The Basics of Grant Writing

There is “free money” out there. You’ve probably heard of these pitches at one point in your life and in all likelihood, you never believed it. But if you have a project that you are passionate about, are willing to take the time to find this “free money,” and learn the ins-and-outs of grant writing, then the funds you need might just be within reach. [By the way, “free money” is placed in quotation marks because it’s not really free. If approved, the money will have to be used as outlined in the award or else you might be asked to return the entire grant, including the amounts you’ve already spent.

You—or anyone for that matter— can write a request for a grant. For as long as you know how to use a computer and can organize your thoughts then writing such a request is within your reach. But whether you will be awarded the grant is another matter altogether. Not everyone who asks for a grant gets it. And most of the time, the reason stems from the grant-seeker’s lack of understanding about the grant-writing process.

This report will guide you to the basics of grant writing. We will start by defining the terms, understanding the various parts of a grant application, and the various types of grants that can be given to those seeking funding.

Definition of Terms

Understanding the language used in grant writing is the first step towards being able to request for one. Here are the most common terms used and their definitions:

Grant. A grant is a monetary award that is given by the grant makers or grantors to a recipient or grantee. A grant is not a loan because it does not have to be paid back. If the federal government or its agencies participate in the implementation of the activities together with the grantee, the award is called a cooperative agreement. Without government participation, the funding is simply called a grant.

Grantor. Also called grant maker or funder, a grantor can be a government agency at the federal, state, or local levels; foundations; companies; and philanthropists. Although grant money does not have to be repaid, grantors may have stipulations on how the award is going to be used. Most of the time, government grantors require grantees to meet a lot of conditions while private sector funders (e.g. foundations) don’t have as many stipulations in their awards.

Grantee. The recipient of the grant. You become only a grantee upon receiving the award. When you’re still applying and waiting for this result, you are called a grant applicant.

Grant Application. This is the grant applicant’s proposal or funding request to a grant maker stating what you intend to do should you receive the award. This is where your grant writing skills and knowledge come into play.

Grant Monitoring. This refers to the ongoing assessment of the activities and programs for which the grant was given. Depending on the requirements of the grantor, this can be something as simple as an annual written report or a more rigorous monthly accounting.

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Debunking Fallacies about Debt

Americans believe that debt is normal. We can’t imagine life without our credit cards; go through college without student loans; or get a home without mortgage. Credit and debt have become so intertwined into our lives that we consider it as normal. And like anything else in this world, anyone who does not follow the norm is considered different and treated like an outcast.

This is pretty much how our society treats individuals who believe that debt is bad, that it is something that we can do without, and that we are better off if we wipe our debt slate clean as soon as we possibly can. Those who are for the elimination of their debts are treated as pariahs when in fact it’s the only way towards financial independence. What makes this pill very hard for so many to swallow are the fallacies that have been fed us since day one. Identifying these fallacies about debt is the first step towards gaining a real understanding of the real face of debt.

In the following sections, we will debunk the various fallacies about debt that our society has long believed to be true.

Fallacy 1: Debt is needed to create wealth.

Truth: Debt is risky and cannot make you rich.

For far too long, we have been led to believe that you need to go into debt in order to create wealth, that you need to loan large amounts of money in order to start a business, and that using credit available at our disposal for as long as we pay it back is good. Debt is supposed to be a tool that, when used wisely, will help you reach your dreams. If you are studying business or accounting in the university, your professors pretty much say the same thing. Financial self-help books written by supposed experts in the field also echo the same fallacy over and over again.

Unfortunately, this is not quite right. The truth of the matter is that debt is quite risky and any leverage that you’re supposed to get from it is counterbalanced by this risk. If you apply this to the real world scenario of starting a business, you will immediately know the truth. Let’s say you borrow capital to start your own entrepreneurial venture because your feasibility studies show that your business would click. Unfortunately, when you had finally set up shop and actually started the day-to-day operations, you find out to your dismay that you were just breaking even on some days and losing on most. Not only are you not making a profit, you also have to take care of the payments of your outstanding loan.

Contrast that if you were to start your own business from your own savings. If worse comes to worst, you might lose everything but in the event that you do, you don’t have to worry about paying anyone and getting sued if you don’t. You have only lost your own money and can just “charge it to experience.”

Fallacy 2: Loaning money to friends and relatives is an act of kindness.

Truth: Loaning money to people you love destroys relationships.

First, let’s get one thing straight: Loaning your best friend or your child money is different from giving them money. When you grant them a loan, you expect payment and they look at you as a lender and put you on the same level as that of a bank or any other financial institution they hold loan accounts with. It doesn’t matter if you, out of the kindness of your heart, granted your loved one an interest-free loan or charged very minimal interest. The loan itself changes the nature of your relationship. And this change becomes more evident if your loved one becomes unable to pay the loan.

