To sacrifice your desires to create a better life for your children is the ultimate demonstration of a single parent’s love. I recently met a single mother who has dedicated her life to her sons, working tirelessly day and night, holding two jobs, saving money, and providing them with a higher education. When I asked her what motivated her to do this every day, she replied, “To give my sons everything they want.” How remarkable is that?
As you strive every day with this mindset, it can be challenging to make ends meet, especially when planning for the future. According to the United States Department of Agriculture, the total cost of raising a child from birth to age 18 is $233,000, covering expenses like food, clothing, childcare, housing, transportation, and healthcare. How can you creatively save for the future amidst these expenses? Let’s delve into that.

Create a Solid Budget, Just Like You Are as a Single Parent!

Amazing single parents employ effective strategies to enrich their children’s lives. They develop and follow creative approaches to enhancing their lives, one of which is budgeting.
Creating a budget can solve half of your financial problems and provide insight into your current financial situation. Many single parents swear by this strategy, and most of them follow the 50-30-20 rule for a better financial experience. How does it work? The 50-30-20 rule is a budgeting method that can significantly help you manage your money effectively and sustainably. This rule divides your monthly income into three categories: 50% for needs, 30% for wants, and 20% for savings or paying off debt.

Explore Free and Fun Activities to do with Your Kids

It is natural to want to give your child every happiness, but this may only sometimes be feasible on a tight budget. However, there are numerous free activities available! For example, museums, libraries, parks, and free events offer free entry on certain occasions. Keep an eye out for upcoming fun activities, and plan an exciting day with your children!
Moreover, outdoor activities can be expensive and strain your budget in the long term. However, there are countless opportunities available on Pinterest. You can find and create cherished memories with your family.

Automate Your Savings

As a single parent, managing your finances sustainably while holding down a full-time job can be challenging. With numerous responsibilities, even thinking about building a nest egg can be overwhelming. However, automating your savings can address this. You can open an account specifically for this purpose and effortlessly save money when your monthly income arrives. This practice is rewarding and simplifies your finances.

Cut Costs on Groceries

Saving money on groceries should be a priority. According to the Bureau of Labor Statistics, single-parent households spent 14.9% of their total income on food and groceries in 2019, the highest among household types. This is concerning, as you may be spending a significant amount unconsciously and face dire consequences in the long run. Every dollar is important when you are solely responsible for your child’s future. Cut unnecessary expenses and seek out deals that offer discounts. Then, immediately transfer the saved money into your savings account.

Mindfully Spend on Children’s Essential Needs

Keeping up with a growing child’s necessities can be financially challenging. It’s important to encourage your child’s development, even though it can be expensive. For instance, a substantial amount is spent on clothing, toys, and books. However, you don’t always need to buy name-brand items. You can also shop at retail outlets for the time being for a better future. Additionally, try saving money throughout the year and then buy the most coveted toy for your child.

Cancel Non-Essential Subscriptions and Indulgences

When working toward a goal, it’s important to recognize that it won’t be easy. Every purpose involves struggles that are essential for making your journey more meaningful. To provide the best life, we often subscribe to services we no longer use, yet we continue paying for the monthly subscriptions. Keep an eye out for any subscriptions and list them to have a clear understanding of your expenses. It’s like your hard-earned money is going to waste.

Don’t Forget to Take Care of Yourself

If you neglect your well-being, it will impact all your efforts. Take care and recharge yourself to work more efficiently and actively than before. Best wishes!

 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Vacations are a much-needed break for individuals and families to spend time together or relax and reset for mental and physical well-being. Most individuals work more than forty hours a week to make ends meet or give them a particular lifestyle. These work hours can push a person to stress and ultimately affect their overall performance at work and home.

Planning a vacation will take time and an idea of the costs depending on what you do or where you go. If you are planning a trip close to home, that can lower the costs. However, if you go far or plan something more elaborate, your vacation expenses can skyrocket.

While there are ways to save on your vacation, you don’t want to sacrifice quality for those savings. Therefore, you need to plan on starting a savings account specifically to pull funds for travel and vacations. Here are five ways to save for the perfect vacation.

Reserve Salary for Savings

As soon as your bills are paid, create a direct deposit of 5% to 10% of your overall salary to your vacation savings account. The best practice is to save first. However, it is essential to pay toward your priorities before using income for luxuries, including vacations.

You should also ensure a lot towards your vacation savings that are reasonable enough to leave you with money for other entertainment or purchases each month. While vacation and recharging your batteries are a priority, you must focus on an amount that doesn’t allow your bills or other needs to suffer.

In many companies, you can have your paycheck directly deposited into your bank account. Some companies will have an additional option to deposit some of the funds into a savings account. This way of saving is ideal because your disposable income will be less than the amount, and you won’t notice it missing.

Analyze Monthly Income and Expenses

Identify your essential expenses, such as rent, purchases, and invoices. This savings tip will give you an approximate idea of the expenses your income can cut or eliminate at the end of each month.

Ensure you know how much you are spending and what you earn. If you are spending extra on things you don’t need, try saving and adding that amount to your vacation savings account.

Create a Budget

Compare the figures for your entertainment expenses with the essentials and establish a weekly budget. Be honest and organize yourself to refine your plan as needed to focus on your vacation savings.

With this savings tip, you will see how much you need to entertain yourself each week, how many times you can afford to eat out, etc. Watching your budget will allow you to save for your dream vacation and possibly other luxury purchases.

