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Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> On Christine O'Donnell - Mediate.com
The midterms are over, and while the GOP regained control of the House, the coronation of the Tea Party movement is still up for debate. Sure, a number of Tea Party candidates won their races, but perhaps the most visible -- Delaware ...
Facebook "Unlike" Button Comes to the <b>News</b> Feed
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Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> On Christine O'Donnell - Mediate.com
The midterms are over, and while the GOP regained control of the House, the coronation of the Tea Party movement is still up for debate. Sure, a number of Tea Party candidates won their races, but perhaps the most visible -- Delaware ...
Facebook "Unlike" Button Comes to the <b>News</b> Feed
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Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> On Christine O'Donnell - Mediate.com
The midterms are over, and while the GOP regained control of the House, the coronation of the Tea Party movement is still up for debate. Sure, a number of Tea Party candidates won their races, but perhaps the most visible -- Delaware ...
Facebook "Unlike" Button Comes to the <b>News</b> Feed
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Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> On Christine O'Donnell - Mediate.com
The midterms are over, and while the GOP regained control of the House, the coronation of the Tea Party movement is still up for debate. Sure, a number of Tea Party candidates won their races, but perhaps the most visible -- Delaware ...
Facebook "Unlike" Button Comes to the <b>News</b> Feed
Facebook quietly introduced an "Unlike Page" button into its News Feed recently, which allows users to opt-out of receiving unwanted messages from pages they had previously said they ...
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Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> On Christine O'Donnell - Mediate.com
The midterms are over, and while the GOP regained control of the House, the coronation of the Tea Party movement is still up for debate. Sure, a number of Tea Party candidates won their races, but perhaps the most visible -- Delaware ...
Facebook "Unlike" Button Comes to the <b>News</b> Feed
Facebook quietly introduced an "Unlike Page" button into its News Feed recently, which allows users to opt-out of receiving unwanted messages from pages they had previously said they ...
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Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> On Christine O'Donnell - Mediate.com
The midterms are over, and while the GOP regained control of the House, the coronation of the Tea Party movement is still up for debate. Sure, a number of Tea Party candidates won their races, but perhaps the most visible -- Delaware ...
Facebook "Unlike" Button Comes to the <b>News</b> Feed
Facebook quietly introduced an "Unlike Page" button into its News Feed recently, which allows users to opt-out of receiving unwanted messages from pages they had previously said they ...
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Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> On Christine O'Donnell - Mediate.com
The midterms are over, and while the GOP regained control of the House, the coronation of the Tea Party movement is still up for debate. Sure, a number of Tea Party candidates won their races, but perhaps the most visible -- Delaware ...
Facebook "Unlike" Button Comes to the <b>News</b> Feed
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In India we have an old saying which means something like this - "you can emulate everything else but not money." When it comes to cash, you really require cash only, nothing else can replace cash. In these days of easy credit certainly you can use credit cards, borrow some loans on EMI (Equated Monthly Installments), create mortgage, etc. But finally to service all these loans you need cash, rather extra cash because money has cost to it called interest. In fact when you borrow to meet your cash requirements what you do is postpone the cash requirement. At the end of the day what you need will be cash only.
What is Cash Flow?
Here comes the management of cash flows. It is a simple statement of receipt of cash and payment commitments in cash. In financial jargon it is called statement of inflow of short term sources and out-go there of. It can also be called Funds Flow statement.
In personal finance we are more concerned about cash flow rather than funds flow. Our incomes are of short term nature, recurring by way of salary, dividends, interest on savings, rents, annuities, bonuses, insurance/mutual fund maturities, etc. All these are of the nature of once at a time. We do not normally have permanent investments like equity or bonds in the business. To that extent our cash flow statement is simple.
However, it should be remembered that it is not a mere account of your earnings and expenses for a particular period. It is a projected account of income and expenditure.
How to prepare a Cash Flow Statement?
You can use a simple note book in which you can prepare columns like the ones done for traditional balance sheet; two way accounting, left side for in- flow and right for out-go. The excel sheet on computers would be still better. The following format shall be good enough in either case.
In-Flow
Sources/ Months
(Columns)(Rows)
Out-go
Uses/Months
(Columns) (Rows)
The sources column will have all the heads of income from various sources which shall carry amounts to be received during the respective months of the year.
The row will carry names of twelve months for each year.
Similarly, the Uses column on Out-go side will have particulars of each payment commitments or expenses falling due in various months. While planning for expenses you will have to take into account family and social commitments, children's education, medical contingencies, ceremonies, festivals and so many other things that might need cash during a particular month.
It will include outings with friends and a gift to a girlfriend! Better still, gifts to many girlfriends.
Cash Flow Mismatch
The total of In-flow and Out-go for a particular month of the year will show excess or shortfall of income over expenditure during a particular month.
This is called positive or negative mismatch. The positive mismatch leaves scope for savings whereas negative mismatch will require borrowings. The sustained positive mismatch can leave a scope for some long term investments to meet future expenses like child's education, travel or medication. But recurring negative mismatch will lead to long term borrowings. It will also trigger a warning for curtailing avoidable expenses to reduce the mismatch.
Living within Means
Best thing to manage cash flows is to restrict your expenses to maximum 90 % of your income. The 10% cushion is must for savings or short term exigencies. The golden rule is "live within your means and work hard & smart to earn more to live lavishly." Never ever borrow for routine expenses.
It doesn't mean that we should not borrow. Living in a modern world would be impossible without borrowings. If you need to buy a house, probably you would never be able to buy one out of your savings. Your savings won't appreciate as faster as the prices of properties in your neighborhood.
So your projected cash flow should take into account such necessary borrowings (which in fact are investments in wealth) and provide for out-go by way of EMIs of such loans. Borrowing for a house may in fact lead to certain savings like income tax on repayments/ interest or house rent allowance, increased own house allowance or income from rent, etc.
While managing personal finance you should educate your self about various products of house loans/ mortgage loans and tax benefits in your country.
Financial Self Discipline
Your Cash Flow statement should take into account all such savings and expenses. You can prepare it for reasonably longer period and project your savings and expenses for better planning of your personal finances. Preparation of your cash flow statement is a first step towards financial self discipline and a sure way to avoid disgraceful bankruptcy.
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