Sunday, January 27, 2013
How freelance make more money
The freelancer is a dream job for some people. The freelancer does not need to go to the office everyday. They can work whenever they want and wherever they want. A Freelancer is not similar to 9 to 5 slave who work from 9 am to 5pm. They do not have to punch absent card in absent machine or the company cut the salary.
Some people prefer becoming freelancer than the worker. They are free to express themselves. They can choose the boss who want pay them more. They do not have to do the jobs which If they do not like a boss they can serve other boss. Because of this, they are called as freelances.
Though, the freelancers do not receive monthly payment but they can get more money than an employee as log they can manage money well. They can save the money to investment or saving. A freelancer should save more money.
Being a freelancer, you can make more money. On the other hand, the freelancer spending is not much as the employee. Here are the reason my freelancer make more money:
1. Despite the freelancer do not receive monthly salary, they can generate more money.
If they can get some project, they can make so much money. A Freelancer should be clever to seek out the jobs opportunities. They can find at craigslist or internet that seek their service. They can also ask the friend or relative the service.
The payment of the freelancer will increase when they have so much experience. For example: the experienced writer can get $40 each article easily, while, the amateur is difficult to get $5. Because of his, a freelancer should sharp heir skill and ability. They need to read more books and consult to the expert. They will get new knowledge
2. The freelancer does not need to pay high tax
In my country, most the online business has no pay the tax due the goverment has not yet to determine the tax laws. Some blogger who get thousand dollars have not yet paid the tax to the government. The government is going to create the freelancer income tax; however, the freelancers refuse it. They said ha the government has not yet support the freelance jobs.
In my country or other underdeveloped country, the government has not create the freelance’s income law.
3. The freelancer has more time than the employee
An employee must work from 9 to 5. Sometimes the boss offers worktime to the employee. After arriving house, they must be tired. In my country, a worker could arrive home at 10 o’clock because the distance from the house to the office is so far or about 100 km. It takes three hours to arrive at the office.
As a freelancer, you have much time and you can use it to start the business. Do not waste your time for useless things. As a freelancer, you should be creative to make money. You can find another client who wants to hire your service. You can promote yourself on social media by posting your project. Tell them that you are able to do some project. Some people who read your promotion may contact you soon or later.
You can also build a business too. While you have no project, you can care your business. The business may increase your income too.
Some mom can take care the kid and they do not have to go outside. They can stop the project for a moment when the baby cry and they can continue the work after the baby calm. The mom can generate more money and the baby grow health. Because of this, some mom prefer to work as a freelancer.
5. The Freelancer can stream more than one cash flow
An employee just receives one source income from the boss. Sometimes the boss gives also bonus and honor. Unlike the employee, a freelancer has no monthly salary but they get some money from the client. They can get money from various source, depending to what kind freelancers. A good freelancers can write a popular book, useful software, technology and else. The freelancer may stream the royalty from it. They can write a book or build a blog when they are free.
When they have no jobs, the freelancer can do some business. They can get money from the business. They can also offers maintenance service o he client. Sometimes a client meets the trouble with software or they want additional service from the freelancers.
The freelancer should save more than employee can save. It is because they do not have pension fund. They can also stream income from investment such as stock dividend, mutual fund net asset value, capital gain and others.
6. The freelancer spending is lower
The freelancer do not need to go to office everyday.They do not need to buy gasoline for the car or they do not need to go to office everyday. They can slash $ 10 per day. They do not also pay the bus fare or bullet train ticket. They can work at the house when they got jobs. They can meet the client when the work has done.
An employee need the nice shirt or uniform too; while, a freelancer does no have too. A freelancer can wear casual shirt that is cheaper than informal shirt. An employee needs a good suite to attend the meeting or meet the client. They want looks professional by other people. A good suite price at least thousand dollars.
7. The freelancer lifestyle is llittle
The freelancer is very different with the employee. They do not have to play golf periodically or Visiting a gym like employee. Those activities need at least thousand dollars in a month. The freelancer does not need to register to any club.
The freelancer also does not need to eating out to talk with the client. He or she can talk with the client on chat, twitter, and e-mail. Sometimes an employee goes to the restaurant or café to celebrate the promotion.
Saturday, January 26, 2013
Should I buy or rent the Item?
I saw a parent parent pull out the baby cart in the park. It must be expensive because it has nice design. Surely, the parent just use it for two or three years. They will store it to the warehouse when the child can walk. It is not good to spoiler the kid with baby carriage.
Saving it the warehouse will make your warehouse full. Some parent may sell it or give to the familiy or foundation. If the parent have so much money, they can buy any baby cart.If, on the other hand, the parent has little money, they should consider buy the baby cart. There some factor that you should consider before buying something. You can rent something when the cost is cheaper. The parent can hire the baby cart when is cheaper.
Some company also rent car or office to reduce the cost. They do I o increase the profit. Surely, they make calculation before decide whether to buy or rent. By buying, the item, the company owns the asset but they should need much money. By hiring, they can minimize he cost but they do not own the items. However, in long term the company should pay the high rent fee. They Here are the costs that you should consider:
1. How long you use the assets?
As I have told in first paragraph, buying a thing that you just use for one or two year is wasting your money. You are better to hire the things from the store rather than buying it because you will throw it.
Using the baby cart is only for two or three years. After your chicle big, you should trash it. Unless you have other baby, you can use it. In my country, some parents hire the expensive toys for the kid. It is cheaper than buying. A kid will be bore to play the toys and the parent can return back the toys.
We use the house where we stay forever. That is why we should buy it. Renting the house forever is very expensive. You must spend money for renting.
2. How much the resale price?
Can we sell the items at high price? Unfortunately, the price of most assets will decline except the antique things and property. The buyer will not buy the old items at the similar price to new items. For example: The used book price is half of the new one. The gadget price also decline after the new model release.
However, some old items price is not much different with the new one such as car. The price is only slightly different to the new one as long the condition of the car is good.
