effectively

Learning to manage a team and effectively turning a business into a profit making organization requires you to imbibe a lot of skills and work on several things like leading a team, managing employees, etc. Here we tell you more about how you can learn to manage a business.

Leadership
One of the most important skills that any effective manager needs to possess are leadership and management abilities. Without proper leadership a business can flounder. You need to able to make good decisions and solve problems as and when they come. Being a good leader does not mean that you take all the responsibilities on your head. In fact it means that you need to be able to delegate responsibilities and ensure that your employees perform all the tasks that they have been assigned effectively. Another important thing to keep in mind is that while managing business you are responsible to create strategies in order to develop the business. While learning about what makes a good manager, many people forget that one of the most important duties of a manager is not only to ensure that the business is run smoothly but also that it makes profits. As a leader you need to think of opportunities and possibilities that will allow your business to grow. It is important to understand and imbibe this.

Employee Management
As a manager it is your duty to ensure that your employees are motivated and give their best to the job at hand. Ensure that your employees are satisfied and that you are approachable in case anyone has any problems. Treading the fine line between being a boss and a colleague is important. While they should know that you are there to solve their problems, they should also be aware that at the end of the day the employees are reporting to you. Good employee management also entails that you treat your employees with the respect they deserve. Avoid reprimanding or disgracing your employees in front of other employees or customers. Never get into petty fights with them or bad mouth them. If an employee confides in you about something, it is important that you are discrete about the same. Good qualities such as these and managing business properly will ensure that you command respect from your employees.

Marketing the Business
One of the main duties of a manager is ensuring that you market and advertise your business well. This is crucial for successfully running a business. While trying to manage a business, it is also important that you learn what is critical to marketing a business like proper market research, good customer service, deciding on your target audience, proper packaging and pricing, advertising your business properly, etc. While you can always use traditional advertising techniques like newspaper ads, radio spots, etc, as a small business one area you must target are social networking sites. Using technology for business management and advertising gives your business a much-needed edge.

Awareness about Regulations
Effective managerial skills need to be combined with an awareness about the laws and regulations that you need to follow so as to ensure that your business does not become one of those organizations that is charged with non-compliance. Pay your taxes on time and understand taxation processes. If you have a successful business it is only fair that you pay what you are due for. Insure your business against any probable accidents and mishaps. As an owner cum manager there are some important decisions that you will have to make which includes taking proper insurance for your business. It is also important that you understand the legalities that are connected to your business. While you do your bit, it is essential that you know where to go for assistance in case you are being impacted by unfair regulations. Understanding the laws that protect you and knowing what resources are available to you for help, are important while managing business.

While these are some of the necessary skills that you need to educate yourself about while learning to manage a business, it is also important to learn to manage a business budget. Understand your finances and capital; if you are borrowing money for your business from a lender then plan out how you are going to go about repaying the money. Financial planning and growth are important aspects of business management. As important as it is to manage your business effectively, an important aspect of management development is also to plan your exit strategy. It is important to learn how to go about selling or shutting down your business if need be. Now that you know what are the different things that go into management of a business, you just need to practically apply them in the management of your business.

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Business Management and Administration

If you are someone who enjoys working with people, and have an ability to motivate and lead them, if you are a good planner and have been known as an excellent organizer - you are simply cut out for a career in business management and administration. To enter this profession though, you will need to get into a business school and get an MBA degree. Below is some useful information on the kind of training, studies and experience you can expect at a business school during your degree, followed by the jobs that you will become eligible for, once you pass out of the course.

In simple words, management can be defined as the function of utilizing and managing all the available resources in the organization, such as human resources, material resources and financial resources so that the goals of the organization can be achieved. A degree in business administration will prepare you to perform this function of management in an appropriate manner. Here is a list of subjects that will be taught to you at a business school, followed by a list of skills that you will acquire by the time you complete your degree.

