What To Look For In A Finance Manager
The service of providing funds or capital for commercial or private reasons comes under the umbrella term – Finance. As a branch of a broader subject ‘economics’, it can also be viewed as a method of managing assets. This subject is also referred to as a system of administering money used by the private and business sectors. People that look after or manage the arranging of finance are called finance managers.
Managing this involves dealing with the optimization and allocation of funds to various areas either by borrowing or by using those available from internal resources. The way this works is that managers work to keep the cost of their borrowing low whilst passing this cost on with a an additional percentage to the client enabling a profit to be made. Bad debts are poor finance management where rules have not been followed; the result of this is depressed markets, low production and a cash crisis. This is why people who act as finance managers only have this type of work for a relatively short period because the potential risk to companies is high and so are the stress levels as a consequence.
One of the most famous management gurus Lee Iacocca referred to finance managers as Bean-Counters who almost look at the expense part with a rather pessimistic view. Unlike the sales managers who would like to invest in the future by product development, finance managers are rather skeptical of financing a project whose benefits lie in the future; even though their management governs future outcomes too. Unfortunately when you are running a small business, the boundary lines between a personal loan and a business loan can be a little blurred and often the planned arrangement is not used as was not used for its original purpose. Generally lenders who are investing in a business situation like to know exactly what their money is being used for.
Hopefully by educating the small (and large) business owners of their fiscal responsibilities they may build the basis of an improved company in the future. Small businesses can be very flexible, however, and call upon friends, other businesses, family members, even their own bank for finance. Lenders prefer to use money from elsewhere because it lowers their risk but still allows for a healthy profit to be received by the finance company. Bob Hope once said that you can only get a loan from a bank if you can prove to them you have absolutely no need for it; advice which could not be more true.
How To Survive a Recession
A recession is known by many names - sometimes it’s called a ‘weak economy’, a ’sluggish economy’ or an ‘economic downturn’. This article shows you how to survive during a recession.
Look for the Signs
First of all, many times a recession in the U.S. economy is only recognized and acknowledged by politicians and officials several months after it has ended. According to the Department of Labor and the Bureau of Economic Research, the average American recession lasts for ten months, and the two most recent economic recessions only lasted about eight months each.
During a recession, unemployment typically rises about 1½ percent over non-recession figures. You’ll see economic jitters in the stock market and falling prices in some (but not all) real estate markets. The talking heads on television will most certainly wring their hands and say that the sky is falling - (bad news is always good for the news business). On the other hand, investors in real estate and in stocks take advantage of falling prices to acquire good stocks and properties while the prices are temporarily lower. Bob Thornton, a respected Florida-based real estate investor says “Everything in the store eventually goes on sale sometime. It’s just real estate’s turn”.
Regroup and Reorganize
None the less, there are many specific steps you can take to not only ’survive’ a recession but also to ‘thrive’ during shaky economic times.
Let’s take a look at some specifics.
Reduce or Reallocate Expenses
I have a business friend who swears he can’t live without his $9 cup of fancy foo-foo coffee everyday on the way to work. That’s $2,160 a year. He could be use that money to reduce his credit card debt or it could go into his retirement account to be invested for his future. We take a lot of expenses for granted that are not really necessary. These are called ‘discretionary’ expenses that may not pay us back for the money invested.
Business owners should always look at dollars expended as being investments in the business. That is, make every dollar spent either in support of your business or in marketing it to your potential customers. Look at every dollar in terms of ‘what can it do to support, grow and expand the business.’
On both a personal and business level, there are a variety of checklists that can help you. One website - http://beingfrugal.net has a very checklist on surviving a recession in its 2008 archive of articles.
Spread Your Risk and Think Long-Term
If you’re a stock investor, look into well-balanced mutual funds with a 5-year or 10-year track record that reflects both bull and bear markets. That way you’re dollars are diversified across hundreds of stocks and overseen by professional managers whose compensation is tied to the fund’s performance.
If you’re a real estate investor, take advantage of the fact that sellers are competing for buyers - often selling properties just for the amount owed on them. Also look at different forms of real estate investing - including tax liens, trust deeds and other forms of ‘paper’.
Look at the long-term when considering investments and business moves. As a general rule of thumb, recessions tend not to last very long - usually from 9 to 18 months. They are counter-acted by moves in the Fed’s interest rate, by adjustment of loan qualifications, by government spending policy and by consumer spending at key times of the year. 80% of the recessions since 1948 have lasted less than a year with the recessions of 1990 and 2001 each last only 8 months.
Emergency Fund
If you don’t already have one, get an Emergency Fund going. Consider putting money into your emergency fund an expenditure of the first priority. Many financial planners say that an emergency fund should be built up over a period of time so that you have at least one or two months worth of normal expenses set aside in a safe, conservative account. Experienced planners say that three to six months is even better.
