Tuesday, July 31, 2012

How to increase net worth

People try to increase the net worth that depict the wealth. Net worth is the difference between the assets and the liability. A rich man may not have high net worth if he or she borrow money to buy asset. Off course, the high debt makes the people or unwealth. Example, Mr. Jordy has luxorious car, and big house but he lease the car. Each month, he has to pay two hundreds dollar while his salary is only $ 2,500. Meanwhile, his neighbor Mr Jones has no car. He just got $ 1,000 from the business but he has no debt. He has paid the house previous years. Though Mr Jones salary is lower than Mr Jordy, Mr Jones has higher net worth.
The higher net worth, the more rich people. There are some ways to increase the networth:

1. Increase the asset
This strategy is good for people who cannot reduce the liability side. They should work hard to increase the asset side to balance the liability side on the right.
Increase the cash stream by working for other company, opening a business, selling stuff at internet, selling the stuff at the garage, and so.
You can also increase the house. Buy some house and hire those house to the renter. The renter can pay the rent expenses each month or each year.
Beside buying house, you can also buy other aseet to keep your value of money. Buy some productive asset to increase your networth. Some plantation or livestock can make you money. The plantation can produce fruit and cereal and you can sell it to the market.
2. Decrease the liability
This strategy is fit for someone who cannot increase the asset. They have to decrease or reduce the debt so it can lift the net worth. Try to decrease the useless liability such as plasma tv, luxorious car, and other.
Settle the debt as soon as possible. Use your asset to pay the debt with interest. The high debt decrease your net worth and it may reduce the asset. 
3. Increase the asset and reduce the liability
This strategy can increase your net worth fast. Surely, everybody can do it but the result may vary.  Despite you have much money, you do not spend it for luxorious things. They prefer to save or invest more money to make other money. As consequently, the asset may increase because the asset can generate money.
Our investment such as stock, mutual fund, or ETF price might increase. When we sell the investment, we will get money.

Thursday, July 26, 2012

How to become financially stable

Diversify your income
A man should have more than one source income due tight economic. We cannot depend on salary only that your company have not increased it year to year. Some employee save a part of salary to build a business with the friend or colleague. They can work for the business after working from office. It does not disturb their jobs in the office.
If you are busy, you can invest your money to reliable friend. They may share the profit with you. While, you are still working, your friend will send money to you.
Is it enough to generate income from two source? No, you can expand other source. You can buy some asset such land, car, boat, and others.
Get money from various income types.
Most employee get monthly salary that is derived from the boss. The high salary base on our contributor to the company. The manager level employee can get higher salary than the staff. The company also employ the expert with high salary.
Due to economic tight, some company reduce the employee. The employee who depend on salary will got nothing. They just receive pension rate. If the company are kind, they may give severance that can we use to find other jobs.
Speaking about financially stable is not complete without talking about spending. To reach financially stability, the people should manage the spending well.
The debt usually may affect the instability. When the interest rate high, we need more money to pay the debt. Allocate the money to settle the debt soon. If you have excess money you can settle all of debt. Perhaps, you will get penalty but it will enlighten you next day.
The increase of good also may disturb the financially stable. They can make flexible budget to anticipate the increases goods. There tips to reduce the spending such as buying in bulk, using coupon, and others.

Read Also:
Risk that can harm retirement fund
Stock Versus Mutual Fund

Why Financial Planning is necessary?

Some rich people hire the financial adviser to construct the financial planning for them. They realize that financial planning is necessary for them. They can plan to make the company great or live comfort after retire.

Here is why the financial planning is necessary:

The spending should be less than the income is the main principle of the financial planning. The financial planning can help us to manage our money. It helps us what kind money for spending or saving for any people.

The financial planning can estimate your financial needs in future. You may have some plan for future such as buying house, paying kid college, traveling around the world and else.
If you want make your dream come true, you can estimate the money you need in future. If you just an ordinary clerk, you must be difficult to make your dream come true.
In financial planning, we put the money not only in stock only but also other investment such as ETF, mutual fund, precious metal, and else. You are in high risk when you put all money at stock only or bond only.
Some financial plan as to diversify the asset to various financial assets or real asset. When the economic tight, they can buy more real asset such as plantation, cattle, chicken and others.
We need to set up the retirement when you have no long work. It can guarantee you to get cash stream when you have no salary. The financial planning suggest as to set apart of our salary for retirement. The amount of money that you save at the retirement fund will increase. It because the investment generate the revenue. If you have no retirement fund, you can invest directly to the some company. In future, they may fulfill your necessity someday. The financial planning explain the steps to go wealth with restricted salary that you have. It suggest you live in frugal though you can generate million dollars.
Big Expenses
What happen to us in future is unpredictable. That is why the financial planning is important to fulfill the big expenses. A employee may got sick after working hard, the child may need dozen thousand dollar for college fee, and so. Without good financial planning, the man could not fulfill the big expenses.
A good financial planning encourage man to prepare money fro big expenses. They should not worry about the big expenses.
Read Also :
Financial Planning for retirement
How employee makes money while they still works
Move to financial assets to hard assets

