WACP Business Blog

December 10, 2009

A general idea on personal finance

While finance is normally considered to be a highly specialized area involving big industries, global market, etc, the fact remains that it affects a common man equally as it affects the biggest of the industrialists. In fact over the years the notion of personal finance have been continuously gaining importance and has now emerged as a major area in a nation’s economy as well as an important academic discipline. Actually the rise of a global consumerist economy accompanied by a popular materialistic way of living have significant contributions towards the rising weight of the idea of personal finance.

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To define in extremely simple terms, personal finance is the relevance applied on the basic values or doctrine of finance to the decisions related to the monetary or the fiscal aspect of an individual social unit such as the family. Among the various elements that will be usually belonging to this broad umbrella category are the manners adopted by individuals or families to perform the various finance related tasks such as budgeting, managing the savings, along with spending money over a given period of time while at the same time considering an assortment of monetary risks and potential events that may happen in life. The components that generally comprise personal finance are savings accounts, stock market investments, plastic money use, and plans for retirement, social security benefits, management of income tax and insurance policies among others.

The planning of finance is certainly a significant aspect of personal finance and if categorized broadly it involves five stages.

  • Assessment – Quite obviously, reviewing one’s present financial status should be the step number one. One must try and create a balance sheet like structure complete with assets and liabilities to have a kind of reality check.
  • Goal setting – Once the assessment is done and over with, it is then turn to place an array of targets which will certainly help in financial development. Both long term ones like post retirement plans as well as short term ones like buying a sedan in a couple of years can prove to be beneficial in the long run.
  • Making plans – Here comes the crucial part about making a concrete scheduling like arrangement that will facilitate and contain the various relevant features about achieving the targets mentioned in the previous point. Various items such as reduction of pointless expenditure, trying hard to increase one’s service returns or pay and even ideas about making some investments in stock market and maybe reinvesting a certain portion of the profits among many such other points can be included in the plan.
  • Executing the plan – Following the crucial part comes the perhaps the most difficult step. More than a flair for financial aspects one often needs restraint and resolve in order to execute the financial plan.
  • Monitoring and reassessing – Finally after going through all of the above mentioned stages, the personal financial plan has to be checked and supervised for probable modifications or reconsiderations.

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November 28, 2009

A basic overview of mortgage refinancing

Even before coming to a decision regarding refinancing, one must have a clear idea regarding the entire cost of refinancing against the savings factor which should be calculated in details and analyzed to the t at the very onset of the procedure. Usually the rate of mortgage must take a dip of about 2% so that the money that is being spent for refinancing can prove to be beneficial in any way. Thus a detailed comparative understanding must take place between the existing and the newer rates so as to have a comprehension about the extent of money that can be saved.

Now once the mortgage provisions get changed, and one decides to go for refinancing it actually turns out to be nothing else but an entirely fresh deal of mortgage. Now, apart from the rate of interest, one can also go for making several other changes in the agreement and these will include items such as the tenure of the loan which can allow the individual to pay for the loan for a longer period of time and in turn getting a chance of paying back in smaller installments. However, amidst this entire phase of excitement one must not get over enthusiastic and end up making such a large number of alterations in the deal that finally it proves to be more disadvantageous than useful.

Many a times, however, it has been seen that people are somewhat uncertain and in two minds regarding taking a decision about mortgage refinancing citing the procedural complications as a reason. However, this not really a factor to be taken seriously because despite the popular ideas that people may possess, the process of doing it is not at all complicated. In fact, contrary to these popular ideas, once things are approved by the relevant organizations and concerned authorities, an individual needs to only take the pain of signing a few documents just as he had done while opting for his previous mortgage deal and nothing else. But it’s always better to keep all the existing documents at hand and co-operate as much as possible with the lender, resulting in a secured refinancing more quickly along with healthier conditions.

Thus one requires arranging the files and documents and also getting them copied accordingly since it is very easy to misplace these documents once someone shifts to a new place and settles down. Then it is always a stressful time accompanied with loads of domestic fights and quarrels during the time of refinancing while trying to locate these misplaced papers. The copies will provide with a back up in such emergency cases. Finally one must realize the fact that it is not possible to change things easily once refinancing is complete. The process, even if not a complicated one, demands a lot of time and money. Hence it is always better to do the necessary R&D including taking advice and guidance from suitable people before leaping on to a final decision about refinancing.

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November 9, 2009

10 keys to fiscal success

To improve upon one’s financial conditions is perhaps one of the most popular New Year resolutions taken by people across the globe annually though only a handful would even materialize into any traces of improvement. The following is a basic list of ten most essential guidelines that can really make a difference in the aforementioned field.

