Easy Ways to Simplify Your Finances

Trim Spending If Possible

In the present scenario, prices on commodities have been escalating and at times one may find it difficult to cope up with the expenses wherein it tends to get more than the income. No matter how hard one may try to simplify life there seems to be no way to mentally track every financial deal in the current busy world.

Keeping track on the budget of what comes in and goes out, is very much essential which could help in understanding where one tends to spend more and where you spend it, so that you could trim spending wherever possible. The aim is to understand and trim the budget categories which would otherwise lead to stress and several sleepless nights or probably financial adversity. Creating a personal budget could be helpful since it provides a deep vision on the finances, on its expenses and savings. It is essential to first list out –

•  Fixed expenses which are those that do not tend to change for instance the homeowner insurance, mortgage etc. 
•  Variable expenses are those expenses which may differ monthly such as the electric bill, water bill, grocery bill etc. 
•  Check which major categories each bills may fall in, such as home expenses, phone expenses, car expenses, utility expenses etc. 
•  List out each major category, detail each expense under the categories and sum up each category which will then indicate on the accurate expenses incurred in each category. The individual will get a better insight on the expenses done and where one could draw the line in curtailing the expenses.

Personal Budget

You could follow the steps by starting on making a list of necessities which needs to be paideach month by creating a personal budget. These could be the expenses which cannot be avoided and is incurred every month as mentioned earlier like the groceries and all the payments of utilities.

Then we have the personal expense ladder which may include things which provide security and peace of mind like health insurance, life insurance etc. If the expenses tend to exceed the income slab, one may need to reconsider on the expenses involved which could be the internet usage, cable or satellite television, phone etc. and find out means of curbing on the expenses which would not be much of a strain at the time of making payment.

The amazing thing about personal budget is that it is an eye openeron where you can cut down in some areas to save on some cash.

IRA – Individual Retirement Account

Individuals could evaluate their net income or loss by considering the income and subtracting the expenses and you tend to meet up with a positive number. Then there seems to be a balance left after meeting all the expenses.

The extra money could be then put into a IRA which is an individual retirement account, offering a valuable future tax break, a tax-free income during retirement. The benefit of a Roth IRA is based on the beholder’s tax bracket, both now and when they tend to retire.

 IRA is an ideal saving for young lower income workers, who will not miss the upfront tax deduction and will benefit for years of tax free compounded growth. Cutting down on unwanted expense could also help while making purchases which could benefit tremendously in managing the income within its limits and be able to cut back for some free cash.

Three Ways To Take Your Jewelry Company To A New Level

These days, many jewelry companies are ready to operate at a greater level of excellence and expedience in order to optimize their conversion rates and expedite daily operations. If these are your objectives as a jewelry owner, it's important to note that there are numerous ways for you to realize your objective. Here are three:

1. Invest In High Quality Refining Services. 

If you're serious about taking your jewelry company to a new level, consider the value of investing in high quality refining services. Refining services help your products look as pristine and perfect as possible, and this can contribute to the development or maintenance of a very positive reputation in the mind of the public. Once you start looking for the ideal refining services, consider a company such as JRG. With extensive industry experience and a passion for making your jewelry look absolutely amazing, the company's professionals can provide you with the excellent, expedient products and services you're looking for. Click here to learn more about the company.

2. Seek Digital Marketing Assistance. 

In addition to investing in high quality refining services, it's a good idea to seek out high quality digital marketing assistance. This strategy is important because effectively advertising your company via internet is a wonderful way to extend your sphere of influence and build a bigger base of lifelong customers. To ensure that you pick the ideal digital marketing company to assist you, make sure that the firm you select can offer all of the following services:

•  online reputation management (ORM) 
•  link building 
•  social media optimization 
•  keyword research 
•  Google analytics 
•  content creation 
•  web design and development 

3. Focus On Employee Optimization.

Your employees play a profound role in determining how effective your business will be. Since this is the case, it's a good idea for you to focus on employee optimization. There are numerous ways that you can help your employees become better on both a personal and professional level. One strategy you should consider is periodically throwing corporate parties or company get-togethers that take place outside of the work setting. Doing so enables your employees to connect with one another in a more personal way that can help facilitate group cohesion and diffuse office tension.

Conclusion 

If you run a jewelry company and want it to be as successful as possible, it's important to know that implementing a strategic plan can help. When you're ready to get the process started, consider the value of making the aforementioned tips an integral component of the strategic plan. Good luck!

