Sunday, June 30, 2013

How to stay debt free

When we have so much debt, we must be worried. The phone ring often and we do not want lift the telephone up. It must be from the bank or credit company card that asks us to pay the debt down. 
That is why; we should be always debt free. Another reason to stay debt free is the cost of the debt is high. We should pay the principal and the interest that may increase in the future.
The first step toward stay debt free is to know your financial goals. Each people know what are the most important things for them. Write the goal that they can reach in short term, middle term and long term. The goal helps you to manage your money. You know very well where you spend money to some posts. On the other hand, if we have no financial goals, we spend he entire money fast. 
Second, you must build an emergency fund. Allocate six times your monthly spending that you can save at liquid investment. We can use the money when we need the money immediately. Some people use the money when they got fired. They do not have to owe money from other people or bank.
Three, do not owe other people’s money. The ultimate ways in staying debt free is not to owe other’s people money. Settle down soon your liability. The debt may increase your monthly spending. Without debt, you can save more and use the money for other purpose.
Sometimes people need debt to buy the big things such as house due our salary may be not enough to buy the house. The mortgage may help us to get the money however you should not use mortgage if you are not sure you can settle the mortgage. Some people buy mortgage but hey do not consider the money.  A person who want buy mortgage must be able to fulfill daily needs, paying bills, and other things.
Do not think you will settle the debt when you add the debt. Some people use credit card to buy mortgage. In my opinion, by using credit card you make a snow of debt that will crush you. You should increase your income before buy the mortgage. There are so much you can do o increase your income. You can do some side jobs or you can be a freelancer.

Tuesday, June 25, 2013

5 ways to save when staring a business

It is difficult to starting a business because we should provide so much money. We spend money as the capital of our business; however, we can trim down some spending by do like this;
1.    Do not buy car
Most business needs car so we can meet the client fast with the car. We do no want to arrive late to meet the client. The client will not be happy with your late or they will not want to meet you again.  We can also pick the product from the factory fast. Unfortunately, the car is expensive and the cost of owning car is also expensive. You are better to used mass transportation such as train or bus to go everywhere. If you are afraid late, you should go early. You are better wait the client rather than client waits you. The client must be respect you if yu arrive in time.
2.    Use Open source software
There is so much open source in internet and you can download it free. Those open source may support your business such open Linux Operating System.  We can create the document by using open source word processors; we can create some slide by using open source; and else. We can also use wordpress to create our blog and website. Some great website uses the wordpress.
Buying software is not cheap. You should spend hundreds or thousands dollars.
3.    Buy used furniture
New office must need furniture such as filling cabinet, desk, chair, and other. You can find the used things to buy furniture or you can find the used furniture at flea market.  Negotiate to the seller to get the rebates. You can also check your warehouse perhaps you still have used furniture.
4.    Use the recycled
You have better to use recycled better which is cheaper than white paper. Use the refilling ink rather than buying the cartridge. The quality of the refilled is equal to cartridge ink.
5.    Do not buy the things you do not need
When you start a business, you must be temped to buy anything. Perhaps you wan to buy the painting for the office or flower vas. Those items are not important for your office. If you have much painting that you save in warehouse, you can use it or you can use your mom’s vas that she may not like it.
6.    Use free room
You must need at least one room as your office. Use a free room such as your empty room or garage. When your business grows, you can buy or hire a good room for your office.
Read Also:
Five Ideas to boost Income
How to budget when you marry
Five Things About Loan

Monday, June 24, 2013

5 Mistakes in Grocery shopping

We must go to grocery shop periodically to buy food and some needs unless you eating out. There is so many products at grocery that often attract us. The grocery’s owner arranges the product to attract the consumer. The products looks talk to us and said buy me, buy me.
1.    Buying brand names
The brand names must be more expensive than the generic items. People think that brand name’s quality is better than the generic. Actually, some company produces either generic or brand names. The different of the product is the packaging only. I believe you will n buy he packaging if you know it.
2.    Not List
Before go the grocery sore, you have to prepare the list. Write what your want to buy at a piece of paper. You may need to buy bread, meat, vegetables, milk and others. You should also calculate the price and sum the total.
Without list, you can make impulse buying and you may waste the time. We may forget to buy the items that we need. We walk around the grocery When they are coming home, they buy some items that they actually do not need it.
3.    Bring Credit card to grocery
Credit card with no limit must tempt you to buy more and more. You are better to buy cash to brake the spending. Bring enough cash as you have calculated at the list.
4.    Not use coupon
I think coupon can save some dollar. There are some free coupon that offers 100% free product such as new ketchup, a small bottle of soda, a small pouch of detergent, and others.  Some coupon rebates up to 70% for a milk, meat, meat ball, fish and other. Some other coupon adds the quantity of the product. For example, you can get one if you buy one (buy one to get one free (BOGOS))
We can get the coupon from the local newspaper or internet. Clips the coupons and take them to the store that you can use the coupon.
5.    Buying Too Many perishable items
Do no buy too much vegetables and meat due it is perishable. Though, you have good refrigerator, the green vegetables will be dried in a week. You cannot cook dried vegetables and you will not eat it. Your child will not like the fruit that you save in refrigerator more over the meat that you have saved for weeks. The smell and the taste must be bad.
Some people buy to much perishable because the discount or rebates. They buy, for example, five bottles of milk because the price is same to two bottles of milk. You should not use the coupon for perishable income unless you have big family. 

