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.

How to Approach Personal Finance Management

Finance management is one of the most horrifying terms in the world when it comes to many people who are trying to get themselves out of their debt or make some savings out of their income. The concept of personal finance and management seems to override them with confusion.

All this confusion leads them to the conclusion that finance management is almost impossible. This is not right. It is definitely true that the concept of personal finance management and personal budgets is completely confusing, but they are not impossible for sure. It is difficult, but this is the price you have got to pay to make yourself a very stable financial future in which you are not bankrupt and is enjoying your peaceful life.

The first thing is that you have to change your attitude towards personal finance management. If you can make a positive attitude towards it, you have come a long way in it. Once you have this positive attitude, you will have the interest to work out hard on your finance plans. This will also make you determined to follow the budget that you have made for yourself.

In short, the attitude is all that matters in managing your finance. If you have the right attitude, you will find it interesting. Otherwise you will make a mess out of your financial planning. So, learn to make a positive approach to your finance management. You will surely be able to achieve it even though is a bit difficult.

Top Qualities Of A Business Finance Manager

There is no business that does not want to make a lot of money, in as little time as possible, and still have a little left over after all expenses have been paid. It is the work the finance manager in any company to put in place strategies that will ensure the business does well financially.

The term finance manager is usually a general term for all the other individuals who deal in different financial matters. There are financial controllers, treasure, credit managers and also risk insurance managers. All these deal with matters that are still financial but different in more than one certain ways. However, the qualities to look out for are still the same. To have a good financial manager he/she has to be a people person. Since most of the time these individuals work with a team he/she will have to have good communication skills. This will help them interact well with the other managers. Furthermore, their managerial role means that they are supervisors; therefore, with good interpersonal skills they can be able to lead others.

Financial managers do also require some marketing skills. This will best tell you whether the candidate you have has some inclinations to money earning activities. He/she may not have the required education, but you could have them try to sell you a product so that you can see whether they have a money making sense or not.

With the increase in financial technical computer based instruments a financial manager must have know-how on computers. Moreover, if he/she is adaptable to changes it would be easy for them to change as technology also changes. As the world evolves, new trends come and go and this means that the person you hire to take care of your financial work should also be on the look-out for new trends so that he/she can direct the company to a more profitable position. In addition they should have knowledge of the tax laws that govern your companies industry so that they can incorporated these laws in every aspect that they undertake.

Education and experience are also key factors to look into as you go about hiring a financial manger. Good financial manager are those with enough job experience. As for education, go for those with advanced degrees in finance, economics, business administration and even risk management. Although experience and skills are paramount, it is good to choose a candidate who shows a willingness to learn. This is because such candidates are more likely to be good managers than those showing no willingness at all to learn from others.

Every business owner wants to make money, pay his/her expenses and still have some of it left over. The best way that they can ensure they are making profits is by hiring a finance manager. However, not just any individual can handle company’s financial matters. Even though there is more than one different financial manager titles the qualities to look out for are the same. The individual you choose has to have the right education, experience, and the ability to work as a team.

Corporate Finance Management

Corporate finance management is a branch of finance that refers to the management of financial resources of a company. The main objective of corporate financing is to maximize the company value by making proper allocation of financial resources, along with taking care of the financial risks. Finance management focuses on analyzing the financial problems and devising the universal solutions, which are applicable to all kind of companies.

There are various topics, which are covered under the study of corporate finance such as working capital management, inventory management, debtor’s management, dividend policy, short term and long term financing and financial risk management. Each of the above mentioned subjects make use of different financial tools in deciding the allocation and management of resources among most competing opportunities. It is one of the highly discussed topics due to its own importance in growing economy of any country.

Finance management is an absolute necessity for all types of business organizations. Earlier it used to be the part of overall finance management of a firm. But, over the last one decade, it has emerges as a separate discipline altogether. Today, in both large and medium sizes corporations, there is a dedicated department involved in taking care of the corporate finance management of the company.

Why Is Public Finance Management So Important To Development?

In response to the Paris Declaration (2005) and the Accra Agenda (2008) leading to commitments for donors to channel more of their aid to developing countries through country systems, there has been a growing shift away from program and project aid – typically managed or overseen directly by the contributing development partner – to budget support where aid is channeled directly through the developing country treasury’s consolidated revenue fund account. As one might expect, as a consequence of this growing shift to budget support there has been a corresponding increase in donor focus on the performance of Public Finance Management in the countries that receive budget support. This is as should be, given the increased real or perceived fiduciary risks associated with the use of country systems to manage the hard earned taxes of the citizens of development partner countries.

