During your daily life How many times once some form of commercial that motivates you to spend and consume? And how many times an ad out how to get rich, make money or bring your finances? It is essential that gradually seek this formula to help us better manage our money. Here are some tips that can help us increase our knowledge a bit of money.

Do not Flee to The Inevitable

When we are in distress, or when we feel a bit overwhelmed by our finances, we use an internal mechanism of defense that invites us to avoid the conversation. Many of us, sometimes without even thinking, we decided not to touch the issue of bad spending money, our lack of savings or that only increases our debt. To avoid our impulses to make poor financial decisions, we must understand that taking or not in the matter, things will happen. It is better to learn to face our financial challenges and be active participants in decisions.

Educate yourself about personal finance one issue at a time

The process of financial education and economic freedom covers many points. And there’s always a question or concern that you might have. Instead of trying to see personal finance as a lot of things you have to learn at least as long as possible, choose a topic that interests you and devote yourself to look for a few minutes on the subject on the Internet. Chances are that several people have already written about in any medium: paper, blog, radio, conferences, newspaper, magazine, video, webinar, tweet, etc.. Ask your best friend google search on personal finance topics that interest you and allow plenty of time to learn about this subject.

Get support from someone who knows finance

You need a coach to help you meet your goals and push you. All persons in the Olympic games have that in common, what do succeed in these events is not only the skill as an athlete, but also to have someone who can help them follow this path. In personal finance is exactly the same. Chances are that if you wanted to learn personal finance alone / what you can do, but if you can find a person who continue to listen or help you more.

I do not mean you have to pay a professional to help you, there are professionals who help for free, others have radio, television, radio, etc.. which may help to have more knowledge about your finances without even spending money. Just try to hear or read about this in the perspective of people who are a little more advanced knowledge of the subject. Find classes, personal counseling, support groups, gatherings, fairs, conferences, meetings, video chats, forums … anyway there are thousands of ways of how to talk to others who are with you. Understand that you are not alone on this path, and there is a lot of support out there to start your race to financial freedom.

The important thing is to start now!

 1. What I want to cover customer needs?

 Call it new business idea or business concept, the purpose is the same and have to be very clear from the beginning. A business, a company has to provide value to its customers, covering needs in exchange for paying a price. If your idea meets a real need, does not work. In this blog we have talked many times about the business idea, and as can be assessed . Always repeat that it is essential that an improvement contributions , however small, of what already exists. No need to invent a product like the iPhone to succeed, just a little bit better what already exists may be sufficient, but you have to make sure there is enough market for your project.

2. How much is the customer willing to pay for my product or service?

This point is very important. First, because in many cases the client, but appreciates the contribution of your concept is not willing to pay for it. On the other hand, if the customer is willing to pay something, it is normal to not want to pay as much as you want. Pricing policy, we refer to the article that we wrote a while ago about selling expensive or cheap .

3. How much does it cost to produce?

Once you have a better idea of the potential market and the price you could put your services and products, is a very important point: How much will cost to produce? Obviously, if you create a company is to make money, therefore it is essential you consider variable costs and fixed costs of your project, to get a first idea of profitability. If you see that it costs much more than you could sell your idea in principle has little future, but not discouraged, by focusing may otherwise be profitable. Often, entrepreneurs are guilty of greatness, and want to start with an extensive local and well located, several employees, new equipment, etc.. Approaches to make it very difficult big a project to be viable, because it does not hesitate: the cost will always be greater than what you’ve been able to estimate and revenues will be lower. It is better to start with humility and less spending.

4. Am I qualified for this business venture?

One of the major causes of failure of a business is that the promoter of this project is not qualified to lead it. It is therefore important to ask if you really honestly have the ability to turn the idea into success.One of the most important is to know the area where you work. The enthusiasm and interest in your project, although necessary, are not enough. Imagine that you have always worked in a bank and your dream is to assemble a chain of pet stores, because I love pets. As much as I do hope, if you have the industry knowledge and contacts, it will be impossible to succeed, but you’ll be very, very difficult. In this case it is better associated with one or several people that give you the look you are missing. To return to the example of the pet shops, if you read the interview we did long ago Kiwoko Javier Osa , see how the partners have completed profiles. 

