Category Archives: Finance

Fundraising or Fund Raising for Genuine Reason

Fundraising or Fund Raising for Genuine Reason

Fundraising or Fund Raising for Genuine Reason

Earth is a beautiful place to live. The beauty of earth is described by poets and writers through different stories and poems. It is believed that human life on earth is precious one in comparison to animals or other living things. But it is may not be the true circumstances in every context. When there are people who are fortunate enough to have all the luxuries and other comforts in life, a major sector or less fortunate group of people thrive hard to find a livelihood for survival. In all most every part of the world there are people who suffer from poverty, financial crisis and from grave diseases. Even today there is large sector of people who don’t have any means to fulfill their basic needs of food, clothing and water. Even in these dark grave situations there is always a ray of hope to help or enlighten the conditions of the deprived.

Several people and organizations that have genuine concern for the unfortunate section in the society extend help to them in many ways. Fund raising or contribution is one such way that is most accepted way of aid extended to the poor and needy. Fund raising is mainly done for gathering money from people for fulfilling many necessities of the downtrodden sections. Normally funds are raised for providing healthy food and for the expenses for the patients who do not get any aid from any source including their family members. The very essential form of fund raising practiced in different parts of the world is to ask aid from individuals going to their houses or offices. This form of fund raising is practiced by individuals who are concerned about their fellow beings and do not get any other source of help from others. Gradually several philanthropic organizations and charitable trusts took the responsibility of fund raising for the betterment of the society.

Fund raising is done for several purposes including disaster relief, social issues where and when the human rights are violated, other humanitarian concerns, academic achievement and for research process and methods. The fund raising process is often done by non profit organizations. Religious and philanthropic groups and organizations play a major role in the fund raising. Research organizations, public broad casters and political campaigns also conduct several fund raising programs for several social issues. Today environmental preservation is another major concern for the future generations and many programs are being conducted for raising fund for environment protection.

Another sector of fund raisers includes professional fund raisers. They are different from non profit organizations as they take a percentage of fund raised as their professional charge. There are entertainment groups who raise fund through conducting entertainment programs. Some entertainment groups charge like the professional fund raisers and some do programs only for raising money for the needy at their expenses. Genuine non profit organizations never engage professional fund raisers or groups who charge commission of raised fund. Professional fund raisers are not categorized as non- profit organizations and they are considered as third party who are paid for their activity. Fund raising professionals or development officers are the staff or non profit organizations who do the fundraising for free and do not expect any return for their act.

Fund raiser events are organized by nonprofit organizations. Many political, religious, charitable, non government institutions and individuals who are wealthy and have the mindset to provide for charity organize fund raising events and programs. The foundation stone of any charitable or fund raising programs is the building up of relationships. The maintenance of donor relationship is another important factor in fund raising. Many organizations formally thank the donors who provide contribution to higher level and always extend their willingness to help the poor.

The old concept of “an aid given to a needy one is the aid provided to God” is worth in fundraising projects by organizations and individuals who do not expect anything in return.

Forex is the Biggest Liquid Financial Market

Forex is the Biggest Liquid Financial Market

Forex is the Biggest Liquid Financial Market

The wealth made by man had different forms from ancient period onwards. The very first form of wealth was money. Metals in different size and shape were the first form of money. Later round metal coins with values inscribed on it became the integral part of business and other transactions. Soon metals coins were replaced by more precious metals like gold and silver. During the reign of kings the gold and silver coins were the main source of money. With the advent of modern period paper money or currency was invented by middle of 19th century after the period of renaissance. After industrial revolution currency became popular as the main source of money. Currencies with specific values inscribed on it became the main money transaction source everywhere replacing gold and silver coins.

As a result of globalization foreign currency exchange made the transaction between the countries convenient. The foreign exchange markets became the trading centres if international currencies. The foreign exchange currency is termed as Forex or FX. Forex is not absolutely the invention of modern period in currency exchange. There are biblical references of foreign exchange as money changing people who gave aid to other people with regard to change of money for a specific charge or commission paid to them. Their references are given in Talmudic writings during the biblical time. Another reference relating to money changing is traced back to the 4th century where the Byzantium government had a monopoly over the foreign or money exchange. During the medieval period in 17th and 18th century Forex markets were established and maintained in London, Holland and Amsterdam. In the year 1880 the modern foreign exchange began. In 1920’s the Kleinwort family was known as the leaders of Forex market. In 1945 the government of Ethiopia had the greatest foreign exchange surplus.

Remarkable changes occurred after the year 1973 in the Forex market. In 1973 the controlled foreign exchange trading of Forex had an end and much more flexible or complete floating conditions in Forex began that is continued even today. In the year 1985 the European banks began its intervention and supremacy in the Forex market. Bundesbank had all control over the Forex in the year 1985. By the year 1987 majority of the Forex was in the United Kingdom. It had a slight weight age of one quarter over the US and made the US having the Second place in the Forex. In the year 1991 Iran changed international agreements for foreign exchange in exchange of oil barter.

The Forex is the biggest liquid financial market. The growth of the Forex market is day by day indicating steady graph in the global arena. The Forex trade comprises of traders form different sectors. It includes retailers, institutional investors, currency speculators, corporations, central banks and large banks. All the developed countries have fully convertible capital accounts. Due to the capital controls several governments restrict foreign exchange derivative products. Despite several capital controls several countries like South Africa, Korea and India have established currency future exchanges.

The Forex has divided level of access with regard to the members or participants in the foreign exchange. In order to satisfy the economic needs the top level of access consists of inter bank market that include largest commercial bank and securities and currency dealers.

Even though foreign exchange has great control over global economy the risk factor in Forex is unpredictable. Even a potential or initial adverse event adversely affects the market conditions at any time that at times make the Forex unstable. The financial crisis in 2008 had a bad effect in Forex that still affects the market.

