Necessary finance tips for young adults

1. Understand the basics

Financial services often seem really complicated, but it’s not hard for you to understand the basics for all financial services that you buy. Otherwise, you could get a nasty surprise if something goes wrong.

Before you sign on the dotted line, make sure you understand the basics of:

* What you have promised to do (eg make regular payments).
* What the company has promised to do (eg provide a loan, or cover a loss).
* Whether there are any exceptions or qualifications to these promises (eg an insurer may not have to pay your car insurance claim if you had been drinking when the accident occurred).
* What you should do if something goes wrong.

Don’t be afraid or embarrassed to ask questions. Sometimes it can be awkward, but a good salesperson should give you enough time and information so that you can understand the product. You can also ask to take the documents away, so that you have time to read them and get advice.

Don’t be pressured into signing something that you don’t understand. You could regret it later.

2. Hold onto your paperwork

Anything to do with money often involves lots of paperwork – account statements, contracts, policy documents, terms and conditions and more.

If you’re tempted to throw all this paperwork in the bin – stop! Even if you don’t read it all straight away, get into the habit of keeping the important paperwork in a special file that’s easily accessible. It will come in handy if you have a question or problem about your financial affairs.

You should also get into the habit of keeping notes from any important telephone calls you have with your finance institution. Again, they might help if you have a complaint.

Your notes don’t need to be fancy, but it’s important to record basic information such as the name of the person you spoke to, the date and time, and an outline of what was said. Keep this with all your other paperwork.

3. Reduce your costs

Some form of savings or transaction account is almost a necessity these days. But don’t be complacent about your account – there are ways that you can reduce the costs.

For example, if you are a student or a recent graduate, you may be able to get a fee-free account. Ask your institution if they have one.

But what if you are not eligible for a fee-free account? You can still reduce your costs by changing how you bank. For example, it’s often cheaper to use Internet banking than to visit a branch. But first, you’ll need to understand how and when fees are charged on your account. Ask your institution to tell you about the main fees and charges, and whether you are entitled to a certain number of free transactions. You can use this information to help you develop cheaper banking habits.

4. Minimise the risk of unauthorised transactions – keep your PIN secret

Many complaints about unauthorised transactions are made each year. The best way to protect yourself from someone accessing the money in your account is to keep your PIN and/or password secret! Don’t tell anyone your PIN or password – this includes your friends and family. Also, don’t keep a copy of your PIN or password near your card, or on your computer (unless it’s password protected).

Many institutions will let you choose your own PIN or password, and this can help you remember it. But, be careful with what you choose – don’t make it so easy to remember that it will also be easy for a thief to guess.

5. Be very careful with direct debits

Direct debits can be a great way of making sure that the necessities of life – like your bills and rent – are paid on time. But make sure you know how to cancel a direct debit if you need to. For example, if you change your phone company.

To cancel a direct debit, you should tell both your institution and the company making the direct debit (eg the phone or electricity company). Writing a short letter is often best. Keep a copy of the letter, and if problems arise, contact your institution straight away.

Also, make sure you have enough money in your account to cover a direct debit. If there is not enough, you might have to pay an expensive overdraw fee.

How to Start Internet Marketing

Assuming you already have a website, the first step to effectively begin exploiting Internet marketing options through your website is to research two key things:

* Who and how are consumers already using the Internet to find and patronize similar businesses; and

* What type of online marketing tools and Internet services are available and which one(s) will work best for your type of business.

Financial Analysis

The `bottom line’ of marketing activities should at least in theory, be the net profit (for all except non-profit organizations, where the comparable emphasis may be on remaining within budgeted costs). There are a number of separate performance figures and key ratios which need to be tracked:

* gross contribution<>net profit
* gross profit<>return on investment
* net contribution<>profit on sales

There can be considerable benefit in comparing these figures with those achieved by other organizations (especially those in the same industry); using, for instance, the figures which can be obtained (in the UK) from `The Centre for Interfirm Comparison’. The most sophisticated use of this approach, however, is typically by those making use of PIMS (Profit Impact of Management Strategies), initiated by the General Electric Company and then developed by Harvard Business School, but now run by the Strategic Planning Institute.

The above performance analyses concentrate on the quantitative measures which are directly related to short-term performance. But there are a number of indirect measures, essentially tracking customer attitudes, which can also indicate the organization’s performance in terms of its longer-term marketing strengths and may accordingly be even more important indicators. Some useful measures are:

* market research – including customer panels (which are used to track changes over time)
* lost business – the orders which were lost because, for example, the stock was not available or the product did not meet the customer’s exact requirements
* customer complaints – how many customers complain about the products or services, or the organization itself, and about what

Small Business Marketing Tips

1. Don’t Advertise Like a Big Business
Big businesses advertise to create name recognition and future sales. A small business can’t afford to do that. Instead, design your advertising to produce sales …now. One way to accomplish this is to always include an offer in your advertising – and an easy way for prospective customers to respond to it.

2. Offer a Cheaper Version
Some prospective customers are not willing to pay the asking price for your product or service. Others are more interested in paying a low price than in getting the best quality. You can avoid losing sales to many of these customers by offering a smaller or stripped down version of your product or service at a lower price.

3. Offer a Premium Version
Not all customers are looking for a cheap price. Many are willing to pay a higher price to get a premium product or service. You can boost your average size sale and your total revenue by offering a more comprehensive product or service …or by combining several products or services in a special premium package offer for a higher price.