  • One of the first and foremost things to do is to be sure of the earning and spending  ratio while getting paid according to one’s true merit and value in the market. A constant evaluation of one’s expertise, efficiency, job tasks and input to the corporation is extremely significant for achieving this.
  • On somewhat similar lines as the above point is the notion of budgeting. One must plan out his or her saving as well as spending objects irrespective of the income.
  • One needs to be extra cautious while dealing in plastic money as they tend to result in a pile of debt too easily. In most of the cases they emerge as a primary impediment for one’s fiscal progress.
  • Sticking to a 401(k) plan which unfortunately most people seem to neglect is certainly one of the best possible deals that one can think of in financial terms of profit or gain. Contributing to this plan about post retirement on a regular basis can result in a bulky amount waiting to be taken home.
  • Having a monthly savings plan is another significant plan which may prove to be extremely fruitful at the end of the day. Even before one starts to plan the expenditure on the pay day, a pre decided amount must be kept aside for savings purpose.
  • While the post retirement plan is certainly a lucrative option for boosting up one’s financial condition, it is always advisable to invest money in other plans as well for financially successful.
  • To make the most of one’s employment benefits is one of the best ways to remain ahead of one’s peers in fiscal terms. These will include tax reduction, medical insurance and spending accounts among other things.
  • Despite all the signs of dissatisfaction expressed by people while talking about paying monthly premium for the insurance coverage, one must never neglect this aspect as it provides the most necessary element of security in one’s life reducing the factor of risk to a great extent.
  • Drawing up a will is one of the practices that everyone must learn and observe. Irrespective of the fact that one may own a fortune or a little piece of property, it is a healthy practice that needs to be followed at least for the sake of one’s dependants and loved ones.
  • Instead of gathering up and sit with the relevant documents once in a year during the time of paying taxes, it is always better to keep a record and updating it regularly. It prevents one from overlooking factors that may even prove financially beneficial.

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July 17, 2009

Techniques for hiring employees

Filed under: Business planning,Finance — Tags: , — cloud @ 6:04 am

Ever assigned a task to your employee and realized that it was a big mistake when the work was finally submitted? Most companies fail to recognize the importance of the discipline that needs to be maintained while hiring. The key to accomplishment of projects and tasks is delegating it to the correct workforce. The first most important aspect of assigning tasks is to ensure that the results are measurable. The assignments may produce tangible or intangible results, since both can be measured according to company rules; the employee needs to be evaluated based on the anticipated results. Employees are the most important asset of a company, more important than any other tangible asset. The process of hiring is extremely crucial both for small and large organizations.

How to hire the correct set of people?

Most companies concentrate on people management but this is a process that needs the management’s attention after the HR team has recruited the correct set of people. How to do that? Here are a few tips.

  • Determine the skill sets required

This is the first and foremost step to be considered while hiring employees. The definition of skill sets will give a clear idea to the recruiters when interviewing candidates.

  • Job description

A fair and accurate job description will encourage the right kind of people to apply in the first place. This will reduce the work of the HR department during the screening process.

  • Determining the budget for the hiring cycle

The expenses of recruiting are high because of which it is important to determine the upper limit of the expenses practically possible for the company to spend.

  • Advertisements

The media used for advertising is vital to the applications that a company receives. The mode of advertising needs to be finalized on the basis of the job. For example, if the vacancy to be advertised is for a middle managerial level then newspapers are the best option.

  • Employment agency

In cases where the experience of hiring people through an employment agency has been fruitful, it is advisable to use their services till they yield success.

  • Screening and interviewing

This process is where the interaction with the applicants begins. It is essential to have a good screening process so that the HR team can devote more time to the actual task of interviewing after selecting the final candidates.

  • References

Checking the references mentioned by the employee in the application is important to verify the candidate’s credentials.

  • Offer letter

Once recruited, it is obligatory for the company to give all details to the employee in writing. The letter includes terms and conditions of employment that encompasses the details of salary, leave policy, resignation procedures et al.

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August 5, 2008

Really Communicate To Your Website Visitors

This article might be a bit different than you’ve come to expect from a webmaster-related article. The reason is that, in my opinion, it is a facet of the internet many people don’t really think about. And that is communication. But, by communication I mean more than just talking or writing. Read on…

What is Communication?

Communication is defined simply as the transferring of an idea or concept from one point to another with full duplication on the receiving side. This last component is one often forgotten. So, a full one-way communication would be Fred has an idea about a widget. He propels that idea across space to Ted. Ted receives the communication, understands it, and has full duplication on his end of the exact concept Fred was thinking about that widget. Now, a full two-way communication would be the above process, but with the addendum that Ted thereby acknowledge Fred for his communication, sending the acknowledgement across space to Fred, at which point Fred receives the acknowledgement and fully duplicates and understands the acknowledgement. Fred would then thank Ted for this acknowledgement.

So, what we have here is an interchange of ideas with full understanding on both sides, as well as the full understanding on both sides that their communication(s) is/are being received.

Why Do I Bring This Up?

Good question. The above communication formula applies to everything. Interpersonal relations, business, family, etc. However, we are in the business of websites. A website, by its very nature, is a communication medium. If your site does not properly observe this communication formula, you may be spinning your wheels posting and emailing your visitors/customers and they might still not really be receiving your communication. And, again, I emphasize that receipt. When you email a customer, I am not referring to whether that email arrives in their inbox. No, I am referring to whether that person fully duplicated your communication and got the exact point you were trying to make.

