Day Trading Forex Currency - Average Just Doesn't Cut It

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Your parents probably told you somewhere along the way, "Anything worth doing is worth doing well." In day trading Forex currency, it makes all the difference.

When it comes to day trading Forex currency, being simply "a trader" won't do. Being a trader is something anyone with a bit of money can do. All you need to do is open an account, deposit some money, then begin placing trades. Instantly you're now a trader.

The big problem is that the average trader either makes very little money for their time, or they are losing money. The 90-95% failure rate in trading is no joke and these people are failing and losing their money. Six-figure incomes are definitely NOT being realized by the average trader.

Now you certainly didn't get into day trading Forex currency to lose your money, strain your relationships, add stress to your life, or grow more gray hair. Most likely you were intending for something quite different. Like quitting your job, becoming your own boss and having control over your time, building wealth, and enjoying financial freedom that trading offers.

There is one distinction where the average trader runs afoul. The focus is on making money with every trade and the secret hopes the each one will be a big winner that sets them for life, because the average trader is looking primarily at the leverage in day trading Forex currency. When the 10% first found day trading Forex currency, they said "Indeed! The potential is here with this for me to enjoy a very nice living, build wealth, have the life I want and the time freedom I seek. I am going to become great at this because I see that the possiblity of a six-figure income is very real here."

The focus for those that make the six-figure income is to become great traders, while the average traders are chasing money. The difference in focus is on doing versus being and becoming. Who they become in the process is a significant result.

How they both approach the whole matter of day trading Forex currency is another difference. A business is any activity engaged for profit on a regular basis and this is the other realization. So when you started trading, you had opened your own business whether you realized it or not. Your business has been started in rather unique and highly competitive industry. The wisdom, "Treat your trading like a business" is one you've encountered I'm sure. Because a business is a business, not just a hobby, it needs to be treated as such regardless of the industry. The same goes for trading.

But if you've never started and run your own business before, then you've got no prior experience to relate to and fall back on for your trading business. Trading is a unique business with different requirements and unique challenges, which you know if you have run your own business previously.

For the business to provide a respectable, reliable and consistent income stream for the owners, in addition to building wealth and providing financial freedom and security is the goal of owning any business including a trading business. Owning, managing and running any business involves quite a number of roles, each of which has its knowledge and skill requirements. A successful trading business entails much more than simply opening a trading account, getting a trading system and then following it.

The 10% that realize the six-figure income, the freedom and the rewards that trading has to offer, realize that first you must decide that being average just isn't good enough, and that you must become both a great trader and an astute business person - in the business of day trading Forex currency. The average traders lose money and earn a dreadful hourly rate as a trader because they don't make these distinctions.

Day Trading Strategies

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Day Trading Styles
There are a number of day trading styles that make money in the market. This article provides an overview of multiple day trading strategies that professionals use to make money on a consistent basis. This article will contain the pros and cons of the following day trading styles: (1) breakouts, (2) scalp trading, (3) counters, and (4) trend following.

Day Trading Breakouts Overview
Breakouts is the most common form of day trading styles. It involves identifying the pivot points for a stock and then buying or selling short those pivots in hopes of reaping quick rewards as the stock exceeds a new price level. Breakouts is generally the starting place for newbie traders as it provides a clear entry level and it is a trend following system.

Pros of Breakout Trading
Breakout trading has the potential for quick gains. When key price levels are exceeded it will trigger stop order which gives that initial burst. The key component of a valid breakout is that volume and price accompany the move. This will increase the odds of the trade continuing in the desired direction. Breakouts are also easy to identify. Most trading platforms provide methods for tracking volatile stocks and how close they are to their daily highs or lows.

Cons of Breakout Trading
Breakout trading is by far the most challenging form of day trading. For starters, the levels where trades are placed are the most obvious to everyone regardless of their trading style. Think about it, no matter what system you use on a daily basis, every day trading system factors in the highs and lows of the day. Secondly, the vast majority of intraday breakouts fail. This doesn't mean they don't head higher a day or two later, but if your day trading and there is no instant follow through, odds are you are in a losing trade. Day trading breakouts requires the most discipline as you have very little time to make the call as to whether you are wrong or right. The inability to pull the trigger fast and consistently will mount in to huge losses.

Scalp Trading Overview
Scalp trading is a day trading style where a trader looks to make small gains throughout the trading day. This day trading style suits people who love "action" in the market.

Pros of Scalp Trading
The obvious benefit of scalp trading is the fact you are looking for very little from the market. Another plus is that stop losses are very tight. This will allow the day trader to avoid the monthly "blunder" trade that we all have put on one time or another.

Cons of Scalp Trading
Scalp trading like any other form of trading requires discipline, but due to the large number of trades one will put on during the day, it requires an enormous amount of focus. This "all day focus" can make the trading day a tense situation and can lead to high anxiety for the trader. Also, people go into the business of trading for unlimited earning potential and the idea that you do not have to slave away at a desk all day. Well if you plan on scalp trading, kep a bottle next to your desk, because bathroom breaks are considered a luxury.

Counter Trading Overview
Counter trading is when a trader looks for a pivot point, waits for that pivot point to be tested and trades in the opposite direction. This type of trader has a personality where he or she enjoys going against the grain.

Pros of Counter Trading
Counter trading has a high success rate for day trading. Ask any seasoned trader and they will tell you that intraday trading is nothing more than constant head fakes and lies. So, the counter trader is already up in the odds department, because they are going against what the market is telling them. Another plus for counter trading is that when the market fails it often fails hard. Day traders who are able to play morning reversals can make a great living only trading the first hour of the day.

Cons of Counter Trading
While counter trading has a high win percentage, the losers can bring destruction to an account. Even if you win on 4 counter trades, if you do not cut the loser fast, a breakout could run away from you in a hurry. Another downside to trading counter is the next pivot level is too far from your entry, so you will have to set some arbitrary stop limit. Since your stop is not based on an actual price point on the stock, it could get hit quite often. Lastly, setting your price target is also a challenge. Stocks will often appear to make a double top, only to change course just as fast and reclaim the recent highs.

Trend Following Overview
When most people think of trend following, the first thing that comes to mind is a long-term hold buy and hold strategy like the Turtle System. Believe it or not, there are day traders who utilize trend trading systems. The basic method is to look for stocks that are up big in the news and then buy the pullback on these stocks after the first reaction in the morning. Lastly, the trader will place a longer moving average (i.e. 20) and sell the stock if it breaks the line.

Pros of Trend Trading
Trend trading allows the trader to ride a stock for big gains. The day trader will have a limited number of stocks to trade per day, so the commissions are low for this kind of day trading style.

Cons of Trend Trading
If every trader was able to determine which stocks are going to trend all day, there would be a new millionaire created every 30 minutes. No one knows at 10 am, which stocks are going to trend all day long. This means that at best, a trend following day trader can hope to be right 20% of the time. While this trader could still make a killing with such a low win rate there are very few traders that can stick to their trading plan with such a low win rate.

