Monthly Archives: April 2013

Managing Business And Personal Finance

Managing Personal Finances

                Manage Personal Finances

Are you having issues with your business transactions? Whatever business you handle, you are unable to manage the funds around you and you always end up as a loser. Likewise, you can become bankrupt due to improper management of your personal money. You should possess proper managerial skills to maintain your personal money as well as business funds. You can become financially stable if you manage your money in a proper way.

Managing Personal Finances

  • Evaluate the living costs around you. For instance, calculate the money you spend on your domestic needs as well on your bills on a monthly basis.
  • Start a bank account to meet your personal needs. You can use money on your bank account to cover up the bills as well as you can deposit your money safely.
  • Prepare a family budget as it can prevent the unnecessary spending of your money. It helps you to utilize money efficiently. You will have a clear idea about your financial status and you will spend money accordingly.
  • Invest your money effectively. Seek an expert help prior to your investment plans if you are unfamiliar with the money market.

Managing Business Funds

  • Locate a superior bank to start a business account. If you are short of funds, open an account that demands zero balance or lesser fees. Never try to use this account for any other intentions other than your business needs.
  • Find a person who is proficient in financial management. Choose this person as the board treasurer if the business you handle has a corporation status. This person has the privilege to be a board member and is responsible for managing the organization funds as well as developing monetary policies and guidelines. In addition, he or she is also responsible for preparing and submitting yearly budget in front of the board to get the approval.

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  • Seek help of an accountant to make financial papers as well as to execute the bookkeeping procedure. However, never carry over all the financial responsibilities to him, as it is very important to update your knowledge regarding the financial transactions or dealings of your organization.
  • You can utilize a financial management program like Peachtree or QuickBooks to create financial data. You can cover up your tasks such as tax reports and supervision of organizations financial assets with the guidance of these applications.
  • Perform timely estimation of the organization expenses as well as profits and keep a track of the bill amounts, administration expenses and upcoming tasks. Preparing a cash flow statement of incoming and outgoing money is beneficial.

These tips related to managing personal finances as well as management of your business funds will help to attain financial credibility. Prevent the unnecessary flow of cash from your pocket and utilize it in a better way.

How To Spend Your Money Wisely

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Many individuals at the end of the month find it difficult to tally their expenses. To overcome this financial difficulty and manage your budget wisely, you do not need a daily money manager. Instead, divide and review your daily budget.

An example

As per the census conducted in 2007, an average American family includes three people and their average expenses taken together are $5,000. This amount does not include the taxes. Therefore, after all the cuts, let us assume that your family’s take home income is $3,000. Now let us divide this amount. Let us divide this income. The expenses include about $1200 for housing, $500 for provisions, $300 for transportation, $250 each for medical needs and other living expenses, $100 for recreation, $75 for your life insurance policy, $50 for clothing materials and $75 as savings.

From the above expenses, some are not to be touched. That is, the expenses for health, housing, savings, life insurance, utilities and transportation are fixed and you cannot make any changes. Therefore, let us consider only the remaining expenses. You can make changes to these daily expenses and have a control over them. Therefore, considering a month with thirty-one days, your daily financial expenses are divided as $16.13 for groceries, $8.06 for your living expenses, and $3.33 for recreation activities and $1.61 for clothing. We have assumed the expenses on an average basis and your budget for these expenses may be different.

Now as per the breakdown, you have $16.13 for each day for a three-member family. This figure comes to $1.79 for every single meal. However, an average meal from a restaurant costs you about $5. A meal for three can have chicken leg quarter, which costs $1, baked beans of $1.5, milk that can cost you $.38 for three glasses and dressing of $.99 and altogether can cost you $5.37 for the family of three or $1.79 per person.

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When it comes to living expenses, they vary from household to household and individual to individual. Living expenses can include expenses for hardware items, pet care, gardening, sporting equipments and the costs for your haircut and the expenses for your hobbies. Many people fund these expenses weekly and assign separate funds for each category. This method gives you a clear-cut idea of how much fund you have at the end of every week. Some people make use of their credit cards while some others use their debit cards to cash these expenses.

If you use your credit cards wisely, it can benefit you in a number of ways and boost up your credit scores. So, spend your hard-earned money wisely and you can be a daily money manager yourself.

