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For some, the question is, why is personal finance not taught in school? It is not clear whether people are not educated, or simply they don’t want to learn anything. Before I look into the crux of the issue, let me review a twitter feed that I engage in about finance. A good number of people believe that they were never taught personal finance. Those that were taught think that it was a waste of time; in fact, some are enrolling for private finance consultations instead of reviewing their school-learned lessons.
Before 1998, only 21 states had implemented personal finance in their educational curricula. Eighteen years later just 24 more states have done so to bring the total to 25. Today, only 22 states, out of 54, require students to pass a personal finance course before graduating. Considering that 73% of the US population is above 21 years, it not hard to see why they feel that they never received this critical information.
So, from reliable extrapolation, we can argue that majority don’t have the power over their finances. Once you get your money, ‘finance’ becomes an academic word. If the person is not taught in school, then, personal finance is just that, personal! If you cannot take the initiative, then the cruel hand of your creation will initiate you.
Research shows that majority of people rely on information from parents, mostly negative, about finance. If your parents are struggling with finances, you are likely to learn from experience. If they don’t, then, that lesson may never hit you until when it does. With finance, there is more than affording a mortgage, paying for college, medical insurance or even a holiday. It is about having a balanced lifestyle from youth to old age.
It is more about how you can transition from one stage of life to the next and managing it well. For example, the transition from youth to parenthood is not always backed with increases in income, yet the expenditure tends to increase significantly. So, personal finance is engaging in a thought-provoking decision plan. For example, individual finance should inform you on when to start a family and how to do that.
On average, to retire peacefully, you need $1.5 million. Assuming you have worked for 40 years to retire at 65, you need to save $37, 500. Unfortunately, the real median personal income for the country is $31,099. That sad reality can explain why the average American debt grows over 20 times faster than the US GDP, which is another worrying statistic. Firms such as Tweed Financial Services must worry about the trend.
A quick review of some of the personal finance courses available in schools shows that the classes are laden with financial jargon and little applicable knowledge. Tweed Financial Services is concerned that one does not need to know how to fill IFRS compliant forms to be perceptive about his finances. All the person needs is information enough to plan and execute a budget that includes what to earn, what to spend, what to save, how to save, and how to grow the savings.
My opinion is that personal finance knowledge should be a comprehensive learning process that should start in school and continue into adulthood. At the high school level, children should learn bookkeeping, budgeting, and a saving culture. As they progress in life, they must learn how to manage debt and earn. Once they have savings, they should learn ways and means to increase or multiply those savings. Later in life, they should focus on maintaining affordable lifestyles without breaking their lifelong commitment to a successful personal finance.
General liability insurance is the type of insurance that covers your business from lawsuits regarding personal injuries. If you are just starting your journey as an entrepreneur, you might be wondering: How much is this going to cost? The finances of your business are at the core of your operations. Each decision that you make affects the expense and profit that your business encounters. Let’s get into the details of general liability insurance, so that you can begin to understand how it will affect your finances.
What Is General Liability Insurance?
As a business owner, you may have to buy several separate kinds of insurance. Some plans will protect your products, others will be related to theft and equipment damage.
One of these policies will be titled “General Liability Insurance”, and it is in place to help you in case an individual makes a claim against your business. Claims can be unexpected. Do you think the McDonald franchise ever thought someone would sue them for having coffee that was too hot? They can also be outrageous.
A claim can be related to bodily injury that was sustained on your property, property damage that has occurred, or personal injury which can include psychological and emotional damage.
Whatever the claim may be, general liability insurance’s purpose is to pay for the fees associated with taking the claim to court. The insurance could pay for investigating the case, hiring a lawyer, and even part of the medical bills if your business is found at fault.
How Will My Insurance Policy Affect My Finances?
The rate that you pay for your insurance will depend on the type of business that you are, the number of employees that you have, and your location. One helpful survey, conducted by Hiscox, found that for small businesses with ten employees or less, the average cost of general liability insurance was thirty dollars per month.
As with many financial decisions, it is smart to consider in this case risk and reward. An inadequate policy carries the risk of financial disaster for your business if a claim is issued against you, and you do not have the financial means to defend yourself. The risk of spending more than might be necessary comes with a reward of being well taken care of when it comes time to mount a legal response or contend with an accidental injury.
Experts can help you decide what policy is right for you, or you could continue to do research online and get quotes from several companies and weigh your options. Some areas have higher risk for personal injury than others. The personal injury attorney Tampa community also finds that personal injury claims go up around certain times of the year. Consider speaking to a personal injury attorney so that you can learn about the kinds of claims that your insurance will be protecting you against.
The finances of your business will be the factor that decides whether it will continue to run or not. Budget concerns are very important. As you figure out your monthly and yearly budget, be sure to include general liability insurance in on your calculations.
Holidays саn bе very ѕtrеѕѕful аnd fun at thе ѕаmе time. What most реорlе dо is gо shopping, rеlаx оr gо out-of-town and with thеѕе, it’ѕ hаrd tо mоnitоr уоur credit all at thе ѕаmе timе. Wе have tо mоnitоr оur сrеdit ѕсоrе аlwауѕ tо knоw maybe it’ѕ ѕtill on the right track or to simply juѕt know the uрdаtеѕ or its ѕtаtuѕ. Read dоwn to learn mоrе on whу уоu should mоnitоr уоur score.
