To do all these functions efficiently, financial planners first need to establish the financial objectives of the enterprise. Both long-term and short-term objectives should be established for the effective utilization of the financial resources. Then comes the next step of formulating policies. Policies are broad guidelines. Financial policies relate to procurement, administration and distribution of business funds. The next step financial planners have to do is to formulate procedures. Procedures are the specific order of doing things. They are formed for ensuring consistency of actions. In financial procedures, the financial executives decide about the control system, develop standards of performance and evaluate the performance. Lastly, they have to forecast the future. In order to take proper action to achieve the objectives established, it is necessary to know the future positions. This is facilitated by forecasting the future.

While doing these activities, financial planners must take into perspective the cost of finance and nature of business. In any assessment of the financial needs of the firm, the cost of finance is the basic criterion. This is so because only projects with net positive cash flow can be selected.

Credit cards. If used well, great tools, if used poorly, financial ruin! If you’re too impulsive, hide your card! To avoid paying interest and fees, pay off your entire balance each month (on early or time). Most charge no interest if the balance is paid off within the billing cycle. If you pay only the minimum required payment, like one in four Americans, you lose.

Unauthorized use of credit cards.  If a charge – which you did not authorize – appears on your credit card statement, contact the credit card company immediately. Follow-up your dispute in writing within 60 days to ensure your rights.

Disputed items.  If you are dissatisfied with a product or service you charged with your credit card, first make a “good faith” attempt to resolve the dispute with the merchant. If you are unable to resolve it, contact your credit card provider and file an official dispute. Do this within 60 days of the charge to preserve your rights and avoid negative credit, etc.

Debit cards. If you, or someone else, uses your debit card, money is deducted from your checking account. For pre-authorized purchases (e.g. gasoline or motels) a “hold” is placed on your checking account, usually for an amount larger than the expected charge. This hold can cause other checks or charges to be returned — if you don’t have a sufficient cushion of funds in your account, or a backup system (e.g. overdraft line of credit loan). Once funds are deducted from your account, it is often difficult or impossible to get your money refunded. Don’t use a debit card for mail order, telephone, or internet purchases. Even if you don’t get what you ordered, you may not be able to get your money back.

Reconcile your checking account. The sooner you do it, the easier it is. As soon as you receive your bank statement, compare it with your check register – item by item. Make sure both you and the bank have recorded things correctly. If you find that the bank has made errors, or the statement includes unauthorized deductions, contact them immediately.

Blank checks.  Keep your blank checks in a safe place. Although you may not be technically responsible if someone steals your checks and forges your name, consumers are often unable to recover their funds which have been deducted from their account. Financial institutions have several defenses including consumers’ negligence.

Bounced checks.  To avoid costly bounced checks, tie your checking account to a revolving line of credit (an empty loan). If you have such a pre-arranged plan, and write a check for more than your available balance, a loan advance is made to pay the check. If you pay off that loan quickly, most financial institutions charge you very little in interest and fees. Keep that line of credit reserved as your checking account backup – and don’t use it for anything else. Bounced check fees, are very costly. Beware; many banks automatically provide very high-cost “bounce protection” programs for those who don’t.

Solicitations.  Don’t give your account numbers, credit or debit cards, or your Social Security numbers to anyone who phones or e-mails you. They may not actually be who they claim to be. They may fraudulently use your information, and the damage done to you financially, or to your credit rating, may cause huge headaches, and a horrendous waste of your time, money and energy trying to correct the problems.

Investing.  If you can’t afford to lose it, don’t speculate with it. The greater the rate, the higher the risk.

Risk Free.  Nothing is “risk-free”. Especially nothing involving money.

Too good to be true.  If something sounds too good to be true, it is! Don’t fall for the scams. Heed the clues!

Credit repair.  Be weary of credit repair services. Some claim to be able to “fix” bad credit. If you have inaccurate information on your credit report, you may contact the credit bureaus directly and correct it yourself. If you have had credit problems, any attempts to remove the relevant information from your credit report are illegal, fraudulent, and only temporary.