Start Saving Now

Even if you don’t have much to save, you should start with whatever amount you can afford. The key is to start saving NOW. Most people put it off because they don’t think they have enough to put towards savings accounts. However, you can save a small amount that will add up over time.

Don’t beat yourself up if you have not been saving before now. Many financially responsible adults don’t have any savings or enough to make a difference. Even if you don’t have a lot in your vacation savings account, you can plan something within the budget of what you did manage to save.

Apps to Save

Many apps and websites focus on savings, whether saving for vacation or putting money away to use towards it. Let’s Bonus or Groupon are excellent choices to help you save on vacation so that it better fits what you have saved.

You can save on your expenses and have more money for your vacation savings account by saving on groceries using coupons and apps. You can use money-saving apps like Ibotta, Shopkick, and Fetch Rewards to save on shopping for items you already buy.

If you want help to closely monitor your finances and prioritize your expenses, connect with apps like Fintonic or Mooverang. These will give you an efficient way to track all aspects of your budget and finances. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Unlock the Benefits of Home Equity Loans:
Your Complete Guide

Home equity loans allow homeowners to borrow a lump sum against their home’s equity, typically offering fixed interest rates, predictable monthly payments, and funds for major expenses like debt consolidation or home improvements. These secured loans use your property as collateral, which means lower rates than credit cards or personal loans but requires careful planning to protect your home from foreclosure risk.

American homeowners are sitting on a goldmine—$17.6 trillion in total home equity with $11.5 trillion accessible for borrowing. As Complete Controller’s founder, I’ve guided hundreds of business owners through smart financing decisions over two decades, and I’m seeing a major shift: 39% of borrowers now use home equity for debt consolidation versus just 25% two years ago. This guide reveals how to tap your home’s value strategically, comparing home equity loans to HELOCs, qualifying requirements, and smart borrowing strategies that can save thousands while building long-term wealth.

What are home equity loans and how do they work?

• Home equity loans provide a fixed lump sum borrowed against your home’s equity, repaid with consistent monthly payments over 5-30 years at a fixed interest rate
• You borrow against the equity (home value minus mortgage balance), typically up to 80% of your home’s value minus existing mortgage
• Common uses include debt consolidation (39% of borrowers), home improvements (55%), education expenses, or emergency funds
• The loan is secured by your property, meaning missed payments could lead to foreclosure
• Closing costs range from 1-5% of the loan amount, including appraisal fees, title insurance, and origination charges

How Home Equity Loans Work: The Essentials

Understanding the mechanics of home equity borrowing starts with calculating your available equity and navigating the lending process.

What is home equity, and how is it calculated?

Your home equity equals your property’s current market value minus any outstanding mortgage balances. If your home is worth $400,000 and you owe $250,000, you have $150,000 in equity. Most lenders allow borrowing up to 80% of your home’s value minus existing loans, so in this example, you could potentially access $70,000 ($400,000 × 80% = $320,000 – $250,000 = $70,000).

Market appreciation significantly impacts available equity—homeowners who bought before 2020 often discover substantially more borrowing power than expected.

Key steps to getting a home equity loan

The application process typically takes 2-6 weeks and follows these essential steps:

1. Check your equity position by getting a property value estimate
2. Review your credit report (most lenders require scores above 620)
3. Compare lender offers for rates and closing costs
4. Submit application with income verification and property details
5. Complete home appraisal to confirm current market value
6. Review loan terms and closing disclosure
7. Sign closing documents and receive funds

Lump sum vs. Home equity line of credit (HELOC)

Home equity loans deliver all funds upfront with fixed monthly payments, while HELOCs function like credit cards secured by your home.

• Home equity loans work best for one-time expenses with defined costs
• HELOCs offer flexibility for ongoing projects or uncertain expenses
• Interest rates on HELOCs adjust with market conditions
• Home equity loans lock your rate for the entire term
• Both use your home as collateral with similar qualification requirements

The Top Benefits of Home Equity Loans

Strategic use of home equity can transform your financial picture through lower costs and tax advantages.

Lower fixed interest rates compared to other loans

Home equity loan rates averaged 7.5% in early 2025, dramatically lower than credit cards averaging 20% or personal loans near 12%. This rate differential creates massive savings—consolidating $50,000 in credit card debt could reduce monthly payments by $400-500.

Fixed rates protect borrowers from market volatility, unlike variable-rate HELOCs that fluctuate with Federal Reserve decisions.

Predictable, manageable payments over time

Fixed monthly payments simplify budgeting and financial planning. A $50,000 loan at 7.5% over 15 years requires approximately $463 monthly—never changing throughout the loan term. This predictability helps households plan major expenses and avoid payment shock from rate increases.

Large borrowing potential for major goals

Average HELOC balances reached $45,157 in 2024, but many homeowners qualify for significantly larger amounts. With tappable equity averaging over $200,000 per household, home equity loans can fund:

• Complete kitchen or bathroom renovations
• College tuition for multiple years
• Small business startup capital
• Investment property down payments
• Major medical expenses

Potential tax deductions when used for home improvements

The IRS allows interest deduction on home equity loans used to “buy, build, or substantially improve” your primary residence. On a $50,000 loan at 7.5%, this could mean deducting $3,750 in first-year interest—saving roughly $825 for taxpayers in the 22% bracket.

