Personal Finance Planning Strategies – Why You Should Treat Your Household Like a Business

Do you treat your household like a business? Maybe you feel that treating your business like a business is quite enough. But think about it for a minute. As someone who owns a small business or a professional practice, you know there are some fundamental ways to operate that group activity so that it is a profitable, expanding endeavor. Read on to discover how you can apply the same rules to your household as well, which will go a long way towards helping you with your personal finance planning.

And not only do the same fundamental rules apply to your household activities, but the more you apply sound business practices to your household, the more financially secure you and your family will be.

But how do you get started?

Why not start your new approach to personal finance planning with a change of terminology? Let’s think of your household as the “parent company”. In business, a parent company owns junior or “subsidiary” companies and other assets. Well, your household owns assets too: a small business or practice or stocks (subsidiary companies), bonds, cars, collectibles, etc. It has money that it owes, called liabilities, such as mortgages, car loans, and personal loans.

The household also has income, whether earned as salary or as dividends from investment activities and it has expenses such as the cost of living and so forth.

The household also has executives that make day-to-day management decisions: you and your spouse. It also has staff: all of the members of the household, each of whom are responsible for certain functions.

Like any other business, your household reports its financial condition every year. The 1040 income tax return is essentially an income statement and balance sheet for the business activity for the year. The household tax identification number is your social security number. The government views you personally and your household as business activities. The sooner you adopt that same viewpoint, the sooner you will act like a business owner and run your “household company” more profitably.

Every business must have certain areas functioning to be viable: These include executive planning, personnel, sales, finance, technical delivery, quality control and public relations. Any one of these functions that are either not done at all or done poorly will make the business activity non-viable and, quite possibly, bankrupt. The household is no different.

If you are an employee of a company, you may think that these functions do not apply to you. They do. If you are employed, you have contracted your services for a salary (not really any different than being self-employed) which is then gross income for the household “corporation”. It is the lack of business perspective that has caused the adverse economic conditions in which we find ourselves.

One of the greatest omissions in the management of household business activity is the lack of a plan. Financial planning is the only way to ensure that the proper things are being done to run the household as an expanding, profitable enterprise. Yet, the vast majority of American households do not have a plan and the results are obvious-a record number of bankruptcies, unsustainable debt, and low income.

But you don’t have to follow in their footsteps — or remain on that losing path. Why not revamp your personal finance planning, apply the basic natural laws of business to your household, and grow your financial resources to achieve your life goals?

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Foundation to Personal Finance Planning and Achieving Financial Freedom

Even as you are generating wealth you need to find ways of cushioning yourself from losing your acquired riches. Personal finance planning is therefore a crucial element of managing your finances. It is essential to start early when it comes to managing your finances rather than waiting until you have become a millionaire. It is through organizing and budgeting in advance that will easy your way towards achieving financial freedom.

• Keep a record of all your expenditures. Apart from this helping you manage your finances it may come in handy when you need to do an audit of your financial progress in the future.

• An integral element of personal finance planning is negotiation. You should learn tactics of negotiation and hence get the best deals. In addition, realize that you will not succeed in all kinds of negotiation, you also have to be ready to let go and settle whenever things are not going your way. Therefore, this means you need to have tact and know when to seal a deal.

• It is advisable to delegate duties especially when you become overwhelmed with things to do. But try as much as you can not to trust others to sign your personal checks. In case you have no option and have to delegate, make sure the person you choose has shown true elements of trust over a long period of time. All said and done you are the one who is entirely responsible for your personal finance planning and management.

• Nothing in life is perfect hence you should never but your eggs in one basket. Proper personal finance planning calls for you to have several streams of income. Also remember to back up your financial documents. This you can achieve by involving your personal lawyer and keeping a copy of the same documents in a safe deposit box with your bank.

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The Most Difficult Part of Personal Finance Planning is Sticking to Your Personal Finance Budget

For a happy financial life, being financially responsible is most important. The importance of living within our income is the first and foremost step in attaining a secure financial future. It is common sense that we can’t afford to spend more than what we are earning. But in fact, what happens is that with the widespread use of credit cards, people tend to overspend. If we do this, then we are breaking the laws that lead us to a financially sound future.