Tuesday, July 24, 2012

Golden Rule for Financial Prosperity

Every world citizen wants to financial prosperity. They try to work hard to achieve a financial prosperity. Here is the golden rule of financial prosperity:

1. Stream multiple incomes
The Salary or paycheck that you receive from your boss may be not enough for you. You can find other source to support your living cost. Some employee may find side jobs that they can do after arriving home. The blogging may be also a good ways to stream few dollars.
There is trend in my country; the younger employs prefer to stop working as the employer.
2. Shelter
People who are unable to own the house must be uncomfortable. They have to hire the house or apartment to other people. If the owner expels you from house, you can do anything. They have the house.
In my country, some rich man proud for their much house. They buy so many houses at different place. They rent the house to other people.
3. Vehicle
In Java culture, a man should have a ride. That is why the motorcycle is very salable in Indonesia where the most Java lives at there. They often use motorcycle leases. We just need $50 for down payment and we can pay the residual of the credit on three years. Using motorcycle is very economist. You just need a liter of gasoline a day. However, the motorcycle is high risk. Over 60% traffic is caused by motorcycle.
Having a motorcycle may be not enough for you. A good cheap car can bring you to office. You do not have to buy a luxury car though you have million dollars in your pocket.
4. Avoid debt or loan
A man should not ask the loan or borrow money from others especially consumer debt such as vehicle, TV, and others. If you want borrow to growth the business, you can consider it.
My business guru refuses the loan proposal of his student that require loan. He said that the student should sell the asset that the student had. He wanted to borrow the student if the student has no anything.
The student must be disappointed with my guru but he did what the guru said. He sold his asset such as motorcycle, cell phone, and others. After three years, his business has grown. He has a good car.
From this illustrative, my guru want to teach that we should avoid debt.
Read Also:
How Stock investor do when crisis?
Pros and Cons New House
How to live below your mean?

Monday, July 23, 2012

Why people fail to reach financial freedom

They have good jobs and they have much saving. They also contribute to retirement fund. They have done what the financial experts suggest. However, the people cannot reach the wealth or financial freedom. How about people who have no jobs? They must be suffered.

Here are some reasons why they fail:

1. Cannot get the right jobs
We live when the high unemployment rate is so high. The opportunity to getting jobs is low. Some people prefer to open a business rather than waiting the office asks them for an interview.
For unemployed people, they are difficult to save or invest because they have nothing. Some of them depend on the parent gives or they become homeless. They hope from people bless in street.
2. Adaptable
I saw so many businesses can adapt no matter the regime who lead the country. They are adaptable to any business condition. Either communist or democracy government, the businessman can earn high profit.
As the individual, we should be adaptable with the economic situation. The high inflation does not affect this kind man. He or she may replace the investment or saving that can earn profit in the inflation. They will change the business core when the inflation is very high.
3. Marketable skill
While some doctor cannot generate money, a teenager can generate thousand dollars in a month. In my country, there are so many young writers who have published dozen books. The young writer usually writes teen fiction.
If we have a marketable skill, we will not starve. Though you have no jobs, you can sell your skill to the company or other people.
Find that skill that only few people masters it. The people will find the people with skill.
4. Has no planning
Most people have no planning where they go. They are difficult to reach financial freedom because they do not know what they should do. They may be a high paying employee.
Set your planning today. Let say, you want a master degree or real estate for next five years. You will be motivated to gain the money. Set some part salary for master degree and real estate. 
5. Destiny
I do not blame the God that has made people poor. The man could not change the destiny no matter how hard they try. However, you should work hard to reach financial freedom. There are so many opportunity in the world. Do not be desperate to work until you get what you want.
 Read Also:
Personal Budgeting Concept
How to Make Your Child Rich 
Should I receive Less Paycheck

Sunday, July 22, 2012

How to avoid personal finance crisis

The uncertainty global economic is increasing. The Greek debt crisis has influenced the world economic. Some Europe country also suffer debt crisis such as Portugal, Italy, and others. The crisis may affect your personal finance especially the investors who invest the outside. They will loss:

1. Pay your debt immediately and do not propose another debt
Set aside your salary to the debt expenses. If you have more money, you should settle the debt immediately. Do not ever let the debt hang your neck.
The mortgage has caused some people poor because they cannot pay it. The credit card can cause the financial crisis. Some Korean people in financial crisis due to credit card. We have to better throw the credit card now.
2. Not dependent on your boss, your parent, you brother and your sister
In economic tight when the company may fire you, you should find other jobs to fulfill your basic need. You must be able to predict whether the company wants to bankrupt. If they late or do not pay your salary for month, you should be ready to find other company or other office.
Some people feel comfort with the parent. They think the rich parent will support him or her forever. That people must be unwise. If the parent needs more money, they should payback the money soon.
3. More save
It is difficult to save more when the good and service price multiply. However, you should save more to anticipate the crisis. Saving money does not mean we save the money at bank or certified deposit. This investment is not profitable today. Saving at bank may guarantee your money but it cannot protect the value of money.
That is why, people save their money at gold or silver. The gold and silver price is skyrocketing at last year. I am also worry that people will hunt the gold so the price will be unreliable.
4. Emergency fund
The emergency fund can help you to finance your living cost in short time or six month. It depends on the amount of emergency fund. This fund helps some unemployment while they cannot generate salary. The unemployment must need transportation cost to apply new jobs. They also need paper and envelope for applying a position in the office. 
5. Find some free
There are some coupons in internet or newspaper. Use the coupon to cut your spending. You may just get a gallon of milk, a slice of pizza, a con of ice cream but it can save few dollars.
6. Change your lifestyle
The economic is tight, you have to change your lifestyle now. The generic product is better than the brand product now for you.
Read Also:
Protect you from High inflation
Pros and Cons Budgeting Your Money
The Benefit Of Owning the stock