MBA Subjects

• General Management
• Human Resources Management
• Financial Management
• Marketing
• Business Strategy
• Economics
• Accounting
• Business Ethics
• Information Management and Technology
• Business Laws
• Company Structure and Organizational Management
• Entrepreneurship
• Logistics
• Economic and Financial Affairs
• E-Commerce & Technology

Management Skills

• Planning
• Organizing
• Leadership
• Decision-making
• Communication (Spoken and Written)
• Problem Solving
• Staffing
• Controlling
• Customer Relationship Management Skills
• Negotiation Skills
• Team Building

Today, education has evolved a lot, owing to changes that have taken place in the corporate world, due to globalization and technological advancements. There have been new subjects introduced such as e-commerce, international finance, information technology, etc. and the emphasis is shifting more on practical experience and learning by way of guest lectures by industry professionals, case studies, internships, presentations and group assignments.

Careers in Business Management and Administration

A person who has an MBA degree, years of experience in the corporate world and the desired skills, has the potential to reach the highest position in an organization i.e. become a CEO. However, to reach such heights, he needs to have the experience of heading various departments and performing all functions such as planning (setting individual, departmental, short-term and long-term goals), organizing ( setting supervisory-subordinate structures, fixing responsibilities, communication flow structure, etc), hiring (interviewing applicants and selecting workforce), directing (motivating and leading people to achieve maximum employee output) and controlling (taking performance appraisals, attaching "rewards and punishments" to ensure results).

An MBA degree will open up a lot of job avenues for you in the corporate world. The salaries at the entry-level positions are pretty competitive too. According to the Bureau of Labor Statistics, 2009, an entry-level managerial position, can fetch you anywhere between $31,500 to $ 110,000, with the finance specialization being the most well-paying. A senior manager can expect anywhere between $62,000 to $1,000,000, depending upon the size of the company, his work profile as well as the location.

As you can see, this career is indeed well-paying. So start career planning today and get into a key business school, to kick start your management career. All the best!

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Business Acumen

It is a well-known fact that every businessman cannot become a legend and every business cannot be extremely profitable. The definition of business acumen is related to the ability of a person to run his venture successfully. Business skill can be developed by consistent work and concentrated efforts. Before we know how to develop these skills, let us first understand its meaning in detail in the next section.

Meaning of Business Acumen

Business acumen is more related to understanding a business thoroughly. Unless a person understands what is the exact nature of his business, what are the challenges before him and how is he supposed to overcome them, he cannot set up his brand in the competitive market. A person with business skills takes the right decisions at the right time for the benefit of his organization and ensures increasing profitability. Identifying business opportunities successfully before peer companies can help generate high revenues and profits. These skills also includes identifying the potential threats to the organization and taking preventive measures to deal with them. Now, the main question before many people is whether this skill can be acquired or is it only a skills with a few people. The answer to this question is simple - it is possible if you develop some qualities. The suggestions given below on developing the skill will help you understand things about entrepreneurship better.

Observe Functioning of Established Businesses
Keen observation can help a person learn a lot. So, if you wish to acquire skills like the big corporate leaders, you need to see how the established and successful business houses run. Try to understand what makes them different from the rest of the companies and how they keep up their leadership place despite several hurdles and stiff competition, leading to good business management. Note down some important points and start training yourself in that direction.

Get the Basics Right
Improving your business skill is possible only if you have learned your basics thoroughly. So, the main rules and regulations of business should be clear to you completely. The skill of people well-educated in the fields of management is high and hence you should go through training programs to learn basic management concepts. A person will automatically develop skills while he applies these concepts practically. He may find things difficult initially, however, every failure becomes a learning experience and a person improves the way he looks at things.

Change the Way You Think
To see an improvement in your skill and decision-making abilities, you need to change the way you think. Try to adjust to the changing ways of business by learning new technologies which are constantly being introduced into the market. By doing so, you will be able to match up with your peers in a systematic way. You also need to change your attitude and work hard for taking your organization to the position where you want it to be.

Implement your Plans
Business skill cannot be achieved unless you carry out your plans. So, you need to start by making changes in the way you function to see the results in the time to come. The thinking process can develop only when you try to bring in some creative changes. Every experiment you do with the functioning of your company will help you learn new things and be more knowledgeable.

Business acumen can be developed by taking into consideration the above mentioned factors. So, with a hope that you will use this information fruitfully, I would like to sign off here. Good luck!

