Managing personal finance is an utmost necessity in the present times. You may unknowingly fall into severe financial problems if you do not budget your expenses. No matter how much you earn, you should always save a certain portion of your earning for future requirements.

How to manage personal finance all by yourself

You can manage your personal finance by following 5 simple steps, which are given below.

1. Plan a budget and follow it – Preparing a budget is the first step of your financial planning. You need to make several financial decisions; therefore, it is quite impossible to remember everything. This lack of understanding can be the root cause of your debt problems. However, if you plan a budget, then you’ll be able to keep a track of your expenses.

2. Cut down expenses – You should learn how to cut down your expenses in order to meet your financial goals. Therefore, it is advisable that you prepare a priority list so that you’re able to cut down unnecessary expenses.

3. Save for retirement – Retirement savings should be one of the most important financial goals. Tax-advantaged accounts, such as, employer 401(k) plans along with certain other retirement accounts allow credits, tax deductions and free earnings on retirement savings. Therefore, you should start planning your retirement savings even if you have just started your career.

4. Try to get rid of debt – It is quite important to distinguish between good debt and bad debt. If you go on using your high interest credit card for shopping, then it is considered as bad debt. On the other hand, if you take out a home loan, then it is considered as an acceptable form of debt. It is advisable that you prevent yourself from accumulating bad debt; if you have any, try to repay it as soon as possible.

5. Purchase insurance policies – You cannot predict what will happen in future; however, you can purchase adequate insurance policies to protect you and your family from any unforeseen circumstances. Unfortunate incidents can ruin your financial condition if you do not have adequate insurance.

These steps can help you to manage your personal finance. However, you can opt for professional help if you need guidance in managing your finance.

The investigators of fraud plundered the head offices of the Irish bank anglo in Dublin yesterday morning, composing the economic troubles of the Republic d’ Ireland and helping to send its stockmarket to 14 low years. The worried bank was plundered by the office of the director of l’ application of corporation (ODCE), supported by approximately 25 police officers. The bank has a significant exposure to the market d’ British real estate in fall. The regulator indicated that, between d’ other suspectées irregularities, he studied the course of the significant contracts for the difference. The Irish bank anglo, which was nationalized last month, is in the center d’ a series of scandals of corporation. Sean FitzPatrick, his ex President and senior officer, resigned in December after l’ admission qu’ it n’ (£77 million) a loan €87 qu’ million had not revealed; it had on several occasions moved in and out of the bank over eight years.

IBM, the giant US computer company unveiled its quarterly figures yesterday which showed raise in its earnings this year. The shares of IBM rose to a six year high $124 which was at $120.47 before the release of the earnings report. IBM’s increased earnings allayed fears of job cuts and brought much relief to the difficult market conditions. It was earlier predicted that corporate world of America is tightening their budgets due to the economic downturn and want to curtail expenditure by reducing the spending on new technology. But, now the results of the earning report discourage such forecasts.

On the other hand, IBM has been battered by financial crisis last year and also suffered major job cuts. Now, IBM on its first three months report stated that its profits had surged 26 percent which is about 1.18 billion pounds in contrast with the corresponding period last year. The revenue of IBM had risen 11 percent to 24.5 billion dollars which has beaten the expectations of Wall Street. IBM confirmed that its sales in US had risen above 6 percent over the period. Mark Loughridge, the finance officer of the company said that this has echoed the company’s balance between US and international revenue flows. He added that the powerful first quarter had shown some optimistic signs.

Merck, the leading drug company has been accused of providing false information on the safety of its popular arthritis drug “Vioxx”. It is also alleged of publishing ghostwritten studies under name of renowned academicians after taking their consent. Journal of American Medical Association (JAMA) blamed Merck for the dubious practices over its best selling drug Vioxx. Merck withdrew Vioxx from the market after it was associated to a high rate of heart attacks.

Research conducted by two authors of University of Washington reported that the company had not disclosed the exact mortality rates in their trials which were conducted on Alzheimer’s patients. Also, in the published papers, it was reported that Vioxx was well accepted by the patients. But, some internal company reports showed that the patients who were administered Vioxx had increased chances of death which is four times more than the risk involved in other arthritis drugs. It is also stated in the report that the two trials conducted on the patients showed 34 deaths amid 1000 patients that were administered Vioxx and only 12 deaths were reported when given a placebo. The two authors alleged that these mortality analyses report was not provided to the FDA and also it was not made public in an appropriate time.

Council of Mortgage Lenders warned that the mortgage lending would decrease further if Bank of England does not provide more financial help to the building societies and banks. Steven Crawshaw, chief executive of Bradford & Bingley and the chairman of CML stated that the banks and other societies may have to halve their mortgage lending this year if the credit crisis continues. Banks have become cautious of loaning to each other due to the sub-prime crisis and now they provide loans only at higher costs to other banks.