Saturday, July 21, 2012

Financial Advice for teenage

A teen also needs financial advice too even they have not yet generate money. They may not know about finance or money because they have no jobs unless special teen who work as the artist or celebrity, such as Justin Bieber. Though the teen has no paycheck or salary, they should manage their money well. The parent should advice the kids so they can manage money when they grow up. Here is the financial advice for teen:

1. Budget
A teen that have able to calculate the number and graduate from mathematics subject must be able to create a budget. They can use a piece of paper or they can use spreadsheet. I believe the teen spending is not much as the mature spending. Perhaps their spending is just transportation cost, lunch, toys, and others. Most teen spending is paid by their parents. 
Remember what you spend last month and what will you spend next month. This is not difficult for the child to record the spending.
2. Frugal living
Do not ask your mother or father to buy the expensive gadget and toys like your friend? Your friend father may be a success business that has million dollar in stock while your father is just a clerk. You just need a simple phone to connect with your friend or you may need a notebook.
As the teenager, you do not need own car. It needs service and maintenance. You can use bicycle to go to school or the school bus.
3. Saving
Your mother gives $ 100 per month but you do not spend the entire of money. You do not need to back to your mother. Keep the excess cash to your cash box. You may need the money when you grow up or you can collect it buy games, software, baseball card, and other.
It is better to buy the toys with your money than asking to your mother.
4. Try to find little pennies
In my country, a couple kids make English course games. The games can help the foreign English to learn English fun. The kids generate royalty when they young.
Why do not sharp your skill when you are young? You are young and your parents support you with money. They also allow you live inside the house.
Some kids offer the service to the neighbors. Mowing the yard is not a bad idea. The neighbor may like what you do.
Read Also:
How to teach your kids Money
How to cut college cost
How College Student Makes Money

Friday, July 20, 2012

How to generate money when you are between jobs

When the company decides to fire you in order to efficiency, you should make the step to find other jobs. Finding a jobs need time. Sometimes we should wait other jobs for years. Surely, waiting jobs is not a good activity. It makes you sick and wastes your times. Here are some activities that can make money while you are between jobs:

1. Find part jobs
Some people may offer mowing yard to the house that have large year. Perhaps the owner will be kind to you and give little dollar to you.
Visit the veterinaries near your house. He or she may need assistance to hold the cat or dog. The veterinary may need someone who wants to bath, sit, and walk with dogs.
2. Surf the internet
Some people dream get thousand dollar from blog or website. This a internet era where people can sell or buy through online. If you have no much money, you can sell other website stuff such as Amazon, eBay, and else. You can get 4% each you can sell the stuff.
There are some website that offers little dollar. Five dollar that you can get from the internet may be useful for buying some bread, milk, cookie, pampers, and others.
Some survey also pay you little dollar. It is not difficult to do that. You just choose or select the option.
3. Garage Sales
Having some useless items? Why do not you sell the items? It is better than let the items damage at your garage. Perhaps your family saves some antique stuff at the garage. Save the money from garage sales for food or transportation cost to find new jobs.
4. Volunteer
There are some non Government Organization that seeks the volunteer. You may work as volunteer to get paid five dollars a day. It is not much but you can get benefit by working as volunteer. You can add your volunteer work on your curriculum vitae or your portfolio. The company may appreciate the volunteer than unemployment.
5. Open a business
It is not wrong to start the business after the boss fire you. Old age is not a reason for you to stop trying. Why do not you start business from your hobby? Perhaps you have some toys or train.
Use your saving to open a business. Perhaps you will be success with business. Some people can be success after the boss fires them. Now, they have own business and employ some people.

Read Also
Protect you from high inflation
How much money for emergency fund
How employee make additional money

Wednesday, July 18, 2012

What you should have to stream multiple incomes?

