How Financial Plan Help you in recession

Normally, people will be difficult live in recession. They could be fired by the company because the company may not need them again. They will difficult to make money while they should still spend money. Finding a job is not an easy jobs. The employee demand low but he supply is so high. Most unemployed want to get jobs. I saw some doctoral degree offers themselves to work for food only. It is a pitiful story. Getting doctoral degree needs much money but they just get food. The recession makes us suffer.
However, Some people can get benefit while in recession. They are clever to create the financial plan. They can stream more income while other people are very difficult to get one dollar. Her are how financial plan help us in recession:

1. The financial plan has planned to create a good portfolio
Some people who own gold bar, gold coin, silver and other precious metal can make more money. The gold price has hit $1700 troy oz and it could hit $ 2,000 anytime. The people must be more wealth than before.
We invest in various investment both real asset and financial asset. Land and property is also good investment now because the price never decline. Some investor sells the stock and use the money to buy land or property. Though the stock return is not good now but you do not have to sell the entire stock. You have better keep the best stock. When the economic recover, the stock will increase and you will get high return.
2. The investment portfolio
The financial plan does not invest at the capital market agressively. Due the recession, they invest few stock only. They reduce the stock in their portfolio except some defenssive stock that can make money. The defensive stock including food company, retail company, and others. People still use soap or tooth paste even the economic is very bad.
The best portfolio may no give you much money at the recession time; however, the investment also gives return too.  We should be clever to construct a good portfolio.
We invest money to cumulate money that we need it at the future. We can use the money when the kid goes to university.
3. Own house
The house price has been decreasing since the subprime mortgage. The decline price is almost half of previous price. You can settle the mortgage immediately if you have money. By owning house, you do not have to pay the mortgage or pay the house rent. You do not have to move from an apartment to another apartment.
Owning some house can increase your wealth too. Some people buy the cheap house for business. They repair the house and paint the house. They sell the house to any people who hunt a house. You can also rent your apartment to student or worker.
4. Own crop and farm
People need food and beverages. If you have so much crop that produce abundat wheat and oat, you can make money. People need wheat and oat for bread and bubur. In the recession, they may reduce the cereal but they cannot avoid to use it.
Financial plan also suggest you to buy the productive property. You can buy it cash or you save first to buy the land. The price for land increase yea o year. You will no sorry if you buy the land. Surely, you have to research the land first and make sure the certificate of the land.
5. The credit
I do not like to owe money. In recession, the interest rate lows. The government want the businessman borrow money to operate the company. With the interest rate near zero, you can slash the company spending or cost. However, most businessman has no money so they cannot borrow the money thought the debt at zero.
Personal finance plan teach us not to borrow money. We can calculate the profit and the loss of credit. We should pay more cash by using credit. We are better save the money to buy something than credit to buy something. I must be cheaper but I need good commitment. If you use the money you will not be able to buy the item.
6. Retirement fund
If we contribute the retirement fund dozen years ago, we can get benefit now. The retirement fund help when we loss the jobs. You can use it to found a new business or build a crop farm. A personal finance also suggests us to allocate money for retirement fund because we cannot work forever. The company will retire the old man because they are no productive again. By using old man, the productivity of the company goes slowly.
The financial plan counts some money hat you will receive after you do no work again. Of course, it also consider your lifestyle. For employee they may save 10% of salary for retirement fund. On he other hand, a man without a fix jobs such as freelances should put more than 10%. They may put 15% for the retirement.
When they retire, they receive payment from the retirement fund. The amount might be similar to monthly payment. They can live without work. They can buy food, cloth, and other item and they can stay in their house comfort.
7. If you saves 10% of your paycheck as you have planned in your financial plan, you can use the money now. Saving is important thing. You can use when you use money immediately. Sometimes we face with unexpected expenses. Perhaps our car his garage and we should repair our car. We can use the saving first.
A recession time, we should expense more money because the price of things increases. We can use your saving to cover our spending. Off course you should consider to reduce your spending or increase your income.
Financial plan help you to live below our mean. We should have commitment to obey the financial plan. Spend wisely and increase your spending to reach wealth.
What you should have to stream more income
Benefit Passive Income
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Why you need to increase money when retire

When you retire, it does not mean you can feel free. Perhaps there are some money that may harm you. Here are the cost that may harm you:

1. Maintenance the house
After you stay for twenty or thirty years, your house may damage. Perhaps the rain has damage the roof. Surely, you have to improve it or your house will break. The maintenance is not cheap, you have to pay the roof and the repairman service.
Some house needs improvement in the wall, the window, or others. If the retire want the best material, they should dare to pay more.

