Monthly Archives: July 2016

The Value of Financial Management

Financial management is the efficient and effective management of a company’s capital funds to accomplish the objectives of the business entity. It deals in raising capital funds and allocating it through proper capital business budgeting. Budgeting that includes not only long term but also allocating short term resources like current assets. If the business is a corporation, financial management also deals with policies related to the distribution of dividends to its shareholders. Financial management services in general are economic services provided by financial consultancy groups in managing clients’ company funds, with the intention of attaining a financial goal. This includes the allocation of the financial resources, and the creation of a financial management system. When a company decides to hire the services of a financial consultancy group, the service that comes with it includes tax management services.

In the business world, financial management services offered by consultancy groups have a very wide scope of responsibility. They sometimes refer to this scope as the five -A’s of financial management. They are Anticipation, which is the responsibility to estimate the financial needs of the company; Acquisition which is the duty to collect or to find the means to collect financial sources for the company, Allocation which is proper disbursement of finance resources to purchase fixed and current assets for the company, Appropriation which is the proper distribution of profits among the shareholders and other investors but also allocates part of that profit as company reserve and finally Assessment which is the proper control of all financial activities of the company.

In any business financial management has two distinct functions namely executive and the operational routine function. The executive functions includes estimating capital requirements, determining capital structure, estimating cash flow, investment decisions, allocation of surpluses, deciding the acquisition of additional finance, negotiating for additional finance and checking every now and then the financial performance of the company.

The routine function of the financial management group is the supervision of cash receipts and payments, safeguarding the cash balances of the company, of its securities and insurance policies, caring mechanical details of financing and record keeping and reporting the day to day business activities of the company.

Financial management is the most important area in the field of business management. All other management sectors of a company such as production, marketing, and human resources department all depend on financial management for their resources. It must be remembered that efficient financial management is required for survival, growth and success of the business entity.

Several Ways to Get Financial Aid for College

3c9913086df054d99344a0662bf049aeEducation is getting to be costly by the day. The most famous method for dealing with the school charges is landing low maintenance position, and sparing like there’s no tomorrow. In spite of the fact that this is an awesome stride and shows understudies independence, it makes them more defenseless against the danger of losing center and fixation, up to a specific degree, in studies. Understudy advances are another incredible alternative for understudies who have a budgetary emergency, yet then reimbursing credits is likewise an issue that should be considered before applying for monetary guide.

Financial Aid for College Students
Whether you’re looking for college tuition or athletic scholarships, as students, you need to ensure that you are fully aware of the eligibility criteria for these scholarships. In the last two years, there have been several changes in the application form of the FAFSA, Free Application for Federal Student Aid.

Visiting the official website of FAFSA will help you to know more about numerous scholarships and grants offered by the agency. You need to be sure of the deadline dates. While formalities are annoying, they are a necessary part and parcel of today’s life, and ignoring them only gets you in trouble.

When students visit the FAFSA website, they can get a step-by-step information on how to apply for scholarships, and about filling the application form. Moreover, they can find a great deal of information about managing money in college and save some extra bucks. You may not qualify for FAFSA, but you can get opportunities to apply for some other programs.

The US Department of Education has strictly instructed parents to support their child’s education, and in case of divorced parents, the child’s education is the responsibility of the custodian parent. Although it is hard to imagine how a parent can deprive his or her own child from education, there are several situations in which such cases can and do occur.

If parents have a bad credit, they must contact financial planners and debt counselors to get an idea about the most suitable step to take in this process. These experts can help you while applying for FAFSA. By following the above tips and contacting career counselors, one can get adequate information about the whole process of financial aid. Also, be aware of Internet scams and organizations that ask you to pay some money in return of promising you whopping scholarships. They’re just deceptive and alluring offers.

School Fundraising Ideas To Reach Your Goal

Coming up with the perfect school fundraiser can seem like a headache but there are plenty of ideas around that, if you run throughout the year, can raise thousands of dollars for your school.