If уоu ѕign uр fоr a mоnitоring agency, you nоt оnlу get tо monitor your ѕсоrе, you саn get аn accurate rероrt of уоur асtivitiеѕ as well tо kеер уоu оn trасk of whаt уоu did. This will ѕurеlу come in hаndу even if уоu’rе оut fоr a vасаtiоn.
Chаnging уоur nаmе оr аddrеѕѕ can make lеndеrs doubt уоu. Crеdit mоnitоring will рrоvidе уоu the uрdаtеѕ оn thеѕе ѕееminglу unimроrtаnt events
Whеn you’re оut fоr thе hоlidау, someone hаѕ to kеер uр оn аll уоur асtivitiеѕ. Crеdit score monitoring саn dо thiѕ for you. Knоw аbоut thе thingѕ thаt уоu miѕѕеd, likе billѕ оr dеbtѕ. Thiѕ will аlѕо monitor уоu if you’ve еxсееdеd уоur limit duе tо оvеrѕреnding.
Who wаntѕ to be wоrrуing аbоut thеir сrеdit rероrt whilе rеlаxing? Nо оnе, with сrеdit uрdаtе, уоu саn easily check your rесоrd fоr fiѕhу transaction. With tоdау’ѕ intеrnеt, уоu can check your credit report as оftеn аѕ уоu wiѕh.
Othеr реорlе саn brеасh intо уоur record and add a hugе аmоunt оf dеbt tо your сrеdit. Thiѕ саn ruin уоur clean сrеdit ѕсоrе. Thеѕе ѕеrviсе will let you know whаt iѕ hарреning; уоu саn even ѕеt уоur own alerts to nоtifу уоu аbоut thеѕе updates
Knоwing thаt thеrе are ѕеrviсеs оut thеrе to kеер уоu uрdаtеd саn hеlр you lооѕеn uр еvеn whеn уоu’rе аwау. Prоtесt what you hаvе wоrkеd hаrd for frоm сrеdit frаud аnd dаmаgе аnd enjoy your hоlidауѕ.
While these credit services mау mеаn a lоt, thеу wоn’t mean a thing if уоu dоn’t check уоur rероrt rеgulаrlу. Juѕt rеmеmbеr thе bаѕiсѕ tо keep your credit ѕсоrе and report intact. Pay уоur billѕ оn timе, finiѕh оff your debts, stay оn a budgеt аnd аlwауѕ сhесk уоur credit rероrt. Thаt wау, уоu саn handle еvеrуthing with lеѕѕ effort.
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“Darren Pawski is the managing director of Synergy Financial Solutions, a boutique financial services firm that advocates a holistic and highly individualized approach to financial planning.”
“Darren Pawski is a longtime resident of Perth, Western Australia, where he has spent close to 30 years working in the finance industry while holding a number of critical leadership positions with some of the most renowned institutions in all of Australia, including Commonwealth Bank as well as sever”
Many financial advisors are fond of explaining to clients how, for all intents and purposes, the most essential concepts and advice relating to personal finance are so simple that they can fit on a single, standard-size index card. In terms of the most basic and straightforward advice, there are few who would disagree with this notion and it certainly seems to be intuitively true that a practical approach to financial planning ought to be entirely uncomplicated. As the Groza Learning Center might point out, it is not often made clear by those fond of this particular maxim whether or not any of the information included on the index card will ever have to be replaced or otherwise updated.
The overwhelming majority of educators would be quite likely to agree that education, just like finance, requires an ever-changing approach in order to yield the best possible outcome. While the same basic principles will remain similar as time goes by, adjustments will have to be made and changes implemented based on the development of new and more effective practices and strategies. The same is true in finance, where the principles may remain largely unchanged but will have to be reviewed and adapted on a regular basis in order to generate the best possible outcome.
If, for example, an educator were to keep the same index card in his or her back pocket for the entirety of a teaching career, it is quite likely for that teacher’s students to be adversely affected by the lack of educational adaptation when compared to students of a teacher who has adapted his or her approach over time. Education, regardless of the subject matter, should always be considered an ongoing process.
Shrewd investors have been doing their due diligence on the wide variety of renewable energy resources that may ultimately become a primary source of energy now that carbon reduction is poised to officially be recognized as a worldwide goal. With the Paris climate change agreement being far more aggressive in the timeline outlined for the achievement of its goals than anyone could have reasonably predicted, investors are now feeling a far greater sense of urgency to invest wisely in order to reap the greatest possible financial reward.
There is also the issue of asset allocation for investors who must ensure that they are investing in a manner that is highly efficient in every possible way. While a business in need of facilities management can simply turn to a reliable service provider in 1 Stop Maintenance, investors have to research whether or not their financial consultant or advisor has developed a strategy that properly considers the possible consequences of a global climate change agreement in which the focus on reducing carbon emissions can lead to rapid changes affecting the success or failure of an investment strategy.
