Friday, 16 January 2015

How to supervise your personal finance efficiently?

The term finance plays a significant role in the effective management and successive growth of a business. Similarly Personal Finance also plays a significant role in effectively managing the budget of a family or an individual. Obviously, it is very essential to understand the importance of money and its effective usage in order to enhance your own living standard. The overall budget of a family or an individual involves monetary resources, expenditures, investments and savings. This is an essential part of every living being to live a successful and tension free life. It is not a subject that is taught in schools and colleges, rather it is a kind of skill and planning that keeps on improving with continuous experience. 

Steps to manage personal finance effectively

In order to supervise and administer your personal finance in the most effective and efficient way, it is very essential to follow certain simple steps in normal day to day life. These steps involve:

1. Creating Budget:

The first and the foremost step to plan your personal finance effectively involve the creation of monthly Personal Budget. It involves the income, expenses, savings as well as debts of a family or an individual. The further major steps involved in creating an effective budget of the family are:

  • Maintain a complete record of all your monthly expenses in a notebook which will help you in understanding how much you require to fulfil your basic needs and requirements. 

  • Thereafter, create a record of what have you spent in the month. 

  • Create your budget with honesty by comparing your estimated monthly expenses and your actual monthly expenses. 

  • They should be categorised under the separate columns of projected budget for estimated expenses and actual budget for actual expenses. 

  • You will be able to have a clear picture of your budget after that. 

  • Keep the budget of every month in your track record to observe the ups and downs in your budget. 

2. Spending money intelligently:

Another crucial step of effective management of personal finance involves the effective and smart usage of money. It is very important to avoid unnecessary expenses of the family in order to ensure proper finance management. You must keep the following things in mind while spending your money in an effective way:

  • Spend money on such articles only which you cannot borrow or take on rent. 

  • When there is an open option of borrowing available for you, you must not waste money in purchasing it. 

  • In case of any down payment, always try to pay the maximum amount you can pay in order to reduce the amount of interest levied on it. 

  • Always use your credit card effectively without crossing its limit which will help you in increasing your savings. 

  • Always try to spend according to your capacity, not according to your choice and preference. 

3. Making profitable investments:

Apart from spending your money on your necessary expenses, it is also important to invest some amount of your income in order to ensure profitable savings. Investments should be done wisely and with proper understanding. Until and unless you are completely aware about the investment plan, you must not go for it. In order to act wisely in choosing smart and profitable investment plan, it is essential to keep the following things in your mind:

  • Make yourself familiar with different kinds of investment options. 

  • Always prefer to take maximum benefits from any kind of retirement plans which your employer provides. 

  • Try to avoid doing gambling in the stock market. Investing in stock market is not really a wise decision.

  • Opt for a better insurance coverage of all your family members in order to ensure their medical safety and security. 

4. Create more Savings:

Savings play a significant role in helping you at the time of emergency. Thus it is always recommended to emphasise more on the savings. In fact, if you start savings from an earlier time, you will be able to save ample amount of money till your retirement. There are several options available for the people to ensure maximum savings.

Wednesday, 14 January 2015

How To Keep Your Financial Situation During 30s and 40s

People want to start earning money as early as possible. The only reason behind this attitude of people is nothing but to become independent within next few years, so that they can spend the rest of their lives without any hassle. If you have just finished your studies and entered in the professional world, then you are already on the right track. Here are a few points, which you can keep in mind from the day one, to make your coming years as beautiful as they can be-

Invest, Save, Spend:

At least 98% youngsters across the world earn money to spend. If, by chance, they forget to buy something, then they save money to spend in the future, but hardly any of them tend towards investing it. That's the main reason; the world has seen only one Warren Buffet. You can hardly find any youngster, who is in his 20s, and interested in making long term investments. Don't you see it as an opportunity? Well, if you want to make sure that you spend a hassle-free and luxurious life during your 30s and 40s, then start making investments from day one of your job. One of the richest men alive on earth once said, out of the total amount that you are able to earn monthly, make sure you make investments at first. Once you are done with investments, then turn towards saving some money for emergency usage. If you are left with anything after that, then try to spend it. It's easier said than done, but so as the result you will see after 10-15 years.