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You should not always realize that you have a lot of money to be able to fulfill your life. For that you save your money for some very sudden needs. This you should do because you are not always in the right position in your life. Skills you in managing income protection you get, make you make you can overcome all the problems in your life. Therefore make sure you do an Income Protection for protection in your life. This should be your action because you need protection on all your earnings during your working. You should have to spend your earnings to the appropriate requirements and avoids the expense for all the things you do not need.

Call it a Canadian Maple Leaf of Canada, Chinese Panda from China, American eagle from America, and much more of this series of gold coins. There are many choose gold collector gold coins because the value as well as its intrinsic value. The more rare gold coins, then the price will also be more expensive. So the collection of gold coins as a hobby but also have high economic value. Buy gold coin is one option that best gold investment, for its attractive, easy to be traded, and has a standard well-known.

Gold coin collecting activity is indeed interesting. Even has developed into a branch of science itself is Numismatic, namely science to know, learn, and collect purchase gold bullion . If you want to buy gold bullion as the collection is mostly done gold collectors established. Buy bullion has own price, related to extrinsic value.

What many do not realize is that credit cards are really a way to spend your money without the inconvenience of carrying cash and writing checks. Sure, we use our debit cards more often now that ever, but we also use our credit cards more often as well. There may be a good reason to use these credit cards, but we have to control our spending and keep our debt-to-income ratios down to preserve our credit ratings for large purchases such a home or vehicle. If we spend too much on credit, we may find it difficult to make these purchases or end up with higher interest rates on these large ticket items.

By controlling our credit card spending and budgeting correctly to pay off all or most of our balances every month, we may be able to get the best possible interest rates due to our stellar credit and financial responsibility. By setting aside our credit cards or making them difficult to reach by placing them in a freezer or having a relative hold them, we may second guess their use, which in turn can help us realize that we should only spend what we can afford in cash and leave the extraneous purchases out of the picture.

Revolving accounts comprises credit cards and line of credits etc while installment accounts involve personal loan, auto loans or mortgage loans etc. Taking credit is one thing and using it responsibly is another. Phillip Thow suggests the responsible use of credit within few months to avoid increased interest rate and to establish a good credit line.

Remember credit cards are not only a way of income generation for your creditor but also have strong impact over your credit report which is the snapshot of your financial habits and responsibility. Therefore Phil Thow stresses upon the importance of maintaining a good credit score as it not only consolidate your financial position as a reliable borrower but also paves the way for future credit facilities.

Borrowing.  Don’t borrow money unless you are willing and able to pay it back. Failure to pay debts – on time – causes severe financial, emotional, and family problems. Experts recommend you don’t borrow for wants, only for needs, or for things that increase in value. Many lenders will loan you money you can’t afford to pay back, especially high-rate lenders.

Co-signing.  Don’t co-sign on a loan unless you are willing and able to pay it back. Often, co-signers end up paying off loans they are unprepared for, and financial hardships follow. Numerous co-signors now have negative credit ratings because a primary borrower paid late. Many lenders do not notify the co-signor before reporting delinquencies or repossessions to the credit bureau.

Compare.  Before you decide who to borrow from, compare! Find out who is offering the best deal at that time – look for the loan with the lowest rate (APR).

APR.  The Annual Percentage Rate (APR). It is the standard rate, so we may compare the cost of borrowing. It is the cost of credit expressed as a yearly rate. When you borrow, always beat 13% APR (consider “13” to be unlucky when it comes to borrowing). Some have been illegally stating other rates such as weekly or monthly rates. Compare APR to APR. If you pay your bills on time, and you aren’t over-extended, you can nearly always find loans or financing arrangements at rates lower than 13%. Beware though, because beating 13% does not always mean you are getting a good deal. For instance: the difference in total interest paid on an 11% versus an 8% 30-year, $100,000 mortgage loan is $64,283 (assuming all payments are made as agreed).

Consolidation Loans.  A consolidation loan can result in great savings to borrowers if the new interest rate is significantly lower, and if you don’t run-up debt similar to what was just consolidated. But beware, because consolidation loans usually result in substantially more money out of your pocket into the lenders’. For instance, mortgage loans usually involve closing costs. They increase the total debt. Many refinances involve reducing the monthly payment, but increasing the length of payback, which substantially increases the total interest paid. Borrowers, who refinance unsecured debt (e.g. credit cards) into a home mortgage, also increase their risk of losing their homes. Also, remember to keep all of your payments current until the old debt is paid off. Too many people have damaged credit ratings, and are in bad financial condition because they counted on money which didn’t come when they expected it. Expect delays when applying for loans, especially consolidation loans. Don’t spend money before you get it.

