Payments and Cash Management

Watch this video on cash flow management.

In business, cash is always the king. With this in mind, having good cash flow for your business or any other venture is important for the growth and sustainability. Businesses owe their success from a positive cash flow. You cannot get profit without cash. This means there must be good balance between the money coming in and the money coming out as expenses. Good and profitable investment depends on managing the business cash-flow effectively.

Managing effectively

For any person to manage the cash effectively, the following tips come in handy. » Read more…

Life insurance will be very useful for the people who are left behind when someone dies. The purpose of a life insurance policy is to ensure that the deceaseds family can retain the lifestyle that they were accustomed to living while the main breadwinner was alive. Without a life insurance policy that was meant to cover the main breadwinner’s salary for a pre-determined number of years, the survivors may have a difficult time making ends meet.

It has been the case that when the person who supported the family financially died, the family eventually lost the house. This scenario is even more likely in the current financial climate, because many people have been having difficulties making their mortgage payments. One way to keep this from happening is to purchase life insurance. After the policyholder has passed away, the insurance company pays the beneficiaries their benefits.

Life insurance is not just for the spouse that earns a salary; the other spouse who may not have a job outside of the home is also needed tremendously. If one spouse were to lose the family’s caregiver, the surviving spouse would have to replace the duties the deceased spouse performed. This may mean that the surviving spouse will have to hire a nanny and/or a housekeeper, and this will require extra money that the surviving spouse may not have. A life insurance policy would cover these types of expenses, also.

Although passing away early is a possibility, it is more likely that people will experience an illness or an accident that prevents them from working for a period of time. In this instance, a life insurance policy will not help these people, but an income protection insurance (IPI) policy would. This type of policy is also known as long-term disability insurance, and it can be purchased from a private insurance company.

Once policyholders have been injured or fall ill, the IPI policy pays them a portion of their salaries while they are incapacitated. This insurance policy keeps people from falling into debt as often happens when there is an injury or an illness that prevents them from earning their salaries.

» Read more…

A solution that is MUCH fairer that has a MUCH better chance of working!

» Read more…

Discussion of why Fractional Reserve Banking is a subsidy to banks and allows them to arbitrage the yield curve:

» Read more…

Payments are what we have too many of, and cash management is what we don’t have enough of……or at least that is how I explain it to my clients requesting credit counseling advice.

Cash management is a skill. It is like any other skill we acquire in life. With a little bit of practice, and a sense of determination, and a great deal of patience, you can master your financial issues and truly take control of your monetary situation.

You may be curious how to take control. A cash flow plan is the first step. You need to ponder where your money actually goes. You really need to be completely honest with yourself. You need to examine where every single dollar that you earn is being spent. Each amount should be allocated to a general area such as food, insurance, medical needs, automobile expenses, pets, children, education and the like. From the broader list, you need to subdivide the broad-based category so that you have actually fine-tuned, dollar by dollar, the outlay from your take home pay. Don’t forget areas like clothing, tobacco products, alcohol, and the occasional ice cream sundae, hair cuts, or toiletries. Don’t forget your pets or children. Both are expensive to take care of and nurture.

Build in a category for ‘blow’ money. That includes the occasional candy bar or newspaper that you pick up after work. . When you are finally finished, your total income minus expenses should equal zero.

Don’t be surprised if it doesn’t equal zero at first. I told you this was difficult. You may need to go back and do additional adjustments.

This entire process may take several days to complete. Now comes the difficult part of analyzing where you can make adjustments and still have a happy existence with the things you value the most still remaining on your list.

The goal is to have something to add to one final category, which is savings. That is the key to cash management. Payments are made, cash remains, and objects desired are saved for in a conscious plan that is not only beneficial to you and your family but also brings a sense of personal accomplishment to you as you get a grip or handle on your own fiscal spending.

» Read more…