Money Wise Blog

The process of forming the financial strategy of the enterprise consists of the following steps:
? definition of the strategy period;
? analysis of factors influencing the external environment company;
? formation of the strategic objectives of financial activity;
? Development of the financial policy of the company;
? Development of a system of measures to ensure the financial strategy firm;
? score developed financial strategy.

While developing the financial strategy of the firm it is very important to clearly and honestly, initially and correctly identify the strategy period. In our time, among small firms and enterprises common practice “firms-night” is strong enough when the purpose of obtaining benefits, tax evasion and the possible liability of the company exists on the strength of two – three years, and then often appears in the same composition, but with a different name.

Too much attention in the process of financial strategy should be paid to the analysis of environmental factors, the study of economic and legal conditions for the financial activities of the company, because it is often a variety of errors and crimes committed not by evil intent, but because of ignorance of the elementary rules, acts and laws. It is also important to pay special attention to the study of risk factors, monitor the trends taking place in the enterprise market segment of interest, record and take into account currency fluctuations and direction of economic policy of the country.

Next stage of the financial strategy of the company is forming strategic objectives of financial activities. The main goal should be to maximize the market value of the enterprise. All goals should be formulated more clearly and concisely. The goals should be reflected in specific terms, regulations. Typically, the strategic use of standards such as:
? annual growth rate of its own financial resources;
? rate of return on equity firm;
? ratio of circulating and non-current assets of the firm, etc.

On the base of financial strategy firm a financial policy of the company in specific areas of financial activity is formed: tax, depreciation, dividend, emission, etc.
Next you must develop a system of measures ensuring the implementation of financial strategy sets out the rights, duties, responsibilities and actions of heads of departments and divisions of the company for the results of the financial strategy of the firm.

The final stage of development of financial strategies of the firm is an assessment of the effectiveness of this strategy. This assessment should be carried out by several parameters:
1 the extent to develop financial strategy agreed with the overall company strategy, the identification of possible inconsistencies or contradictions are assessed. We improve the coherence of goals, directions and steps to implement these strategies.
1. the consistency of financial strategy firm with projected changes in the external business environment are evaluated .
2. flexible financial strategies are estimated, how quickly and accurately to respond with the firm for possible abrupt changes in the external environment.
3 the feasibility of the developed financial strategy is assessed, i.e. the possibility of firms in shaping their own and attracting foreign financial resources is considered
4. the impact of the financial strategy is evaluated, how it will affect the company’s position in the market, enhance its reputation, increase profits, etc.

Economic recession has made many people taking care of their retirement and future, search for various ways to save funds and retirement financial planners. Those who are concerned about their future well-being, are advised to go to this professional financial planner site – the very spot on the Internet to get professional pieces of advice and learn how organizing personal finances is made.

Fortunately we live in the world of digital technologies. It wouldn’t be good not to use this really unique opportunity. Modern web technologies help us break the borders and look for anything we need all over the planet. Visit different social networks, check related topics, participate in discussions in niche forums. All this will help you keep abreast of the events concerning your hobby. Also, sign up for the RSS feed on this blog to keep track of the latest publications on the topic.

According to the time of writing financial plans can be divided into: introductory (organizational), current (operational), reorganized (anti-crisis), unifying (connectors, plans of merging), separating and liquidation plans.

Introductory (organizational) financial plans are formed by the date of the organization of the company.

Current (operational) financial plans are drawn up periodically throughout the period of operation of the company.

In respect of reorganized, unifying (connectors), separating, liquidation financial plans, it is easy to conclude that they are drawn in such a time when the company carried out the readjustment procedure (recovery), the company merges, divides or is under liquidation.

The need in the formation of reorganized (anti-crisis) financial plan occurs when a company is under the explicit bankruptcy. An anti-crisis financial plan should help answer the question of what actual damages the company has, whether there are reserves for the repayment of debt and what their estimated value, and to identify ways to resolve the situation.

