Business Intelligence, Data Nerds, Learning New Things

The Business Intelligence of Money

This post is triggered by the January financial woes. Everybody, or most us at least,  Financial freedom - Money analysisagree that right about this week, January feels like the longest month of the year.

Apart from time, money is one of the most analyzed values. Some companies do not analyze anything else, besides money-in, money-out analysis. A pity because then you can miss the behavioral values that affect money-in money-out ratios.

However, where companies can over-analyze money, individuals have a hard time understanding the intelligence and value of money.

Business Intelligence is the art of finding useful, actionable information in the existing data-volumes and then, utilizing this information to make decisions that can alter lives.

Even private lives in the micro level of finance.

There are lots of tips on how to stay afloat even through emergencies. For example, save 10% of your income every month. But does that really work for all of us, all the time? Doubtful.

Alternatively, the intelligence of money is being economical as a way of life.

To save is to learn to understand Business Intelligence of profits and losses:

  1. High Season, High Price. Low Season, Low Price.
    • Travel cheap – Buying tickets on certain days and certain times can save you up to 70% on flight tickets. Airlines earn the profits on the loaded dudes who buy tickets at full price on the wrong days. To fill the remaining seats, they then cut prices for the poor dude who must travel and are looking for a deal.

Be the dude and look for tickets at uncomfortable hours.

    • Buying certain items on certain days and certain times can save you quite a dime per year. Same theory as above. The profits are earned in the beginning of the sales season of whatever it is. Even fruits. Most people buy avocado at full price when avocados first arrive in the market. After a few weeks, most consumers have had a fill of avocados and the shops can’t seem to get rid of the avocados. Voila! Cheap avocados.

Shopping 60th January 20182. Companies use Discounts as a way to get rid of what can’t be sold on full price. It is not a favor to you. Learn your math for utilizing those coupons!If have combination promo codes and coupons, use the promo code that you can apply on the whole order, and full price first.

  • No Company is your best friend unless you have a friendly-price-contract. And even then. Learn to Compare. The biggest BI activity is comparison. Sales Now compared to last year/week/month etc. Compare your potential buys before you order.
  • You are your own core business. You generate the income and the profits. And unfortunately, you are also the expense. Understand your income inflow and outflow.
    • What costs you money? Is it something you must have for your core business to be productive? Can you automate it? Can you control the outflow?
      • Companies usually try to reduce employees and other volatile assets that need lots of maintenance. Can you?
    • What earns you money? Is it sustainable? Can it be optimized?

Put away as much as you can in cash every month. Once we learn the hack of saving, we can learn to invest the savings. This is recommended by most Financial advisors.

Don’t start to buy funds and shares until you are debt free and have a buffer saving.

Simply:

  1. Cancel your credit cards
  2. Pay your debts.
  3. Save!
  4. Invest

After you have stashed away the ~10%, if you can, you can continue to save on the net income left. It is thrifty, and can be categorized as penny-pinching but the rewards are worth any name calling.

 

 

 

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