Your credit cards should not be your emergency fund. Using them only makes matter worse and digs you into an even bigger financial hole. Instead, look at every possible viable alternative before turning to credit cards to get you through any thin period.
After the recession is over and things are turning around, you should commit a steady and consistent percentage of your income to renewing and building up your emergency fund ‘for next time’.
Focus on Where You’re Going
Don’t lose sight of your goals. Yes, they may need to be readjusted for a time during a recession but remember that a recession is by its nature temporary. The end of the recession won’t be announced with trumpets blaring and sirens going off; however, things will eventually turn around so that better times have arrived. If you’re an investor, you’ll be tempted to cash out poorly performing investments. But be careful and look before you leap at the underlying basis for the investment. Is the underlying value of the investment something that stays with it even though the price varies up and down during different markets? If so, then unloading it during a temporary recession may cause you to lose money. On the other hand, if the inherent value is something that stays with the investment in both good markets and bad, then instead of unloading it when prices fall, you may want to use the opportunity to get more.
Take a Skills Inventory
Regardless of your age, you can ‘find a home’ if your skill set is worthy of an employer taking a risk on you. If you’re working for someone else (rather than yourself), do a skills inventory and beef up those that need to be improved. Your skill set is really what makes you attractive to a prospective employer.
If your professional resume is outdated, dust it off and update it. Put some feelers out among your friends and contacts, and don’t be afraid to reach out beyond the locality in which you now live. Also, make sure that you are perceived at work as a ‘valued employee’ instead of someone who is expendable if things get tight for your employer. To avoid being laid off, strive to be among the top five percent of the employees.
Spread Your Net
This is the time to network a lot more than you might usually do. Take the time to search out meet-and-greet networking meetings of business people in your area. See what the chamber of commerce or other business associations in your area might be sponsoring. If you belong to any associations or clubs, make an effort to reach out and let people know you are ‘looking’.
Networking itself is a skill everyone should develop. Doors that close on you only stay that way if you don’t do anything about it. Networking in your industry or skill set is a great way to not only open doors for employment opportunities but also make new friends. Relax, be ready to help people remember your name and contact information, and don’t be afraid to shake the hand of someone you haven’t yet met.
Bottom Line
It’s up to you to prepare and be ready for a recession. It’s your responsibility to take the initiative and keep your ear to the ground listening for signals that won’t always be obvious at first. Remember that a stampede can be heard and felt before it reaches you. By the time it does so, preparing for it is too late.
You need to plan ahead and build an emergency fund to give you a financial cushion. A recession isn’t always ‘announced’ or ‘proclaimed’. It builds over time, and the smart money is preparing for the worst and hoping for the best.
If you’ve waited too long to prepare, it can catch you by surprise. Look at the signs around you, read the music that’s being played in the media and in the business environment in which you operate. Keep your eyes open and look for ways you can take advantage of the changes. Once you see a recession on the cover of most print media (newspapers and magazines), it’s already arrived and your preparations are behind schedule. So take the time now to build your resume, to review your list of contacts, and consider what you need to do so you’re not a statistic of the recession.
Offshore Banking - What You Need To Know Before Opening an Account
Offshore banking, we have all heard about it before. Unfortunately, many are misinformed when it comes to offshore banking. We have all heard news reports of offshore accounts being used to front illegal activities or to avoid taxes. In fact, we have also seen it in the movies, being used a similar way. This has led many individuals to believe that offshore banking is illegal. Despite what you may believe, offshore banking is legal. However, how you use it may be considered illegal.
Offshore banking is done through a bank that is known as an offshore bank. Offshore banks are banks that are located in another country, other than the country that you reside in. For instance, if you live in the Untied States an offshore bank would not be located in the United States. Many popular offshore banks are located in Switzerland. There are a number of advantages to offshore banking, but there are disadvantages as well.
The biggest advantage of offshore banking is that you are offered privacy and stability. There are many individuals who place their money in offshore accounts for security purposes. When your money is in an offshore account, you can access it, but many choose not to. It is easier to access and spend your money if it is at a local bank. That is why a large number of individuals use offshore banking to help them increase their savings.
Another advantage of offshore banking is that just about anyone can open an account. The most common users of offshore banking are corporations, the self-employed, or individuals who wealthy. Offshore banks may have restrictions on the amount of money that is needed to open an account, but it is not always a large amount. Whether you are a small business owner, wealthy, or you consider yourself middle class, you should still be able to open up an offshore bank account.
As previously mentioned, offshore banking is often associated with illegal activities. One of these illegal activities is tax evasion. If you set up an offshore bank account, you will still need to report your savings. Not reporting all of your money in an offshore account can lead to you be brought up on tax evasion charges. It is important to note that you have the ability to prevent this from happening. As long as you choose to use your offshore bank account legally, there shouldn’t be any disadvantages to having one.