Advantages Of Various Money Management Software

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          money manager software

It is very important that you keep a track of your earnings and spending, as this will help you to be a good money manager. However, if you find that this is a tedious or tiresome task, you can now leave them to the different money management software available in the market. Find out more about daily money manager software below.

Plan your budget

With money management software, you can keep an updated record of all the money that comes in and goes out of your account. Money management software helps you to categorize your spending. This will help you to find the areas where you have spent more. This in turn will help you to cut your extra spending on the particular area if necessary. You can find these features in software like Acemoney, Quicken and YNAB.

Calculators in your finance management software

This is an important tool in your finance management software. It can help you a lot to calculate spending and plan ahead accordingly. You can also determine the period by which you will finish repaying your debts and the period for a good investment policy to give you good returns. Acemoney and Moneydance come with loan calculators. If you go for the basic version of Quicken, that is Quicken Starter, you will not find the calculator, however the premium version Quicken Premier has a calculator.

Investment tools

If you are into stock trading, this tool can help you a lot. However, most of the money management software lack this feature. Moneydance, Acemoney and Quicken Premier are the only exceptions. They come with 401K managers and portfolio. They help you to keep the history of your stocks, your account history and other relevant related data. Remember that these software will cost you more than their basic versions. For example, the Quicken Premier will cost you about $50 more than its basic version.

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     money management techniques

Tax program

If your money management software is capable of exporting all your statistics to another tax application, you can easily gain an idea on the tax amounts that you owe the government at a particular period. However, not all programs are equipped with this feature. Only Quicken helps you to calculate your gains and split your expenses and earnings to various categories.

With good money management software, you can easily plan and control your budget and spend wisely. Evaluate the various software available in the market and buy the software that can work as a good daily money manager.

Money Managers Defined

Daily Money Manager

           Daily Money techniques

Money managers are people or firms who administer money. Alternatively, it can be an institution that deals with cash transactions. Hence, the primary responsibility of a money manager is to handle money associated with a person or a firm for their monetary gains. You can find out a number of money managers. There are various terms associated with a money manager and daily money manager is one among them. You should figure out the different tasks or positions they handle to have a clear understanding of a money manager. The different positions and functionalities related to a money manager include the following.

Management of assets

They initiate the task to manage the various assets of a particular organization or an individual. The major responsibility of an asset manager is to safeguard the interests and assets of their investors. During their managing period, it is also important to increase the value of these assets thereby ensuring additional monetary gains for their investors. These managers are entitled with privileges to implement any legal ways and techniques to boost their investor’s assets value. It indicates that the depositors should get more financial gains as years pass by under the guidance of these managers. On the other hand, at times, due to unpredictable events, a financial loss can also occur.

Adopting Board decisions

Executing the conclusions dictated by the company’s board of directors or governing head is also an important duty of the money manager. Consequently, their major responsibilities include pursuing the targets and ambitions of their organizations. These targets or goals depend on the financial gains that they generate for their investors under their tenure. A good money manager should ensure to generate maximum profits for their company.

Right investments

They should possess decision-making skills also. Since money managers are handing assets on the behalf of their owners, they should take right judgments to make investments at the correct time so that their investments yield maximum profits. They utilize their educational knowledge and experiences to carry out the investment plans without prior approval from the depositors.

Tax arrangements

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           Daily money manager tasks

Money managers should manage the tax filing and reporting tasks. They should file particular papers in accordance with the Securities and Exchange Commission, as it is mandatory under the state and federal laws. An important liability of the money managers is to arrange the tax papers within the timeframe. In addition, they should ensure the filing of papers with respective departments.

Navigate through our website to get more information regarding daily money manager principles and keep visiting our website to keep yourself updated with the latest updates related to money managing.

Finance Management Techniques

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When it comes to money-matters, effective management of your finances is very important. Managing personal finances wisely will make you economically more stable and secure. Here are a few tips to manage your funds effectively.

Plan your expenses
At the beginning of every month, make a detailed report of your revenue and your expenses. Make sure to plan your expenses in such a manner that they do not exceed your income. There are things like groceries for which you may not be able to calculate the exact amount. For such items, make a rough figure taking into account the bills for the previous month. Also, keep in mind that emergencies can happen at any point of time. Therefore, you should always be left with enough money to meet such unexpected expenses.

