Money Management is the key to making sure that you have your finances secure and well managed when it comes to expenditure. We live in a world where there is a cycle on receiving income and then having to spend. The cycle does not allow us to save much or in some cases being able to afford to buy the things we require in our daily life. The key to money management is making sure that you know what your expenses are so that when you receive your income you can manage this against it. Many people overspend when they do receive income and sometimes this could be the cause of not having enough money to pay for other goods and services.
Making a spreadsheet for yourself is usually the best way to records what is coming in and what is going out. You can do this on a daily basis or monthly, whichever is the easiest for you to note down. At the end of the year, you can then compare this and look at what targets you can set for yourself for the following year in terms of managing expenses against your income.
We are living in a world were borrowing is rapidly increasing, whether this is from the banks or any other sources the fundamental thing to think about is how this amount will be paid back to the banks. If for example, you need a bank loan to finance a business or a new car or for house renovation you must think about how you will be able to afford the repayments on that loan and will also need to think about any interest that will be added to that loan which will make your repayment even more.
The best way to calculate how much you intend to borrow from the bank will be to look at your affordability on repaying as well as how much you intend to borrow and over which period of time you wish to pay this back.
In conclusion, borrow what you could afford to pay back. Do not borrow an excess amount of money and get yourself in a situation where you are unable to repay the banks and therefore, as a result, you put yourself in financial difficulties.
All businesses need insurances in order to operative and trade, without having insurance the risk of not being covered by certain rules and regulations is extensive, for example from workplace injury to accidents, liabilities the business that operates in an office environment will have to look at a cover for these aspects.
Depending upon the business and its needs the business will apply for insurances to cover them for the content of what they are required to be covered for. An example we can look at is of an individual who is a limited worker he will require professional indemnity insurance alongside public liability insurance, if he is on site at a company we will require employers insurance liability. A sole trader will apply for business liability insurances so if anything goes wrong within the business they are covered for replacement and content. So it is important to understand that all business which operates whether it’s a large cooperation or limited company or even a sole trader the businesses will need insurance to cover themselves. Insurance can be costly depending upon what you insure and how many policies you take out, but the outcome will be very secure for your business as it protects your business in the long-term.