3. How frequently you use it?
If you often use the items, you need to buy it. For example, you use the gadget everyday so you are better to buy it rather than hire it. By hiring the items that we often use, we have to provide more money or we should pay more.
Sometimes we hire the tool box to he neighbor in order to fix something. If you use he tool box often, you are better to buy the box. It is not polite to ask he toolbox o your neighbor frequently because they also need the box.
On the other hand, If you rarely to use it. For example, you read the comics or magazine only once. You are better not o buy the items. You can hire the comics or you can read the comics at the library. In Japanese, the people often throw the new comics after read it. They do not collect it due the house and apartment is so narrow so they have no space or warehouse to keep the comics.
4. Is the items important for you?
Some people often buy items that they do not need it. The discount temp them to make the items or they buy the item because the friend or neighbor buy it. Supposedly, every people buy any item that they need.
As yourself about it? When we need something, we should buy it. For example, The writer will be difficult to write if they have no book. They need some book as the reference so they can write. A student also need book too. Without a book, they cannot learn the subject.
You are better to buy the book rather than rent it.You can buy the used if you have no money. With the book, you do not need to worry the librarian asks you to return the book.
Some people cannot distinguish between need and want. They buy anything that they want but they do not know what the item is.
5. The cost of the item
Is the item too expensive that you can buy it? I you have much money; you may buy any item that you like. You can consider the cost of item too. If we buy car we also spend money for the car too such as gasoline and repair. We have to repair the car machine after 40,000 kilometers. We should also change the engine oil too. All cars have wheel that you should change periodically.
We should provide a space that is called garage for the car. We may not spend money for the garage but he opportunity cost of a garage is also high. We can rent a garage for $500 a month to other people. Some people use their garage as their business headquarters.
When we park he car in parking are, we should also pay the fee. Some place charge high parking fee. You are better to hire a car if you have no money.
Closing
You have to consider before buy or rent something. Consider the profit or the loss. Consider of all aspect not one or two aspect only. Sometimes we can ignore one factor. For example, though he resale price of gadget is very low, we should buy it. I have never hear any company or people who lend the gadget.
Saving it the warehouse will make your warehouse full. Some parent may sell it or give to the familiy or foundation. If the parent have so much money, they can buy any baby cart.If, on the other hand, the parent has little money, they should consider buy the baby cart. There some factor that you should consider before buying something. You can rent something when the cost is cheaper. The parent can hire the baby cart when is cheaper.
Some company also rent car or office to reduce the cost. They do I o increase the profit. Surely, they make calculation before decide whether to buy or rent. By buying, the item, the company owns the asset but they should need much money. By hiring, they can minimize he cost but they do not own the items. However, in long term the company should pay the high rent fee. They Here are the costs that you should consider:
1. How long you use the assets?
As I have told in first paragraph, buying a thing that you just use for one or two year is wasting your money. You are better to hire the things from the store rather than buying it because you will throw it.
Using the baby cart is only for two or three years. After your chicle big, you should trash it. Unless you have other baby, you can use it. In my country, some parents hire the expensive toys for the kid. It is cheaper than buying. A kid will be bore to play the toys and the parent can return back the toys.
We use the house where we stay forever. That is why we should buy it. Renting the house forever is very expensive. You must spend money for renting.
2. How much the resale price?
Can we sell the items at high price? Unfortunately, the price of most assets will decline except the antique things and property. The buyer will not buy the old items at the similar price to new items. For example: The used book price is half of the new one. The gadget price also decline after the new model release.
However, some old items price is not much different with the new one such as car. The price is only slightly different to the new one as long the condition of the car is good.
3. How frequently you use it?
If you often use the items, you need to buy it. For example, you use the gadget everyday so you are better to buy it rather than hire it. By hiring the items that we often use, we have to provide more money or we should pay more.
Sometimes we hire the tool box to he neighbor in order to fix something. If you use he tool box often, you are better to buy the box. It is not polite to ask he toolbox o your neighbor frequently because they also need the box.
On the other hand, If you rarely to use it. For example, you read the comics or magazine only once. You are better not o buy the items. You can hire the comics or you can read the comics at the library. In Japanese, the people often throw the new comics after read it. They do not collect it due the house and apartment is so narrow so they have no space or warehouse to keep the comics.
4. Is the items important for you?
Some people often buy items that they do not need it. The discount temp them to make the items or they buy the item because the friend or neighbor buy it. Supposedly, every people buy any item that they need.
As yourself about it? When we need something, we should buy it. For example, The writer will be difficult to write if they have no book. They need some book as the reference so they can write. A student also need book too. Without a book, they cannot learn the subject.
You are better to buy the book rather than rent it.You can buy the used if you have no money. With the book, you do not need to worry the librarian asks you to return the book.
Some people cannot distinguish between need and want. They buy anything that they want but they do not know what the item is.
5. The cost of the item
Is the item too expensive that you can buy it? I you have much money; you may buy any item that you like. You can consider the cost of item too. If we buy car we also spend money for the car too such as gasoline and repair. We have to repair the car machine after 40,000 kilometers. We should also change the engine oil too. All cars have wheel that you should change periodically.
We should provide a space that is called garage for the car. We may not spend money for the garage but he opportunity cost of a garage is also high. We can rent a garage for $500 a month to other people. Some people use their garage as their business headquarters.
When we park he car in parking are, we should also pay the fee. Some place charge high parking fee. You are better to hire a car if you have no money.
Closing
You have to consider before buy or rent something. Consider the profit or the loss. Consider of all aspect not one or two aspect only. Sometimes we can ignore one factor. For example, though he resale price of gadget is very low, we should buy it. I have never hear any company or people who lend the gadget.
Tuesday, January 22, 2013
Five ideas to boost income
Most people often grumble with their salary due it very small for them. They find another income source but they are failed to get the income. Some people may decide to find another job however the salary is not higher as they think.
