Friday, April 6, 2012

The Rich Man Habit

Rich man has some habit that is different with ordinary people. With a little money, they can make them rich; meanwhile, a poor people cannot get benefit from so much money. I have heard a millionaire can rich again after bankrupt. He just needs a trust from people to get the capital.
Here is some rich man money habit that you can follow it.
1. Saving first
Most rich people save the money for short term or long term purpose. The rich man does not want to spend the money for today. They set revenue aside for saving. The percentage of saving is that depend on your revenue. Most financial experts suggest saving ten percent of the revenue. You can increase the percentage when you receive more money.
The rich man invests the money at profitable investment such as stock, mutual fund, ETF, and precious metal. As the economic decline, some rich people remove the investment to asset such as land, gold, collectibles, and so on.
2. Budgeting
To control the spending, the rich man create a personal budget that describe the earning or spending for next month or year. The budget tell the owner on how much he or she going to spend next month. 
3. Avoid debt
Some rich people avoid debt especially unproductive debt such as consume debt, lease car, and else. The debt could make people bankrupt. Do not buy anything if you have no cash.
A man should not have propose jaguar lease car, if they do not have money. Use used car or buy Japanese or Korean cheap car.
4. Prioritize to pay bill
A household needs electric, gas, telephone, and others. Allocate part of salary to those spending post. Do not delay it until the company cut the electric, gas, or telephone. 
5. Frugal living
If you have small family, you can live at small house. The small house must be cheaper and it needs cheap cost to maintenance it.
6. Charity
Help other people means help yourself. Giving part of your money to other people will not kill you. Some people may help you someday.
For example, you are an entrepreneur who produce noodle. You donate your money to unlucky people who live around your factory. The people may buy your product and it will increase your revenue.
7. Working hard
Certainly, most rich people is hard worker. Some of them are workaholic. They believe that to reach wealth, a man should work hard. Certainly, they must pray and remember God.

Thursday, April 5, 2012

How to create strict budget

As the economic condition is difficult, some household try to reduce their expense so the income can balance the increases spending. They will bankrupt if they do not change their spending behavior. The key of the strict budgeting is that it eliminate all unnecessary spending but some household may difficult to definite the unnecessary things. They use to buy anything. In this article, I will explain how to create strict budget:
1. Recognize what you have spending last month. It could be a cornerstone of your budget. Have you record all of your spending. It will be better if we check our last three month spending as the cornerstone of our budget. We can describe the appropriate budget for us.
2. Decrease unnecessary spending such as holiday, leisure, goes to cinema, and others. Some people buy brand stuff that is very expense whereas some generic brand has similar quality. Do not splurge your money to those things. You can save the money into cash box or investing.
3. Not use credit card. Some people are tempted with credit card simplicity. They think that credit card can lower the spending. The credit card charge interest rate so it is impossible to lower your spending with credit card.
4. Limited the electrical use. Turn off the TV when there is no people watch it. Some family limit the TV hours so the children can study.
Use some energy saving electric such as TL lamp, save energy laptop, and else. You can use solar heater, for your water. It does need electric.
5. Some people can stick using car to trim down the spending. Use car when you need to go to some place where public transportation cannot reach it. If you want go to office, you can use public transportation such as train, tram, bus, and others.
6. Use some discount coupon. Some website offers free product for promotion. We may get a cup of ice cream, a bottle of ketchup, a bottle of milk, and so on. Some coupon also offers discount or rebates for certain product.
7. The spending should be lower than the income or revenue. If you find that the spending is higher than income, you have to revise your budget again. Trim down again some expenses until the budget balance. If you are difficult to cut the spending, you need to increase your revenue.

Wednesday, April 4, 2012

How to save our money in food?

Despite the bad crisis, we have to eat to support our lives. Most people are difficult to reduce the food cost; however, they can trim down some in food spending:
1. Planning before spending
It is better to notes what kind food that you need to buy. Do not go to the supermarket or retail stored without its notes. Most women are tempted with so many foods at the supermarket. They just grab and put it at cart. They forget that they should pay it.
With notes, a mom knows what she should buy. They just grab the food that is on the list.
2. Coupon or discount coupon
Some supermarket offers free sample product to attract a new customer. It is not much food that they offer but it could save little penny or dollar. Some company also offers 20%-80% discount for specific product. You can find the discount of the product at website, blog, facebook, or twitter.
3. Buy in bulk
Some groceries will give discount to anyone who buys in bulk. You can buy in bulk toilet meat, milk, and eggs. Do not buy in bulk fresh vegetable and fruit, unless you are sure that your family can eat all of it.
4. Buy generic food
Most food has brand that is usually more expensive than generic food. Buy generic food to trim down your expenses. Some generic food has good quality too.
5. Plant garden or create a backyard farm
Get benefit from wide backyard. Bury vegetables or fruit tree. You can harvest it when the vegetable or fruit is ripe. Some chicken are also good at backyard that can produce fresh eggs every day.
6. Consider use canned, dried, and frozen
My neighbor save goat meat at frozen for two month. The meat is still good and he cook goat Kari for us. You can also to consider frozen food. Buy the meat in bulk and put the refrigerator. You can also dried the meat with spicy that can durable for three months.
The canned food such as, fruit, vegetable, and salami is cheaper than the fresh food.
7. Buy directly from farmer
In my country, we can buy rice to the farmer directly. It is cheaper than buying rice at supermarket and groceries. We can save the supermarket or wholesale margin. In my country, the supermarket rice price is two times farmer rice price.
Perhaps your neighbor has plant garden or backyard farm. You can buy directly to them. I believe the price must be lower than supermarket or grocery.

Monday, April 2, 2012

Financial Planning for retirement

As the age become old, the employee should plan their financial planning. They must need money especially when the company retires them. Some retiree may need little money due their children has become independent but some parent may have one or two sons that need money.
Here is the retirement financial planning that retirement need:
1. Sell the big house and buy the smaller house. As you become old, your child will leave you and they may buy house for the family. There is some empty space that you do not need it. You can offers the big house to big family. I think you can save the excess cash for investment. With small house, you do not need to make maintenance.
2. Evaluation the investment. Most retirement does not want to invest at high risk investment that needs adrenalin. Invest at precious metal is also good to save their wealth.
Some retire does not afraid to allocate hundred percent of the portfolio to the stock that pay dividend. I think they must evaluate the portfolio due to tight economy. They can buys land, farm, cereal field, and else. Do not use one basket to bring your eggs.
3. Take side jobs that does not make tired. The retirement can collect little dollar from it. Some retirement cannot stand if they should stop working. My father has planted some cassava after retirement. He wanted to enjoy the retirement with some work.
Some retirement can open an online business that does not need capital and human power. The retirement can works for three hours a day.
4. They need to prepare where they live
A Village where there is no noisy may be good for retirement. The living cost on the area may be cheaper than in the city. You can save some dollar by living in village and breathe fresh air every day.