The decision to open up an offshore bank account is a large one. If you are interested in opening up an offshore bank account, it is advised that you fully examine your decision. Many benefit from offshore banking, but not all do. If you are planning on using your offshore account to avoid a lawsuit or to evade taxes, you may want to reexamine your decision. As previously mentioned, there are serious consequences for doing this. As long as you plan on using your offshore account in a legal way, you can benefit immensely from offshore banking.
Bad Credit Loans Online - A Fast Solution to All Financial Woes
People like to keep their records straight when it comes to financial standings. However, it may sometime happen that there is a discrepancy which arises in the financial history of the borrower without him knowing about it. This can be a problem when in future; there is a requirement of money. Bad credit loans online are one way to solve all these issues related to finances.
The borrowers who require money urgently for their needs and do not have much time at their disposal, it is the best to take up this way of borrowing money which is fast as well as hassle-free. Bad credit loans can be applied for online which helps in faster approval and getting lower rate deals due to stiff competition that prevails.
Bad credit loans are available to be taken up in two forms. The first one is that of secured form of these loans. The money is made available by the lender only if the borrower is ready to pledge an asset with him as security. The asset should have a good equity value so that a good amount may be fetched. Any asset like house, car, stocks, bonds etc can be pledged. The amount available lies in the range of £5000-£75000 for a term of 5-25 years which the borrower has to repay the amount.
Another form of these loans is the unsecured one which does not require the borrowers to pledge any assets. This means that all borrowers which include tenants, homeowners and non-homeowners are eligible to take up these loans. The money available to the borrowers lies in the range of £1000-£25000 and has to be repaid in a term of 6 months to 10 years. Timely repayment of the loan money also helps the borrowers in improving their credit history so that future problems can be minimized.
Bad credit loans online are the best way one can cope with the needs of money when bad credit history is troubling them. The option that is most suitable can be taken up by the borrower easily.
No Credit Check Loans - Hassle Free Finance Without Credit Woes
Now it is possible for a borrower with severe credit problems to obtain funds without the fear of getting rejected. The loans are especially aimed towards those who have a history of adverse credit or no credit at all. No credit check loans facilitate smooth movement of cash, which then enables the borrower to meet their needs at relatively easy terms and conditions.
These loans are of good help when the borrower is facing severe financial crisis. The amount obtained under these loans can be used for paying medical bills, home improvement, wedding, consolidating debts, educational purposes etc. Moreover by ensuring timely repayment of the borrowed amount, the borrowers in particular have a chance to improve their credit score.
As per their needs and requirement, borrower can obtains the funds through these loans in secured and unsecured form. Those who are looking for bigger amount along with cheap rates can opt for the secured form of the loans. However to avail the loan option, borrower has to pledge one of the valuable asset as collateral, which can be a home, car or any real estate property. Usually, through this loan option borrower can raise amount in the range of £5000-£75000 which has to be repaid over a period of 5- 25 years.
For those borrowers, who are looking for small finances and are not willing to attach any collateral can go for unsecured form of the loans. The amount is advanced on the basis of borrowers’ income and repaying capability. Through this loan form, an amount in the range of £1000-£25000 can be availed for a reimbursement period of 6months-10 years. However, these loans carry a slightly high rate of interest as the amount is approved without any collateral. although a proper research will assist the borrowers to obtain competitive rates.
Finding a convenient deal is now quite an easy task with the online mode. as the online market is full of lenders offering the loans, a proper study of the rate quotes of various lenders will help you spot lenders offering these loans at competitive rates.
With no credit check loans, a borrower with credit problems or no credit can generate financial support without facing too many obstacles.
Finding a Hard Money Lender
At first, hard money lenders may seem difficult to locate. However, you just need to know the right places to look. Professionals such as accountants, attorneys, and insurance agents have often have clients who are hard money lenders or more generically, private lenders. Especially, if they think they could profit by your endeavors, these professionals often will be eager to refer a source.
Settlement attorneys are often very knowledgeable of individuals in the field since they write loan documents for hard money lenders. Because of their familiarity with the work, attorneys may be hard money lenders themselves.
Since accountants have clients seeking to invest, they are another great source. Real estate is a very secure investment and lenders are not timid to real estate loans, especially when the long term value is low and the interest rate is high. Usually trust in accountants is very high as people let them do their finances. Therefore, a referral from an accountant should carry a lot of weight for a lender
Another method for uncovering lenders is to research the homes undergoing renovation. The courthouse can provide information regarding the lender involved in the renovation projects and often a private lender is involved. Concentrate on contacting lenders who have homes in the same area where you want to invest as their background and familiarity with the market makes them a more likely source.