I imagine receive dozen dollar from a blog. If I create dozen blog, I will receive hundreds or thousand dollar. I also create the book. I have dream to have multiple income from multiple source. I also have planned to build income from selling chicken pet.
I am sure the people will have same dream with me. Stream multiple incomes from various type of income. However, It is not easy to realize it. Not all people can stream multiple income recently. There are some difficult to build multiply income:
1. Need money
When you build the various real assets or invest to various stocks, you need much money. For the limited money, they can start from little money. They can create online shop that needs little capital. Blogging is cheapest ways
2. Need long time
No one can stream the money in second unless you cheat people. Streaming income needs long time. My friend builds blog for one years and he just get one dollar a month. After three years, he got hundreds dollar in a month.
3. Patience
Most people are impatient people and they are easy to give up. You should work hard to stream multiply income. Working from 9 to 5 is not enough to care all of your business. Some people add the work hours to generate the multiple incomes.
Some people is not patience in build multiple income. They often move form a business to other business. They have no stand to build a business. For example, the last year, Mr. Armor built a donuts Cafe near the apartment. Mr. Armor could not generate the revenue because the visitor is not much. Only few clerk who bought his donuts. Today, he opens a gadget store but the buyer is little. In a day, only two people buy the Ipad. He thinks to change the business.
Mr. Armor is impatient man. He is better to not to close the donuts cafe. He should try hard to

4. Management
Streaming money from various incomes mean managing the income source. You have to control the various income sources. When the stream has stopped, you have to improve the flow. Perhaps your man has made some mistakes or they forget to sell your product.
You have the ability to manage human and resources or you can delegate your business to reliable people. Surely you should pay them.

Tuesday, July 17, 2012

Preparation for employee who wan to be free lancer

The employee who want to shift to freelancer has to make some preparations. They may adapt with new jobs that is different with previous jobs.
Here are the preparations:
1. Mental
Most freelancers do not get salary from the company. The employee who are use to receive salary must be confused.
The new freelancers should adjust a new budget that is different with previous budget. The new freelancers should sacrifice to cut some "Unnecessary" spending. When the freelancers generate more money, they can adjust the budget again.
The freelances who have married with children must tell the wife and children. Some wife may refuse the freelances husband due his unstable salary. If you are able to persuade her, She may allow you to become freelancer.
2. Promote yourself
Tell your friend that you are an expert. I have offers accounting service to my friend on facebook. Even he did not respond my offering, some facebook friend reply the wall. I believe they will use my service someday.
Most businessman also create business name card and spread them to friend or colleague.
The card name has company logo or brand. This is a way to promote yourself. It is not expensive to create card name. There are microsoft publisher that assist you to create a name card.
3. Create a schedule
A Freelancer does not mean you can work whenever you like. You should create schedule so you can work well. The schedule make you different from unemployment.
Set the target when you finish the project. Let say you write three hours a day. The remain five days is for reading, promoting the blog, making photo, and else. A writer should read the book or surfer at internet to enrich the knowledge and insight.
4. Optimize your blog and website
The blog can be a good place where you can display your jobs and project. Some good website has some company profile that describe the company well. Add some company that has used your service. Surely the visitor want to know where they can contact you. Add some telephone number or cell phone to your website.
Provide the guest book so the visitor may ask something about you. Perhaps they want make sure that you are the expert.
5. Find the mind-like friend
Use social networking to find mind-like friend. They may give some useful feedback to
Perhaps they need your service to make something. You can charge consultant fee to them.
 Should I receive Less Paycheck
Some Freelancer are tricked
Pros and Cons Work as Freelancer

Monday, July 16, 2012

Benefit Passive Income

While you are sleeping, your asset increase. Some people from other side of world pay for your service or your goods. The passive income may add your income to fulfill daily necessity.
Everyone who has so many passive income must have some benefit like this:
1. Children
Some mom who has generate much passive income prefers to stop working. They want to raise their child by herself. Care the children seize all day. It is impossible to raise children while you are working. Some mom prefers hire baby sitter to raise the baby. Surely, it is not good because the children do not recognize the mom but the baby sitter.
2. Health
Some people can work for twenty hours. Surely it is not good for health. The worker can get heart attack at the young age. The man should be balanced. They man should work but they must take rest too.
By having passive income, you can take care of yourself. Do some exercises to keep your body health. Most employee cannot do some exercises because they have to work at the office.
3. Hobby
You can do some hobby but you still receive money. Some employee cannot take care of the chicken at the backyard because he or she should work all day. On the other hand, we can take care of chicken when we have income source.
Surely, you can stream some money from hobby. Sell the collection that you have. You can also breed cat or rabbit in your house and sell to the hobbyist. 
4. Volunteer
While some people need other hand, we can also help people to raise them. We can help them to build new house after flood. When you help people, you will be happy.
Some people prefer to works for unlucky people. Even they do not need money, they family still need money for live. By having passive income, they can work for some foundation or charity.
5. Travel
Have you visit great wall in China. Most employee can do because they have to go to office. They also have no money to fund long trip to China.
Only man who have much passive income can go to there. There are lot place in the world that you can visit.
We should use the benefit well. The man who has passive income does not mean he or she feel comfort and feel satisfy. 
read also :
What is Passive Income
Stay Positive in Tight Economic
Pros and Cons Work as Freelancer

Sunday, July 15, 2012

The Benefit of being financially stable

When we want to office, we use a car. When we are going to home, we have a comfort house that shelther us and our family. We can buy anything when we are in financially stable. Even bad economic cannot affect the man. Though money cannot buy everything, some benefit that you will get when you are in financially stable, such as:

1. Peace of mind
Some people whose has abundant money cannot get peace. However, most people whose has no money often difficult to fulfill daily necessity. They think on how to fulfill they need everyday. Sometimes, they owe money to people or bank. Surely, they must payback the loan with interest and it make them unpeace. Perhaps the debt collector often ask you to settle the debt fast because you have delay the payment. The bad news is they can seize your house whereas it is only your house. You can be a homeless people who live at the street or under the bridge.
On the other hand, the people whose has financially stable does not need to owe money. They can use the money to fund the kids college, buy car, buy house, and else. They know how to manage the income and the expenses well.
2. Independent
Some bad man often persuade the poor people to do something bad. The bad man said that the poor man will get some money if they help the bad man to stealth the armored vehicle. The poor man will do what the badman order because he does not have money. When the police arrested them, the police will not release you due your lack of money.
On the other hand, the financially stable can decide their attitude. The other people cannot change their mind. They are independent.
As long they use money wise, they can be wealth. They can have a good jobs, house, car, holiday, and else. Those needs need more money. They have sufficient food at home and they also share their luck to unlucky person.
The crisis cannot affect the financially stable man. They still can generate the revenue while some people struggle hard to find dozen dollars.
4. Help Others
When you have financially stable, you can help other. Some of them build a business that need the employment. They often recruit fired employee from the neighborhood. The employee can get month salary and they can pay for mortgage, and other debt.
How to Make your Children Rich
How the stock investor do when crisis
How to live below your mean 

Saturday, July 14, 2012

How retiree make money

Some people are afraid to hear "retirement" word. They are afraid that they can earn money like they works at the company. Some old man are stress hear the word while they must fulfill the daily necessity.
In my country, the social security does not work. Most employee do not receive the retirement when they retire. The worker must be work hard. Some of the retirement sale cigarettes or candy inside train or bus. If the police get them sale in train or bus, the police will arrest them.
I think the retiree have to prepare to generate money especially who has no social security or insufficient retirement fund. Here is the ways to generate money for the retiree:
1. Find Freelancer
The retire people are tired to work again. That is why they can work as freelancer. They can use the knowledge and experience when they work at the office. It is not a difficult jobs for them. 
Some freelance jobs can pays $ 12 dollar for every hours and you can earn almost thousand dollar in a month.
2. Adjust the investment portfolio
Most retiree is the risk avoider investment. However, they may try invest at the risky investment to gain the revenue. Investing at bank account or certified of deposit is not good today. The interest is low and it could not protect you from high inflation.
3. Become landlord
Hiring some of the land. If you have many lands, you can hire to other people. Some people may use it for the crop field or farm that can generate revenue. You may share the revenue with the farmer. I think it is more profitable than charge the rent fee. This joint cooperation is also fair. When the crop yield increase, you will get more money and reversely.
If you have no land, you can hire the empty room for university student or worker. The cost of the room is about $ 400 a month.
4. Find smaller house
Some expert suggest to resize your house size when you retire. It could thrift some spending too due its small size. It does not need the expensive maintenance. The tax of small house is lower than the big house.
5. Make business from hobby
Most retire have time. They can take care the hobby. For example, an employee who loves cat can open a cat breed or pet shop that produces beautiful cat. A cat price could reach hundreds dollar. If you can sell 10 cats in a month, you can earn $ 1,000 in a month.
Some retiree can open a backyard farm to produce chicken and eggs. Buy a rooster and six hens and place them at your backyard. You can get four eggs a day or 120 eggs in a month. The organic eggs in Amazon is one dollar a pieces. You can get $ 120 in a month.
Read Also :
Financial Planning for Retirement
Risk that can harm retire

Friday, July 13, 2012

How to budget to saving

Due to high uncertainty recently, we should create a budget to saving. There is high possibility that some company may fire some employee and it may be you. product price could increase over many times that you can guess before. The cereal, meat, eggs, fish and other food could increase that load the family. If they save money, they can overcome the bad situation like that.
We are should save to side the uncertainty. Create a budget to save is a first step to save your money. Here are the steps to make budget:
1. List all your spending every month. My mother used to record the spending in book or notes book. There are spreadsheet that can be used to list all of our spending.
There are the spending types, such as monthly spending, and yearly spending. For yearly spending such as taxes,vacation, college fee, and others, you should divide the amount money with the amount of month in a year. It makes your spending smooth.
Trim down some spending if possible. It can save your money. The rule of thumb budget is that spending is 60% of our income. However, for the employee whose has little salary cannot apply the rule of thumb.
If your spending percentage is higher than 60%, you are better to reduce the spending. A mom should clever to reduce the spending in tight economic. They can limit to buy grocery, buy cloth, or some else. Why do not use some generic brand to reduce the spending. There are lot things you can do to reduce the spending.
2. List all of your income.
Most employee has salary from their boss. Record how much salary that you can receive from the office.  Do not forget to include the bonus and other tips from the office. The employee work hard until night right to get more money. 
If the employee has other source income, they can include those income. The other income may help people to save. The excessive money we can use for spending and saving.
3. Allocate the money for saving
Saving is the spending today because it can reduce your money in wallet. However, the money just shift to other place such as cash box, precious metal, stock, and others.
Some people said that we can save 40% of our income. For people who earn little salary, they can reduce the percentage of income and reversely.