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Choosing the Software for Your Business

Whether you’re starting a new business or expanding an existing one, the software you use can make things much easier - or much more complicated. There are about a zillion different programs of varying function and capability, ranging in price from a few hundred dollars to a few hundred thousand dollars - but that doesn’t mean you should necessarily go for the most expensive one you can afford.

Cost is always a factor in business management (though it may not be the leading factor), so the goal is to find software that does everything you need it to do without paying for bells and whistles or functions that don’t apply to your business.

Before you even start looking at individual programs, carefully evaluate your needs - then simply find the program that fits them (don’t ever alter your needs to suit the software).

Business Type

If all you need is general accounting, your business type doesn’t matter much when it comes to software. Heck, you could take care of that yourself with a well-designed spreadsheet on your existing software. More specialized programs, however, are designed with certain businesses in mind.

Restaurants may want a program that also handles recipe cost and allows front-of-house to back-of-house communication. Medical offices may need something that integrates insurance coding. Manufacturers could use materials tracking and supply chain info, while service-based businesses may prefer a task-timing option.

Business Size

There is software out there that will all but run your business for you - but they may cost several times the total value of your business itself. You don’t need an M.B.A. to recognize that as a bad investment. Chances are, that mega-software has entire areas of function that you just wouldn’t use.

The right software investment is one that doesn’t require a tremendous loan, and provides perfect functionality for your individual business. That means that there should ideally be no software feature that you’re not using, but it shouldn’t lack anything you need. Many smaller or mid-range programs offer add-ons at additional cost, which allows the software to grow with your business. This is the perfect scenario, as you can use the basic version for as long as it serves you, then pay for individual upgrades as they become necessary.

Features

Like any software developer, the companies that make business management software often load the thing with a bundle of tiny little features that inflate the price without adding any real value. If these are optional add-ons, avoid them. If they are bundled into the package and you cannot opt out, look for a more basic program.

Some of these features may seem like a cool idea, but they’re only worth paying for if you’ll actually use them. For example - smartphone synching - sure, it’s a neat idea and very technologically sleek. But do you really see yourself doing payroll from your phone? Mobile alerts and reminders are another - if you open the program everyday anyway (this is your business, after all), those very same alerts will pop up on your home screen. Do you really need them sent to your iPad?

Support

No matter how good software is, it’s always made better with good customer support. Your fancy new software is useless if you can’t figure out how to set it up in the first place. If you do try to set things up yourself on a wing and a prayer, pray that you don’t type anything in the tax info section - or the IRS may come calling. Mistakes have a way of screwing you down the road.

A company should stand firmly behind its product, and that means providing you with a rep who will train you and your staff to use the software to your utmost advantage, and set up any necessary networks, new terminals, etc. Larger software companies should have local reps that will actually come to you when there’s a problem, instead of forcing you to spend hours on the phone with tech support. This is part of what you’re paying for. Of course, these kinds of features don’t come with the cheaper programs - then again, the simpler programs usually don’t warrant that kind of hand-holding.

Now that you have an idea of what you need, start looking around. Do your own research before you even speak to the first sales rep, because the pitch is hard and will throw you off track. Take advantage of trial periods before you buy, and get feedback from applicable staff before taking the final plunge.

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New Job Tips For The First Day

A new job is synonymous with meeting new people, adjusting to a new environment, doing new work, and yes, coping with a new boss! With so many new things round the corner, you feel excited as well as nervous. Over-excitement and nervousness can mar your impression at the workplace on the first day, and this is something you don't want happening. In today's materialistic world, everything from your attire to your demeanor has a say in creating a favorable impression.

How to Make Your First Day at Work Perfect

1. Do the Homework: Keep yourself abreast with all the latest developments in your industry. This preparation will come handy, if your employer questions you to test your knowledge about current affairs. Your awareness also conveys your excitement to the employer. Go through some books and take the help of the Internet to meet this purpose.

2. Sleep Well: A good 7-8 hours of sleep is essential for the body and mind. Sleep refreshes us, and prepares us for the hard work of the next day. On the first day, you must look your best, and sleep will help in the same.