Make a note of expenditures
You should make a note of all your expenditures. Also, cut the expenses from your budget as and when they occur. Check your balance budget and this will make you to spend more wisely and carefully as you always have the figure in your mind left with you.

Go online
Make use of the various government websites, which help you to plan and prepare a visionary budget. Use the online space provided by these websites to keep your records.

Use your credit and debit cards wisely
Credit cards and debit cards can easily impair your budget. This is very important in managing personal finances. If you are not aware or updated on the transactions with your credit cards, you may over-spend. So, use your credit cards within the limit and your budget.

Get appropriate software  

visionary budget

            help with personal finances

Many budget assisting software are available in the market. Purchase and install any one of these software on your computer, so that you keep a record of your spending in digital format. Most of these software will help you to keep the records for years and with the click of a button, you get your records for the month or the whole year in seconds.

Employ an accountant
If you have large earnings and spending and find it difficult to manage and track everything, it would be advisable to get in touch with an accountant. He will assist you in preparing your budget and keeping track of all your expenses.

Hope that the above-mentioned steps have helped you to get an idea on how to manage your earnings wisely. Remember that with a systematic approach, you can spend and save your hard-earned money and free yourself from debts.

Tips For Daily Money Management

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Most of us spend money lavishly for shopping as well as other personal needs. You may not keep an estimate of how much money you spend for various activities. When you look back, at times you feel that you should have saved some amount from your expenditure. However, the opposite occurred. Lack of money management in your life can make your life miserable as daily expenses can eat up your money heavily. Huge loses can even end up in bankruptcy. Therefore, it is very important to have a financial management on a daily basis if you are a spendthrift.

A daily money manager uses the following methods for money management,

Savings from Coupons

You can save a big portion from your grocery bills if you use coupons for your purchase. It can be time consuming also as you should wait for some time to access these coupons. Spend some time during the night to review the different coupons published on the local magazines and newspapers. Choose the respective coupons that are beneficial for you at grocery stores. You can exploit this method to increase your reserves and thereby utilizing every dollar you spend.

Revise your Checkbook

It is not possible to remember or record your daily ATM and debit card transactions at all times. Hence, you may not have an idea about the balance amount on your account. In such a situation, you can update the checkbooks daily to balance it and thereby avoiding overdraft charges. Keep the debit card or ATM card slips inside the checkbook and clearly enter the respective entries. Those with net banking can compare it with your bank statements and it allows you to quickly figure out the differences if any.

Piggy bank

money managements methods

  manage your money effectively

Try to pay for your purchases by means of paper money. Keep a habit to collect changes and deposit those coins you get as change inside a piggy bank. It helps you to increase your savings further. Once the piggy bank over flows, you can add up these savings to your bank account or others. You can also use it for your personal needs.

Identify and cut down expenditure

Identifying the daily expenditure will stabilize your family budget and it limits lavishness. Keeping a track of the daily financial dealings can prevent the money leakage from your bank account. Preserve all the receipts or slips related to your daily transactions in order to manage your incoming and outgoing money.

Practice the above daily money manager methods to spend your money efficiently. Preserving a healthy amount now will always benefit you in the end.

How To Become A Professional Portfolio Manager

Professional portfolio manager

          Professional money manager

The Depression Era people were right in saying ‘Save your pennies and your dollars will take care of themselves.’ This stands true not just back in the Depression Era but even today. If you understand your daily budget and manage your money on a daily basis, then you will notice your monthly budget difficulties slowly fading away. To manage your expenses well, start by reviewing or creating a monthly budget and then opting for a daily money manager scheme.

Tips to become a professional portfolio manager

Becoming a professional portfolio manager is not an easy task. It requires years of slogging at schools and even more years of experience. Even with these, luck is yet another factor that makes a good portfolio manager. Here are a few tips to help you become an expert portfolio manager-

  • Pursue an undergraduate degree in economics, finance, business or accounting. Even though undergraduate degree in these streams is not mandatory, these are the common options and they will prove useful later on. You can go to a university or a local college to get this degree or you can even get it online. This way you will be able to develop a good background understanding for trading bonds and stocks.
  • Go for courses that will help you get a Chartered Financial Analyst designation. It should take you a minimum of three years to achieve this. The second year of studies is usually considered as the most difficult year of the program and a background in financial accounting will be of immense help during the tough times.