Separating and unifying (connectors, plans of merging) financial plans can be called a plan-antipodes. Connectors (unifying, plans of merging) and separating financial plans are prepared for joining one company to another or during the division into several entities. That is the connection (unification, merging plans) and the separating plans are formed during the reorganization of a legal entity, which may take the form of merger, takeover, division, separation or transformation.

Unifying (connectors, plans of merging) financial plans are prepared by combining (merging) of two or more companies in one or join one or more structural units of the company.

Separating financial plans are prepared at the time of the division of the company into two or more companies or the allocation of one or more structural units of the company to another.

Liquidation financial plans are prepared at the time of liquidation. And the reasons for liquidation may be different – as a result of bankruptcy or closure as a result of the reorganization.

As for the content of the information displayed one can distinguish static and dynamic (flexible) financial plans.

Static plans contain one level of reporting, and dynamic (flexible) – several

Dynamic plans, of course, are more informative, but they are more difficult to draw up.. If in the static financial plan one variant of the situation is developed, in the dynamic – two or more. Accordingly, the complexity and time consuming preparation increase in proportion.
According to the volume of data plans may be single and consolidated (consolidated).

Single plans reflect the strategy of one company. Summary (consolidated) plans represent a strategy of action for the entire group of companies. These financial plans are often drawn up when it comes to the group of companies controlled by one person or group.

According to the purpose the financial plan can be divided into tentative and final. Tentative plans are to implement the controls, analytical procedures. As a rule, these plans are not transmitted to interested users, as they are instruments of internal control and analysis. Final plans are official documents of the company and serve for different sources to interested users to explore the financial plans of the company

Economic recession has made many people taking care of their retirement and future, look around for various ways to save funds and retirement financial planners. Those who are concerned about their future well-being, are invited to go to this professional financial planner site – the very spot online to get professional pieces of advice and find out how organizing personal finances is made.

Fortunately we live in the world of digital technologies. It wouldn’t be good not to avail oneself of this truly unique chance. Modern Internet technologies allow us to break the borders and look for anything we need all over the world. Check out social networks, review relevant topics, join discussions in niche forums. All this will help you keep abreast of the events concerning your interests. And, sign up for the RSS feed on this blog not to miss new publications on the topic.

Under current economic conditions, the survival of businesses, not to mention their development, largely depends on the level of strategic planning. Only with a clear view about the goals of the company, their timely adjustment according to the changes in the external environment, a clear distribution of material and human resources can ensure the success of entrepreneurial activity.

What do we mean by planning? “The plan is a project of a desired future and ways to its effectively achieving.” It aims at achieving the ultimate goal, and indicates how it should deploy the scheduled time and space. In a broader interpretation: planning is the definition of objectives on a particular perspective, analysis of the ways of their implementation and resourcing. The concept of long-term planning was later formulated, also called strategic, or corporate.

How can one distinguish long-term planning from other planning processes? Sizer said that “long-term planning can be defined as systematic and formalized process, which aims to manage future operations, to achieve the desired goals in a period exceeding one year.”

From the other hand, short-term (current) planning, as well as budgeting must reflect current conditions and human and financial resources that the company has in this period. These plans are largely determined by the quality of long-term planning of the enterprise.

Under new conditions the role of planning is significantly changed: implementation of the plan is not an end in itself but a means for effective work. The plan should be adjusted to market conditions. Work shops and sites are evaluated not on the percentage of completion or on the over-fulfillment of plans, but on the implementation schedules of deliveries, product quality (the number of defects per 100 units), the use of production capacity, level and trends of costs and profits (for intra-settlement prices on the parts, semi- , services, etc.).

If proceed from the premise that planning is a management function, then company ‘s cost planning in the field of production must be considered as part of the development of industrial and financial plans to profit from the sale of manufactured goods (works, services) and the total profits of the enterprise.

In the process of developing of the long-term plans in order to select the correct solution you should have the following information:

• the projected costs of production (works, services);
• the level of costs in general in certain periods;
• the need for investment.

On the base of this information you can make a decision:

• What products to sell on a given market;
• at what prices;
• how to finance;
• where it is best to place the produce.