People seek out any opportunities to boost the income, balancing the increases spending. The inflation has increased the good and service price; whereas, the income has no yet increased. We must find the other income soon or we will be difficult to fulfill the spending.
Some people want to boost income to reach the financial goals. They think they will no be able to reach he goal if they cannot boost he income. If you are really want to boost your income, here are some ideas to boost income:
1. Teaching what you know
Perhaps we have some knowledge such math or Algebra. Those two subjects are horrible subjects for some student. Some students do not like it because it is difficult and not all parents can teach the kid. Off course, you should like teaching. However this is an opportunity to boost your income. Teach the elementary school and get money from it. You will be paid $50-$60 per hours.By teaching, you will increase your money and your knowledge. There is some website that finds some tutor or teacher. You can teach the lesson from internet and you do not have to go anywhere. I saw some Indian tutor teach math and algebra online.
Offers a writer workshop, organize the farm workshop, write a guidance book, a hunter guide, and else. If you a student, you can offer data analyst to the student who near graduate. They must need guidance to analyst the researcher. In my country, the student dare to pay $ 200 - $500 for the data analysist. You can also work as the questionnaire interviewer. Some professor needs primary data for the research. My friend also helps the doctor to finish the dissertation. She collected the data from the field. She finished the bachelor degree so the doctor was.
2. Find a roommate
This is easiest option to make money. You can make $500 to $ 1500 a month. To find a roomate, you can use the newspaper, Craigslist, and other. You can also ask your classmate who need a room. When you post the ads, some people may call you and ask about roommate. Perhaps they need a room that is cheaper. They may negotiate the price of the room. If they feel good, they will pay the room.
Make sure your roommate is a kind person. You can check the criminal background the roomate candidate. Interviews the room candidate before you decide to accept them. Your roommate candidate will not object if you ask some question. You can appraise from the answer and the way he or she answers your question.
If you get good roommate, you will get benefit too. Some roommate may become your best friend. They will help you when you need something. You can also talk to your roommate when you feel lonely. It is better than you are alone.
Some people cannot live with other person so they are better not to find roommate. Perhaps the roommate makes them mad.
3. Stream passive income
Do you want receive income when you sit or sleep? The income is passive income that you do not need to work hard to get it. Receive the dividend from company stock or a business, get royalty from the book, receive tenant fee from the renter - there are a lot opportunities to stream passive income.
If you have much money, you can invest your money to profitable investment. You will receive the dividend once a year. Research any investment first before you invest your money. There are some financial consultants who can help you. The experienced consultant will help you to boost your income.
The hard job of streaming passive income is the up front work. You should spend more money or time for it. The investor who want stream income from dividend needs much money. The book writer who want the book published must spend time to write word by word. They must do also some research for the book. Creating passive income is not easy but you should try it.
If you have property, you can lend your property. Some homeless people try seeking house for rent because buying house is more expensive. You also lend your car o your fiend or neighbor. In my country, rent car is a good business because not all people can buy the car. They like hire the car for holiday at the weekend.
4.Drive for money
This is not little jobs. A full time driver can make $50,000. A employee or student can take the saturday or sunday delivery which average salary $300 per week. If you can ride bicycle, you can also work as a courier. We can send some food or mail to the office. You can make $800 per week. It
To apply the jobs, you need to appeal the commercial driver license. It is not easy to get the driver license. Sometimes we should examine over many times to get it. The police just give the license o whoever deserves to get driver license.
5. Buy Franchise
Are you confused in starting business? Why do not buy franchise. The franchise owner will guide you to start the business and make profit. Hey also help you to promote the business to other people. Most franchise has been recognized by people so you do not have to promote your business.
However, it is not cheap to buy the franchise. For example: a restaurant franchise require cash ranges $ 92,050 to $ 222,800. You need to save your money or salary first to buy the franchise.
The franchise is easier than starting a new business. In my country there is a franchise business. The fail ratio is only 9% and more than 80% success in the business. The franchise business is about selling Turkish Kebab. The franchise has grow over many times and it also build some branch in Malaysia and Philippine.
Read Also
Top Financial Planning Tips
How to manage finance when you are between the jobs
Benefit Passive income
Photo by : Alesist
People seek out any opportunities to boost the income, balancing the increases spending. The inflation has increased the good and service price; whereas, the income has no yet increased. We must find the other income soon or we will be difficult to fulfill the spending.
Some people want to boost income to reach the financial goals. They think they will no be able to reach he goal if they cannot boost he income. If you are really want to boost your income, here are some ideas to boost income:
1. Teaching what you know
Perhaps we have some knowledge such math or Algebra. Those two subjects are horrible subjects for some student. Some students do not like it because it is difficult and not all parents can teach the kid. Off course, you should like teaching. However this is an opportunity to boost your income. Teach the elementary school and get money from it. You will be paid $50-$60 per hours.By teaching, you will increase your money and your knowledge. There is some website that finds some tutor or teacher. You can teach the lesson from internet and you do not have to go anywhere. I saw some Indian tutor teach math and algebra online.
Offers a writer workshop, organize the farm workshop, write a guidance book, a hunter guide, and else. If you a student, you can offer data analyst to the student who near graduate. They must need guidance to analyst the researcher. In my country, the student dare to pay $ 200 - $500 for the data analysist. You can also work as the questionnaire interviewer. Some professor needs primary data for the research. My friend also helps the doctor to finish the dissertation. She collected the data from the field. She finished the bachelor degree so the doctor was.
2. Find a roommate
This is easiest option to make money. You can make $500 to $ 1500 a month. To find a roomate, you can use the newspaper, Craigslist, and other. You can also ask your classmate who need a room. When you post the ads, some people may call you and ask about roommate. Perhaps they need a room that is cheaper. They may negotiate the price of the room. If they feel good, they will pay the room.
Make sure your roommate is a kind person. You can check the criminal background the roomate candidate. Interviews the room candidate before you decide to accept them. Your roommate candidate will not object if you ask some question. You can appraise from the answer and the way he or she answers your question.
