Life insurance can offer a solid jumpstart towards the future security of your dependents. It may be an intimidating topic; however, it must be considered by every household, particularly by the family’s primary provider. [Read more…]
3 Reasons You May Need Car Insurance
Getting car insurance can be a big responsibility, especially if you have never had it before. However, there are many reasons you should get one. This article will give you the information that you need to decide whether or not you should get car insurance, and what kind of policy you should get. [Read more…]
Is Renters Insurance Worth It?
Whether you are a first-time renter who is learning about insurance for as a beginner or a long-time renter who has questions, it is important to understand the coverage you are getting. Some renters choose not to take out renters insurance because they think it is unnecessary or too expensive. Other renters are under the wrong assumption that their belongings or any property damage is covered by the landlord’s homeowners insurance. Here is why you need renters insurance and what it covers. [Read more…]
How Much Cash Is Needed to Start a Pawnshop?
So you want to start a pawnshop. Where do you start? What do you buy? How much is this all going to cost?
A pawn shop can be a very cash-positive business. While doing research for this post, I stumbled onto a Quora thread that showcased how much money can be made with such an operation. The profits ranged from $30,000 per year to $60,000 per month.
But, you have to get started. In today’s post, we’ll highlight what you need and what it’s going to cost.
What do pawn shops do?
First off, we have to talk about what a pawnshop actually does. Pawnshops buy, sell, and trade items. These items can come from the owner’s personal collection, something they acquired via purchase or something they acquired via loan collateral.
When someone comes to a pawn shop to borrow money, they have to bring something of value for collateral. When the pawnshop lends money to this individual, they retain that valuable item until the principal (plus interest) is repaid. If they fail to repay, the pawnshop keeps the item.
Legal and location
There are many things you need to obtain when you start a pawnshop.
You need to take care of the legal requirements first. This includes licenses, articles of incorporation for your business entity, and permits.
Licenses include pawnbroker’s license, precious metal dealer license, secondhand dealer license, Federal Firearms License (if you plan on selling firearms) from the ATF.
The next thing you need is space. Where you set up shop is an important decision. The right location can bring in a lot of traffic and improve your earning potential. However, the right location comes at a cost.
Areas with high foot traffic cost more. Often, pawnshops will choose a space that’s close to a popular area, far enough away that it’s not too expensive, but close enough to make it convenient for the consumer.
Assets
There’s a minimum asset requirement needed to open. That number depends on the municipality, state, and country you plan on setting up shop in. For example, Texas has a $150,000 minimum requirement.
What do you need?
After you have all of the proper licenses and permits and pick where you’ll operate, you need to buy things to be operational.
These items include a computer (computer system/network), cash register, signs, equipment to display your products, record keeping, insurance, lockable cases, and a state of the art security system.
What you’ll also need is an adequate amount of capital to purchase more inventory and lend money to consumers.
What’s going to cost
Depending on the size of your pawnshop and the anticipated foot traffic, your start-up costs will vary. If you’re a larger shop with a high probability of having a lot of visitors/customers, your starting capital could be between $50,000 and $75,000. A smaller shop with lower projected traffic can get by with $15,000.
Last bit of advice
When you start a pawnshop, you need to refine and learn some new skills. You have to educate yourself on how to assess the value of goods so you can acquire sellable items, but not at a cost that eats into your profit margin.
Also, you have to come up with a business plan. What interest rate will you charge on your loans? How much will you mark up the items you sell? How much are you willing to pay for inventory?
All of these questions need answers. Keep in mind, this planning process should take place prior to buying the necessary licenses and other items to get the business started.
Related reading:
3 Ways to Get Financing for your Small Business
Some Often Overlooked Tax Deductions for Business Owners
Business Retirement Plan Guide
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see website for full disclosures: www.crgfinancialservices.com
Why Understanding Your Paycheck Stub Is Important
Understanding your paycheck stub is essential. Your paycheck stub is included when you get paid. Whether you do direct deposit or get paper checks, the pay stub will show important information about your pay.