Track Your Finances:

The best way, to control your expenditure, is to start tracking them on daily, weekly and monthly basis. At the end of every month, track down your expenses and check if you can cut down them. It will help you in a long run. Not only will you be able to analyze your spending habits by this way, but also be able to make favorable shifts in your expenditures.

Plan everything:

Those who think that this world doesn't require any planning, are completely wrong. The only way, to live an organized and comfortable living, is nothing but to plan out everything. You can start with planning your financial position after one year, five years and ten years. Write down, where you want to see yourself after the above-mentioned time duration. Analyze the changes that you have to make in your current lifestyle to reach the desired financial positions that you have decided for yourself. When you start to plan, you get a clear picture of everything, and you realize if you can do whatever you want to do in the available time or not.  
Along with planning about financial position, give some attention to insurance planning and overall financial planning. Take the help of any well-known and skilled financial planner and get your financial plan ready to know how much investment you should make today, in order to live a life of your dreams in the future.

Make a note of one important fact. Suppose if you are 21 today and have just started earning money. Within next 10-15 years, you would have a family, dependent completely upon you. While planning your financial position, give a stiff attention to their future as well. It's good if you are with them to take care, but what if you are not. Don't you want their lives to be secured, even if you are not with them. Buy financial products, or insurance policies of that nature, which can help your family, even in your absence. 

Plan For Best, Be Ready For the Worst:

It's an old saying that whenever you plan, think about the best, but make sure you are ready for the worst. You can keep in mind things like your health, inflation rate, your job, working wife, no injury, no health problems etc. at the time of planning for future, but be ready if things don't go your way. If y

Tuesday, 13 January 2015

Money Management Basics Explained for Aspiring Entrepreneurs

If you are running your own business and unsteady cash flow is one of the many problems that you face as an entrepreneur, you should know the basics of money management. Money management, for a matter of fact, is not just about taking wise investment decisions and working diligently for keeping costs low. Running a small business requires a lot many things, among which money management is the most important. If you want to build a strong business model and lead it to the right direction, you must know how to manage your finances and how to make the optimal use of your financial resources. Here below are a few tips that might work for you.

Work within your budget

Always fix a budget and stick to it. Once you know your budgetary constraints, you can easily make successful business dealings. Without a budget, spending money is almost like going on a long drive without having a route map. The idea of embarking on a road journey without having a map may seem quite appealing to a few people, but it’s not intelligible to navigate through business dealings without having a proper budget. The successful entrepreneurs have always watched their money while taking important business decisions. This way, you can save yourself and your organization from foreseeable financial predicaments.

What’s your relationship with your money?

How do you usually handle money? What do you do with your money? When it comes to money management, what are your key strengths and shortcomings? Do you think in short term or you have long-term plans? If you can answer these questions, you already know whether you are spending your money in the right way or wasting your money quite unwisely. Now you need to enhance your strengths and eliminate your weaknesses gradually. This way, you can set realistic financial goals.

What’s your spouse’s relationship with money?

You should also take in consideration your spouse’s relationship with the money. Though it is a very sensitive thing to handle it publicly, you need to take into account your spouse’s relationship with your money. Keep in mind that your relationship with your spouse largely determines how you will spend your money. If your personal finance overlaps with your business finance, you may soon end up going broke. In other words, your personal credit score and your business credit score should be different and you should not mix these two. Keep in mind that money is big cause of conflict in conjugal relationships and you should scope your spouse’s relationship with money before things get out of control.

What percentage of your profit is your savings?

Finance gurus always suggest business owners to pay themselves first so you know you are actually earning a sizeable amount every month, keeping aside the profit and the running that you accumulate from the market. Count your earnings in percentage and set aside some amount of so that you do not end up in big financial trouble eventually. This requires self-discipline, perseverance, patience and some amount of practice.

Are you an impulsive buyer?