If you get good roommate, you will get benefit too. Some roommate may become your best friend. They will help you when you need something. You can also talk to your roommate when you feel lonely. It is better than you are alone.
Some people cannot live with other person so they are better not to find roommate. Perhaps the roommate makes them mad.
3. Stream passive income
Do you want receive income when you sit or sleep? The income is passive income that you do not need to work hard to get it. Receive the dividend from company stock or a business, get royalty from the book, receive tenant fee from the renter - there are a lot opportunities to stream passive income.
If you have much money, you can invest your money to profitable investment. You will receive the dividend once a year. Research any investment first before you invest your money. There are some financial consultants who can help you. The experienced consultant will help you to boost your income.
The hard job of streaming passive income is the up front work. You should spend more money or time for it. The investor who want stream income from dividend needs much money. The book writer who want the book published must spend time to write word by word. They must do also some research for the book. Creating passive income is not easy but you should try it.
If you have property, you can lend your property. Some homeless people try seeking house for rent because buying house is more expensive. You also lend your car o your fiend or neighbor. In my country, rent car is a good business because not all people can buy the car. They like hire the car for holiday at the weekend.
4.Drive for money
This is not little jobs. A full time driver can make $50,000. A employee or student can take the saturday or sunday delivery which average salary $300 per week. If you can ride bicycle, you can also work as a courier. We can send some food or mail to the office. You can make $800 per week. It
To apply the jobs, you need to appeal the commercial driver license. It is not easy to get the driver license. Sometimes we should examine over many times to get it. The police just give the license o whoever deserves to get driver license.
5. Buy Franchise
Are you confused in starting business? Why do not buy franchise. The franchise owner will guide you to start the business and make profit. Hey also help you to promote the business to other people. Most franchise has been recognized by people so you do not have to promote your business.
However, it is not cheap to buy the franchise. For example: a restaurant franchise require cash ranges $ 92,050 to $ 222,800. You need to save your money or salary first to buy the franchise.
The franchise is easier than starting a new business. In my country there is a franchise business. The fail ratio is only 9% and more than 80% success in the business. The franchise business is about selling Turkish Kebab. The franchise has grow over many times and it also build some branch in Malaysia and Philippine.
Read Also
Top Financial Planning Tips
How to manage finance when you are between the jobs
Benefit Passive income
Photo by : Alesist
Sunday, January 20, 2013
The Truth about Debt Consolidation
Due the economic tight, they need money for consume or other things. Some people borrow money to unsecured loan such credit card because the approval process is easy and they will get money soon. They do not have to guarantee your asset to unsecured loan; however, most unsecured loan charge high interest. They use credit card to buy anything and finally the bill bubble. They are difficult to settle the debt because they have no money. A telephone call often disturb them o pay the debt payment soon and it make you mad.
Some people choose debt consolidation in order to settle the debt. They think the debt consolidation will help to settle the debt. They will pay the debt with low payment each month so they can pay off the debt and they still have money to fulfill monthly expenses.
However, some finance experts doubt in debt consolidation. Only few people are success to settle the debt with consolidation. Debt consolidation does not work for most people though the debt consolidation sounds great. We can negotiate the interest that increases your debt.
I agree with Dave Ramsey’s argument that the debt consolidation makes money off of you. Who are people want to loss in their business? I do not think there are no people who want loss in its business. So the creditor does not want to loss too. They will find a way to return back their money with the interest. It is better than the debtor will not pay their debt.
For example you have debt $30,000 that consist a two year loan $10,000 at 12% and a four-year loan at 9%. The monthly payment for $10,000 loan is $517 and $583for $20,000. You need to provide a least $1000 a month for your debt only. It must be hard to provide thousand dollars a year.
With debt consolidation scheme, you do not have to provide $1000. Perhaps you just pay $640 per month on 9% interest by negotiating to creditor and rolling into one. However it does not mean decrease your debt but you should pay more. The lower payment means you longer the loan. You will pay $46,080 to pay off the loan. Just pay “only” $ 40,392 if you pay $1000 monthly. The difference is $5,688 that you should pay if you decide to use debt consolidation.
Do you want to pay more? Some people think they can settle the debt if the creditor ease them. To me I will settle the debt soon. I contact the creditor to pay off the debt soon. I will sell my asset such as stock mutual fund or precious metal and tight budget to reduce the monthly asset. I will not go eating out unless I pay off the debt. I prefer to pay the debt than eating out.
Read Also:
Some people choose debt consolidation in order to settle the debt. They think the debt consolidation will help to settle the debt. They will pay the debt with low payment each month so they can pay off the debt and they still have money to fulfill monthly expenses.
However, some finance experts doubt in debt consolidation. Only few people are success to settle the debt with consolidation. Debt consolidation does not work for most people though the debt consolidation sounds great. We can negotiate the interest that increases your debt.
I agree with Dave Ramsey’s argument that the debt consolidation makes money off of you. Who are people want to loss in their business? I do not think there are no people who want loss in its business. So the creditor does not want to loss too. They will find a way to return back their money with the interest. It is better than the debtor will not pay their debt.
For example you have debt $30,000 that consist a two year loan $10,000 at 12% and a four-year loan at 9%. The monthly payment for $10,000 loan is $517 and $583for $20,000. You need to provide a least $1000 a month for your debt only. It must be hard to provide thousand dollars a year.
With debt consolidation scheme, you do not have to provide $1000. Perhaps you just pay $640 per month on 9% interest by negotiating to creditor and rolling into one. However it does not mean decrease your debt but you should pay more. The lower payment means you longer the loan. You will pay $46,080 to pay off the loan. Just pay “only” $ 40,392 if you pay $1000 monthly. The difference is $5,688 that you should pay if you decide to use debt consolidation.
