Basic Accountng Will Help You Manage Your Money Better

It Helps to Know Some Basic Accounting

Accountant? You don’t have to be an accountant to understand some of the basics of accounting when it comes to managing your finances at home or if you run a small business. The key to accounting is that for every financial transaction, something gets "added to" an account and something gets "taken away" from an account. Also, at any given time, your assets or worth is defined in terms of what is left after subtracting out your liabilities and expenses. In non-accounting terms, this means that the money you have is defined in terms of what is left over after you pay your expenses. And if you have any upcoming expenses, they need to be reserved out of the money you currently have.

You first start by listing all of your sources of income and your assets. Your assets could include money in your checking and savings accounts. Assets can also include money that others owe you or have promised to pay. If you run a small business then this could be items you have sold but have not received payment for. These are assets. Assets will also include those that are "liquid" and those not very "liquid." By "liquid" we mean that an asset can be turned into cash somewhat easily. Money in your checking account can be very quickly turned into cash by just going to the ATM machine and making a withdrawal. However, your car is not very liquid because you would have to sell it and this usually is not a real quick process.  

So if you know what your "liquid" assets are and what your current expenses are then you have most of the information you need to run a balanced budget. Make sure if you write checks to pay expenses that you record the amount of the check and subtract it from the balance in your check register right away. That’s all there is to it. Pay your expenses but don’t let them exceed your liquid assets.

Disclaimer: The information in this article does not constitute professional advice. This article is for informational purposes only .

 Copying of Contents, in whole or in part, is permitted provided the article remains intact and unchanged. Hyperlinks and/or URLs provided must also remain active. For more information, to visit or make contact  click here

 

Basic Accountng Will Help You Manage Your Money Better

It Helps to Know Some Basic Accounting

Accountant? You don’t have to be an accountant to understand some of the basics of accounting when it comes to managing your finances at home or if you run a small business. The key to accounting is that for every financial transaction, something gets "added to" an account and something gets "taken away" from an account. Also, at any given time, your assets or worth is defined in terms of what is left after subtracting out your liabilities and expenses. In non-accounting terms, this means that the money you have is defined in terms of what is left over after you pay your expenses. And if you have any upcoming expenses, they need to be reserved out of the money you currently have.

You first start by listing all of your sources of income and your assets. Your assets could include money in your checking and savings accounts. Assets can also include money that others owe you or have promised to pay. If you run a small business then this could be items you have sold but have not received payment for. These are assets. Assets will also include those that are "liquid" and those not very "liquid." By "liquid" we mean that an asset can be turned into cash somewhat easily. Money in your checking account can be very quickly turned into cash by just going to the ATM machine and making a withdrawal. However, your car is not very liquid because you would have to sell it and this usually is not a real quick process.  

So if you know what your "liquid" assets are and what your current expenses are then you have most of the information you need to run a balanced budget. Make sure if you write checks to pay expenses that you record the amount of the check and subtract it from the balance in your check register right away. That’s all there is to it. Pay your expenses but don’t let them exceed your liquid assets.

Disclaimer: The information in this article does not constitute professional advice. This article is for informational purposes only .

 Copying of Contents, in whole or in part, is permitted provided the article remains intact and unchanged. Hyperlinks and/or URLs provided must also remain active. For more information, to visit or make contact  click here

 

Interview Preparation

                                       

Plan Your Answers to Interview Questions

During a job interview, how you speak or say things is important. However, what you actually say is even more important. This is because anything you say during a job interview helps serve to verify your knowledge in a specific domain. Your answers to interview questions will show your prospective employer if you are prepared and qualified for the job you are applying for.

You can indeed prepare yourself for a job interview because generally there are some fixed questions that are asked that you can anticipate and formulate an answer beforehand. However, avoid setting up rigid answers. Have in mind a certain strategy, a plan for your responses so that you can adjust them on the spot. During the interview, do not worry if you pause to collect and organize your thoughts before continuing to answer. These pauses show that you have not learned your answers by heart. In short, your prospective employer won't think that you're giving them canned or scripted answers.

Short pauses are very natural in speaking regardless of the situation. Except for this first aspect, there are many advantages for taking such short moments of "respiro." There can be some tricky questions and you must take your time in order to grasp them and to formulate some intelligent and adequate answers. Moreover, such pauses are necessary for the interviewers also. If you are a regular chatterbox; then they won’t even have the time to follow you and to understand your ideas.

It is definitely more appropriate to be silent than to stammer. So whenever such a situation occurs, just take a deep breath. Take time to collect yourself and organize your thoughts before you start talking again.