You may want to stage something that hasn’t been done before, but the tried and tested ways of raising funds are often the best. Whether it’s a raffle, casual day or pie drive, rest assured parents won’t have a problem with putting their hand in their pockets and donating some of their hard-earned.

Listed below are just a few ways that will help you raise funds. Bear in mind that there a whole host of other fundraisers out there – you really are only limited by your imagination!

Basket Raffle

Buy a basket for each class in the school and choose a theme such as sport, chocolate or something seasonal like summer or winter items. Contact local businesses to see if they can donate items relating to the theme, and sell raffle tickets for each basket. If every class takes part, you school will be able to make quite a profit – especially if you do more than one a year.

Garage Sale

If, like everyone else out there, you need to do a thorough clean out of your house, why not pool everything you’d like to discard and have a garage sale? In this case, one person’s junk can definitely become your school’s treasure. The school will get 100 percent of the profit, and you get a cleaner house! Organise the garage sale for a weekend, where you can also combine it with another fundraising element such as a cake sale.

Chocolate Sale

There are quite a few companies such as Cadbury and Mars that will sell organisations cheap chocolate that you can on-sell to raise money. Although it’s not the healthiest option, the popularity of the sweet tooth will help you raise money quickly and easily.

Entertainment Books

Ever popular, Entertainment Books are a fantastic way to raise funds. They provide a whole host of coupons and discounts (usually between 25-50%) on local restaurants, stores, and entertainment, and represent excellent value that can be taken advantage of throughout the year. You can expect to raise about $16 from each book sold.

Trivia night

Ask a local restaurant, hall or bar to donate a room and hold a trivia night. You’ll need to develop a list of questions (or buy them from the internet) and incorporate another fundraising element, like having a raffle or a jelly bean guessing competition. You can charge entry into the evening and add a theme to make it more fun.

Casual day

Students love going to school and not wearing a uniform, so why not turn this day into an important one on your fundraising calendar? Charge each student $2 for the privilege of not wearing a uniform once a term.

Step by step instructions to Buy No Money Down Properties

aid1807281-728px-buy-an-apartment-with-no-money-down-step-6-version-2Purchasing a house is each individual’s fantasy. Each individual needs to have a property in his own name. Large portions of us imagine that it requires a considerable measure of cash to purchase property. Yes, truly it requires a lot of cash.

But, what if you can buy real estate with a small down payment? What if you can purchase real estate with absolutely no down payment? Yes, there are quite a few advertisements that offer a no money down home. But, beware of them! These may be scams. If you really want to buy no money down property, then there are a few practical tips that you need to follow.

A no money down real estate policy means buying real estate with minimum possible down payment. If you think smartly and negotiate well, then you can crack a good deal.

Tips to Buy No Money Down Real Estate

Negotiate Before Buying
Before finalizing a deal, negotiate the down payment with the seller. Negotiate in all possible ways to reduce the down payment amount. You can offer him a high total price of property in lieu of accepting a smaller down payment. A seller would usually agree to the higher price and reduce the down payment. After all, who would say no to a high price

Borrow Money
Another way is to borrow a sum of money from someone, at the least possible interest rate or at an interest rate that you can easily afford. There are people who lend money at low interest rates. If you are buying a house for the first time, then you can go for a loan. It is a home owner’s grant and is offered by many states for first time house buyers. It usually provides you with three percent of the purchase price of your home. This could be the money that you need for the down payment. This loan may also provide financial assistance to the borrower by subsidizing the interest rate.

Buy with a Lease Option
Many people do not know that they can buy a property by going into a lease agreement. This is an uncommon practice, but you can try it out. In this scheme, property can be taken on rent, with an option to buy. Negotiate a deal, in which you will be paying a specific amount of money at regular time intervals, during the term of lease and this can be considered as your down payment. You buy the property after the lease period is over.

Getting a No Money Down Home Loan
You can go in for an option of getting a home loan with no money down. Various banks and lenders offer a 100% financing program, but these programs have major drawbacks of high mortgage payments and a compulsion to carry Private Mortgage Insurance (PMI). PMI adds a cost of $50 – $100 per $100,000 borrowed per month on the cost of your mortgage. You qualify for the loan, only if you are ready to pay the PMI.