Insurance agents will also be knowledgeable of the names of hard money lenders in your region. Any hazard insurance policies issued will have listed a “loss payee” if a lender is involved. An agent can go through their records and find names of private lenders on policies they have written.
Mortgage brokers who regularly work with investors are a good source. There may be a fee associated with the referral, but if it means finding a source, it very well might be worth it. Finding a hard money lender is not difficult if you have connections, know the proper circles to look in, and ask around. Stick to people in your area. It may require persistence, but eventually you will find one. They do exist. It just might take a little ground work to uncover them.
Save up for education
My baby boy is now 1 year and a half. It’s still a few more years before he goes to school but this early, we have started to save up for it. It’s just a small amount every month but my husband and I would like to make it a point to add to our savings and include it in our monthly budget.
Some friends have offered the prospect of getting an educational plan but I am kind of wary because of some institutions here folding up and the people who got plans were not able to make a refund or even get just a portion of what they paid for. I’m scared in that aspect because we are going to risk our hard-earned money and I wouldn’t know what to do if that happens to me.
We might look for other ways where we can put our money so that it can earn a big interest but we will have to discuss that with bank officers just to be sure. For now, it is our goal to save money for our son’s education. No matter how small or big the amount is, the important thing is that we get it started as early as we can.
earning online — a piece of cake?
i have been an official bum for about 3 months. it’s hard to be one. it’s pretty embarassing for me to still ask allowance from my parents. i have graduated and all. so i deviced some tactics on how to earn my living.
i started working online for a couple of months. last may, i was quite wary about doing it since a lot of sites offering to pay you are scams. i needed proof. so what i did was, i only worked online for a couple of days. and i earned $49.85 from one paidblogging site. it was easy money i should say. i could have gotten to $300 or maybe $500 if i wanted to. but doubt kept me from doing it. i waited for a couple of weeks to receive my payment. and indeed i got it on time!
now i am aiming for higher pays. i could say that earning online may be a piece of cake to some. if you get a lucky break. but one thing is for sure. earning online is about hard work too. and dedication. and striving for excellence.
Saving on groceries
Grocery shopping can be your single biggest spending category, as it includes expenses in food, toiletries, cleaning agents, and many more things used for daily living. Thus getting savings from grocery shopping would contribute greatly to your cash flow. The monthly grocery bills of people, of course, varies. Families with newborns and toddlers would experience higher grocery bills due to the addition of milk, diapers and baby food, among others.
Here are some ways to cut that grocery bill and to shop supermarkets more efficiently:
-Make a list of what you would need for the next two to three weeks. The list should be the basis for your purchases. More often than not, shopping without a list leads us to pick a few more items from the grocery shelves, items we do not really need. So check your needs. Check your pantry, ref, bathroom, and bedroom, as well as other areas so you will not miss an item. In that way, you will not need to go back to the supermarket just to buy the missed item.
-From past grocery shopping, you should be able to identify which supermarket should be the right one. The right one may be the one that offers affordable goods, or probably the one that offers a complete assortment of goods. Try to do comparison shopping once in awhile.
-Take advantage of coupons or memberships to supermarket clubs to avail of larger than usual discounts. Over the course of a year, this will provide great savings.
-Try house brands for some necessities like toiletries, cleaning agents and even sauces. Usually, these goods are manufactured by reputable producers. They are as effective as the pricey branded items you have bought through years.
-Shop intelligently by using unit prices. Sometimes, larger does not equate to more affordable if you consider the unit price. Also, there are sales of items that attract you to buy things you do not really need. Study such offers and you will find out that you are better off without them.
-Use a credit card with rebates to accumulate cash that payoff a part of your bill. Just make sure to always pay your credit card bill on-time and in-full to avoid finance charges and interest payments.
-Avoid going to often to supermarkets so you will not have the urge to spend. Spread out grocery shopping evenly, so you will have goods available for you for a pretty longer time before you again set out to do grocery shopping.
Plan Ahead
My hubby and I will celebrate our 2nd anniversary this August but this early, we are already saving up for our retirement. It’s not really a big amount but just enough so that we can get started. If we continue saving over the next years, it would be enough to live a simple life.
Of course when that time comes, we don’t want to rely on our son for support as most probably he already have his own family by then. I hear stories about old people who were not able to save enough during their heydays and when they got old, they were deep in financial troubles. I think it would be stressful not knowing where to get money even for medication.
We plan to set aside a small amount from our paychecks every month and open a savings account for it. Right now, we haven’t opened an account yet but we put the money in an envelope labeled Mom and Dad’s Retirement fund. We intend to keep adding money to it monthly at all costs.
The future is an exciting prospect for we’ll never know for sure what it holds. My advice is save up while we can so that when the rainy days come, we are ready for it and we won’t be scrambling anywhere just to look for financial help.