How to budget when you marry

When you are single, you must be not difficult to create the budget. The budget just consist your spending only. When you marry a woman, you should think the woman spending. You have to responsible for the spending. When your spouse bear some kid, you have to fulfill what they need.
The family budget must need more money than the single. To create the budget, you can do like this:

1. List all of your incomes. The salary may sit on the first rank of the income. Some mother also work to assist the family finances. You may add the wife salary to the incomes list.
Do not forget to list the other incomes. Perhaps you write some book that generate royalty each month. Perhaps you have a business that  generate profit thousand dollars. List all the incomes and do not miss an entry.
2. List of the spending
The first things that you have to list is monthly living cost. The living cost of family must be higher than the single budget. You have to provide more food as much as the number of family. Perhaps your kids need baby food because they have no teeth.
The family head should consider to buy the house for the family. He can use mortgage or buy the house cash.The house is very important for family where they can live at there. 
3. Find the excess of the income with the spending. If the spending is higher than the income, you are better to reduce the spending. Other ways to balance the income and spending is to raise the the income.

Five Elements Financial Goals

The Financial goals is an essential element in financial planning. The goals should have at least five element or ingredients. Here are the elements:

1. Create wealth
The aim of financial goals is to make the people wealth. They can create wealth with some ways. Most people prefers to work for the boss. They can shows the boss that the company deserve to pay they more. They can choose any company that promise high salary,
Some other prefers to open a business due the business can make more money than working as an employee. Some of them are success in business.
2. Maintenance wealth
If you nave reach the wealth, you have to maintenance it. Manage the money that come from your boss or the business well. The money that come to you or cash inflow should be balance with the cash outflow or spending. List the spending for the next month completely. The spending must be lower than the income so you can invest the money or save the money.  
3. Increase wealth
Our jobs is not finish when we have reach the wealth. You should not satisfy when you just get $ 30,000 a month. You can also increase the money to a hundred of thousands. The employee can ask the boss promotion or the business man can add a new store so they can generate more money. A business man can try other business. Example: They can open a car workshop.
4. Protect wealth
Some people may protect the wealth with insurance. The life insurance can help the family survives. The health insurance can protect from hospital fee that is very big. The sick will not disturb the wealth again.
I prefer asset allocation than the insurance, due it is cheap. In asset allocation, we do not have pay the premium. We alone determine to put the money to various asset. Do not put your money at financial asset only such as stock, bond, mutual fund, derivatives, and other. You can put your money to real asset such as land, property, and else

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How to find Financial Planners

If you have so much money, you may need financial planners who advice you to make you more money. The financial planners helps you to build your financial planning. For the common people who does not know about finance they need the financial planners

There are so much people who offer their service as the financial planners. Do not to be tempted with the persuade from fraud people. There are some tips to choose the financial planners, such as:

Have Certified Financial Planners

Having a CFP certificate does not guarantee, the planners is a good financial planners; however, this is the first screen to select the financial planners. Most people whose hold CFP certified has advance financial knowledge. Not all of the financial degree has the certified financial planners. The people should pass the examination to get the CFP certified. I have ever seen the CFP exam that is very difficult.

The payment structure

Do not use the financial planner who ask the commission. The financial planner tend to suggest some product. the financial planner will get the commission from the company that has the product. The financial planner make unbiassed valuation. They said that the product is the best and can generate much money.

Ask the people near you

Get recommendation from people near you. They may have a good financial planner too. They have experienced to use the financial planner for years.

Go to NAPFA

See the list of financial planners on National Association of Personal Finance Advisers. There are so many names of financial planners.

See the code ethics of Financial planner

Each Financial planner has own ethics code. Be sure to choose the financial planners who has "fiduciary" code ethics.

Selecting a Financial planner is very important because they may help you to grow your finances. The mistakes in selecting financial planner could make you bankrupt.

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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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Important liquid net worth in your portfolio

A traditional man invest the money to crop and land. They do not recognize saving account moreover the stock or mutual fund. When he need to finance the kid, he has no money. He has no choice to sell his farm crop. Unfortunately, there was no one to buy the crop. Finally he borrow the money to the usurer. The amount is below the farm crop. The usurer charge high interest to the farmer. The farmer cannot pay the interest; as consequently, the usurer seize the farm. The farmer asset.
From Illustration above, we can learn that the liquid set is very important. The lack of liquid net worth make the farmer loss his crop farm. He has made mistakes by invest the money at the land only. If he had few gold bar, He would not have to borrow the money from userer. He can sell the gold bar to the jewel shop or pawn shop.
The college will not receive the farmer land as the college fee. They just want cash . 
The liquid net worth is a way to maintenance your emergency fund. The farmer has no emergency fund so he must borrow the money to the usurer. The farmer supposedly earmark the emergency fund before the kid enter the college. I cannot blame the farmer because he do not know about finance.  The emergency fund is contain liquid asset only such as cash, saving account, non IRA mutual fund, marketable securities and precious metal.
The liquid net worth also ensure the balance of portfolio. Our asset must be diversified either liquid or illiquid asset. The lack of liquid asset can influence the illiquid asset. Like the farmer, he must sell the crop whereas the crop is the only asset. On the other hand, having the liquid asset only is not good too. You cannot collect the return from illiquid assets.