Summary
Every trader is responsible for his or her success. Day trading can be a great money maker, but without a sound trading plan it can push you to your mental limits. The first step in becoming a successful day trader, you have to determine which style of trading best suits your personality.

How to Measure Finance Strength of Online Banking Companies

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A good and decent company abides by set objectives and fulfills these objectives to promote growth and progress. Measurable company KPI's should complement these objectives to maintain integrity while in the process of realizing the said objectives. The question of integrity will always be there since there is more than one way to achieve an objective. Unfortunately, some of the ways can be tagged as unethical to common business standards, thus, the issue with integrity. Methods, like how to measure finance, can be intervened. Results can be tampered just to show a solid intra-company economy, despite the fact that the company is suffering losses.

Now, why would a company do that? The answer is simple. A revealed weakened state does not attract investors at all. On the contrary, investors flee at the first sight of heavy loss. Putting it at a more understandable perspective: Would you pour precious water into a leaking container? If you are aware that the container has a leak and you deem your water precious, pouring it in would just mean you are wasting your water, and you are very well aware of the process. It makes sense when placed into this context. Or, does it? Either way, investors will never waste their money on something that could mean a sure loss on their part when it comes to ROI or returns on their investments.

The strength of online banking companies is evident at a distance. Even if you have not been to their webpages or have not read some of their company background, the people they have done business with can pretty much mirror what they really are. Satisfied customers are walking ads for these online banking companies. So, this is one way of measuring their finance strength, through people they have done business with.

Online finance companies, more or less, revolve around these two common objectives: customer acquisition and minimized interactions cost. For sure, both objectives are easy to understand. For customer acquisition, it simply means the accumulation of customers to do business with. As for minimized interactions cost, it means that the company will keep expense at a minimum for every interaction done between them and their customers. Since there is mention of KPIs indirectly affecting a company's ways in achieving company goals or objectives, it will be wise to determine specifically what these are.

Customer acquisition has a separate set of KPIs; these are account sign-up, addition of new accounts, application downloads (since the company is online), pre-approvals (for new accounts opened), and locating an agent. High marks on these measured KPIs ensure the accomplishment of the customer acquisition objective. The KPIs for the second objective, on the other hand, are as follows: average cost/interaction, self-service visits, response (email, calls, etc.), and web percentage of customer interactions.

Summing up, the two ways on how to measure finance strength of an online banking company are through the people the company has done business with and the strict compliance to the KPIs the company follows to achieve their objectives. Fulfilling these two and observing integrity every step of the way will not need a cover up of losses since a company will never experience loss after it accomplishes its objectives without cheating through them.

The Do's and Don'ts Of Getting Finance For Your Business

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Let's face it, if you want finance for your business, times are hard out there at the moment. Banks and other lenders are a lot more cautious about who they're going to lend to...at the end of the day they want to be paid back! So bearing that in mind, here are my top do's and don'ts for getting finance for your business.

DO....WRITE A BUSINESS PLAN

You're not going to get very far without doing this tip. Lenders will want to see that you've thought everything through. They may also come back with questions, comments and concerns about your plan - don't expect that the first time you hand it in will be your last. But as long as you're patient and are prepared not to give up, you should eventually get what you're looking for.

DON'T...THINK IMMEDIATELY ABOUT A BUSINESS ANGEL

How many times recently, have I heard people saying they'd like to get money from an investor or business angel? There are other options you know. And if you're looking for less than £100K, you might be better off going to see what a bank can do for you.

DO....SHOP AROUND

These days, shopping around is more important than ever. Visit all the lenders you can think of and see what they can offer you. Don't be tempted to go with the first lender who offers you money - make sure that it's the right deal for you.

DON'T...GIVE UP

Lenders want to see that your business idea is viable and want you to be realistic about being able to pay the loan back. Bearing this in mind, it is highly likely that they'll come back to you asking for some more information. Don't take this personally - they're just trying to reassure themselves that you're a good risk. Give them the information they're looking for without getting stressed and don't give up until they say no for the final time. I recently worked with a client on his business plan and it took 7 attempts to get the funding he needed. He was ready to give up, but we hung on and got the money.

DO...HAVE SOME PATIENCE

Your loan is NOT going to be sorted out next week. In this current climate it is taking between 1 month and 6 months to get the money you need so plan your business around this.

DON'T...BE UNREALISTIC

Time and time again I hear people say "I'd like to borrow £x" and when I ask them what the money is for, often they're unable to tell me. Make sure you know exactly what you're borrowing the money for and be realistic about this. There is no point wanting to borrow £20K and only being able to spend £5K. Would you lend me the money if I told you that? No - and neither will lenders.

If you found this article useful, you might also be interested in the other guides we've got:

• How to get the money you need to start your business - price £20

• How to pitch successfully and wow investors - price £50

Ways To Measure Finance

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There are several ways to measure finance. This is done to ensure that the business is doing right and is meeting its financial targets. Sometimes, this is measured in a monthly basis. In some companies, there is a quarterly business review in which the gains and losses are measured and from these data, action plans can be formulated that will specifically target pain area in the company that significantly impacts the financial aspect of the business.

In many cases, corporate leaders measure their financial status by also measuring their company's net worth. This is a data driven approach that helps them drive the business and forecast how the rest of the fiscal year will be. The first thing to do here is to list all the largest asserts of the company. It is important in this part that the estimation of the assets' worth is close to reality. After this, the liquid assets are added. These assets include the cash available in bank accounts, whether they are savings or checking. Once all these are added, you now have the total assets.

What needs to be done next is to calculate the liabilities of the company. Of course, this includes outstanding loans and leases. This may include mortgages if the company has not fully paid for its infrastructure. Add to these the direct debts of the company if there is any. Once this is done, the total liabilities of the company is identified. The liabilities should be subtracted from the assets to calculate the net worth of the business. If this hits negative, this means that the company is not in a smooth sailing status.

Another approach to measuring financial growth is through the calculation of investment performance. This can be done to manage assets and make a financial forecast based on historical data and financial analysis. The first thing to do here is to set a timeline. Many companies do not measure financial strength on a monthly basis. What they do is to measure it quarterly but some may do it annually. For small scale businesses, a monthly assessment may be done to manage the business better. This is especially applicable to startup businesses.

Records of the findings should also be kept. This is because financial analysis is not as simple as subtracting the difference between two figures. When in business, there will be a definite series of cash flow that will happen. This may be about taking funds out or putting funds in. either way, this will impact how the earnings are interpreted. In a simple scenario, let us say that $1000 was placed as a capital in an investment. After two months, the total asset has ballooned to $5000. However, on the second month, $3000 was added to the original investment. The question here is, did the company earn $1000 form the original investment or when the $3000 was added?

