Jul 15

Welcome to my financial advice blog

Hello Everyone and welcome! Money affects every aspect of our lives, doesn’t matter whether it is in your personal or professional life, finance is there in some capacity. Being able to navigate your way around the financial world is actually quite important even in our daily lives. You need not be an expert but if you know the basics, you can improve your financial situation. If you have any great tips, feel free to share them.

Sep 02

Make Sure You Have A Properly Drawn Up Lease

Being able to understand what makes a particular property valuable and having the ability to estimate the approximate value of that property will give you the opportunity to make a profitable investment. Over the last few business-finance-graphs-and-charts-with-calculator-xsyears, there has been a rise in the approach of purchasing a building that is structurally sound but requires a bit of TLC and a bit of landscaping. This is a great way of buying a relatively cheap property to do up and either sell on or rent out. However, commercial property is not quite so straightforward.


For example, take 2 commercial buildings which were built at the same time, in the same area and have virtually the same features. You would think that they were worth a similar amount of money but you could be mistaken. One key factor will determine a difference in value and that is, the lease or leases. Landlords who have experience in renting properties will know how important it is to attract and keep good tenants and avoid or ditch the bad ones. With commercial premises just having a good tenant is not really enough. Commercial properties will actually have several different types of leases for each tenant and this one feature can have a huge effect on the value of the property.


One of the main reasons an investor will choose commercial premises over residential premises is down to the types of lease that can be offered. Residential properties will have fairly standard leases whereby the tenant has many rights. Commercial properties on the other hand have very different leases which are far more complex and individualised. For instance, if the tenant is renting commercial space to use as a clothing store, they will require a certain amount of floor space which will have been accurately measured for the lease and they will also want a access to a certain amount of car parking space outside the building. The clothing store will be responsible for their own equipment, decoration, cleaning and so on. Often, depending upon the lease, they will also be responsible for repairs and maintenance, unlike a residential property where the landlord is legally responsible for the upkeep of the building.


On the subject of leases, it is very important for an investor to appreciate the importance of having a very good lease agreement drawn up. An investor buys property to make a profit and the more money the property can make, the more it will be worth. That being the case means that a regular steady income has to be in place at all times but this needs to be offset by the amount of direct management that is required so you need to do your sums well beforehand. Be aware that the length of lease can become a major factor particularly if you have a poor quality tenant. Commercial property leases normally include a right to renew with the same terms or terms which have been modified and agreed in advance. This can be a double edged sword, on the plus side, a valuable tenant who does not want to or can’t relocate can be able to remain in place following a negotiation in terms and rent. On the down side, a not so good tenant can be difficult to dislodge and a group of poor tenants can reduce the value of your building.


When looking for a new property to purchase or plans to rent out space in an existing commercial property, remember that the most profitable leases are not necessarily those that are paying the most. A tenant who pays a high rate but only has a short time left on their lease and does not intend to renew is not nearly as valuable as a long term tenant who pays less. Another thing worth mentioning here is subleasing, this can be useful but you need to know all the details and be aware of what is going on so that you can retain at least a modicum of control over our own building as the tenant doing the subleasing may not be as experienced in property leasing and management.


Make sure you have the leases drawn up by a specialist lawyer and make sure that you read them properly before using them. Retaining a good solicitor could save you a great deal of time, trouble and money in the long term so choose one carefully. Remember that the lease is a legal document so you need to be aware of everything that is in it and what your responsibilities are. Make sure that it includes the specific amount of security deposit, whether it is returnable when the lease expires and also how much can be deducted for repairs or damage. This is important as it can weed out poor quality tenants as well as giving the tenant the incentive to look after the property or part of the property that they are renting. Take a look at the lease from the worst possible case, if a tenant’s business goes bust, is there any protection for you as the landlord to get your rent money? Having your solicitor draw up a lease that suits your needs and that is fair to your tenant will give you the best possible chance of getting a good return on your investment.

Jul 31

At Last, Schools Are Teaching Finance

I have been of the opinion, since my own schooldays, that youngsters need to be taught about money and finances. When I was in school we were not given any lessons in managing money, dealing with bank accounts, taxation or anything even vaguely useful regarding this area with the result that I was very ignorant where finance was concerened. Of course, like everyone else, I knew how to spend it but I earning and keeping hold of it was a whole new experience. With the aftermath of the financial crisis, it is more important than ever that young people are given the information and tools to prepare for life in adulthood and that includes being savvy with money. The students of today will be the decision makers of tomorrow so learning about finances will inevitably help them make good decisions in the future.


“Spend a little, save a little, life will be OK.” Manal Chaib, 13, reads out her “money promise” tweet to the rest of the class. “I want to spend so bad,” reads out another pupil.

A year-eight class at Heartlands High School in north London get a taste of lessons in the English national curriculum when secondary schools return from the summer break. With the introduction of financial education, 11- to 16-year-olds will solve money related maths problems and learn about public finances, pensions and how to budget.

In the wake of the debt-fuelled financial crisis charities lobbied hard for this change. In the classroom at Heartlands High School, pupils have mixed feelings.

“It’s probably as important as English and business studies,” says Karim Blake.

Chaib is worried about too much focus on saving. “We are teenagers. We should be able to spend on what we want. You should start worrying when you are 16 … I don’t want to get: ‘You are going to have a rubbish future.’”

