Does Money Actually Matter In Relationships?

Money is problem enough especially when you are single and alone and trying to do almost all of life’s requirements. (House, Cloths, food and luxury) Then the hard part comes in …. Having another person in the equation and things almost takes another dimension

Money, despite what any of us wants to believe about “love conquering all”, really matters when you’re in a relationship. Now this is not about letting someone pay for dinner on a date; We all know that even though we’re empowered feminists, it’s nice to be pampered to a nice night out by someone else often and also, you’re kidding yourself if you think that’s the extent of how money will factor into your relationship. Love might, indeed, conquer all, but trust me love still needs a roof over its head, it still needs to have some level of comfort around and probably also doesn’t want to have awkward conversations about financing a romantic getaway.

Financials, because of the expectations that come with it, and because of the way it dictates not only what you can do with your life, but what your limitations are as a couple. And if you ever decide to join financial forces, sometimes individual wants are subsumed by what’s best for both of you. So naturally, having an open discussion about money is very important to not letting financial issues blow up in your love-struck faces. When you’re in a serious relationship with someone, it’s very common for most of your money to become “Our money”. No, this doesn’t always happen; a lot of married go through their relationships and even marriages with near complete financial independence, which is great if that’s what you want. But for others, money becomes a more vaguely joint effort as the relationship moves forward.

And there are consequences to this: If you live together, you need to pay rent, bills, buy a new seats, ornaments etc. Your financial Top lists become the relationship’s financial priorities. While it’s definitely still okay to spend some money on yourself, well some really big purchases would have to be run through good defense. Before you start saying things like “But it’s my money! I earned it!” (Which is very correct, but also) here are six reasons why money actually matters in a relationship:

 

  1. Relationships should be even—and you need to be clear about this

Relationships should always be even and equal, and that means a lot of different things to different people. Some people think “equal” means a down the line 50/50 split in finances, but often that’s not always possible. Think about it, not both of them would earn the same amount or the same experience. If this occurs then there should be a clear understanding and a definite arrangement on the how this would be achieved.

Money can become important when one party can’t keep up with the other financially but is still expected to. Knowing exactly what both partners are expected to contribute to a relationship is important to clarify, so no one ends up feeling exploited or out of their depth.

  1. You don’t want to unexpectedly need to support someone

It’s almost very important to know how much your partner makes. It is really ideal. Now this does not suggest you need to start asking for bank statements, bank balances or last transactions on the second date, but if you’ve been together for a while, and plan to stay together, or if you’re planning to get married or move in together, you don’t want to have “Surprise! I’m broke!” suddenly come up. It’s more than fine to support your partner in trying times, and have them do the same for you, you should be able to stand by your partner during trying times, you don’t want to wake up one day to someone simply expecting you to carry them. You want to know that while your partner might not always be in a comfortable financial situation, their ultimate goal is to be able to put money in the bank, not to ride on your coattails like some lazy freeloader.

  1. You need to prepare for an unexpected support system for your partner

Yes, it is normal that there are times you might need to support the other person in your relationship. There might be unforeseen circumstances like job loss, big bills and low moments in relationships.

You need to understand that when it comes to money, if you’re in a serious relationship, you’re in it together. Their hard times are your hard times now, and vise versa.

  1. You need to set same financial priorities

You need to make sure that you are both capable of being reasonable, respectful and communicative when it comes to everyday spending, and that you share the same goals when it comes to spending and saving in general. Getting to know your partners spending habits is essential in building a trust worthy relationship.

For example, when one person wants to save for a new dining room table and the other person is impulsively dropping N100, 000 on a night out with friends in choice spots in Lagos, there’s a pretty fundamental mismatch in priorities, which isn’t healthy and isn’t sustainable. When you’re partnering with someone, especially when you’re living together, your spending habits matter, and will always affect the other person. While you can’t demand someone run every penny by you, you should trust that your partner isn’t going to blow money the two of you need on something frivolous. You can’t police your partner, so you need to be able to trust their judgement with finances, and that’s much easier when the two of you share similar goals.

  1. Planning a financial future together is important

A stable relationship often involves planning a future, whatever that looks like: Getting a house together, buying a car, having kids, taking lots of vacations or simply living the kind of life you need. Whatever your dreams looks like, money is important because where you spend it is going to dictate how you live, and how you achieve your goals together. It is advisable to spend wisely and open to each other as you go on.