Do you want to pay more? Some people think they can settle the debt if the creditor ease them. To me I will settle the debt soon. I contact the creditor to pay off the debt soon. I will sell my asset such as stock mutual fund or precious metal and tight budget to reduce the monthly asset. I will not go eating out unless I pay off the debt. I prefer to pay the debt than eating out.
Read Also:
Friday, January 18, 2013
How to avoid bankruptcy
Due to the despair economic, some people are forced to declare bankruptcy. They have no money to fulfill their basic need such food, cloth, and other. Some people are fired by the company. Every company should decrease the productivity and they should also minimize the employee expenses or employee salary.
Of course the employer will be difficult to pay the debt especially the employee who has much debt. They have no money to pay the debt because the company has fired them.
This is not a good news. By filling bankruptcy, the people will be difficult to reach wealth. Here are some tips to avoid bankruptcy:
1. Debt consolidation
Some careless people borrow money and they think they can pay the debt. Unfortunately, the crisis makes the interest rate high. If you have so much money, you can decide to debt consolidation. You can select the low payment and the low interest. It may enlighten your spending. However, you will need more time to settle your debt.
If you have much cash, you have to pay all debt immediately because he interest rate might increase over many times next
Be careful to find debt consolidation, Sometimes it loads you. The debt consolidation does not work for every people.
2. Talk to the creditor
If you borrow the money from family, you can talk to them. I believe your family will understand with your trouble. Certainly, you should be honest to your family. Do not lie to them because they will not lend some money to you.
Contact the creditor that you are difficult to pay the debt recently. You can ask them to enlighten the payment. You can pay the interest first and pay the principal when you have much money.
It is not easy to talk the creditor but you should try it. The creditor may be difficult to approve your request because they may have no money. The kind creditor may help you.
If you borrow the money from the bank or financial istitution, you have to write the letter. Tell to the bank that you are in difficult condition but you will pay the loan when you have money. The bank may ask you to pay the interest first and you should pay the principal later.
It is impossible to cut your debt. Debt is still debt that you should pay. You will not run from your obligation to pay the debt.
3. Sell your asset
When the people have so much asset, they will sell the asset to avoid bankruptcy. They can payoff the debt with the asset. Perhaps you have two car in your garage. Sell one of them to pay off the debt. You can sell both of them if you are able to go o office by bus or train. When you have money, you can buy again. You can also find some antique in your warehouse. Perhaps you can sell it at antique store.
The gold bar is the most liquid asset. While the gold price is so high, you can sell to generate much profit. Perhaps you still save some gold bar and jewelry, you can sell it. If you do not want to loss them, you can pawn the metal a pawn shop and get cash from it. If you want the gold back, you should redeem the gold a pawn shop. The pawn shop may get benefit from his transaction and you should pay it. However, you get some cash from the pawn.
Surely, you can sell the investment asset such as stock, bond, mutual fund, and ETF. You may not take benefit from selling your investment but you can use the money to settle the debt soon. In my opinion, we should prioritize paying debt than investing. After settling the debt, you can put your money to investment again.
Selling asset is a good way to avoid bankruptcy. You may loss some asset but you can avoid bankruptcy.
4. Create a tight budget
Seek out the ways to trim down the spending side on your budget. Earmark some money to settle your debt. Reduce the spending that you can. See your budget list and find some item that is not too important.
For example: You can reduce the eating out. It can save hundredss dollars a month. You will not die when you stop eating out. You are better to cook the food at your home and eat it. It is more health than eating out.
You can trim down the food spending by:
- Buy in bulk to reduce your food and beverages spending. The supermarket gives rebates for buyer who buy in bulk. You can also save your gasoline cost too.
-Use the coupon to cut the food cost. You can get free product too with the coupon. Some coupon may cut a dollar but it may help you too. There are some coupon in newspaper, magazine, internet and else. You are better to hunt I and buy the item that you need. Do not buy item that you do not need even one penny because you will burn your money for something that you do not need it.
If you buy cloth every month you can reduce the spending. Buy the cloth once in two or three month. It can save hundreds dollars a month. You can also buy cloth when the sore give the discount. Try finding some coupon from internet.
Some people usually go to office by car. This habit is very expensive because you need to buy the gasoline everyday and need money to maintenance it. They can consider go to the office by car or electric train because it is cheaper. You can use the car at the weekend only.
You should obey the tight budget which means you should not spend more than the budget. On the other hand, you are needed to earn more than the budget. When you can earn more money you can avoid yourself from bankrupt.
Thursday, January 17, 2013
Money Management Easy
Some people may be difficult to manage the money. They have high salary but they cannot fulfill the living cost. The money management is not difficult as your imagine. On the other hand, the ordinary clerk who has lower salary can fulfill the need moreover hey can save few dollars from her salary. The clerk can buy house and car because they can manage the money well.
Some people have to much money and they are confused to use the money. They just spend the money for something that they actually do not need it. They supposedly could make more money by investing in stock or precious metal.
You can manage the money easy by following these steps below:
1. You should know the net worth
How much your net worth now? You must have asset such as house, car, motorcycle, computer, furniture, and else. Separate the asset that you do not have it. Remember, Do not list the house that you hire in your asset list because it is not your own. Car that you have not finished the payment is not also your own but he lease company own he car. You will have he car when you have finished to the credit. Sum the entire of the assets.
The assets reflects of your wealth. People are said rich if they have so many assets. On the other hand, the poor man has only few assets.
Asset is your capital and is very important for your live. You can use it to make more money. For example, you can lease your house to other people. Perhaps other people need your car to go somewhere and you can hire your second car. The tenant will pay you after their return the car.
The stock or other invest is also your asset. Calculate the asset base the market value not the nominal value. Check the market value of your stock today at the internet.
Then check how much debt you have. Perhaps you have debt to your buddy or brother. List the it to your total liability including your mortgage, car lease, notebook credit and else. Substracts the total assets with the total liability that result net worth. The positive result means we have a health net worth. We hope the net worth is high.