Financial Consultant: Top 10 Tax Savings Tips

W-2 Employees have tax options. Although they often feel left out of the tax-loop, those who work for W-2 payroll have a wide variety of options for saving money at tax time. The secret to getting the best tax benefits lies in knowing what your options are and using all the options available to you.

1. Keep all business related receipts. IF you purchase something required for your job and are NOT reimbursed by your employer, that item may well be deductible for you as a ‘job related expense’. As a matter of habit, keep all receipts for job related expenses.

2. Be aware of all deduction options. When you know what deductions you can take at the beginning of the year, you are more likely to save money later in the year on your tax debt. Job related travel, safety deposit boxes, and more are deductible if you choose to itemize.

3. Don’t loose out on tax credits. Tax credits are created to benefit those who have unusual expenses during the year that are not legally deductible. Using the tax credits provides a benefit of returned cash for your expenses when you qualify.

4. Consider Tax Free Investments. When investing money for retirement or education benefits, consider a Tax Free Investment. The lower value of returns may balance out on reduced taxability of the investment.

5. Take a loss. Occasionally, the pay off for selling an investment at an apparent loss, can result in dramatically reducing your tax debt, gaining a benefit of less money spent, and more money gained. Your Tax Consultant can guide you, but will need your Tax information prior to the end of the year.

6. Charitable Donations. More than money, your donations to charity are deductible. If you donate clothing, furniture, or other merchandise to a recognized charity, get a receipt and use the receipt as a deduction on your taxes. Mileage driven for charity is also deductible.

7. Gifts – giving saves you money. If you are retired and your children are due to inherit a large sum of money, gifting them the maximum allowable amount each year is often preferable to maintaining a huge estate and paying estate tax. Consider gifting your children and allowing them to enjoy their inheritance early. (Your tax consultant will have other options for saving your retirement tax moneys also.)

8. Maximize your Retirement Contributions. If you’re in that ‘other category’ too young to retire, too old to have children for deductions, it’s often recommended that you maximize your Retirement Contributions. This contribution can save you money anytime, and provide a viable option for retirement.

9. Put children on the payroll. For legitimate expenses, if you pay your children (over 14) for deductible expenses, pay them a check and pay taxes. Allow them to pay
their own expenses with money they earn.

10. Double-check your Tax Documents. Many errors are made on tax documents that would save you money if caught before taxes are filed. EVEN if you have a competent Tax Consultant/Preparer doing your taxes, double-check numbers, placement of numbers, and items on your tax documents for correctness. Accounting errors can cost you money.

Having a Tax Preparer who willingly offers information about your Taxable Income and Deductions provides far better service than a minimum service whom you pay less, but end up paying more in taxes. Consider the additional amount you are paying in taxes without quality consultation, when considering your Tax Consultant’s Fee.

Magnifying Your Money - Tips in Business Finance Management

In putting up any kind of business, the end goals are primarily profitability and progress. Magnifying your money is the target endpoint. To be able to do such, you ought to focus on a very important aspect of your business- Business Finance Management. Below are some tips that you can follow not just to ensure the sustainability of your company, but to probably maximize its potentials.

1. Raise Money- Lots and lots of it. Businesses need more than sufficient funding. They need funds for the expected expenses, more funds for unexpected problems, and reserved funds for possible beneficial ventures. As such, when you are attempting to look for funds and possible investors, maximize the opportunity. Prepare big time but feasible business propositions. When opportunities for investment and profit knock on your doors, take chances and welcome the chance. However, you ought to grab the risks only after you have carefully examined the possible consequences of your business venture.

2. Acquisition is not always the answer. During business ventures, there is always plenty of room for additional expenses. Your first budget allocation for a certain expense may not be enough. You may need additional equipment and materials that require you to make unexpected expenditures. In such cases, note that buying what you need is not the only option. Look for alternatives such as renting or leasing the equipment you need. However, do take note of the rental or leasing fee versus the acquisition expenses, in accordance to your time frame for equipment usage.

3. Inform the concerned. In business ventures, you ought to keep pertinent parties aware of whatever is happening in your business. Pertinent parties refer to those who will be affected by the profitability or fund inadequacy in your business. These parties include your bank, your investors, your suppliers, your customers, and even your inland revenue representative. Realize that keeping them informed maintains good business relationships. It may also heighten their concern for your business needs such as additional funds and/or more profitable business deals.

4. Welcome Renegotiations. There are some cases when your investors, suppliers, and customers ask you for renegotiations on your transactions. Be open for such possibilities and options. Avoid limiting yourself to uniform business deals. Recognize that suggestions made by the people you are working with are worth your attention. This will not only help you maintain good business relations with them. Instead, it can open your doors to business opportunities which may prove to be beneficial in the long run.

5. Stick to strict payment and debt procedures. Renegotiation starts and ends with business deals. They should not extend to your payment procedures and debt accountability. When allowing your customers to go on credit, do a thorough financial check first. Set clear procedures for payment and be sure to follow them, without exceptions. You should also set a specific deadline for each debt. Realize that a service or product on credit is a potential loss for your business finances.

6. List everything. This may be a tedious task but such may prove to be very beneficial for you in the end. Realize that no matter how big or small your business deals are, all of these mirror how you manage your finances and all of these affect the overall outcome of your business venture. As such, you ought to practice proper bookkeeping and accounting

Tips For Achieving Financial Independence

Most of us seem to forget one of the most obvious things in our life even though it is that simple; money is only a tool to help us to do what we want, to live out your dreams or goals as far as money can by them. Have you ever considered to live on little money? You can even live well with little money but the biggest benefit of living on a small budget now, is that you will be able to live a life of leisure where you can spend your time and energy doing things that you choose to do within some years. To gain financial independence whether your purpose is retirement planning or another purpose, there is more than one way to go. Roughly there are two ways to obtain it:

• Reducing your expenses
• Increasing your income.

Reducing your spendings

This is obvious - but so many people have not understood it yet: Always spend less money than you make. Continually track and review your purchases for the purposes of keeping track of your money as well as learning from your previous mistakes. We are actually talking about a change in your lifestyle, and you can't expect to do this change overnight.

Never use money on impulses but always plan and prioritize your purchases. You must understand that money is not the important thing, the important thing is to have a good life. Therefore sit down and find out what is really important for you in your life and prioritize your use of money according to that. Focus on achieving your goal and never lose sight of it. Be creative and constantly look for ways to live well without much money. Who said you couldn't live a good life frugally?

When you plan to use money on items for your household like a dish washer, vacuum cleaner, refrigerator etc. only buy what you absolutely need and see that it lasts as long as possible. You must ask yourself: Will this item benefit me? You must continually go through a process of selecting strategic use of money as well as do all you can to save money on all your purchases.

If you owe money, make a debt elimination plan and stick to it This is especially important for consumer debt; get rid of it and the sooner the better. Why not move to the countryside. The point is that you should find a place to live that limits your expenses where you at the same time can live a good and healthy life.