    Daily money manager

        Money management on a daily basis

  • To get some practical experience, look for a job at a mutual fund or money management firm. This will help you get ahead in the competition.
  • Understand the markets working and try to learn the investment philosophy of your firm. This will help you develop a sixth sense that will give you the instincts as to when to buy and sell securities and integrate that into disciplined trading approach.
  • Gain a permanent status in your firm. Individuals who have at least 20 years of trading experience are eligible for excellent job opportunities with top-level fund companies like the American Funds.

Now you know how to become a professional portfolio manager with top-level companies. Remember that eventually, experience alone makes a daily money manager proficient in his job.

Some Tips For Managing Your Personal Finances

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control your personal finances

So, you are wondering how to rein in your spending and control your finances better. Managing personal finances is easy if you can enforce a certain amount of self-discipline. Hiring an accountant is not feasible; neither you have time to go through some esoteric volume on personal financial management.

Where to start?

If you want to control your finances and the spending spree

  • First calculate your monthly or weekly net income. This is the final amount after you have paid all your taxes and other financial obligations. This is your entire personal income.
  • Calculate all your monthly expenses. Make a note of all the small, even trivial expenditures. It could add up to become a big sum at the end of the month. If the total monthly expenses are way higher than your monthly net income, you are in trouble. You are in a losing struggle against mounting debts, bills and other dues.
  • The only solution for this mismatch is find an additional source of income or get rid of a substantial portion of your expenses, which you may not prefer.
  • Make a priority-wise breakdown of your expenses and find out how much percentage of your net income they constitute.
  • For example let us consider the categories like mortgage, transportation, groceries, savings, etc. Let’s say that your mortgage and other loan payment takes up  40% of your income and your monthly transportation expenses about 20%, your food and grocery expenses say about 15-20% and a contribution of about 10-15% to your personal savings account. That leaves about 10% for any other unavoidable expenses.

How to turn things around?

However, even  after following the above mentioned steps your financial state of affairs may not look good. But you can turn things around by effectively managing personal finances.

manage your personal account

personal account management

  • To start with, try to reduce your phone, electricity and other bills. Get rid of all the unnecessary expenses like your movie channel subscription.  Purchase food and other groceries from the local discount store. Make a list of things that you need to purchase. Mark the things that can be put off for later.
  • Stick to a monthly budget. Start creating a special provisional fund for any expenses above your budget. Keep a watch on this amount and try to keep it within 10% of the net income.

So by following these guidelines and by streamlining your expenses, you can live within your means and contribute something to your savings account at the end of the month.

Looking For A Daily Money Management Service?

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       opt for Daily Money Manager

The Daily Money Management refers to the taking care of all your day-to-day financial needs like billings, taxes, documentations etc. Most of us take care of these things on our own. But some of us might need some help with a few of the cumbersome tasks like the taxes.

Most of the people who opt for the services of a daily money manager are themselves incapable of taking care of these tasks because of their old age or some mental illness or disability. This category also include people who travel a lot to accomplish business related tasks.

Daily Money Manager Functions

  • The Daily Money Management firm helps you with all your financial management and planning activities. They would help you organize your tax bills, filing your medical insurance claims, offer investment related advices and suggestions and helps you keep track of your investments. In case of a theft, they would help you with the formalities associated with filing the claims. They also offer estate and assets management and planning services.
  • The daily money manager will effectively organize all your invoices and bills. They will also make prompt payments and obtain receipts and signatures for documentation purposes. They can efficiently manage your bank, mutual fund and stock market accounts. The money manager can even make timely deposits and withdrawals on your behalf for managing your finances.
  • They also provide auditing services. Auditing will be done on all your financial statements including your credit card statements. All of them will be scrutinized for accuracy and filed for future references. Reports will be generated for your yearly or quarterly cash flows and for any other financial management activities.
  • All the necessary paperwork will be sorted and filed and all the necessary documents will be sent to the concerned parties like the family lawyer, financial advisor, bank managers, etc. Quarterly estimates for tax payments will be created and all the necessary financial records for the taxes like the real estate property tax will be filed.

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  • One of the main services offered is to help you rein in your spending and to reduce your total debt. It is better to opt for professional help to manage your finances if you have an over-spending issue. This is also applicable to any long-term loans that you are trying to get rid of.
  • They also provide educational programs to help you manage your finances on your own.

So if you are not able to take care of your finances, get help from a professional Daily Money Management Service.