Desperation.  Don’t get desperate for money. The more desperate you are, the less likely you are to get a good loan.

Auto insurance.  Keep your auto insurance current. If you fail to keep your insurance up-to-date, you could end up making loan payments for years after your car has been totaled.

Establish good credit.  To avoid bad credit, don’t borrow too much, and do pay your bills on time. Inexpensive ways to establish good credit: (1) Obtain a good credit card. When you charge things, pay off the balance each month – on time – and pay no interest. (2) Establish a revolving line of credit (an empty loan) as an overdraft protection against bounced checks, and don’t use it as a loan. (3) Get a loan to buy a car, or furniture, or etc.) and pay it off within a few months.

Late fees.  To avoid late fees (which multiply the cost of borrowing), pay early, or at least on time.

Repossessions.  To avoid repossessions and associated fees, pay early or on time, and keep your insurance current.

Extra principal ® less interest.  To pay less interest on loans, pay more than the minimum required payment. Even small amounts of extra principal, can significantly reduce the total amount of interest you would otherwise pay over the life of the loan. Before doing this, however, make sure your lender accepts extra principal payments, and find out what particular procedure you need to follow to ensure your extra principal is properly applied.

Bi-weekly payments.  If you get paid weekly, or every other week, paying bi-weekly is a very convenient (almost painless) way to reduce your loan term and interest. For instance, if you make ½ of your required monthly payment every 14 days (a bi-weekly period), you pay the equivalent of 13.052 payments in an average year. If you don’t get paid bi-weekly, or if your lender doesn’t like biweekly payments, you can pay the equivalent amount in monthly installments. If you pay 1/12 of the sum of 13.05 payments each month, you will match the bi-weekly advantage (minor rounding differences).

Contrary to popular belief, the frequency of paying ½ payments bi-weekly doesn’t accomplish much, the real advantage is paying the extra principal (13.05 payments, or more, each year) which reduces the term and the interest paid. If you are considering signing up for a bi-weekly program, pay close attention to the cost. Some servicers have large set-up fees and transaction fees. Also consider the credibility of any company handling your money, some have diverted payments into their own pockets, leaving borrowers to make payments twice (once to a corrupt servicer, and a second time directly to the lender).

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Management of Finance
Management of finance has developed into a specialized branch within management since long ago. Managing finance involves dealing with optimizing allocation of funds to various activities either by borrowing or by mobilizing from internal resources. The word optimizing in finance may strike an odd note but it means taking intelligently structured steps at minimizing the cost of financing while simultaneously attempting to maximize the profits out of the employed finance.

Finance Governs Most of the Activities
A poor finance management will immediately show as deteriorating conditions in the procurement, production and sales as it touches all spheres of business activities. For this reason, a finance manager is expected to be very judicious in either mobilizing funds or allocating for expenses. Lee Iacocca, the most revered management guru, calls finance managers as ‘bean counters’ who look at the expense part with rather pessimistic view. Unlike the sales managers, who would like to invest in future by product development, finance managers are rather skeptic of financing a project whose benefits lie in the future. Finance management governs the future outcome too.

Finance in Small Business
For most small business owners there is not a clear distinction between personal finance and business finance often leading to cross utility of funds. Lenders, either future or present, don’t look at this with a soft corner. But resisting the tendency for such utilities may dampen ones zeal temporarily but sure brings the much needed discipline which is the foundation of all future progresses.

Financing a business can often be perilous if not approached with caution. Although bad management is commonly given as the reason businesses fail, inadequate or ill-timed financing comes a very close second. Whether you’re starting a business or expanding one, sufficient ready capital is essential. But it is not enough to simply have sufficient financing; knowledge and planning are required to manage it well. These qualities ensure that you will avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money.

Financing
Small businesses can finance their needs from either internal resources, friends or from banks and private lenders. The less you finance from outside lenders the more it ignites the profitability. This is why, perhaps, Bob Hope famously said, “A bank is a place that will lend you money if you can prove that you don’t need it.”