Key requirements include itemizing deductions and keeping detailed records of improvement expenses.

Using Home Equity Loans Wisely: Real-World Stories and Strategies

Smart borrowing requires understanding both opportunities and pitfalls through actual borrower experiences.

Case study: Turning equity into opportunity

Case Study: The Chen Family

Needing funds for their daughter’s college tuition and a kitchen remodel, the Chens used a home equity loan instead of high-interest credit cards. They secured a fixed 6% rate over 20 years, saving over $12,000 in total interest compared to unsecured loans—and qualified for a partial interest deduction since half the loan funded home improvements.

Jennifer’s experience: When a home equity loan makes sense

In my 20 years advising business owners, I’ve seen home equity transform financial futures when used strategically. One client consolidated $75,000 in business credit card debt at 22% into a 7% home equity loan, freeing up $1,200 monthly in cash flow that funded inventory expansion. Another couple used their equity to add an ADU, creating $2,500 monthly rental income that exceeded their loan payment by $1,000.

The key pattern? Successful borrowers use equity for assets or improvements that generate returns, not consumption.

Common mistakes to avoid

Three costly errors repeatedly damage borrower outcomes:

• Over-borrowing for non-essentials: Using equity for vacations or depreciating assets like boats
• Ignoring total costs: Focusing on monthly payments while overlooking closing costs and total interest
• Poor timing: Borrowing at market peaks or before job changes

Comparing Home Equity Loans, HELOCs, and Other Financing Options

Choosing the right financing structure depends on your specific needs and risk tolerance.

Feature	Home Equity Loan	Home Equity Line of Credit (HELOC)	Personal Loan
Funds Delivered	Lump sum	Draw as needed	Lump sum
Interest Rate	Fixed	Variable (often)	Fixed/Variable
Repayment	Fixed monthly	Interest-only option, variable	Fixed monthly
Best For	Large one-time need	Ongoing expenses/flexibility	Unsecured, small/medium sum

When to consider refinancing a home equity loan

Refinancing makes sense when rates drop 1-2% below your current loan or when needing additional funds. The process mirrors initial applications but may offer streamlined documentation for existing customers.

Monitor rate environments quarterly—even small rate reductions can generate significant savings over 15-20 year terms.

How to decide: Home equity loan vs personal loan vs HELOC

Decision factors include:

• Timeline: Immediate needs favor lump-sum products
• Amount needed: Larger sums require secured lending
• Rate sensitivity: Fixed rates protect against increases
• Collateral comfort: Secured loans risk property but offer better terms
• Usage pattern: Multiple draws favor HELOC flexibility

Qualifying for a Home Equity Loan: Requirements & Lender Best Practices

Meeting lender requirements positions you for approval and favorable terms.

Typical home equity loan requirements

Standard qualification criteria include:

• Credit score: Minimum 620, best rates above 740
• Equity position: At least 20% equity remaining after loan
• Debt-to-income ratio: Generally below 43%
• Payment history: No recent bankruptcies or foreclosures
• Income stability: Two years employment history preferred

Lenders verify these factors through credit reports, pay stubs, tax returns, and property appraisals.

Steps to get the best home equity loan rates

Rate optimization strategies that consistently deliver results:

1. Boost credit scores by paying down credit cards below 30% utilization
2. Shop multiple lenders—rates can vary by 1-2% between providers
3. Consider shorter terms for lower rates despite higher payments
4. Time applications during Federal Reserve rate cut cycles
5. Negotiate closing costs or seek lenders offering credits

Documentation and application walkthrough

Prepare these documents to accelerate approval:

• Two years of tax returns
• Recent pay stubs covering 30 days
• Bank statements showing reserves
• Current mortgage statement
• Homeowners insurance declaration
• Driver’s license and Social Security card

Complete applications receive decisions within 3-5 business days, with closing following appraisal completion.

Borrowing Against Home Equity: Risks, Rewards, and When NOT to Use One

Understanding downside scenarios protects your family’s housing security.

Understanding the risks: Foreclosure, overleveraging, market downturns

Primary risks include:

• Foreclosure potential from missed payments endangers your residence
• Negative equity if property values decline below total debt
• Reduced future flexibility with higher monthly obligations
• Market timing risk when borrowing at value peaks

Protection strategies include maintaining emergency funds, borrowing conservatively, and avoiding adjustable rates during uncertain periods.

Using home equity for debt consolidation: Pros, cons & cautions

Debt consolidation through home equity can reduce payments and total interest, but requires discipline to avoid re-accumulating debt.

Advantages:

• Lower interest rates than unsecured debt
• Single payment simplifies management
• Potential tax benefits
• Improved credit utilization ratios

Cautions:

• Converts unsecured debt to secured
• Extends repayment periods
• Temptation to accumulate new debt
• Closing costs may offset savings for small amounts

Emotional and Lifestyle Considerations

Beyond financial metrics, consider personal factors:

• Stress levels from leveraging your home
• Family agreement on borrowing decisions
• Career stability and income predictability
• Retirement timeline impacts
• Alternative funding sources available

Final Thoughts

Home equity loans offer powerful financial leverage when used strategically, but success requires matching the tool to your specific goals and risk tolerance. After guiding thousands of financial decisions at Complete Controller, I’ve learned that the best outcomes combine careful planning, conservative borrowing, and clear repayment strategies. Whether consolidating debt, funding improvements, or investing in growth opportunities, treat your home’s equity as the valuable asset it represents—protecting your family’s security while advancing your financial goals.