Increase your income

If you don't already have it, you should find a job that pays well and doesn't add a lot of cost to your life. You should continually look at improving your income by

• getting a higher paying job
• earning more side income.

The cost you save by changing your lifestyle - your surplus - should be invested. Keep investing the surplus and accumulate it. If you can come so far that you are able to invest $1,000 to $2,000 a month for 12 to 15 years or even better if you can increase your savings by a few percent each year, you will be able to withdraw a decent income from the interest on your investment.

It is possible to re-engineer your life to live well even on little money. If a financial emergency should occur, it is necessary to have some money available. Therefore your should establish and maintain an emergency fund. The more income you make, the more money you can save with a frugal lifestyle. If your goal is to retire, remember that the more income you can get and the lower expenses you have, the quicker you can retire. If you get used to living on a moderate amount of money and prioritize what you really want to do, as far as what money can buy, you will be the master of your time and money - in other words you will be in control of your life.

Tips in Developing a Financial Scorecard

Businesses have learned the hard way. It has taken years and years before certain management principles were developed. Add to this the actual processes in managing, such as a financial metrics and financial scorecard. Scorecards are used only not in the financial aspects of a company, but also in terms of performance and productivity. Scorecards are also used in clinics and hospitals. Wherever there is a job that needs to be done, scorecards are used.

In the financial world, scorecards are used to measure how well the company is performing in terms of revenue. There has to be clear targets set to allow the leaders of the industry or business to accurately and objectively gauge whether the business is earning or not. This is a key tool that will help business leaders to develop action plans and make wise decisions regarding the direction that the company should take.

Just about the same with other scorecards, measuring financial success has metrics. This may vary from one company to another, but these are all basically the same in the output or goal why this process and principle is being used. And that is to measure the company's actual strength in terms of financial stability and credibility.

First off, one needs to measure the overhead expenses and compare it against the gross sales or income. What others do is incorporate data in their balance sheets. Overhead expenses are things that a company paid for which are not attributed to business activity. An example of an overhead expense is rent. Even if this is not a money-generating expense, rent is necessary to be paid since without this expense, there will be no place for production. Another example of an overhead expense is insurance. Paying for insurance does not generate money, not even in the form of interest. However, this is necessary since no one knows when calamity would strike.

How a scorecard is presented is also a factor to consider when developing the tool. One may want to present expenses by division, gross and net earnings by division or department, overall billable headcount per division, and overall income per division.

The way data is presented is critical in understanding the figures. If the figures are presented in a convoluted way, this may lead to misunderstanding or misinterpretation of data. As an ultimate result, managers will look at a false solution, should there be pressing problems. One might think that lessening manpower in a certain division will lead to effective cost-cutting results; but in fact, this decision may not at all be helpful to the company's growth and development. Another issue that may come up is that managers may not see the potential of a specific product or line of business if the numbers are not shown right in the financial report.

Always remember that data is integral to the success of any company, especially money. If the data presented in the reports are wrong, then it may be concluded that the financial scorecard does not really measure performance. Rather, it dooms it.

Evolution of Money in the World

The evolution of money in the world is something few of us truly understand. While I have learnt to believe only recently money comes to you easily when you think and act in certain ways, not through more hard work and struggle.

We have been conditioned as people growing up through society to believe more hard work will create simple abundance. This could not be further from the truth, harder work will produce more struggle. Life's abundance is a result of conditioning your belief system into attracting abundance with the evolution of money in the world.

If evolution of money in the world were to be distributed evenly amongst us, we would each be worth $3 million. Now that's a far cry from reality! How does this work?

Money of the world is just that, an evolution of money in the world and if you are not aware of how the process works attracting money becomes almost impossible.

Consider these points when attracting wealth into your life;

* Why if you have been conditioned for hard work and struggle, you'll attract "more hard work and struggle", instead of becoming rich.

* Changing your wealth conditioning

* How you feel about yourself will determine your income!

* Do you charge enough for your time and services?

* Be spiritually comfortable with being rich

* Avoiding cheap and discounted products, and only buy good quality!

* As children we grow up thinking it's bad to become wealthy.

* If your negative you'll repel money.

Live and learn your way to wealth.

Startup Financial Models

To understand the need and importance of startup financial models, we first need to know what exactly it is that the financial sector involves itself in. Financial institutions, such as investment companies, banks and security firms handle the flow of cash, the amount of which can often be of such a nature as to make it unpredictable. In some cases this amount is dependent on certain future conditions, as in equity or bonds. This makes the very nature of financial transactions uncertain and unstable.

Choosing the right model

A particular context or decision should go in the actual realization of practical startup financial models. This decision or context depends on the horizon within which it has to be located. Many businesses and other financial activities require a limited horizon, while others operate within horizons that may stretch for weeks, months and maybe even years. Models that have been designed to work with continually and frequently changing data and processes would not be applicable in instances which are gradual and remain static for longer periods of time. Hence the need to choose the right type of financial model is a crucial one.

Which models are good?

While the large number of uncontrollable factors make it difficult for most startup financial models to work as focused tools for predictions. However, these models can be used for various other purposes such as risk and profit assessment, projecting the values of assumptions that are made based on existing market conditions, calculating the margins that are needed to avoid adverse situations, and various forms of sensitivity analysis. These are necessary to regulate minimum capital investment, capital allocation and measuring performance.

The best place to start a financial model from, is a profound understanding of the case that requires this model. The approach is partially fulfilled by those startup financial models that contain parts of market behavior, but reality can often be vastly different from the theory that is to be followed. To understand fully the nature of all the forms of risk that the business might be exposed to, the financial model should clearly reveal the possible areas of dependencies. These dependencies can be seen between different kinds of activities and between consecutive time periods. It is also helpful if the model explains the relationship between asset types and types of business. In such a case, the way that the two sides of a balance sheet interact would be shown up clearly.

Some startup financial models

There are a number of startup financial models available for various businesses and the particular situations that they encounter. Some of the more general financial models are, comparative financial analysis, cash flow forecasting and business plan models. These models look to setting up the best methods of controlling the cash that comes in and goes out. However, these are only very few of the models that are available and there are a number of business specific startup financial models in the market to choose from.

Causes of Financial Crisis

Living and Spending Beyond Your Means

After a few years, even a small, month-to-month negative cash flow will lead to financial crisis, and it will take important changes to overcome it-keep track of what you spend.

Saving regularly, even a little at a time, will give you a cushion you can rely on when something unexpected happens. This means thinking about saving before a big splurge, such as buying the newest plasma television, or finding ways to save on the little things you spend money on every day. Your savings will give you more flexibility in life choices and a financial cushion that you may need if something goes wrong.

Divorce

Divorce means expenses increase while household income declines. Divorce itself pulls in legal fees, moving costs, and countless other expenses and they simply start adding up. In addition, you may be responsible for debt that your spouse accumulated, such as taxes car payments, or other instances of joint obligation.

