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Choose Whether You Become Rich or Stay Broke

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Many people complain about being broke. They will complain, but they will not do anything to change it. Complaining about not having enough money sort of becomes part of their everyday routine like going to work or doing a daily task.

While getting comfortable at this pace is normal, you have to voluntarily remind yourself not to resign to the fact and not to accept it. Complaining is the little solace people seek when they have given up. You can blame everything and everyone, but at the end of the day, the responsibility to succeed lies on your shoulders.

You have to choose to become rich. You have to choose to work. Everyone’s “rich” is going to be different. While for some people having a lot of money means being rich, on the other hand, being able to afford whatever they need and want means being rich to others.

Whatever your definition of rich might be, one thing remains the same, and that is – working hard. Both situations are hard. Staying broke and getting from one day to another is hard. Working tirelessly to become rich is hard as well.

As Eric Worre said, “Becoming rich is hard. Staying broke is hard. Choose your hard.”  A lot of things that we achieve in life or accomplish are based on the choices we make. Our finances are no different. You need to have the mindset to achieve the financial state you want. You can’t be comfortable with what you have and complain about not having what you want.

You need the hunger and passion in you that makes you a go-getter. If you’re in a financial crunch, then this becomes even more important. Not having good financial health will eventually hurt your health – mental, emotional, physical.

If you are struggling to make ends meet month after month, then I understand how exhausted your mind is going to be even with your responsibility, let alone taking on extra work to better (not only your job but also the things that you do to change your situation) your situation.

But you will have to use that pressure you feel to your benefit. Use that pressure to learn something that will help you. Learn to start a budget, improve your budget plan, stick to it, etc. so that you can take the pressure of financial insecurity off of your back.

At some point, you have to decide that this ends now. You will be the one bringing about the change. You will be the one coming up with ideas to improve your financial health. When you start taking small steps, there is no looking back.

Final Thoughts

You have to make the choice of working hard rather than working hard at complaining. You have to work toward improving your finances and not staying where you are right now. The first step is the most difficult, then you start getting momentum, and eventually, it becomes easier.

It might sound cheesy, but in a way, you do decide your own destiny. Fortune isn’t going to fall in your lap; you have to work hard to reach it. Be consistent and persistent; choose to become rich not to stay broke.

Understanding Short Term Business Loans

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A big part of being successful in business is the ability to quickly get access to short term loans. Particularly in the early stages when you might not have the cashflow to meet your business needs, you might need some short-term assistance with bridging a gap until a client settles an invoice or to procure stock for sale. Short-term business loans are popular in these cases as you can settle them quickly, which means they aren’t attracting long term interest and commitment.

There are a few different options that you have for short-term business loans. 

Merchant Cash Advances

While this isn’t strictly a loan, it can often end up filling in the space where you might otherwise have needed a loan. A merchant cash advance is when a lender will buy your future credit card sales. You can see then why this might take on the same purpose as a loan.

You repay these loans through your point of sales device by allowing the lender to take a percentage of each credit card transaction you make towards repaying your loan. It’s a versatile and flexible way to get access to credit as you aren’t generally locked into a specific payment plan, but rather each day you process credit card payments, you’re slowly repaying your loan.

Lines of Credit

The easiest way to think of a business line of credit loan is that it works very much like a credit card. You’ll apply for a line of credit, and the lender will give you a credit limit. You can use this credit limit to access cash whenever you need it, and then repay whatever amounts you use gradually over time. 

It’s popular because of its flexibility, and it often ends up being cheaper than a business credit card, particularly if it’s cash you need as credit cards attract quite high cash advance fees.

Invoice Financing

A very specific, but also very useful, form of short-term business loan is invoice financing. As the name suggests, this loan involves your lender giving you an advance on outstanding invoice amounts. Once your customer pays that invoice, the lender will take their advance back, less the interest amount accumulated on that advance, and return the balance to you.

In essence, the invoice is being used as collateral against a loan; it is easy to get approval and it’s quite cost effective.

Short-Term Loans

A short-term loan is the most classic type of short term business loans. You’ll apply to a lender for a lump sum of cash, for which the lender will offer you a payment plan and interest percentage. If the terms are agreeable, the lender will pay you the agreed sum, and you will repay the loan on a regular schedule, including interest and fees. These loans are available over short terms, with very flexible repayment schedules – even weekly or daily payments.

While these four loan types are perhaps the most common, they’re not the only loans available to businesses. Understanding how to finance your business through equity and loans is imperative knowledge to have as a small business owner.