For making this plan a success, we need a properly planned financial budget. If we have one, then the next step is to follow it continuously. You can’t afford to break away from your financial plan. For sticking to your finance plan completely, you will need utmost punctuality and determination. I said that you need punctuality because most people often break away from their finance plans in between. All of them seem to be very interested in making a plan, but very few of them becomes successful in keeping it. Sticking to your finance plan is very difficult indeed. But you will have to pay this price if you need a very financially sound future.

So, if you are become successful in maintaining your business plans successfully, you are surely looking forward to a very excellent future where you will be completely free of any financial burdens like credit card debts or bankruptcy. But if you do not manage to keep your punctuality in following your plan, you are surely going to face a very bad financial future. It is left for you to decide.

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Steps to Make a Personal Finance Plan

Face the fact. The most difficult thing you may have managed in your life is your finance. All of us know this fact. We would have tried managing our own finance in one way or the other our lives. But the fact is that most of us would have failed in this attempt. This is because most of us do not know how exactly we manage our personal finance. Managing it is truly very difficult. But once you learn how to manage your finance, then you will find it a lot easier.

Let us have a look at the process of ‘personal finance management’. First things first; get a list of all your steady income in a month. Steady income means that kind of income that is sure to get every month. This can include your salary and your monthly investment returns.

Now, get a list of all your expenses. Separately make a list of your regular recurring and unavoidable bills like your internet, TV cable charges and telephone. Make a different bill for your entertainment and other charges. Now you will have to clear cut idea only how you are spending your money.

Out of this again, cut down all expenses that you think is unnecessary. You will surely find a lot of unwanted stuffs that you buy every month. Stop wasting money on them. Now again start making a plan for your savings. You can slowly increase your expenses by managing your day to day affairs properly. You will slowly start building enough savings and eventually will be having a very secure financial life. But personal finance planning is the key to this.

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Why You Must Have a Clear and Written Plan for Your Personal Finance Planning Success

Good personal finance planning will never happen as a result of managing your financial life by the urgency of the moment or by what is urgent instead of what is important. As you know, success at anything, especially in the effective management of money, requires you to be proactive consistently in your daily actions. In this article, we’ll be talking about how you can accomplish this starting right now by having a clearly written plan for your personal finance planning success.

Personal Finance Planning Made Simple

One of the primary differences between people who are successful with their personal finance planning and people who are not is that the successful people have a clear and written plan as to how they’re going to achieve their goals. Meanwhile, unsuccessful people assume that as long as the plan is in their head, that’s good enough. Many of us greatly underestimate how big of a difference it can make to simply write down your goals and a plan for accomplishing them.

If you’re reading this and assuming that something this simple can make a big difference, here’s what you owe it to yourself to start doing right now: sit down every night and write out a step-by-step plan for what you’re going to do the next day. Keep it simple, put things in order of priority and make sure that you take care of the things which require the most focus when you are the most focused, which is normally right after you get up in the morning.

Just do this for one week, and at the end of the week evaluate your progress and set out a goal for what you’re going to accomplish the next week. This will be more than enough time to convince you how much more focused and productive you can be by simply having a clearly written plan for how to manage your time and energy.

Staying Focused on the Big Picture by Being Focused in the Small Picture

After you’ve done this exercise for a week, sit down and map out a plan as to where you’re going to be financially in one year. Break this goal down into monthly, then weekly milestones, and finally into small actions which can be taken on a daily basis. This way, you can focus your energy on the small building blocks which will eventually make up your success over the period of the next year.

Too often, people don’t do and then find that at the end of the year, they are nowhere near where they want to be. You can set yourself apart from this majority by following the simple steps in this article and having a clear path towards achieving success in your personal finance planning.

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Cheap Insurance Companies and Their Services

To some people, cheap insurance companies are merely a myth, to others a reality they do not ever want to acknowledge, but one fact remains the same. Cheap insurance businesses are a commodity most people do not avail for different reasons. Some are scared that they might end up paying more than advertised others just do not want the extra expense.