3. Have a King Size Breakfast: Nothing can beat the frustration that stems from an empty stomach. Moreover, you need to be extra focused on your work on the first day. Thus you should prefer to have a healthy and heavy breakfast in the morning that will keep you full for a longer time. Ensure that your breath is fresh after having breakfast.

4. Your Attire: Your dressing sense speaks a lot about you, and so needs special attention too. Dress as per the culture at your new workplace. If you are not aware of the dress code, prefer to dress formally than casually. Casual and revealing outfits should be avoided by women as well as men.

5. The Important Things: Often out of nervousness, candidates forget to take one important thing or the other. Thus before stepping out of the house, take the necessary documents and accessories with you.

6. Timing: Make it a point to reach office early so that you get to bond with others around. It will create a bad impression if you reach the workplace late on the first day itself. If your workplace is far, you should learn about the route in advance and decide on the time it takes to reach there. Plan your schedule such that you reach office well on time.

7. Etiquette: To portray yourself as a congenial candidate, you should follow proper mannerisms and etiquette. Small things like wishing people good morning or saying hello at the workplace is important. This conveys to others that you are open-minded and friendly.

8. Ask questions: Coming to the work related tips, pay attention to lectures given during induction, and clear all your work related doubts by cross-questioning the concerned authorities. This also facilitates communication between you and others and thus you will get to know others at the workplace.

9. Be Interested: Don't be too talkative or try to intrude the space of others, likewise do not keep yourself aloof and restricted. Keep a friendly face and have an open attitude to others. Be willing to start a conversation with others; this way you bond with the people at work.

10. Maintain a Calm Disposition: Employers secretly monitor the work of new recruits, to see how they work or behave with others in the office. Thus, maintain an alert and calm disposition throughout the day and keep yourself interested. Similarly, you should present yourself confidently and pay attention to things like eye contact and body language.

11. A Warm Goodbye: This is a part of etiquette. Wish goodbye to people with whom you had communicated in the day. Be keen to follow these manners, since they help in creating a friendly impression.

Tips to Remember:

1. When you introduce yourself to others, make it a point to remember their names, to avoid facing awkward moments on the next day.
2. Keep yourself away from the office gossip groups, and be more work focused, at least in the initial days on your job.
3. Directly communicate with your supervisors if you have any trouble during work.
4. See to it that you have a sound background knowledge of your company.
5. Participate in after-work activities, if there are any.

Rather than making it seem like a battle to conquer, look at your first day at work as an exciting opportunity to meet new people. Be cool and friendly, and soon you will look at the workplace as your second home!

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Richard Branson Biography

Making a lot of mistakes and learning from them is what life is all about and who else can define 'impossible' better than this stalwart, who has made it large in life. You can call him the man who believed in his abilities, or the young boy who was dyslexic and a school dropout. Sir Richard Branson, noteworthy to be regarded as a touchstone for youngsters, has always believed in the power of his dreams and the secrets of his heart. Sir Richard Branson, though a billionaire, is renowned for his approachability and ability to succeed against all odds.

Sir Richard Branson's Virgin Group is one of the world's most respected and trusted brands. With businesses ranging from communications, travel, financial services, music, recreation, holidays, and well-being, there isn't any sector that hasn't been covered by the Virgin Group of Companies. Sir Richard Branson who believes in taking big risks and receiving equally big rewards strives for quality, innovation and competitive spirit. There is no doubt then why he is indeed the most successful businessman alive today.

Initial Steps to Greatness

Sir Richard Branson was born in London on 18 July 1950. He is the eldest son of Edward James Branson, a barrister and Eve Huntley Branson an airline stewardess. Sir Richard Branson is the grandson of Honorable Sir George Arthur Harwin Branson who was a judge of the High Court of Justice. Sir Richard Branson attended the Scaitcliffe School after which he joined the Stowe School in England. A dyslexic, Sir Richard Branson dropped out of school, and not allowing himself to be defeated by his disability, he developed 'Student' a youth-culture magazine at the age of 16. Launched in 1966, the publication that was completely run by students for students, had sold an amazing $8k worth advertisements in the first edition itself. By the age of seventeen, Sir Richard Branson had initiated the Student Advisory Service, a charity to help young people. Sir Richard Branson married Kristen Tomassi in 1972, but the marriage ended in divorce. He married Joan Templeman on Necker Islands in 1989 at the suggestion of his daughter Holly who was then 8 years old.

