Financial Assistance

Forecast your finances:

All businesses use financial reports and forecasting. If you ever take a look at your managers, they likely have some form of report on hand regarding their company's financial performance. This will include the numbers from past performance as well as future expectations available for review. As an individual, you can do the same to manage your monthly cash flow. You should build a cash-flow spreadsheet that forecasts your cash position in the coming months. Include your anticipated paychecks and monthly expenses. It's a great tool that will help you paint a picture of where you may be in three, six, 12, or even 24 months from now. If you can be confident that you will have a certain amount of money in your bank account six months from now, you can plan for big purchases. Additionally, take some time each week, or at least each month, to review your financial position. Review your cash balances, spending habits and income streams to compare your actual results with your anticipated results. You may find that you need to cut spending in certain areas, or perhaps you're in far better shape than you originally thought you would be. Either way, it takes the guesswork out of your finances and keeps you in control of your money.

Establish Reserves:

When you know you're faced with a big expense, such as a down payment on a house or a big car repair, start saving for it as early as you can. Merck & Co. Inc., when faced with the Vioxx lawsuits, immediately began building a reserve to put the money aside. Three years later, a general settlement was agreed upon, and with all of the money put aside, Merck was able to easily pay the settlement. We've all heard the budgeting need for an emergency fund, and yes, you should have some cash available for short-term emergencies. However, to take it one step further, start putting money aside in your personal reserve as soon as possible. The sooner you can set up such a reserve, the less effort it will take each month to reach your reserve goal. In the end, even if you never make that big purchase, you'll have a windfall of money at your disposable for other financial goals.

Businesses go under for one reason and one reason only: they run out of money. As an individual, the same fate would apply to you if your cash flow was not in order. Successful businesses pay close attention to their inflows and outflows and take advantage of techniques to maximize cash flow and earning ability of the cash on hand. Practically applying these concepts to your own personal finances can do wondrous things for your financial position and, again, put you in control of your finances, not the other way around. more info here.