Veterans Administration Financing Program
Veterans Administration(VA) also offer a 100% financing program for qualified veterans. There is no limit on the amount you can borrow under the VA loan, and you can apply for other VA loans at the same time.

Exchange Your Property
You can offer a prized possession of yours to the seller, which will work as the cash substitute. You can offer him an unused car, a boat or a small house that is in good condition, which you no longer use or are ready to give up.

Other Ways for No-Money-Down Real Estate Investment

Offer Your Skills
If you are a lawyer, a doctor or an architect, then, you can offer your services free of cost in exchange of the down payment. It would be beneficial for you and also for the seller.

Find a Partner
One option is finding another person interested in the same property. It will be helpful to you financially, but it is in such a situation that the issue of sharing the property arises. Be careful while going in for this option. Contact your legal adviser for this deal.

Research More
If none of the above options work, then research and try to find a seller who can sell you the property with no money down financing. Though small in number, but there are such deals available. You will be lucky if you can get such a deal.

Buying a new home with no cash down is not a tedious task. There are many ways to do so, and you can opt for any of them as per your wish and convenience. Real estate investment gives good returns in the long term. With this I sum up my article. I hope the information proved to be of help to you.

Some Ways to Home Loans After Bankruptcy

images-4Documenting chapter 11 does not generally bring about the solicitor giving up home proprietorship. Whether a man holds responsibility for house or whether the house is repossessed in lieu of obligation commitments, relies on upon various components.

Retaining Home Ownership Despite Filing Bankruptcy

Filing Chapter 13 allows the owner to retain possession of the home, since Chapter 13 is a wage-earner’s plan. This plan allows the petitioner to discharge debt obligations under a different set of covenants, within a maximum period of 5 years. Filing Chapter 7 and signing a reaffirmation agreement, results in the debtor being bound to the mortgage despite the filing. The debtor continues making mortgage payments, regardless of the filing, thus retaining home ownership. This may be advisable, since filing Chapter 7 allows the petitioner to retain only a part of the equity in the primary residence. Moreover, making regular mortgage payments is also desirable from the perspective of improving credit scores.

People who are interested in buying a home after bankruptcy find it hard, especially in the current scenario when most lenders are unwilling to lend money to less creditworthy individuals. However, following tips can be helpful in fulfilling your dream.

How to Procure Such Loans?

This is a difficult task since the borrower would have to ensure that his/her FICO score is at least 620. Although this seems plausible, one must bear in mind that filing bankruptcy results in the borrower’s credit score declining by 300 points or so.

As we are well aware, in the current scenario, a credit score of 780 or more guarantees the aspiring homeowner the lowest rate of interest on mortgage loans. Applying for such loans puts the borrower at the risk of having to discharge obligations at an unfavorable rate of interest. In fact, he may have to pay a substantially high rate of interest, on account of less than satisfactory credit scores and the lack of creditworthiness as perceived by the lender. People who manage to retain their home in this condition, may be interested in refinancing their mortgage to a lower and more favorable interest rate. FHA (Federal Housing Administration) insured loans can be used for this purpose.

First-time home buyers can avail it, provided four years have elapsed since their bankruptcy discharge, while people who sought relief under Chapter 13, would have to wait for at least 2 years. FHA insured loans have less stringent terms, and a borrower is only expected to have made 12 or 24 consecutive payments on all accounts, since the time of filing Chapter 13 or Chapter 7 respectively. Eligible veterans may benefit from VA (Veterans Administration) loans. This is because a person is required to wait for just 2 years to procure this loan. The debt-to-income ratio is another important factor that is considered, since it indicates the ability of the borrower to discharge mortgage obligations. A low debt-to-income ratio is favorable while a high ratio is undesirable.

In addition to these factors, people desirous of procuring these loans may be required to provide the reason for filing bankruptcy and furnish supporting proof. It’s evident that the filing makes it much harder for people to procure mortgage loans. Hence, one should always try and explore alternatives to avoid the unsavory consequences.