Financial planning is the process
of estimating the amount of financing required to continue a company's
operations and of deciding when and how the needed funds should
be financed.
The following are some methods for estimating the financial needs
of a firm:
CASH BUDGET METHOD
Compares future cash receipts with future cash payments and determines
the financing surplus or defecit for each term. This method ensures
that a company will never run out of cash.
CASH TURNOVER METHOD
The minimum amount of cash needed by a company to run its operation.
Min Cash required = Annual operating expenditures / Cash turnover
Cash turnover = 360 days / cash cycle
Cash cycle refers to the number of days that pass between the purchase
of raw materials and collection of sales proceeds.
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Personal Financial Tips:
* Get Paid What You're Worth and Spend Less Than You Earn
* Stick to a Budget
* Wisely Pay Off Credit Card Debt
* Have a Savings Plan
* Invest
* Maximize Your Employment Benefits
* Update Your Will
* Keep Good Records
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Retirement plans:
Social Security: www.ssa.gov
401k: www.401k.org
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