Unfortunately, the effect of the climate change agreement is not nearly as predictable as the consistently reliable services provided to facilities management clients by One Stop Maintenance. With thorough research, analysis and expert advice, it is much more likely that a solid investment strategy can be implemented in relatively short order.
Choosing an accountant is one of the most critical decisions a business owner of any size can make, yet even the most detail-oriented entrepreneurs do not always take the time to find a specific CPA or accounting firm capable of meeting their unique business needs. In order to identify the most ideal accountant Sun City AZ or any other city has to offer, business owners must recognize the qualities that make an accounting firm capable of providing consistently outstanding services to clients.
Beyond the obvious need for an accountant to be skilled in matters relating to financial management, bookkeeping, tax preparation and the like, the following qualities are among the most important for a business owner to seek out:
• Specific experience in the field in which the business operates
• Long track record of reliability and trustworthiness
• Reputation for establishing a rapport with clients
A business owner that finds a CPA or accounting firm capable of providing these qualities is simply more likely to enjoy the significant financial benefits an accountant is able to provide.
Specific Industry Experience
Accounting is a fairly general term for a field that is made up of many specialists, so it is essential for business owners to look for a CPA who has specific experience in tax preparation, bookkeeping and other accounting services for clients operating under similar circumstances. A CPA is simply more likely to generate exceptional results when they are especially familiar with what goes into their clients’ finances and what specific strategies can be employed to achieve their clients’ short- and long-term business goals.
Reliability and Trustworthiness
There are myriad ways to gauge the reliability and trustworthiness of a CPA, but the most obvious step is to ensure they are properly licensed and registered with their State Accountancy Board. Aside from licensure, business owners can also act on the recommendations of others and pose questions regarding the qualities possessed by a specific accountant along with what the CPA has been able to achieve. Though it should go without saying, it is absolutely critical for an accounting firm to be reliable; a missed deadline can have a devastating impact on a business owner.
Clear Rapport With Clients
Perhaps the most overlooked aspect is the personal relationship between the business owner and the CPA. Since an accounting firm is charged with managing vital financial matters, prospective clients should feel comfortable with their chosen CPA’s approach and feel the utmost level of confidence that their accountant clearly understands and values their company’s specific business goals.
When people begin to struggle with their personal finances, there is an interesting and completely counterintuitive psychological effect that is sometimes referred to as the “Ostrich Effect.” The term is based on the erroneous belief that ostriches, when confronted with danger, bury their heads in the sand as a defense mechanism. As it relates to personal finance, the Ostrich Effect refers to a behavior in which people begin to completely ignore their finances due to the presence of difficult circumstances.
Obviously, difficult financial issues must be addressed head-on and sometimes require creative strategies for cutting costs, so figuratively burying your head in the sand is the worst possible approach. It wouldn’t be wise to ignore the need for roofing Phoenix in the hope that the problem will just go away, as it should be obvious that a small roof leak will only expand and cause greater damage the longer it goes unaddressed. The same is true of personal financial matters.
For some, it may feel better to ignore the problem and delay the stress it will surely bring in relatively short order, but the simple truth of the matter is that getting your finances in order as quickly as possible is the only intelligent approach. Fortunately, accomplishing this is actually not all that difficult, as many people have unnecessary expenses (most of which they are surprisingly unaware of) that can be eliminated to save money now and in the future. Anyone struggling with their finances should take the time to work out a solution by considering some of the strategies that follow.
Eliminating Unnecessary Expenses
“Unnecessary expenses” is a phrase that likely evokes visions of the money wasted dining out at nice restaurants or on the vehicle that includes a monthly payment that increasingly feels like a millstone. If these are among your actual expenditures, then you have plenty of places to cut costs. Cut down on restaurants and make more meals at home and, if possible, sell the vehicle and find something more practical that better suits your budget. After all, it is most important that you are able to get to and from work without breaking your budget in doing so.
The reality is that many of the truly unnecessary expenses are not so easily recognizable. When you evaluate what you are spending each month, consider the costs associated with your banking. Does you bank charge you each time you use your debit card or levy a monthly fee if you do not use it enough? If that is the case, consider researching banks that don’t charge so many fees and have programs in place that reward you for banking with them instead of penalizing you.
The same is true of other financial professionals, as various fees and charges can quickly eat away at your return on investment. Simply take a few moments to evaluate whether or not your investment strategy is as efficient as it should be.
Taking Charge of Credit Card Debt
There has been a lot of talk about interest rates going on the rise in the near future, and credit card interest is one of the most unnecessary expenses imaginable. In 2015, the average household paid an astonishing amount in interest, with the figure of $6,658 demonstrating just how wasteful it is to carry credit card debt for any extended period of time.
If you have sizable debt and are struggling with your finances, one of the smartest strategies is to focus on eradicating the cost of interest from credit card debt. It is easy to just go on paying the minimum each month as though you are punting on the responsibility, but paying the minimum will cost you a great deal more in the long run. With your credit card debt in check, you will find that your finances will become a lot easier to manage in the future.