To ensure you are in the best position if divorce occurs, have your own credit card and be responsible about paying it on time and keeping your balance down. Don't incur all of your joint expenses under your name, and ensure that your joint assets are under both your names.

Divorce is a stressful time, and you may feel like splurging on yourself. To keep those understandable impulses in check, look at where you want to be financially in a year. Having lower debt or higher savings will give you confidence and security.

Losing a Job

With the inevitable fluctuation of the American economy and the changes occurring in American business, many Americans will experience job loss during their lifetimes. Unemployment is never fun nor does it help with overcoming debt, and, as a result, can compound on all the other stressful things in life that cause debt-such as divorce.

Most financial experts advise having at least three months of your disposable income saved and available for emergencies such as unemployment or divorce.

Depending on the job market and the overall health of the economy, a job search can easily take three to six months - or more. Make sure to apply for unemployment right away and allow the benefits to mitigate the effects of unemployment. If you know ahead of time that your company may be downsizing or closing, limit your expenses and curtail your spending.

Don't pay your bills late or incur other fees. If you can't pay all of your bills in full, call your creditors before you get behind, explain your situation, and ask for a payment plan that enables you to pay what you can.

If you must take a job with less pay than your previous job, adjust total spending to that reduced income and create a realistic plan for paying off any debt incurred during unemployment.

Unexpected Health or Medical Expenses

When a health or medical crisis hits you or your family, it can be devastating both financially and emotionally. If unemployed, lost income through medical expenses can be more than just stressful. Even with health insurance, the co-payments add up very quickly. Identify where you can cut non-essentials and ensure that no big purchases are made.

Track your medical and health expenses carefully. Accounting errors - by both medical providers and insurers - are not uncommon and can add unnecessarily to your costs. Also, explore all your payment options.

* Review bills to ensure they are accurate.
* If you have health insurance, check each benefit statement to be sure you are receiving coverage for all the services your plan provides.
* If you don't have health insurance, talk to your hospital or health care provider about programs that offer free or discounted care.
* If you are unable to pay your medical bills on the payment terms offered, talk to your health care provider, hospital, or doctor about a payment plan.
* If you are unable to pay other regular bills in full, let your creditors know your situation as soon as possible, and ask to work out realistic payment plans so you don't end up incurring additional costs.

In the World of Investments and Finance

Investments includes how to value stocks, bonds, and other financial securities; the theory and practice of portfolio management; and the functioning of the securities markets.

Financial institutions examines the role of financial intermediaries, especially commercial banks, in the financial system and the principal managerial issues facing such institutions. Investment in companies may be in shares or by direct investment (private equity).

Islamic scholars have made some concessions on permissible companies, as most use debt either to address liquidity shortages (they borrow) or to invest excess cash (interest-bearing instruments).

Financiers are rightly rewarded for taking risks, which by their nature cannot be entirely managed away or anticipated. The tendency for success to breed complacency and recklessness is as ingrained in financial markets as it is in any other walk of life.

Financial mathematics is the study of financial data with the tools of mathematics , mainly statistics . Such data can be movements of securities?stocks and bonds etc.?and their relations.

Students will learn how to establish appropriate investment objectives, develop optimal portfolio strategies, estimate risk-return tradeoffs, and evaluate investment performance. Many of the latest quantitative approaches are discussed.

Students interested in financial careers receive an excellent professional financial education through the College of Business? Finance Program. You will find highly qualified faculty members, well defined jobs in the field, and other resources, which properly used will lead to excellent career prospects.

Students are also required by the Mathematical Sciences Department to pass a Qualifying Examination, covering major and minor topics, to certify the students' preparedness to begin research. The minor topic may be numerical analysis, statistics, or finance/economics. Students majoring in business need only three additional economics courses to get a minor in economics.

Finance is about ideas. And one of the nice things about finance is that the same ideas come back again and again - but dressed up in different disguises. Finance is a specialty that deals with the allocation of resources on the corporate, institutional and personal levels.

Money is the life blood of the economic system and the flow of money through corporations, capital markets, and financial institutions are integral to how that life blood gets pumped through the system, how it nourishes the health of the system, and how the economy sustains and perpetuates the standard of living that we enjoy. Finance is fast, easy, and free. You can create and maintain as many portfolios as you like with a single Yahoo!

Finance is responsible annually for the audit, budget, capital improvement program and the long range financial plan for the City. Finance also directs the issuance of municipal debt and industrial revenue bonds.

Accountants and finance specialists are essential to a firm's growth and development. If you are interested in a career in this field, you are fortunate to be able to make use of the many career opportunities which abound worldwide in this growing area.

Accounting and Control, Business Studies, Economics) or Master's programmes at other universities can also be included in your curriculum after approval of the Master's in Quantitative Finance programme committee. You can thus create your own future career profile.

Gaining Your Financial Freedom

Financial freedom may seem like an impossible dream to many. The key is to never give up on that dream. Think of it as an attainable goal and believe that you deserve it. Here are some simple techniques that can help you to obtain your dreams and financial freedom everything your heart desires in this lifetime.

Visualization-When you visualize, you see yourself getting checks in the mail, or a balance to a credit card statement marked "paid in full". It might also include images of your dream car and the garage you park it in, which leads into your amazing new home.

Writing-This is one of the most important steps. Writing down all your financial goals then placing it somewhere where you see it everyday can be very powerful. It is a constant reminder of your intentions.

Budgeting-A financial advisor can help you to keep your spending in line and gain financial freedom. It can help you to save some money and pay down some of your debt.

Accountability-It is important to find one or more persons to be accountable. This can be anyone that you trust that you know is reliable when it comes to dealing with money. Choose either a professional or peer who always seems to have money. This could be you some day.

Affirmation-Make sure you always tell your self great things. It will help you make it through those periods of discouragement, especially if you have made a financial mistake. Gratitude-Be grateful for the things you already have. This helps you to maintain a more positive attitude rather than focusing on the things you are not grateful for.

Now take those first steps and start realizing your dreams. Life is short but suffering through it may make it seem like an eternity.

Passive Income - Easy Money Without Having to Work For It

Passive income is basically money that comes to you day in and day out without having to spend any physical effort to earn it. Passive income keeps flowing to you whether you do anything for it or not. Now, is that easy money, or what?

Even better, passive income is usually tied in some way to inflation so, by association, it usually keeps growing in size. In my opinion passive income is one of the easiest ways to make extra money, you'll ever find. Once you understand the concept of passive income and how to get your share of this easy money, you are well on your way to financial freedom.