It is true that there are quite a lot of insurance businesses out there on the internet that are not cheap at all, as well as insurance companies that are cheap and offer the best service. Then there are also cheap insurance businesses that are not just cheap with awful service (these are the ones you would want to avoid). If you want to save money while spending yet at the same time get the best service you will have to do some search into various cheap insurance companies.

There are two ways to find a good insurance company; online and by roaming around, but there is only one way to get a cheap insurance from a company i. E. Search the internet. The reason is simple, where an insurance company caters to clients across the state or just in your area, an online insurance company caters to people across America, and more business means better competition, which ultimately leads to cheaper and lower rates.

Keeping the above equation I know you will agree that the best deals are to be found online, however if you up and want to do business with the most advertised of insurance dealers, you are surely in for a heart-break. These companies in order to compensate for the high costs of advertisements offer some pretty high rates to their customers.

If you truly are looking for a cheap and reliable rate for your insurance, it would be wise for you go for the moderate kind of insurance businesses. These companies could be anywhere after the first ten or so search results. You can also choose to narrow down your results to your city, state, or even by using your zip code if you are searching for a company locally.

Remember to check on the bare minimum of insurance prerequisite in your state and then go forth with negotiating the essentials before negotiating the rates. Almost every state has some sort of bare minimum for their citizens insurance policies these days and it is entirely up to you to convert this slight problem into a blessing that does the most good for you.

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All About Insurance and How to Find Cheap Insurance

Insurance is very important. The way that insurance works is that a whole lot of people pay a small amount of money into an insurance pool. This pool of money will protect these people against some sort of risk, such as the risk of your car getting stolen. Because many people pay money into the pool, the pool becomes rich and full of money. Then if one person who has paid money into the pool gets their car stolen, then the insurance company will give them money out of the pool. The insurance pool can pay out much more money than that individual person had by himself.

The only reason that insurance works is because the problem that is the risk isn’t so big that it happens to everyone. Just think if everyone who invested money into the insurance pool had a car that got stolen, the insurance company wouldn’t be able to pay everyone out lots of money. Insurance companies spend huge amounts of money paying risk analyzers to work out how much risk is in place. They also pay an effective legal team to stipulate good terms and conditions so that clients don’t take advantage of the insurance company by making false claims.

Of course the bigger the company and the more clients it is, the more likely it is to be able to offer cheap insurance to the buyer. The more people that pay money into the pool, the bigger the pool of money becomes.

Well known companies are also able to offer cheap insurance, because they have a far bigger marketing budget, so they can reach more people and potential clients. It s also good to go with a big company, because they are more likely to be able to pay you out. They have a reputation to uphold.

On the other hand, big insurance companies have very good legal teams, so they might have to get out of paying you, by referring to small print in the contract that you may not have seen. So whenever you buy cheap insurance be sure to read the small print.

It is easy to find cheap insurance nowadays. Many companies are offering great deals. And a simple internet search will have you face to face with insurance quotes in no time at all.

Insurance is available in all sorts of areas. You can get insurance for your possessions such as your house, car or boat. You can also get health insurance or travel insurance. Some Insurance companies offer cheaper insurance packages to women. Some health insurance companies will not cover you if you have pre-existing medical conditions. You also get cheap life insurance or funeral plans.

Some people may want to insure their body parts, for example a hand model may insure her hands, because if she no longer has them she cannot work. You can basically find someone to insure you for just about anything. When you make a deal with an insurer, you are basically saying, in exchange for paying you a small fee, you will take financial responsibility for me if the stipulated event occurs.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance Quotes

How does your decision to compare cheap insurance quotes on the internet help you save precious time and money? The insurance market has become so competitive that it is impossible to identify a single insurance company as the best one around. There are many variable factors including the type of insurance that one wants, income and lifestyle of the individual, the asset that one wants to insure and the amount of premium that one is prepared to pay. In such a scenario, one cannot blame an individual for opting to compare cheap insurance quotes instead of entering the confusing world of insurance analysis.

How do you save money when you compare cheap insurance quotes? If you opt for quotes comparison, chances are very high that you will quickly identify the cheapest and most beneficial insurance policy for your life, car, home or any other asset. You will get a clear tabular analysis which will tell you how much one has to pay for each and every policy under consideration. If you do not compare cheap insurance quotes, you will have to prepare a comparative statement manually. This is next to impossible considering the fact that the average individual is rarely, if ever, conversant with how insurance policies work.

