The Importance of Personal Finance Today

Personal Finance is the application of financial principles to the financial decisions made by a family unit or an individual. It addresses many facets of financial issues such as creating a budget, how to save, financial risks and how to spend the monetary resources available over time.

In the world we are living today, Personal Finance and planning is no longer the luxury of the rich, but has become a necessary part of life. Preparing for ones future is essential and there is never a good time to start like today.

To many people, the thought of Personal Finance is like speaking a language from mars to them, and they have no clue where to start. It can be mind boggling when terms like budgets, balance sheets and income statements are spoken. However this should not sound an alarm, since most of us engage in personal finance decisions without knowing it. For instance when making decisions of where to live, which car to buy, where to take your children to school among others. These decisions have a factor of finance involved in them somewhere.

There is an emergence of personal finance advisors in the recent past, who have come up to assist people who need coaching or financial advice for a fee. They come in handy especially for those of us who don’t have strong financial background and require help.

Whether you choose to do it yourself or get the help of a personal finance advisor, there are some common basic things that one needs to look at. The order of these may vary from person to person or from one advisor to another.

To begin with, one needs to look at their current financial position. That is take a honest look at what you owe and what you own. Then you proceed on to setting your financial goals both in the short term and in the long term. You may think in the lines of the kind of lifestyle you want to have in the future. Finally and most import is to come up with a strategy or a road map that will help you achieve the financial goals set and follow them through. This could include saving and investing a portion of your income for example.

One other thing that one needs to consider is the tax element depending on which country you live in. Tax can be a major expense that most people never give a second thought to, thus ending up missing out on opportunities they have to reduce it. Most tax regimes have some incentives or relief given to the tax payer to encourage them to save or to invest in certain things. For instance, payments made towards retirement, life insurance or specific purchases such as buying a home through a mortgage. It would be prudent to investigate on the possible saving available to you from a tax perspective.

Whichever way you look at personal finance, it is vital for every one of us to take charge of our finances by avoiding common pitfalls that many have had to endure, because they never took time to consciously look at their personal finance. Are you going to leave your finances to fate or are you taking charge of your financial destiny today? The choice is yours.

Personal Finance Advisor – How to Find Online Locally Or Online

Whether you owe a few thousand dollars to the credit card companies or if you are interested in just getting your personal finances in order to ensure you don’t become a debt victim, you might consider seeking assistance from an expert. When it comes to financial planning, that expert is likely to be a financial advisor. How can you go about finding one?

If you would like to do business with a local expert, someone you can meet in person and actually shake their hand, you have a number of different options. Online business directories let you search locally and you can also just pickup your local phone book. With that said, here comes the bet part: you can ask around town. Lots of American consumers use financial experts and most of them aren’t even in debt. For that reason, ask some of your friends, family members, coworkers and so forth.

If you would like to find a financial advisor online, you will get a lot more choices. Really all you’d need to do to find their contact information is to do a standard internet search with a phrase like “financial advisor” or “credit counselor.” You will get a number of results and these results should direct you to an expert’s online website or a company website. Unlike being able to ask those you know about a local business or service provider, it is a bit harder to do online. There is always also the possibility of a scam.

It is very hard to tell when you do business with someone over the internet or even over the phone if they are legitimate or not. A legitimate financial advisor will want to see your credit card bills. After all, they can’t provide a good plan for you without knowing if you owe money and how much. When you give this information to them locally, they look, write down the number, and give it back to you. Do you really want to scan a document with your account numbers present and email it to someone who you “hope” is an expert and not a scammer? It is kind of risky.

In short, if you do have your heart set on utilizing the services of an online financial advisor, please protect yourself. This involves doing a check on the Better Business Bureau website, looking for client reviews online, and so forth. I know that I just gave you a bunch of warnings, but there really are legitimate financial advisors out there.

If you are in debt over your head, the best solution at this point is to obtain a financial settlement. However, you need a great deal of research before going with the first company willing to deal with your debts. Remember that it is imperative to get rid of your debt as soon as possible, since you never know what the economy will bring and when will it be too late to change anything.

Have You Confidence in Your Ability to Find a Commercial Finance Advisor?

It’s nothing new to consider looking on the internet to source a potential source of finance for a significant property purchase or business cash injection. Once upon a time the limit of our usage was buying a DVD or book but not now. Service driven industries are moving at the speed of light towards ‘online’ communication only, but how important is face to face contact for your business? Do you like call centres or endless form filling on the internet with more and more passwords and unique usernames? All these hurdles before you can ask a question or get a simple answer to a simple issue!

So many companies forget the old fashioned approach of ‘getting to know your client’ and ‘finding out what the client wants’; they choose to operate in what they believe is a more cost effective and efficient manner for them….but what about you? When looking to make a key strategic decision on how best to fund or raise funds for your business or for a personal investment purchase wouldn’t it be natural to want to speak to someone and to meet them face to face?