A preliminary costing, planning, revenue and control costs begin at the design stage and development of technology. The level of costs is laid on those stages. At the stage of preliminary cost estimates must be based on clearly defined output, consider the technology, possible substitutes for materials to breakdown of cost and quality indicators into its component parts to compare their advantages and disadvantages with those of competitors. This assessment should include the need to further upgrade the product.

World crisis has made lots of people caring of their retirement and future, look for different ways to save funds and retirement financial planners. Those who are concerned about their future well-being, are recommended to visit this professional financial planner site – the proper place on the Internet to get professional pieces of advice and learn how organizing personal finances is made.

Fortunately we live in the world of high technologies. It wouldn’t be good not to take advantage of this really unique chance. Modern Internet technologies help us break the borders and look for anything we need all over the world. Go to different social networks, check respective topics, participate in online discussions in niche forums. All this will help you be well informed about the events concerning your hobby. Also, subscribe to the RSS on this blog to keep track of the latest publications on the topic.

From the general point of view, one can distinguish the following levels of financial planning: long-term (investment) and short-term (current) planning.
Short-term financial decisions are usually easier to take than long-term. However, this does not mean that they are less important. The company can develop a very attractive investment project to determine the optimal ratio of debt and equity capital to develop the perfect policy dividends and still have no success because nobody has bothered to have enough cash to pay its current bills, i.e. company is not serious about issues of current budgeting.

The implementators of long-term financial plans tend to be dealing with aggregate investment performance and not immersed in the various parts. Numerous small investment projects are brought together and treated as one large project. For example, for each business unit holding developed three possible activities:

-the plan of aggressive growth, involving large investments, the development of new products, entering new markets;

-the plan of normal growth, suggesting growth in unit-growth market, and not due to attack on competitors,

-the plan of reducing costs, suggesting to minimize the required investment.
The conditions, that determine the effectiveness of financial planning, derived from the goals of this process and the desired result. In this sense, there are three basic conditions for financial planning:

-the availability of forecast model. The financial plans must be drawn in as accurately as possible determinants of prognosis. Meanwhile the prediction may be based on historical information, using the apparatus of mathematical statistics (expectation, trend lines, etc.), the results of predictive models (statistical models, taking into account the relationship of factors with each other and external factors), peer reviews, etc.

-the absence of the appropriate financial plan. To date, there is no model that solves for the manager, which of the possible alternatives should be adopted. The decision is made after studying the alternatives, based on professional experience and, perhaps, intuition, leadership. The problem of finance manager is to provide leadership of all possible palettes of possible outcomes of the planning period.

-Control over the realization of the financial plan into effect. Achieving long-term planning is impossible without a current plan, subject to these long-term plans. It is clear that no long-term plan cannot be executed with absolute precision. Requirement for planning accuracy should be increased as we approach the end of the planning period at the time of planning. Every plant manager should seek opportunities to improve compliance month plan, knowing that the intended result of the annual plan will not coincide with the fact. This is the reality of today’s economic existence.

Let’s define basic technological principles of financial planning.
-the principle of compliance is that the acquisition of current assets (working capital) should be planned mainly due to short-term sources. In other words, if the company plans to purchase consignments, to resort to finance the deal to issue bonds not to be. You must use the short-term bank loans or commercial loan provider. At the same time, for the modernization of equipment should be involved in long-term sources of funding.

Economic recession has made lots of people caring of their retirement and future, look around for different ways to save funds and retirement financial planners. Those who are concerned about their retirement well-being, are invited to visit this professional financial planner site – the very place on the Internet to get professional pieces of advice and learn how organizing personal finances is made.

Luckily we live in the world of high technologies. It wouldn’t be good not to use this truly unique opportunity. Modern online technologies allow us to break the borders and look for anything we need all over the world. Check out social networks, check respective topics, participate in online discussions in niche forums. All this will help you be well informed about the events concerning your interests. And, sign up for the RSS feed on this blog to keep track of new publications on the topic.

