Cash flow is the life blood of any small business and those business owners who fail to juggle the balance between money in and money out do not succeed. It doesn’t matter if a product or service is the best thing since sliced bread; lack of cash flow will stop a business in its tracks.
Tag Archives | money management
The OECD has recently released the results of a survey of financial literacy skills and knowledge for 15 year olds in its member countries.
Overall, New Zealand students have a relatively high level of financial literacy when compared with other countries, with 1 in 5 having advanced skills and knowledge.
Look at your spending over the last year and you will no doubt find that, aside from your mortgage or rent, your biggest expense is food.
Cutting back on how much you spend on food each week is a great way to find a few extra dollars to add to your savings.
Food bills can creep up if you:
It is said that the older you get, the faster time goes, and if you subscribe to that view, the best time to think about where you would like to spend the last part of your life is sooner rather than later. Later in life, the effects of aging make it harder to analyse complex information and to make sudden changes in lifestyle. Family members sometimes step in to either provide support or take control, or alternatively, health events can bring about forced change.
A survey of around 1000 New Zealanders over the age of 18 undertaken on behalf of the Commission for Financial Literacy and Retirement Income in May this year shows some interesting statistics about how people use their money. These surveys have been undertaken every six months since November 2011 and show fairly consistent results.
The question of who takes responsibility for managing financial affairs and setting goals and priorities in a relationship is one that has a number of different solutions. The start of a relationship can mean a loss of financial independence that is difficult to adapt to. As a result, some couples choose to split bills in half rather than having a joint account.
The measure of your wealth is the difference between the value of your assets and the amount of money you owe to others. Wealth is generally accumulated over your working life, reaching a peak around the time you retire, and then diminishing through retirement. Of course, for some people, it is not quite as simple as this and life events such as divorce, redundancy, illness, or windfalls such as lottery wins or inheritances can create sudden changes in wealth in a positive or negative way.
What you do with your money in your twenties will have a significant impact on the rest of your life. Start off on the wrong track and it might take you years to get back on the right track. Make the right decisions with your money and your future life will be much easier. So how do you get it right?
The key to being a successful investor is to learn to overcome the emotions of fear and greed and make sound investment decisions based on objective analysis. Fear can lead to financial loss through missing out on opportunities to make a good return and through panic which can result in selling investments at the wrong time.
There is really not much difference between spending and saving. All money is spent – it is just a question of when. When you receive money, you can choose to spend it now, a little bit later, or a lot later. Ultimately, money you don’t spend during your lifetime will simply be passed on to someone else to spend. Saving is therefore just deferred spending.