Ready to make confident financial decisions backed by expert guidance? Visit Complete Controller to connect with our team and discover how professional financial management can transform your business and personal wealth strategies.

Frequently Asked Questions About Home Equity Loans

What is a home equity loan and how does it work?

A home equity loan provides a lump sum borrowed against your home’s equity, typically repaid over 5-30 years at a fixed interest rate, using your property as collateral for the loan.

Can I use a home equity loan for debt consolidation?

Yes, 39% of borrowers use home equity loans for debt consolidation, often saving thousands in interest by replacing high-rate credit card debt with lower-rate secured loans.

How does a home equity loan differ from a HELOC?

Home equity loans provide a one-time lump sum with fixed monthly payments, while HELOCs offer a revolving credit line with variable rates that you can draw from as needed.

Are home equity loan interest payments tax deductible?

Interest may be deductible if funds are used to buy, build, or substantially improve your primary residence, subject to IRS limits and requiring itemized deductions.

What credit score is required to qualify for a home equity loan?

Most lenders require minimum credit scores of 620, but scores above 740 typically qualify for the best rates and terms, with average approved borrowers having scores near 749.

Sources

• Bell, Linda. “Home Equity Loan Pros And Cons: A Homeowner Guide.” Bankrate, 2024.
• “Pros and Cons of a Home Equity Loan.” Greater Texas Credit Union, 2024.
• “What Is a Home Equity Loan & How Does It Work?” PNC Insights, 2024.
• “Pros and Cons of Home Equity Loans.” Experian, 2024.
• “Understanding the Benefits of a Home Equity Loan.” Spencer Savings Bank, 2024.
• “Pros and Cons of Home Equity Line of Credit (HELOC).” Bankrate, 2024.
• “The Pros and Cons of Home Equity Loans.” MassMutual Blog, 2024.
• “What Are the Benefits of a Home Equity Loan and Lines of Credit?” Norway Savings Bank, 2024.
• “How Does a Home Equity Loan Work?” U.S. Bank, 2024.
• “10 Uses for a Home Equity Loan.” U.S. Bank, 2024.
• Rich, Motoko. “How a Home Equity Loan Helped the Chens Balance College and Renovations.” Moneywise, May 2023.
• “Home Equity Loan vs. Home Equity Line of Credit (HELOC).” Equifax, 2024.
• “Home Equity Loans and Home Equity Lines of Credit.” Consumer Financial Protection Bureau, 2024.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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Let’s try to grasp all of the concerns surrounding travel insurance. This tutorial covers the fundamentals of travel insurance, including what it is and how it works, how to choose an insurance program, and how to get the most out of your policy.

What is Travel Insurance?

Travel insurance is a sort of insurance purchased on a purely voluntary basis. It’s worth noting that a tourist policy is required to cross the borders of several nations. Travel insurance coverage can protect you from various unexpected events that may occur during your vacation. Travel insurance protects you from financial risks and losses while visiting another nation. This protection is codified in a unique insurance document known as a travel insurance policy (TZR policy). In the event of an insured event, the criteria and amounts of compensation for specific expenses incurred by the insured individual are specified.

The insurance policy may include the following risks:

• medical and other emergency expenses
• receiving compensation in case of loss of luggage
• protection during sports and outdoor activities on a trip
• compensation for damage to the health or property of third parties
• travel protection against accidents
• protection from the effects of COVID-19 disease

Aside from financial security, travel insurance also provides access to aid services wherever you are. A team of insurance and medical experts will quickly organize emergency care, supervise treatment, act as translators, and assist in replacing lost passports, among other things.

How Does Travel Insurance Work?

In some cases, a traveler’s life may depend on travel insurance. A visitor who has purchased a policy will have round-the-clock access to one of the service providers provided. They are the ones who, in any emergency crisis, will assist in avoiding confusion, receiving information in their language, and receiving all essential medical care. What does it look like in practice?

Young Russian visitors were on vacation in one of the ski resorts. One of the hikers collided with another skier while downhill skiing, and the visitor suffered injuries to his arms and legs due to the crash. The victim phoned the service business right away. After submitting his application, he was flown to a medical facility in the host country by an air ambulance chopper. With the help of the hospital, an urgent surgical intervention was conducted on the arm and leg. Metal constructions are used. The tourists were evacuated home via plane after the operation. Only an additional business class seat was available for the journey.

There are no other options in such a case.

What Are the Guarantees of Travel Insurance When You Go Abroad?

• The extent of the guarantees depends on the chosen policy. Many players offer their own calibrated travel insurance contracts for stays abroad in the competitive market. The three central guarantees of an international travel insurance policy are:
• Coverage of medical expenses and hospitalization abroad. For example, you fall off a scooter in Thailand and are hospitalized for a week. The Insurer covers the costs incurred by paying the healthcare facility directly. It will be necessary to advance the costs and then request reimbursement most of the time.
• Repatriation assistance . For example, you may be bitten by a mosquito, which can lead to a severe infection that requires hospitalization. The Insurer’s medical team will decide on your return to France. You will be repatriated by air ambulance, and the insurer will take care of all of this financially and logistically.
• Foreign Civil Liability cover. Your Insurer covers the financial consequences of human or material damage caused to others while you are abroad. For example, you jostle a pedestrian in New York who dislocates his shoulder while falling. He has to undergo an operation. Other guarantees exist and are included, or not, in the basic travel insurance policies found on the market: luggage travel insurance guarantee (in the event of loss, theft, or damage), travel interruption travel insurance (if you have to stop your project because of an unforeseen circumstance). Those not included in the contract are generally offered as an option for a few extra dollars.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Are you worried about the rise in the price of electricity? Do you think you pay too much? Don’t worry—saving on your electricity is very easy. We have tricks and tips to help you do this.