Despite all the adversities Forex transactions can be defined as future trading of all sectors irrespective of banks and other currency securities.

General Explanation About Finance

About Finance

About Finance

Man from time immemorial knew the value and importance of wealth in life. He began to accumulate wealth in various forms. Form metal to the currency notes he accumulated wealth and found many methods to asses the value of his assets. The assessment of assets between regular intervals gave a new way of wealth allocation that is termed as finance. Finance is defined as “allocation of assets over time under conditions of certainty and uncertainty”. Today financial assessment is aimed at the value of currency to price the assets on their risk factor. Financial assessment is highly necessary due to the fluctuating nature of currency value. Finance is a very important factor in every aspect in a person’s life. A true evaluation in the financial condition helps a person to overcome the financial crisis during the period of uncertainty. Through financial assessment economic stability can be achieved to a great extent. Having a good financial assessment makes a person to have a sound knowledge about the financial position in the unstable economic environment. It helps a person to have accurate financial position at the time of unseen happenings in future and enable him to take exact financial decision at the time of economic uncertainty.

According to several researches of the economists the finance has three broad classifications. They are personal finance, public finance and corporate finance.

As far as an individual is concerned personal finance is the most important factor. It enables him to take personal decisions on finance after proper analysis of various factors. The debt management or paying off loans and liabilities are the major factors taken into consideration in personal finance. Knowing about the financial resources, risk management in liability, property, disability and health care need be given more attention in personal finance management. Investment planning including investment in shares and real estates, tax planning, retirement planning are the other important factors in personal finance.

Corporate finance deals with the financial assessment of management in business or commercial activities. The two major factors in corporate finance is the balancing of unseen risk and profitability. The method of capital budgeting is done mainly in corporate finance. The business valuation and risk management are the techniques widely used in capital or investment budgeting. The fund management is an essential factor in corporate finance in assessing financial assets and there by evaluating objectives and constraints in utilizing the corporate fund. Financial risk management is the inevitable factor for analyzing and controlling the credit risk and market risk. Risk management is done through financial instruments to manage various corporate risk factors for creating and preserving economic values of the corporate finance. Risk management is basically done on identifying the sources of risk that is mostly the instability in the currency value and liabilities. Risk measures are taken based on the quantitative and qualitative value of the assets of the corporate. Banking sectors in risk and finance management the Basel accords are used for tracking and reporting credit and market risks.

Public finance normally relate to sovereign states and public entities. Sovereign states include provinces, countries, states, corporations, municipalities etc. public entities include schools, colleges and government managed organizations and institutions. The public finance includes the public entity’s source of revenue, identifying the expenditure of public sector, the budgeting process and the debt issuance public projects. Banking sector plays an important role in private, public, personal and in corporate finance. The central bank provides monetary and credit options in these financial sectors.

There are various branches in the study of finance today including financial economics, financial mathematics, experimental finance and behavioral finance. The main aim of finance with lot of study sectors or branches is to manage the unseen risk factors in the financial arena in relation to individuals and corporate.

Prepare Family Budget to Control Expense

Prepare Family Budget

Prepare Family Budget

A budget is an estimated financial plan. A financial plan is statement that gives accurate information about the income and expenses. Financial institutions and organizations from the beginning of the financial year make budget plans for estimating the debits and credits for the entire year. Companies and larger organizations make budget plans in order to asses the income and expenditure of the organizations. A budget for family or personal assessment is also a mandatory requirement in many modern families. If the family members having an earning capacity make a family budget in almost every family to know the exact amount of money spent and incurred. Usually monthly budget is prepared in the beginning of every month in many families. Through the preparation of family budget the estimate in the past and future income and expenditure can be ascertained and planning for future income can be made from the past budget. The main factor in ascertaining budget is to get a clear vision about debts and liabilities and the amount spent in the past. From the past spending savings for future can be estimated. A budget is basically estimated from the income incurred by the person who wanted to prepare a budget.

There are several methods or tools to ascertain a family budget. The calculation from the income of the person who has the higher income in the family is to be ascertained before the preparation of a family budget. For ascertaining a budget in a family the most common and simple method used is to write down the plan in a paper or book with pencil or pen. For the preparation of a current budget the verification of the past budget is an important factor. An old budget that does not contain accurate information about the income and expenditure does not give any accuracy in the current budget. Another option to calculate the figures instead of using pen and paper is to use a calculator for easy and more accurate calculations. The use of calculator helps in easy book keeping format in the budget plan. File cabinets or three ring binders are normally used for book keeping format of budget. The family is always done in the book keeping format in households.

Another method of budget preparation is based on computer programs. There are several pre formatted computer programs designed for budgeting along with general formats. Today the book format is replaced by computer based programs for easy calculations and corrections. Corrections in the figures or plans are easily done in computer programs than in the written format. There are several types of computer software available for budgeting. Most commonly used software is the spread sheet software. The spread sheet software include Microsoft excel, i work numbers or open etc. Spread sheets are often used for complex budget planning. The information relating to income and expense can be more accurately done in spread sheets. The only drawback in the spread sheet is that the date cannot be shifted or reentered at the end of the month.

There are money management software designed for checking the saving status, balance statement, individual account information and money market expenses. One of main characteristic of money management software is the categorization of past expenses that will in turn help the maintenance of future accounts. Spending management software gives the information regarding the balance amount in the account and gives exact statement on the spending of balance in an individuals account. Most of the spending management software is connected to online bank account for producing an exact current account status report.

In written or in a computerized form a family budget is an important and determining factor in assessing a families total income and expenditure that enable the family members to have a more accurate family budget in the future.

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