7 Rules to Better Manage Your Money

 Every game has rules; managing and saving money are no different. Rules are a good thing; they set boundaries and keep people out of trouble, provided the rules are followed. By adding the rules that follow in this article, you can bet that your financial situation will improve. Here are 7 rules to to manage your money more wisely.

1. Needs vs. Wants 

If we all limited ourselves to our true needs, most of our money problems would disappear. After all, we don't really need much: food, water, shelter, and some company. At the same time, there are a variety of ways to satisfy those needs. For example, we can choose to eat beans every night or we can have a steak. There's also a difference between a tent and a $5 million home. 

Most material things in this world are entirely optional, and most of us have limited resources. Make sure you're not buying more than you need.

2. Don't spend new money 

New money is a raise or a financial windfall. You were already surviving without that money so don't expand your lifestyle to accommodate your new income. In general, we are not miserable because we don't have a new car or a bigger house; we are miserable because we can't pay our bills on time. Invest all the increases in your income and someday you can buy all the stuff you want. 

3. There is always an opportunity cost. 

Every decision has a cost, even if it's just the loss of other options. Buying a new car means the money for the car payments can't be used for something else. Going to college can cost four years of income. Always look at what you're giving up and decide if it's worth it. 

4. It's all about supply and demand. 

Consider that our income is largely determined by supply and demand. A brain surgeon makes a lot of money because when her skills are needed, the demand is extremely high. There are also relatively few people with her skill set. If you're easy to replace, your income is probably not as great as you would like. Always look for ways to make yourself irreplaceable. 

5. Understand risk. 

T-bills don't pay very well because the risk is minimal, perhaps next to zero. Stocks, on the other hand, pay much better on the average. However, stocks are more risky, too. Always consider the risk to your money and compare that with the expected return. Ask yourself, "Is the return I'm likely to get worth the risk?"

6. Understand the time value of money. 

Would you receive $100 today or $100 in 5 years? It is far better to receive $100 today. You could invest it or save it and start earning interest. Be sure to consider the time horizon for your investments. Here is some more information on the time value of money. The math can get complicated, but don't give up! 

7. Compound interest is an amazing thing. 

If you invested a single penny and were able to double it every day, in a month you would have over $10 million! The key is to leave your investments alone; don't take the money out and spend it. You'll be surprised just how quickly it can grow if you can just leave it alone. 

Anyone that keeps these 7 rules in mind will be handsomely rewarded in the future. If you're not already following all the rules, pick one and start today. Add a new rule each month until you're fully up to speed. Your bank account will thank you.

Melissa Wood contributes as an editor at RateSupermarket.ca. Obsessed with finding small ways to save money every day, she enjoys sharing her frugal lifestyle to the MoneyWise Blog. Read more about Melissa on her Google+ page.

The Different Types Of Businesses And The Key To Profit

The organization which involves trade of services or goods or both to the consumers is called business. Business model and business plan plays a very important role in a business operation’s outcome. Capitalist economies predominate most of the privately owned businesses. State owned or nonprofit businesses also exist. When multiple individuals own a business it is called a company.

 

Ownership in developing the business

There are different forms of business ownership such as Sole proprietorship, Partnership, Cooperative and Corporation.

When a single person owns a business for profit it is known as a sole proprietorship. He can run the business alone or others can be employed to do this job. Businesses owned by 2 or more persons are called Partnership. General Partnership, Limited liability Partnership and Limited Partnership are the three classifications of partnership business for profit. Limited Liability Business in which members have a separate and different legal personality is termed as a Corporation. Both privately owned and Government owned organizations exist. A for-profit organization is actually owned by the shareholders. A board of directors is elected by them who hire the managerial unit of the corporation. It can be both publicly or privately owned. A Cooperative is also a limited liability business. There are members who run the business unlike corporation which has shareholders. A cooperative can be both non-profit and profit. It can be classified into worker cooperatives and consumer cooperatives. 

Classification of Businesses

Businesses can be classified to many forms such as Mining and Agricultural business, Financial business, Real estate businesses, Manufacturers, Retailers and Distributors  Service business, Information business, Transportation and Utilities. 

Elaboration for business

Raw material production such as minerals and plants are the main concern of Mining and Agricultural businesses. Companies like banks which invest and manage capitals for earning profit are known as financial businesses. When profit is generated by renting, selling or developing properties such as residential homes and lands, then it is termed as Real estate businesses. The production of products from raw materials such as the making of goods like pipes or cars is made my Manufacturers. Retailers and distributors provide sales and distribution services. It helps the manufacturers in the sale or distribution of the products made by them. Service businesses provide goods and services to the consumers such as any business organization or government organization. It earns profit by putting labor and service charges. Resale of intellectual properties such as package software, movie studio for generating profit is carried out by Information businesses. The transportation business provides transportation of individuals or goods and they earn profit by applying transportation charges. Sewage treatment or electricity services fall under the Utility businesses.

