Private Finance Vs. Public Finance

Private Finance and Public Finance – A Comparison

Private finance refers to ‘individual finance’ whereas public finance refers to ‘state’ finance. Keynes has said that “What is true of the individual may or may not be true of the state as a whole. The similarities and dissimilarities between private finance and public finance are therefore, examined below.


The goals and methods of private finance and public finance are more or less the same.  Both have to satisfy human wants with limited economic resources, controlling wastage. That is the objective and rationality in their budgets. Individuals as well as the governments are engaged in economic activities viz. consumption, production, exchange, growth etc. They receive income and make payments. Both borrow and invest funds. Both contribute to the national product.


Private Finance

Public Finance


Satisfaction of one’s own wants

Satisfaction of societal wants


Optimisation for oneself

Optimisation for all


Personal benefit  (profit)

Social Advantage (service)


Individual adjusts his expenditure to his income

Dictum: cut your coat according to cloth

Government adjust its income to its expenditure


Small and less varied

Enormous and highly diverse


No force possible

Coercive Methods adoptable

(e.g. using the axe of tax to chop off the Manhattan of incomes for ‘equity’ sake)





Budget is secret

Budget is open and transparent

Public debate and criticism


  • Surplus Budget is natural and acceptable
  • Smaller budgets of a week or a month are also executed
  • Deficit Budget is common and healthy
  • Normally big budget, for a financial year


No one has right to print currency

Government has currency right:

Fiat money (fiat=order)




Know all about Personal Loans and their Uses in Daily Life

The number of credit items has expanded in the course of recent years as monetary need and a requesting open needing specialisation to unravel budgetary conditions. From individual credits, instructive advances, business advances and even city advances to address a couple required different enterprises to be imaginative. The elements that partook in the formation of the different monetary items are statisticians, hazard administration experts, “data and informatic specialists” and Wall Street amongst others. It was important to make, improve or separate for better or for more terrible credit administrations and items to keep cash liquid in a various commercial centre that obliged assets to address corner demographics.

Personal Loans

Signature Loans – A mark credit is general as it sounds. One applies for a credit and gives a mark on a promissory note to reimburse the advance in a specific measure of time. That measure of time is known as a “credit term ” and might be from six months to five years. Signature advances more often than not require great credit and the criteria for advance endorsement are generally in view of the borrower’s credit and to a lesser degree on resources. Not all mark credits have the same parameters for capabilities. A few advances may require the borrower even with great credit to represent resources for demonstrating the loaning organisation for endorsing purposes. The organisation could conceivably put a lien on the advantages however, all things considered, needs to have documentation demonstrating that there are surely money related or physical resources claimed by the borrower. Signature advances, as a rule, accompany lower financing costs than different sorts of purchaser advances like payday advances, charge card propels, title credits and some auto advances. More on these subjects later. Who are the banks in mark credits? They go from extensive backups of automobile producers to banks, funds and advance establishments, money organisations and payday credit organisations.

Charge card Loans – Credit Card advances or loans from Visas are another type of individual advances. These fast advances are all the more promptly accessible to the overall population and do not require a credit check. To get the underlying card more than likely required a credit check or if nothing else the procedure of recognisable proof for secured Mastercard. Mastercard advances or advances, as a rule, accompany higher loan costs furthermore different charges for having entry to the money. Different elements permit access to the charge card loans from bank employees, check getting the money for offices and computerised teller machines (ATMs). The expenses change in view of the source used to get to the assets. To bring down the expenses for loans some utilisation check getting the money for offices to have the card charged and get trade pull out turn for not incurring the expenses of ATM machines as cards are imposed a charge twice; first by the ATM organisation furthermore their bank. The financing costs on Visa advances or advances …

Factoring invoices is the solution for slow paying customers

Just about every business understands that when they sell to another business that business usually expects to receive 30 day payment terms.  This 30 day period often becomes 40 to 45 days and this can put a serious cash flow strain on just about any business.  When your business starts to slow down or turn away opportunities because your cash is not in house, then factoring invoices may be your solution.

Factoring receivables was created to eliminate the payment gap that your customers created by paying you 30 to 60 days after the sale was completed.  It sounds silly that a financial tool was created simply to get a business paid when they did what they were suppose to do to be paid in full, but that is what traditional sales credit terms have done.  We get calls every day from business owners who need funds for payroll or other reasons because they are waiting for payments from customers.  We often mention invoice factoring as a solution and they are surprised to find out that indeed they can get paid in one day and normally for less than the price of accepting a credit card payment.  The factoring company will advance around 80% to 90% of the invoice total to you the day you submit the invoice for funding and then when your customer pays you get the remaining amount back, less the factoring fee which ranges from 1% to 5% in most cases.

