Have you wondered how you can increase your credit score quickly? Wonder no more because I will provide you with means necessary to increase your credit score quickly. There are several tested ways and means on how to increase your credit score. One of these ways is paying your bill on time. Yes, I know that looks simple, but it is a concept that many people fail to adhere to. It would surprise you to know delinquent payments and collections may and can have a key negative impact on a credit score. The second way to Improve your credit score is keeping balances low on credit cards. This enables you to avoid high outstanding debts that can ruin your credit score. The third tip is a bit intriguing. Use your calendar. Yes, seriously use your calendar. You didn’t see that one coming did you? Write it down every time you use a credit card to do shopping. Keep a dated record of your shopping because that might be helpful if one is making multiple applications for credit. It usually implies that he or she wants to use more credit. The last but not least important way to mend your credit score is to not go anywhere near your credit limit. This is vital.
The estimated economic burden of illness in Canada amounted to $192.8 billion in 2008. It increased by 14 percent from 2005. This is the latest available data provided by the Public Health Agency of Canada. Every few years it issues a study “The economic burden of illness in Canada” (EBIC). So where was the money going in 2010? One could think that the largest amount of money was distributed to patients older than 75 years. But it was not quite the case. Only 18 percent of totals costs were spent on this group, mostly on hospital care. Another third was distributed to middle-aged patients (from 35 to 54 years). The largest part of funds was spent on drugs and physician care. If we look at gender distribution, then total costs were higher for females compared to males. The latter required more spending on hospital care and morbidity, and less – on drugs. The previous EBIC reports were published in 1998, 1993 and 1986.
Do you want to break free from dumb financial decisions? Use these 3 economic resources for building your financial future. The 3 economic resources that can change your life are property (real estate), Cash in the bank and long term investments. When you are in a job or handling a business, you should try and own property. The owner of McDonalds made a very suave comment about this. He said that “people believed he was in the business of selling burgers, but that was not the case. He was indeed in the business of owning prime properties”. If you look closely McDonald’s stores are always in prime locations and are owned by the company. Now that is some way to secure future. Another important resource one should have is cash in the bank. You can have all the credit cards but cash is the best bet. Cash will work in worst case scenario like a financial crisis. Long-term investment is the economic resource everyone should indulge in. Try and invest 30% of your paycheck and secure your future.
Just starting to earn and concerned as to how you are going to manage your finances or maybe you are just looking to be more responsible with your money?. Proper financial management can be the difference between lifetime financial security and abject poverty. It is therefore vital that you should get a My finances app that will help you manage your finances better. My Finances app should be able to track your expenses over a given period of time. This way it will help you cut down on expenses that you do not need, as well help you save your your money for the future. It should periodically calculate your credit score and how much loan you qualify for. If it can help you to get a short term loan in the various financial institutions then that is even better. It should track your spending and alert you when you are about to exceed your spending limit, which will go a long way in improving your financial position for the better.
You may have seen the recent downbeat economic news as the IMG downgrades Canada’s forecast for economic performance in 2016 – 2017. Actually, this isn’t as bad as it sounds initially.
The International Monetary Fund still predicts that Canadian GDP will grow (by 1.5 per cent in 2016 and 1.9 per cent next year), but not as much as expected in earlier forecasts. This is an improvement on the 1.2 per cent showing of 2015 and is consistent with predictions made by the Bank of Canada. This is something of a dampener on the more upbeat mood of the past few months where GDP and employment numbers have been good. However, as always in economics is it important to take account of the long term underlying factors rather than temporary blips and bounces.
In this case the factors affecting Canada appear to be international trade barriers, the low cost of oil and lack of demand for other commodities due to the global slowdown. There are plenty of countries in the same boat. The IMF forecasts for the USA were dark, as indeed they were for the global economy overall (an exception being for China where growth is predicted at a healthy 6.5 percent for this year and 6.2 per cent for 2017). The body warns that international economic growth is too slow, and this could risk social and political upheaval in some countries.
If we take into consideration current events in economics, the most important is the fall in oil prices. What does it mean for the Canadian economy? Here are a few things happening.
(1) Weakening of the Canadian Dollar – Since the fall in oil prices, the Canadian Dollar has lost most against the USD. This is not good for the economy as the oil prices may take up to five years to reach the $100 level.
(2) Slower economic growth – With the Canadian dollar going down the economy growth is also going to suffer. With Canada involved in oil sands project, it is losing millions of dollars daily. Not good at all for Canada.
(3) Cut in the service industry – Just like other developed nations Canada’s economy is based on service industry. However current events in economics in Canada has led to the consumer having less disposable income. This means that the income will be spent more on necessities. This is bad news for Canada. Finance minister Bill Morneau is facing the crisis of his political career of ensuring the coming budget helps stabilize the economy.
Operations Manager of a manufacturing company who is a dear friend came to me and said, “ Our company recently underwent a major restructuring. During the process many people quit and few moved to different projects. I got promoted in the process but the problem is I find it hard to run the show with allocated budget.I am thinking of quitting.”