Read Also :
Disadvantages of Budget
Pros and Cons Budgeting Your Money
What is Passive Income 

Thursday, July 12, 2012

Top Financial Planning tips

While you create a financial planning, you should notice this tips. These tips can help you to create good financial planning tips.
Stream Income
People should be able to generate cash. They should work and do not just wait money from other people. You can work as employee or you can open a business. No matter what your jobs, you should generate money for you.
Multiple incomes is better than one income
Having multiple incomes can lift your wealth. You can still work at your office and receive the passive income from business, book, software, and others. You do not have to work hard after you can get passive income.
Avoid debt
At the time high interest rate, you should not propose debt because it can load you. The debt may decrease your income stream because you have to pay the debt first. You should also stop the credit card. Some credit card company wants to choke your neck.
Living Frugal
This is the most famous of financial tips. My nephew did not eat enough for couple month. He collect penny by penny to open a store in her house. Surely, you still eat to make your body health but do not overindulgence.
Spend less than income
Some employee who earns $ 5,000 still cannot fulfill their living cost. The employee spends their money for indulgence. He does not think about the income.
Set aside salary and paycheck to saving. Ten percent is enough for saving portion. If you have less income, you can decrease the percentage. If, on the other hand, you have so much money, you can increase the percentage.

Investment is good for your future. You may use it to for future living cost. Your money in investment will grow or multiply. You just receive the profit from the company that you invest the stock at there.

Do not put asset on one basket
It is too risky to put your money on stock basket whereas the stock is high risky investment. Invest your money to other investment such as mutual fund, ETF, precious metal, gems, and other. When the stock decline, you still get benefit from precious metal.

Emergency fund
A man supposedly has emergency fund that they can use when they have no jobs. This fund is important to support our lives. We do not have to borrow money to others or ask someone to fulfill our living costs.

Prepare for retirement
An employee should determine when he stops working. Some people prefer retire at 40 because they want to raise the business that generate more money.

Wednesday, July 11, 2012

How to manage finance when you are between jobs

Some company prefers to shutdown its factory because they have no money again. As consequently, they must fire the employee. The Employee must not receive the paycheck from the company due they have stopped works. It is a difficult time for employee to manage their finance. Here are the steps to manage the finance:
1. Use the emergency fund. If you have the emergency fund you can use it as the cash flow of your family. Some family may provide cash for three month, six month or twelve months in advance. If you provide more money for long term it is better.
A man supposedly has emergency fund especially they know that the company will bankrupt or the company will fire them.
2. Trim the spending
You have cash flow again. Trimming some spending may not generate money but it can save your emergency fund. Do not eat out again. Prepare the dinner is cheaper than eating out.
The cloth is also a high spending for some family. They want to have a good look. Buy some generic cloth can reduce your cloth spending. 
Use some coupon to reduce your food spending. Scissor the coupon from newspaper and magazine. There lot coupon on facebook. The company facebook group promotes some sample product that you can use.
3. Generate money from other source
Being unemployment does not mean you are not working. Find any jobs that can generate money. Being volunteer may be a good idea. Generate five dollars a day may be useful for you. Some Non Government Organization may give you lunch at the middle day. Therefore, you can thrift some spending.
Surf in internet. There is lot information about freelance jobs. If you have skill, you can generate dozen to thousand dollars.
4. Adjust your investment portfolio
Evaluate firs your investment portfolio. If it can give you the money, you should not withdraw it. Use the revenue to support your live. If we have no jobs and we have no money, we will withdraw the investment. It is better than borrow money from others. You can withdraw or cash some investment for productive things for example business.
Change the risky investment from your portfolio or you can withdraw it as emergency fund. If you have a business idea, you can try it. You should know that business is risky too.

I hope you will get jobs again so you can stream the income again.

Read Also
Protect you from high inflation
Pros and Cons Budgeting Your Money
How employee make additional money 

Tuesday, July 10, 2012

How to make money by not selling anything

To generate money, people must sell something either stuff or service. An mechanic can get paid after repairing other people vehicle or machine. An ice cream shop can get money after the child buy a con of ice cream. However, the are some things you can do to generate money without selling anything.

1. Articles
Create 400 word articles or 1000 word articles. There are someone who want to pay your articles. The blogger or website owner that have not time to write the article. As the native, you can make an article in twenty minutes. Let say, the article price is one dollar. You can make ten bucks if you can sell ten articles.
Offers your service to other blog or website. They may be attracted with your article.  Alternatively, you can find people who want your article at guru or elance.
2. Paid To Click or Paid to Read
You should not write article. Just read article and click the ads. You will get $ 0,01 each clicks. Unfortunately, most PTC is scam. The website (ptc owner) want to collect money from people who click the ads.
I have ever tried but it make me sick. The article at the website is the junk article. It well write but there is few knowledge. The payment is also low. We can withdrwaw the money after seeing 1000 articles. However, the website limits the ads that we can click up to five times only a day.
3. Paid to Survey
Some researcher want to research a subject such as marketing, politic, communication, finance and others. The researcher may give little dollar for it. It does needs hard work to do that. Answer the question that has been provided by the researcher. You just cross the option or answer the question with few words.
4. Affiliate marketing
Some people can sell other stuff on website or blog. It may not easy to collect dollar from affiliate marketing; however, you may try it. Create a good blog or website that has high traffic. You can use social networking such as facebook or twitter to generate money. The visitor may click the link and buy the stuff. Some blogger can generate dozen to thousand dollars from this way.
Making money by selling anything does not provide many options. Therefore, you are better to find money by selling anything that you have. You can sell your idea in the shape of proposal, book, e-book, blog and others.
How to make your child rich 
Should I receive less paycheck 
How college student make money 

