Friday, November 22, 2013

When we are trying to understand Personal Finance, the best thing to do is to understand what Personal Finance is NOT.
Many people think that accounting and personal finance are the same, but Personal Finance is NOT Accounting.
On the surface they may seem the same; they both have something to do with money. However, the definitions will help us better understand the differences.
Merriam-Webster's definition of accounting is "the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results."
Based on this definition, we see that accounting is the process of analysing and recording what you have already done with your money.
This is why having an accountant is usually not enough when it comes to your personal finances.
Accountants generally don't concern themselves with personal finance (there are some exceptions to this rule). Unless your accountant is also a financial advisor or coach, he or she will likely just look at what you have done with your money at the end of the year and provide you with a report of their analysis.
This report is usually your tax return; what you owe the government or what the government owes you.
Very rarely does the accountant provide an individual with a Balance Sheet or Income Statement or a Net worth statement; all very helpful tools that are necessary to effectively manage your personal finances.
Personal Finance is looking at your finances from a more pro-active and goal oriented perspective. This is what provides the accountants with something to record, verify and analyze.
The Merriam-Webster's (Concise Encyclopedia) definition of "Finance" is the "process of raising funds or capital for any kind of expenditure. Consumers, business firms, and governments often do not have the funds they need to make purchases or conduct their operations, while savers and investors have funds that could earn interest or dividends if put to productive use. Finance is the process of channeling funds from savers to users in the form of credit, loans, or invested capital through agencies including COMMERCIAL BANKS, SAVINGS AND LOAN ASSOCIATIONS, and such nonbank organizations as CREDIT UNIONS and investment companies. Finance can be divided into three broad areas: BUSINESS FINANCE, PERSONAL FINANCE, and public finance. All three involve generating budgets and managing funds for the optimum results".
Personal Finance Simplified
By understanding the definition of "finance" we can break our "personal finance" down into 3 simple activities:-
1. The process of raising funds or capital for any kind of expenditure = Generating an Income.
A Business gets money through the sale of their products and services. This is labeled "revenue" or "income". Some businesses will also invest a portion of their revenue to generate more income (interest income).
A Person gets money through a job, or a small business (self employment, sole proprietorship, network marketing or other small business venture). The money coming in can be a salary, hourly wage, or commission, and is also referred to as income.
A Government gets money through taxes that we pay. This is one of the main ways that the government generates an income that is then used to build infrastructure like roads, bridges, schools, hospitals etc for our cities.
2. Using our money to make purchases = Spending Money.
How much we spend relative to how much we make is what makes the difference between having optimum results in our personal finances. Making good spending decisions is critical to achieving financial wealth - regardless of how much you make.
3. Getting optimum results = Keeping as much of our money as possible
It's not how much you MAKE that matters - its how much you KEEP that really matters when it comes to your personal finances.
This is the part of personal finance that virtually everyone finds the most challenging.
Often people who make large incomes (six figures or more) also tend to spend just as much (or more) which means they put themselves in debt and that debt starts to accrue interest. Before long that debt can start to grow exponentially and can destroy any hope they would have had to achieving wealth.
Personal Finance made simple
Personal Finance doesn't need to be complicated if you keep this simple formula in mind:
INCOME - SPENDING = WHAT YOU KEEP
For Optimal Results you simply have to make more than what you spend and spend less than what you make so you can keep more for you and your family!
If you are not actively working towards an optimal result you will by default get less than optimal results
It really is that simple!
Now that you understand personal finance and WHAT you need to do, the next step is learning HOW to do this!
The best way to start is by following these 3 simple steps:-
1. Know what you want to achieve - "if you don't know where you are going, any road will take you there" has become a very popular quote, probably because it is so true. One of the habits that Stephen Covey highlights in his book "7 Habits of Highly Successful People", is to always start with the end in mind. Knowing where you want to go will be a big help in ensuring you get there.
2. Have a plan - that you can follow that will get you to your goals. Knowing how you will achieve your goals in a step by step plan is invaluable. Sometimes this is easier with the help of an advisor or a financial coach.
3. Use tools and resources - that will help you to stick to your plan and not become distracted by the things in life that could limit our incomes and make us spend more than we should. Don't try and work it all out in your head! You will end up with a massive headache and your finances will become one gigantic dark fog!

Tuesday, November 19, 2013




20th November 2013

Capt. Janaka XXXXX
(Managing Director)
XXXX Security Services
No: 52/58
XXXX Plaza
Ja-ela

I sincerely appreciate your kind response On behalf of the XXXXX XXXX Management Corporation and would like to thank the generous sponsor of Rs. 20,000.00 (Cheque No:122532 Sampath Bank Ja-ela) for our Annual Trip on 24th November 2013.