Timeline of the Brand 'Virgin'

1970

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Sir Richard Branson ventured into the music industry with his mail order catalog that aimed to sell discounted records cheaper than the existing 'High Street' outlets. Being the first venture into business, it was named Virgin, as suggested by one of his early employees.

1971

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Following the success of the mail order catalog, Sir Richard Branson opened his first record shop on Oxford Street in London. Owing to the huge success, Branson, was arrested and interrogated for charges of selling records that had been declared as export stock.

1973

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Sir Richard Branson along with Nick Powell launched the Virgin Records label in a country estate that they purchased.

1973

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Virgin Records released its first music record with Mike Oldfield's' debut album 'Tubular Bells'. The album went on to become the chart-topping bestseller.

1977

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Virgin Records went on to sign up top music artists and controversial bands like 'Genesis', 'The Sex Pistols', 'Faust and Can', 'The Rolling Stones', and 'Simple Minds'. Virgin Music was considered to be one of the top recording companies in the world.

1983

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He launched Virgin Vision to distribute films and videos for television and broadcasting sector.

1984

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Sir Richard Branson ventured into the aviation industry with Virgin Atlantic Airways and Virgin Cargo. One of the main businesses, it has won him many awards. Virgin Airways is the second largest British International airline.

1984

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Virgin Vision launched a 24-hr satellite music station named 'Music Box'.

1985

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Sir Richard Branson initiated the Virgin Holidays after the successful launch of Virgin Atlantic Airways. It is one of the most successful tour operators in the United Kingdom winning 13 awards and recognition as a consumer super brand.

1987

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Virgin Group invested in the Mastertronic Group, which became Virgin Mastertronic, a computer game software developer.

1992

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Sir Richard Branson sold Virgin Records to Thorn EMI to keep his airline company afloat.

1994

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Virgin launched Virgin Cola and Virgin Vodka.

1996

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Virgin Group ventured into rail services with their brand name Virgin Trains, which offered long-distance passenger services.

1996

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Making another attempt at recording business, Sir Richard Branson launched V2 Music.

1998

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Sir Branson extended his business to the telecommunication sector with the launch of Virgin Mobile.

2000

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Virgin Airlines launched Virgin Blue, now known as Virgin Australia. This year also saw the launch of Virgin Cars Ltd., an Internet automobile retailer.

2004

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Extending his business ventures to space, Sir Richard Branson announced the launch of Virgin Galactic with a promise to provide suborbital spaceflights to space tourists.

2007

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Virgin Media is launched which provides mobile, television, and broadband Internet services in the United Kingdom. Sir Richard Branson along with Al Gore launched Virgin Earth Challenge.

2008

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Entering the healthcare sector, Virgin announced Virgin Healthcare. It also was the year when WhiteKnightTwo - VMS Eve - was unveiled.

2009

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First of its sorts, Virgin Galactic unveiled Virgin SpaceShip enterprise. The year 2009 was also the year when Virgin Atlantic celebrated its silver jubilee.

2010

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Virgin Galactic took its first test flight, while Virgin Produced debuts with 'Limitless'.

2011

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Sky is not the only limit; this can be said for the fact that Virgin took a dive into the oceans with the launch of Virgin Oceanic, a deep-sea submarine.

Joie de Vivre

Sir Richard Branson's flair for risks has made him attempt several record-breaking stunts including various attempts to be the fastest to cross the Atlantic Ocean. He apparently crossed the Atlantic first in 1986 in Virgin Atlantic Challenger II and the following year in his hot air balloon named Virgin Atlantic Flyer. Sir Richard Branson then broke the record by crossing the Pacific Ocean, flying from Japan to Arctic Canada in his hot air balloon in 1991. In 2004, a new record was set by crossing the English Channel in an amphibious vehicle.

