Jan 29

Financial Planning

I will start by defining the term finance to understand where should go towards this planning about this there are many definitions, but which in my opinion makes it clear this is the following: is a branch of economics that studies the acquisition and effective use of money over time by an individual, company, organization or Stateso that financial planning should be aimed at maintaining a balance at all times. If the previous concepts carry them to a personal level and assuming that we have detected the need of acquiring a car, as do our analysis we note that we invest an important part of our revenues to the payment of transportation, we have some options to meet this need: invest our money (capital with which we currently) in purchasing this well, but this is necessary to verify that in doing so we will have the necessary liquidity to meet our commitments everyday (food, clothing, health, etc.), another option could be to acquire funding (there is that) search for a reasonable interest rate within the current market), but for this we must analyze the time it will take to meet this commitment and the monthly amount that this shall bring about, input can be considered to cover this amount corresponds to the transportation we used regularly and this could be sufficient. Shall bring in addition and irrespective of the way in which we will take on our good this about other new commitments or costs, such as fuel, maintenance, taxes, etc., which should also be considered within our planning. As the decision looks of it isn’t easy to take since there are many factors that we must consider, now if this moved it to the plane of a micro-business or to one of the leading companies in our country, all of this is complicated even more. Is why the importance that has the financial planning within companies, a decision can lead this company to position itself within the best at national or international level or take them to bankruptcy, decisions that should be taken considering all factors that may affect our Organization such as: the economic stability of the country, possible changes in the national or international regulations changes in the technology of our branch, etc. Moreover within the finances we must consider all the assets that make up the Organization, and how he has handled at present one of the most important assets within enterprises is staff, also is very important to do a planning adequate in this area, from the selection of the people who will shape our Organizationto establish strategies that make that staff put the company t-shirt and foster their creativity, leading to the company’s productivity. This article aims to give a simple explanation of the financial planning and its importance and exemplify the financial planning daily we at different levels, from personal to the enterprise.