The most common reaction would be avoidance. They would go to a self-imposed exile out of shame and guilt for not paying you back. There goes your relationship—and all because you thought that granting a loan is an act of kindness.

If you want to help out a loved one, do not grant them a loan. Give you have something to give and expect nothing in return.

Fallacy 3: Cosigning a loved one’s loan is another act of kindness.

Truth: Cosigning a loved one’s loan will almost always mean that you will have to repay it.

We all want to help a relative or a friend in need. But if your sister wants you to cosign a loan she has a hard time applying for, ask yourself why she needs a cosigner. As you may already know, one of the main reasons why lenders ask someone to co-sign a loan is because the borrower has had a history of non-payments. Whether it is just a habit of paying the bills late or something as serious as filing a bankruptcy, an individual’s credit history has already been marred in some way and the bank wants to make sure that someone will pay this person’s debt in case the borrower is unable to.

While it is not good to judge anyone—after all, so many people have rebounded and paid off their debts even when someone cosigned for them—it is perfectly reasonable to assume that there is a good chance that you will end up paying your sister’s loan if she defaults. This can only lead to resentment on your part and again, guilt and shame on the part of your sister—a perfect recipe for broken relationships.

Talk with your loved one and if you can help by giving money then do so. But it’s a bad idea to cosign.

Fallacy 4: Payday loans and other forms of cash loans help those with insufficient income.

Truth: These are examples of predatory lending that do not give any benefits.

If you live from paycheck-to-paycheck and still fall short of cash a week before payday, it is tempting to resort to payday loans. After all, if you just need $300, these types of lenders will give that to you right away for only a small service charge, of say, $30 for example. Then you pay it when your paycheck arrives. However, when you look at the math, you’ll realize that you’re actually paying sky-high interest rate when computed on an annual basis. Compared to the standard APR of credit cards which is pegged at 12 percent, payday loan interest can go anywhere from 400 to 5,000 percent in a year.

But what is worse for most payday loan customers is that resorting to this does not help change their mindset about saving and spending. They believe that since it is there, they don’t have to worry about not making they check last until the next payday. Borrowing also becomes highly addictive for some. They borrow from many different payday loan lenders even for non-essential needs and find out that they are in hot water when they cannot anymore repay these. You do not win with payday loans.

Fallacy 5: It’s perfectly okay to buy your home furnishings and appliances under a financing plan.

Truth: The only way to buy these items is to pay for them in cash.

Many furniture and electronics stores offer financing plans for customers who want to buy a new dining set or a brand new flat screen television but don’t have the money for it yet. Many are easily lured by promos which tout “good as cash” deals if you pay for it in three months or less.

The problem with these offers is that they often come with many hidden charges and conditions. Unless you read the fine print of the contract before you sign, you will most likely be shocked when payment time comes that you are paying more than what the salesperson said you would pay for.

The only way to buy chairs, beds, gadgets, and other similar items is to save for them, ask for a discount, and pay in cold hard cash.

Fallacy 6: Getting a car loan is very acceptable and is a part of life.

Truth: Constantly paying for a car is a waste of money.

We know that cars are a necessity these days. But you have a choice as to the kind of car you will get. You also have a choice as to how often you need to buy a car. Unfortunately, many Americans think that their car needs to be changed every three to five years so that no sooner had they finished paying off their previous car, they’re off shopping around for a new one. This behavior seems to be regarded as “normal” since everyone is doing it. Everyone except those who can actually afford to.

Millionaires and billionaires know that being a slave to car payments is a big waste of wealth. The money you use to pay for the car can be put to your own savings or even invested in the stock market to give you returns in the long-term. Take care of the car that you have already paid in full for and it will still reliably take you anywhere you want to go minus all the payments.

Even if you are offered a zero percent interest on a new car, you’re still throwing away a precious amount of money especially if your old car is still in top condition. Remember that once you drive away with that new car, it immediately starts to depreciate. You’ll never be able to recoup what you paid for it because in the span of five years, you will only be able to sell that car for so much less than what it originally cost you to pay for it.

Instead of getting a new car, investing the monthly payments supposedly intended for that new car is a far better idea. Doing so will bring you closer to your goal of creating wealth and not burden you further with debt that will only bring you to financial ruin. Later on, when you’ve already secured your finances and have money to splurge then you can gift yourself with that set of wheels that you have always wanted—paid for in cash, of course.

Check out www.adamscapgroup.com for more Information on Guide to Investments.

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Pain is a Natural Part of the Process

Once you acknowledge that you have a problem and are determined to do something about it, you have to realize that no change is possible without some degree of pain. Depending on how problematic your financial situation is, you have to expect that there will be some “conveniences” and “comforts” that you are used to that you are going to have to learn to live without.