Another reason why one should compare cheap insurance quotes is that it helps save a lot of time. Getting quotes online helps you get all the information you want in a jiffy. You need not visit each and every insurance company’s office just to compare cheap insurance quotes. You need to state the amount of coverage you want and the amount of premium that you will have to pay will be flashed on the screen instantly. You can also get quotes through the telephone. In either case, a lot of time and effort shall be saved. If one considers the gas that one saves by avoiding visits to numerous insurance offices, the benefits of these free insurance quotes become even more significant. Never again will you have to take time out of your busy schedule to complete insurance related paper work. The web will help you take care of all that.

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance

Before the invention and wide accessibility of the internet, people had to call around to compare cheap insurance quotes. They could spend hours of their lives on the phone only to find out that the best policy for them was the first one they called. They would then have to call the office back and go through the explanation again. Once they did they still had to go down to the local office and sign paper work and make a payment before they were insured.

Thankfully, times have changed and people don’t have to spend hours on the phone just to find the best rate. Logging on and going to your prospective insurance company takes a lot of time too. So how do you compare cheap insurance quotes to get the best deal on your car insurance? Just go to your favorite search engine instead.

By doing a search to compare cheap insurance quotes you will find a list of sites that offer multiple comparisons right on their site. Generally, these sites are not affiliated with any specific insurance company so you can be assured an accurate comparison.

It’s simple to compare cheap insurance quotes this way. All you have to do is input your information one time. Set the restrictions for coverage type and deductibles and hit the compare/search button. Within seconds a listing of all the major insurance companies will be appear on your screen. You can scroll through them and find the one that has the best coverage at the best price for you.

Often these sites will allow you to purchase insurance directly from them and offer discounts for doing so. By comparing cheap insurance quotes on line through one of the sites will save you time and money.

If you prefer spending endless hours on the phone just to get the best rate go right ahead. Using the internet can take the hassle out of buying car insurance. Who needs another headache when all you’re looking for is the best coverage in your price range?

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Comparing Cheap Insurance Quotes – The Best Trade Off Between Premium and Deductible

Shopping in general involves a lot of decision making. You have to be even more careful and use more analysis when buying insurance irrespective of the type of coverage you are looking for. You have to get an affordable deal that offers sufficient coverage. The best way in which you can do this is to collect as many cheap insurance quotes as possible. You can get this job done in no more than half an hour if you use the services of an online provider that gives you a bunch of offers from different insurers for free.

The more difficult part comes next. You will have to compare the different cheap insurance quotes you have obtained. It is essential for you to look for the most affordable of all deals. Apart from analyzing the rates you should check whether the insurance company offers any discounts that you might be eligible for. More importantly, you have to decide on the trade off between the premium and the deductible you will have to pay. Setting these two costs correctly will allow you to save a lot of money and to manage your budget more efficiently.

The premium is basically the fee that you have to pay annually or monthly for the coverage you get. In case you make a claim on your policy and the insurer approves it you will have to pay a deductible. It can be a set sum, but in most cases it is a percentage of the cost of the claim. You should also keep in mind that with health insurance plans the deductible is fixed and has to be paid once a year. Generally, the higher the deductible is the lower the premium is and vice versa.

You can save a lot by increasing your deductible. This is particularly beneficial when you buy auto and home insurance policies since you will have to incur this cost in an event that may never actually happen. At the same time everything is possible. Thus, it is best for you to set a deductible that you can afford to pay it at any time. You have to decide on how much you would want to increase this cost depending on a number of factors.

The main one is the premium. Generally, the experts recommend to any buyer to accept as high premium as they can comfortably afford. You should do some calculations in order to decide how much of your monthly income you can set aside for insurance. At the same time you have to take into account your savings. They will allow you to determine how much you could afford to take out of your pocket if you made a claim today. If this sum is not very large, you may think twice before setting a way too large deductible.

Overall, it is up to you to decide on the best trade off between premium and deductible. This is an individual decision that you have to take when comparing cheap insurance quotes. You have to make your choice by taking into consideration all relevant factors.

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