But this is only one side of the story. Unfortunately there is not yet that much interest or appreciation in the other side of the story. On the other side of the story are the citizens of the developing countries who may suffer as a consequence of tinkering with Public Finance Management systems in the name of reform, which may only serve to undermine current weak systems and set them back even further. Public Finance Management seems inaccessible to most of us. Even where it is accessible to us we deem it to be boring, inconsequential and something only dreary accountants and auditors need bother about. But think, Public Finance Management is about our money, it is about our children’s future, it is about our development.
The importance of Public Finance Management and its reform derives as a consequence of its direct role in implementing policy – be it about improving education, achieving better health care, promoting tourism, or increasing agricultural yields. With weak Public Finance Management systems, even where policy makers come up with sound policy, it may not be possible to implement such policy effectively. Further, quite uniquely Public Finance Management performance affects the performance of all other sectors – yes the macroeconomic environment and so private sector opportunity and the service delivery in agriculture, health, education, transport, energy, public safety and the list goes on. When it works, all other sectors have a chance of succeeding; but when Public Finance Management fails all other sectors fail.

We as citizens of developing countries ought to be more concerned about who drives the agenda for Public Finance Management reform. Is it the IMF, as it imposes Public Finance Management Reform conditionalities that are not just tied to strengthening or improving budgetary systems, but are tied specifically to the adoption of particular reform approaches – despite such approaches having in some instances failed in more than one country. Is it the World Bank as it makes the adoption of integrated financial management information systems (IFMIS) the basis for support in reforming the Public Finance Management systems? Or is it the result of wide internal debate and consideration by the country citizenry influencing their elected leaders to address the basic things that they know do not work using approaches that are within the reach of our capacity rather than adopt reform methods that may not yet be appropriate to our circumstances?

This donor interest in improving Public Finance Management performance has led to immense pressure on countries to adopt new public management approaches. These have included (1) medium term expenditure frameworks (MTEF) often pushed to be implemented long before a country may have developed the capacity to make credible their annual budgets and even as developing partners themselves continue to struggle with their capability to disburse funds predictably in-year, more so as measured in a medium term perspective; or (2) the use of policy based budgeting such as program and activity based budgeting long before they have the institutional capacity to effectively coordinate programs, develop the fiscal space for meaningful policy consideration, or access the monitoring data to properly evaluate policy outcomes; or (3) the adoption of integrated financial management information systems (IFMIS) to manage expenditure which occurs across as many as thousands of spending units many of which still struggle with issues of staff retention, electricity supply or integration into a national financial administrative network. The challenges of managing at the level of spending units under an IFMIS implementation has led to a roll out strategy limited to treasuries (payment centres). Control over payments is often too late to impact on the accrual of expenditure arrears which can have important detrimental macroeconomic stability impacts; or (4) full accrual accounting even as financial reports based upon a cash accounting standard are not comprehensive, show signs of low data integrity and are issued late. A review of country experience across many developing countries who have adopted the new program management approaches in their Public Finance management reforms shows that these efforts have often not been successful by any reasonable measure.

The primary reason for this widespread Public Finance Management reform failure is often attributed to political economy considerations by developing partners – poor governance, high levels of corruption and the like. Of course that is part of the equation, but in contrast it is striking that there are cases of dramatic success of particular elements of Public Finance Management reform in such areas as debt management, certain aspects of revenue administration and public procurement in even what are considered the most corrupt developing countries. Is the political economy focus just another way of suggesting that the poor success record of many of these new public management approaches is solely the responsibility of the developing countries and has little to do with the immense influence that the donor community has had over in setting the Public Finance Management reform agenda?

Clearly, it is time to recognise that considerations of the different sides of the question as to what reform methods to adopt or whether Public Finance Management is, or should be, driven principally by the disbursement conditionalities set by donors; or arrived at through much wider debate and careful consideration by the citizenry and leadership of developing countries might lead to quite different conclusions. The consequence of wider discussion between developing country actors could lead to a more balanced, realistic, relevant and ultimately effective approach to Public Finance Management reform in developing countries.