The price of electricity rose in August 2018 to $64.32, 35.5% more than in the same period of the previous year and 3.9 in July. According to the data of the Iberian Electric Market Operator (OMIE), it accumulates five months in a row of rising.

We cannot reduce the price of electricity in the wholesale market, which supplies the retailers that we later hire at home. Instead, we can take specific measures in our house to consume less and reduce our electric bill.

Watch the Appliances

It’s important to note that the appliances consuming the most electricity are the refrigerator, television, washing machine, oven, and computer. Even when not in use, leaving these devices plugged in can result in standby mode energy consumption. By turning off all devices on standby, you can confidently reduce your energy usage by up to 10%.

The refrigerator is, by far, the appliance that spends the lightest: a third of all household consumption, according to Endeca data. The washing machine accounts for almost 12% and the oven about 8%. If you also have a dishwasher, you will consume even more. Why? Heating water is a function that requires more energy.

“The appliances that consume the lightest are the refrigerator, the television, the washing machine, the oven, and the computer.”

To reduce appliance consumption, you can do two things. First, stop by the store and invest in new devices with energy labeling A +, A ++, and A +++. You are a mandatory seal that indicates its energy efficiency and performance. Although it seems to you that it is a lot of money, they are more than profitable in the long run.

Second, if you do not want to make this investment, use programs with low temperatures when using the washing machine and the dishwasher. For the fridge, try to keep it in a not ridiculously hot place, never leave it open, clean the back frequently, and monitor the temperature. Maybe it is not necessary to be so cold for the food you have.

Adjust the Contracted Power

Once you’ve optimized your appliance usage, it will be easier to save electricity if you pay attention to your consumption. The central part of your bill is the contracted power, which represents the amount of energy you can utilize to run your home efficiently. Contracted power is measured in kilowatts (kW) and is specified on your bill. To simplify, you pay for every kilowatt you utilize, in addition to paying for the actual electricity consumption. You can utilize this helpful calculator to assess the right amount of power to contract without exceeding or falling short.

Study Time Discrimination

Conserving energy by making minor adjustments to your daily routines is achievable. Time-based pricing is a method of electricity billing aimed at reducing consumption during peak demand periods. It operates based on peak hours (costly) and off-peak hours (more affordable). The least expensive hours are from 10:00 P.M. to 12:00 P.M. in the winter and from 11:00 P.M. to 1:00 P.M. in the summer. By shifting 30% of your household’s energy usage to off-peak hours, you may potentially save up to $70 per year on your electricity bill. Moreover, if you encounter difficulties aligning your appliance usage with the off-peak hours, you can return to the standard rate. This serves as an example of a practical approach to conserving energy.

Compare the Rates of the Marketers

Have you ever considered changing the company of light? Marketers offer vastly different prices. Some have offered to attract customers, which usually has significant advantages. Changing companies is an excellent way to save on the electricity bill. Do not worry; the supply will not be cut even if you change providers. The procedure is simple and free.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Proper money management is the center of any household or business’s financial success. Developing a proficient grasp of financial management at a personal level will significantly enhance your effectiveness and ability to achieve financial freedom and success.

How to Manage Your Finances

First, record the current month’s planned income and expenses. Even if you have a good memory, a detailed spending plan cannot be held in your head. Recording it will help create an overall financial picture.

How to do it? To start, we draw up a table with all receipts and expenses on paper (or in Excel, as it suits you). It is essential to think over the aspects of life well and not miss anything. Although the first time, there will be shortcomings. It is impossible to carry out precise and correct planning right away. If you find any defects, you should record them in notes. This approach will help enhance the budgeting scheme for the next month. Then, each following account will be better than the previous one.

Steps to Help You Control Your Budget

You should plan any trip to the store. Following a shopping checklist as closely as feasible will help save money. It is helpful to make a menu for several days, based on which it will be clear how many products you require to purchase and in what quantity. To a considerable extent, the ability to plan your expenses well is influenced by the skill of time management. We have discussed it in detail in our article “Personal time management or how to manage your time.”

• Spending accounting: You can write them down in a notebook or notepad or use specialized applications on your smartphone. It helps to detect unnecessary purchases and avoid them in the future.
• Putting aside money: There is always a risk of deprivation of a permanent income. It is essential that in case of an unforeseen situation, there is a reserve that will help stretch out for several months. It should be at least three salaries.
• Family budget: planning and controlling home finances

The well-being of a family relies, to a large extent, on budgeting skills. Written planning rules are also needed here. The savings capacity is no less important than accounting for income and expenses.

There is an exciting way to organize a household budget. It is called “10-20”. Its importance lies in the monthly saving of at least 10% of the entire income. Financial experts advise you to set the goal of accumulation immediately—for example, a vacation, a significant purchase, or a reserve for a rainy day.