Financial planning is the process of determining future action on the formation and use of financial resources. The purpose of financial planning is ensuring the reproduction process as appropriate in terms of volume and structure of financial resources. The following types of plans:
1) strategic plans, i.e. plans for general business development. In the financial aspect of these plans one defines the most important financial ratios and proportions of reproduction, characterized by investment strategies and opportunities for reinvestment and savings. Strategic plans define the scope and structure of the financial resources necessary for the functioning of the enterprise. Current plans are developed on the base of the strategic ones by means of their specification. If the strategic plan provides an indicative list of financial resources, their extent and direction, than the mutual agreement of each type of attachment with their sources of funding is carried out in the network of the ongoing planning, the effectiveness of each possible source of funding is studied, and financial evaluation of the major activities of the enterprise and the ways of obtaining income is carried out.
2)Operational plans , i.e. a short-term tactical plans that are directly related to the achievement of the company (production plan, plan of purchasing raw materials, etc.).

Any action plan should be accompanied by an estimate of expenditures – budget formulation, which is a quantitative embodiment of the plan, describing the income and expenses for a specific time and resource requirements to achieve a given plan targets. The budget is created to perform the proposed action that defines its role as a basis for monitoring and evaluating the performance of the company.
The difference of financial forecasting from financial planning is that in predicting the estimated potential future financial implications of decisions and external factors, and the planning of fixed financial performance, which the company aspires to achieve in future. Financial prediction is the basis for financial planning at the plant (i.e. of strategic, current and operational plans) and financial budgeting (i.e., an overall financial and operational budgets). The starting point of financial forecasting is the forecast of sales and the corresponding costs; endpoint and the target – calculation of the external financing requirements. The main stages of forecasting funding requirements are as follows:

Working out the forecast sales statistics and other available methods. Predicting variable costs. Predicting investment in fixed assets and working capital necessary to achieve the necessary volume of sales. Calculation of the external financing needs and finding appropriate sources. The first stage is based on marketing research. Others focus on the financiers. There are two main methods of financial forecasting. One of them is based on the concept of cash flow and reduces essentially to the calculation of the financial part of the business plan.

Economic recession has made lots of people taking care of their retirement and future, search for different ways to save money and retirement financial planners. Those who are concerned about their retirement well-being, are recommended to visit this professional financial planner site – the very spot online to get professional pieces of advice and learn how organizing personal finances is made.

Fortunately we live in the world of digital technologies. It wouldn’t be good not to avail oneself of this really unique opportunity. Current Internet technologies give us a way to break the borders and search anything we need all over the world. Go to various social networks, review related topics, participate in online discussions in niche forums. All this will help you be well informed about the events concerning your hobby. And, subscribe to the RSS feed on this blog not to miss new publications on the topic.

We will tell you some tips to save money. Spending should be planned. Going out shopping, make a list (if you’re going for groceries), or simply a clear idea of what you want to buy. If you know that you need mascara, lipstick and face powder, you should not buy tonic, if it is still not over. If you need a skirt, then buy a skirt, not a dress, trousers, or more one bag. But it happens all the time, we go to the store even slightly imagining what we want, or buy what we were going to buy. You can still somehow justify buying a shirt instead of a blouse, but, for example, between pants and a bag I do not see any connection.

You should not follow your a spontaneous wish, to buy the first thing you see. You should tell yourself: I’ll buy it next month; you can check your desire. If by next month it will not disappear if have saved money for the purchase, then you just go and buy what you want, but if you do not need the thing and desire to have it disappear, thus you save money.

Secondly, the economy – is not to deny in quality things or necessary things. Economy – is to buy things of the same quality but at a lower price than you currently have planned initially. So, if you buy jeans on sale in the store, and not just cheap jeans, and you’ll save money and buy quality clothing.

And last but most important: how we used to distribute the money saved? Either immediately on the joys of spending on something else (especially not planned). And if you do not spend all the savings per month, but simply put off, at the end of the month to save enough amount that you can spend a much greater benefit.
You may also actively seek opportunities to save, bargain.

