How to Manage Your Personal Finances Properly? See a Few Guiding Tips for Proper Finance Management

Managing personal and family finances is an art actually. Most of you would fail to do so, if you lack the knowledge of finance management. However, if you are keen interested in the matter, you are all in all. It doesn’t matter how much you earn. But it matters how much you save at the end of each month. Make a budget in each month. Budgeting would help you keep track of the money you spend during a month. And a proper budgeting would definitely help you save money in every month. At the same time it also keeps you informed of the expenditure which was actually uncalled for.
The following are some tips which can be considered as a base for proper management:

When it comes to buy a house, you can’t make it without a mortgage. Mortgage assumption is a task left with you. If you are done with it correctly and affordably, you save most of your money. Paying off your dues before the term can save you from unnecessary stress. If you count, you’d find that you are saving a few dollars in interest which sometimes become nuisance for most of the people.
While using your credit card, make it a point to pay off your debt at the end of each month. The motto of credit companies is to make you fall in debt and thereby gaining huge interest from you. So, beat them and keep your pace ahead. You would always be gainful which most couldn’t make it.
Avoid taking a home equity loan at any cost. It doubles your debt with unbeatable interest on your loan. You have a danger of losing your home and job both. So, it’s better to keep restraint from such beneficiaries.
If you borrow to buy a car, try to pay it off as quickly as possible. If you have a 3 year loan term, pay it within 2 years. Your delay in payment would cost you heavily. Further you will certainly want to have your vehicle of a good mileage and everything concerned. So, first try to gather knowledge about the vehicle you want to buy and then arrive at your decision.
The same applies when you make purchases of furniture and appliances. Walk the market round to have the best one for you. You can talk to people to have a better and quick knowledge.
The bank lends you money easily on credit cards. The interest on loan they earn is from 18% to 29% on each month. So, it’s better to keep distant from such lending policies. Remember! nobody is a friend of you in a lending policy.
Finance management is not tricky nor does it involve any science. Mere knowledge on financial terms, payments, utility bills, insurance will just help your manage your finance efficiently which will actually work. The best part of finance management is just to save money as much as you can. It’s the base of personal finance. So, use your resources as effectively as possible.

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Personal Finance Management – Start Managing Your Finances From Now Onwards!

Personal finance management is not a thing which is taught in schools and colleges. It is something which depends upon your wisdom and financial goals. If you are focused in life and clear about everything, then managing personal finances is not a tough job to perform. There’s no hard and fast rule that you need to save heavily in order to acquire more funds in the bank account. Even small savings can fetch you decent amount. For stability in financial status, you need to do a little bit of homework and plan your financial expenses. Without restricting yourself for expenses and other things, your financial planning is worthless. Here, I have provided some of the useful tips required for personal finance management. Have a look.

Maintain a monthly budget
Try to maintain a record of your monthly expenses. This thing does not ask for restricting yourself for making expenses. It is just an attempt to get an idea regarding how much you spend in the duration of 30 days. Keep all your receipts alive and try to figure out what are your needs and how much you saved. This is an effective measure to keep an eye on expenses.

Maintain a record of expenses which are genuine
In the record of expenses, don’t mention the things on which you deliberately spend the money. If you have really wished for a thing, it’s actually not your major payroll. You can count it as an additional monthly expense and keep it aside. Make a record of expenses which are genuine and occur every month like rent, groceries, savings, household bills and much more.

Separate the actual budget and projected budget
Once you have jot down all your expenses, it’s time to distinguish the actual budget and projected budget. By doing this, you can acquire effective personal finance management. Projected budget is the budget which you have thought for the whole month. This budget should be same for all the months.

Actual budget is the budget which you acquire after spending the whole month. This can be fluctuating and therefore, you’ll not find actual budget same for the progressive months. In this way, you can make out where to spend and where to get restricted while making expenses.

Be honest while maintaining the budget
While preparing the budget, your honesty counts a lot. If you are not true to yourself, how can you project for stable finances? An honest record of expenses will aid you to manage everything in detail.

Personal finance management is your initiative and you are the volunteer. No financial advisor can make you understand the things you can do to minimize your expenses. You are the only one who can manage your savings and expenses by keeping all the aspects in mind. For effective results, you need to follow the above tips. There’s no rocket science involved in personal finance management. Simple and basic strategies are required to maintain your own financial records.

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Importance of Personal Finance Management

In today’s world, money is an essential part of our life. In a way, we can say that money is the life blood that lets us live a comfortable life. True, money can’t buy us happiness, but it certainly gives us the assurance of a secured future and freedom to purchase things which make us and our loved ones happy.

But despite all this, most people are either too careless about managing their personal finances or just don’t know how to do it efficiently. As a result, most people start caring about their money only when they have left with very less of it. In the 21st century world, it has almost become a norm.

The so-called double income families love to a life of every luxury possible in the world and they don’t even think twice before digging into their savings or taking loans to get it. As a result, 8 out of 10 people have at least some loans on their head.

Until two years ago, the effects of bad personal finance management was only seen on a small level. But the current recession has turned the demon of badly managed personal finance into a national calamity.

The failing banks, closing businesses and cost cuttings left a large number of people without a job.

But the unemployment was just a push to create a whole domino effect on the economy. Devoid of any personal savings and buried under loans, people started losing their homes, cars and even health insurance. So many people defaulted on their insurance payment that many insurance companies declared bankruptcy and many others were on the brink of going out of business.

We can blame so many factors for this – the government, the corporates and most of all the banks who gave easy loans to people who could never afford them. But the truth is that it’s the job of banks to encourage us to take loans. That’s how their business. It’s only up to us to make complete sense of the situation.

Your banker would love to get you the huge loan for your second luxury car or a holiday home because he will benefit from it. He will even convince you that you are making the wisest decision by making a bigger purchase than you could ever afford to.

But you must understand that managing personal finances is extremely important. Make sure that you don’t make any purchase that’s out of your reach. We are not suggesting that you don’t take loan, but take it only when and only as much as essential. Try to create a savings account and keep an equivalent of three months of expenses in it, at all times.

In the end, I would say that bad times come in everybody’s life. We all have to go through our shares of difficulties whether its unemployment, sickness, or injury. All we can do is to make sure that we are prepared for it (at least financially).

Author is an expert in matters related to finance, financial software and online marketing. He has years of experience in writing articles on such subjects.

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Corporate Investment and Role of Finance Manager

The job of finance manager is to lead his corporate company into profits. Investment strategy is drawn basing on available opportunities. To take a decision on buying an asset, it shall be valued properly. A corporate finance manager shall analyze its worth and return in the future. He can take the help of expert person in the specific field to analyze all this issues. His basic motto shall be bringing profit to his company and distribute it to the share holders. If there is a possibility he shall avoid taking risks to make profits. Investors love to get better money with lesser risk. He shall evaluate the present and future value of the asset before taking a decision on buying it. Once if he is able to conclude that the asset value in the future is more than the present value, he can convince the management about it.

The return is measured as the ratio of profit made when compared with the investment made. If the company make better profits,the stake holders will be more comfortable and happy. In big corporate companies there is a separation between ownership and management. In the interest of ownership and share holders,managers can take a decision and there is no ego issues present here.

A company may wish to invest money in cash and reduce the dividends distributed to the stake holders. In many cases this is not a happy decision for them and they want profits. The job of the finance manager is to find the balance between profits and investments. He need to give back dividends to the investor and also take company into a better position.

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