November 14th, 2009 by admin

So you think you need budgeting?

Prices you saw in the yesteryears are of very low magnitude for the current year. Rising internal inflation has made people to believe that a tactful plan is required for getting the greatest value for money. Money needs to be well-spent so that it maximizes your monetary funds.

You need to diplomatically work out to coordinate your earnings and expenditure so that you get the hold of being financially stable as a corporate entity.

What determines your budgeting?

Your earnings, way of life, expenditure habits, job profile and house site tells you how you can establish your level of budgeting. As you learn to maintain your expenses professionally, would be at your foremost sense of self-fulfillment.

Following below are some of the pointers which would assist you to administer your savings giving the latest outlook.

1) Treat Math as your Lifetime Partner- Always be smart by keeping in mind the prices of items which are regularly bought as few stores follow premature price changes on goods. It is a worthwhile decision to weigh the prices against several stores before you end up finalizing one. Limiting to a single place, whatsoever the reason is never a good idea.

Using Chinese techniques of buying in larger quantities could also add to the worth.

2) Never gamble- Gambling would frenzy your life in a mess. It would strip you off your funds making you vulnerable to economic failures

3) Classify the wants and needs- Shopping would become a nuisance when you are not aware of how to prioritize the requirements. The fundamentals of food, clothing and shelter cannot be done without. These requirements are worth throwing spend at, as they concern your health and security coming under the needs category. Wants can always wait as they are associated with luxury which can be done without.

4) Don’t spend exceeding what you earn- It is not what you earn that makes you rich, but it is what you save! At times the idiom “Rags to Riches” become vice versa. Be diplomatic with your shopping expenditure and you would be amazed to visualize your wise spending.

5) Maintain the basic list- It is advisable to agree on things that are key and imperative to you. It is good to conclude what item is required and which are the ones you only long to have.

The foremost thing that people don’t realize is the significance of buying according to one’s lifestyle. Keeping your style at the base, you can decide what is really necessary. Unless you are a frivolous customer who is abundant of resources, you have no choice but to accept the above.

November 7th, 2009 by admin

We know what is financial management. It’s a personal decision in making wise choices about our cash. Financial management involves a lot of areas. Here, I list out 5 of the most important areas that you should know.

These are the main areas you should concentrate because it is these areas that we either mismanaged our money, or it will enable money to work for us.

The following are the key areas that you should look at:

Cash flow management

This involves assessing your current net financial net worth (what you own minus what you owe). This should generally tell you whether you are on your way to financial freedom or financial disaster.

In short, most financial experts would advise you to keep a high savings and this should be your MAIN PRIORITY in financial planning.

Investment planning

Once you have decided the amount of money you would like to save, you should consider where to put your savings with the aim of getting a higher returns than your normal savings account.

Forget the 2% p.a. interests for saving. You require something more sophisticated than that! At a minimum, you should go for fixed deposits. Otherwise, a good investment program will be nice.

Insurance planning

Insurance planning is required to in ensure that all your properties are protected and that your family members are well protected by having enough insurance coverage.

Tax planning

The topic of tax planning affects everyone who receives income, yet it is an area that is mainly forgotten or forgotten by most individuals. Therefore, this area involves strategies making the most under the local tax regulation in the area of your income, stocks, real estate, and property.

Retirement planning

You are not going to toil your whole life, are you? When old age symptoms begin to kick in or you have reached the mandatory retirement age, you will want to retire. There is no choice.

Therefore, having a retirement plan regardless of of your age is essential! You wouldn’t want to be forced to go back to work due to lack of money!

Estate planning

Having an estate plan or a will shall ensure that your wishes for the future are carried out. In addition, an estate plan or a will can supply financial protection for your family, ensure your property is preserved and keep off dispute among family members.

The above are just 5 of the many other financial decisions. It is important to take note of your above 5 becasue they are mainly responsible for your financial success or failure.

November 7th, 2009 by admin

As more and more businesses seek to reduce costs – one area that is a likely candidate is that of the financial staff supporting projects of work.

As centralisation and outsourcing continues to be a key driver in cost reduction in many large firms, what is often cut is what is seen as the “non-adding” value staff. The issue arises is that these staff are usually the ones who are out of site of the head finance managers, work numerous hours on assisting in the delivery of projects and yet are not really seen by the “latest” re-organisation as adding value. They will insist that a light-touch financial management from a central finance function will do just as well.

The Project Financial Accountant or Financial Manager is one such staff member. Before I launch to the project accountants defence it has to be noted that having the wrong finance manager in charge of project financial matters is as good as having nobody and therefore is “no value added”, and should go. The problem is that senior management has either little care or little knowledge about what it is like to correctly financially manage a large programme of work. They consider their FX manager – controls £250m worth of foreign exchange in the year – we only need one of him or her, so why for a £50m programme of work do we need a full time accountant. Possibly you don’t – however that is another debate for another day – you will at least need part of one!!!

The result is that all the financial management of the programme is handed over to the Programme Director – who will in turn hand it over to their Programme Manager. Both may or may not have sat through the half day session on project finance within Prince or PMI, and both will be of reasonable intelligence – so what is the worry – the finances are in good hands!!!

Let’s look at it from a more realistic direction – why you need a strong Project Financial Manager:

A Project Manager is not a Financial Manager – they are fully responsible for their project – however financial control is not their key skill. Most companies will require some form of upwards reporting of the project monthly financial results – these are always complicated ways – again not the usual world for your PM. Financial management (no matter how financially astute they are) will always play second fiddle to “project delivery” on a project managers “to do” list. The loss of detailed analysis and review by financial staff results in missed opportunity and cost avoidance. As a real life example CJM Project financial Management Ltd recently worked with the Project Director of a global programme – reducing the original estimate of an IS consultancy and development firm by £350,000. It was a good day at the office. These large projects are in the scale of FTSE 350/250 companies yet many companies and public bodies will only provide a light touch financial support to them – we would not expect such a company to run without adequate financial support – why do we allow projects. Management decision-making is impeded, as there is no financial support to produce robust, relevant and detailed reporting to the steering group or other management teams. Minimal financial support during business case creation can result in initial budgets being wrong – resulting in over / under estimates of funding in the financial year. Relationship building and being part of the project enables greater understanding and greater control and provides the Programme Director access to specific financial direction and advice – light touch removes this ability. Dedicated finance managers provide a faster reaction to issues, which may have financial implications. This can be done via creation and delivery of project financial risk and opportunity trackers – this approach mitigates risk and drives opportunity.

All in all – analysis on hiring the correct Project Accountant as part of the core project team will, if hired correctly and with the correct skill set behind them always deliver a project, business or government department considerably more benefits than their cost. Think before you cut that project financial accountant from your headcount – you will regret it. Light touch is sometimes as good as no-touch.