Asset Allocation - Don't Put All Eggs in One Basket

Asset Allocation – Portfolio Distribution of Various Investments

Asset allocation is a term on how the portfolio is distributed with the various investments. As such there does not seem to be any simple formula which could define the right asset allocation for a single investor. It is one of the most major decisions which investor could make, according to a certified financial planner and the founder of the Delancey Wealth Management, Ivory Johnson.

A simple expanded portfolio could comprise of many investment classifications like stocks, cash and bond and the allocation to each of these groups should be based on the investment goals, risk tolerance as well as the time horizon needed for the utilisation of the funds.

However the agreement among several financial professions is that asset allocation seems to be one of the most major decisions which investors should make. Selection of individual securities is secondary to the way one allocate the investments in stocks, bonds and cash as well as equivalents which would be the main factors of one’s investment consequences.

Extension of Financial Plan

In brief, asset allocation should be an extension of a financial plan. Three main sections of asset being equities, fixed income and cash and equivalents, tend to have various levels of risk and return. Hence each will behave differently over a period of time. The benefits of using an expanded asset allocation are that the combination of several various investments could have varied patterns of returns according to Johnson. He adds that this would mean that the goal of portfolio variation would be to generate the maximum possible return for a specified level of risk.

For instance, if a portfolio of a small company stocks could cause greater returns than an exp

anded portfolio of stock then it is unlikely to achieve that result without considerable more risk or volatility. The outcome would be that in the process of determining an appropriate asset allocation, the combination of assets to hold in your portfolio would be a very personal one. Asset allocation which would work best at any given point of time would depend mainly on the time horizon as well as the ability to handle the risk factor.

Life-Cycle/Target-Date Funds

Known as life-cycle, or target-date funds, asset allocation mutual funds are an effort in providing investors with a portfolio structures which would address an investor’s age, risk factor as well as investment objectives with an adequate allotment of asset classes.Nevertheless, critics of this approach indicate that coming to a standardized explanation for allocating portfolio assets, can be challenging due to individual investors would need individual solutions.

By including asset groups with one’s investment returns which tend to move up and down under various conditions in the market within a portfolio, investor get the opportunity of protecting themselves from substantial losses. Generally, the returns of the three main asset groups have not moved up and down at the same time and the market condition which tends to cause one asset group to do well often causes another asset group to have an average or poor returns.

The investor here on investing in more than one asset category tends to reduce the risk of losing money and his portfolio’s overall investment returns will not suffer losses. Should one asset group’s investment return tend to fall; the investor would be in a position to counteract the losses in that particular group with a better option in investment returns in another asset group.

Greek and Tunisia Crises Set to Hit Thomas Cook

Tour operator Thomas Cook is set to lose million by way of revenue due to last week’s terrorist attack in Tunisia as well as the on-going financial chaos in Greece as they head in the peak of summer trading period. According to analysts at Jefferies, these two catastrophes could cost the under-pressure FTSE 250 Company, around £20m.

Thomas Cook is due to report the third quarter numbers covering the three months to the end of June and is expected to update shareholders on how Tunisia and the uncertainty about Greece has affected its business. According to analysts estimate, ten percent of Thomas Cooks’ passengers tend to travel to North Africa with about a third, bound for Tunisia.

Earlier in the month, the Government had warned against all, though essential travel to the country after around 38 tourists, most of which were Britons, were killed on June 26, when an Islamist gunman had attacked holidaymakers at a beach resort in Sousse.

Due to this, Thomas Cook had cancelled all booking to Tunisian till the end of October and flew all its customers home. Uncertainties about travelling to Greece also affected the tour operator. The tragedy in Tunisia as well as the chaos in Greece has been a difficult time for Thomas Cook.

Imposed Capital Control to Protect Banking System

Besides, Athens had also imposed capital control in a desperate move in order to protect its banking systems amid fear that the indebted country would be forced from the Eurozone.While the introduction of capital controllimits Greeks to €60 a day from ATMs,the same is not applicable to tourists, where the country is facing a cash crisis.

 The FCO have advised Brits who tend to travel to Greece to ensure that they carry sufficient cash which would last for the duration of their trip. Analysts stated that tourists travelling to Greece and were advised to carry plenty of funds with them had fears related to theft which could have discouraged travellers from late booking to the country.

It has been estimated by Credit Suisse that Greece accounts for about 15% of passenger volumes in summer season. Besides losing some of these bookings, the company’s margin is also likely to have come under stress as it struggles to find substitute destinations at late notice for the customers.

Analyst at Jeffries, Mark Irvine-Fortescue stated that `the terrorist attack in Tunisia and the on-going uncertainty in Greece add risk for tour operators heading into the peak trading period.

