Friday, February 28, 2014

What are different between strategic and financial different?

Some people may confused between financial planning and strategic planning. These things are different each other. You have to know about it.
The company works to make benefit to the owners. To make the benefit, they should make the strategic planning. They can use all source to implement the strategic. Sometimes the company can materialize the steps but sometimest they fail to meet the goals.
The strategic planning is included any action to reach the goals including production, marketing, and finance. It needs coordination from various organization in company. The planning may write down any action to increase the product. Perhaps they have a new way to promote the product through facebook or twitter. Today, there are so many company that promote the product through the social network because it is easy and cheap. We can send so many tweets to twitter without charge or make facebook group.
The strategic planning also include the finance. The company may borrow some money. They can borrow money from bank or they can issue bond. Both loan has benefit and loss. The financial manager can use the effective combination between two kind of loans.
On the other hand, Financial planning is not similar to strategic planning. The financial planning is concern about the money. The people may be difficult to allocate the money. Some people just use money for spending only.  They do not know The money is important for us. We can save it for the future.
Financial planning duty place your money to some retirement fund such as IRA, Roth IRA, 401k, and others. The money that you invest at there will grow. When we retire, we do not have to find jobs. The retirement fund may fund our living cost.
Financial planning has aim to reach financial goal only. For example, we want to buy car for next five years. In the planning we should earmark our money to buy the car. Our planning also record the amount of dollar. We can save the money first to reach financial goals.
To make your financial goals success, some person use budget. The budget write down all income that we usually can stream and the spending that we spend every month. When the spending is higher than income, the person should increase the income. The budget should be balance. We can also reduce the spending to balance the budget. Reduce the spending is the easier option than increasing the income.

Thursday, February 27, 2014

How to plan for unpredicted


We cannot predict the future. Sometimes we spend more at certain month. Sometimes we should service the roof because the kid throw a stone to our roof. We must need hundreds dollar to fix the roof or the rain can flood our house. We do not suppose a kid throw our roof. However, we should change the roof or we our house will get flood.
There are so many unexpected expenses. We can predict the durable of the roof. Let say, we can use the roof for twenty years. If someone break it, we should change it immediatley. If we have the insurance we may get the money from it. Some house insurance protect the owners from the loss including the roof.
The insurance is a solution for unexpected cost. When you should go to hospital, the insurance may pay the medical bill. As consequenlty, you should pay the premium every month. The employee usually get insurance from the company because the government obligate the company to protect the employee.
Beside insurance, you can create emergency fund so you can pay the unexpected cost. Build emergency fund is not difficult. You need at least cash six times your monthly needs. You should not withdraw the emergency if you do need it.
The people can keep the emergency at the house. They can also save the emergency in stock or mutual fund shape. The gold bar or gold coin is also good for the emergency fund. We can sell it at jewelry store or pawn shop. 
We can anticipate the unexpected cost by forecasting. For example, We can provide some cash or earmark some money for the service of the house after years. We can forecast when the house needs service.
See the last year unexpected cost and calculate it. We should provide the cash for the unexpected.

Wednesday, February 26, 2014

How to increase your income suring recession

We are difficult to get money now. As the Greek crisis has influence the world, the recession shadow world economic. We might be difficult to stream income. The good prices also increases that can increase our spending. There is no other ways beside increasing income.

Rent Assets
Rent Asset to other people. You can rent room for $500 to student. If you have two houses. you can rent one of them. You may generate thousands dollars from it.
If you have car or motorcycles, you may rent it too. It is better than leave your car in garage. You can sell if you have more than two cars.

Get rid your items from warehouse
You have better to get rid useless items from your warehouse. It can get benefit two sides money and empty room. You can use the room for business.
Perhaps you still save the baseball stick or helm on the garage. Why do not sell it and make money?

Second Jobs
Some people works after they arrive to home. They can works up to middle night. When I was young, I also works at the morning at the night. I got double income from consulting firm and university.
Seek out ways to makes more income. Do not hope too much from paycheck that you receive now. It may be not enough for you. You may need more money to fulfill your basic needs.
You can find some jobs in internet such as writing article, virtual assistance, and others.