Examples of Passive Income
There are many examples of passive income and ways to achieve your ultimate goal of financial freedom. Here are just some of the ways to earn extra money through passive income investments:

- Investments
- Royalties
- Commissions
- Franchise Fees
- Capital Growth Such As Shares And Property Trusts
- Internet Business

The Difference Between Passive Income and Residual Income
Two investment terms that are often confused with one another are residual income and passive income. The difference is fairly easy to explain. Passive income is generated without any effort, or very little effort, from the investor. Where as residual income is generated from the initial investment by the investor.

Real estate investing can produce both residual income and passive income. If you are looking for ways to make extra money through residual income investments in real estate you can buy a property and resell it, providing owner financing. This means that instead of the buyer securing financing through a bank or mortgage lender, you agree to carry the note and they submit monthly principal and interest payments to you. These payments are considered residual income.

On the other hand, if you want ways to earn extra money through passive income from real estate investments, you can invest in trust deeds. Trust deeds are private mortgage loans. This type of investment is passive because you don't have to actively participate in the management of the account to make money.

Passive income can be generated from business opportunities. However, for tax purposes the passive income cannot be a result of the active participation in a business, nor can it be derived from interest, capital gains, or dividends.

Some of the other ways to earn extra money from passive income investments could involve investment in real estate properties to use as rental properties or investing in stocks or bonds. The incomes you generate from these investments are also passive income.

Generating Your Own Passive Income Source
Just imagine the possibility of waking each day and without having to do anything; you have more income than you had the day before. Every day you wake up and your income has grown. Easy money, what a great result!

If you are one of those people who, have never had the opportunity of enjoying passive income but are looking for easy ways to make extra money, there are always ways to get involved in passive income techniques. Do some research to find your opportunity and then enjoy the opportunity of earning some easy money without having to work for it.

The Futures Trading Success Ladder

First Rung: The Education Of A Trader

Becoming a successful futures trader doesn't happen overnight. You don't read a book and Voila! another successful futures trader dazzles Wall Street. It would be nice, but it's just not going to happen. Once you decide to become a futures trader there's a lot of hard work ahead.

You may already be reading and visiting internet sites or participating in a local traders club. These are great places to start your education. You'll gain ideas and theories from which you can start to build your system. But they can't deliver a fully realized system, ready to use and proven to perform. As in many fields, education is only the first step to success. You have to learn by doing. You can't really learn how to trade without actually trading.

You can save yourself years of lost time and money by following in the footsteps of a master trader. Futures trading is a complex profession. It is often easier to learn successful trading techniques (including what and how to chart, indicators to watch for, and how everything comes together) by looking over the shoulder of a successful professional trader. It's the apprenticeship approach to learning and it has considerable value in futures trading.

If you want to fast track your education as a futures trader, you need to find a successful winner to emulate. There is no faster way to learn the intricate ins and outs of this complex venture than by watching someone who has already achieved mastery. Look for someone who trades daily and makes money consistently. Many people talk the talk but few actually walk the walk. You don't want to emulate someone who has just written about futures trading, you want as your mentor someone who has proven his or her success in the marketplace.

Once You're Trading, You Really Begin to Learn

Loss is the futures trader's bugaboo, that annoying little wisp of fear in the back of your subconscious that keeps you from pulling the trigger and achieving success. To succeed as a futures trader you have to squelch thoughts of previous failures and concentrate on learning the new skills that will lead you to success.

Learning is a four-step process, each step building upon the previous step and leading us to the next step until we reach our goal. We move from unconscious to conscious knowledge and from incompetence to competence as we move up the learning ladder.

The Steps of the Learning Ladder

Unconscious Incompetence: You Don't Know What You Don't Know!

Everyone starts out at this level. You're curious about futures trading. You are mesmerized by the potential rewards (are those $$ in your eyes?) and think you can beat the high risks. It just doesn't look that hard. We call this the "babe in the woods" phase. You're totally clueless. You have no idea how much you need to learn to become successful.

Conscious Incompetence: You Know That You Don't Know!

You've had a couple of losses and gotten the wind knocked out of your sails. You feel incompetent and realize just how little you know. You finally realize how much you have to learn before you can start trading profitably. You have entered the "fire in the belly" phase. You are driven to learn everything you can. You are totally focused on developing, practicing and perfecting your system.

Conscious Competence: You Know That You Know!

Magic! You're winning! Your system is working and you're on top of the world. But you are still conscious of every detail, watching every indicator constantly, working hard to keep everything in focus while you work your system. You are "in the groove" and working it.

Unconscious Competence: You Don't Know That You Know!

You have arrived! You are trading in the zone. You are working your system automatically and effortlessly. You have become a master trader!

The Current Lending Attitude For Development Finance

Banks and lenders in the UK and other parts of Europe are said to have been changing their attitude to lending. Development finance experts have noted the change due to credit crunch. Some lenders do not allow speculative development lending anymore contrary to more liberated lending practices in the mid-2007. Others are only offering development finance UK to more experienced developers at the right location. Most of the lenders became more stringent in their conditions to lending. Generally, they have become more cautious and diligent compared last year.

These notable changes may be evident in this year's lending for residential or commercial development finance. Others may find it hard to get 100% development finance because of stiff conditions from lenders. However, it shouldn't alarm developers at all. The credit crunch is worth the note but not the worry. The property market is changing and has been volatile than ever. Nevertheless, it shouldn't stop developers to continue to meet the high demand for property development. If there are demands then by all means there is potential for feasibility and high returns. Appropriate location, feasibility and right project planning and projection are still the key to successful property development. And this has always been the key even during liberated times on development finance UK.

In other words, banks and lenders are just responding to the change in environment of the property development. Once the environment changes, everything involved in the industry changes and that includes the lending attitudes. Frank Maertens, EMEA Managing Director Debt Advisory, CB Richard Ellis do not even attribute the shift entirely on the credit crunch. He said that banks were cautious ever since; only that the credit crunch has triggered it to be more cautious. Besides, there are various responses of lenders in different locations. What developers have to do is simply deal with individual lenders and ensure that their projects are feasible and worth the time and effort for development finance UK.

7 Tips For Effective Financial Management

In some organisations, managers and leaders fall into the trap of believing that financial management is something that the accounts team are fully responsible for. While there will be areas like cash management, payroll, paying suppliers and collecting payments from customers that are likely to be handled by the accounts team, financial management falls into the remit of all managers and leaders. Mangers often have concerns about this area, often believing that it is difficult and complex. The truth is that if you are an expert in your area of the business, you can excel in financial management. So what are my key tips?

Tip 1: Be actively involved in setting a budget

Most businesses now devolve budget responsibility as much as they possibly can. As a result, managers have a chance to be actively involved in determining things like:

• Sales volumes

• Temporary staffing cover for vacancies

• Staffing levels to deliver the sales

• Buying preferences in terms of products that will be used in delivering agreed volumes

• Investment in new equipment or facilities

Don't miss out on your chance to determine your budget.

Tip 2: Be clear on your assumptions

A budget is a plan for the future based on the best evidence you have at the time you prepare it. You will have to make assumptions about things like sales growth, staff turnover, sickness, price inflation, etc. Make sure that when presenting your budgets the assumptions are clearly stated.