2. Track your spending
Track the spending once you spend the money. You can record the spending every night in your notebook, notes, and others. At the end of the month, you can consolidate all of your spending and write it at the spreadsheet.
The important of tracking your spending to know how much money that you spend. You can also recognize the important spending or less important spending. Separates the need with want to slahs the spending. The need is something that you really need and ignore it can harm for your life, example, food, cloth, education, health, and others. On the other hand, the want is something that you may not need it. You will not die when you do not get it. For example, eating out, cinema, video, leisure, and others. It is important to reduce the want especially you have no much money. You are better to allocate the money for saving or investment.
Begin with food expenses. Here are some examples of your food spending such as: cereal, milk, bread, vegetable, chicken meat, meat and others. Collect the note of your food spending. It is not difficult job to do it. Then you can track your cloth spending. How much you spend for cloth. No all people buy cloth every month. They may buy once in two month.
You should also track your debt payment every month because it is also your spending. If we have much debt, we should reduce it. Some people prefer to pay the debt first than other expenses because they know the debt also if we do not pay it. The interest makes your debt grow.
You should not spend all money for food, cloth, and debt. You can also consider saving. Saving is also spending though you will use the money one day. Do not save at the end of month because you will not save any penny. Set some dollar at the beginning of the month for saving.
You are better to provide cash for emergency fund. Sometimes we must spend money that we have not predicted before. The amount of emergency fund is six time of your monthly spending.
3. Where you invest your money
Most people invest the money to the real asset such property, crop land, car and others. Those investment may not give the high return as the stock or bond. However, those assets can save the value of your money due the economic tight. The stock price or bond price may decline but the real asset‘s rice never decline. The land’s price never decline year to year. The land’s also has no depreciation so we do no have to spend money to maintenance the land. Beside the land, people also invest the money to property such as house, apartment, hotel, farm land and others.
You should invest not only in one investment only. Spread your money to various investment and create the portfolio. It can help you to protect your entire assets. When the economic down, financial asset will also down too. Fortunately, the real asset increase over many times. The real asset may save your wealth. The real asset price has been increasing recently.
A Clever people will invest the money o various investment. They do not depend on one investment only. Some people just invest in one type investment only. Recently, some people invest heir money in gold only due the return of gold price is so high. Someday the gold price decline and they will suffer loss from it. Recently, the gold price is not good as the last year. Perhaps the demand of the gold has declined. However gold could keep the value of our money.
Read Also :
How to organizes Finances
How debt influence net worth
Four Financial Goal Mistakes
Some people have to much money and they are confused to use the money. They just spend the money for something that they actually do not need it. They supposedly could make more money by investing in stock or precious metal.
You can manage the money easy by following these steps below:
1. You should know the net worth
How much your net worth now? You must have asset such as house, car, motorcycle, computer, furniture, and else. Separate the asset that you do not have it. Remember, Do not list the house that you hire in your asset list because it is not your own. Car that you have not finished the payment is not also your own but he lease company own he car. You will have he car when you have finished to the credit. Sum the entire of the assets.
The assets reflects of your wealth. People are said rich if they have so many assets. On the other hand, the poor man has only few assets.
Asset is your capital and is very important for your live. You can use it to make more money. For example, you can lease your house to other people. Perhaps other people need your car to go somewhere and you can hire your second car. The tenant will pay you after their return the car.
The stock or other invest is also your asset. Calculate the asset base the market value not the nominal value. Check the market value of your stock today at the internet.
Then check how much debt you have. Perhaps you have debt to your buddy or brother. List the it to your total liability including your mortgage, car lease, notebook credit and else. Substracts the total assets with the total liability that result net worth. The positive result means we have a health net worth. We hope the net worth is high.
2. Track your spending
Track the spending once you spend the money. You can record the spending every night in your notebook, notes, and others. At the end of the month, you can consolidate all of your spending and write it at the spreadsheet.
The important of tracking your spending to know how much money that you spend. You can also recognize the important spending or less important spending. Separates the need with want to slahs the spending. The need is something that you really need and ignore it can harm for your life, example, food, cloth, education, health, and others. On the other hand, the want is something that you may not need it. You will not die when you do not get it. For example, eating out, cinema, video, leisure, and others. It is important to reduce the want especially you have no much money. You are better to allocate the money for saving or investment.
Begin with food expenses. Here are some examples of your food spending such as: cereal, milk, bread, vegetable, chicken meat, meat and others. Collect the note of your food spending. It is not difficult job to do it. Then you can track your cloth spending. How much you spend for cloth. No all people buy cloth every month. They may buy once in two month.
You should also track your debt payment every month because it is also your spending. If we have much debt, we should reduce it. Some people prefer to pay the debt first than other expenses because they know the debt also if we do not pay it. The interest makes your debt grow.
You should not spend all money for food, cloth, and debt. You can also consider saving. Saving is also spending though you will use the money one day. Do not save at the end of month because you will not save any penny. Set some dollar at the beginning of the month for saving.
You are better to provide cash for emergency fund. Sometimes we must spend money that we have not predicted before. The amount of emergency fund is six time of your monthly spending.
3. Where you invest your money
Most people invest the money to the real asset such property, crop land, car and others. Those investment may not give the high return as the stock or bond. However, those assets can save the value of your money due the economic tight. The stock price or bond price may decline but the real asset‘s rice never decline. The land’s price never decline year to year. The land’s also has no depreciation so we do no have to spend money to maintenance the land. Beside the land, people also invest the money to property such as house, apartment, hotel, farm land and others.
You should invest not only in one investment only. Spread your money to various investment and create the portfolio. It can help you to protect your entire assets. When the economic down, financial asset will also down too. Fortunately, the real asset increase over many times. The real asset may save your wealth. The real asset price has been increasing recently.
A Clever people will invest the money o various investment. They do not depend on one investment only. Some people just invest in one type investment only. Recently, some people invest heir money in gold only due the return of gold price is so high. Someday the gold price decline and they will suffer loss from it. Recently, the gold price is not good as the last year. Perhaps the demand of the gold has declined. However gold could keep the value of our money.