Are you planning to buy that new piece of furniture just because you like it? Have you taken in consideration the available space in your office or shop? Make sure that you don’t buy anything on impulse as this may lead to much bigger financial trouble than you may imagine. Purchase only what you need and not what you have yearned for years. It happens with many new entrepreneurs that they end up spending money from their profit share on things that they don’t actually need. Impulsive expenditure is a strict no-no in the world of business.
Updating your credit report and from time to time and building good rapport with your financers is just another good way to manage your money while running a business. You may also adopt lean manufacturing process if that suits your business. For keeping costs low, you may use recyclable materials and put emphasis on automation. However, one precondition for effective money management is to watch your personal spending. If you are a self-disciplined person and you want to expand your business, you may put these money management basics into practice to run your business in a sustainable manner.

Monday, 12 January 2015

What Are The Misguided Vital Ideas Related To Money And Finance That You May Hear

What Are The Misguided Vital Ideas Related To Money And Finance That You May Hear

Lately there has been a tonne of misconceptions about the bonds, social security as well as mortgage payment schedules; which you may also have heard of. However, there is more to it that you think is the right practice and yet they are actually misguiding you to injure your financial well-being to a large extent.

There are plethoras of misconceptions and here are some of them that need to be clarified to you, before you keep continuing to be an intelligent fool.

1. Claiming social security at a later age of 62: Majority of people and may be you also believe that it is good to claim social security after you have turned 60 plus years old. The reason behind that belief is that you will get large sum each month as a benefit, while a much bigger amount waits for your spouse; if something is to happen to you. However, there are two sides to it; the first is where you will pull out money early to invest in other financial tools that can happens when you are still earning or the second; when you outlive your savings. The first option can work out really well even if you happen to lose some money in the financial tools such as stock or bonds, but if you outlive your savings then that will certainly be a problem that will rupture your old age happiness. Hence, it will be wise to do the first and take risk, while you can as well as also invest big in your social security.

2. Individual bonds compared to bond funds: There is an argument that many investors in bonds put in favour of individual bonds and they don’t want to invest in bond funds. They say that if the interest rates will go up, the bond-funds will lose money, but individual bonds can be held up till maturity to get compounded money back. However, that is a complete myth that has been created by misguidance. Technically, bond funds are portfolios of individual bonds marked across the market; every day. In that situation when the interest rates will rocket up, the individual bonds will fall in rates; which will happen to bond funds as well that own those peculiar individual bonds. The best method here would be to hold on to the individual bonds till the rates go as high as expected and then bail out to make profit. Alternatively, on maturity the individual bonds will get the principal back and profit will not be as much as expected; but there will be no loss.

3. Mortgage should never be paid ahead of its tenure: Many believe that paying off the mortgage before its tenure of repayment, will deprive them of the tax deduction that happens on the mortgage-interest. Hence, they never tend to make any sort of extra-principal payment, which will have them pay off their mortgage early because they want to enjoy tax deductions on interest paid. Now here comes the reality, which is the fact that mortgage interest is pretty costly in comparison to the partly sum that is saved via tax break. That will not be a good thing for you at all. In such a situation it will be good, if you happen to clear off your mortgage debt and look for some other tax break options, where you don’t have to pay off to someone for something; but save tax by investing somewhere that will come back to you. There are many such schemes that can be found.

Technically, the three mentioned above are the most common ideas that you will hear or you may even be practicing right now. There are more ideas like this that doesn’t go very well when it comes to personal financial planning and doesn’t get you any benefits that you could have otherwise garnered; through tax-break. The only way to keep you aware about everything related to personal finances is to consult a good financial adviser for being updated with current finance trends. That will certainly aid you in making the right kind of decisions that you didn’t make before and lost good money to your wrong choices.

Here knowledge is power and financial knowledge is the key to become wealthy.