As long you do not make some mistakes, buying grocery can save money.

Wednesday, June 19, 2013

Three steps to construct a good financial planning for beginners

Every people supposedly has financial planning as a guidance to manage the money. It is not difficult to makes the financial planning. Seek out the information about financial planning from the book, magazine, internet and else. You can read the example of the financial planning. You can adjust it with your financial condition. Do not use the sample because it may be different with you.
Each people are different. For the rich people, they can spend so much money but for poor man, they should keep the penny.
Here is how the beginner can create a good financial planning:
1. Setting the goal
The first thing that you should do is to set the goal. Each of us is different and unique. We have different mind in setting the goal. Some one want to become the doctor, some others want to become a pilot. The different goal means the different ways to reach. A man who want become a doctor must provide more money than others who want to become a pilot. Studying in doctor need more money and time.
The goal should be fit to the financial condition. Do not dream of become a very rich man, reminding you just ordinary people. You will be difficult to make it come true. As an ordinary, we can set the goal to reach wealth. We can find the job at an office. Alternatively, you can open a business to get the money. Sometimes opening a business is better than getting a job.
We can setting either short term or long term goal. Short term refers to the goal that you can reach in short term, such as, buying gadget, paying the short term debt and else. Surely, you should consider why you buy those items. Perhaps the items help you to make money. For example, an internet marketer must need sophisticated gadget to promote the content via social media.
The Long term goal is something that we can reach in long term. We cannot reach in short term easily. For example, we want to hold one million dollar next  20 years. You must sure that your goal is attainable. Surely, you can increase the goal if you believe you are able to attain the goal.
Without a goal, you must be difficult to build a budget. You will have no plan because you have no aim to go. Therefore setting a goal is very important in financial planning.
2. Build a budget
A budget is the tool that is important for financial planning. The budget helps you to manage money to reach your goal. It records all expenses in one month. For the next month, we can share the money to the spending items such as food, mortgage, credit, utility bills, kid school fee, and else. List the details any food that you eat in a month. It is include cereal, vegetable, meat, fish, milk and others. You must have the bon from the grocery or store. You have better to keep it so you can count your food spending accurately.
With the budget, you can save the money monthly. You will not spend out the money before the end of the month. Some employee has spent out the monthly paychek before the end of the month. They do not know how to use money well. They spend money without a plan before. They also follow what they want. For example, when a factory launches a new cell phone, they buy the product whereas they still have a good one. They want have a new one to show it to their friend or family. Supposedly, they buy the new when the old damage or lose.
After making a budget, you should also be disclipline. Do not spend any items that you do not write down at the budget. For example, you should not buy the stereo or DVD, because you have not plan to buy the electronics at the month.  Plan to buy the DVD for next month so you can buy the dvd for the next month. You can punish yourself when you break a rule. You can reduce your entertain or leisure spending if you breaking the budget.   You can allocate the spending to cover the shortage of the budget.
3. Take the action
You can earmark the money for saving that is important for your future. When you do not work, you will get so much money from the retirement fund. Some old man cannot save when they young so they must work whereas the physic is not strong anymore.  It is not difficult to save your money. Allocate only one percent of your money for saving today. You can increase the percentage when your salary increases. The saving is important for short time. When your boss fired you, you can use the saving to fulfill your daily necessity. You can withdraw you saving until you have a good jobs or other income source.
Do no stack your money on saving only because the return is low.  You are better to invest your money for the future. Yes, the investment return is not good today but someday the investment will return on the track.  After the great depression, the sock return gave high return he investors. I believe the stock will give the high return next time.
Investment is not only stocks and bond. We can also invest our money in real asset.  The cattle may be a good investment too because the female cattle can bear one baby every two year. You must buy the land for shepherd. You can also consider sheep or goat. Those animals could bear two times in a year. Each female can bear 2-5 babies. The population of your sheep or goat can double in short time.
The farm land is also important too. There are some precious commodity such as corn, wheat, soy, and others. It must need large farmland to produce those commodities. You can start to buy small area first.

