How Does a Money Market Account Work?

If you’ve made your cash reserves and simply have saved in a traditional savings account, maybe you need to reconsider how you’re storing your cash. Opening a money market account is an advanced step from a savings account once you’ve stored a certain amount of cash.

However, this type of account comes with certain pros and cons, therefore, it’s necessary to understand what it is and how it works. Let’s explore more with Mehul Mathrani.

What does a money market account do?

The most interesting aspect of opening a money market account, mainly compared to a savings account, is that it normally offers a higher rate of interest. Also, it offers you the flexibility to access your cash as you need it.

Money market accounts considered a low-risk way to accumulate your money, similarly like a regular savings account, as it offers FDIC-insured up to $250,000. In case you choose a credit union to open an account, your funds are correspondingly insured by the National Credit Union Administration.

Your interest can accrue day-to-day, monthly, quarterly, or annually, it all depends on your financial institution. The more regular the accrual, the more money you’ll make over time, and all thanks to the compounded interest.

To credit cash into your money market account, you can choose any method you use with other savings accounts, which includes electronic transfer. In case your account is with a financial institution that has physical branches nearby, you can also choose check and cash deposits.

Another benefit in comparison to a savings account is that you will get both a debit card and a chequebook that is associated with your account, letting you make withdrawals at your convenience.

This preserves your funds enormously liquid so you can easily use them during a financial emergency. However, it comes with some limitations on how frequently you can make withdrawals, so make sure to keep yourself updated with the restrictions that occur when you choose a money market account.

Check Out the best money market accounts for 2019

Let’s explore 2019’s best money market accounts. You will find a huge variety of banks offering diverse minimum deposits and a few of the most competitive APYs on the market. Here is a brief overview of Mehul Mathrani top picks to help get you started.

BBVA Compass

BBVA Compass at present offers an APY of 1.80%. You can get your account open online with a $25 minimum opening deposit. They permit you up to 6 withdrawals per month charges free. You can also take the benefit of their award-winning mobile banking app and can do 24/7 access. It’s a great option for those who are just beginning to start their longer-term savings.

CIT Bank

CIT Bank is considered one of the lowest minimum balances as compared to other online money market leaders. It allows you to open your account with at least $100 and enjoy the benefit of a 1.85% APY. And above, there are no charges at opening or for monthly servicing.

AbleBanking

This is a money market account with allowing a low minimum deposit of $250 only. Combined with a 1.0% APY, it’s ideal for new savers. An added advantage is that you get same day transfers if you have one more AbleBanking account.

Ally Bank

Ally allow a money market account with 0.90% APY and everyday compounding interest. And not like most MMA, there’s no monthly fee, no minimum deposit, and the APY applies to all balance tiers.

TIAA Bank

The money market account holders at TIAA Bank (formerly EverBank) earn the benefit of 1.5% for the first year as one of the higher APYs. To be eligible, you required a $1,500 initial deposit from a non-TIAA Bank account. After the completion of the first year, your interest rate decline to 1.05% only.

Capital One 360

Your APY differs here as per your deposit amount. You’ll get a rate of 0.85% APY up to $10,000. Once you hit that edge, it increases to 1.60%.

Final Words

So, are you interested in opening a money market account? If yes then do not forget to consider these to top picks from Mehul Mathrani to get started as a beginner.

Originally Posted: https://www.allperfectstories.com/money-market-account-work/

How to Get a Business Loan

A business loan can be really convenient for the self-employed as these can be used for several purposes which include business expansion, meeting operational expenses, providing fresh working capital, purchasing inventory, etc. However, getting a loan is quite harder for the self-employed as compare to a salaried professional, as it involves higher risks.

Let’s explore a list of factors to keep in mind while applying for a business loan with Mehul Mathrani.

Prepare a good business plan

A well-framed business plan is advisable as it will help you in convincing the lender to grant you the funds. Your business plan should clearly define your project’s objective, marketing and development strategies, revenue generation plans, etc. Since lenders consider your revenue generation plans to analyze your business’ viability and repayment capacity, so make sure you have a strong revenue model that explains how you would be repaying the loan on time and your anticipated use of the funds.