  1. Fighting about money? Way too easy.

If you are not extremely aware of how money functions within your relationship, it can be destructive and It can ruin your relationship. If you don’t communicate and have an open dialogue about your finances, you can very quickly find yourselves fighting over each other spending habits. You use money every day. Money affects everything from where you live to what you have for as a meal and how you spend your lives. You need to pay particular attention to it.

Need A Collateral Free Loan For Vacation? Things You Need To Know.

It’s almost summer and everyone is talking about travelling and treating their families. This is an amazing idea as it helps you bond with your family and relieve the stress of the year all the pressures and work related issues, But before you go ahead, we believe there are somethings you need to know. Using a loan to pay for unnecessary expenses, like travel or weddings, can be a slippery slope to poor financial habits, such as spending more money than you have. In general, vacations should be paid for with money you already have, and if you don’t have enough money, you need to save up until you do.

If you are also planning to go on a vacation or to spend quality family time and looking for ways to pay for holiday travel without going broke or living in unbearable debt – a personal loan is the right option for you. Many financial institutions including Micro Lending organizations are offering personal loans to feed your travel appetite be it for a domestic or an international vacation.

A personal loan for vacation can be the best alternative, but you need to evaluate the pros and cons before you make the final decision. So before you decide to take a huge gamble on a loan for vacation, please here are somethings to consider that would guide you through it.

Why personal vacation loan can be an attractive option?

  • The process of personal loan disbursement is quite fast. For us in Credit Direct Limited, it is as easy as ABC and can be secured within a few hours. So for travel plans made with family and friends at the drop of a hat, opting for a Cash To Go loan will save you a lot of time and related worries.
  • It’s easy to budget, easy to compute, your repayment options are stated clearly to you, so you can plan well. Which means right from the beginning, you know what amount needs to be paid back as your monthly installment.
  • It is unsecured (collateral and guarantor free) loan, which means you don’t have to put your home, valuables on the line or put people on the spot to get funds.

Need Loans for Vacation? Things to have in mind

Since you have decided to get a loan for your next summer vacation, then here are some tips to note

  • Set up a limit on your cash and your spending habits. This would help control your withdrawals while on vacation and in essence reduce the chances of overspending. Also, create a 10% margin on these funds for contingency expenses or any overshooting of expenses as the loan approval and disbursal will be done only once.
  • Borrow within your limits per your repayment capacity rather than going for unnecessary luxury expenditures during the trip. Note that you are going to have fun and not to impress anyone There is a clear trade-off between the itinerary cost (including food, lodging, etc. costs) that you choose and your loan amount. Thus, if you spend above your means during your stay in vacation, you will end up stretching your monthly budget and increasing the chances of default at the time of repayment.
  • Try to keep the repayment tenure as short as possible, while balancing it with your monthly budget. A longer term means faster repayment period. Also, in the future you may need additional funds for business, vehicle, medical expenses or a home. In that case your overall eligibility may take a hit due to sizeable existing loans that show up on your credit report.

It is very critical to note that vacations, whether they are planned well in advance or spontaneous, do not come cheap these days. Therefore, it is advisable for you to have arranged enough funds before you travel. However, in case your vacation expense exceeds your current funds, a personal loan can be explored as the best option. However, do remember that, it is important to use the funds wisely, and have a repayment plan well-arranged so you can enjoy your vacation in peace.

At Credit Direct Limited, we have tailored collateral free loan packages for you, your vacation would be extremely enjoyable with our loans, it’s easy, fast and convenient, and you can book loans and get payment within hours. Let us help you plan your next vacation. Call us today on 0700CREDITDIRECT, or 01 4482225. You can send us an email on cashtogo@creditdirect.ng or visit www.creditdirect.ng/apply for collateral free loans.

9 Cash Flow Management Strategies for Small Businesses

Are you a small business owner? Do you have challenges managing your cash flow? We are in a good position to give you the best advice for small businesses when you are facing cash-flow issues. Below, we have described 10 strategies to help improve your businesses cash position. Not all of these strategies make sense for all businesses. However, some combination of these can be employed by any business. You can apply some and see the results.