Finance Ministry speaks against offshore ban

The Latvian parliament on February 1 passed in the final reading the legislative amendments banning companies that are registered in low-tax countries, or the so-called offshore countries, from taking part in public tenders in Latvia.

The Finance Ministry, the Procurement Monitoring Bureau and legal experts reviewed the parliament’s decision and concluded that it was inconsistent with the international law.

“One cannot impose restrictions on business activities of a company based solely on its domicile,” Reizniece-Ozola said, adding that it would be different in case of tax evasion or money laundering but the country of incorporation alone cannot be the reason for declaring a company ineligible in public tenders.

The Finance Ministry is working on a report explaining its argumentation that it will ask Latvian President Raimonds Vejonis to consider before promulgating the bill.

“If the President promulgated the law, there will be litigations because those legislative amendments amount to discriminatory treatment of companies,” the finance minister said.

Unity and the Union of Greens and Farmers support the proposal by their partner in the ruling coalition, the National Alliance, to ban offshore companies from participation in public tenders in Latvia but are concerned about the proposal’s compliance with the EU directive.

The Latvian Chamber of Industry and Commerce supports the proposal to ban offshore companies and Latvian companies controlled by offshore companies from participation in public tenders.

Finance Ministry raises economic growth forecast for 2018 to 4%

Compared to the previous forecasts on which the 2018 budget was based, GDP growth forecast for 2018 has been raised by 0.6% points, and the forecast for 2019 by 0.2% points.

The economic growth is expected to accelerate because of the favorable situation in external markets and increased investment activity in Latvia as the flow of the EU funds grows, the ministry said. In 2017 Latvia’s GDP rose 4.5%, according to preliminary results, and it was the steepest rise since 2011.

The Finance Ministry expects that in 2018 and in a medium term there will be strong export growth, while investments are expected to rise 10 percent. Private consumption will also be a strong drive, promoted by a strong wage growth and further reduction of unemployment level. The gross monthly average wage in 2017 increased by 7.5%, and might grow 8% in 2018, reaching €997 a month, according to the ministry. The steep wage growth this year will be determined by the growing demand for employees, and significant increase of the minimum wage as of January 1, 2018. In 2019 the average wage is expected to grow slower – by 6%.

Consumer price level in Latvia in 2018 will remain at the previous level at 2.8%. The comparatively high inflation level in 2018 will be determined by the strong economic growth, increase of wages, and excise tax hike on oil products, tobacco products and alcoholic beverages, while in 2019 inflation is expected to drop to 2.4%.

The Finance Ministry’s macroeconomic forecasts have been developed based on a conservative scenario, assessing risks of internal and external environments. The forecast risks are upward and may ensure a steeper GDP growth than projected in the base forecast. On the other hand, there are a number of serious negative risks, including the low investment level in national economy. Reduction of the number of working age employees creates a pressure in the job market and stimulates further increase of wages that may influence Latvia’s international competitiveness. Among external negative risks, there are also geopolitical instability, political uncertainty and the high fluctuation level in the world’s financial markets.

Be Wiser signs new long-term premium finance deal

The new deal with Close Brothers will see the partnership extended into the 2020s

Close Brothers Premium Finance (CBPF) and Be Wiser have announced the signing of a new long-term deal.

CBPF has been the exclusive provider of insurance premium finance for the customers of Be Wiser for the past 10 years.

But now, with the signing of this new deal, CBPF will provide finance well into the 2020s.

Be Wiser chairman Mark Bower-Dyke said: “In this world of Brexit, new regulation and market instability it is reassuring to know we are partnered by, in our view, the largest and best finance provider.

“Close Brothers Premium Finance are always ahead of the curve with their ongoing innovations, their ability to see the bigger picture and the way they keep our customers’ wellbeing at the centre of their processes. We look forward to working with them over the coming years.”

Sharon Bishop, chief executive of CBPF said: “Be Wiser is one of the best-known brokers in the UK insurance landscape, and Mark is one of the leading names in the industry. We are proud to be working with him and his team, and look forward to continuing this relationship.”

Personal finance: Five ways to make the most of your savings

Working out how to make the most of your savings might not be top of your to do list right now – but it should be. Here are five easy tips to get your savings working as hard as you do.