The other nice piece to the factoring solution is that getting approval is usually dependant on your customer’s credit and that allows companies with little established credit leverage customers good credit to obtain a financing solution.  If your customers want to use your money for 30 to 60 days, then they should pay to use your money.  Many businesses add the cost of factoring to the pricing model so the customer is paying for the credit terms.  It makes sense if you’re acting as a bank for customers they should pay for the cost of money, just like a bank.

If your customers are paying in 30 to 60 days and you need cash back within your business sooner, then factoring invoices should provide a quick solution at very reasonable cost.…

Cigna And Aetna Do Not Cover "Angelina Effect" Cancer Testing

Cigna and Aetna have ensured that they will not be covering for the latest generation of tests.

Reuters states, “Medical researchers call it the ‘Angelina Effect’, the surge in demand for genetic testing attributable to movie star Angelina Jolie’s public crusade for more aggressive detection of hereditary breast and ovarian cancer.” This has been one of the most expensive treatments in the medical world, which requires some additional tests and checkups as well. Therefore, it is believed that some of the major insurance companies, such as Aetna or Cigna, have refused to cover the ‘Angelina effect’. These insurance companies have clearly declined to pay for the latest and expensive generation of tests, known as multi-gene panel tests.

The insurance companies claim that these latest tests are ‘unproven’ so far that might require additional medical care, which the patients would not need. The national medical officer for enterprise affordability at Cigna, David Finley, said that these latest tests would help in finding ‘unknown’ mutations. He said, “This is where there is controversy and disagreement. My problem is what do you do with that information?” However, from doctors to genetic counselors, academics, and diagnostic companies, have not agreed with the insurers’ claims. They termed it as “dangerous miscalculation”.

Despite of the fact that the experts in this field understand that multi-gene panel tests’ data might not be as useful from a diagnostic standpoint, but it would not favor the suffering patients. According to them, by refusing to cover up ‘Angelina effect’ on their plans, the insurers would be endangering their clients (patients) who might be in need to undergo from screenings or change their diets, etc., in order to get more knowledge about the risks.

A surgeon at Kaiser Permanente Hospital, Susan Kutner, said, “If we have members who are not being tested in a timely manner, we know that their risk of cancer in the long run costs us and them a lot more.” It is believed that the latest generation of tests can cost the insurance companies around $2,000 to $4,000, which would be analyzing 20 or more genes at once. Sources tell that humans have 23,000 genes; hence, the tests allow health care professionals to make DNA links to other cancer related conditions.

The major insurance companies are not in favor to cover this in their plans, as it might increase their costs and would benefit either the company or the patient. Health care professional strongly disagree and encourage the insurers to consider this in the near future.


The Best Home Based Business

I have produced an article on the best home based business. It has been produced to help you make a better informed decision as to what type of business you could start at home for yourself.

Ideally, the best home based business is going to be the one that has a zero start up cost, requires no effort to run and delivers huge profits. Would you like a business like that. I know I would. The question is: Does such a business exist. The answer is: in all probability, No.

So I asked myself, what is the next best thing.  The answer is: look for a business with low start up costs and something that you have a burning desire for and a keen interest in.

What Type of Business:
The type of business you start can depend upon your skills, both past and present. It will be easier and quicker for you to start up a business where you already possess the skills and knowledge, rather than having to undergo training to acquire the necessary skills.  some ideas for the best Home based business could include: child care, tutoring, translation, tailoring services, consultancy, website designers, arts and craft makers, publishing, catering, virtual assistants (that is, providing office based services over the internet).

To get your creative juices flowing, think about this:  have you experienced poor service where you have said to yourself,  I could do better than that. If so, then this could be a good place for you to start. Or, is there a gap in the market, for example, is it easy to obtain good gardening services in your area, if not maybe you could provide one.

What you have to understand about the best home based business is that your ideas have a value. They lose their value when they are ignored by you, or when you talk yourself out of doing something about them, or you give up based upon  somebody disapproving. This is a mistake and having persistence would benefit you in these instances.

A low cost business start up:
Do not forget that the purpose of business is to produce a profit. In order for the best home based business  to start and succeed, the principles such as desire, faith and persistence, must become a core belief within yourself. Also and this is vitally important, you must have a plan. Make one before you start and follow it.

We are living at a time when money is tight for many people. But this should not prevent you from becoming a business owner. Therefore, lets take a look at starting a business with as small amount of money as possible. In these circumstances having an online business is the best home based business and would be beneficial as many online services can be obtained for free.

What you have to understand is that trust and consistency are all important online. If you do not build these qualities with your customers, you will find it …

Profitable Business Idea: Internet Café Sweepstakes

Starting a new business is a risky endeavor; even the most researched and well-thought-out business plan doesn’t guarantee results or success. This is why so many people end up losing their passion to open a new business and follow their dreams. But what if there was a way to open a new business in one of the most popular growth industries in America and receive free consultation? According to SweepsCoach, one of the leading Internet gaming café companies in the industry, there is.