As a result, the smaller banks are passing this cost to their clients by indirectly raising interest rates. Also, they are not keen to lend to those who don’t have huge deposits. So, the CML predicts that if this situation continues, then the mortgage lending may worsen further. Bank of England provides billions of pounds of loan each month to banks and building societies. Now, the lenders are requesting the bank to provide more long-term loans at least for a period of two years. The CML said that if BoE does not provide the required loans, then the 108 billion pound mortgage market may shrink to almost 60 billion pounds.

Burger King, the arch rival of McDonald is planning to open a chain of Whopper Bars to sell its most famous burgers. The restaurant offers variety of burgers and it introduces the local flavors in its burgers to attract local clientele. Now, the restaurant is planning to introduce a chain of restaurants in America this year and also stated that Britain would be the next place of expansion. Burger King has chosen some test sites for the chain which would sell signature hamburgers in a hipper setting.

Burger King is famous for its Steakhouse Burger and the Whopper Bars would introduce tastier varieties in the menu. Also, the customers have the option of “Pimp your whopper” where they can put in their own toppings. John Chidsey, boss of Burger Kind stated that he introduced low price items with costlier ones on the same menu to attract customers and this is the reason behind the success of his once-ailing chain of restaurants.
He fondly calls this plan the “barbell strategy” and he added that UK offers huge opportunities for growth and hence they have targeted the airports and other places with very limited space to open their Whopper Bars.

The chairman of Samsung, Lee Kun-Hee was questioned by investigators for a whole day for alleged bribery. The powerful business tycoon was questioned twice in the last five days. The investigations into Korea’s biggest business empire began in January and it was feared that these allegations may lead to the division of the family business. Samsung chaebol has about 59 operations which include the massive electronics brand and also it is the second biggest shipbuilder in the world. The assets of the family-run business are worth about 70 billion pounds.

During the 1970s, the chaebol was created under the leadership of General Park Chunghee, the former leader of South Korea. Though several chairmen of chaebol were convicted in the recent years, only little duration in jail has been served by them and they controlled their empires without much hindrance. The inquiry was started on the basis of the allegations by one of the own legal team of Samsung that the company has created a slush fund of about 200 billion won for bribing government officials. But, Mr.Lee and the Samsung group denied the allegations. Also, the whistleblower accused Lee’s family of using corporate money worth 30 million pounds to buy art pieces.

Marriott owns 52 hotels in Britain whose turnover is more than 600 million pounds. Now, the US hotel operator is planning to build another 30 hotels under its lifestyle “Renaissance” brand name. Jurgen Giesbert, the head of Marriott’s Ireland and UK business said that these new hotels are for those who wish to have more of a local flavour on their stay at these hotels. Earlier, Marriott was criticized for its cookie cutter approach and now in response, it has come with the all new renaissance hotels.

However, its current new renaissance hotels are not up to the mark and hence it is expected that the Heathrow and Manchester hotels would be refurbished or disposed to meet the required standard. Marriott had taken over almost 47 hotels which were previously run by Whitbread under a franchise deal. Quinlan Private and IgaI Ahouvi Group, a property investment association now owns these hotels. The new owners are planning to spend 140 million pounds in the up gradation of about 42 hotels, a part of which will be met by selling the remaining five low quality hotels for nearly 70 million pounds. It is believed that the investment programme would be complete by the year 2009.

Capital Economics has predicted that the banks of UK may lose up to 7 billion pounds from the declining value of the shop, industrial and office buildings stock of the country over another two years. Also, it states that the write-offs could rise to about 18 billion pounds if the country’s economy slides into recession. It is said that the lenders and investors of nearly 450 billion pounds of commercial property are affected by the fall of about 15 percent in the price of the properties since last June.

The bearish warnings of Capital Economics have had an impact in the sales and rental demand of buildings. Capital Economics also predicts that the prices of the properties may fall further up to 30 percent by next year. Banks have typically loaned their borrowers an amount equal to 80 percent of the value of the property. So, if the fall in property prices continues for another year, many investors may have to repay larger amount within shorter period and hence may find it difficult to refinance their debt. This in turn may force the bank lenders and owners of mortgage backed securities to face losses to the tune of 7 billion pounds as the investors may tend to sell their properties to meet the huge repayment demands.

HSBC is planning to launch a “Rate Matcher Mortgage” which would benefit many borrowers that own fixed rate mortgage. With this scheme, those borrowers whose fixed-rate mortgage is due to end before 30 June 2008 can continue the deal with a fresh loan from HSBC on the same rate for another two years. But, the maximum loan size would be less than 80 percent of the value of the property and the maximum loan amount would be 250,000 pounds. The minimum rate of interest that HSBC would accept is 4.54 percent and the deal is fixed for two years.

On the other hand, the cost of the agreement fee varies with the size and interest rate of the loan. The borrowers may have to pay a gigantic 4,999 pounds if the loan amount is really high and the interest rate that they have on the existing mortgage is less than 5 percent. But, it is estimated that nearly 3/4th of the customers would pay only 999 pounds towards the agreement fee. If any borrower wishes to get this deal, they have to visit the nearest local branch of HSBC for a quote as this deal is not offered through brokers.