And another very important point. If you ask to calculate how much money is spent on snacks at work, then the sum will be impressive. All kinds of chips, crackers, ready-made salads, sodas, pastries and chocolates are harmful not only for your wallet, but also for your figure. Much more effective and more economical will be lunches, brought with you. Here, I’m not talking about sandwiches (although if you do not think about the figure, the sandwich will be much more economical than patties), and that can bring with them to work salads or anything else, cooked at home.

World crisis has made many people caring of their retirement and future, search for different ways to save funds and retirement financial planners. Those who are concerned about their retirement well-being, are invited to go to this professional financial planner site – the very spot online to get professional pieces of advice and find out how organizing personal finances is made.

Fortunately we live in the world of digital technologies. It wouldn’t be good not to avail oneself of this really unique chance. Modern Internet technologies allow us to break the borders and search anything we need all over the world. Go to social networks, look through relevant topics, join online discussions in niche forums. All this will help you keep abreast of the events concerning your hobby. Also, sign up for the RSS feed on this blog not to miss new publications on the topic.

During a crisis many people have financial problems. But there are still many people, who try to earn money in such difficult time and seek opportunities to earn. Now there are a lot of offers to earn money quickly and without much effort. Here we’ll tell about some of them, and tell whether these offers are profitable or not.
“Take a loan against a pledge of your car or house for 3-4% per month”. It is easy to find such an announcement today, in the newspapers. Banks have stopped lending actively, but the demand for loans has not disappeared, and people began to look for, where they can borrow money. Taking into account that such loans are usually willing to take a 3-4% per month (and sometimes above), for ordinary people, who are unwilling or afraid to invest money in the bank, give someone a loan – a fairly profitable business. For example, a deposit in U.S. dollars in a major bank will bring you an average of $ 10 per thousand in the month, and granted someone a loan – $ 30-40 for the same thousand. The proposal becomes more attractive when you consider that in most cases, these loans are given against a pledge of the car or real estate.
Risks.
At the first glance, the scheme is good and the interests of creditors are protected by natural persons, but lawyers still advise citizens not to go into such schemes. In the preparation of documents on such loans you must take into account a lot of nuances, or the borrower can find a loophole through which he could not return the money. If the loan is made orally and confirmed by a receipt, you must take into account a lot of things – from specifying the date and place of its drawing up the mandatory to the involvement of the witnesses. Correctly composed receipt will help to counter the borrower, if he wants to challenge its legality, and witnesses confirm the fact of transfer of money and the loan amount, – say the financial experts. To secure yourself against problems you can by turning to the notary, who will offer ready-made forms of loan agreements and collateral. Although this is unlikely to be the salvation – if the borrower does not return the money, then you have to seek the truth in court, which will take considerable time and money.
Begin to work on fluctuation in exchange.
After such advertisements are usually hidden so-called forex trading – the international currency market, where speculative trading is the world’s major currencies – dollar, euro, pound, yen, etc. To earn there seems to be simple: just buy some currency, wait while it appreciates, and sell. Moreover, a number of companies offer access to the forex market with only $ 10 initial deposit. Trade is this: you transfer the money into the account at a bank or a brokerage firm (intermediary company between the foreign exchange market and you) and then through a special program to monitor the dynamics of exchange rates and makes a deal for buying and selling currencies, counting the loss or profit. Most companies are even offering to undergo training. But …
Risks.
Firstly, as they told in a brokerage company, with profits in forex there are only 8-10% of private clients.
Second, no major brokerage firm has shown us their license or National Bank Financial Services Commission.
In good position here are the banks, but they work mainly with large customers, whose start-up capital amounts to tens of thousands of dollars.

Economic recession has made many people taking care of their retirement and future, look around for different ways to save funds and retirement financial planners. Those who are concerned about their retirement well-being, are advised to visit this professional financial planner site – the very spot online to get professional pieces of advice and find out how organizing personal finances is made.

Fortunately we live in the world of high technologies. It wouldn’t be good not to take advantage of this really unique opportunity. Current Internet technologies allow us to break the borders and look for anything we need all over the planet. Visit social networks, review relevant topics, participate in online discussions in niche forums. All this will help you be well informed about the events concerning your hobby. And, sign up for the RSS feed on this blog to keep track of new publications on the topic.

