WHAT IS A CREDIT UNION?
A credit union is a financial cooperative organization, not for the sole purpose of making profit but to provide service for members.

WHAT IS THE DIFFERENCE BETWEEN CREDIT UNIONS AND OTHER FINANCIAL INSTITUTIONS?
A. The difference is in the structure. Other financial institutions are owned by stockholders who seek to profit from their investment in the organization. Credit unions are owned cooperatively by all of their members without regard to the amount of money that a member has in the credit unions.

B. Credit unions are directed by the volunteers from within the membership. Credit unions return profits to their members in the form of dividends, loans, rates, fees and services.

C. Credit union does business only with their members.

HOW DOES A CREDIT UNION OPERATE?
A credit union accepts deposits from its members and offers to them a range of financial services. Members elect a board of directors at their annual general meeting. The board in turn employs a general manager to manage the day-to-day operations of the credit union. Credit union members may be elected to serve on committees in the credit union.

HOW DOES A PERSON BENEFIT FROM BEING A CREDIT UNION MEMBER?
A. A credit union member is a co-owner of his credit union.

B. Each member has equal voting power (one vote), the same as all other members in the credit union, irrespective of the amount of his savings.

C. Each member has the power to exercise his/her democratic right in determining by whom and how his credit union is run.

D. A credit union member shares in any surplus that is earned annually.

E. Credit unions now offer a range of financial services, in some instances, the same as those available at other financial institutions.

F. Members can determine the type of financial services the credit union should provide.

G. Members are helped to save through the habit of thrift that is encouraged by credit unions.

H. Members can save directly and transact business at their credit unions through salary deduction facilities that are available at credit unions.

HOW CAN I FIND A CREDIT UNION TO JOIN?
Each credit union can serve only those people who are eligible for membership. You are eligible for membership in one or more credit unions based on where you or your family members live, work or worship. This is referred to as the common bond.

For more information, contact your nearest credit union.

Many women choose to ignore financial matters by getting someone else to do it for them or even worse, simply choose to do nothing. Ladies!!! Don’t get trapped in that old, self-limiting cycle. Here are 7 simple money tips that can help you manage your finances better.

Tip#1: Pay Yourself First
This means arranging in advance for an automatic salary deduction each month, with these funds bing channeled into the investment of your choice. The rationale: if you don’t have it, you can’t spend it. Practice dollar-cost averaging i.e. the technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares when prices are high.

Eventually the average cost per share of the security will become smaller and smaller. Dollar cost averaging lessens the risk of investing a large amount in a single investment at the wrong time.

Tip#2: You don’t need a lot of money to begin investing…
There are several different investment plans that you can start investing in, check your local Investment Companies, Commercial Banks, Merchant Banks, Building Societies, Mutual Fund Companies, Credit Unions, Insurance Companies and other investment agencies.

Tip#3: Choose a Licensed and Trusted Financial Planner
When deciding which financial planner to partner with, ask him or her some of the following questions:
What experience do you have? What are your qualifications? How much do you typically charge? Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career? What is your approach to financial planning? Only after you have had this conversation and are comfortable with the responses should you sign on the dotted line.

Remember, you should only do business with a financial institution that has trusted and experienced financial advisors and with whom you can feel comfortable discussing your financial history.

Tip#4: Beware of how you manage your Credit…
Too often married women get left standing in the dust because they neglected to have savings accounts of their own!!……Then, suddenly they are single once again. The only thing in life that remains constant is change. In the event that life doesn’t go as planned, make certain that you are properly managing your credit cards by paying your monthly balances in full.

Also, be aware of the financial situation of your spouse. Understand that you may share responsibility for some of the debt.

Tip#5: Create a Rainy Day Savings Account…
The rule of thumb here is to keep preferably between 6-12 months of living expenses i.e. cash reserves in order to plan for a rainy day or to take advantage of any opportunities that may suddenly arise. When life’s challenges present themselves, be it loss of a job, the loss of a spouse or lifetime deal such as paying down on a home, you will be in a much better position to rise to the occasion.

If you don’t have the required amount saved, do not despair; remember that every successful person starts somewhere. Therefore, make a plan that will take you from where you are to where you want to be / ought to be.

Tip#6: Join or Start an Investment Club
If you are feeling stuck at the starting line, investment clubs are a good way to get started, as there is support in numbers. As part of an investment club, each club member contributes a certain amount each month to the investment club account. Then, using the funds collected, the club as a whole buys stock in particular companies. Over time, an investment club will acquire a “portfolio” of different stocks bought at different times. Members can be assigned various tasks such as researching specific companies and then reporting findings at the meetings of the investment club. The result: great friendships and exciting investment opportunities.
Also, consider investing in a mutual fund that is managed by a professional portfolio manager who pools all collected funds and invests in a variety of instruments. Get professional investment advice on the mutual funds that are most appropriate for you and your goals.