There are several key pieces to the paycheck stub – gross earnings, taxes, deductions, and net earnings. There are also other, seemingly, unimportant things on your paycheck. The information included on a paycheck stub include:
- Hours works
- Wages earned – gross and net
- Overtime
- Benefits – i.e. health insurance premium payment, retirement plan contributions
- Taxes – federal, state, fica (social security 6.2, medicare 1.45, and .9 surtax if you earn over $200,000
- Year to date info – hours, wages, taxes, benefits, etc.\
- Personal information – name, address, social security number
- Date of pay period
- Pay rate
- PTO, sick days, vacation days
Why is understanding your paycheck sub so important?
A pay stub is a way of keeping accurate records. It shows what employees worked, what they were paid, what taxes were taken out, retirement contributions, etc.
Because it’s your responsibility to report and address discrepancies. If you think you got paid less than you were supposed to or worked more than what’s reported, you need to bring that up. If your deductions (retirement plan contributions, taxes, health insurance premiums) appear to be less or more than you assumed, you need to bring that up.
Why are those things important?
- What you earn is what allows you to afford to live. If you worked more or worked overtime, and it wasn’t reported correctly, your paycheck can suffer.
- Taxes are incredibly important – if you expect to get money back on your tax return, but come to find out they weren’t withholding enough, you can end up owing instead. Your withholdings are very important to understand.
- Health insurance premiums – if you’re not paying enough, your policy can cancel due to non-payment. What happens then? You go to the doctor and pay through the nose because you don’t have coverage?
- Retirement plan contributions – If they “contribute” too much, you will have less on your check. If they “contribute” too little, your nest egg will suffer.
Paycheck stubs are incredibly important. They help you and your employer keep track of pertinent information, like taxes, health insurance premiums, retirement plan contributions, and your salary. Make sure you understand it and make sure you address any sort of discrepancy. That’s your responsibility.
Related reading:
Three Accounting Tools Every Small Business Needs
Does Health Insurance Affect Your Taxes
Is Long Term Disability Insurance a Good Buy?
Most professionals spend time planning for the future. The issue is, not everyone considers what they would do if they were suddenly unable to work. Having your income disappear due to a disability could be earth-shattering. As a result, many begin to explore their long-term disability (LTD) insurance options. But figuring out whether LTD insurance is a good buy can be challenging. If you want to see whether securing a policy is a smart move. Here’s what you need to know.
Here’s What Kinds of Deaths Are Not Covered by Term Insurance
Term life insurance can be a valuable tool for protecting your family’s financial well-being. Especially, in the case of the primary or secondary breadwinner’s death. However, term insurance doesn’t cover everything. The answer to the question, “What kind of deaths are not covered in term insurance?” is surprisingly long. If you want to know what the coverage excludes. Here’s a look at the types of deaths that don’t qualify for a term life insurance payout.
3 Types of Insurance Coverage That May Protect Your Business From COVID-19
The economy of the entire world will be affected in the coming years as a result of the coronavirus. Multiple experts are trying to speculate the amount it will take to recover from these effects, as the COVID-19 cases keep raising daily. [Read more…]
7 Kinds Of Insurance Every Business Needs
Commercial Insurance Broker Toronto | KASE Insurance
When people start making plans to start their business, they sometimes overlook the fact that they need to get different types of coverage. Thousands of companies provide guarantees to protect owners against any unforeseen costs related to lawsuits, thefts, and accidents, among other things. Commercial Insurance Broker Toronto | KASE Insurance like companies, cover several policies under a single contract to make it easier for their clients. Here are the various plans every establishment owner should consider getting. [Read more…]
How Can Disability Insurance Help? All You Need To Know
You may have got insurance for your home, car or health because this is something that everyone does. But have you thought about insuring your ability to make a living? Probably not, even though you will now realize that it matters the most! Getting disability insurance is a smart move in this context because it pays up a portion of your income if you cannot work for a prolonged period due to an injury, illness or workplace accident. In fact, anyone who relies on a paycheck and has dependents to support should absolutely have this coverage. Here are some facts that you need to know about disability insurance.