Read Also :
How to organizes Finances
How debt influence net worth
Four Financial Goal Mistakes
Monday, January 14, 2013
7 Steps in creating personal financial plan
When someone travels to a place, they have to build the plan first. They should provide cash, the baggage, passport, visa, and others. We have to provide enough cash so we can buy ticket, food and cloth. We do not wan loss in a strange place and without any penny.
I believe that we should also build or create a personal financial plan. People should have a financial plan for their future. To create a personal financial plan, you can follow these steps below:
1. Compute the net worth
Net worth reflects the wealth of someone. The net worth is the excess of asset to the liabilities. It is not difficult to calculate it. First, you can list the entire asset that you have such as, cash, marketable security, house, car, property, and others. Counting the cash is not difficult. You compute the cash in your wallet and your bank account. On the other hand, you must be difficult when you should calculate the property and house price. You should compare the price to the similar assets. For marketable security, you can compute it as the market value of the security. For example, you have one thousand sheet of communication company stock that price is $20. The total net asset of security is $20,000.
Second, enlist the entire of debt such as notes, mortgage, lease, credit, and others. Place the short term at the first line of the debt. The short term is the debt that you should settle at least one year.
Third, subtract the entire of your asset with your liability. The result should be positive which means you have more asset than the liability. If the result is negative you have to improve it immediately. Next time, you should decrease your debt to improve your net worth.
2. Check the acid ratio
Compare the debt with your income. The debt supposedly must be lower than the income. The debt is not more than 30% of the income. If the debt is so higher, you have to reduce the debt soon or it will harm for you. High debt may charge you to your spending. You should allocate more money to debt. The higher acid ratio could make you bankrupt. You cannot pay the debt and you cannot fulfill your basic need such as food, cloth and house.
Reduce your debt fast as you can and do not borrow money again.
3. Analyze your cash flow
Recognize from where the cash inflow? We usually get the cash inflow from the salary. Perhaps you stream cash inflow from other sources such as business profit, royalty, goodwill, and others.
On the other hand, recognize your cash outflow? For what the money you have get? You must spend the money for food and beverages. Track the food expenses each month. There are some monthly spending such as, cloth, mortgage, credit, kid education, and others.
The Cash outflow is better lower than the cash inflow. It means you still hold some money. On the other hand, you should be careful if your cash outflow is higher than you cash inflow. You should increase the cash inflow as you can or you can reduce the cash outflow.
4. Manage risk
Life is full of dangerous but we can reduce it. Some people may buy insurance to protect their risk. They buy life insurance to protect their family and hope the family have sufficient fund when they died.
Managing a risk is not only buying insurance but also creating portfolio. Invest your money to various investment such as stock, bond, ETF, mutual fund and else. It may reduce your risk in investing. I prefer to invest my money at various investments than buying insurance. In my opinion, it is cheaper. When you buy insurance, you must pay some fee and transaction fee and the insurance company invest it a various investment.
5. How much money that you invest
This is important part of the financial plan. The investment is important for the future. It can fulfill the future expenses such as retirement, kid education, house, and others. If we have so much money, we can invest I to so much investment. More money you invest, more money you will get.
Should we invest the entire of money? Off course, we should not invest all money. We need some cash to buy something or we need it to buy our debt. We also allocate some money for emergency fund that help us when we need money.
The money that we can invest is the income residual after we allocate to monthly expenses and saving. If we got so much money from other revenue, we can invest it.
6. Assess the risk tolerance
Are you dare to invest your money at the high risk investment? Most young man dare to take the high risk because they still young and they can make money fast. When they fail in one investing they can find money. On the other hand an old man should think over many times in investing at high risk investment.
The risk tolerance will determine how much money that you will invest. People who dare to take high risk may get high return. We cannot blame someone who chooses low risk. They can invest at safe investment or low risk investment. There are some test to asses your risk tolerance and you can use it.
7. Assess asset allocation
What is the portion cash to the assets? The cash is very important but having too much cash is not profitable. You should diversify your asset to various asset either real asset or financial assets. Some experts suggest selling the investment such as stock, mutual fund, ETF, and bond. Use the money to buy real asset such as land, property, or cattle. Unlike financial assets, the real assets price is not volatile as the financial assets. You can also sell it when the price is high. Use the real asset to makes money by renting it. Not all people can buy a house so they can hire your house. People prefer to hire the money rather than buying it because the house price is so high.
read more :
5 ways save to food
I believe that we should also build or create a personal financial plan. People should have a financial plan for their future. To create a personal financial plan, you can follow these steps below:
1. Compute the net worth
Net worth reflects the wealth of someone. The net worth is the excess of asset to the liabilities. It is not difficult to calculate it. First, you can list the entire asset that you have such as, cash, marketable security, house, car, property, and others. Counting the cash is not difficult. You compute the cash in your wallet and your bank account. On the other hand, you must be difficult when you should calculate the property and house price. You should compare the price to the similar assets. For marketable security, you can compute it as the market value of the security. For example, you have one thousand sheet of communication company stock that price is $20. The total net asset of security is $20,000.
Second, enlist the entire of debt such as notes, mortgage, lease, credit, and others. Place the short term at the first line of the debt. The short term is the debt that you should settle at least one year.
Third, subtract the entire of your asset with your liability. The result should be positive which means you have more asset than the liability. If the result is negative you have to improve it immediately. Next time, you should decrease your debt to improve your net worth.
2. Check the acid ratio
Compare the debt with your income. The debt supposedly must be lower than the income. The debt is not more than 30% of the income. If the debt is so higher, you have to reduce the debt soon or it will harm for you. High debt may charge you to your spending. You should allocate more money to debt. The higher acid ratio could make you bankrupt. You cannot pay the debt and you cannot fulfill your basic need such as food, cloth and house.