The benefit of recession

Over 19% of United States people are rich today. They can generate money while the economic is tight. No matter what the economic condition, some people can generate more money. On the other hand, some unlucky person cannot make money even the economic is good.
We know that recession make us difficult to make money, however, there are some benefits in recession time. You can use it to make you wealth. Here are some benefit in recession:
1. The interest rate decreases
The government want the people to work again.  They do not want people just saves the money and wait for the interest. They decrease the interest rate so the business can borrow the money to widen the market. The company will need some employ to operate the company. Surely, the unemployment rate will decreases after the government decreases the rate. 
2. There is an investment opportunity
Though the stock has hit the bottom, the stock might rise up again. Today, the stock price is very cheap. You can buy the stock for long term. At the end of the recession, the stock price might go to the ceiling.
Do not buy all cheap stock. Carefully analyze the stock that will give you so much money in past. The fundamental of stock sometimes reflects the stock.
3. The low tax
At recession time, the government often cut the tax so the employee can bring more money to home. The government try enlightening the citizen load. The businessman can get more income too.
4. cheaper product
With the low tax and interest, the producer can decrease the price. It is a good idea, remembering the people just have little money.They hope more consumer buy the product so they can generate more money.  For the consumer, they can slash the budget for daily necessity. They can save the excess money for other budget purposes.
5. Cheaper property
Due the mortgage crisis, there are some house are seized by bank. The owner cannot pay the mortgage so the bank sell the house. Unfortunately, the demand of house is low due the downturn economic. The bank should sell the house fast or they loss. That is why the bank offers the house cheaper. If you have so much money, you can buy some property. Someday, the property price will increase.
The land is also good for the investment, due its stable price. Someday, a developer build a condo or mall above the land. Surely, you will get profit over many times.

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The budget for the worker who has no field income

Not all people can receive salary like people who work for the company. Sometimes, they get money each three month. For example : The farmer who plant corn, sorghum, paddy rice can get money after harvesting the cerelia. It need at least three month.
Due advanced technology, some surfer prefers to work as the freelancer. They can get some project on internet. They will be paid after the project has done. Sometimes the employer does not pay them because they do not satisfy with the project or they may fraud you. They said that your work is bad whereas they use your work.
As the freelancer, you have uncertainty cash flow. Therefore, you have to create a budget that is specific for instable income. These are the steps:
1. List all expenses
The freelancer must have expenses too though they cannot make money every month. List the fixed spending such as debt, mortgages or house rent, income tax, insurance, food, and else. Do not forget to list semi fixed spending such as electric bill, heat bill, internet bill, cable tv, cloth, and so on. Sum all of  the month spending.
2. Sum the income that you might receive next month. You may get the benefit from service fee, royalty, consultant fee, and others.
 Alternatively, you count the income that  you receive last year than divided by 12. It can smooth your revenue.
Do not list the income too optimistic. For example, you will receive hundred percent of your project that you have done last month. Some boss may pay you next month but some other may not pay you. Some client want to pay you but they want to pay it next month. You have to compute the income carefully.
3. Compare the income with the spending. If the income is higher than the spending, you can allocate the excess to the saving or investment post. You can also buy something if you need it.
If, on the other hand, your spending is higher than income, you need to reduce the spending. Alternatively, you borrow the money from other. By borrowing money, you can fulfill the daily necessity for temporary. It is not good to add the debt, remembering the high interest that you should pay. The better ways to make your budget balance is reduce the spending. As a freelancer, you need to trim down any spending due you do not have fixed income.
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Financial Planning For 40's : Collecting abundant Money

The forty has reached the top of career. Few forty can get the manager level position while most of forty just ordinary clerk. If they married at twenty, they would have some teenager who need college fee. At the forty, they need more money than the people in thirty.
Here are some financial advices for the forty: 

1. The retirement is still the main of financial planning for forty. The forty can still contribute the money to the their retirement fund. Some people prefer retire early at forty. They must have much cash to finance theirself.
In my country, the company often retire the worker who has reached 45 old years. They do not want to employ the old man that cannot work fast.

