Make the right financial decisions using these steps

May 2, 2018

Make the right financial decisions using these steps

In the world that we live in today, you do need as much financial freedom as you do financial security. Just by looking this up, you can see a number of prominent people who eventually ended up in debt and bankruptcy as a result of poor planning and bad financial decisions. You definitely do not want to end up on the same road so you have to be o top of things with respect to your finances. You can be able to make informed financial decisions using the steps below.

  1. Automatic saving

For you to be able to save enough you need to make sure that it happens automatically. This is not the case for most people because all of their money goes into their checking account. With every pay day, you can make sure a certain amount of money automatically goes into your savings account before it even gets to your checking. This is what we call an automatic transfer.


  1. Get your priorities straight

We have all at one point in time set aside money to do something and we ended up using that money to do a completely different thing. This is because of misplaced priorities. You need to have a list of the goals that you intend to achieve and how much will go into each goal. From there, have the discipline and always have your primary goal at the back of your mind.


  1. Budget

For you to really understand what you can and cannot afford, you will have to write a budget. Ensure you have a fixed amount of money that you set aside to the most important things like food and rent. Make sure you stick by the budget and revisit it after every few months depending on the changes in the amount of money that you earn.


  1. Analyze your financial situation

Nobody knows your finances more than you do. You have got to continuously question yourself and your spending habits. If you want to buy something, look at the effect that it will have on you and your family. Will you be able to afford everything else that you need or will it eat into your other needs. The only way that you move forward to financial freedom and financial security is by questioning yourself analyzing your financial situation.


  1. Assume this was five years ago

This has got to be one of the most important tips I have come across with regards to finances. Anytime you want to buy something you have to ask yourself if you would have been able to make the purchase 5 years ago and if you wouldn’t have been able to then do not make the purchase. This is a very good way to save.

5 years



Do You Know All the Essential Facts About Health Insurance?

Apr 22, 2018

Sufficient data collected by the Journal Health Affairs has found that about half of all Americans living with health insurance always feel confident that they can understand and relate to basic insurance terms.  In Canada there are a wide variety of insurance covers including commercial insurance.  Get the best health insurance cover from insurance broker. And less than a quarter of all the uninsured Americans feel the same way. This article highlights five essential things you should know about health insurance consumer needs and how they relate to you.

  1. The premium isn’t everything


You need to be aware of the fact that every health insurance cover has some variables to it. So, even just looking at the total monthly payment or premium will not end up telling you the whole story of the health insurance plan.

It is, therefore, vital that you fully understand the type of health insurance plan you are applying for before you apply. Try and ensure that you understand the big picture which includes annual deductibles and everything else.

You should look for low copayment premiums if you are one person who regularly seeks health care. These premiums are fixed out-of-pocket charge.

  1. Coinsurance and copayment are not the same

Co insurance

These two insurance types deal with cost-sharing between the insurance company and the consumer. They are, however, two very distinct payment types.

Copayments are situations where you find that the patient pays an exact flat dollar rate to the provider for each service rendered.

Coinsurance, however, is the percentage of all the costs that a patient is entitled to pay after all the deductibles have been met.

  1. Out-of-network benefits can sometimes be costly


A regular insurance plan usually includes health care facilities, a network of doctors and other providers that work for or even contract insurance companies. The insurers then have to agree on how it will provide services and at particular rates.

It may, however, be necessary to use out-of-network providers. For instance, health care crises can occur while you are traveling and the provider is in your network. But then you find a case the hospital where the provider is stationed is outside your network. This can end up presenting a lot of questions as to whether the services provided will be covered.

  1. Patients have to make sure all charges are paid


Know this; insurance cards are not credit cards. You will incur bills the more you use them and for every service that you receive, says Seltzer. What you need to know is that you will be ultimately responsible for all the health care costs that you incurred while using your health insurance cards.

  1. Avoid the ER as much as you can


The hospital ERs are designed to treat true emergencies like traumatic injuries and persistent chest pains. But if you are the one who uses the hospital ERs constantly, then you should expect to see both increases in prices and wait times.

Avoiding the emergency rooms will save you a lot of money and time, so, try and avoid them as much as possible unless you are in a real emergency situation like you have been in an accident and are badly hurt.

Difference between Audit, Review and Compilation Engagements

Jul 10, 2016

A chartered accountant’s skill is vital for the prosperity of an organization. It is necessary for businesses to consult accounting firms frequently to evaluate the establishment’s performance. Professional accountants offer services such as business planning, calculation of tax payments due, prepare and audit financial statements. Accountants refer to the services they offer as engagements. There are three engagements related to financial statements of an organization:
• Review engagements
• Audit engagements
• Compilation engagements
It is imperative that businesses understand the work performed by chartered accountants.

Audit engagement
Audits are necessary to provide an organization’s financial statement users with an opinion on whether the statements followed proper accounting methods. Businesses report to shareholders, governments, and creditors through audited financial statements. Legislation in Canada stipulates that limited corporations should prepare financial statements for audit by qualified independent accounting firms.
Creation of financial reports is the sole responsibility of companies’ management. The auditor’s responsibility is to provide an opinion on the fairness of the statements. Auditors employ such activities as evaluate the firm’s structure of internal control, inspection of documents, and observation to gather necessary data to establish whether the financial statements accurately reflect the company’s financial position.

Review engagement
Review engagements are performed to give assurance that there are no modifications that should be made to the financial reports to align them with financial reporting regulations. A review is different from an audit. Review engagements provide little assurance to the user of financial reports. The degree of assurance from a review is expressed as either:
• Negative assurance; in this case, nothing came to the auditor’s attention that would indicate that the financial statements have not followed accounting principles.
• Reservation; the auditor has to provide an appropriate disclosure with details for the reservation.
In performing a review, a chartered accountant would only inquire on matters such as accounting practices employed by the organization and the management responsibility.

Compilation engagement
A compilation engagement aims to assist the management in presenting financial data in the form of statements. Compilation engagements do not provide assurance that the statements have conformed to accepted accounting principles. Compilation requires the accountant to gain knowledge of the business including the financial accounting systems applied and prepare the financial information as financial statements. Compilation engagements do not require the auditor to provide an opinion on the accuracy of the statements presented.
While independence is paramount in audit and review engagements, accountants do not have to be independent of the business in question to perform a compilation engagement.

Professional accountants offer many services other than audit, review and compilation engagements. Different businesses need accounting services for different reasons. It is crucial to understand the dynamics of each level of service while seeking assistance.