5. The Business Plan

Once you have more defined your idea and your first estimates make you think that is viable, the real work begins with the business plan . You have to study in great detail commercial and financial aspects of your project. Answering questions as important as What you sell? What is your clientele? What are your competitors? It is important to be very concrete. Imagine that you are putting a bookstore. The answers to these questions can not be: sell books to readers in the neighborhood of X and my competitors are the Fnac and the House of Books. The generalities do not apply. I’ve only taken a small example of a fraction of the commercial studio business plan . There are many more aspects to be analyzed, but what I wanted to make clear is that it must be detailed and specific work. Starting a business is to compete, and you can not win with generalities. We must provide specific and explain clearly know. Or else, as I said Jack Welch, former chairman of General Electric: “ If you do not have a comparative advantage do not compete . “ The business plan will also define how you are going to work, which means that staff, in that place, etc. . It’s like a dress rehearsal for your company, with all relevant aspects. If you are choking, you can ask for outside help. 

6. The legal form

Once you have clearly defined your project, you must decide how you’re going to formalize. In Spain can be summarized in two major options (although there are more): autonomous or limited partnership .Simplifying, one can say that if you take a solo and the volume of benefits estimates will not exceed an annual salary of about 45,000 euros, the best thing is to choose to register as a freelancer. In case of further benefits, other partners, an important billing or legal structure itself of the company is relevant to your image (in certain circles, suppliers and customers will ignore you only if you have a society), then you better choose to create an SL ( limited), you can start with only $ 3,000 of capital. 

7.Funding

The business plan will determine how much investment you will need, and how much money you’ll need to cover more than certain losses of the first months (sometimes years). Then or already have the money (congratulations, you can start your project), or like most entrepreneurs, you have to get it.There are several sources of financing , from your own savings, money from friends and family, public subsidies , bank loans or equity investments in the company’s venture capital funds or business angels.

8. Partners

Another important aspect is whether alone or if you rush you with partners. This depends on your personal skills, your preferences and your needs. As explained above, if you lack knowledge (financial, commercial sector), you can come in handy to have a partner. But we also value your management style. If you prefer to work alone and you want to control everything, may be better to throw alone, but work alone is not easy . If you choose to associate, you must avoid the errors discussed in a previous article . 

9. The location

Where you go to put your business is always important. Clearly, if it is a shop, you’ll have to find the most appropriate, and never forget you have to go where the customers are not expect customers to go where you are, because for this type of business location is essential. Although I have no shop, there are other aspects to consider. Always have to get customers or suppliers, so being in a village 80 miles from civilization is probably not a great idea. Similarly, if you opt for online trading, you have to find a location that allows you to optimize your logistics. Find a local is not always easy , but finally everything is accomplished. 

10. Employees

Employees are your most important partners. They are the ones that offer your customers the best products with the best quality of service. You need to have them happy to work with you while you demand the best from themselves. Perhaps the first thing they have to explain is that you are not going to pay the salary, which is responsible for this customer, as well said Henry Ford . At the time to choose, think about what is best for your long-term company. It may be that at first you do not have money and want to hire unskilled labor for little money, but ultimately if your employees are not bad for you better than you. Always look for the best for each task . If there are people with much experience, commitment to young people with potential. Human resources are arguably one of the most complex issues in managing a business, because mandatory mixed emotions economic goals and preferences. But you learn a lot and fast. 

11. Suppliers

Undertake means learning to buy. If not careful this fundamental aspect, you can not provide the best services at the best price. negotiates always , and for several quotes for all relevant purchases. Try to build trusting relationships with your suppliers long term, because more than one occasion you may get some trouble (for example when you need a product urgently for your most important client).