Sir Richard Branson has made appearances in sitcoms including, F.R.I.E.N.D.S, Baywatch, Birds of a Feather, Only Fools and Horses, The Day Today, Goodness Gracious Me and Tripping Over. He challenged 16 contestants on the reality show, The Rebel Billionaire: Branson's Quest for the Best. Sir Richard Branson has also made appearances in films like, Around the World in 80 Days, Superman Returns, Casino Royale and London Dreams.

In 1993, Loughborough University awarded an honorary degree of Doctor of Technology to Sir Richard Branson. In the year 1998, Branson released his autobiography titled 'Losing My Virginity', which went on to become an international bestseller. He was knighted in 1999, and earned the title of 'Sir' for his 'services to entrepreneurship'. He was also awarded the ISTA prize for developing the suborbital transport systems with Virgin Galactic in 2011. He was awarded the President's Merit Award for his contribution to the music industry.

With the intention of opening a school to support budding entrepreneurs in South Africa, Sir Richard Branson set up the Branson School of Entrepreneurship in 2005. His non-profit organization, Virgin Unite aims to build a better world for everyone. He opened the second center in Jamaica in 2011. He is a signatory of Global Zero, an initiative made for the elimination of nuclear weapons.

A person who is not afraid of taking risks and making mistakes - that's what Sir Richard Branson is all about, for his life revolves around indulging in his passion. " Oh, screw it, let's do it"; that's the philosophy that Sir Richard Branson lives by and I guess it's undoubtedly a mantra we can apply to our lives as well.

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What To Be Considered Before Starting Your Own Business

Let’s face it - working for someone else can really suck. Who among us hasn’t fantasized about having our own business? No overbearing boss, a team full of stellar talent, and customers beating down the door. You call the shots and you reap the reward - makes it much easier to get out of bed at 6:00 AM on a Monday morning.

The thing is, your fantasy sort of begins in the middle - it doesn’t include the extremely difficult start-up phase. It doesn’t include up to a year of little-to-no income, working 16-hour days, or appeasing difficult clients because you just can’t afford to let one go.

Starting your own business can be rewarding, and if the stars align, profitable - but it is not something to be undertaken lightly or on the spur of the moment.

Do A Self-Check

A business owner absolutely must be a self-starter, a decision-maker and the sacrificial lamb. Are you all of these things? Be honest. Are you willing to double the hours you work? Are you willing to make the tough calls and deal with the consequences when there’s no good answer? Are you okay with paying your creditors and employees first when it means you may not take home a paycheck that month?

Do you have enough savings to not only start the business, but also to pay your bills for up to a year (at least six months)? Will your spouse resent the extra burden of maintaining the home, family and income while you toil away at launching your business? These are vital questions - poor planning causes businesses - and marriages - to fail before any kind of stability is achieved.

Know Your Talents

Most people start a business based on something they happen to be good at - but make sure you’re really, really good. Good enough, in fact, that people will pay you to what you do. Your mom may love your cupcakes, but how will they go over with total strangers who are paying $4.00 each for them? Whatever it is you do, make sure you do it perfectly.

Your talent doesn’t have to be tangible, either. There is an entire class of entrepreneurs whose talent is starting businesses. Some specialize in a general field, but others take all comers - these people are very good at spotting trends and people with the talent to bring them to market. Once the business is solvent, they sell it for a nice profit and move on to the next project.

Look for the Money

Once you decide what you’re good at, figure out a way to make money from it. Building toothpick houses may be fun, and you may be the best toothpick carpenter around - but the demand for toothpick cabins is low. Perhaps you could apply your skills to general model making and market yourself to architects and designers, who pay top dollar for 3D representations of their designs.

Musicians are a dime a dozen, but very few make a living wage by playing music, so many give lessons. The market for great moms likely only extends to your kids - try opening a daycare to spread your skills around.

Look for a way to present your talent that will make people think they cannot live without it.

Do Your Homework

You’ve identified your talent and your product, now you must make sure it’s feasible where you are. Say you want to open a Mexican restaurant, but a quick Internet search shows that there are already a dozen Mexican restaurants in town - you’re almost sunk right out of the gate, because competing with already-established businesses that are so similar can easily kill a struggling start-up.