Have you ever written an article which, to you, makes sense, but others seem to not be able to grasp? Have you written sales copy that generated little to no sales? Have you dealt with a client which, no matter how hard you try, just doesn’t seem to “get it”? If anything like this is out, then your communication formula is out. For one reason or the other, they are not getting the same understanding you are.

How Does This Apply?

It’s far easier to observe proper communication in person than over the internet. First, when the person is right in front of you, you get immediate feedback as to whether they are understanding you. On the internet, if someone doesn’t understand your writing, they will just leave and you’ll never know. In fact, on the internet, if the communication is out in any way, you’ll probably just lose the visitor. And the nature of the medium is that you won’t know.

But, how can you do your part to enforce a proper communication formula on your website? Let’s look at that:

1. Definitions of Words. Words are part and parcel of the language. But, if someone does not understand the words you are using, the language will not communicate to them. In fact, as human nature has it, when a person is reading something they don’t understand, they will first forget they read it, second they will individuate from it. Ultimately, they will just leave and not come back. So, it is in your interest to use words that your visitors will understand. Do not use big, fancy words just for the sake of looking learned. It doesn’t work. Also, if your site discusses topics which are technical in nature, do your best to describe things in an easy-to-follow way. Lastly, it is my opinion that every site which is an instructional type of site should include a glossary. Maintain a glossary of commonly misunderstood terms and, in your content, hyperlink those words to the definition. You could even use ALT tags or DIV layers to make the definition pop up when you hover over the word. However you choose to employ it, making sure your writing communicates to your reader is in your interest. And this starts with using words they understand.

2. Acknowledge Your Visitors. As discussed above, acknowledgement is half of the communication cycle. So, when your visitors send you an email, acknowledge it. If you do not, your visitor will think you are ignoring them and they may become upset. I don’t intend to make your visitor seem like a child there, but it is true. Visitors who are in good communication with a website are more likely to remember that website. Their like for the site will increase and they will have a higher level of agreement with the people behind it. That is good for you. On the other hand, if you ignore them and do not reply to their messages, then the communication really doesn’t exist. Therefore, they will write you off. So, organize your site’s email lines so that emails are replied to. At the least, set up an auto responder to let them know their message was received. Ideally, though, you will send them an actual reply.

3. When needed, enforce acknowledgement. Sometimes, a visitor will initiate a transaction of some variety and then abandon it. For example, they may sign up for your mailing list but fail to confirm their subscription. Well, the communication formula is out. They never acknowledged the confirmation email. Maybe it never arrived. Maybe they forgot. Regardless, you need to repeat the question. Just as you would in real life if somebody does not answer your question, you repeat until you get an answer. In our example, you may send them a series of reminders (enabled via cron) until they confirm their subscription. After a few tries, you can write them off.

4. Design to Communicate. The design of your website needs to lend itself to the message you are trying to communicate. Badly designed, a site’s design can impede the message. It would be like trying to communicate to someone over the loud noise of a jet engine. In this case, you may be talking fine, but you need to handle the environment around you to make your communication arrive. Stop the jet engine or go somewhere else where you can get your message across. Online, your site is the medium. Your content can be well-written and the words defined, but if the site is a chore to use, then your site becomes the din that will keep the message from arriving in the mind of the reader. I will reserve design theories for another article, but pay attention to things like (1) cross-browser compatibility, (2) your main message being very apparent when the user arrives to your homepage, (3) functional layout. On #2, do not overcrowd the page with so much information that the user doesn’t know where to focus.

5. Allow Others to Communicate. Communication is the engine which powers life. It is what makes the world go round. This is the reason why interactive elements on a website make the site more sticky and more trafficked. People love to communicate. So, set up online forums, interactive quizzes, anything that will invite feedback and participation on the part of your visitor. Your site does not need to be a one-way flow from you to them. In fact, a successful website will actively get the return flow from them to the site.

6. Speak to Their Reality. This could take an article in and of itself, but I will give it a brief mention here. Even observing all of the above, you have the simple fact that everybody has a certain way of looking at things. And everybody thinks their way of looking at the world is right. In fact, they KNOW they are right. If you are communicating to them assuming things that are not part of their reality, then the communication will not arrive to them. A person has to be receptive to your communication. An example would be trying to explain the health benefits of meat to a member of PETA. So, in any situation, you need to find what the reality of your target audience is and then tailor your communication to THAT reality in order for your communication to really arrive. This is where inviting visitor feedback comes into play. Keep a running record of feedback to see what their reality is. Do surveys. Find out what their experience is and speak to that. By doing this and observing the proper communication formula, you WILL be the authority for them in your field. Look at Oprah. She is very wealthy, so much so that most other people cannot really identify with that kind of wealth. But, Oprah is out there, talking to everyone. And she positions herself in such a way where people identify with her. She doesn’t put up a front. She is REAL to people. She speaks to their reality. And she is very successful because of it.

Wrap It Up

I have touched on some things in this article which I can easily expand upon at a later date. And I probably will. But, this will get you started. Judge the communication to and from your website and see how it measures up. Any successful website cannot sit there on the internet as it’s own little island. It has to communicate and communicate in a big way. It has to serve as that 6 lane highway with traffic going in both directions. Make your site do this and you’ll be on your way.

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