Management in studies and business

Management is the study of effective and efficient business operation. The different branches of management include marketing management, strategic management, financial management, human resource management, operations management, production management, information technology management and service management. Owners are engaged in business administration indirectly or directly through manager employment. Three components namely human resources, capital or tangible resources and financial resources and are administered by hiring managers or owner managers. It constitutes worth or value of the businesses.

Author Bio:
Austin Richard is an IT professional and instructs EMC Certifications. He likes to write for different blogs on different interesting topics. He is E20-533 Exam qualified instructor.

Some Legal Needs that Seniors Need to Consider

When you’re in your 50s or 60s and looking forward to the day you retire, you think that you can finally kick back and relax after spending more than half of your life working. But there are so many things you need to settle first like important legal documents.

Living Will 

When you hear the word will, it is usually associated with death, which is something people rarely or even avoid talking about. We don’t like to be reminded of our mortality and often times evade this topic when it comes into a conversation. Still it doesn’t change the reality that death is inevitable and we never know when it will come for us. This very unpredictability is the reason why it is important to set legal affairs in order at the earliest possible time. One of the things one can do to prepare is to have his lawyer draft a living will. 

A living will is different from an ordinary will. The former is a legal document, which is normally used to express one’s wishes when it comes to medical treatments that may prolong his life. The latter is a document with instructions on how you want assets--property and estate--to be divided after you have passed on. A living will is akin to an advance directive that will take effect if ever one becomes terminally ill. It will help inform the health care providers and even family about the desired medical treatment in case a person has become incapable of speaking for himself. 

Living Trust

A living trust is often confused with a living will but they couldn’t be more different. The latter has more to do with your wellbeing and health and serves as a guide for your family and health care providers on how to proceed in the event you become incapacitated. The former is a legal document that is akin to a will in that it will contain your clear instructions on how you want your assets to be distributed among your family and relatives. 

The difference between a will and a living trust is that a will only becomes effective--if and only if--the grantor (yourself) has passed on and the will then enters into probate. Also called “inter vivos trust”, a living trust is a trust created while a person is still alive rather than one that will created only after he or she dies. The process of probate can be time-consuming, not to mention costly, however, if you choose to have a living trust, then it will bypass these extra expenses. 

Small Business

There will come a time--maybe not immediately--during your retirement when you will realize that you want to do something. You might want to start a new business that you can manage on your own or with a small handful of family members. When you’re done pondering on several small business ideas and deciding which one is best for you, you will need to gather requirements--including some legal documents--that will help you get started so you can operate your new business. 

When you’re a senior, I think one of the best things you can do is to prepare yourself for whatever will come in life--be it adventure or challenges. Preparing legal documents ahead of time will help prevent disputes that may arise between family members on distribution of assets. To save on exorbitant lawyer fees, you can avail of prepaid legal plans, which have very budget-friendly monthly fees. 

About the AuthorBased in San Diego California, Tiffany Matthews is a professional writer with over 5 years of professional writing experience. She also blogs about travel, fashion, and anything under the sun at wordbaristas.com, a group blog that she shares with her good friends. In her free time, she likes to travel, read books, and watch movies. You can find her on Twitter as @TiffyCat87.

Importance of Credit Cards in the Context of Human Trade and Finance

Finance is a broad concept which can actually be placed under two concepts, one as the study of how money is being managed, and another is the allocation of resources efficiently. Finance is a very important terms in the aspect of mankind, as human being just cannot exist on earth without finance. Each and every entity on earth that is being managed or run by man needs finance, be it a micro concept as, functioning of a single household, or in the broader aspect as the functioning of entire government or large business firms, all need finance to develop and grow as well as exist. 

Origin and Types

Origin of the term finance can be traced back to the time of the development of human civilization, however it can be found as a very popular word of the eighteenth century, meaning of which is management of money and wealth. Later this term has evolved into a greater extent, not only in the aspect of its practicality or academic importance, but also it is regarded as one of the important branch of economics. Finance is thus important in overall growth and development of human being. Finance can be also categorized in three forms according to the importance and uses such as public finance, personal finance and corporate finance.

Evolution of Payment and Transaction

With the advent of science and technology, human have made large progress in the field of science and technology. Not only in the area of science, have they moreover developed as most advanced species on earth. With the fusion of technology in every sphere, financial transaction has also evolved in more advanced from. Gone were the days of barter system or paper money. Now transaction is made largely through the process of plastic money or electronic payment. The growth of technology has revolutionized the procedure of money payment with e-money, debit cards and mobile payment gaining more popularity. 

Importance of Credit Cards

It is often said that if the outstanding balance is paid regularly at the end of each month, and if the expense is controlled efficiently, Credit Cards are the best source of money payment and making useful transaction. Credits Cards are very important tools dealing in the concept on finance and hence its benefits can be numerous.

1. Helps in resolution of Disputes – Credits cards are more secure and active than debit card in terms of any fraud transaction. In debit cards money may be out of your bank account by the time you come to know, but credit cards are safe in the way that in case of any fraud transaction, money remains intact.