Reduce your debt fast as you can and do not borrow money again.
3. Analyze your cash flow
Recognize from where the cash inflow? We usually get the cash inflow from the salary. Perhaps you stream cash inflow from other sources such as business profit, royalty, goodwill, and others.
On the other hand, recognize your cash outflow? For what the money you have get? You must spend the money for food and beverages. Track the food expenses each month. There are some monthly spending such as, cloth, mortgage, credit, kid education, and others.
The Cash outflow is better lower than the cash inflow. It means you still hold some money. On the other hand, you should be careful if your cash outflow is higher than you cash inflow. You should increase the cash inflow as you can or you can reduce the cash outflow.
4. Manage risk
Life is full of dangerous but we can reduce it. Some people may buy insurance to protect their risk. They buy life insurance to protect their family and hope the family have sufficient fund when they died.
Managing a risk is not only buying insurance but also creating portfolio. Invest your money to various investment such as stock, bond, ETF, mutual fund and else. It may reduce your risk in investing. I prefer to invest my money at various investments than buying insurance. In my opinion, it is cheaper. When you buy insurance, you must pay some fee and transaction fee and the insurance company invest it a various investment.
5. How much money that you invest
This is important part of the financial plan. The investment is important for the future. It can fulfill the future expenses such as retirement, kid education, house, and others. If we have so much money, we can invest I to so much investment. More money you invest, more money you will get.
Should we invest the entire of money? Off course, we should not invest all money. We need some cash to buy something or we need it to buy our debt. We also allocate some money for emergency fund that help us when we need money.
The money that we can invest is the income residual after we allocate to monthly expenses and saving. If we got so much money from other revenue, we can invest it.
6. Assess the risk tolerance
Are you dare to invest your money at the high risk investment? Most young man dare to take the high risk because they still young and they can make money fast. When they fail in one investing they can find money. On the other hand an old man should think over many times in investing at high risk investment.
The risk tolerance will determine how much money that you will invest. People who dare to take high risk may get high return. We cannot blame someone who chooses low risk. They can invest at safe investment or low risk investment. There are some test to asses your risk tolerance and you can use it.
7. Assess asset allocation
What is the portion cash to the assets? The cash is very important but having too much cash is not profitable. You should diversify your asset to various asset either real asset or financial assets. Some experts suggest selling the investment such as stock, mutual fund, ETF, and bond. Use the money to buy real asset such as land, property, or cattle. Unlike financial assets, the real assets price is not volatile as the financial assets. You can also sell it when the price is high. Use the real asset to makes money by renting it. Not all people can buy a house so they can hire your house. People prefer to hire the money rather than buying it because the house price is so high.
read more :
5 ways save to food
Monday, January 7, 2013
Save For Big Expense
Some people prefers to borrow the money for the big expenses. Due the downturn economic, it is not good to borrow or lease. Alternatively, you can save first the money for big expenses, such as plasma TV or stereo. Here is how to save for big expenses:
1. Set aside your money from your paycheck.
People usually earmarks the 10% for the salary. You need to earmark additional money for big expenses. Do not use the saving for big expenses because it will disturb your long term goal.
2. Work overtime to get extra money.
If your boss want to work overtime, you should take this opportunity. The boss will give you bonus that you can use for big expenses. We can work for three or four hours which every hours you work get at least $10.
3. Stream other income
Try to find other income source. It may helps you to salt away the money for big expenses. You can open a business to save the money.
4. Garage sell
See useless items in your garage. Open a garage sell to get some money. Your neighbors or other people may need your items or stuff. You may get hundreds dollar and your garage will be clean from the items.
You can also sell the stuff online. If you have eBay account, you can sell it. Sometimes the people dare to buy your stuff higher.
5.Slash your grocery spending
The grocery may be your biggest spending every month. Grocery can trim down your food spending.
6. Avoid credit card
I do not know why people want to use credit card with high interest. You can reduce the number of credit card.
7. Prioritize what your needs rather than what your want
Do not push yourself to buy stereo or plasma TV if you have no much money. You must be suffered to work hard for the useless stuff or items. You are better to invest your money first. When you have so much income, you can buy all things that you want.
8. Research the items price
Seek out the place where sell the items cheaper. You can try to visit some website to compare the prices. Ask your friend who ever buy the items. Some stores may give you discount or rebates.
You can also consider to buy the used items that is cheaper than the new.
9. Be Patience
You need to be patients to collect to save money for big expense.
1. Set aside your money from your paycheck.
People usually earmarks the 10% for the salary. You need to earmark additional money for big expenses. Do not use the saving for big expenses because it will disturb your long term goal.
2. Work overtime to get extra money.
If your boss want to work overtime, you should take this opportunity. The boss will give you bonus that you can use for big expenses. We can work for three or four hours which every hours you work get at least $10.
3. Stream other income
Try to find other income source. It may helps you to salt away the money for big expenses. You can open a business to save the money.
4. Garage sell
See useless items in your garage. Open a garage sell to get some money. Your neighbors or other people may need your items or stuff. You may get hundreds dollar and your garage will be clean from the items.
You can also sell the stuff online. If you have eBay account, you can sell it. Sometimes the people dare to buy your stuff higher.
5.Slash your grocery spending
The grocery may be your biggest spending every month. Grocery can trim down your food spending.
6. Avoid credit card
I do not know why people want to use credit card with high interest. You can reduce the number of credit card.
7. Prioritize what your needs rather than what your want
Do not push yourself to buy stereo or plasma TV if you have no much money. You must be suffered to work hard for the useless stuff or items. You are better to invest your money first. When you have so much income, you can buy all things that you want.
8. Research the items price
Seek out the place where sell the items cheaper. You can try to visit some website to compare the prices. Ask your friend who ever buy the items. Some stores may give you discount or rebates.
You can also consider to buy the used items that is cheaper than the new.
9. Be Patience
You need to be patients to collect to save money for big expense.
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