1. Create a savings plan
You know that savings are important and perhaps you have a figure in mind of what you would like to have in retirement or how much money it is going to cost to put the children through university but you probably do not have a clearly defined finance plan in place.

Approach your plan by considering if your saving aims are short or long-term. If you’re saving for the short-term, planning a luxury holiday or buying a new car for example, you’ll want to have your money somewhere easily accessible such as in a cash ISA.

If you’re saving for a longer-term goal, to help children through university or retirement, you could consider investing in the stock market.

2. Understand investment risk
Your risk profile is the amount of risk you’re willing to take with your money and your capacity to deal with any losses. For example, if you lose some or all the money you invest, what effect would this have on your standard of living?

Every investment has some risks. Putting money in the bank means you won’t experience a fall in your investment. However, you could find that the buying power of your money reduces over time due to the impact of inflation. Putting your money in higher risk investments such as shares and property could potentially lead to higher returns over a longer period but you need to be aware of the risks involved.

3. Choose the right investment
Once you understand your level of risk start to look at your investment options. Do you want to stay safe in cash or go high risk or are you somewhere in between? The most common types of investments are cash, fixed interest, stocks and shares and property.

Cash: We’d suggest that you should have at least a rainy-day cash fund that is easily available for any unexpected expenditure such as a new boiler or if you can’t work for any reason.
Fixed interest investments: These are also known as bonds and generally pay interest for a fixed period. They are mostly considered a lower risk asset than shares.
Shares: There are different ways to invest in the stockmarkets from buying shares in individual companies through to investing in funds. If you want access to shares but don’t feel your nerves can cope with the ups and downs of the markets, you could consider a with profits fund.
Property: Bricks and mortar have been a popular form of investment although they offer no guaranteed returns.
4. Spread your risk
Consider putting your money in a range of assets so that you won’t be dependent on any one type. If there are fluctuations in the stock market and your shares don’t perform as you’d hoped, you’ve still got funds invested in a cash ISA or property for example that may give you better returns. Many funds will also spread investments across different asset classes to diversify risk.

5. Review regularly
Once you have your savings plan in place make sure you review it at least once a year. Not only will this help you to ensure your cash accounts are offering competitive interest rates but you can also review any underperforming funds.

If you’re not sure where to begin with your savings plan or want to better understand the options open to you based on your risk level talk to a financial adviser who specialises in working with GPs. They’ll be able to work through your plan with you, ensure it stays on track and that your money is working as hard as you are.

Racing Awards, Medals and Customized Gear for Runners

Running, whether it be a 5k with the family, a 10k for an extra challenge, or a marathon for the elite runners, can be a very exciting and memorable experience. Running is a very personal sport to lots of people, as it can be great exercise and can make you look and feel very refreshed. Tons of awards are given out to winners at races each year. For people organizing these racing events, finding customized and personal running gear can be difficult, as well as finding unique prizes for running champions. When orchestrating a race, you want to have a memorable competition. Medals and unique prizes can help to make the race more exciting. Participants can keep prizes as souvenirs, and remember the experience better because of a keepsake.
The most important souvenir a competitor can take home is a winning medal. Those are worn with pride, and showed to family members and friends. They are often hung on walls, or shown off where they can be seen. Of course, medals need to be personalized, unique, and specific. You cannot award a running champion with a medal that doesn’t recognize what it’s for. It is often a perfect idea to find a company that will provide you with customized prizes for winners. Often, you can ask for customized medals that include the date, the name of the race, and the name of the company sponsoring and orchestrating the event. That way, when people proudly show their winning medal to others, the people who made the event happen will receive the credit and publicity they deserve.

In addition to medals, running apparel and gear can be a great way to make the race more memorable. Unlike medals, gear is commonly worn and would be used often. Passing out swag, such as customized shirts, jackets, hats, and bags can be a great way to add to the excitement of the race. Races with their own gear are viewed as more unique, as they have customized logos and attractive designs. Shirts can be given out to families, and jackets can be sold at the finish line. Hats can be passed out before the race to keep the sun out of the athlete’s eyes. And, of course, bags can be kept forever and used for multiple occasions. Having the name and date of your race on these items can help to increase publicity and help the runners remember what a successful and memorable race it was. Customizing these mementos can help to define a great race, and will definitely help a race to be more exciting and enjoyable.