I told him to cool down and started with making them learn about basic financial statements. During the process we found out that this company had nearly $400,000 worth stock in the warehouse. They were still ordering more stock. Immediately I called the warehouse manager and asked him about the stock. He said that he had been given this position recently and was not sure what the previous warehouse manager was doing. He was not sure what needs to be done and just follows the orders from the operations manager.
This is when I told the warehouse manager to make a list of all the stock, whatever is in the warehouse. Then next to it you have to tell whether it can be used in the next production cycle. He had to tell whether the raw material in the warehouse could be used in the manufacturing process? If not could it be sold directly to the customers or some other company? Or could we exchange it with the supplier? This decision had to be made by the operations manager as they deal with the suppliers.
Within a week the warehouse manager came with this list and we found out that there was no need to order more raw material. There was enough in the warehouse for 6 to 8 weeks. After two months when we looked at the financial statement, the Bottom-Line had a positive impact and the company was making much profit. They said we had done magic. Of course it was no magic, it happened because we made sure that the company was making more money than it was spending. The stock that was in the warehouse we just used it.
Cash-to Cash cycle is also known as working-capital-cycle. Cash becomes cash each time the cycle goes round. Cash-to-cash cycle starts when business use(Assets / Expenses) cash sourced (Liabilities) to produce a product/service till it receives cash(income) by selling that product/service which again (retained profit- Reserves & Surplus) gets used in next cycle.
When business is using money, it means money is going out of business. When money goes out it either becomes Expense or creates and Asset. The business is using the money it has sourced. These are the liabilities. When it sells a particular product/service and customers pay, the company will receive money. This is when money comes in. This is called Income. The money that the business receives after paying all the expenses, overheads, tax and interest will be left in form of Profit.
Profit cannot be withdrawn completely. A substantial portion of it has to be retained for the business to continue the operations. The retained profit is called Reserves and Surplus.
If you take a closer look there are only three kinds of business in the whole world. It is true just read on.
- Business that makes money by selling a product, which is manufacturing business.
- Business that makes money by offering a service, which is Service business. And
- Business that makes money by selling the product and providing service to the product. Largely it will be wholesalers and retail business.
- Reinvest – It gets reinvested in the business. That is the paradox in business, the more money it makes the more it reinvest. This is because the owners want to expand the business.
- Repay – One of the things that business will do with Profit is to use it to repay the liabilities. Mainly it would be the current liabilities like payable and sometimes would include long-term liabilities.
- Dividend – The owners and investors would take a part of Profit in form of Dividend.
- In a previous chapter we have learnt that, When money goes out, it either becomes and Expense or creates an Asset.
- We also know that, There are two kinds of Assets,
- Performing Assets (PAs)
- Non-performing Assets (NPAs)
- It is suggested to use profit made by the business to spend on expenses if required. If a business needs a more comfortable and healthy working environment for the employees. If it decides to spend money on buying better chairs, latest gadgets, decorative items, better kitchen area; it is advisable to use the money from the profit of the business. The spending should not be from borrowings.
- The borrowing (Liabilities) is the money business has borrowed from insiders and outsiders .It is suggested to use that money mainly on Performing assets than on non-performing assets.
I would suggest you to get in touch with your mentors, consultant or accountant or some advisors you may have in your business or use you common sense to ask this question.
Question: The decision that I will make how will it impact the Bottom-Line of my organization?
Retirement does not mean you should stop spending. It is rather the time to enjoy the money you have earned and saved. Money is a commodity which needs to be used and spent to make the most of it. Retirement plans available in the market might not suit you as they are not personalized. The best way is to build your own retirement plan according to your own specific needs. Since you will be not working full-time when you retire, you have to make a plan to effectively replace 80 percent of your income. Here a few tips for building your own retirement plan.
- Save for the future – The first step is to start saving for the days when you will not have regular income. The traditional way is to save 10 percent of your pay every cycle. However the better plan is to save 30 percent of your annual income. It will help you retire rich.
- Invest in the right place – Money lying idle in your checking account will devalue due to inflation. Hence you need to make effective investment. Spread out the money in form of real estate, stocks and bonds. Build a portfolio to minimize the risk. Also keep some money in your checking account for emergencies. This should be around 20 percent of the total savings.
- Plan and Pay off debts – You should have zero debts by the time you retire. This will help you be stress free and have more money to spend on enjoying your life. Make a plan to pay off all debts like mortgage, auto loans etc. a year before you retire.
- Start working part-time 5 years earlier – Do not quit your current job early. Rather start working part-time on weekends to prepare for your retirement. You will have work to do and the money earned will add to your riches. When you are ready take the pending holidays and work in the new part-time affair.
- Start your own business – There are many examples of people becoming entrepreneurs after retirement. The reason is they have enough money saved and can take risks easily. You can also explore this territory if you actually want to work full-time even after retirement.
Taking cue from these tips for building your retirement plan, you can actually be more productive in the later life. This is due to the corpus you will build which will take care of your needs and keep you in the punk of health.