2. Kid Education
If you have still young child, you should fund the kid. Your kid college fee may need your money. Surely, you cannot ignore your kid college or you will need money to care them. For example: If they do not pay the college, they will stop to study. If they stop study, they cannot graduate the college. If they cannot graduate the college, they will be difficult to find jobs. If they have no jobs, you must help your kids to fulfill the daily necessity. Surely, you have other option to expel your kid from your house. It is your choice .

3. Health
Some sick retire may spend so much money for medical expenses. The young who do not keep the health will get so many diseases in the old time.

Photo by : Philip Taylor PT


4. Hobby
After retirement, some worker focus on the hobby. They use the severance to buy collectibles such as coin, stamps, painting and statue. A piece collectible is hundred thousand dollars. The crazy collector may spend the money for it whereas the real value of the coin is just dozen thousands dollars. The are tempted to collect the coin that is not important. Perhaps they think that the collectibles will generate money from them.
The maintenance of hobby is usually expensive too. A collectible do not need expensive maintenance but caring pet needs high cost. Example: Cats need the expensive food. My brother has six cats (one mom and five kitten). He needs $200 a month for cat feed, not included cat sand and vitamin. My brother also do not bath the cat to pet salon. He can bath the cats alone. Fortunately, the cat is health. We do not have to ask veterinary to cure the cats. In my country, the veterinary cost is not expensive just $ 10-$20. I believe the cost of veterinary is more than $ 100 in United States.

5. Child trouble
Perhaps your child owe some money to mafia. Surely, you should pay the debt or Mafia will kill your child. As a parent, you will not let any people hurt your child.

Financial Planner for 50’s : Preparation to retirement

When we reach 50, we may need so much money. Our Child may need education or college fund. It is not an easy task. The fifty should provide the education fund for the kid

Adjust the portfolio
The fifty often shift the investment to safe investment. They replace the stock with low risk bond. They do not want to gamble with their money. If they loss in the market, they do not know to change the money. They afraid their house will loss to cover the investment loss.
The blue chip stock or defensive stock may fit with the fifty investment due it generate dividend for the investor. The blue chip company is also stable, facing the tight economic.

Resize the house
When your kid has gone from your house, you may need to resize your house. You do not have to own a big house that may bothered you. You must be tired to sweep and peel the large floor. The cost of small house is also cheaper. You do need to make much maintenance to the house.

Retire
If you have much money, you can decide to retire at the fifty. In my country, the government will fire the public service who has hit fifty five except the teacher, lecture, nurse and doctor. The government does not want to employ the old man that is less productive because it load the government budget.
Some company may fired the worker who has hit fifty five.

Find other jobs
If you work at the office or company that need your power, you need to move to other company. The fifty must decrease the activity to keep the health. The fifty five must not be strong as young man. If they got sick, they must be decrease the activity.
If you have a sign that the company will fire you, you have to prepare yourself. Find another company that want use your service and skill. Alternatively, you can use the severance from the company to start a business. Perhaps, you have some idea about business.
In my country, the government organize workshop to help the retire to get some business knowledge such as farm, small business, and others. Some retiree can build a business after they quit from the jobs. It is better than do nothing. An oldman may still work to make money.

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Golden Rule for Financial Prosperity

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.
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Pros and Cons New House
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Pros and Cons New House

House is a basic needs for human. A family supposedly has a house where they live. They can sleep under the comfortable house roof. The family member can meet together and share what they have meet at the outside.
A family can buy new house or old house. If they have much money, they can buy any house. There are pros and cons buying new house:
Pros
New house mean new building
The new house usually has strong construction. The cement still sticky to stick the brick and sand. The plywood or steel frame that supports the house is very strong. A new house color is colorific due the owner paint it with new paint.
Some developer builds a new model of home. Perhaps there is a water heater that uses solar power.
New Environment
You must get new environment they may be different to previous environment. Perhaps, there are some neighbors that also help you. Reversely, the owner may have a bad neighbor who makes them sick.
The durable
The house can be used for dozen years or hundreds year. It also depends on material that the developer uses. Be sure that the developer use durable material so you do not have to service the house. 
It does need some improvement or service
The new house does not need improvement. The frame still strong and you do not need to replace it. The roof is new so it can protect you from hard winter or hard rain. Perhaps, you will service or maintenance it next ten years.

Cons
Very Expensive
A new house must be expensive. The mortgages must be expensive too. The owner should allocate so much money for mortgage payment. It is not good to use mortgage recently due interest rate is very high.
The tax
Due its expensive price, the owner should pay higher tax than old house.

New house means new experience
There are no people who ever stay at the house. so no one know the advantages or disadvantages of the house. There is no one who can explain how live at the house. 
New community
New house means new community and new neighbor. The owner should adapt with new community. Perhaps they have habit and culture that is different to you.
Before buying a new house, you need to consider the pros and cons. If you prefer the pros of the new house and you have so much money, you can buy new house.