Should I take a deposit?
Requesting a deposit establishes you as a professional who values your job. It is common practice in the business, and savvy clients will expect you to make payment requests upfront or chase overdue invoices.
Enforcing an upfront fee, like a deposit, ensures that a customer is invested in a project or job from the get-go. Clients who have already paid for part of a job are less likely to skip or miss payments down the road. And, you'll already know that they have a reliable payment method to use in the future.
Before you start a job
It's a good idea to ask for a deposit before you start any job, whether you ask for a fixed amount or for a percentage. This is typically an upfront payment that will help you cover the costs of the job.
Deposits. When you pay a deposit you are paying a percentage of the price of a product or service. Paying a deposit shows that you intend to buy the item or service. It means you are entering into a contract with the business.
It not only protects you against a possible loss, but the more invested the customer is in the project, the less likely they are to cancel down the line. The project is expensive. Some projects have high up-front costs. Asking for a customer deposit ensures you have enough cash on hand to purchase necessary supplies.
It's a good idea to keep a small sum of cash at home in case of an emergency. However, the bulk of your savings is better off in a savings account because of the deposit protections and interest-earning opportunities that financial institutions offer.
8. 50% deposit required. Not used in every business, a 50% deposit is fairly common in professional services industries such as those offered by attorneys and accountants. A 50% deposit is also common in the construction and home improvement industries, where jobs can take months to complete.
Hello [name of the client], I hope you are doing well. This is a gentle reminder that the deposit for the attached invoice [invoice number] for [job description] is due in [time frame] on [due date]. Here are my contact details [phone number, email] if you have any further doubts or concerns.
Don't agree to pay everything up front, in case something goes wrong or the contractor doesn't turn up. If they ask for a deposit to pay for materials, offer to buy them yourself instead of paying a deposit - that way, at least you own the materials if something goes wrong.
The key to any successful negotiation is to communicate clearly, respectfully, and honestly with the landlord. You should be prepared to explain your reasons for requesting a security deposit waiver or reduction, and to listen to the landlord's concerns and expectations.
Can I get a deposit back if I change my mind?
Absolutely. However, if the terms of your contract state the deposit is non-refundable, then you lose your deposit. If the terms state the deposit is refundable, then you get your money back.
If you change your mind before moving in
If you sign a contract, this is usually legally binding. There is no cooling off period with tenancy agreements. The landlord might keep the holding deposit in agreement to release you from the contract.
The exact deposit amount contractors ask for upfront varies and is especially dependent on the size of the project. For relatively small jobs, like a $16,000 bathroom remodel, contractors may ask for a 50% deposit. For large jobs, like a $100,000 full-home renovation, a 10%–20% deposit is more typical.
You generally should not have to pay the entire cost upfront, and you should try to avoid doing this. If you pay someone to do work before they have finished it, it might be difficult to get any problems sorted later. However, the business can ask you for full payment up front.
The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.
Stocks. Not surprisingly, owning stocks is one of the main categories where millionaires and billionaires prefer to keep their money. The survey shows that 23% of wealthy people's money was in stocks. Interestingly, HNWI have retreated from stocks slightly over the past year.
Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund.
Depositing a big amount of cash that is $10,000 or more means your bank or credit union will report it to the federal government. The $10,000 threshold was created as part of the Bank Secrecy Act, passed by Congress in 1970, and adjusted with the Patriot Act in 2002.
Financial institutions are required to report large deposits of over $10,000. However, if the bank reports your cash deposits before you do, you may end up with a fine or, worse yet, have your account frozen.
Most banks have flexible policies on how much you can deposit. If you plan to deposit more than $10,000 at a bank, remember that the transaction will be reported to the federal government. This enables authorities to track potentially suspicious activity that may indicate money laundering or terrorist activity.
Should I pay a contractor 50% up front?
Avoid paying in cash. Contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less. * (This applies to any home improvement project, including swimming pools.) Stick to your schedule of payments and don't let payments get ahead of the completed work.
Accepting a lower salary can be difficult if you hang your self-worth on the size of your paycheck. Instead of thinking about salary as a measure of your worth, think of it as what the market is willing to pay for your skills, knowledge and experience at this point in time, Zwell recommends.
Employers cannot legally withhold your first paycheck. Sometimes employees perceive that a first paycheck is being held when, in actuality, it's simply delayed. For example, many companies pay in arrears.
Overall, we recommend that you start with a figure that's no more than 10-20% above the initial salary. If the pay is in-line with average pay, but you believe you can negotiate based on your skills and experience, consider a range between 5-7% above.
Remember, you're applying for entry level, and you shouldn't expect something on the higher range. Consider negotiating lower if 10-20% places you above the average. Is the pay in-line with average pay, but still believe you can negotiate based on your skills? Consider a range between 5-7% above.