Tip#7: Get your Family in the Habit of Talking about Money & Keep Informed!!!
Talk about financial issues with your spouse and children. It is important to understand and appreciate the financial situation of your partner and ultimately that of your family. Ensure that the appropriate assets are held in joint names. A good understanding of the family’s financial situation on both sides can also help to build the relationship and improve both individual’s sense of security.

Good communication will also help in creating and implementing a successful financial plan. Also, by talking about money you will be able to teach your children the importance of saving and how to manage their finances at an early age.

Finally, it is very important to keep abreast of current affairs. Keep reading and educate yourself with the numerous resources that can be found in financial books, newspapers, and magazines and websites.

Some of us believe that finance is too difficult to understand. However we should all remember that all knowledge is good and can be used to improve our decision making. Keep informed and be committed to continued learning. This over time will contribute to the successful implementation of your financial plan.

1. Carlos Slim Helu – telephone tycoon with a net worth of $53.5 billion
2. William Gates III (Bill Gates) – the man behind Microsoft; net worth – $53 billion
3. Warren Buffett – America’s favorite investor; net worth – $47 billion
4. Mukesh Ambani – owner of Reliance Industries, India’s most valuable company; net worth – $29 billion
5. Lakshmi Mittal – owner of ArcelorMittal, the world’s largest steelmaker; net worth – $28.7 billion
6. Lawrence Ellison – founder of software company, Oracle; net worth – $28 billion
7. Bernard Arnault – fashion icon, maker of Louis Vuitton fashion; net worth – $27.5 billion
8. Eike Batista – Brazilian owner of mining giant Companhia Vale do Rio Doce; net worth – $27 billion
9. Amancio Ortega – owner of the Inditex fashion empire; net worth – $25 billion
10. Karl Albrecht – owner of Aldi Sud, a dominant grocer in Germany and Europe; net worth – $23.5 billion

WHO NEEDS A BUSINESS PLAN?
Entrepreneurs Creditors
Team Members
Creditors
Investors
Bankers

WHAT IS YOUR BUSINESS PLAN?
The primary value of your business plan will to create a written outline that evaluates all aspects of the economic viability of your business venture including a description and analysis of your business prospects. Your business plan is the bible that guides your business. It gives detailed information on your business and helps you to work out and see problems well before they arrive.

WHAT ARE THE COMPONENTS OF THE BUSINESS PLAN?
Even if you do not personally write your business plan, it’s your business as seen through your eyes and you will need to supply the information that will be needed to be writer in that plan. Your business plan cannot be written without your input. This is a document that if you have the time you can write it yourself.

A business plan begins with a brief introduction of your project and how you know that your product will change lives and is different from your competitors, followed by an executive summary. This summary is written once the plan is completed, the summary is written once the plan is completed, the summary is the most important page in the plan because it will convince persons that have to read it that your business is worth considering. If the executive summary is not convincing chances are no one will want to read your business plan.

THE INDUSTRY ANALYSIS
The industry analysis is the second part of the business plan; this will detail what is happening in your industry. Here you look at the Geographic, Demographic, Psychographic and the Behaviour of the players in the industry, and to now articulate how your company can compete on differentials.

THE MARKETING PLAN
The marketing plan helps you to develop strategy to attain the goal you have for the business. Every aspect of your business plan must be detailed and this must have a realistic assessment of the external environment. The marketing plan is one of the factors used to determine the resources you will need to operate this business. This will also determine the ways you choose to promote and distribute your goods and service and will allow you to be very clear about how you handle your production, financials and human resources.

THE ORGANIZATIONAL PLAN
The organizational plan looks at the structure and design of the business, the management of the business that is designed to fit the business. It also looks at the staffing details, owners, and operators, full or part time staff, temporary staff, subcontractors, advisors, and consultants. This plan also looks at their educational background and what these people will bring to the growth of the business. You must state clearly the roll of each employee and then looking on the growth of the business, think of the employees you will need in the next two to five years.

THE PRODUCTION PLAN
This plan looks at the daily operations of the business, the equipment that will be needed, who will operate them, when they will need servicing. This area looks at the cost of the goods or service and how and when these will be presented to the customers. This plan can tell you what the company will need to do to make it survive it well into its future. The human resources will be affected by decisions made in the production plan. This will also determine the training needs.

THE FINANCIAL PLAN
The financial plan has three major components, the forecasted sales, the cash flow and the balance sheet. The forecast gives monthly figures of estimated collections that will determine how stable the business will become. The cash flow looks at estimated figures over a period of up to five years to determine how the bills will be paid. This is crucial because your business can fold if you are unable to pay your creditors. The balance sheet shows the financial condition of your business at specific periods of time. You might need an accountant to do this for you if you don’t have related accounting knowledge.