Gabby Urbonaviciute is also unsure. “If it was for the whole time, I think it would get boring. Today is fun. Two lessons but not more than that,” she says while filling in a quiz on which celebrity spender she is most like – from “super saver” J K Rowling to “spenderholic” Mike Tyson.

This workshop is being run by MyBnk. Set up in 2007 it has so far helped 80,000 children with lessons on the difference between “needs and wants”, how to save, public spending, banking and enterprise.

Founder Lily Lapenna started the charity after working in international development in Africa and Asia. When she returned to London it was the calm before the great financial storm but Lapenna was already nervous about the build-up of personal debt.

“Credit flowed quickly and easily – overdrafts, credit cards and mortgages. Many of my friends were in debt but living fabulously without a clue of what APR meant nor how it impacted them,” she says, referring to the annual percentage rate (APR) measure of how much it costs to borrow money. “Something didn’t feel right. Sure, we could pay our monthly bills, but what if we lost our job, what would we do if our boiler packed up?”

She started classes for schoolchildren and since the onset of the financial crisis, demand for MyBnk’s sessions has soared. “We need to teach students to manage money. That was not the prevailing attitude pre-crash where thoughts were, they will learn from their parents,” says Lapenna. Click here to read on

Further information

4 essential finance lessons for your children

29 money lessons every high school graduate should know

Jul 16

A Simple Guide To Personal Finance

When we are attempting to understand Individual Finance, the best thing to do is to understand exactly what Personal Finance is not.


Many people believe that bookkeeping and personal finance are the same, however Personal Finance is NOT Bookkeeping.

On the surface they might seem the very same; they both have something to do with cash. However, the definitions will assist us better comprehend the differences.


Based upon this meaning, we see that accounting is the process of analyzing and tape-recording what you have actually currently done with your money.


This is why having an chartered accountant is generally not enough when it pertains to your individual finances.


Accounting professionals normally don’t issue themselves with personal finance (there are some exceptions to this rule). Unless your accountant is also a monetary advisor or coach, he or she will likely simply look at what you have done with your money at the end of the year and supply you with a report of their analysis.


This report is typically your tax return; what you owe the government or exactly what the government owes you.


Very seldom does the accountant offer an individual with a Balance Sheet or Earnings Statement or a Net worth statement; all very helpful devices that are required to successfully manage your individual finances.


Personal Finance is taking a look at your financial resources from a more pro-active and goal oriented viewpoint. This is what supplies the accountants with something to tape, validate and assess.


Consumers, business firms, and governments typically do not have the funds they need to make purchases or conduct their operations, while savers and investors have funds that could make interest or dividends if put to efficient use. Finance is the process of carrying funds from savers to users in the form of credit, loans, or invested capital through firms including banks, developing societies as well as other non-profit companies such as cooperative credit union. Finance can be divided into three broad locations: company, individual and public finance. All 3 include creating budgets and handling funds for the optimal outcomes”.


Individual Finance Simplified


By understanding the definition of “finance” we can break our ” individual finance” down into 3 easy activities:-.


1. The procedure of raising funds or capital for any kind of expenditure = Generating an Income.

A Business gets money through the sale of their services and products. This is labeled ” profits” or ” earnings”. Some businesses will likewise invest a portion of their income to create even more earnings (interest income).


An individual acquires cash through employment either for their own business or working for someone else. This money is termed income.


A Government gets money with taxes that we pay. This is among the primary means that the government produces an income that is then made use of to construct facilities like roads, bridges, schools, medical facilities etc for our cities.


2. Using our cash to make purchases = Spending Money.

Just how much we spend relative to how much we make is exactly what makes the difference between having maximum lead to our individual financial resources. Making good spending decisions is important to attaining monetary wealth – despite just how much you make.


3. Getting maximum outcomes = Keeping as much of our money as possible.

It’s not just how much you earn that matters – its how much you keep that actually matters when it concerns your individual financial resources.


This is the part of personal finance that virtually everyone discovers the most challenging.


Often people who make huge incomes (six figures or more) likewise tend to spend just as much (or even more) ???????????meanings they put themselves in debt which debt begins to accrue interest. Eventually that debt can begin to grow exponentially and can damage any hope they would have needed to accomplishing wealth.


Individual Finance made easy.


Personal Finance does not have to be complex if you keep this simple formula in mind:.


INCOME – SPENDING = What you have left over.


For Optimal Outcomes you just have to make more than exactly what you invest and invest less than exactly what you make so you can keep more for you and your household!


If you are not actively working to an optimum result you will by default get less than optimal results.


It truly is that easy!


Now that you understand individual finance and WHAT you have to do, the next step is finding out HOW to do this!


The very best means to start is by following these 3 easy steps:-.


1. Knowing what you want to achieve will help you choose a pathway and give you incentive to do more to get what you want.


2. Have a strategy – that you can follow that will get you to your goals. Knowing how you will accomplish your goals in a step by step plan is invaluable. Sometimes this is much easier with the help of an consultant or a financial coach.


3. Use tools and resources – that will assist you to stick to your strategy and not become sidetracked by the things in life that might limit our incomes and make us spend more than we should. Do not try and work all of it out in your head! You will certainly end up with a large headache and your financial resources will certainly turned into one massive dark fog!