Collectible investment character

Some rich people or great man collects unusual goods as their fan. They dare to spending million dollars for the collectibles and they also dare to go everywhere for hunting collectibles. There is a satisfaction to see the collectibles in leisure times. They also are pride to show the collectibles to other rich man and colleagues. The Rich people collect some collectibles and antique things such as art, coin, painting, stamp, baseball card, basketball card, ring, and others. These things can be an investment like other assets. However, you should know the character of collectibles. Those collectibles character like this:  No one know the value exactly Collectibles is different with the gold price. People know that a troy oz gold is around $ 1,500 but they do not know the price of collectibles gold coin. The gold collectibles usually more expensive than the common gold coin. The old gold coin has historical value.  For example, I will not pay a babe Ruth basketball card even for $ 1,000. I am not a basketball collector and I do not know what baseball is. To me, buying a basketball card is not profitable investment.   Not Liquid  The collector cannot sell the collectible anytime like selling stock or ETF. The collector should find the right buyer to get the right price. Only crazy collectors who want pay your collectibles over many times. Alternatively, you can sell through bid house. You have to pay to the house first. Perhaps the rich people will buy at the bid house. On the bid house, the rich may buy the collectibles high but sometimes they buy cheaply.   Alternatively, you can sell the collectibles on online such as Amazon or eBay. I saw there are so many collectibles on eBay such a coin, stamp, art, and others.  This is the weakness of collectible investment. That is why rich man should not put all money to collectibles.   Few demand and market  Only rich man or antique shop that want to buy the collectibles. There is few collectibles market.    Long time investment  Collections is a long time investment that can generate revenue for long time. If you save for long time, it prices could be multiply over many times. This investment is not suitable with common people who want short term return.   There are so many fake collectibles
A bad people often imitate the collectibles to get much money. The imitation process is sophisticated so the collector often are fraud. 
Fragile  The collectibles often fragile due it is old. The collector should maintenance the collectibles. For example, you should polish the coin.

Monday, July 9, 2012

How to budget when you are broke

Some people has been broken due to the uncertainty global economic recently. Naturally people will cut some spending to keep the budget balance. It is the easier option due it does need money. The broke people should consider increasing the revenue.
Here are the steps to budget of your:
1. Decrease "unnecessary" spending such as cinema, cable TV, magazine subscriptions, eating out, and else. You can read news at internet that is free.
2. Decrease your saving post
Saving is good for your future. You will need the money for your kid school or university. However, you need more cash to other important budget post.
3. Prioritize on bill
Do not make your life more difficult by delaying the bill. Pay the bill such as water, electric, and gas. You must be difficult when the electric company shut your electric.
If you still have mortgage debt, you need to pay it or the interest will increase and it is load you. The floating rate interest rate may not good for you.
4. Find other income sources. Be creative people by finding income sources such as blogging, writing, become a volunteer, and else. Some people can get dozen, hundreds, or thousand dollar. Do not just cut your spending but you have to increase the income side. 
5. Go to anywhere with public transportation
Being broke, you do not have to own car. Go to anywhere with bus, tram, subway or train that is cheaper than driving the car.
6. Create a tight budget
Trim down some expenses that you can do.
7. Negotiate your credit
Send the letter to the bank or financial institution that you owe to them. The letter content is the proposal to negotiate your credit. Explain that you are broke and you need low interest. It might be difficult to ask bank to reduce the interest due the bank is also difficult to get the profit. Some people also propose for interest cut. However, it is not wrong to try it.
8. Stop leasing or credit
If you have lease car, you can stop the lease. Alternatively, you can ask lease transfer to whoever need lease car.

Read Also :
Personal Budgeting Concept 
How to create Strict budget
Disadvantages of Budget

Saturday, July 7, 2012

Why budget fail?