Be ready with documentation

Even if you have a perfect business plan with well-explained goals, lack of proper documentation can lead to a complete rejection of your business loan application. Before applying for the loan, make sure that you carry all the required documents which the bank may ask for. Documents needed to complete the process include last few years’ KYC documents, entity’s proof, income tax returns, audit reports, bank statements, etc.

Check your cash flows

Your businesses’ cash flow forecasts play a great role in your business loan approval. A solid history of high revenue generation increases the company’s chances of getting the loan approved. In case your business has a weak history including irregular or low cash flows, you may either have to pay a higher interest or your loan application might get rejected. Therefore, before you apply for the loan, double-check the cash flow statements and forecasts to make sure that your cash flow statement would be enough to repay your loan along with the interest levied.

Look at other borrowing options

As different lenders have variable parameters to assess your business’ creditworthiness. Therefore, do not limit your loan applications to specific lenders. NBFCs, and Digital lenders along with banks, also offer a platform to compare and choose the right business loan and also the suitable lender.

Assess your creditworthiness

Banks and financial institutions consider personal as well as your business credit history while assessing a loan application. A lower credit score shows you as more likely to default and can prove to be unfavorable to your loan approval chances. Hence, it is advisable to evaluate both your and your business credit report to ensure that your loan application isn’t rejected due to lack of credibility.

Identify risks that lenders assess

When you apply for a business loan, make yourself aware of various traits which may be risky for you. Possibly, it includes weak accounting system, low vintage, repetitive defaults in credit history or irregular revenue. Ensure that your business is not considered risky due to the presence of any such traits.

Final Words

So, these are the few useful tips from Mehul Mathrani, to make your business loan application win-win.

How to Finance a Small Business

According to Mehul Mathrani - financial specialist, most of the time small businesses come up short at a higher rate than enormous organizations, consequently default chance is likewise high. This is the reason that private ventures have less access to credit than bigger organizations since loaning to an independent company is more hazardous and more costly than loaning to bigger organizations.

Disregarding every one of the obstacles, there are many financing alternatives accessible to little organizations. We should take a glimpse at some of the financing choices and manage the issue of 'How to Finance a Small Business?'

OWN CAPITAL / SAVINGS

Number one and the least demanding wellspring of a fund for a private venture is one's own investment funds. At any phase of a business, when a business needs capital, a business person can take advantage of his own benefits, for example, – stocks, common assets, land or adornments – to fund-raise. He can either pitch the advantages for fund-raise or take a credit on any of the benefits. Business people can put such close to home capital in their business as value capital, or they can offer credits to their very own organization.

FAMILY & FRIENDS

Parents, sibling, friends & extended relatives who have who have abundance money to loan might will back your business. They may loan the cash to the business as an advance or might will take a value stake in the organization.

BANKS

Banks have an exceptional office committed to giving advances to little organizations. To get a credit from a bank, organizations need to meet all requirements for bank's base criteria. Each bank has its very own criteria concerning procuring potential, yearly turnover, financial assessments, and so forth. There are numerous sorts of credits that banks offer, for example, working capital advances, term advances, advance against property, and so forth. Organizations can pick the sort of credits according to their necessity.

SMALL BUSINESS LOANS

Every nation has certain banks or establishments devoted to giving credits just to independent ventures, a case of such organization in India is SIDBI, in the USA there is SBA. The primary focus of these organizations is to loan cash to private ventures who have not possessed the capacity to acquire financing on sensible terms through typical loaning channels. These substances, for the most part, give cash as credits as it were.

PERSONAL LOANS

In the event that an organization can't get a business credit, the business person should seriously think about getting an individual advance and utilizing it in their business. The business visionary must have a decent record of loan repayment for raising an individual credit. We can get an individual advance by selling a home, gems, and so forth.

TRADE CREDIT

Some independent companies may have providers willing to offer using a loan. Such credit may extend somewhere in the range of multi-month to three months. This is a decent strategy for little organizations to satisfy here and now subsidizing necessities. This is a cheap strategy for a fund for an independent company.

VENTURE CAPITAL FIRMS

Investment firms are a sort of private value firms, the however investor gives assets to just those organizations who are in the beginning times of their business cycles. These are rising little organizations with high development potential. Funding firms put resources into developing organizations in return for value, or a proprietorship stake. Little start-up firms may get an arrangement of rounds of financing from investment firms.