Smart Investment
We realize that investment today is not good. The trend of the index market decline. It looks the stock index will not rise again. The bond market also bad due it interest almost hit zero. The government will not increase the interest because it can make economic worse. However, some emergence market can make profit too. While the stock index decline, some Chinese stock can make return two digits.
For long term, you can also invest the money at blue chip. Someday, the stock can be doubled or when the economics recover.

Articles online
This is the easiest ways to make money. Indian people write 400 word article for a dollar. Surely they do not write the article well. However, some publisher still need their article. They can make dozen or hundreds blog to obtain adsense revenue. They are patient to stream income from the adsense. They market the blog and promote the blog in order to increase the traffic first.

Monday, February 24, 2014

What teens need to know about financial planning

A teen supposedly recognize the financial planning too. They need to plan since they are young so they are not confused and confound with it when they grow. There are some aspects that you can tell to your teenager:

1. Concept of money
The money is very difficult to find but we can spend out it easy. Due the economic meltdown, some company fire the employee. They do not get money from the boss anymore.
The money can multiply or grow if we save it. However, the value of money could be increase or decrease. For example, Today we can buy cloth for $20, someday we do not know whether we can buy a cloth with $20. The cloth price could rise to $50.

2. Saving
Since long time ago, people saves money. They know that they should pay unexpected cost. They know that the asset that they have could loss. For example, disease attack their plantation or cattle. At that time, they must need money to buy food. They can borrow the money from other or they can use saving for it.

3. Retirement
The businessman still can makes money when they stop working. They can delegate their duty to the trusted man and stream so much income. Preparing retirement needs work hard. We can save the money each month for it.
There are some retirement fund such as 401k, IRA, Roth IRA, and so much. Each retirment fund has different characters. Seek out the benefit of those retirement fund. We can withdrawn the money when we quit from our jobs. Our money can increase at retirement fund because retirement fund manage our money. They invest our money to the profitable investment. They return the part of the investment to the retirement fund.

4. Credit card not pay you
Teenager may think that the crredit card is resemble to money. Absooutely not, you should pay the credit card  at the end of the mount, include the total money you spend and the interest rate. You should also pay the administration fee too.
Some people prefers not to use credit card. They prefers cash to save their money.

5. Budget
Budget is important tool for financial planning. The rule of thumb of the budget is that spending is lesser than the income. We can adjust the budget to our financial goals. For example: We may set budget to buy a motorcyle. Each month we earmark some money for the motorcycle. After couple mounth. we our money is enough for the first payment.

Thursday, February 20, 2014

Financial Management Tips

For a better result, you should manage the money well. It is not difficult to manage money. By manage well, you can use the small paycheck that you receive from your boss. Here are some tips to manage money well.

Financial goals
Have you mad the financial goals? Not yet. You should make it immediately because it can determine the direct of financial management. What for the money management if you have no financial goals. A financial goal is the reason why you should manage your money.
You may have something that you are really want to buy. Perhaps, you have promise to your kid to buy tricycle. You can save the money for three or six month for buying bicycle to kid. Or, you may have the long term goal to have a house. Most people want to buy a comfort house so they can live inside.
I believe most people want to buy house, car, and other things but unfortunately, they do not write is as their goals.

Steady income
Working is not enough when you just makes little money. The money may be not enough for fulfill your daily necessity. The main of income is usually paycheck from your boss. For the businessman, the main income is business profit. The employee can make smooth income. They receive relativley stable monthly; while, the businessman receive the income volatile. Sometimes they can make so much money, but sometimes they cannot get any penny.

Retirement Fund
Most employee contribute the money to retire fund so they hope they can receive money after they quit jobs. Contribute to IRA or 401 k that can give you some benefit. You can also borrow money from retirement fund.
The retirement fund help you to manage the money for the future. They invest your money to profitable investment such as company stock, mutual fund, bond, ETF, and others.

Tell to your family the budget so they can understand why you looks so miser. You have no mean to miser but you want to save money. Tell them that we have tight the money for our future. They will understand what you say. They may not ask something expensive such as gadget, video game, play station, and else.
They may help you to fulfill your expenses. In Eastern countries, The kid use to help the parent to fulfill the family expenses. They help the parent in the crop field, farm, or, market.