2. Portfolio
The forty must need the safer investment. They can decrease the risky investment at their portfolio. Today, the share market is not good due to the economic crisis. Most company try to survive with the economic tight. That is why they do not pay the dividend.
They can save the money to gold, silver or other precious metal in order to keep the value of their money.

3. Education
The forty must need money for kid college or school. They have to spend those money for the kid.Surely, they must save the paycheck for the other child if they have more than one child. Without a good education, your kid could not find a good job.

4. Find other income source
As a experienced worker, you may find other source money. The employee often open a business to increase the cash stream. They can open a consultant firm. Some company may hire you to finish the project.
The easy income source is internet. Some employee create a blog to make hundred or thousand dollar a month. This is not a heavy job. You just need one or two hours a day.

5. The financial planning also emphasize on reduce the spending. By reducing the spending, you can save some dollar a month. Cleverly find some ways to reduce the spending.
You do not have to own the luxurious car though you are able to buy it. There are a lot things that you can do with the money. If you have excess money, why do not invest it. Why do not help other people?

6. Housing
The forty should have to own the house. As become older, you need a permanent shelter. You do not need to move from one apartment to other apartment.

The financial planning is a continuous activities. The financial planning for 40 will determine the next financial planning, while, the financial planning at forty are determined by previous financial planning.

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Financial Advices near retire

Some employee are worried with retirement. They worried because they will not receive the paycheck from the boss anymore. For employee who use to receive the money from boss, it must be difficult to retire.

1. Calculate the entire of income after the retirement. Surely, you will not receive the paycheck again but you may other source income. You may build a small business that can generate hundred or thosand dollars a month.
Some retirement may decide to work as freelancers. Estimates money that you will receive each month. Do not record the freelancers income to optimistic because the freelancers income is unpredictable.
Having investment can make your life comfort. Also estimates the money from stock, bond, mutual fund and ETF. Consider the recent economic condition recently.
2. Calculate the spending
You can estimate the spending when you retire. It is not difficult to calculate the spending if you used to track your spending. We can just make adjustment for the spending. Sometimes we should delete the spending post or add some new spending.
3. Where place that you will stay
The retiree prefers to stay to suburban where they can breath fresh air and far from noisy. The place where you live can affect your finance too. 
Living in suburban is cheaper than in the city.
4. Payoff the mortgage
It is not good to pay the mortgage after the retirement. It must be difficult to pay the mortgage monthly after retire. You can resize your house to cheaper house so you can pay off the debt.
5. Adjust the portfolio
People who near retire need to adjust the portfolio. You are not young again to cover the high risk. Shift your investment to safer investment such as mutual fund, blue chips stocks, and others. Some experts says that the people near retirement can invest at 30% grow fund.
Invest at bond is not good investment due the low interest rate. The bond has risk too.
6. Open a business
In my country, the government offers the workshop for public service who approach retirement. The government hopes the public service can open a business too.
In my opinion, an employee approach retirement must be difficult to build a business because most employee has no experience in business.
A business is a risky activity, meaning we can either win or loss. Not all people can make money from business. However, the employee may try it to make money.

Financial Planning for 30's

What is financial planning for the thirty? This is almost similar with financial planning for twenty or forty. The Thirty may take high risk reminding they are still young. They have health body. They can works in various places. As a young man I work at least for three office. Surely, I spend most time at an office. I got the paycheck from those office If I work the project.

In thirty most of us can generate more money because we reach the top of the health. You should use it to prepare your future. Here are some financial planning for thirty.

1. Retirement Fund
Yes, you should think about retirement fund though you are still young. The early you save money, the more you will get the money after retirement. The retirement fund can fulfill your daily need after you retire.

2. Housing
A young man need the house too. It is not good to live with parent moreover you have married. If your parent ask you to live with them it is not problem. Perhaps they want to ask help for you. In retiree, they do not like living alone like other people. 
Though, you live with parent, you can buy the house if you have money. You can rent the house to other people.

3. Start a business
In Japan, there are some creative young that found creative business. They create some anime and cartoon film that make money million dollars.
when you still young, you can start a business. You can take care of the business after work.

4. Saving and investment
Save your paychek and then invest at profitable investment. This time might be not good for investment but someday the investmet will rise up again.

5. Living Frugal
Do not think that you can make money forever. Someday the company may fired you and you will be poor. Do not use the brand product while the generic product is not different in quality. Do not follow other people style because they may have high salary.
We can save much through this lifestyle. Dozen, hundreds, or thousand will be useful for us.

6. Emergency fund
Set aside money for emergency fund. The amount is depend on your daily needs. The emergency fund is usually six times 

7. Education
Perhaps you want continue to the master degree or doctoral degree. You can make money after you graduated from higher college or university.