Here is a look at the Internet café sweepstakes industry and how you can get free support when launching what is quickly becoming the most popular and profitable business idea in America.

Business overview: A sweepstakes Internet  café business is similar to a computer gaming café: Customers pay a certain amount of money to sit behind a computer and play a variety of PC games. The only difference when it comes to a sweepstakes business is that consumers play sweepstakes games instead of traditional PC games. The selection of games is usually determined by what is most popular in the local area.

The cost of launching this type of business varies depending on the number of sweepstakes machines, location and the prices of your lease or rent.An Internet  café franchise start-up can cost as little as ten to fifteen thousand dollars to several hundred thousand dollars.

The Market:Sweepstakes Internet cafes are opening up everywhere throughout the United States as a legal and profitable business.Customers end up paying a lot of money to play computer sweepstakes machines and compete for prizes while business owners enjoy the profits. What’s more, through the use of web-based internet  sweepstakes software, entrepreneurs don’t have to purchase an onsite server or point of sale for each location and therefore save a ton of money.

The support: SweepsCoach offers free consultation for entrepreneurs interested in launching a sweepstakes internet café.For more than 10 years, SweepsCoach has helped launch more than 200 gaming centers internationally and across the U.S, and can help entrepreneurs with every step of the process. This includes initial planning, software and hands-on training. Most importantly, SweepsCoach builds and delivers the computer sweepstakes machines. The technical team at SweepsCoach will provide onsite installation and training.…

Health Coverage : Important Factors to be Consider

Gradually, health coverage has turn into puzzling and regrettably less valuable over the past few years. Most of us will be able to see insurance companies on a day to day basis and understand their suffering which they put to their customers from beginning to end. There are a number of essential aspects that you need be examined before purchasing the policy. When you are coming across any health insurance, these important factors will help you to find an appropriate plan that best suits for your requirements, as well as your family needs.

Let’s understand some of these vital factors:


This is the money you pay prior to your insurance pays or it refers the amount of money which you give out of your pocket earlier than the insurance company initiates paying anything.    

This anything may include quite a lot of essential elements, in which some deductibles can be a complete payment for the whole family, while others are lump sum meant for every person in the family. Here one example has given for your better understanding:

Suppose one man regrettably has a deductible amount of $2500 dollar with his insurance plan, similarly his wife also has the same. Therefore, they both have to pay $2500 dollars for each year prior to medical expenditures will be included.


Most of the insurance plans have co-pay meant for office tours, visit to the emergency section, special investigations and so on. In this, some can be as little as $10 for every trip, whereas others can be as high as $50 for each visit. It is extremely essential because, suppose  if you are suggested by a doctor to go through physical rehabilitation, for instance 3 times for every week at least for 4 weeks, then that might include up to somewhere around $120 and $600 for each month. If the co-pay is much high, then there is less possibly that anyone will need to look for and complete a treatment policy.

In-Network and Out-of-Network:

If the health care services are known by a person’s insurance providers, then it refers to In-Network. It denotes that your coverage involves the procedures carried out by these facilities. The system in which these facilities are not covered refers to Out-of-Network. Have a look on the given example so that you can understand the difference in both networks:

Suppose you are working for the particular clinic but wanted treatment from a physician at University Hospital, thus you would be going Out-of-Network and in such case less of the treatment will be enclosed by your insurance. On the other hand, if you sought treatment within campus and required a doctor from the particular clinic in which you are working then it would be In-Network and it also covers your medical expenditures at a high percentage. All the above mentioned factors are important to consider when shopping for health coverage plan.…

Your Home Business Opportunity Checklist

A Home Business Opportunity is a great journey to embark on. While it can be a complicated task, having a handy checklist will help keep you on track. If you begin with a good working plan your Home Business Opportunity will get off the ground without a hitch.

The first step in starting a Home Business Opportunity is creating a business plan. It is essential that you have a plan to detail what you want the Home Business Opportunity to be and where you want it to go. Establish goals you intend to reach and when you want when you want to achieve them by. How much money do you have to invest in the Home Business Opportunity? What type of schedule will you be able to work i.e. how much time can you dedicate to your Home Business Opportunity every day? What is your launch date, don’t procrastinate? All of these things should be figured out before you actually put things into motion for your Home Business Opportunity.

What type of Home Business Opportunity are you starting? Will your Home Business Opportunity be based on a current hobby/interest or will you start as most do by being an affiliate marketer? This all depends on the money you have to put up and the type of business you will be starting. Make sure that you are realistic.

