What Should be included in Financial Plan

People should make financial plan that is important for them. With the plan, you will know how to reach wealth. You know what you can prepare for to reach wealth. Without planning, we do not know where we go and we must lose in journey. When we go to in a place, we must prepare the map. We can choose the vehicle to go there. For example, you want to go to a place by car, bus or train.
To make the financial plan, you should include some essential or important element. In financial planning you should also include:

Figure your financial self
Check your financial health. Is the asset higher than the liabilities? Can you fulfill your daily necessity and month spending? Some people has high income but they cannot fulfill their spending. They spend too much money than they can generate.
List the entire of your asset. You may have a house that you stay inside. Guess the value of your house in dollar. You can see the price of the house today. Then, add your car as your asset too. Include the stock and precious notes as your asset. Count the market value of your stock or bond. Perhaps, you save some gold bar at the safe deposit box. You should record it as your total asset. Sum your entire asset.
List also the liabilities. You may have credit card debt, lease car, debt to other people. Record when you will settle the debt. Sum of all liabilities list and compare to the assets. If your asset higher than the liabilities, you are wealth. If, on the other hand, the liabilities is higher than the assets, you are not wealth.
Reach the wealth by reducing the liabilities. You can pay the debt soon for it. Do not borrow money again before your financial condition health. The debt cause your financial worst because you should pay it periodically.


The goal
What is the goal of your financial planning. People goal is to reach wealth. However, this goal is not clear. What is the definition of wealth? Each people have meaning. Some people think the wealth is a man whose has so many houses. Others people said that wealth is money.   We should have a clear goal. For example, we want $ 1 Million for next ten year.
The goals should be attainable. Consider the asset and your net worth. If your net worth is small, you should not set the goal too high so you cannot reach the goal. Calculate the money that you can get in specific time. We should be optimistic but we should able to calculate our ability.
The goal is also realistic. The employee should not set the goal to travel around the world. A common employee should think to reach wealth not leisure. They can set the goal to one place only where they dream to go there.

The budget
Budgeting is very important in financial planning. This tool can help you to reach the goal by the net worth that you have. A budget describe how much income comes to you and how much spending go out from you. Therefore, you can manage the money well.
The useful of budget is to earmark some money for the goal either short term goal or long term goal.For example: We want buy playsation next year. We can make the budget for buying the playstation. Earmark $30 per month, so you will collect $360 at the end of the year.
Making budget is not difficult. You can write what you can spend the last month. There are some spending items such as food, cloth, apartment rent, and others.  We have to eat everyday but we do not have to eat the restaurant because it is very expensive. We can cook the food in our kitchen tha is cheap and is also health. 
Read more
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The role of reduced spending in financial planning

Most article that talks about budget often mention about reducing the spending. We need to reduce the spending to balance our budget. We do not want our income is fewer than our spending. It make us bankrupt. If we have so much spending, we must borrow money from other people or bank. 
Reducing the budget is not easy too. We should be clever to reduce what kind the spending that we can be reduce. It is not wise to reduce the daily necessity such as wheat. For  example, we reduce half of our wheat every month. Your family will hungry when they just eat half of food. Reducing the quality of wheat is also not wise. Your kid may refuse to eat the food.
You can save on food by reducing the food. You can reduce a bit of meat or chicken meat. It is good for your health. Coupon is also a clever ways to reduce the food cost. The coupon can save $20 - $30 per month.
People should reduce the eating out eventhough they like it very much. You can save hundreds dollars in a month.
Before reducing the spending, you need to list all the expenses. We can track the expenses last month. Try to remember the spending that you have been spent last month. We can categorize the needs or the want. We just be able to reduce the unnecessary or unwarranty spending, such as eating out, go to cinema, gadget, and others.
By reducing the spending, we can save more money. By saving our money, we can protect from the uncertainty future. Someday we need the money for our daily necessity. If we got sick, we will need money. The children must also need money for their college.In economic meltdown, we can be fired by the company. We can use our saving to finance our needs. 
We can also earmark our excess money for investment too. The investment is important for our future and It can multiply our money in long term. We can be rich if we invest money at the investment. Unfortunately, the investment return is not good today. The interest rate so low or almost zero. However, some emergency country stock has double digit return such as chinese stock.
Reducing the spending can balance our budget too. If you just low paycheck, you have no choice to reduce the spending. Reducing the debt can make your budget health.

How to save to buy house

Our ancestor live at the cave that can protect them from the wind and rain. They can also protect themself from the animal. As the civilization grow, they need house. A house is where the human can live. Every family need at least a house. They encourage to get the house. Here are some ways to save: 
1. Determine what kind house do you want  This is a important question for you. The house price is different each other, depend on the house type, the size of house, the location, and else. Research a bit about the house that you want to buy. Consider and calculate the time you need to buy the house. You will need more money, when you decide the house later. 