“Seven Envelopes” is another way to handle a family budget. On the day of receiving wages, you need to distribute the money in seven envelopes. Their goals can be as follows (there may be fewer or more points; everything is individual here):

• Monthly payments.
• Nutrition.
• Money for children.
• Expenses for essential purchases (furniture, appliances, clothing).
• Cash for vacation, entertainment.
• Savings.
• “Joy” – funds left from the last month after making mandatory purchases and payments.

By the names, it is straightforward for what purposes the family budget is distributed.

Method “Four Envelopes.” This choice is equivalent to the previous one. But here, each envelope compares to a week of the month. This method’s drawback is the difficulty of allocating funds for specific expenses.

When trying to maintain a household budget successfully, it is enough to follow seven basic rules:

• Avoid debt. Avoid debt, unexpected loans, and bad credit cards whenever possible.
• Moderate accumulation and allocation of funds don’t accumulate just for hoarding. Choosing a specific goal (for example, buying a car) is advisable. Such motivation will enhance productivity.
• Each family member must comprehend how and why the budget is planned.
• Distribute income and expenses according to financial facts today.
• Be sure to set aside at least 10% of income in the reserve fund.
• At the end of a certain period (for example, a year), please the family with trips, purchases, and entertainment.
• Regularly, preferably every month, plan and record. Only stability will help to achieve results.

These are a few ways of saving out of your budget and managing your spending better. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The following sources of finances are chosen to be analyzed to access the necessary finance:

1. Equity Shares
2. Retained Earnings
3. Government Assistance
4. Loan Stock and Debentures
5. Mortgage
6. Lease or Hire Purchase
7. Term Finance

Retained Earnings

The retained earnings are said to be the company’s residual net earnings after paying the dividends. The company saves it for future re-investment in its fundamental business. The retained earnings can be used to finance an organization’s property, plant, and equipment. Retained earnings can save the company large cash payments. The directors determine the dividend policy. A lot of retained earnings means that shareholders might expect considerable dividends. Retained earnings can be an attractive source of finance because it does not engage any shareholders or debtors. Its use can avoid issues of cost, which is generated in the issue of debentures or shares.

Equity Shares

As the name suggests, it is a type of equity financing. There are various ways to raise money by issuing stocks, e.g., new issues of ordinary shares, deferred ordinary stocks, preference shares, and right issues. A company can raise new issues of shares to raise its capital. It is a long-term external source of finance. The company does not have to repay its shareholders, although they can buy back its shares. The company is not liable for any interest or dividend payments, but shareholders expect some dividend payments at the end of each year.

Rights issues refer to issuing ordinary shares to existing shareholders. However, rights issued are offered relatively at a low price to ensure shareholders’ acceptance. Another way of equity share is preference shares. This type of issue can increase a company’s financial leverage, and it is more flexible than debt financing, though it is relatively more costly. Preference shares are redeemable and do not carry voting rights. 

Government Assistance

As the name suggests, Government assistance refers to the finance that the government provides through cash grants or another form of direct aid. The government offers grants to strengthen the country’s national economy. They can deliver massive financial rewards with just one proposal. The company which receives government assistance enjoys a high level of credibility. However, the paperwork for the government grant and proposal-making process is very hefty and time-consuming. The company must abide by certain rules and laws. Not all firms are eligible to apply for government assistance. Location is an essential factor. The grant is only provided when the firm operates within the country’s boundaries.

Loan Stock and Debentures

Loan Stock is a form of long-term debt financing. The company raises money by issuing debt with fixed-rate interest on a half-year or annual basis. Debentures are written acknowledgments of loan stocks that state conditions regarding interest payments and loan repayment. They can be either secured or unsecured.

Debentures are lower in cost than preference and equity shares. Nonetheless, they increase an organization’s financial leverage and risk. Debentures are redeemable but require a large cash outflow for redemption. Interest payments are highly obligatory anyway; they are tax-deductible expenditures and, therefore, sales taxes.

Mortgage

A commercial mortgage is a type of loan where the firm agrees with a lender (bank or financial institution). All the cash is received at the beginning of the agreement, and then the company makes regular payments to the lender in full over a specific and agreed period. The land or building is used as collateral. The interest payments on the money can either be fixed or variable.

The commercial mortgage has a lower interest rate and may result in substantial capital growth over a long period. As the mortgage period is typically long, the company can focus on other financial matters. Mortgages are less difficult and least costly to terminate than long-term lease agreements. However, the property’s security and maintenance are the company’s responsibility.

Lease or Hire Purchase

Lease and Hire Purchase is another type of finance source that allows a business to use an asset in exchange for regular payments over a fixed period. The company selects the property, plant, or equipment it demands, and the financial institute then buys that asset on behalf of the firm. 

Hire Purchase

The company becomes the owner of the asset after all the payments are made. This transfer of ownership is based on the payment of the fee option to purchase, otherwise automatically. From the initiation of the agreement, the firm claims ownership of the asset, which results in substantial tax benefits and incentives. The maintenance of the asset is the firm’s responsibility in the purchase of a hire. 

Lease

In a lease, ownership is never transferred to the firm. Instead, leasing institutions enjoy capital allowances (e.g., tax), and some of the benefits are passed on to the firm in the form of lowered rental rates.