The process is not going to be pleasant. But these sacrifices are minor compared to what you stand to gain when you accomplish your goals. You have to remember that you are where you are right now because you chose to be. No one told you to splurge and spend (although you could argue that advertisements lured you to swipe and swipe—but that card won’t jump out of your wallet if you did not intentionally take it). No one told you to give your kids everything they asked for even if you know that you could not afford it.

As a couple, both of you decided to buy a house that you know is well beyond your means. You bought your luxury vehicles because they look cool even if you are already having a hard time keeping up with your mortgage payments. You throw lavish parties every weekend and invite family and friends over—which isn’t bad in itself—but you charge everything and worry about the payments when billing time comes.

The will to change your spending habits and start having a healthy relationship with money is just a start. It is the doing that will really test your mettle. Righting previous financial wrongs can take many years and for the first few months in your endeavor, you are going to be in for some rough patches.

You can liken it to the withdrawal symptoms experienced by those who are trying to wean themselves from alcohol or recreational drugs. They have been far too dependent on these for too long that when they begin the road towards rehabilitation, they experience depression, anxiety, and craving. But with time and appropriate guidance, therapy (if needed), and support, the symptoms will gradually disappear.

If you have been too dependent on credit for too long and want to change, you can expect to feel these withdrawal symptoms. There will be times when you will be depressed at the fact that you are not eating restaurant meals as often as you used to or at the fact that you have to say “No” to your kids when they ask to be bought a new gadget. There will be moments when you will be anxious at the fact that you have left yourself without any credit card “escape routes” to use in case you decide that you have an “emergency.” You will crave for the things that you did before and it will take a lot of effort to say no to yourself.

Don’t expect a lot of your friends or even your family to understand. Jokes will be made at your expense and you have to be ready for that. Yes, it will hurt and because it came from a loved one, the pain will even be worse.

But as time goes by and you continue to stick to your plan and your budget, you will find that allocating your resources right where they belong becomes easier. Those withdrawal symptoms gradually disappear and as you find your debts decreasing and your savings increasing, you will be encouraged to continue with more zeal and fervor than ever before. As you embrace your newfound knowledge and wealth, all those jokes made at you will slide off as harmless. You can even have a good laugh at it.

Yes, the path to financial freedom is not easy. There will be desperate times. But for as long as you (and your spouse) know where you’re going and you know that you’re getting there one small step at a time, you will realize that you’re on the road towards reaching your goals sooner than you had initially cared to imagine.

Remember, there is no easy way. Motivational speakers can only go so much. They can only fire you up to start. But if you don’t take action, that initial fire will easily die down. The nitty-gritty, the hard work, the self-control—all these will have to come from you. Don’t wait you’ve had a nasty wakeup call to start rehabilitating your finances. Start your financial makeover today.

If you’ve already had your wakeup call then don’t wait to sink deeper into debt. Starting from here might be more challenging but it can be done. Don’t dwell on the pain that the process will bring. Rather, look beyond it and see that when you have your financial house in order, only a bright future awaits.

Check out www.adamscapgroup.com for more Information on How to Manage Your Debt.

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Getting out of Denial

The major obstacle that people have when it comes to money issues is that they don’t believe that they have a problem. Denial is the most common reaction of many people when confronted with their relationship with money. It’s easy to say that you’re doing fine when in fact you’re already on the verge of a financial meltdown. Thus, you need to know if you’re in denial so you can snap out of it and tackle your problems head on. So, how can you tell if you’re in denial? Here are some signs:

You know you’re in denial if:

• You believe that you’re doing all right even if you know that your credit card debts are mounting and you have nothing saved up for yourself or for the kids.

• You can still pay the monthly minimums on your credit card debts but are racking up 20 percent or more in interest in the process.

• You find yourself applying for new lines of credit because you have maxed out the credit limit on your existing cards.

• You charge even your groceries to plastic because you have no cash left before payday comes.

• You have nothing in your savings account to cover for sudden expenses like the repair of a leaking roof or your broken car.

• You have no savings for living expenses in case you lose your main source of income or your combined income as a couple get drastically reduced.

• You have a hard time keeping up with your bills.

• You constantly fight with your spouse about money matters. Even initially innocent chats about the prices of goods and services turn into one big row about money.

• You are a regular payday loan customer.

• You constantly worry at your lack of financial stability.

If you are in this boat, now is the time to really take a long hard look at yourself in the mirror and ask: Do I really want to live like this? For sure, you don’t. No one does. If you love your family, if you love your kids, and if you love yourself, you want to stop being in denial and start straightening your relationship with money.

