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Archive for December, 2011

Keep a Financial Management Journal

December 19th, 2011

Do you feel like you are out of control when it comes to managing your finances? Do you run out of money every month and wonder where it all goes? Managing your finances is a big responsibility. If you are not good at managing your finances than you might find yourself getting into debt or not being able to pay your expenses. One way to manage your money is to keep a journal.

How does a journal help? It keeps you accountable. Many people that diet are assigned to keep a food journal. They have to write down everything they eat. This holds them accountable and makes them aware of how much or how little they are eating. When you keep a financial management journal, write down everything you spend money on and all the money you earn.

By writing down all of your earnings and all of your spending you will begin to see where all of your money is going. You might notice that you are spending way too much money on food or wasting money on things you don’t even need or want. By having it all in writing you can look it over and decide what expenses you can get rid of and see what a big difference that will make.

Another thing to add to your journal is your budget. Create a monthly budget and put it in your journal. Write down your expenses and income for the month and see how close you stay within your budget. This is a good place to write down financial goals, such as a goal to pay of a credit card or a goal to save up for a new car. You can look at these goals daily and decide what expenses you are willing to cut out that will help you to save this extra money.

Your financial management journal will help you be more organized in your life and also help you have greater control of your finances. When you are in control you will make better financial decisions and avoid getting unwanted debts. Take responsibility and hold yourself accountable for the way you spend your money. It will take time to get used to writing everything down in a journal, but you will get used to it and you will be grateful for the difference it will make in your life. So get a journal now and start writing!

By Tabitha Wellman

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Tags: financial decisions, financial goals, food journal, Personal Finance, management journal

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Financial Management and Budgeting in Business

December 19th, 2011

Importance of Financial Management

Finance is a key functional area of business management. This area is commonly referred to as Financial Management. The term defines the achievement of key financial objectives by making investment and financial decisions. Essentially, it is the management of all the processes associated with the efficient acquisition and deployment of both short and long-term financial resources. Financial Management assists an organisation’s management to reach its financial objectives such as the creation of wealth, solvency, liquidity, growth and return on investment achieved through a process of financial planning, control and decision-making.

Financial Control

Financial control consists of different strategies to manage finances necessary to achieve the primary purpose of every business; which is to earn profit. Budgets are the traditional financial control method and provide a measuring basis which performance can be assessed. By engaging in a yearly budgeting process a business can make plans and forecasts for the year ahead. Control action should be taken when actual performance appears not to be matching the outline of the budget. Therefore by monthly monitoring of expenses, controlling methods can be put into place when expenses becoming higher than figures stated in budget (such as spending cut backs or extra working hours). And by determining the reasons why figures do not match the yearly budget plan, a business can therefore make necessary plans for this not to occur in the future. Monthly monitoring of expenses is another example of a financial control. Such data includes cash balance, total wages costs and hours worked key sources of income, unusual or above budget expenditures. » Read more: Financial Management and Budgeting in Business

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Tags: budget expenditures, Finance, statement of financial position, spending cut, process of financial planning

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Student’s Financial Management

December 19th, 2011

Yogyakarta or Jogja is well-known as the city of education since it has many reputable universities and schools and other facilities that support learning environment. Thus, most people from all over Indonesia are interested to continue their study in this city. For students who come from another city, they commonly rent a room in a boarding house or hire a house with their friends from the same city, or stay with their relatives.

Surely for ‘migrant student’, learning to be independent is a must because they are now away from their parents’ supervision. It means they have to manage themselves for example managing their time, keeping their companionship on the ‘track’, and also managing their financial.

For some rich students, it is not easy to manage financial thing since they feel free to spend their money without any ‘buy this…’ or ‘don’t buy that one…’ from their parents. As a result, in the end of month their money frequently runs out. The living cost in Jogja is low and it makes the price in Jogja cheap compare to other cities. So, some of them like to spend their money to go shopping to buy either books or clothes, to travel some areas in Jogja, or even to have some entertainment here.

On the other hand, students who have insufficient money are usually more careful to spend their money to make them survive until the end of the month. Some of them cook their own food and go to the college by foot and bicycle to be economical. They sometimes look for a part-time job to help their financial.

Finally, managing money is important for ‘migrant students’ in order to make them learn how to be independent and also how to be responsible in handling and spending money. It is useful then if they have list of ‘urgent needs’ and ‘wants’ so they can have priority by keeping in mind the main thing they have to buy.

By Boya Fernando