The laws regarding your Home Business Opportunity do vary from state to state and country to country. There are many tax benefits associated with operating your Home Business Opportunity that make the venture even more attractive, so make sure you maximize them.

Probably the most important part of starting a Home Business Opportunity is your reason Why I say this because as with any business online or offline you will most likely be spending more than what you earn in the first couple of months. You need to have very strong reasons for why your Home Business Opportunity is going to be successful because you will have times of frustration and doubt but to be successful you need to push past that.

In establishing your reasons why you want a successful Home Business Opportunity they need to be such that if you don’t make a success of it, what is going to be the result of that and are you prepared to accept that because again if the Why is not strong enough it is easy to give up and let someone else decide your fate. Not a good option I would have thought.

When looking through the myriad of Home Business Opportunity that are available today it is easy to become confused so you need to abide by certain criteria when making your selection.

Some of the things that I suggest in making the right choice for a Home Business Opportunity are;

If it sounds too good to be true then it most likely is, a Home Business Opportunity is like any other opportunity and that is the path to riches takes …

How to Create a Financial Report

Recorded on a special form every month, a financial report is basically a record of receipts and expenditures. When a financial report is created, total receipts are recorded and expenditures are itemized every month. As long as this is done, creating an annual report becomes easy as the fiscal year draws to a close. All businesses, regardless of where they are located prepare financial reports. For instance, you prepare financial report Singapore, US, etc. The primary purpose of creating a financial report is that it aids business owners in analyzing profit and loss and considered essential in obtaining finance.

Follow these steps to make a financial report:

1-     Monthly expenditures should be separated into categories such as utilities like electricity, garbage, water and telephone, vehicle expenses would include fuel expenditure, repairs and maintenance, depreciation and leases, labor expenses would include, salaries, wages and bonuses, office supplies, insurance and materials.

2-     There are different types of finance reports that can be made and a business needs to decide the one that will benefit it the most and can be created every month easily. There are software available these days that provide the formats for most financial reports.

3-     The monthly expenditures should be added to the report in the appropriate category. You have the option of adding the category if it doesn’t already exist.

4-     You should also make a category dedicated to annual expenses. The annual amounts should be placed after writing the name of the expense and then dividing it up by 12 for determining the average monthly expenditure.

5-     Add the monthly expenditures together to obtain their total and enter them in the correct category.

6-     The monthly receipts should also be entered and totaled. As a business owner, you have the choice of separating the cash sales from the accounts that make monthly payments. The total amount of income and sales should be placed in the correct columns on the financial report.

7-     You can calculate your monthly profit by separating the total expenses from the income and cash sales of the month. When the fiscal year comes to an end, preparing a financial report for the year is now easy since you have a financial report for every month. With the final profit and loss statement, you can judge the success of the business and apply for finance accordingly.

These instructions are suitable for small businesses, but they can only be understood and performed by someone who has some accounting experience. Most businesses cannot afford to hire such professional on a full-time basis. In this case, they can choose to use professional accounting services. These services specialize in making financial reports and other related document and are aware of the format to be followed. The best part is that there are numerous such services available these days such as Koh Management, which are highly reliable and can provide impeccable financial reporting filing services to small, medium and large-scale businesses at a very reasonable and affordable cost. …

What is a Ppo?

The idea of a preferred provider organization is that the providers will provide the insured members of the group a substantial discount below their regularly-charged rates. This will be mutually beneficial in theory, as the insurer will be billed at a reduced rate when its insured utilize the services of the “preferred” provider and the provider will see an increase in its business as almost all insureds in the organization will use only providers who are members. Even the insured should benefit, as lower costs to the insurer should result in lower rates of increase in premiums. Preferred provider organizations themselves earn money by charging an access fee to the insurance company for the use of their network. They negotiate with providers to set fee schedules, and handle disputes between insurers and providers. PPOs can also contract with one another to strengthen their position in certain geographic areas without forming new relationships directly with providers.

What is a Health Savings Account (“HSA”)?

A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.

You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.

You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow.

What Is a “High Deductible Health Plan” (HDHP)?

You must have an HDHP if you want to open an HSA. Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (i.e., your “deductible”) but will generally cover you after that. Of course, your HSA is available to help you pay for the expenses your plan does not cover.

For 2008, in order to qualify to open an HSA, your HDHP minimum deductible must be at least $1,100 (self-only coverage) or $2,200 (family coverage). The annual out-of-pocket (including deductibles and co-pays) for 2008 cannot exceed $5,600 (self-only coverage) or $11,200 (family coverage). HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and copays & coinsurance) for non-network services.

How can I get a Health Savings Account?

Consumers can sign up for HSAs with banks, credit unions, insurance companies and other approved companies. Your employer may also set up a plan for employees as well.

How much does an