Saturday, 10 January 2015

How To Strengthen Personal Finance Matters

How To Strengthen Personal Finance Matters

Personal finance matters refer to those which are related to any individual or family. People, often take corporate financial issues quite seriously, but they ignore the matters that are most important to them. Pay attention to the following points, if you want to know more about personal finance and how to strengthen your financial position-

Financial Planning: 

Whenever you talk about personal finance, it's important to understand the concept of financial planning. Two words financial and planning give a hint that it's about planning your financial matters, which is correct. FP means calculating your true life value on the basis of current income and liabilities. If a person is earning one lakh rupees at present and he has a family to take care of, then he should plan his investments in such a way that even if something happens to him in future, then his family can get enough amount on monthly basis to live a normal living. It is called financial planning. Some of the things that are considered very important in financial planning are-

• Current earnings

• Future value of the current earnings

• Expenses

• Inflation

• Bank interest rate

• Return on investment

All the above-mentioned points play a significant role when a person decides to do his financial planning. There are a lot of professional financial planners in the market, who charge for their services, but can offer you top notched financial planning service.

Insurance Planning: 

One doesn't feel the need of insurance, until s/he faces a situation that is unavoidable. Don't fall in such trap. Make sure you have proper insurance policy, which can cover all the risks that you are exposed to. Insurance is nothing but a contract between an insurance company and any person. As per the terms and conditions of the contract, one party agrees to cover the risks of others in return of a pre-specified amount called the premium. 

Insurance is mainly of two types: Life insurance and General insurance. Life insurance is the one that cover a person's life. All other types of insurances fall in the other category. If you are earning and have a family to fed up, then make sure you cover yourself with the help of a suitable insurance policy. Suppose if there is a person named X, who earns 50 K monthly. If he has taken a life insurance policy worth 500 K, then if something happens to him before the maturity of the policy then the sum assured will be given to his nominee. Loss of a person cannot be eliminated easily, but at the same time if one uses his mind and take insurance policy, then his family doesn't have to suffer in his absence. You can also do the same. You can consult with a good personal financial planner or insurance service provider and take his inputs in regard with a good insurance policy that can help your family in case of any unfortunate event. 

The best part of insurance policies these days is that if you take insurance of 'x' sum assured for 'N' number of years, and if nothing happens to you during that period, then you get the sum assured, which is nothing less than a proper investment. Doesn't it sound good to you? You can cover your risks through this way and gain a good return as well. 

Wealth Management: 

It's another part of personal financial management. Those people who have large business houses and significant monthly incomes, they don't need financial planning service. The main reason behind it is because financial planning is done to help people get a comfortable financial situation. Those who already have large businesses running and a lot of money flowing in their bank accounts on a monthly basis, they need advanced level of services. They need someone to manage their wealth and help them accumulate it. It is always recommended to take services of professionals in this regard. 

If you understand the above-mentioned points completely and take the services of professional service providers or individuals, then you can easily strengthen your personal financial matters.

Thursday, 8 January 2015

Guide to Managing Finances and Saving Money

There are a number of things in life that are certain to happen. Of course, many of these things are anything, but fun. The truth of the matter is that you’re going to need to remember that life is always going to throw in a curve ball from time to time. When it comes down to it, you’re going to need to pay bills each and every month. On the other hand, you’re going to be given a paycheck every week or every two weeks, if you hold a job. Therefore, you’re facing a dilemma, since you need to make sure that you always have enough money to pay your bills. When all is said and done, you will want to make sure that you budget your money to help ensure that you have plenty of money left at the end of the money. This is exactly what you’ll be able to do when you visit River Stock Images. Of course, this guide will be able to provide you with helpful tips and strategies for budgeting your money in a successful manner.

The Basics

When it comes down to it, you need to gather some basic information, which will allow you to successfully budget your money. Therefore, you will need to calculate the amount of money that you and your family bring in every month. After this, you will need to look at the amount that you spend each month. In order to do this, you will need to make sure that you budget everything. For starters, you will need to look at your rent and utilities. On the other hand, you will need to make sure that you also think about the money that you spend on other necessities, such as groceries and work supplies. This will make it possible to figure out how much you bring in and how much goes out every month.