 

 

 

 

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Decide on Your Spending Priorities in Your Budget

 

Your Spending Priorities & Your Budget

Setting up a family budget is a matter of deciding what your income is and what money will be going out due to variable and fixed expenses. In addition to this, it is also important to prioritize your spending so that you have the money to take care of things that rank in importance to other things you can spend your money on. Prioritizing helps you keep on track and stay focused on your financial goals. Also, when hard times hit, you know what you must spend money on and what can wait.

You need to make sure that you have money for things that are critical to survival. These can include items such as food, transportation to and from work, savings, education, and medical care to name a few. Of course, food is a priority but take a close look at your family’s eating habits and cut back on fast food carry-outs and eating in restaurants. These can blow your food budget real fast. Many large grocery stores have specials on certain food items and you would be wise to search out these bargains.

Of course, transportation is necessary to get to and from work and other things like school activities but you should carefully scrutinize your transportation situation. If you are having tough times then carefully ask yourself if you need two cars for both spouses. An automobile is a terrible financial resource consumer. Ask yourself if you have reliable mass transportation available in your city to get you to and from work and keep only one car.

Medical care can be another money drain even with insurance. Sometimes, if you carefully weigh the health of your family, you can save money on health insurance premiums by taking options with higher deductibles. You will need to have the deductible ready to go should you need it but if you carefully analyze your situation you could perhaps reduce your premiums.

 

 

Keeping More Money In Your Pocket

Saving Money by Saving on Interest

Most all of us in our lifetime will have to borrow money to make some major purchase. Along with borrowing the money comes an interest charge that the bank or financial institution will charge for the money you borrowed over time. Depending on the interest rates and the period of the loan, the amount you borrowed could end up costing you a lot more than you would have liked to pay. On any major purchase, it is best to pay as much down in cash that you can and finance as little as possible. And, in order to save interest, pay the loan back as soon as you can.

The less you have to finance the better. In fact, in some cases you will pay a higher interest rate if you do not put much down. It all points back to risk. Financial institutions see that the large down payment is a good indicator that you will pay the rest of the loan plus it helps their cash flow as well.

The total interest that you pay is a function of time. The longer you have an outstanding loan, the more interest you will pay and ultimately the more the loan will cost you. By working to pay off the loan early, you save money.

Sometimes folks will make double payments on their outstanding loan to pay it off in half the time. Always remember that certain loans have a payoff value and an outstanding loan balance. These are two different values. The payoff value is what it takes to pay off the loan today whereas the outstanding loan balance is what merely the balance of the remaining payments over time with interest computed in. Also, keep in mind that with auto loans, most of your initial payments are paying the interest only. Paying this type of loan early definitely has an advantage because all of the interest is figured into the first two to three years of payments.

Get A Big Bank Accunt -Not A Big Belly

There was a time in the history of men, that being fat was considered healthy. Before, people associated the body’s size to being rich and powerful. If you were fat, it only meant that you had the money to buy all the foods you want and you are not starving. Though, this principle is still being practiced by some groups in Africa, other groups in the world have already changed their views of regarding that concept of being fat.


The changed of views of many people was due to the fact that many illnesses have been associated with being fat and studies show that they are preventable if the person is living on a healthy lifestyle. Even though many are aware of these studies, yet there are still a lot who enjoys eating and drinking foods that are not good to the health. And those foods that cannot be processed by the body are the one causing the trouble.


Now being fat is not just being big anymore. There are terms that properly correspond to how big a person is. One term is overweight. An overweight person is either normal or obese. His or her body mass index (BMI) is 27.3% or greater for women and 27.8% or greater for men. On the other hand, an obese person has so much excessive fats on the body and this BMI is already 30% or greater. If you are wondering whether you are already an obese or overweight, you may get your BMI by dividing your body mass (in terms of KG) to the squared of your height (in terms of meters).


Though BMI is just one of the many tools in determining if a person is obese or nor not, many still rely on this since it is easier to measure. But many people are already aware of the detrimental effects of being fat. Still many people don’t seem to give the matter enough thought. This was shown on the recent report from the World Health Organization that there are more than 1 billion people who are overweight wherein more than 300,000 of them are already obese. This is really alarming since about 1/6 of the population of the Earth are very prone to diseases which can be prevented by being healthy.


Studies also show that obesity in today’s time was cause by the highly urbanized setting of most places. Many don’t have enough time to cook and prepare the right foods due to work and other social activities of man. Thus, more and more are relying on easy-prepare foods and fast-food foods which are unhealthy.  In addition, the work nowadays is more on paper works or desk work. Thus, the physical activities of men are being reduced as well. These factors, globalization, modernization, and urbanization are the key factors that cause the widespread epidemic of obesity.


Those studies should be a wake-up call for most of us that even though we are striving to have a highly urbanized civilization, we should never forget our health. Our health should always be a priority and should not be neglected since even though we have transformed the world into a modernized one, if we can’t see it due to health reasons, it is useless.