Cash Allowance
For those who travel for work, a cash allowance is a welcome benefit to cover travel expenses. This way, you will not have to pay all your hotel and meal expenses upfront, and then wait for who knows how long to be reimbursed.
Cash allowances are handled in different ways depending on how much you travel and on your particular company's policies. If you are a bigwig in international sales, for example, you might be on the road just about every day. The company could then just give you a lump sum per year in addition to your salary, and then you would deduct all your expenses on your tax return.
Other companies use a "per diem" federal rate (meaning per day), so if the company sets the per day allowance at or below the federal rate and the employee completes his or her expense report, it will not be considered part of the employee's wages.
The term "cash allowance" is also used by auto dealerships as an incentive for customers to buy a car now. The allowance is subtracted from the retail price and is usually good for only one or two months. However, a good negotiator can usually get a better deal than just a cash allowance.
All of this is very different from a "cache allowance," which has to do with the DRAM on your computer. (Four nerds are laughing at this joke. Some things, you just do for a small audience of your own.)
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Finance: What is a Credit Limit?39 Views
Finance, a la shmoop. What is a credit limit? Alright people well simply put the
maximum amount you get to charge or use on a loan or credit account, that's a [Credit limit definition written on a 100 dollar bill]
credit limit. So yeah it's that thing that keeps toddler Joey from ordering
two hundred thousand dollars worth of Snickers bars. [Toddler looking at the snickers bar]
If you accidentally you know leave out your Amex. (Illustrative example time) If you have a ten thousand
dollar line of credit or credit card you can't spend $20,000 on a trip to Vegas,
sorry. You might be able to go on a smaller trip to Atlantic City but once [Picture of Atlantic City]
you hit that 10 grand well the party's over until you pay some of that money [$10,000 flashing in red]
back, and by the way taking that smaller trip and then putting everything on red [Chips landing on a roulette table]
22 in hopes of funding your next trip to Vegas? Probably not the soundest
financial planning... sorry, let's keep it real. [Guy putting on a serious face]
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