Cutting Unnecessary Items

When all is said and done, a lot of people feel like they need specific services, which aren’t necessarily requirements. The truth of the matter is that many people feel they cannot make it without television, telephones and the Internet. On the other hand, many people are becoming addicted to their cellphones, which can become expensive very quickly. While it is important to remember to maintain a little security, with a cell phone, you should remember that you could always cut these services off, if you’re in need of saving money. Therefore, you should consider speaking with your family members, after looking at your budget, and figuring out, whether or not there is something that needs to be nixed.

Try Negotiating

Are you sick and tired of paying expensive fees for your services? The truth of the matter is that each utility company will pay you much more than you really should be paying. Therefore, there is always the option of attempting to negotiate with the business, in hopes of getting a discount. When it comes down to it, you might want to try and make contact with these individuals. Simply let them know that you’ve been a loyal customer for a long period of time and have recently hit a rocky spot. If the company is good, they might offer you a discount on your service. If the company doesn’t, you should consider cutting it off and finding a new company, which will be more loyal to you. 

Shopping Around

At the end of the day, there are many different things that you can do to save money. For starters, you will want to make sure that you shop around as much as possible. The truth of the matter is that your currently utility company much more be the best deal available. Therefore, you will want to begin shopping around and looking for cheaper prices. When it comes down to it, you will want to make sure that you use the Internet to help guide your search. You might be able to find a massive discount, by doing this.


At the end of the day, there are many ways to help you save money and manage your finances. Be sure to formulate a budget and stick to it. This will help you make sure that you do not miss your payments.

Wednesday, 7 January 2015

Guide To Investing Your Money Safely And Wisely

If you have some extra cash on hand, you may want to invest it. There are many ways to invest your money so that you can make more money. Most people will put their money in a bank and not touch it in order to have it for a rainy day. While this might work for some it definitely does not work for everyone. Invest your money and make a large profit, but do it carefully with lots of research.


It is always important to save money just in case you are faced with a financial crisis that will require spending a large amount of money to get out of it. Putting your money in a savings account at a local back will earn you a pretty good amount of profit. The banks will pay your a percentage just for allowing them to use your money for loans. This is a nice profit, but will not provide you with a large profit. 

High Interest Debts

If you owe a low of bills, you should consider paying them off. Start by paying the ones that have a high interest rate because you will save more money, when you pay these off versus a low interest rate loan. Credit cards normally have the highest interest rates and these bills are the ones that you should focus on. Be careful when you are paying these off because they can hurt your credit rating if you try to pay them off and not use them any more. Do some research on these topics or speak to your financial institution before you go this route.

Retirement Nest Egg

If you want to live a very comfortable lifestyle, when you retire, you will need to build a retirement next egg. This way you will never have to worry about running out of money, when you are not bringing home a weekly or bi-weekly income. Be sure that you try and pay off as many bills as possible before you retire because you do not want any large payments hanging on your head especially if you are going to be living on a limited income.

Penny Stocks

Many people will invest in penny stocks in hopes of earning some large profits, but if you have no experience in penny stocks, you may want to hire a financial advisor to help you out. There are many ways to invest your money in stock and bonds, but it only works if you know what you are doing. Educate yourself on this, before you go out there and invest in stock. 

Don't Get Spooked

When the stock market appears to be taking a plunge do not get spooked and try to sell your stock. If you question your knowledge in the stock market, you will need to find someone to help you out. It is important that you keep your head on straight so that you will make a profit at the stock market. River Stock Images is a wealth of information about how to invest in the stock market.

Buying and Fixing Properties

If you have a good amount of money, and currently are looking to invest it, then you should consider buying a piece of foreclosed property, and fixing it up for resale. This is a great way to make some extra cash, but you have to have some money in order to be able to do this. You can make money like this because you will be buying a home for cheap, and even if you have to pay someone to come in and fix it up, when you go to resale it, you are going to make a lot of money in return. Of course, you will be able to make a lot more money if you can do the fixing up yourself. However, you will have to put a lot of time into this, but it will be worth it once you are done.

Gold and Silver Jewelry

Just about every person out there in the world likes to wear some kind of jewelry. It is flashy and looks good on people. If you are looking to invest some money, and make a great return one way to do that is buy buying used gold and silver, and reselling. Of course, you are going to want to hold on to it until the price goes up.