Tip 3: Work with your accountant

Your accountant who works with you in the business is essentially your personal business advisor. Use your accountant in this way and you will reap numerous benefits. Your accountant gets a better understanding of your area of the business and what the key drivers of revenues and costs are, which will be immensely helpful when it comes to reviewing performance throughout the year.
In addition, your accountant can model results for you based on different assumptions and help you to get a much clearer picture of the risks that might need to be managed.

Tip 4: Share the budget with your team

As a manager and leader, your success depends on the results of the team. Take the time to share your budget with your team, including the key assumptions on which it is based. If the team know what they are aiming for in terms of financial results, they will look to do the right things operationally to get the best result.

Tip 5: Take responsibility

When the going gets tough it is so easy to start to look elsewhere for excuses. If you have been involved in setting a budget which you have signed up to, focus your energies on getting results rather than the injustice of the current situation.

Tip 6: Monitor performance and take action

Make sure that you have a process in place to carefully monitor your actual performance against the budget. If things are going well see if there is more you can do to boost performance even further. If on the other hand things are not going as well as expected, focus on the changes you need to make or action you need to take to get back on track.

Tip 7: Focus on the most important numbers

When it comes to financial management, managers can sometimes get lost in lots of detail and trivia. Be clear on what are the 2-3 big numbers that you need to pay attention to, as they will more than likely constitute about 90% of your budget. In most businesses this will be:

• Income from sales or services

• Salary costs of employees

• Major non salary cost such as materials

Make sure that you have as good an understanding of what impacts on these numbers at the business unit level so that you can keep things on track.

At the end of the day, internal financial statements such as budgets merely reflect what is happening operationally in a common currency called money. Keep this at the forefront of your mind and you have a great chance to excel as a manager.

Tips For Future Financial Planning Portfolio For Retirement Employee

Have you ever thought that how you should do future planning for your children? We are now discussing related to the opportunity that you should deploy your future planning. Opportunity means life insurance, mutual funds, equities and fixed deposit should all features are Financial Planning options for your children. And also you make plan for your retirement and other objectives, like as buying property, investment in various industries area and so on.

Mutual Fund:

Nowadays; mutual Fund is the most popular option. Mutual fund is the best option to make money from difference financial services. Investors can invest money in the different segments like gold, equities, debt and also property and various mutual fund schemes. Important thing is that investing and managing your money is need expertise skill. For example: The Fund Manager: Investors can get bunch of benefits by using experience of fund manager by paying a little fee at one time or annually.

Fixed Income:

Fixed income or Fixed Deposit, name itself suggests that fixed income, Get secure return on the maturity of the deposit. Positive point of Fixed Deposit is that investor will get fixed income at the time of maturity. This option is also very popular in different financial services. Fixed income has the capacity to convey a degree of constancy to the Objectives.

Public Provident Fund:

Usually, Fixed Deposit by Banks has been well-known investment avenues in this part. Same, small investment schemes like Public Provident Fund can also aspect in the group.

Life insurance is the one of the basic saving system of this type of portfolio. It is the essential requirement of Every Human being.

After retirement there are the most thing activities Financial Planning will acquire. If you don't know where the money is coming from once you have established working, you won't have a very pleasurable life.

Retirement from the any services which is makes considerable changes in employees life style. Different Occupations have different retirement ages. There are many reasons behind the employees leaving the jobs.

There are many person get so caught up in the hustle and bustle of their daily lives that they don't even consider having a retirement plan until it is too late. This is the main reason to lack of financial planning behind it.

Employees must need to start planning for this important thing. Now in these days, there are many finance company interested to help to employee for their retirement plan through different choices. And also they give much opportunity by conducting seminar for more information on this area. Because of financial companies have made research on the same and make database by gathering sophisticated data. These all companies have a lot of idea behind employees retirement planning.

And finally, we hope these article will give you more finance technique, more investment criteria and tips for financial planning. We hope your future after retirement is bright and your remaining golden year pass with enjoy.

5 Crucial Home Business Tips to Realize Financial Freedom

Starting your home business is the easy part, but realizing your long-term goal of financial freedom takes much effort and dedication. There are many ways to operate a home business, but the tips below outline some solid principals you should follow to earn a steady income from home no matter what your home business.

1. Set Goals for Success

Setting goals will help you stay focused on what you want to accomplish within your home business. Start with long-term goals for where you would like to be financially five, ten, even fifteen years from now. Next, create short-term goals for daily, weekly, and monthly achievements. To attain financial freedom is a great long-term general goal, but it will take many small goals to reach this level. You'll need to set small goals to create a steady cash system. A home business will go nowhere without goals, so take this step before starting any other tasks.

2. Create a Pleasant, Professional Home Office

Evaluate your home business workspace. Do you work in a corner of your bedroom with a desk and computer? Is your office usually the kitchen table between meals? Do you try to work in the living area while the rest of your family enjoys conversation or entertainment? If you answered "yes" to any of these questions, you'll probably need to make some changes.

Create an office space that is for work only. Even if it's in the corner of another room, block its view with office sectional walls or some type of barrier wall to give a sense of privacy. An office should be just an "office" and nothing else. When you arrive at your office, you're ready for work. When you leave the office space, the workday is over.

3. Get Organized

Once you have a defined work area for your home business, fill it with supplies and tools to make work easier and more efficient. Choose a desk and chair for comfort as well as back, neck, and arm support. Desks with shelves and cabinets can make organizing your office a cinch, especially if you have limited office space. Also, keep a daily to-do list, calendar, and schedule book to prioritize tasks.

4. Stay on Schedule

When you work at home, it's easy to get off schedule because of interruptions or the temptation to take time off for leisure activities. Keep in mind that every moment wasted today usually means more work the next day. Eventually, you'll be working around the clock and never seem to accomplish anything. For home business success, keep a steadfast work routine daily and set a work schedule you can stick with every day. Develop a mentality that every job is actually a pay-by-the-hour job. Every hour spent working will help you make money and gain financial freedom.

5. Separate Business from Personal Tasks

Once you set a schedule, stick to it. Don't allow personal tasks to get in the way of work. These can be anything from cleaning the house to visits from friends or relatives to watching television. Take breaks from your computer, but try to avoid getting involved in personal tasks during your breaks. Many women confess to washing dishes, ironing clothes, vacuuming, and other personal tasks while on break from their home business. Personal tasks can cause your mind to be off-focus, and it will be difficult to return to a regular work routine afterward.

Find other things to do during breaks that won't take your mind too far away from work. Take a 15-minute walk. Sit and read a self-help book related to your business. Or, take a quick snack break, with a healthy snack of course!

Once you take these steps, you're ready to enjoy a steady cash system at home that works. You can earn money doing what you love most, and your home business can soar to heights never imagined if you stick with these basic principals. Get ready for a bumpy road, but also look for the financial freedom that awaits you just over the horizon!