Some people cannot use the budget well. They still can manage the money well. At the end of month, the actual spending is higher than the actual income.
The aim of budget is to assist people to manage the stream of money. With the budget, we try to live with restricted sources or money.  Here are some reason why budget fail:
1. Missed in spending computation
Some budgeter, the people who make the budget,  cannot compute the actual spending well. They have forgotten to include some spending in spending section. Perhaps, they missed some uncommon spending.
The yearly incomes such as taxes, house rent, property rent, and else are recorded in January only. It makes the spending volatile. The budget creator should divide the yearly spending with twelves. Each month you can write the spending.
2. Spending Miscalculation
The over optimistic income that is recorded in budget could make the budget fail. For example, The budgeter believes that they receive royalty $ 1,000 in a month whereas the last royalty is only $ 900. For uncertainty income, we cannot except the higher value. Record the lower value for royalty such as $ 800, $ 700, or lower.
Sometimes we receive yearly income such as property rent, consultant fee and other. We must divided it into 12 and record the result each month.
3. Undisciplined
Some person often buy more stuff and ignore the amount spending that he or she have been recorded in the budget. They have been tired to make budget but they ignored it. The extravagant people often spend more money and they do not want to change their lifestyle.
If they want to buy the expensive cloth, they have to computed the income before Is the income can cover the lifestyle?
4. Not Flexible.
The budget creator is inflexible. They do not tolerate the increases of product such as food. They still cut the food spending so they just buy fewer food. Surely, It makes the budget fail. The family will be strave due its insufficient of food.
The budgeter should be flexible to increase the spending if it is essential. They can trim down the spending by using coupon.

5. The software damage
The damage software can damage your budget too. Be sure to make the good budgeting software. If you cannot make software, you can use simple spreadsheet such as Microsoft Excell or Linux. There are some online spreadsheet such as Google Docs and Zoho Write.

Read Also:
Disadvantages of Budget
Pros and Cons budgeting your money
Financial Planning for retirement

Friday, July 6, 2012

Disadvantages of budget

Most financial advisers suggest us to create a budget that help us to control the spending. People can set how much spending for next month. They will spend any product and services that they have write before in the budget. Some people are success to decrease their spending with budget. They can save excess budget to piggy bank and then invest it at capital market.
However, the budget has also some weakness that we should know:
1. Budget is not flexible
Each people has different financial behavior. Some people cannot guess the next month spending. They just write the last month spending but they do not consider other things. Next month, they just buy what they have written on budget while they need to buy something else. It is not good to delay the spending while you need the things immediately.

2. Waste the time
For some people who does not have finance knowledge, they may confuse to build a budget. They may forget to record all of last month spending. As consequently, they always improve the budget every month and it waste time. Next month, the spending may also change so it must be changed again.
You should record what you have spend and what you have got every night. at the end of the month, you should  compute all of it and compare the budget. If your spend more than budget, you have to decrease the spending or increase the income.
If we have missed to record the spending in a day, the record will be fail. We must start to create the budget again and it takes time. 
3. Safe lifestyle decrease your lifestyle
Certainly, your lifestyle will decrease due its budget. We have thrift our spending and delete some "unnecessary" spending such as vacation, clubbing, and others. For some people change the lifestyle is rather difficult. They have to spend "unnecessary" things for their business. They may loss the client or business when they change the lifestyle.
4. Mismanaged life
Some budget creator is not able to allocate the most important things in their life. They spend the money to daily necessity only. They forget that they have to save for future. They may allocate the money to investment or saving.

5. incomplete planning
The budget is not complete and it is short sighted. The budget does not consider the future due it use the previous spending data.

6. Budgeting needs money
Some people ask financial planner to create the budget. As consequently, you have to pay the planner expensively.The financial planner is the expert who can create a good budget for you.

Wednesday, July 4, 2012

Protect you from high inflation

Some Asian country has high inflation. Inflation is a economic condition when the goods and service price increases. It makes the money weak. We must provide more money to buy the same things. For example, last year, you can buy a cup of coffee for $5. Today, It price is $ 5.5. The coffee price increases up to 10 percent.
Certainly, you have to provide addition cash flow. Most people prefer to cut "unnecessary" spending to keep the live. However we do not have to cut the spending if we can anticipate the inflation. Here are some steps that you can do to protect you from inflation.

1. Buy gold or other precious metal such as, silver, platinum, palladium, and else. Gold are believed as the most stable commodity in the world. No one can manipulate the gold price due it is rare and important. In this year, the gold price is skyrocketing.
We can sell the gold anytime especially gold bar. If you want to buy gold, you can use 5% to 20% of your portfolio.
2. Pay the debt off
As the consequence of inflation, the bank or other financial institution will increase the interest rate. The debtor must be hard to pay the debt off due to its interest rate.
Use cash rather than credit card. The credit card company also charge high interest to the holder. 
3. Cut some spending
This is the most ultimate to face with high inflation. You can use coupon to cut your spending meal or pampers.
Buy your meal, meat, and vegetable in bulky at grocery store. By buying at grocery, you can get discount. You do not have to the market often and it can thrift your money. Place those foods at your refrigerator for weeks. However, some food such as vegetable and fruit will be wilted in few days. Some vegetable also will be dried in a week.
4. Buys some defensive stock
The defensive stock still give you return no matter the economic condition. Shift some risky stock to defensive stock. Certainly, you should not put all money at the defensive stock only.
5. Buy actual product
I have ever bought a scooter for $ 260 in 1997 when the crisis beginning. After graduated from bachelor degree or 2003, I sold it for $360. I realized that I cannot get benefit from the scooter but I have protected my money from high inflation.