Teaching children to manage their own money is very important for their future.
In schools and colleges our children are taught many useful things. But there is one area, which is neglected. It is the financial education of our children.

The education system today, including schools and universities, provide our children the skills and information they need to get a job, pay taxes and, therefore, support the state. The time has come for our children to learn that financial education and management of their own money is a broader area that includes issues such as saving money, investing money and how to make the money work for them.

About the power of money children know from early childhood. At such an early age as from one to two years, children asked you at the supermarket candy or chocolate, and very quickly realize that in order to pay for it, you’ll need the money. At the age of four, most children have already enthusiastically played with their own money and pay for small purchases. Money is also an excellent way to teach children to calculate, to add and subtract.

As children develop an increasing interest in money and their purchasing power, they begin to think about where they can get your own money. In order to teach them this, there are many ways, including some work for mom, dad, relatives or friends, receiving pocket money for a week or money as a gift.
It is at this stage of the financial education of our children should join the school system. At the teaching children to earn or save some money they receive a very important lesson and a skill that will help them later in life.

Flow control of own funds is also very important skill that children need to learn. If children can t control the amount of money at their disposal and how much they got and how much spent, they will create a solid foundation for their future.

There are many ways in which children and young people can learn more about how to manage their own money. Most children know how to earn money, and in this sense, the earnings of the money is not the most difficult task. Necessary skills, which children require are how to plan their own budget, save and invest money, and if the education system does not teach this, then our task is to help our children to become financially-educated.

With rapid population growth around the world for our children is vitally important to learn to be economically independent, and now is the time when we all need to take some steps for this.

To spend money is a very pleasant thing, and many of us are very good at it. Very important also is the ability to save money, as well as the skills to earn and manage money.

World crisis has made lots of people taking care of their retirement and future, search for ways to save money and retirement financial planners. Those who are concerned about their retirement well-being, are recommended to check out this professional financial planner site – the right spot online to get professional pieces of advice and learn how organizing personal finances is made.

Fortunately we live in the world of digital technologies. It wouldn’t be wise not to take advantage of this really unique chance. Modern online technologies give us a way to break the borders and search anything we need all over the world. Go to social networks, look through related topics, join online discussions in niche forums. All this will help you keep abreast of the events concerning your hobby. Also, sign up for the RSS on this blog to keep track of the latest publications on the topic.

1st way – life insurance
This is the easiest way. If you are the breadwinner in the family (bring to the family 60% percent or more of family income), insure your life. Amount of insurance is calculated on the basis of the household expenditure.

Why do I say that is the easiest way? Because, insuring his loved ones the man don’t worry because his wife or children cannot deal with his business and his business partners, or cannot get to his bank accounts – in any case they will be provided, having received money from the insurance company.

How much means do you need to get such protection?
Example of foreign insurance companies (cumulative insurance).
Woman, 39 years old, does not smoke.
To insure for one million dollars, she should do an annual fee of $ 11 500. Contributions are not lost, they are accumulated in the account, so besides the fact that she is insured for one million dollars, after a while she can (optionally) terminate the contract with the company and get her capital. For example, if she decides to terminate the contract with the company 15 years later, she will receive 181,125 dollars.

If a woman dies for any reason, the heirs are paid the amount of the policy – one million dollars.

2nd way – invest with the appointment of successors
There are different ways of such investment. I like the English way to invest – through an insurance company. In contrast to the savings insurance, such investment does not freeze your funds and you can withdraw them at any time. That is, you can use the insurance company simply as a broker. In this case, when opening an account in such an insurance company, you specify the heirs and the inheritance of your funds. Of course, your family should know that you have such an account with an insurance company. If you do not want to notify relatives about this account, notify your lawyer or notary public, or any other authorized person.
Opening a bank account, write warrants on your account in order your relatives could have an access to it. Banks offer these services.