Do another Internet search - are there any good steakhouses? Seafood restaurants? What about bakeries? By shifting your focus slightly to one side, you’ve drastically reduced your competition and increased your chance of success.

As an entrepreneur, your homework also includes learning the business law in your state, county and city. Find out what licenses and permits you need, what zoning laws apply to you, what inspections and certifications are required, and the time frame for getting all these things together.

Once all this is finished, congratulations - you’ve taken your very first step in learning how to open a business. Now go find a building, design stationery and a website, write employee handbooks and job descriptions, create your business plan, find financing, hash out an advertising budget... and get to work.

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All About Personal Finance for College Students

College is often a student’s first experience with total independence, and the natural tendency is toward hedonism. You will undoubtedly spend the first month or so methodically doing all the things you could never do at home. This is totally fine and completely natural (but keep it safe, guys) - as long as you calm down and get to work once the rebellion is out of your system. Because now you have to act like a grown-up person, with finances and everything.

Seriously, it’s incredibly easy to graduate college with a mountain of debt, and don’t assume you’ll snag a high-paying job right away - you won’t. So you’ll most likely be underemployed, badly paid, with crippling monthly bills. Then six months later, your student loans come due. Of course, you’ll get a promotion or a better-paying job eventually, but in the meantime, those bills are still due. It’s better to just avoid the debt in the first place.

Avoid Loans

Avoid student loans like the plague. Apply for grants, chase scholarships, work and save, do whatever you have to do to avoid loans. If you can’t afford your dream school without them, look into cheaper schools. Or, take your core classes at a community college (cheaper!), then transfer to the big school for the classes that really count. You’ll end up paying for fewer credits, but you’ll still have the fancy name on your degree (savings!).

Student loans last forever. It’s not unusual to graduate with over $100,000 in loans, and those payments start six months after graduation. And they can be as high as $800/month, or more. And you’ll be paying them off well into your forties. Every month. Whether you’re flush with cash or not. If you default, they can (and will) garnish your wages and take any tax returns until you’re paid up. Declare bankruptcy if you want, but the student loans stick with you. Defaulting also destroys your credit, so forget about ever owning a house, car or credit card. Oh, and the interest rates can be as high as 19%, so it’s actually possible to watch your balance climb as you make payments for awhile. Yeah.

Work

College is expensive, even on a day-to-day basis. If you can manage it at all, have a part-time job while you’re in school. Look for night jobs that won’t interfere with your classes, or try to schedule classes in blocks to leave the most free time. The trick is to not work so much that you don’t have time to sleep or study, because flunking out definitely doesn’t do you any favors.

Even if the pay is crap, having a few extra dollars in your pocket really comes in handy when you’re starving and the cafeteria’s closed. Or you need extra supplies for a project or something. Part of the point of college is to learn how to be prepared and self-sufficient.

Eat Smart

Don’t automatically buy your school’s meal plan - investigate first. Some school cafeterias are actually pretty expensive for three meals per day. If you’re allowed to have a mini fridge, microwave and hot plate in your room, you’re golden. Be a grownup and cook your own food. This will come in handy later in life.

Whatever you do, don’t eat every meal out, and limit convenience store runs. It’s tempting because you’re tired and overworked, but getting ripped off is never fun.

Credit Cards? Maybe.

Be wary of credit card offers. Discuss them with your parents first. Look for low rates and no annual fee. If you find a great offer, take it - but be responsible. Don’t treat it like free money, because it’s not. It’s helpful for real emergencies, like car repairs and medical issues, but do not rely on it for everyday expenses. Treat it like it’s not even there. Pay off your balance at the end of every month, and NO LARGE PURCHASES! Irresponsible credit card use is one of the quickest roads to bad credit and a lifetime of debt.

Being a penny-pinching miser during college is one of the best things you can do for your future (the other is graduate), but it can be hard. You’ll see people living it up, blowing money on booze, designer clothes, video games, cars, etc., and you’ll be jealous. But patience is its own reward - five years from now, those people will be asking you to cosign loans because their credit is shot and so is their car. Either that, or they’ll be taking the bus to the four jobs they need to work to pay off their debts.

So don’t be one of those people. Graduate debt-free.

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