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Financial Realities Women Must Face

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In today’s society, men and women are supposed to be equal. We do have to face the fact that the word “supposed” is the key here. While it is the ideal situation, it is not always the case. In terms of finances and financial planning, women need to realize certain things. I just read a very thought-provoking article on this topic written by Marci Alboher, and it is worth sharing with you guys. She writes that women should focus on finances for the following reasons.

1. Women earn less than men. While this is not always the case (I know a lot of women who earn more than their husbands), the numbers support this. It may be due to various reasons – from career choice to wage gap. Bottom line: women need to deal with the fact that they might not have as much money to play around with as their male counterparts.
2. Women engage in paid work for fewer years. Again, the reasons vary, but one of the main things is that women take more time off of work. They get pregnant, they need to take kids to school, on trips, or to the doctor. This, of course, affects how women can save for retirement.
3. Women live longer. This is a well known fact, and women have to realize that this requires more in terms of resources.
4. Women still grapple with the “a man is a financial plan” mindset. This may sound archaic, but it still does happen. Every now and then, you’ll meet a woman dreaming of that prince who will take care of her.
5. Women are not encouraged to negotiate their true worth. Nothing more needs to be said, huh?

Bottom line: women should start planning their financial future NOW.

Tightening Your Belt Need Not Be That Hard

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If there was ever a time to tighten the belt, it is now. While some people are experiencing an upturn in their finances, a lot are still trying to find ways to make ends meet. Even those who are experiencing better days will still appreciate ways to cut back on recurring costs. Let’s look at some simple ways to save money with regard to household expenses. Trust me, they work!

UNPLUG. My husband has the habit of leaving his devices on standby mode. He doesn’t like turning off his desktop computer. He leaves his cell phone charger plugged. He doesn’t turn off the AVR to which the TV and PlayStation 3 are plugged. His rationale is that they do not use much power anyway. Indeed, he has a point, but the costs from this habit can add up to a couple of hundred dollars per year! If I were you, I’d start unplugging things and turning them off when not in use.

Stock up on non-perishables. I like doing this. I buy cans of tuna, cereals, Spam, and other similar products by the bulk. When they are on sale and the expiration dates are not anytime in the near future, I buy even more. The small savings can add up over time. More so, you will always have a well-stocked pantry!

Go prepaid. If you do not use your mobile phone all that much, why don’t you try using prepaid services? This way, you will not have to pay for minutes and messages that you do not use. And even if you use your phone way too much, prepaid services can help you control your usage.

Little things can go a long way!

Rules To Live By To Gain Financial Security

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Who does not want to gain financial security? In these times, financial security is something that we all seek for. Fortunately, there are ways and means by which we can achieve a certain degree of security. Here are some rules that are tried and tested. Live by them and find yourself on the road to financial security.

Rely on cash
I believe – and many experts will concur – that learning to rely on the credit card is one reason that many people today find themselves mired deep in debt. The rule is to spend cash whenever you can, keep that plastic for ultra emergencies. More so, when you find your assets frozen for one reason or another, and you need money fast, your cash might very well spell the difference between disaster and solvency.

Don’t rely on borrowing
I think that many have learned this the hard way. A lot of people I know used to think that borrowing to make more money was a good idea. Today, they are firm believers in the idea that if you have to borrow to invest, then you might want to think twice – and perhaps more.

Don’t buy more house than you can afford
Prior to the great housing slump that we are experiencing, people normally saw houses as great investment venues. They would buy houses that are way beyond their means, thinking that they can easily sell them off later on. The real estate slump has shown how false that thinking can be. Bottom line: your house will not make you rich, but use it as a savings tool.

Hope these tips help.

Tips on raising credit management awareness

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Business solutions experts reveal that over 10,000 businesses fail every year because of late payments. It is for this reason that the Better Payment Practice Group has embarked on a campaign, the goal of which is to advise businesses to be more alert in noticing signs of a credit management policy that’s about to fail so as not to meet failure with the company they have failed and ultimately throw away the efforts that were exerted in forming the company.

Here are some signs/warning signals that would mean the credit management policy of a business is in dire need of improvement:

• If a business oftentimes reaches or exceeds a bank’s limit for credit facilities, the best option is to review the company’s asset management policies and credit management
• If debtors always pay invoices outside the credit period agreed upon then the collection methods must be reviewed and improved.
• Good payers that slack off in payments may mean that the business’ collection system is also being ineffective look into this and improve as necessity dictates.
• Excuses that affect work may be a sign that the customer may have discovered the laxity of the credit system. Fix the system as needed.
• If the supplier suddenly discontinues its bills payment a point will be reached where the business will exceed the credit limit and supplies are stopped.
• The company’s credit insurance or the formulation of an effective internal system to assess credit risk can be a helpful way of protecting a company. This is particularly effective especially there is a heavy reliance on another business or has a collection of customers who have vulnerabilities with regards to cash flow.

A few reminders in keeping a good profit margin

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Regardless of what the original goal or motivation was for setting up a business it is a given that a business exists to make money. A business that generates insufficient revenue will obviously fail. With business solutions experts saying that one-third of new businesses fail within three years, it really drives home the point that managing profit margin levels is an important consideration for business owners.

What businesses charge for their products or service plays a huge role on the profitability and success of a business. Too much and a business loses customers, too little and profits will be to low to maintain operations. Striking a perfect balance between profit and price is the key to success. Here are some things company formation professionals would usually advice business owners in order to achieve this balance:

Reduction of operating costs – Try to find out if there are certain areas in your business that can still operate smoothly with reduced operating costs.

Look at the supplier base – Determine if the business is paying an external supplier for a service that could be done internally without sacrificing quality.

Look at the expenditures – An internal audit of costs will help in identifying possible problem areas.

Negotiate with suppliers – Suppliers may give your business perks and discounts if you ask for it. Also try to buy in bulk to get a cheaper price.

Look at the competition – look at your supplier’s competitors, they might offer better rates

Give incentives – offer rewards and bonuses to employees/staff who surpass sales targets, and also give incentives to customers who bring in new clients.