Froodee

Living. Blogging.

Tightening Your Belt Need Not Be That Hard

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project2_socket
If there was ever a time to tighten the belt, it is now. While some people are experiencing an upturn in their finances, a lot are still trying to find ways to make ends meet. Even those who are experiencing better days will still appreciate ways to cut back on recurring costs. Let’s look at some simple ways to save money with regard to household expenses. Trust me, they work!

UNPLUG. My husband has the habit of leaving his devices on standby mode. He doesn’t like turning off his desktop computer. He leaves his cell phone charger plugged. He doesn’t turn off the AVR to which the TV and PlayStation 3 are plugged. His rationale is that they do not use much power anyway. Indeed, he has a point, but the costs from this habit can add up to a couple of hundred dollars per year! If I were you, I’d start unplugging things and turning them off when not in use.

Stock up on non-perishables. I like doing this. I buy cans of tuna, cereals, Spam, and other similar products by the bulk. When they are on sale and the expiration dates are not anytime in the near future, I buy even more. The small savings can add up over time. More so, you will always have a well-stocked pantry!

Go prepaid. If you do not use your mobile phone all that much, why don’t you try using prepaid services? This way, you will not have to pay for minutes and messages that you do not use. And even if you use your phone way too much, prepaid services can help you control your usage.

Little things can go a long way!

Rules To Live By To Gain Financial Security

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cash-wad
Who does not want to gain financial security? In these times, financial security is something that we all seek for. Fortunately, there are ways and means by which we can achieve a certain degree of security. Here are some rules that are tried and tested. Live by them and find yourself on the road to financial security.

Rely on cash
I believe – and many experts will concur – that learning to rely on the credit card is one reason that many people today find themselves mired deep in debt. The rule is to spend cash whenever you can, keep that plastic for ultra emergencies. More so, when you find your assets frozen for one reason or another, and you need money fast, your cash might very well spell the difference between disaster and solvency.

Don’t rely on borrowing
I think that many have learned this the hard way. A lot of people I know used to think that borrowing to make more money was a good idea. Today, they are firm believers in the idea that if you have to borrow to invest, then you might want to think twice – and perhaps more.

Don’t buy more house than you can afford
Prior to the great housing slump that we are experiencing, people normally saw houses as great investment venues. They would buy houses that are way beyond their means, thinking that they can easily sell them off later on. The real estate slump has shown how false that thinking can be. Bottom line: your house will not make you rich, but use it as a savings tool.

Hope these tips help.

Good business practices for dealing with foreign companies

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In order to further spur growth and achieve next-level expansion, some business interests and companies will have to start trading with foreign companies. There are inherent difficulties in dealing with foreign companies especially when it comes to the matter of money. Business solutions experts encourage businessmen to follow some of these good business practice tips on how to facilitate easier payment dealings with foreign companies:

Extend credit with care. Some businessmen would extend credit to overseas customers without adequately studying the risks involved. They should remember it is harder to get financial data on a company from another country. This goes as well for determining reputation and credibility. A good idea is to draw an insurance that would protect their company against the risk of default.

Language is an important consideration. Businessmen are warned not to put too much confidence in the fact that they can talk to one person in the foreign company that understands them. This is because that person could not be in all relevant departments all the time. It will be hard to coordinate, say with the warehouse or with accounting if the only person who understands the language is only available at the head office. It is recommended that companies hire a third party that knows the local language to bridge this barrier. This is especially important if the new company formed will deal with a particular country on a permanent basis.

Remember local customs. There are countries that have peculiar or un-stated rules in business. It is best to do research on these customs in order to facilitate a more efficient relationship with the foreign company.

Tips on raising credit management awareness

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Business solutions experts reveal that over 10,000 businesses fail every year because of late payments. It is for this reason that the Better Payment Practice Group has embarked on a campaign, the goal of which is to advise businesses to be more alert in noticing signs of a credit management policy that’s about to fail so as not to meet failure with the company they have failed and ultimately throw away the efforts that were exerted in forming the company.

Here are some signs/warning signals that would mean the credit management policy of a business is in dire need of improvement:

• If a business oftentimes reaches or exceeds a bank’s limit for credit facilities, the best option is to review the company’s asset management policies and credit management
• If debtors always pay invoices outside the credit period agreed upon then the collection methods must be reviewed and improved.
• Good payers that slack off in payments may mean that the business’ collection system is also being ineffective look into this and improve as necessity dictates.
• Excuses that affect work may be a sign that the customer may have discovered the laxity of the credit system. Fix the system as needed.
• If the supplier suddenly discontinues its bills payment a point will be reached where the business will exceed the credit limit and supplies are stopped.
• The company’s credit insurance or the formulation of an effective internal system to assess credit risk can be a helpful way of protecting a company. This is particularly effective especially there is a heavy reliance on another business or has a collection of customers who have vulnerabilities with regards to cash flow.

A few reminders in keeping a good profit margin

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Regardless of what the original goal or motivation was for setting up a business it is a given that a business exists to make money. A business that generates insufficient revenue will obviously fail. With business solutions experts saying that one-third of new businesses fail within three years, it really drives home the point that managing profit margin levels is an important consideration for business owners.

What businesses charge for their products or service plays a huge role on the profitability and success of a business. Too much and a business loses customers, too little and profits will be to low to maintain operations. Striking a perfect balance between profit and price is the key to success. Here are some things company formation professionals would usually advice business owners in order to achieve this balance:

Reduction of operating costs – Try to find out if there are certain areas in your business that can still operate smoothly with reduced operating costs.

Look at the supplier base – Determine if the business is paying an external supplier for a service that could be done internally without sacrificing quality.

Look at the expenditures – An internal audit of costs will help in identifying possible problem areas.

Negotiate with suppliers – Suppliers may give your business perks and discounts if you ask for it. Also try to buy in bulk to get a cheaper price.

Look at the competition – look at your supplier’s competitors, they might offer better rates

Give incentives – offer rewards and bonuses to employees/staff who surpass sales targets, and also give incentives to customers who bring in new clients.