Finance Lease

This is most like a hire purchase. Also known as a full payout lease, the leasing institution fully obtains the asset of cost and other charges over the lease period. Even though the company does not own the asset, it has most of the risks and rewards of the asset, e.g., maintenance and insurance of the asset.

Operating Lease

An operating lease is often used when the company requires the asset for a short period. The leasing company leases the asset to the firm, and after the lease period, the asset is leased out again to another user. Therefore, the full recovery of the asset’s cost is not made in the operating lease.

Lease or hire Purchase is long-term finance. It might be extremely costly if the company decides to terminate the lease agreement early. The lease and hire purchase methods, which involve regular payments throughout the lease agreement, will aid in adequately budgeting and forecasting for the firm. 

Term Finance

Term finance or term loans are the basic source of long-term debt financing used by companies for the acquisition of non-current assets, including land and buildings. They are payable over some time with fixed, regular installments. The interest on term loans is deductible, hence saving tax, in contrast to equity and preference dividend payments. They have a lower issue cost than equity financing. Alteration of the debt instrument’s maturity can occur regarding an organization’s capital requirement. 

Term loans are legally bound. Failure to pay interest or principal may lead to bankruptcy. They raise a company’s financial leverage and cost of equity. Term loans are usually secured financing; the asset against which they are raised is known as the primary security.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The tools and techniques presented in this article facilitate the financial performance evaluation of a company’s financial data. Performance evaluation generally includes analysis of financial statements. Evaluations require comparisons. The various techniques are given in detail below:

Common-Size Balance Sheet

A common-size balance sheet is prepared by dividing each item by the same period’s total assets and expressing the results as percentages. This highlights the balance sheet’s composition, such as ‘What is the mix of assets being used?’, ‘How is the company financing itself?’, ‘How does one company’s balance sheet composition compare with that of peer companies?’ and ‘What are the reasons for any differences?’

Common-Size Income Statement

In a common-size income statement, we divide each income statement item by revenue or sometimes by total assets, especially for a financial institution.

Cross-sectional statement

A cross-sectional statement compares a specific metric of one company with the same metric of another company or group of companies. This allows comparisons even though the companies might be of significantly different sizes or operating in different currencies.

Time Series Technique

The time series technique is widely used in financial performance evaluation, for which analyzing the financial statements is particularly important. The performance over several years or quarters is compared in the time series. This method is also used for inter-company financial performance comparison. The trend developed from time series analysis can be used to predict future earnings, sales, or ratios. The estimation of future earnings is one of the most critical factors investors should consider before investing. The positive future is what drives the investors into the company. Meanwhile, a dubious future means fewer investors are interested in the company, hence a decline in the stock prices.

Ratios

Ratios are the most widely used technique in analyzing financial statements. There are many relationships between financial accounts and between expected relationships from one point in time to another. Ratios are a helpful way of expressing these relationships. They express one quantity about another. The next section gives a detailed explanation of the ratio.

Risk vs. an Average Gain

Estimation of risk and average gain also plays an important role in evaluating a company’s financial performance. Though they cannot be accurately estimated, an approximate estimation of risks and gains is required as the automotive industry has many risks but incredibly low gains. A company’s risk is calculated using the standard deviation coefficient of its total revenue. Similarly, gains are estimated for each company by calculating the average return rate on assets and then comparing it with risk.

Introduction to Financial Ratio Analysis

Financial analysis tools can help assess a company’s performance and trends in that performance. Various financial analysis techniques exist, such as ratios, standard–size analysis, Cross-sectional analysis, Trend analysis, etc. Financial ratio analysis is one of the best tools for evaluating a company’s performance.

The financial ratio is the numeric outcome obtained by dividing one financial data by another and is used to express the relativity of different financial variables. Balance sheets and income statements are the two most important and most used sources of financial information when calculating ratios. The financial ratio is the numeric outcome obtained by dividing one financial data by another and is used to express the relativity of different financial variables. Financial ratio analysis involves calculating and analyzing ratios that use data from one, two, or more financial statements.

Purpose of Ratio Analysis

The value of ratio analysis is that it can evaluate past performance, assess the company’s current financial position, and gain insights that are helpful in projecting future results. Financial ratios provide insights into:

• A company’s financial flexibility or ability to obtain the cash required to grow and meet its obligations, even if unexpected circumstances develop.
• The ability of the management
• Changes in the company and industry over time
• Comparability with peer companies or the relevant industry
• Limitations of ratio analysis

Limitations include the following

• Companies may have divisions operating in many different industries, making it challenging to find comparable industry ratios for comparison purposes.
• One set of ratios may indicate a problem, while another may suggest that the potential problem is only short-term.

Only a few ratios are considered, as the number of existing ratios is too great. It is impossible to calculate all the ratios. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Supply Chain Management is the art of ensuring the seamless flow of goods and services. Companies worldwide strive to deliver excellence to their customers and seek out new avenues of competitiveness, all under the auspices of supply chain management. The concept of “relationships” is at the heart of supply chain management, embodying its profound impact and significance. There are different types of relationships, such as strategic, tactical, transactional, internal, and so on.

These relationships are more prevalent within the supply chain community. Effective supply chain management is crucial for organizational success.

Supply chain management is an essential part of any business. It is the process that determines how a company functions, how it needs to work together, and how to create business relationships with customers and suppliers.