2. Budget for saving You need to earmark your income for your house. More money you save, more better. You can get the house earlier. Increase the income that you can do. If you have a good jobs, you may generate a high salary. If on the other hand, you get bad job, you just get low salary. Find side jobs or second jobs to increase your income. Teaching some knowledge and subject can make hundreds dollar per month.  If you plan to get house fast, you should earmark large money. It mus be heavy for you but i am pretty sure you can do it. 
Open an account that you will not withdraw except for house. You can save 5% from your salary or more than it. Save the money first before you use money for other things except for paying debt.
3. You can reduce the spending. You need to delete unnecessary and unwarranty spending for other purpose. You have better to have a house than watching the cinema everyweek.  there are so many things you can do to reduce the spending, such as: Use coupon to buy food at the supermarket and groceries. It does not reduce the spending much but you can save $20 - $40 per month.  Use the mass transportation such as buss, tram, train, to go to office or school  Use the save energy lamp to cut the electric bill. Turn out the light when you do not need it. 
In the spending side, you should use money for your need only. You can cut the entertainment spending. Find the alternative to cut down the spending. For example, you can start to cook your meals rather than buying the food because your cuisine must be health and delicious than other cuisine.
source :
http://www.ehow.com/how_5832_save-money-buy.html
Photo by: Tax credit

The benefit of move back to your house

Every people dream his or her house where they can live together with his other family.  However, it is not easy to buy house because the price is increasing over many times.  We also face to economic meltdown than influence our money. It is hard to save money now.
Some unlucky person cannot pay the mortgage so the bank may seize the house. They have to find the shelter for their live. Some may rent the house or rent apartment. Of course, it is not cheap; you have to pay the rent monthly or annually so the monthly spending increases.
Here are the benefit that you can get when you moving back:
1. You can save the rent fee or room rent fee. Some people can spend at least 500 per month. Some others spend thousand dollars for it. You do not worry the landlord will ask you to pay the rent.
2. You can save in cleaning cloth.
Your mom may have huge washing machine. You do not have to pay the wash machine or laundry. It can save hundreds dollar a month. Off course, you should provide the detergent. You should also help your parent to fulfill their daily living cost.
3. We can share the light together
You do not have pay much electricity bill high. You can jointly pay the eclectric bill. It must be cheaper than you pay the electric bill alone. 
4. cheaper food spending
You can save some dollar when we live with your family. You can buy in bulk meat, vegetable, fruit, and others that is cheaper than buying in small quantity.They can save those food at refrigerator.
There are so many benefit in moving back to your home. You can also care your parent. However some people does not like to live together with the parent. They are worried that they will depend on the parent. Some parent spoil the children with anything.
They also do not want to move to the parent house which is also small. They worried the family will make the parent bothered.

Hottest trend to make money

Last decades, some people use internet to make money. They believe internet, is a new giant power that make million dollars. With internet, we can sell anything and get commission from it. You can also work for foreign people. Some people collect five dollar from he gigs by doing something.
People try to make money to increase the wealth. They realize that there are some opportunity to makes money. Some things you can do to make money fast. Here are some hot trends to make moneys:

1. Franchise
Some people said that franchise can make money fast. There are some fast food restaurant that offers franchise. Some businessman can generate money for least one year. With the franchise, people can open restaurant easily. The franchise will advice the businessman to found the restaurant. They supply the food ingredient such as chicken, bread, cheese, vegetables, and others. The franchise also provide skilled waitress or they will train your waitress.
The businessman does not need to promote the franchise because they have name and brand. The consumer that loves the brand will come to you.  Most franchise business is success. You just need some money or place for your franchise. The place is very important because it can attract so many consumers to your restaurant.  A franchise in my country said that over 95% franchise can make profit.

2. Writing freelance
Some website hire to write at their website such asassociatedcontent, hubpages, squidoo, infobarrel and so on. Some good member can make dozen or thousand dollar from the website. There are million people try to be freelance writer because it is not difficult. Some foreign people learn english and write the content and submit it to the website.
Some people prefers to build a blog or website to put the content. They can make one thousand or two thousand dollar a month. They can generate money from advertising such as Google Adsense, Yahoo publisher network, and so on.
You can make few bucks buy selling your content. Promote that you can write for some topics. Most blogger does no wan to tire and they hire the freelancer writer who write good article. The website or blogger will hire you again as long you write good article for them.
It is not difficult to write 500 words or a 1000 words article. You may need only twenty or thirty minutes to write the article. You can research the topic by reading the book or website.  You can also offers proofreading service for the amateur writers. Some of them need you to improve the article.