Final Words

These are the few sources to avail finance for business. You can choose one of the sources according to your need and requirement. Mehul Mathrani says, before making any final decision, it is essential to consider all the points and circumstances. In the end, with intelligence and knowledge, you will win the game.

Originally Posted: https://www.allperfectstories.com/sources-finance-small-business/

Importance of Financial Planning in Your Life

Financial Planning plays key role in making a financially stable life. With financial planning you can easily evaluate your long term and short term goals and able to create a balanced plan to meet those goals.

Let’s explore a few major reasons for adapting financial planning in life with MehulMathrani.

Income

With planning, it becomes easier to manage income more effectively. By managing income, you will understand how much money is required for tax payments, other monthly expenses, and savings.

Cash Flow

Experts advise you to Increase cash flows and you can do it by carefully monitoring your expenses and spending patterns. Tax planning, careful budgeting, and prudent spending will help you keep more of your hard earned cash.

Capital

Capital is essential to run a business successfully. And this is possible with the increase of cash flow. Everyone knows that an increase in cash flow can lead to an increase in capital. It allows you to consider investments in order to improve your overall financial well-being.

Family Security

Providing financial security to a family is an essential part of the financial planning process. According to experts, the proper insurance coverage and policies in place can provide various benefits to you and your loved ones. 

Investment

To make a good financial plan you need to consider your objectives, personal circumstances, and risk tolerance. It will help you to choose the right types of investments to fit your needs, personality, and goals.

Standard of Living

The savings created from good planning can prove valuable in hard times. Suppose you have taken an insurance policy. And there is enough insurance coverage to replace any lost income. Especially when a family bread earner is unable to work.

Financial Understanding

Better financial understanding is possible when you set measurable financial goals. It will give your budget a whole new approach and improve control over your financial lifestyle.

Assets

Having more assets than liabilities is a desire of every individual. Unfortunately, many assets are attached to liabilities. So, it becomes essential to evaluate the real value of an asset. The knowledge of canceling or settling the liabilities comes with the understanding of your finances. However, the overall process helps in building assets that don't become a problem in the future.

Savings

Saving is the key! But unexpected financial changes can still throw you off track. Therefore, it is better to have some investments with high liquidity. You can make a use of these investments for educational purposes or in times of emergency.

Ongoing Advice

Building a relationship with a financial advisor you can trust is vital to achieving your goals. Your financial advisor will guide you to assess your present financial circumstances and frame a comprehensive plan customized for you.

Final Words

The first step in developing your financial plan is to meet with an advisor or expert like Mehul Mathrani. This financial process begins with an analysis of your present financial circumstances, future goals, anticipated changes, and results in your customized plan.

Originally Posted: https://www.allperfectstories.com/financial-planning-your-life/

5 Factors to Consider Before Investing in Mutual Funds

Nowadays, almost everyone desire to earn extra income and therefore most people choose different stocks, bonds or other investment plans. According to Mehul Mathrani, in today’s world investing in the mutual fund is one of the best and safest decision. Especially, for those who do not want to take high risk in the investment. However, it is only possible if you invest in mutual funds at the right time.

Let’s find out what are the factors that decide the best time to invest in Mutual Funds.

Time is Key

Time is vital while making an investment plan. If you are planning to invest for the short term, try out liquid funds or short-term debt funds, where your money would be secure and grow conservatively. Over three years for any investment horizon, choose an equity mutual fund for best returns.

Make Investments Goal-Oriented

According to experts, you must plan your investment on the basis of your goal when you invest in mutual funds. In this way, it will be easy for you to pick the right kind of fund. Some people consider long-term goals such as retirement, while some people consider short-term goals. Therefore, buying or selling a mutual fund should be based on your need and requirement instead of a fund’s popularity or a friend’s recommendation.

Read Fine Prints

Once you have decided to invest in mutual funds, it is advisable to read the fine prints carefully and understand all the expenses, exit load, and any other fees. And do not forget to make a well-research before selecting your fund. If in doubt, go to a mutual fund advisor Mehul Mathrani that will help you in deciding a fund based on your need.

Don’t Go Only By Fund Ratings

Many professionals and investment analyst advise not to follow fund ratings blindly as they fluctuate. Therefore, it is better that you research about a fund’s long-term performance and only after that choose the fund which is suitable for you.

