Financial Planning

Financial planning is the process of estimating the amount of financing required to continue a company's operations and of deciding when and how the needed funds should be financed.

The following are some methods for estimating the financial needs of a firm:

CASH BUDGET METHOD

Compares future cash receipts with future cash payments and determines the financing surplus or defecit for each term. This method ensures that a company will never run out of cash.

CASH TURNOVER METHOD

The minimum amount of cash needed by a company to run its operation.

Min Cash required = Annual operating expenditures / Cash turnover

Cash turnover = 360 days / cash cycle

Cash cycle refers to the number of days that pass between the purchase of raw materials and collection of sales proceeds.

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Personal Financial Tips:

* Get Paid What You're Worth and Spend Less Than You Earn

* Stick to a Budget

* Wisely Pay Off Credit Card Debt

* Have a Savings Plan

* Invest

* Maximize Your Employment Benefits

* Update Your Will

* Keep Good Records

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Retirement plans:

Social Security: www.ssa.gov

401k: www.401k.org

ZETLOCK'S FINANCIAL KEY TRAITS 
John Zarzar 
Friday, February 8, 2008

A) Patience

B) Discipline / Work

C) Goals

D) Creativity

E) Calculated Risks