Skip to main content

COMMON PERSONAL FINANCE MISTAKES TO AVOID:

Financial Mistakes Defence Personnel Must Avoid


COMMON PERSONAL FINANCE MISTAKES TO AVOID:

                Every Entrepreneurs trying to get a successful idea and make the investment over his idea. But the investment they has are very limited or not too much for them to manage their all expenses and costs of their running projects. They make many mistakes during their decision making process. That mistakes are the main cause of their failures in the markets.

Here are some common mistakes that are the main factors which fails an entrepreneur idea and through these mistakes they loss their all investment which they invest through their personal finance funds. The list of the common personal finance mistakes are as follows.

Confusion in decision making:

                Everyone cannot take risk. Risk management is an ability and skill which make a person perfect. Before making an investment we have many questions in our mind and we need the satisfactory answers about them. As we get the answers about these questions that helps us to achieve the level which is the main motive for us to make investment  in any sectors of the business.

Investment Time:

                Time is an asset. Every investor very keen about his investment  but the right time for investment is very necessary to know. Some people investment their capital early in the market, due to wrong time selection they loss their idea, will and capital.

Financing for Business:

                The Financial Institutions are trying to catch the investor and offer them loan for their businesses. The Financing is very important for a business but the that need a rational approach. If a person choose a wrong institution or amount of capital with the high margin interest rate. That wrong selection make problem for him and that mistake create many other small mistake for his business and in response he is not able to achieve his desire net revenue from his efforts and investments.

Investing over huge debts:

                Many investorswho has a big amount of debt over them but they make an investment and trying to achieve somethings as quick as possible form their new investment. But their old debts not allowing them to work independently. That mistake lead them towards failure and finally they lost their investment.

Ambiguity about Investment Idea:

                Most of the people are not clear about their investment plan and that ambiguity in their planning leads them towards losses. In that case they loss their investment, and business.

Miss- Management in Financial Records:
                If a business not maintain its financial transactions records on daily basis and not preparing its financial reports properly and there are many miss-management or did many unnecessary transactions. That all become a burden over their business and capital investment. That is a mistake and they need to records and report their financial transactions as they occur at right time basis.

Deductions form Budget:

                Entrepreneurs are well aware about their total investment. Which is the sum of their personal investment and their finances from other business supporting  financial institutions. If we make a budget for a period of our business and later on we stretching it for our personal drawings. That is not good for our business and deduction from business budgets destroy the business projects.

These are the common mistakes and everyone must need to avoid form them to make his business investment more profitable.


Labels:

Comments

  1. VinuOctober 8, 2017 at 2:33 AM

    Before making an investment we need a will power to start it an to achieve the benefits of our investment

    ReplyDelete

Post a Comment

Popular posts from this blog

Financial & Non -Financial Benefits from the Membership of Chamber of Commerce & Industry.

We know every business firm , commerce department, trading venture, and industrial unit always needs, Visibility to stand out and get noticed as an active participant in the society. The eventually prefer to avail growth opportunities through the provision of quality training and educational activities and through different events. They require Credibility through their production activities and services provision, which helps them in building a reputation. The holder of this membership can enjoy and avail members of member discounts to improve their purchasing power and all other offers and benefits as offered from time to time. That also helps them to build their communityNetwork and to make them socially powerful and these professional relationship helping them to get a plate forum that advocates on their behalf. This all means all industrialist, businessmen, and corporate identity holder (Only Owners of the Corporates or in some cases their partners and directors)   must ...
3 comments
Read more

ELEMENTS OF ACCOUNTS:

ELEMENTS OF ACCOUNTS:                 Accounting is the art of collecting, separating, analyzing and recording the financial transactions of the business in a certain economic period. There are two different methods or system to record the accounting transactions, one is Double Entry system and the other one is single entry system. Double Entry System is used by corporate accounting business and MNCs . Single Entry System is use by Nonprofit or Charitable Organizations.                 There are three elements of the accounting transactions and every business financial transaction must be fall in one of them. These Elements are Personal Accounts,  Real Accounts and Nominal Accounts. The Further explanation regarding these accounts are as follows: Personal Accounts:        ...
7 comments
Read more

ACCOUNTING CYCLE

Accounting Cycle:                 Accounting is the field of study which tells us about how to collect the economic figures, evaluate and analyze them and  record them  in a very respectable and professional way to present to the business stakeholders and helps them to collect the required information from the pool of business transactions. That is an art and we also knows it with the name of book keeping. As I write in the above paragraph accounting of business financial transactions is an art of collection, evaluation, analyzing, recording and presenting to the business management and stakeholders. That complete process is based on some steps of activates which are commonly known as accounting cycle. That Accounting Cycle is consist of 7 different steps  which are Source Data, Journal, Ledger, Trial Balance, Adjustment, Closing Accountings and Stock Valuation and Preparation of Fina...
4 comments
Read more