Choose Direct Plan

If you are a knowledgeable investor and know how to manage and pick your funds, then only go for a direct plan. This means purchasing a fund directly from the company without taking help of any intermediary or broker. However, for some people, this may prove tricky as they may end up choosing the wrong fund, but it will help you enjoy the higher returns and a lower expense ratio. In case you’re in doubt, let an expert help you shortlist a regular plan where you will also get such services as a fund dashboard to track your fund performance.

Final Words

So, these are the five factors you must consider before investing in mutual funds. Finance expert and a leader Mehul Mathrani say don’t focus on investing rather focus on becoming an intelligent investor. In the end, only an intelligent investor can create a winning game with the investment.

Have a Successful Investing!

4 Things you must Consider Before applying for a Credit Card

Today, almost everyone carries a Credit Card as it has become one of the essential financial tools in recent years. From purchasing groceries to booking flight tickets, credit cards use as a mode of payment on account of the convenience and security they provide. If you’re one of those who is seeking for the best credit card, but confused like all the other applicants for a credit card, no worries, there is always a key to a lock. Your job is to find it.

According to Mehul Mathrani, before you choose a credit card, you must make a great research. Furthermore, he says, it is essential for every credit card holder to know how to make the best use of credit card otherwise you may find yourself landing in a financial doom.

Let’s discuss a few important things about the credit cards

Multiple cards to choose from

                                 

 There’s a wide range of credit cards offered by different financial institutions. You need to look for the most suitable card as per your requirements. Due to a wide range of options make difficult to find the most suitable card. If an individual wants a most suitable card, he must analyze his spends to see where it is possible to earn sizeable cash back, rebates, miles, rewards points, discounts, etc. Furthermore, if you’re a frequent traveler, then a travel credit card will make your trip more enjoyable without burning a hole in your pocket. And in case you are a Shopaholic, you will get a chance to enjoy a rewards credit card for shopping trips that give you cash back on everyday purchases.

It’s a kind of readily available loan

Nowadays people prefer Credit card over cash payment and its demand is increasing with every day. Credit cards can be used to buy everything right from the groceries to fuel, flight tickets, movie tickets, even for booking a table in your favorite restaurant, and much more. Whether it is a human or a credit card, everything comes with quality and flaws. In case you treat credit cards as extra money and forget that this is basically a form of borrowing, you can go into a debt. Banks give you a credit limit, an interest rate and a grace period. Every individual should manage his credit card debt efficiently. And you can do it by paying more than the minimum amount along with the interest imposed on it at the end of every month.

You should know about interest rates

 A credit card’s interest rate is the value you pay for borrowing money. The interest rate is levied on all the purchases made through credit card and it is called Annual Percentage Rate i.e. APR. If you want to calculate how much interest you’ll pay each day, you can convert your annual percentage rate to a daily percentage rate by dividing it by 365. Furthermore, if you’ll carry forward your APR month to month, all your perks and rewards will be waived off and you will be left with a good credibility.

How a grace period works

A grace period is the time period during which a credit card company doesn’t levy any interest on the purchases if you pay off the new balance in full before the due date. It starts at the end of a billing cycle to the next payment due date. In case you lose your grace period by not paying your full balance by the due date, you will be levied interest on the unpaid portion of the balance.

Final Words

Mehul Mathrani says, if you want to enjoy life without getting into debt, it is advisable for you to consider these points before buying a credit card.

Financial Management Tips for Small Businesses

Are you planning to start a small venture? Great! But do you know what it takes to run a business successfully in the long run? Well, financial management skills are the key. According to experts like Mehul Mathrani, running a business is not an easy task, but if you keep your accounts well-organized will certainly avoid a lot of confusion and stress down the road. And to make it easier, we have listed several financial tips to help you develop excellent management skills and help your business to excel:

1) Don’t Wait ‘Till Later

As a small business owner, you can’t go with this attitude – I’ll do this tomorrow.” Because in the end, your careless behavior can create a problem for you and for your business. Therefore, you must organize every sale and business transaction in a proper manner and document and recorded with every day. It will save your time and will avoid confusion later, especially at the time of auditing record of a past sale or filing your taxes. And in this way, you will get a more accurate idea of your profits over time.