12. Finding and satisfying customers

You have everything to get going, but you lack the most important: a client that you buy your products or services. And do not kid yourself, though you have a very visible local artery busiest pedestrian street will have to go look for your customers. You will have to advertise, suggest phoning your service or send your business on the town door to door. The blog readers know without a doubt the number of article published last year to give clues about how to find your first customers or how to increase your business sales . But not enough to find them and convince them. Quality must be met to become regular customers. It is important to measure your customer satisfaction and implement processes for continuous improvement. If you do it, so will your competitors. 

Hence, financial planning plays a key role in the smart investment. Thanks to financial planning your financial advisor can build for you a “plan” to follow that allows you to accumulate the amount needed to meet expenses happily in the future, and also enjoy the much deserved time off, after years of working. Through financial planning can determine the optimal amount of savings for the investor given their personal and, from there, you can decide which are the most appropriate investment vehicles to achieve your goal, but first, determine the customer’s risk profile, in order to verify the degree / level of exposure to equity markets.

Also, note that financial planning is not only a tool used to help you prepare for retirement, but can be applied to any project that an investor should keep in mind, for example, expanding a business in ten years, to fund Masters of their children abroad in five years, and so on.

So without further ado, feel free to good advice from professionals, to help you build a customized plan that most closely matches your needs. And of course, do not forget to keep a close relationship with your financial advisor to be informed of the progress of their investments at all times.

That is why now more than ever we need to tie in to cut expenses and analyze the situation of our personal finances to budget our expenses. In the case of those lucky families who have sufficient financial capacity to cover their costs and generate savings every month, should immediately include in their monthly budget amount of money to build a savings fund for contingencies .

A health problem, a breakdown, pours a fine … the unexpected expenses that can occur are numerous. The first question to be one, is, could bear the extra expense without recourse to financing or other dip into savings for other purposes. To avoid losing control over our personal finances, we must accumulate a capital equivalent to at least basic expenses for 6 months.

If you have a previously saved capital, we can allocate a portion to begin with and forced to separate small amounts every month to complete. In the event that starts from zero, the monthly savings amount will depend on regular income payments and planning to have . No monthly expenses are equal, but always try to meet a fixed constant. The goal is to reach as soon as some financial security through savings.

Another important point to refine the characteristics that must have the form of savings chosen for that contingency savings fund.

Since this is money that we may need at any time, that money must be invested in a liquid product .

On the other hand, since it is a regular savings, how savings should be flexible and able to add the monthly amounts will get save.

It is capital to provide financial security in an emergency, you should not put that risk savings products. Since this money we will assume a zero or very low risk and have a preference for liquidity, profitability target is at most of the inflation . This will avoid losing purchasing power in the capital saved.

The investment options that best fit these characteristics, are the savings plans, paid accounts and money market funds or treasury . It is not advisable to keep cash at home or safe deposit boxes.

Should be checked every so often the family budget, and planning expenses for payment may vary and the amount of savings would require an adjustment.

There are many domestic accounting freeware that can help us have a more exhaustive control of personal finances. Easy cash money for download or some online applications such as Contamoney are some options. However a simple Excel sheet can suffice. If Excel with ease manege I recommend this to -Excel Templates Artemio completely free.

In the event that you are in the case of a cost structure that exceeds your income so loose, you must have to do something similar to a policy shock, similar to economic adjustments so in vogue these days.

The first point of this program sort of personal finance is something that would even common sense, but often is not: stop spending more than you earn. This phenomenon is more common than it seems, given the numerous incentives to spend around the individual, but spending at all, will end only with work to pay the debts. Like any plan of adjustment, it is recommended that can put together a budget, to be clear how much money, how much money does it take to daily spending and how much you have to occupy to pay debts and loans. In establishing the fee structure may be clear what you need to pay and consume a budget.

A second point is to stop spending on credit cards. Many times by placebo consumption, falls into the trap of credit card. No we do not use it, but if you are taking, be clear that often can become a heavy consideration, especially by the interest and fees that banks saddled by its use. Ideally, if using credit card, only to be used for specific expenses and can be paid quickly.

A third point is the money not being fair. Like all countries, families and individuals should have some reserves, whether in local currency or currencies as the U.S. dollar, since having emergency savings, you can meet in a better way contingencies that arise during the course the year.