Share Prices Dropped Due to Attack/Turmoil

Tunisia is likely to negatively impact holidays in the region. The `Grexit’ saga creates uncertainty which could hold back some potential for late bookings’.

The tour operator also faced calls for a boycott in May when an enquiry in Wakefield ruled that the company had breached its duty of care when two kids had died of carbon monoxide poisoning due to a faulty boiler, in 2006. Irvine Fortescue has further commented that `while Tui and Thomas Cook have provided public assurance about customers being unaffected, Sunday’s `no’ vote meant more uncertainty which is not helpful’. Both the companies’ share prices had dropped recently due to the attack and the turmoil in Greece.

Greece Asks For A Third Bailout

Greek Government’s Official Request – 3rd International Bailout

The Greek government has officially requested a 3rd international bailout in order to help in paying its debt, to prevent economic downfall and ejection from euro. It was recently confirmed by the European Stability Mechanism which acts as Europe’s financial rescue fund that Greece had applied for a new bailout package. According to a senior economist at ING, Carsten Brzeski who informed CNBC through email that there would be new negotiations and these would be tough.

Greece had received its first aid in 2010 with 110 billion euro rescue package while the second program brought the bailouts of 240 billion euros, for which the payment deadline was extended recently for another four month on the premise that the Greece’s government would be making a renewed push for economic improvements. Greece still needed financial help due to its huge debt burden unlike other euro zone members likeIreland and Portugal.

The latest bailout program ended recently and Greece had missed the big debt payment to the International Monetary Fund thus becoming the first developed economy for non-payment of fund. The Greek government has requested for the new package for three years and has promised to present fresh economic reforms for exchange of money. Moreover it has also implied that it would prefer some form of debt relief from previous bailouts.

Greece Economy in Deep Crisis

The European Union is expected to come to a decision soon whether to grant another bailout program once it receives more details with regards to the economic plans of Greece. Recently the International Monetary Fund had estimated that Greece would need at least 50 billion euros though analysts are of the opinion that the figure could be much higher since the IMF analysis had been conducted prior to the Greek banks being forced to shut down creating added havoc on the economy.

Greek economy is in a deep crisis due to years of overspending as well as mismanagement and the government has fundamentally run out of funds. Banks have been closed for over a week and will continue to remain close for some time with cash withdrawals being stopped for individuals and businesses. Driving has also been stopped by regular people since they now want to conserve any cash that they may have.

Experts are of the opinion that Greece would soon be compelled in printing their own currency and ditch the euro if the leaders tend to disagree on the new rescue package. Market News International – MNI, the News organization had recently reported that the creditors of Greece have been considering the possibility of a third package for several months, quoting top euro zone official.

Germany Powerhouse of Euro Zone

The source also informed that the possibility had increased in the hope of higher deficits and weaker growth owing to the turmoil of the recent snap election of the country. The deputy parliamentary floor leader of Chancellor Angela Merkel’s CDU party, Michael Fuchs, informed CNBC that another round of financial aid would probably be difficult.

He commented that it would depend on the Greek Government and that they have to come up with serious proposals. Greece needs to show that they are capable of really changing the situation. Germany has been known to be the powerhouse of the euro zone and the German taxpayer had portrayed signs that they are little more reluctant in continuing to bail out the struggling euro zone nations.

According to a recent new survey by Polit Barometer, around three quarters of Germans are in doubt that the Greek government would implement the announced serious measures and reforms while an INSA poll also indicated that only 21 percent of Germans support the present extension for Greece. German parliament had voted in support of the bailout extension, however with lot of dissatisfaction shown in these polls, it could not be too long before the German politician may change tact.

Cease Fire But No Peace Agreement

ING’s Brzeski informed CNBC that `the current compromise was a cease fire but no peace agreement. A lot of goodwill has been destroyed by the Greek negotiation strategy and it is completely open whether there will be an agreement on a third package or whether we could still see a Grexit later this year’.

Chief executive at the German Federation of Industry, Markus Kerber, had informed CNBC that Greece needs the reforms for the people of Greece and not just of its international creditors. He further added that Greece has four months now to show that the new government would be willing to do the structural reforms in the country that has been waiting for long and if this happens in the next four months, then there could be signs of hope on the horizon’.

In the meanwhile, a second reading of gross domestic product for Greece recently indicated that the economy had contracted 0.4 percent in the last quarter of 2014. Leaders of all 28 European Union countries would be holding a summit to decide on Greece’s fate in the euro and have warned that any bailout deal would tend to come with tougher requirements than the earlier deal offered which was rejected by the Greeks in a referendum earlier this month.