2) Use Good Software

Nowadays every company prefers bookkeeping software, whether it is a small or a big one. And why not? Installing such software helps you in creating financial accounts in order. Having the proper tools, both your staff and for yourself is a huge time saver and will improve efficiency in their work as well as in yours. You can choose from the wide range of software options as per your business needs. Just pick one that best fits your needs and uses it to good use!

3) Stick to a Budget

Creating a budget to run a successful business is important, but actually following it honestly is vital. Be sure to organize all regular expenses for the year, and allot yourself a certain amount to be spent for any other purpose, such as an expansion of the project or a particular investment. Mehul Mathrani suggests every business owner set aside a certain amount to deal with any uncertainty that might occur, and be careful about budgeting more funds in certain areas if you have a fluctuating income.

4) Be Cautious

When your business begins to succeed, due to the excitement and overconfident most business owners plan their own death warrant by a plan to expand it too quickly. Do you know what it takes to expand a business? It requires the hiring of more employees, more equipment, maybe need to add a few more facilities.  In addition to, these big changes require funds, and spending so much at one time is not always the right decision. A little more care in these situations will definitely avoid small businesses from struggling.

5) Invest Wisely

How to become an intelligent investor? Well, it requires, a lot of research and study about the market and stocks before investing the business profits. Therefore, when you choose an investment, make sure it will add more capital to your business. In the 21st century, almost all business uses social media to connect with the audience no matter what the size. Even experts say businesses who choose digital marketing to perform and earn better than those without any.

Nowadays, when it comes to investing time, effort, and money to grow a business, choosing an online platform to build an online reputation of the business almost always the best ‘first’ choice. Maybe you are offering the best quality product available, but nowadays without online marketing, it will be difficult for you to earn recognition. In result, you may miss out on a lot of potential business opportunities.

Bottom Line

So these are the few business tips advised by Mehul Mathrani to help you handling and maintaining the finances. Keeping your finances in order is imperative, and with a neat financial foundation, your business will certainly go far!

5 Useful Tips to Manage Your Finances

Managing your money like anything takes time to comprehend as well as to improve on. In order to master, a good understanding of your financial situation is required, emphasis Mehul Mathrani. If you learn how to manage your finances effectively, you can save a ton of time and focus on things that you actually want to in life. Fact is, a lot of individuals give up and let their investments get out of order, but it actually does not to be that difficult.

Here are 5 tips that will help you manage your money in a proper way:

Set Financial Goals:

The very first and crucial thing to do is to write goals about what you want to do with your life and money. Actually, finances affect different phases of your life. For instance, your dream to travel the world affects how you will plan your money. Plus, your wish to retire early is dependent on how well you manage your finances says Mehul Mathrani. Fact is, buying a home, starting a family, joining new job will highly be affected by how you handle your finances. Hence, note down your financial goals and then prioritize them.

Create A plan:

Creating a financial plan is really important in helping you reach your monetary goals. Following are some things you should consider while creating a financial plan:

• Setting budget is the key to success. It will give you the control of your financial future.
• You must contribute to long-term goals like saving for retirement no matter what stage of your monetary plan you are in.
• Constructing backup fund is another key factor to fiscal success.

Stick to your budget:

Create a budget and stick to it. Is it really necessary? Sticking to a budget seems little tough in the beginning but it pays off in the end.

According to Mehul Mathrani, sticking to the budget helps you with the transparency of your financial situation and this is most important for better managing the money.

Consolidate your debt:

Debt, a dreaded word. No one like it. In order to manage money, you actually need to get out of the debt. Do you have credit card debts and other debts, try to merge them and get the lowest interest rate?

And if you have single credit card debt, try to pay the amount as soon as possible as you get the bill.

Do not hesitate to ask for advice:

So, are you ready to grow your wealth and begin investing. Seek the advice of a monetary planner to help you make your investment decision. Actually, a financial advisor shares the possibilities involved in every investment and also help you with your budget.

Wrapping Up

Having the ability to manage your money effectively will make life flow much smoother. In fact, being well organized save the time as well as the potential financial headaches in the future. Mehul Mathrani has given above tips that help you get control of your money. Follow these tips consistently in order to spend a quality and worry-free life.

Originally Posted: https://www.allperfectstories.com/mehul-mathrani-5-tips-to-manage-your-finances/