E-mail :

Password :

Forgot Password? | Sign up for Free

What Great Companies Can Teach Us About Personal Finance

Posted by : Premraj | Posted on : Tuesday, August 11, 2015

Veterinary Care Financing Options

Managing your personal finances can be frustrating. You know that your finances are critically important, but managing the process can be time-consuming. Poor financial decisions can affect you for decades. Use these tips from well-managed companies to make good financial decisions.

Simple, Forward-looking budgets

While all companies create budgets, many businesses do a poor job of putting a budget together and using it to make decisions. The companies of today can teach us “how” and “how not” to create and use budgets. You can use these ideas for your personal budgeting:

·  Simple and usable: The budget should be simple enough so that everyone in the company understands it. Your personal budget should also be simple. All you really need is a piece of notebook paper. List you monthly income at the top. Down the left-hand column, create expense categories. You’ll use your budget if it’s simple.

·  Forward-looking: A good budget looks forward. It takes information about spending and makes changes for the future. Sure, you may have made financial mistakes in the past. You budget, however, should focus on the future.

·  Checking your scorecard: Great companies compare their actual results to their budget. They analyze variances, which are differences between budgeted and actual amounts. Good businesses use this analysis to make improvements. The Cane Bay Partners LinkedIn page mentions the concept of scorecard development. When you compare actual results to your budget, it’s similar to giving yourself a score. Use this variance process with your personal finances.

These tips can help you get the most out of your personal budget.

Controlling costs

Forbes mentions that great companies control costs. Controlling costs requires constant vigilance. This means that a business must review their budget variances and act on them. If actual spending is more than budgeted, for example, the company may renegotiate prices with a vendor.

The idea of constant vigilance applies to your personal budget. If you don’t stay on top of your spending, your expenses increase very quickly. This is particularly true for the variable costs in your budget.

Say, for example, that you budget $150 a month for entertainment. During the first two weeks of the month, you spend $140 on movies and dining out. If you don’t check your spending until the end of the month, you’ll certainly go over budget.

Both companies and individuals need to review spending frequently to control costs.

Free cash flow: Flexibility

24/7WallSt points out that great companies generate a large amount of free cash flow. Free cash flow is the cash generated from operating the business, less required cash payments to buy or replace assets.

Say that you own a restaurant. Your business generates $500,000 in cash flow from operations (making and selling food). You need to pay $200,000 to buy new ovens and some furniture. The $300,000 in remaining cash is your free cash flow.

Investment analysts perform a great deal of research on how companies generate cash, and how they use cash to generate profits. Cane Bay Partners Facebook page refers to a company that analyzes cash to determine a firm’s investment potential.

Managing your personal cash balance

For an individual investor, free cash flow represents the cash you’re able to invest in savings. Funding a savings account is critically important. Your savings balance can help you pay your expenses when something unexpected happens, such as a job loss. If your savings balance gets large enough, you can move dollars into stock or bond investments.

Managing your personal finances can be time-consuming. Use these tips to create a budget, control your costs and maintain a savings account.

Comments : Post a Comment | Category : Budgeting, Money Advice, Personal Finance | Tags :
Financial Solutions

Every now and then a little extra cash can prove to be really useful. Your monthly salary may tide you over most months, but what happens when something crops up? It could be a special occasion you have to go to, or perhaps emergency vet bills? Maybe you need to save for a dream wedding [...]



Regardless of what you understand about investment, you probably already know that there are risks involved. Investment is all about risk and reward. Some investments, like bonds, have virtually no risk associated with them. They’re based on a fundamental aspect of a nation’s finance system. The only way an investor would lose his or her [...]


HVAC Maintenance

Upgrading your HVAC? Want to save money but also be comfortable with your new system? Who doesn’t? Here’s how to get it done. Upgrade The Whole System When you buy a new system, upgrade everything. The problem with getting one component replaced and leaving the rest as is because it’s still working is that mismatched [...]


office printer

Assessing and managing your printing costs could identify and generate savings of up to 30% o here is a look at some simple ways to reduce your printing costs whilst being able to increase productivity at the same time. Equipment inventory A good starting point to identifying your printing costs is to create an equipment [...]


Money tips for the Small Business

If you’re like most businesses, you don’t have a huge marketing budget. Here are some ways to build a brand without busting your budget. Get Good At Writing Have you ever thought about writing for a trade publication? What about writing to a general audience? If your company doesn’t have a blog, consider starting one. [...]


Financial Solutions

Let’s admit it is much easier to spend money than make it. In this material world, it is crucial to have the ability to discern what is worth spending on and what is not. This forms the basic guiding factor of managing personal finances. The rising level of consumer debts and declining saving rates shows [...]


Air Conditioning

When you meet with an HVAC expert to discuss a new system, the first thing on your mind is probably “how much is this going to cost me?” But, what you should be thinking is “what will this cost me over the next 10 years.” Here’s why. The Initial Install Vs The Operating Costs The [...]


HVAC Maintenance

Whenever your HVAC system is running, it is accumulating dust and dirt that will inevitably affect its level of performance and efficiency if it is left unchecked for a period of time. The fact that your air conditioning unit can lose at least 5% of its operating efficiency within 12 months due to this buildup, [...]


Buy cell Phone

It seems like everything is digital and electronic these days. And nothing is meant to last. Devices are so complicated that there’s almost no way that all the teeny tiny components can keep doing their jobs. And when one little part fails, the domino effect takes over and before long you’re looking at the blue [...]



Resource : Click here for the full size version. For centuries, Forex trading was something that was out of reach for most people. However, thanks to the technological improvements of these last two decades, trading currencies has become much easier to achieve. Indeed, anyone who possesses a computer and has access to the Internet can start trading [...]


Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video