Is Recession Inevitable? How to Prepare Your Personal Finances for the Possibility

Recent headlines on the American economy have been rather grim, with a variety of key indicators showing a slowing in overall economic activity. These developments have caused many financial experts to warn of the possibility of a serious economic downturn in the near future, some predicting deep recession in 2008. While the headlines are often focused on the effects of this possible recession on business interests and Wall Street, individual consumers also feel the pain of poor economic conditions. With growing indications of a possible recession on the horizon, the average consumer would be wise to take heed and prepare a financial defense against the potential of economic hardships to come.

Much of today’s financial news centers around the turmoil that has been created in the economy by the collapse of the housing bubble, the sub-prime foreclosure crisis, and the resulting credit crunch. These events have had far reaching effects in the US economy, as well as impacti

Read More

Students and Their Personal Finances

You have just started University or College. Money has become a huge matter because the expenses have increased. You decide to get a student loan or perhaps a scholarship but financial aid can be very complicated and there are many other students just like you. When you do have money, you lost track on when and where you spent it. So here are a few helpful hints on budgeting and economizing your way to a better lifestyle.

 Before considering the idea of borrowing money, do explore all options of gift aid possible like rewards from associations or religious affiliations. These are like mini cash aids. One association might give you 100 dollars, another perhaps 50 dollars. These small amounts can add up to a big one.

 Spend some time at the beginning of the course semester; by the time you get used to your daily routines, you can plan your finances. Have a record comparing your income and expenditure. Plan on how to maximize your income and to minimize yo

Read More

Doing A Personal Financial Assessment

In order to reach the top of the real estate investing mountain, you’re going to want, and need to utilize all the tools available to you in your financial tool belt. While you can theoretically build a house with just a few tools, the quality of the house can suffer if you don’t have certain specialized tools at your disposal. The same holds true when you’re trying to finance your real estate transactions.

First, a key truth in real estate: You don’t need to have a sterling credit record or access to a ton of cash in order to make a fortune as a real estate investor. But you’ll reach the real estate investing Promised Land much more quickly if you do.

Because your ultimate goal is to create a thick real estate portfolio, and a large residual monthly income that comes in regardless of whether you decide to pull yourself out of bed every morning or you choose to sleep in, you will want to ensure that your finances are in a maximum state of

Read More

5 Things to Consider While Selecting a Financial Planner

Unlike someone calling himself a CPA or a physician, just about anyone can call himself a “financial planner” or a “financial advisor” regardless of their educational background and professional experience. Moreover, not all of them are unbiased in their advice and not all of them always act in their clients’ best interests.

To ensure your financial planner is well-qualified in personal finances and impartial in his advice, consider the following five things:

1. Planning Credentials: Having a highly-regarded credential in financial planning, such as Certified Financial Planner (CFP) or Personal Financial Specialist (PFS), confirms that the professional you intend to work with has acquired the education and experience necessary to serve as a financial planner. CFP and PFS credentials are awarded to only those individuals who have met the certification requirements of education and experience in planning for personal finances. In addition, t

Read More

What Happens If You Don’t Have a Personal Budget?

Having a planned personal budget and following it daily will surely help you meet your financial needs. Personal budget is a tool that helps you have control over your money. It gives an idea of how much you can afford for your various needs. It will enable you to determine whether a certain purchase will fit within your monetary constraints or not.

Whereas, not having a personal budget disturbs your personal financial situation. Your money goes haywire, and you will be left with no money in times of emergencies. The below article helps you understand how not having a personal budget affects your personal finances. Here are some possibilities that may occur if you have no proper personal budget in place.

You spend more than you earn
Budgeting helps you plan and track your expenses. Without having a proper budget, you tend to spend more than what you earn. There are people, who irrespective of their income levels, spend every penny they earn. Spending cultu

Read More

Why is Financial Planning Important?

Personal financial planning is important because it provides you with a method of organising your financial tomorrows for yourself and is unreservedly about planning for the unforeseen and empowering you to have the independence to handle unpredicted events in your life. Successful personal financial planning is therefore, extremely important for anyone who wishes to stay ahead of their finances.

Doubtless personal finance is a demanding subject to grasp and comprehend fully and for that reason an individual as a matter of course is inclined to shy away from it, building defenses in an effort to avoid having to comprehend it’s effectiveness. However, with everything in life effort will equal reward in your courageous attempt to rid yourself of financial constraints. For many persons, your objectives in finance are to achieve financial freedoms. Having a well developed financial plan is central to prosperous personal financial future.

The next action of personal f

Read More

Accounting Ethics – The Importance of Ethical Practices in Business and Personal Finance

What is ethical accounting? The idea of accounting ethics deals with the moral and values-based judgments and decisions an accountant or accounting agency confront daily in their practice. Due to the nature of their work as communicators of financial information to business managers, shareholders, and the general public, as well bookkeeping and auditing of business entities, accountants and accounting agencies are held to the highest standards of transparency and morality in regards to their research and the information they convey. Accounting can be used as a way to study how and why a business may succeed or fail, but above all it is a public service; those who practice it must make judgments and decisions that can sometimes supersede the interests of their clients in favor of the interests of the public at large.

Failure to apply ethical standards to accounting creates the opportunity for manipulation of facts and information that, if used to mislead, could cause a person

Read More

Personal Financial Freedom

It is important for everyone to understand basics of personal finances and also effectively use them .

Any individual has two types of income . Assured income as well as income which is not assured.

Assured income is one which will keep flowing whether you are personally working or not . For example, Rentals, dividends, royalties , Interest , etc .

On the other hand income which is not assured is one which stops flows the moment you stop working. For e.g Paycheck, Bonus, etc ..

Similarly , there are broadly two types of expenses .Fixed and discretionary. Fixed expenses like , taxes, Debts, Insurance, household expenses , etc .

To achieve ” personal financial freedom ” we should be concerned about a Flow , which we can term as freedom flow . This is the difference between the Total expenses and the assured income .If the result is negative , then one can smell freedom . On the other hand if the result is positive , it implies continued i

Read More

The Smart Woman’s Guide to Planning for Retirement by Mary Hunt – Personal Finance Book Review

Money maven, Mary Hunt, returns with a new book, “The Smart Woman’s Guide to Planning for Retirement,” to help women prosper financially in the New Year and beyond. While geared toward females, men can also benefit from Hunt’s money knowledge, honed after she amassed over $100,000 in debt earlier in life; and took 13 years to erase.

“Have you had a retirement wake-up call?” Hunt asks early in the book. “I can promise you they intensify with age.”

Hunt sites a 2012 survey that found that 92 percent of women of all ages do not feel educated enough to reach their retirement savings goals.

Saving for retirement requires determination and hard work; and Hunt believes women can succeed. “If we lack confidence, it’s because we lack knowledge and desire, certainly not because we lack intelligence and ability,” Hunt says.

Time trumps all factors when saving for retirement. The sooner you start, the

Read More

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 o

Read More