Thank you all again for your thoughtfulness, generosity, and Continued support to the Liberty Plaza Management Corporation


Thank you

Most Sincerely




………………….
_ _ _ _ Kumara
(Accountant)
XXXXX XXXX Management Corporation


19th November 2013

Director General of Customs
Srilanka Customs
No : 40, Main Street
Colombo 01

Dear Sir

Reference Letter On The Janitorial Service Rendered By XXXX Environmental (Pvt) Ltd

I confirm that the above mentioned company provided us janitorial service for 10 years and 3 Months from 01st August 2013,(01/08/2003) and our overall satisfaction on the janitorial service provided by them is as follows


Level of Satisfaction
Tick appropriate cage please
Very good  -(Over 90% satisfaction on the janitorial service provided)
  X
Good          -(Between 75 – 89%)

Average     -(Between 50-74%)

Poor           -(Below 50%)



My contact No is 011-2576605




…………………….
Signature                                                                  K _ _ S Gurusingha
                                                                                (Accountant)
                                                                                Car Insurance Management Corporation
 For More Letters Click Here

Saturday, November 9, 2013




http://draftletters.blogspot.com/

08th November 2013

The Finance Manager
M & E XXXXX Engineering Pvt. Ltd
122, Holl Street,
Colombo 02

Dear Sir

Confirmation of advance payment as at 31.12.2013

Our Auditors, GDFP (Charted Accountants), are performing an audit of our financial statements. According to our books, we have paid a sum of Rs. 7,653,545.13 to M & E XXXXX Engineering Pvt. Ltd as advances on Fire Detection System

For audit purposes, it is necessary that you confirm the payments as correct or otherwise, for this purpose, please advise them in the space provided below whether we have paid you the above advance payments.

Your prompt response to this request will be appreciated

Very truly yours

………………………….
K K N S Kulasekara

Our records indicate that an Advance payments of LKR  …………………………………… Was received by us from Car Insurance Management Co. Ltd as of 31st March 2013

By ____________________________
     (Name)


     ____________________________
     (Title)


     ____________________________               
     (Date & Signature)

Friday, November 8, 2013

Everyone wishes to upkeep their finances. However, very few people achieve the yearning mark. All it plays of demands and desire what make you to take up the extra financial burden. Sometimes these burdens are unnecessary while sometimes indispensable. When it becomes essential then people have to take advantage of personal finance. This finance service takes care of all your personal demands and desire. You can choose for these loans to cover the charges of your debts, holiday trips, home repair, business improvements and many more.
Before all, you need to have a clear picture of you goal about the finances. You need to have a budget worksheet for personal finance. It works for you and helps you meet your goals. Though, there are many different types of worksheets, you need to find one that is easy for you to use. And then, apply for the finance you require for
Thereafter, you are offered fixed and variable rates for the use of personal finance. A fixed interest rate means that for the particular amount you borrowed, you are required to pay a specific amount of interest throughout the loan term. Also, you will be going to pay a fixed monthly fee. If your creditor uses variable rate then the rates differ every month. It almost depends upon the market's fluctuation.
Quarter of lenders is out there in the money market for personal finance. You can access to them even online. Today, online tool of loan obtaining is gaining precedence. It saves a good amount of your time and energy, and makes the loan processing fast. Furthermore, lacking in collateral valuation for the loan helps you escape from unnecessary paper work too.
So, you do not have to waste your precious time in waiting for personal finance on the money market. Finance options are readily made available for you in the loan market to dissolve the problem of your dwindling finances.

Wednesday, November 6, 2013



http://draftletters.blogspot.com/

 

01st November 2013


MR.S. Samarawickrama
ACCOUNTANT,
Car insurance co. PLC

 

Dear Sir,
Internet Banking System

This is to inform you that we have introduced the Internet Banking System to settle payments.


Therefore we hereby request you to complete the below format in block capitals and forward same to Finance Manager, MR.XXXXXXXX Suraweera Accounts Dept., XXXXXX Limited, 3rdFloor, No. 498, Bale Road, Kadawatha 03. 



We appreciate your immediate forwarding same through Fax number 011 – 29999X9 – (Finance Department) in order to avoid delay in settlement of payments to you.



Your early response will contribute to fast and prompt settlement process and please note that we are unable to process your payment until receipt of below mentioned schedule duly filled in.


Thanking you



Yours faithfully
XXXXX Limited


Chandima herath
Financial Manager

Schedule of information – Please fill this in BLOCK CAPITALS

Name of the Payee      …………………………………………………………………………
Address                       …………………………………………………………………………
Telephone Numbers    …………………………………………………………………………
NIC/PP/BR No.          ………………………………………
E-mail Address            ..……………………………………..
Title of Account          ………………………………………
Account Number        ………………………………………
Bank                            …………………………………………………………………………
Bank Branch               …………………………………………………………………………




Signature/s                                                            Rubber / Embossed seal                                                     Date
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