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Financial Tips: Self Insurance

by admin on 05. Jun, 2010 in Tips

With insurance premiums getting higher and higher thanks to several factors, self insurance is looking more and more beneficial indeed. It is simply an act of insuring yourself, saving a portion or your income to anticipate potential losses in the future; it has been an effective risk and cost management for years, and it is still highly effective today. When done correctly, there are several superb benefits you will get from self insuring.

First, you may or may not have to endure losses in the future. Insurance with no cash value or 100% premium return policy will not give you any compensation if you have no claim, and the premiums you have been paying should be considered as unrecoverable costs. On the other hand, self insurance allows you to still have enough money to cover for losses as well as other things in the future.

Next, you can also use self insurance as part of your retirement plan. Self insurance is no different than saving your money on a separate account, so you can use the money for various productive things including investments. You will enjoy a nice stream of income as a result of your investment, allowing you to enjoy better retirement.

Last but not least, self insurance can help you save a lot of money for future plans without hassle. You can formulate a plan to properly take out a small portion of the self insurance funds after certain period of time to cover for various needs including paying for your wedding or getting a new car.

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Individual and Business Insolvency

by admin on 06. Apr, 2010 in Tips

R3 is the major trade body for insolvency practitioners in the UK. One of its important tasks is to provide up to date information on the state of insolvency in the UK along with related matters. It announced in late March 2010 that more than a quarter of SMEs (Small to Medium Enterprises) in the UK anticipate that should the economy again enter recession, that is the so-called double dip recession, they are in severe danger of becoming insolvent. The reason is that these companies have only just managed to stay afloat during the recession and have exhausted all their resources in doing so. There is nothing left that will save them for a second time.

This is not uniform throughout the economy and some types of business are suffering more than others. The worst sector is the catering business where 47% of businesses are facing imminent insolvency. Interestingly, despite the reputation of the manufacturing sector in the UK, this is the sector that is performing best. Only 19% of small manufacturing companies are in danger of insolvency.

In the UK, 97% of businesses employ less than 20 people and employ over 12 million workers, which accounts for 58% of people working in the private sector. If a quarter of these companies really do fail and become insolvent, then up to 3 million people are in danger of losing their jobs.

Job loss is one of the major contributors to individual insolvency and, should the economy take another nose-dive as well it might do if the predicted hung parliament becomes a matter of fact, then a great many individuals along with business owners will need to face up to the stark realities of becoming insolvent. In many circumstances the best way of dealing with insolvency is through an IVA or Individual Voluntary Arrangement. IVAs are applicable to both individuals and businesses. IVA Advice and insolvency in general can be found at the IVA Advisory Centre.

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Finance Tips: Expenses

Finance Tips: Expenses

by admin on 20. Mar, 2010 in Tips

When it comes to personal finance, you can’t be too careful. Most of the time we don’t really calculate and manage our personal finances the best we can. Expenses should be managed carefully to make sure your income can cope with them all easily. In this part, we are going to discuss about simple tips you can use to help you control expenses properly.

Start with making notes on every expense you make each day. Carry a small notebook with you at all times and write down expenses as soon as you make them. Managing daily expenses is among the hardest things to do when it comes to controlling your personal finance, and this simple action can actually help you manage daily expenses a whole lot better.

With all expenses written down, you will also have no trouble at all managing the expenses and making a quick recap at the end of the month. For the following month, you should analyze some unneeded expenses and create a monthly budget in an instant. Again, this move will help you control expenses for the following month without hassle. Stay true to the budget and you will be saving a lot of money in no time – keep writing down expenses you make along the way and evaluate them to see if you’ve met your budget as well to create another monthly budget for the following month. Keep repeating these steps; you will be able to enhance your personal financial state in no time.

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