American Money

A bank going on a bank holiday even for just one day sends its depositors into panic mode. A bank holiday, after all, is a sure ball indication that the bank is experiencing a financial crisis and might be going bankrupt.  With the global economic crisis, more and more financial institutions are crumbling, sending them and many of their depositors into financial ruin.  The depositors hardly hit by these situations are the ordinary people who think that entrusting their hard-earned money to the care of banks and other financial institutions is the safest thing to do.  After all, they believe that their money is not only safe, it also earns.

So how does one avoid such scenario? How does one protect one’s money? How does one know which bank or savings and loans association or financial institution is the safest to put one’s money in? In short, who to trust?  Read more... (319 words, estimated 1:17 mins reading time)

For some people the idea of budgeting is very similar to the idea of dieting. The idea is a good one, and we all understand the need for it, but really believing in your need to budget is something a little different. When you believe there is a need to budget, there is a much stronger likelihood that you will actually stick to your budget.

This is where things are a little like going on a diet. Some people will make a declaration that they need to lose weight, and will jump onto the first diet they come across to achieve that goal. The problem is that if results are not seen immediately, the diet sometimes gets put aside, and normal eating habits resume. Much the same can be said for the personal budget.

We live in tough economic times, and there are not too many people that have not, or will not be affected by the global crack down on credit. This is extremely difficult for people who are used to living day to day on credit, as money is harder to come by. In recent years we have seen an increase in the number of companies setting up to offer pay day loans, and this is a sign of the times. Of course there is a need for short term unsecured funding such as pay day loans, but that does not mean these loans are suitable for everybody.  Read more... (508 words, estimated 2:02 mins reading time)

Given the tough economic times, sometimes insurance is something that families have to give up in order to make ends meet. But you don’t have to cut it completely in order to save money: it’s actually the right time to think about renegotiating your insurance or to get a new one altogether. And if you shop smart, you might even get rebates on car insurance, travel insurance and health insurance!

First, you need to determine whether you need home insurance or only renter’s insurance. The difference is if you own your house, thus the building, or if you rent. If you are a renter, you only need renter’s insurance to protect your furniture and your personal belongings. You don’t need to insure the building; that’s your landlord’s responsibility. Of course, if you own your house, a condition of your mortgage will be to have a home insurance. A home insurance insures both the immovable property and the objects inside it. You should make sure that your home insurance always covers the current value of your property. If you have made extensive renovations, or if you added security systems, you will want to get your insurance up to date. Extensive renovations will obviously increase the value of your home, so if your insurance isn’t up to date and something happens, the whole value of your property won’t be insured. If you have added a security system, it might help reduce your premium for theft, at least. Don’t forget any detached buildings on your land, such as sheds or detached garages, as they need to be insured too.  Read more... (498 words, estimated 2:0 mins reading time)

Maximizing cash flow is like telling a horse to gallop. You need some idea where you’re going, and make sure you stay on the horse in the process. Depending on your type of business, you will have a few “cash crop” products or services which are natural extensions of your core business. This is nothing like the “debt collection” approach to business operations, where you have to stretch your resources to cover everything at once. Quite the opposite, it creates resources.

Cash flow generation basics

Before we cover anything else: The classic mistake of businesses trying to generate cash is to get tangled up in areas where they lack expertise, or where the new operations don’t mix well with core business. Just don’t do those things. The risks include waste of time, staff and money which could be better used where you know how to make money, and that’s not including potential losses.

Every business has a few particular products on its inventory which carry the load of the business. These are the products which make the business pay its way. They’re good sellers, they’re popular, and they are definite winners in your market. Similarly there’s always a few services which are load-bearing business operations.  Read more... (552 words, estimated 2:12 mins reading time)