The role of Supply Chain Management CM is explained further below:

• Sales and Marketing
• Finance
• Operations
• Human Resource

For sales and marketing purposes, the organization will use sales promotion strategies such as product upgrades, gift cards, marketing campaigns, and impulsive buying. Leading corporations inspire the company to invent new marketing promotions.

The finance department has two areas focused on financial reporting and management accounting. These functions have different functions, but working together can enhance the best financial position for the company.

Operation Management has evolved to maintain the position of any multinational organization.   The ten areas represent many strategic areas, such as:

• Goods and services, which are design and product material
• Management of Inventory
• Layout Design and Strategy
• Strategy of location
• Maintenance
• Process and Capacity Design
• Quality Management
• Supply Chain Management

Human resources take care of current and future demands and supplies. HR is always ready to work for future demands, and HR is training for skills needed in production.

Key Drivers for Achieving an Integrated Supply Chain Strategy in an Organization

Some key drivers will help an organization in achieving an integrated supply chain:

Facilities

The facilities manager’s most considerable responsibility is to confirm the quality of the output facilities that have to be maintained by the staff. Proper quality reviews and checks by the operation should be done correctly.

Inventory

Inventory management should follow the system of JIT, also known as Just in Time. This system delivers the order to their customers as soon as they get the order.

Information

A progressive multinational corporation has hands-on information because its IT is powerful, handling daily sales and customer orders.

Sourcing

A prolific firm will be strong in its good sourcing if it begins with direct and indirect suppliers because it has recognized the significant effect of a large, global supply chain. Therefore, the company will directly work with its suppliers.

Pricing

Pricing products and services should be in conjunction with “price building” and “psychological pricing.” That is why top-listed corporations hold the world’s largest share of well-known brand equity.

Globalization

It has become a sign of globalization because every organization wants to be the leading corporation in the world.

Technology

Reputable firms work closely to automate their supply chain management systems to reduce turnaround time and improve functionality. Whenever inventory levels decrease or demand increases, the organization’s automated ERP generates invoices, which are automatically relayed to both ends of the chain.

Customer’s expectation

Prominent firms prioritize their customers because of their feedback. Their customers are their family, so they develop new ideas to facilitate them, such as a mystery shopper checking the customers’ experiences and feedback.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Not everyone knows about ten-year insurance. However, with the real estate crisis and the millions of homes built during the U.S. real estate bubble, the term has been gaining popularity.

Initially, when you are going to work on a project, what do you think first? As a wise contractor, you consider making a good profit and reducing the risk of losing money. A ten-year insurance policy is the best option to make your work highly profitable. Let’s see what it is and how you can leverage it.

What is Ten-Year Insurance?

Ten-year insurance guarantees the responsibilities of builders, developers, and architects of a building for material damage caused by defects that affect the stability or mechanical resistance of the building.

What Risks Does Ten-Year Insurance Cover

Ten-year insurance is backed by Law 38/1999, of November 5, on Building Planning. Its creation tried to solve those problems before the civil liability insurance partially remedied its publication that some professionals or promoters had.

For this, article 19 of the Law establishes three deadlines in which responsibilities can be demanded:

• Damages compromise the building’s mechanical resistance and stability. Repairing damages caused by defects in the foundation, beams, and slabs, among other things, takes ten years.
• Damages that do not comply with the habitability requirements: up to three years for defects in construction elements or facilities.
• One year for defects that have occurred in the finishing or finishing elements of the work.
• Mandatory ten-year insurance
• The Law establishes its obligation for those buildings whose main destination is housing.

To make this obligation effective, it does not allow the inscription of the new work in the Property Registry, making it impossible for the developer to obtain mortgage financing or market the homes.

In 2002, a modification was made stating that it would not be enforceable if a single-family home were for the developer’s enjoyment.

However, the problem arises that the house can be transferred to an unprotected third party before ten years. Therefore, the Law obliges the self-motor-seller to contract a guarantee for the remaining time until the ten years are completed.

Need for a Technical Control Office

The Technical Control Offices (OCT) are engineering and architecture companies whose mission is to control the quality of the product, execute the materials of the building process, and apply the regulations. In short, the OCTs review and report on both the documents of the work to ensure that what is being done is done according to the required quality.

The OCT supports the insurance company issuing the ten-year insurance since most insurers only admit risks if an OCT supervises the work.

However, there is also the possibility of contracting ten-year insurance without OCT if the building is finished, with very few insurance companies willing to assume these risks and demanding very high premiums.

Essential Facts About Builder’s Risk Insurance

1. It refers to construction insurance. It helps you when you cover all your construction projects during construction.
2. It is a specialized part of property insurance that covers the structure during a property construction or remodel project when homeowners’ policies will not work. 
3. It covers all the materials and supplies you need to finish your construction project. They don’t pay from their pocket if the builder’s material is damaged due to flood, fire, or high winds. 
4. You can avail of this policy unless you finish your construction projects, whether the duration is up to three months, six months, or one year. An insurance policy will benefit you if the completion of your project takes longer. 
5. A builder’s risk insurance policy provides comprehensive coverage that protects you from intentional acts, specific inclusions, and short fraud. 
6. It also covers your temporary structures, and you don’t need to pay for the damage to your scaffolding or constructor forms. 
7. This policy will cover the expense of others’ damage during construction. For example, if lightning ruins anything in your neighbor’s house or spreads fire to your project during construction, the builder’s risk insurance policy will give full coverage. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.