Tips For Achieving Financial Independence

Most of us seem to forget one of the most obvious things in our life even though it is that simple; money is only a tool to help us to do what we want, to live out your dreams or goals as far as money can by them. Have you ever considered to live on little money? You can even live well with little money but the biggest benefit of living on a small budget now, is that you will be able to live a life of leisure where you can spend your time and energy doing things that you choose to do within some years. To gain financial independence whether your purpose is retirement planning or another purpose, there is more than one way to go. Roughly there are two ways to obtain it:

* Reducing your expenses
* Increasing your income.

Reducing your spendings

This is obvious - but so many people have not understood it yet: Always spend less money than you make. Continually track and review your purchases for the purposes of keeping track of your money as well as learning from your previous mistakes. We are actually talking about a change in your lifestyle, and you can't expect to do this change overnight.

Never use money on impulses but always plan and prioritize your purchases. You must understand that money is not the important thing, the important thing is to have a good life. Therefore sit down and find out what is really important for you in your life and prioritize your use of money according to that. Focus on achieving your goal and never lose sight of it. Be creative and constantly look for ways to live well without much money. Who said you couldn't live a good life frugally?

When you plan to use money on items for your household like a dish washer, vacuum cleaner, refrigerator etc. only buy what you absolutely need and see that it lasts as long as possible. You must ask yourself: Will this item benefit me? You must continually go through a process of selecting strategic use of money as well as do all you can to save money on all your purchases.

If you owe money, make a debt elimination plan and stick to it This is especially important for consumer debt; get rid of it and the sooner the better. Why not move to the countryside. The point is that you should find a place to live that limits your expenses where you at the same time can live a good and healthy life.

Increase your income

If you don't already have it, you should find a job that pays well and doesn't add a lot of cost to your life. You should continually look at improving your income by

* getting a higher paying job
* earning more side income.

The cost you save by changing your lifestyle - your surplus - should be invested. Keep investing the surplus and accumulate it. If you can come so far that you are able to invest $1,000 to $2,000 a month for 12 to 15 years or even better if you can increase your savings by a few percent each year, you will be able to withdraw a decent income from the interest on your investment.

It is possible to re-engineer your life to live well even on little money. If a financial emergency should occur, it is necessary to have some money available. Therefore your should establish and maintain an emergency fund. The more income you make, the more money you can save with a frugal lifestyle. If your goal is to retire, remember that the more income you can get and the lower expenses you have, the quicker you can retire. If you get used to living on a moderate amount of money and prioritize what you really want to do, as far as what money can buy, you will be the master of your time and money - in other words you will be in control of your life.

Tips For Marketing Financial Products

Marketing of financial products has to be carefully planned and executed in order to avoid mistakes that can be costly and hard to recover from. With heavy competition, financial institutions have to be aware of the current market trends and must keep informing their clients about their latest service or products to make sure that their clients use them.

If marketing of financial products or services are excellent, the firm is ensured of guaranteed, quality financial planning leads as well as better referral service from affiliates. It is necessary to have a sound, carefully planned marketing strategy in order to recruit more customers, generating more revenue. This calls for extensive market research and competitive analysis and knowing how to lure customers by sending out the right message in the advertisements. It is a pity that many people do not understand the importance of marketing of financial products and, therefore, misses many opportunities to develop and expand their client base.

Marketing Tips For Financial Products:

- Referral services by affiliate service providers are very effective and a highly targeted market-oriented marketing strategy. It is necessary to have a system in place to respond to the queries of those potential clients who were referred and have follow-up services that can convert potential leads into actual customers.

- Direct mailing is another tactic that is relatively cheap and can be used to reach target markets of your choice. The job can be out-sourced, and your operating costs are well within the budget. It can also be effective in recruiting potential customers easily.

- Cold calling is another marketing strategy, but it is not used much owing to the enormous drain on time and labor as well as costs and low rate of new customer recruitment.

- Offering items having your brand identity serves to remind existing customers as well as those you deal with on a regular basis about your financial services as well as products. Post-it note pads, pens, coffee mugs, key chains, pen torches, etc., are items that are generally used as promotional items.

- Using the media to effectively advertise your products. The TV, radio, newspaper, magazines, cinemas, etc., are very good sources for targeting your advertisements. Keep your advertisements short and make sure they tell people how they can benefit from using your services or products.

- Getting celebrities to endorse the product or service is another effective marketing tip.

- Sponsoring events can be another great way to market your products and creating awareness of your products.

- Using permission-based email marketing, free newsletters, pop-up advertisements, and keyword-optimized search engine options are other ways that financial products can be marketed using the Internet.

These are a few marketing tips for financial products. There are firms that offer services as well as products to help run your business successfully.

Tips in Developing a Financial Scorecard

Businesses have learned the hard way. It has taken years and years before certain management principles were developed. Add to this the actual processes in managing, such as a financial metrics and financial scorecard. Scorecards are used only not in the financial aspects of a company, but also in terms of performance and productivity. Scorecards are also used in clinics and hospitals. Wherever there is a job that needs to be done, scorecards are used.

In the financial world, scorecards are used to measure how well the company is performing in terms of revenue. There has to be clear targets set to allow the leaders of the industry or business to accurately and objectively gauge whether the business is earning or not. This is a key tool that will help business leaders to develop action plans and make wise decisions regarding the direction that the company should take.

Just about the same with other scorecards, measuring financial success has metrics. This may vary from one company to another, but these are all basically the same in the output or goal why this process and principle is being used. And that is to measure the company's actual strength in terms of financial stability and credibility.

First off, one needs to measure the overhead expenses and compare it against the gross sales or income. What others do is incorporate data in their balance sheets. Overhead expenses are things that a company paid for which are not attributed to business activity. An example of an overhead expense is rent. Even if this is not a money-generating expense, rent is necessary to be paid since without this expense, there will be no place for production. Another example of an overhead expense is insurance. Paying for insurance does not generate money, not even in the form of interest. However, this is necessary since no one knows when calamity would strike.

How a scorecard is presented is also a factor to consider when developing the tool. One may want to present expenses by division, gross and net earnings by division or department, overall billable headcount per division, and overall income per division.

The way data is presented is critical in understanding the figures. If the figures are presented in a convoluted way, this may lead to misunderstanding or misinterpretation of data. As an ultimate result, managers will look at a false solution, should there be pressing problems. One might think that lessening manpower in a certain division will lead to effective cost-cutting results; but in fact, this decision may not at all be helpful to the company's growth and development. Another issue that may come up is that managers may not see the potential of a specific product or line of business if the numbers are not shown right in the financial report.

Always remember that data is integral to the success of any company, especially money. If the data presented in the reports are wrong, then it may be concluded that the financial scorecard does not really measure performance. Rather, it dooms it.