2. Get More On Payment- While making any payment through credit cards, there are various schemes and offers available on the credit purchase, such as money back guarantee, money refund scheme, or bonus points, or even surprise gifts. These are not available on any other mode of transaction.

Conclusion

Thus credit cards offer plenty of benefits one can avail of than any other mode of payment or transaction. Finance is therefore very important aspect of human civilization and without it the entire society just cannot exist. Importance of credit Card is also inseparable, as it is one very important mode of money transaction and payment, thus becoming one very important tool of human trade and finance.

Author’s bio – Alisa Martin has written several quality articles on Logbook Loans. She suggests her readers to visit Logbookmoney.com to avail more information on the same.

Insurance – A Partner for Today and for Tomorrow

insurance (Photo credit: Alan Cleaver)

To be insured is to be ensured that in future no matter what the problem is financial problems can be met without a second thought. Whether it is about the bread earner who is no more or he suffering from long term disease, insurance is about both the facts. Insurance is a partner for today and tomorrow. A family is a bread earner’s utmost responsibility. He or she aims at ensuring a safe future for their family. They strive for the best. There are two untimely things which stop them from getting what they want, those are death and disability.

Death is inevitable but saving our loved ones from its effects is possible. Same is the case with disability. Disability can disable one physically but not economically. This is possible due to two policies - the first one is term life insurance and the other is disability insurance. For a better understanding the following subheads can be followed.

Affordability

Insurance is affordable. The coverage varies. The market offers a wide range. Comparison of policy range is very important. In order to get the best deals, knowing the options is the most important thing so that we get the best of what we want.

Quotes

The next important part is finding the quotes. This could be done by filling forms from any reputed firm. This ensures getting best of knowledge of deals. A disability insurance is generally filed by the person’s company itself but this can also be approached on an individual basis.

Agents

An agent is the one who is dealing with policies etc. He is a company representative. When you choose an agent care should be taken that he is trustworthy because the claims and coverage and other details and exchange of information depend solely on him or her.

Going for the Policy

While applying for the policy certain proofs and documents are required. Few of these include identity proof, income proof etc. The documents required vary from company to company. As soon as the policy is filed the customer receives a policy number also there is a bunch of official documents clubbed with it. These are sent to the buyer to ensure that the company has made him aware about all the needs etc. Along with the policy number certain other confidential points are briefed to the policy holder.

There are several more points to be taken care of while going for a policy. The company should be reputed and all the conditions etc. should be taken into account. Also it is the duty of the buyer to make sure that he / she have supplied the company with all genuine documents. There should not be any misleading document or discrepancies in the information, which may lead to legal problems in near future. The benefits of both the policies differ widely. In one the family is the nominee and gains the benefit after the decease of the policy holder.


There are several FAQs which come into mind while going for a policy. These can be dealt and understood by referring to the disability insurance quote available on TermLife-Insurance.com. One should be very keen in selecting such things.

UK Pensions are Changing – Keep Up with the Future

Most legal firms in the UK are general partnerships, in which ownership, profits and liabilities of the company are shared between however many partners make up the firm. Other employees, such as support staff, office managers, paralegal and clerical workers are employed by the company to ensure that they can offer clients they services they need to take care of their legal requirements. Many law companies are small to medium businesses and, although they may provide their support staff with pensions, law partners are likely to make their own arrangements to ensure their future financial freedom.

This means that law partners often have to set up and administer their own pension schemes. This is fine for those who have the time and the financial nous to ensure that their later years are supported by a decent pension. However, not all legal experts are knowledgeable on the intricacies that they’re likely to meet when entering the field of finance and pensions and many of them would welcome a helping hand as they wade through this minefield.

More and more legal partners nowadays are opting to use the services of a pension provider. This way, their pension funds are managed by experts in the world of finance and investment and they are much more likely to see a good return on their investments this way. Using a professional service to manage a pension fund is the safest way of making sure that the future is bright with enough income to enjoy their later years in style.

Legal professionals usually enjoy a relatively good income during their working lives, however they may be so busy working that they don’t really have the time to enjoy all the opportunities that a good salary has to offer. This often means that they plan to retire reasonably easy to enjoy the fruits of their labours during their later years. However, in order to enjoy life to the full in this modern world, a decent pension income really is essential. The population in general is living longer and staying healthier, which means that pensions need to last for longer than they did in years gone by. This means that more money needs to be invested in order to provide the returns necessary to ensure an adequate income in later life.

In the current economic crisis, it’s advisable to get some expert help on planning for the financial future. The world of finance is changing and the UK government is planning new legislation to encourage more people in the UK to take an active role in planning for their later years. There are pension providers in the UK who specialise in setting up and administering pension funds for legal professionals. They know the money markets and bring a wealth of experience and expertise when designing pension plans that are relevant to the legal industry. Whether it’s pensions for law partners or for all the employees working in a law firm, they have the knowledge needed to ensure that retirement funds will be available to enjoy life to the full in the future.