In cases, there are alternative cash-flow management strategies that small business can use to ease the strain on their working capital. Here are some of those: 

  1. Ask for a deposit

Companies whose product or service requires substantial cash or effort before they deliver are good candidates for asking clients for a mobilization fees or deposit payment. Graphic designers, web designers, marketing agencies, PR agencies and even construction companies fall into this bucket. Not all clients may be willing to make a deposit. The only thing that is guaranteed is that you won’t get what you don’t ask for. So, encourage your customers to ask their customers for a deposit. That might be just what they need to get on solid footing.

  1. Ask customers to pay faster

Another option for managing cash-flow is to get customers to pay faster. This can take several forms. The simplest form is to give vendor discounts, you can advise them that payments received after 7 days gets a discount of some sort or payment on the spot gives you access to other benefits.

  1. Cut or Delay expenses

In the event that customers won’t pay faster, another option is to delay expenses. The strategy can take on a variety of forms, depending on the business. Manufacturing companies may consider using lower cost inputs to deliver the same goods or service, while a service company may opt for spending less time on the same work. Companies should also consider exhausting existing inventory before purchasing new inventory, or hiring part-time or contract employees to replace full-time employees.

Also consider how your client’s personal expenses impact their business. Given how much of their expenses may be personal in nature—either indirectly via the salary they pay themselves, or directly as a sole proprietor—they might want to consider what opportunities they have to cut back on their personal expenses. It may entail eating out less, downsizing, living more frugally or delaying a vacation. Out of all the variables listed here, personal expenses are the ones business owners have the most direct control over.

  1. Request more favorable payment terms from vendors

As they value their clients, vendors have a strong incentive to help finance their customers’ purchases. Getting an extra two weeks to make a payment could be the difference between missing payroll and expanding. If your payment terms are 15 days, ask for 30 days. If they are 30 days, ask for 45 days. Depending on your relationship with your vendors, you’ll find that at least some will be open to a more favorable arrangement. And, be persistent! Perhaps you’ve tried asking for more favorable payments terms before, but were declined. You have little to lose by asking again, either inquiring the same vendor or a different vendor. Of course, the more timely and dependable you are with them, the more willing they will be to extend their terms.

  1. Finance purchase orders

For manufacturing or merchandising companies that require a significant amount of cash to fulfill their purchase orders, financing purchase orders could be a solution. Once you have a purchase order on hand, the financing company will pay the vendor so you can get the merchandise or inventory the company needs to fulfill the purchase order. This eliminates the problem of getting a large order, but not being able to fulfill it because of cash to buy the inventory or materials.

  1. Increase margins

Increasing its margins will help a business spin-off more cash that can be used to fund operations. The only two ways a business can increase its margin are by increasing what it charges or decreasing the cost to deliver the product or service. Neither of these may be feasible for a majority of businesses. However, raising prices is a real option for businesses with strong demand for their product or service, or with a unique product, offering or value proposition that is not available from competitors. Any increase in prices will have to be positioned carefully to avoid alienating customers.

  1. Sell or lease idle equipment

When cash is tight, everything should be on the table. This is especially true of idle equipment that can be sold for cash or leased to another company that can put it to use. Even if the company is using the equipment, it should consider that the same equipment could be rented for much less, while the proceeds from the sale can be used to fund the business in the interim.

  1. Sell future revenue

A merchant cash advance is a viable strategy for consumer businesses like retailers and restaurants. It involves taking a loan that is automatically repaid via a percentage of the credit and debit card transaction volume received by the business. This strategy is especially viable for businesses with strong transaction history. Just make sure that the company’s margins can support the cost of the financing. Otherwise, they could be paving their way to financial ruin.

  1. Turn down, shift or post-pone work

Managing cash-flow is as much about timing as anything. Getting a year’s worth of business in one month is overwhelming for most businesses. On the flip side, insufficient business could mean shutting the doors. Thus, managing the volume of business for consistency can be a helpful way to manage cash-flow. This may entail turning down or postponing work certain times of the year. This strategy is not realistic for companies with strongly seasonal business. Retailers, snowplowers and tax accountants will not be able to change the seasonality of their business.

Final words

Given these strategies, consider which make the most sense for your client’s business. Working capital is the fuel that powers small businesses. By understanding the options available to them, your clients will be much better equipped to manage their working capital and, in turn, maintain and grow their operations.

Remember we are here for you with well-tailored loans that fits your every need. No matter where you are, we are a phone call away and our representatives are sure to meet your every need. Call 0700CREDITDIRECT today.