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Challenging yourself to do a Total Money Makeover

Your Finances: An Honest Look

If you find yourself constantly worried and stressed out about money, you’re not alone. The scenarios include living from paycheck-to-paycheck; having mounting credit card debt; and no savings for emergencies. Worries like how to pay the monthly bills; how to send the kids to college; and whether you can afford to even retire are ever-present whenever you make your monthly budget which is a seeming exercise in futility in itself.

Money issues are the top reasons why you and your spouse fight. And most of the time, you end blaming yourself or each other. It’s not a very empowering place to be in. It erodes your self-esteem and makes you question your capability of providing for your family. Most of the time, you will feel that you are not in control of your life.

The enjoyment you once derived from your work— assuming that you actually enjoy what you’re doing—is slowly eroding as you grapple with debt and the harsh reality of not having enough from your paycheck each month. It’s not a fun place to be in. You feel like you’re constantly walking on a tightrope. A major illness of any member of the family or getting that dreaded pink slip and you know there’s nowhere else to go but down.

Thankfully, you don’t have to live like this for the rest of your life. There is a way out. You can achieve financial freedom if you desire it. But you have to work hard at it. It is going to take sacrifice on your end. It will require a lot of belt-tightening and doing away with all the supposed “pleasures” that you enjoy today but pay dearly for in debt. You may even find yourself ridiculed by friends and family members who will question if you’ve already lost your sanity. The payoff, however, is certainly going to be worth it.

But first, you have to admit that you have a problem.

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Sticking to Some Basic Financial Rules

There are some basic financial rules that you should follow if you want to regain solid financial footing. At first, these may seem very difficult but once you are able to prioritize your expenses and your future goals, you will find the discipline to follow these rules to the letter.

First, see to it that your debt payments make no more than 20 percent of your take home pay. Debt here includes your credit card, car, and other personal loans. It does not cover mortgage or rent—they will be tackled later. Thus, if your monthly take home pay is $3000, you should be paying no more than $600 per month for all the types of debts mentioned.

Note, however, that calculating your debt on a monthly basis can hide a huge amount of debt because you can just pay the minimums and still your monthly payments can be way less than 20 percent. So to make sure that you get a good grasp of how bad in debt you really are, get the total unpaid balance of all your consumer debts. If this is more than 20 percent of your take home pay for one year, then you are drowning in debt. Let’s say your annual take home is $35,000 and you have a $15,000 credit card debt. Since 20 percent of $35,000 is only $7,000, you are in too deep with your financial obligations and you have to do something about it fast.

The second rule is to spend no more than 30 percent of your monthly take home pay for rent or monthly mortgage. We hear of too many Americans being “house poor”—that is, they get a house which is way too expensive for them. So if bring in $3000 a month after taxes, you should pay no more than $900 a month for your roof over your head.

Finally, make it a point to save at least 10 percent of your earnings every month. This is the absolute minimum that you should try to stash away for the rainy days. So that you don’t get tempted to spend this, automatically have this amount transferred to your savings account from your paycheck. Of course, the more you can save, the better it will be for you.

Ways to Track your Money

If you have been less than judicious with how you spent your money, you might have experienced wondering just where exactly your cash went. In worst case scenarios, shock probably overtook you when you realized that the money you had earmarked for the electric bill has already been partly spent or has gone completely “missing” from your wallet. The prospect of having your electricity cut off is scary and actually spending unwanted candlelit dinners is not at all fun or romantic.

Thankfully, it’s easier to keep track of where our money goes these days. Technology has certainly evolved to a point that it has made it more convenient for us to ensure that our dollar goes where we want it to go.

• Online Bill Pay

In this method, you simply add merchants that you want to pay to your bank account. This is usually available in most banks that give clients the ability to conduct online transactions. Write how much you have to pay to the merchant and the date when you want to pay them. You can choose to schedule the payments once a month or at recurring dates each month. If you choose the latter, do make sure that your account has money by that time. Your online statement will reflect the payment.

Online bill payments ensure that you don’t forget your monthly obligations since it is automatically deducted from your account as soon as you schedule it. This is especially important for ongoing monthly bills like your utilities and rent.

• Merchant Automatically Deducts

Instead of you having to put the merchants on your account and arranging for the deductions, you can instead have the merchant automatically deduct their charges direct from your account on a certain date each month. For example, you can arrange with your cellphone company to directly deduct your bill from your checking account each month and they will do that for you. Just make sure that you are dealing with a reputable merchant. You should also still do the necessary checks that the merchant has only deducted the exact amount from your account. Reports of some merchants directly levying additional charges have made a lot of individuals wary of this mode of payment.

• Trusted Envelope System

If you would rather pay for things in cash, then the time-trusted envelope system works best. Put all the expenses and amounts in appropriately-labeled envelopes. When the “dinners out” envelope starts getting low, you know it’s time to do more home-cooking.

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