Sunday, June 9, 2013

How to side with windfall profit

Some people cannot stand with the poor living but some people cannot stand with rich living. Some unlucky people get windfall profit. A beggar may get a house from a kind person, a poor student may get dozen gold bar, a homeless get an inherent from unknown parents and so on.
When they get money, they do not know how to spend the money. Most people spend the entire money bust some of them save all the money. They go to Solomon Island to holiday that need thousands dollars. They buy luxurious car so they can so it to other people who ever tease them. I believe the money run out immediately. Buying a luxurious card need much money and the maintenance. The money just for the car but they do not get the money.
Some others people prefer to save the money. It is not wrong to save the money because we know we will use the money when we need it someday. However saving money cannot help people to get the wealth. Someday the money runs out.
Though we are poor man, it is not wrong to plan something. Perhaps we have dream to open a small business or to be a doctor. Here are some ways to spend your money when you get windfall profit:
1.    Investment
Some people believe that investment is a way to increase the wealth. I will save our windfall profit money. There are some cheap stocks that will increase when the crisis over. The business of the company is no over though the crisis. The company may pay the dividend to the stockholder.  Off course, only the good company that pay the dividend. Research the stock first before buying a stock. It will help you to find the right stock for you. Construct the portfolio that consist some stock such as infrastructure, retail, software, and else. Each stock is different. Some are goods in crisis but some other is worst in crisis.
You have better to get some suggestion from the financial advisor. The kind financial advisor may direct the right stock for you. Beside stock, you can invest your money on mutual fund, ETF, precious metal and others.
2.    Pay the mortgage or buy house
You are no rich until you have a house. A small house is enough for small family. You are better to pay off the mortgage soon so you will feel safe.  If you want to buy new house, it will be good too. Perhaps you want to live in a new environment or you can use the house to make money by renting it.
3.    Open a business
When you have so much money, you can open a business. Perhaps you want to buy a store that sell vegetable or fruit. We will get benefit from the store. Research first the business place because it can influence the sales. Sell what people want by hearing them.

Sunday, June 2, 2013

How to adjust smaller household budget

The budgeting is an important skill for our life. We should be clever to manage the budget. We must sure the budget balance. What we stream should not different with what we spend. It will be better when you have higher income.
If you have still high spending, you need to adjust it. There are some action to adjust to a smaller household budget:

1. Track your expenses

Write down all the expenses include the small amount of expenses in a month. Categorize the expenses to some category. It will help you to recognize the kind of expenses. You can separate the necessary need with unnecessary needs. When your income so small, you are better to leave the unnecessary needs. For example, you need to eat but you do no have to eat at restaurant. Eating out can increase your spending around hundreds or thousand dollar in a month. It will better to cook the food that is more health and cheaper.
People often buy an item hat they do not need it. A mom often buys too much cabinet to keep the newspaper or other things. Supposedly, she does not have to buy cabinet but she can keep the old newspaper in warehouse or she can sell the newspaper.
Sometimes a mom also spend does no realize that she has spent dozen r hundreds dollar. Sometimes a mom buys soft drink everyday. The price a can of soft drink is a dollar. In 30 days, she spends a last $30. Supposedly, he mom reduce the sift drink because it is expensive and It is bad for your health. The soft drink can lift our body weight.
Consider the annually spending such as insurance and taxes.  Divide the amount of annually tax or insurance to the number of month in a year. Allocate the ax or insurance spending in a years.

2. Reduce your food cost

No matter the economic condition. No matter who you are, you should still eat food. We should earmark money for the food spending. However we can trim down the spending. Do not eating out to save hundreds dollars a month  If you cannot avoid eating out, you can reduce it first. You are better to cook  your food alone and you can cook any food that you like. Some people suggest buying in bulk because we will get rebates. We can buy in bulk such as meat, chicken, bread, tissue paper, towel, and so on. Notice that the meat is easy to damage so you must consider he expired date.
Find the supermarket or grocery that sell the food cheaper. You can make bit research to find it. Buy the items that you need it. Do not buy any grocery items that you do need. Sometimes the discount often tempts us to buy more.

3. Reduce the utility bill of your household
Be sure the faucet closed down when someone do not use the water. To spray the grass or garden, you can use the used water. You can save your bath to spray the water. You can also it to wipe the window by using water. Harvest the rain with the drum. You can use it at the dry season.
Plug on the electric or gadget if you do not use it. Do not forget to plug of the charger when the battery is full. We need to reduce the electric bill in order to reduce our spending. Use save energy wash machine. Most wash machine suck high electric bill. Always turn off the light when you do not use it.
Be sure what you spend is what you need. Do not waste your money though you have so much money. You will need money when you have no job. We do not know whether we need the money someday. Sometimes, we should expenses so much money for health.

Read also:
The envelope budgeting
Four FInancial Goal Mistakes
The budget for worker who has no field income