Our carefully chosen commercial finance partners are not opposed to the use of modern IT having embraced technology some time ago. The difference they say is “that IT supports us so we can support your clients and not the other way around. So even with online communication we don’t lose the personal communication we have with our clients.”

Although online communication is beneficial for all businesses looking to target a wide audience for a general purpose, with each finance application being unique, an individual approach to assessing your clients’ financials and business plan can ensure your clients get the right deal for their business.

A potential client may find us on the internet but the ethos is to always have an initial meeting or conversation with a client so that they can fully understand and appreciate their proposal.

A Personal Finance Advisor for a Secure Future

Finance is an important aspect in every individual’s life. A proper planning will easily help a person overcome all their needs and emergency situations. This is possible through a personal finance plan. Planning is important and one will have to plan in such a way that the amount that will be invested is safe and secure. With the fast paced life, it has become difficult for an individual to plan all their finances alone. Under such conditions, one can look forward to for the help offered by a personal financial advisor.

A personal finance advisor is the one who will plan all the investments on behalf of you. Depending on income, he/she will plan in such a way that, part of the amount of income or a specified amount prescribed by you will be divided into different categories as investment. The amount can find its way into stocks, properties, shares, commodity trading, foreign exchange market and bonds. The planner will plan in such a way that, a part of the investment will be made available to you when you need them and even under emergency situations. Such a process requires good understanding of the market and the right place.

The question you might face is the right person to choose or a company. There are individuals who offer their services and financial companies who provide assistance for personal finance. It is important to choose the best service according to your plans set for the future. The basic step is to chalk down what are the important needs, the events that fall in a life span and the regular expenses. Apart from this, you should also consider emergency situations where you need lump sum amount. All these things should fall under the amount that you have set aside as part of your investment.

Carry out a thorough market analysis to choose either between a company and an individual. Both have their own advantages and disadvantages. You should weigh them according to your needs. Once this step has been completed, you will be in a position to choose the best advisor. Presence of a personal financial advisor will elevate your plans to secure the future. Calculations are carried out based on the amount that you earn. This can also include your spouse income (if any). Now that you have understood the importance of personal finance and an advisor, it is time for you to look for the one who will safeguard your future and your needs.

How to Pick a Trusted Financing Advisor

Many business owners and financial executives want to ensure they can rely on an independent ‘trusted’ financing advisor when it comes to their business finances. How does one pick such an advisor? Naturally in today’s environment business owners don’t have time to waste, and if they have financial or growth challenges they are looking for someone that can bring expertise and solutions to their business.

We are constantly told that business owners are looking for a firm they can trust, respect, and has, of course, credentials.

We believe this whole area of developing a trust between the advisor and the company is a two way street. It is incumbent on the business owner to make sure the goals and needs of the company are made very clear. Business owners or financial managers should not blur the issues to the point that each party does not understand the goals and the respective roles.

When a trusted financing advisor is chosen he or she needs to be given access to the reins and information on the business and its challenges.

Business owners need to ensure that the specialist firm they are dealing with has experience either with the challenges they are facing, or the particular industry the customer is in. Many business financing challenges are industry specific, so this is not the time to be training and advisor on your business! Most people realize though that many financing challenges are somewhat generic in nature, so although an industry expertise is often helpful, it is clearly not always 100% required.

The business owner and financing advisor need to be able to have effective dialogue and communication on what the operational and financing issues are. Many times there are what we call ‘ warning signs ‘, yet in other cases companies are already clearly in trouble.

A financing advisor needs to be given information and clarification on issues related to:

- Sales
- Profits
- Currenet lenders
- Working capital issues
- Asset issues
- Future goals of the company

Naturally the above list is hardly all inclusive, but it is a solid start to the dialogue. The business absolutely has to have a handle on what the intermediate term goals are. Management needs to have a strong sense that the business advisor can assist in the recovery, and the advisor must be given the tools that he or she needs.

Both the business owner and advisor should have frank discussions around the probabilities of success and the timelines associated with that success. What’s realistic, what isn’t.

Business owners and financial executives should clearly check the background and experience of the advisor. References are of course highly recommended. Professional affiliations are of course important, but not critical. References from lawyers, bankers, and accountants are often excellent sources of information. The business advisor should clearly be indicating they have the right attitude and credentials around the business owners financing needs. It is certainly not unrealistic to have solid discussions around timelines and action items responsibility.

Ultimately business is of course people, so chemistry is important, and the business owner should have a sense they could work with the financing advisor. However, at the end of the day you don’t have to like people to get the job done ( it certainly helps though!). Credibility and experience are ultimately always at the top of the list.

All engagements should of course be documented properly re success, work fees, etc. A credible business financing advisor will of course be willing to sign any required non-disclosure document.

In summary, a trusted business financing advisor is a valuable ‘ out of the company ‘ asset to any firm. Business owners and financial mangers should choose such an advisor carefully, and pay important attention to the qualities and capabilities that advisor can bring to the table, and ultimately, the firms success.