The third way – bring your assets into a full order
The most problematic asset – business. Very often the business lays on one man, and if something happens with him, either spouse (husband) or children are not sorted out in it. And if business was the main source of the income, the family will live through difficult times. Maybe the partners can help? Do you believe it? I do not believe, though I do have one positive example. Unfortunately, this is an exception that proves the rule – in most cases partners do not help families of their former partners.

I therefore recommend all businessmen to remove some of their capital from the business and invest it in other investment instruments (banking, securities, real estate).
So, we consider three ways of financial protection:
- Life insurance
- Investing with the appointment of successors
- Bringing order to the main assets.
Which of these methods of protection have you chosen?

Economic recession has made lots of people caring of their retirement and future, look around for ways to save money and retirement financial planners. Those who are concerned about their future well-being, are invited to check out this professional financial planner site – the very spot on the Internet to get professional pieces of advice and learn how organizing personal finances is made.

Luckily we live in the world of high technologies. It wouldn’t be good not to avail oneself of this really unique chance. Current web technologies help us break the borders and look for anything we need all over the planet. Check out various social networks, look through respective topics, join online discussions in niche forums. All this will help you be well informed about the events concerning your interests. And, subscribe to the RSS feed on this blog not to miss the latest publications on the topic.

The question “Where does the money go?” has become rhetorical. Of course, with the right approach to find the answer to it is not difficult, but on the other hand, not everyone can recall, on what needs he spent all his salary for two or three days, . If you cannot say exactly how much money you need to pay the bills, if you have difficulty with answering the question, how much money you have spent on living expenses if you have no idea on what was spent the last salary, it’s time to learn to count your own money and try to live within your means!

Among our countrymen not very many rich people and the cause of this unpleasant fact lies not only in that we earn little. According to the experts, a small salary is added to the total inability of people to manage their own money. That’s why most of us are pretty hard to become millionaires.

A survey conducted by the researches has shown: assessing the level of their income, only a third of working families have admitted that the money they earn is generally good enough. In two out of five families is surveyed income which is barely enough for food and purchase of inexpensive things, consider themselves quite well-to-do 8% of respondents, and only in every two hundredth family they can afford to buy whatever they want. And there is no surprising in these results, because for most of our compatriots organization of the concept of personal budget is reduced to a few banknotes hidden under the mattress for “a rainy day”.

According to statistics: average family spend on food about half of its income, therefore, it is not surprising that, having decided to save, many people are beginning to cut costs on food. And then there is something paradoxical about this. Man saves every penny, buying groceries at a supermarket, he was ready to bargain every penny in the market, and then descends once the whole money on some trifles. Why is this happening?

Psychology of impulses.
Psychologists agree that most people are more inclined to spend money spontaneously and unwise than wisely and in the case.

The main reason for spending on ridiculous things lies in the fact that the financial life of every man very rarely meets his true desires and values, – say the financial experts. – Behind each waste hides some emotional need. Say, it is quite possible that the girl, who bought very expensive handbag, wants in so uncomplicated way “outdo” her friend, or when a young man taking a loan for prestigious car, really rankles the neglect of others.

For those, who in the examples found himself, a psychologist advises you truthfully answer the question: what exactly do you wish to receive in exchange for your money? What actually want to achieve through regular purchases? Maybe you do not have enough respect for others, self-confidence, approval, happiness, love? And, perhaps through the purchase of things that initially you cannot afford, you want to achieve at least a semblance of belonging to a particular social class or aspire to someone like?

World crisis has made many people caring of their retirement and future, search for various ways to save funds and retirement financial planners. Those who are concerned about their retirement well-being, are invited to check out this professional financial planner site – the very place on the Internet to get professional pieces of advice and learn how organizing personal finances is made.

Fortunately we live in the world of digital technologies. It wouldn’t be good not to use this truly unique chance. Current online technologies help us break the borders and look for anything we need all over the world. Visit different social networks, look through related topics, join discussions in niche forums. All this will help you keep abreast of the events concerning your hobby. And, sign up for the RSS feed on this blog not to miss new publications on the topic.