3. Rent a room
Do you have  so much room? You can rent to other people. A student can pay $500 per month for a room. If you have ten room, you can make $5000 per month. You can convert the garage room to a nice room. 
If you live near the college or the industry, you will be not difficult to find the tenant. Most students seek the cheaper room for staying. They just need it the room for sleeping or studying at the night. Most students spend his or her life in the university.
To promote the room, you can sticky the leaflet in campus or place the gigs at craigslist. The student will phone soon to ask the room soon.

4. Freelancer worker
Some employee offerss the jobs on internet. They want some research project done. They do not want to spend time by doing it. They offers to anyone who can finish the job. Some jobs duty just record the website and make a brief description about the website. I believe we can do the jobs easily. The salary may not much as worker as.
Some people also seek the people to make the presentation. They must be busy man so they hire other people to do the job. We can create a good presentation file. The presentation should be write in good English. The content of the presentation should be good too.
The freelancer can also work as virtual assistant. They can work through online. There are so many jobs they can do through online. My brother is an accountant for some company. He does not have to come everyday o the office. He jus comes once a week. He will finish the report at the end of the month and year.
We can work for some boss not only one boss so we can get money from some boss too. Some people work as freelancer than as ordinary worker because they can get more money though they cannot get pension. They can work for boss who can pay more; on the other hand, hey can refuse to the miser boss who do not pay appropriately.

5. Selling online
We can buy a unique things on internet. Some people use internet to sell the old items. Perhaps someone needs old item from us. By selling the items, we can get two benefits i.e, the empty warehouse and the money. You do not have to store the old item that you do not need anymore in your warehouse because it will make your warehouse full.
If we have no item, we can sell other people items. We just promote the items on our blog, facebook, or twitter.  We just get 4% commission from there. If we can sell more items, we can get more commission. Some blogger can make money from selling other people items. I have ever read a blogger can get $3000 dollar because he has sold an old car.
Selling online does not need much money. You just need computer and the internet connection. Then you can build a blog or website. The content of website must be similar to your product that you want to sell. Some people usually research the product before buying anything especially the electronic things. Some bookworm also read the review before they buy the book. They want sure he book is very good and they need to read it.

How to cope when a family member cannot work because ill

Life is unpredictable. We want our body health but sick could attack us. Tough, we have kept our body health by eating health food, doing exercises, and so on. Some company will fire the ill employee because the sick man is not productive anymore. The company will replace the sick man with other man.
The company may pay the last salary and some severance for the ex employee. However, the money may be not enough for the sick man moreover the sick man is head family who responsible for the family. The worst, the wife may have no job. Some wife must apply a new job.  The wife may leave home to support the family. Perhaps a new problem will come. When the mom should work they should leave the kid who needs the mom.
Loosing the main of income source is a bread dream. For a couple months, the family can live from he severance, however, they should cope the situation. Here are some actions that you need:
1.    Use Saving or investment
It is time to use umbrella I rainy day. That is why we save some money. It is time you use the money. You may have some money that you have saved for yearly. The saving may help your finance for a while. However, you should make money before the saving run down.
Investment also can help you in this situation. Perhaps you have so much stock that you have invests for dozen years. You may just receive passive income for investment. Receive dividend yearly without doing anything.

2.    Re budget
Since the income side of budget decline, you have to make some adjustment in expenses or spending side. Trim the spending that you can. You have to reduce eating out that can save hundreds dollar in a month. Hiring the DVD is cheaper than going to cinema.  You have to spend less for entertainment budget.
You should also think to find the alternative income. You can start business now to make money.

3.    Support your family member
Do not blame the sick man but you should motivate him or her. It is not his or her mistakes that he or she suffer sick. The sick need your support and some motivation may help for them. They may recover from sick someday. The support can heal some disease especially psychomatic.

4.    Don’t be panic
Yes, most people will panic if someone ill in this family moreover the family member is the main source of the family income. They think they will not have money and they must suffer. They know they should cut some expenses especially for leisure. 

Panic does not help you. You have to construct the steps to cope your problem.  Stay calm side the bad situation.

source

http://notmadeofmoney.com/blog/2013/02/how-to-cope-when-a-family-member-becomes-ill-and-cant-work.html

How to increase your saving in recession time

At the recession time, people are difficult to make money and they should pay more for spending. Though the boss whose has large factory feel difficult to get money when the recession.
On the other hand, Some people are easily to get money. Here are ways to make money when recession:

1. Take second jobs or side jobs
My friend teach for ten college to raise his income. He just get little money if he just teach a college. He teaches from a college to other college.
Some clerck whose hold master degree also teach at the afternoon. We can get $ 70-$80 each time we teach the college. If you have doctor degree, you will be paid more.
You can work after back to your home. Use your skill to make more money. There are some gigs in internet such as writing. Perhaps you can write article or some article. It is not heavy jobs to do it.

2. Open a business
You can strat the business to make money. Explore what kind business that can generate make money. Some business can make money fast.
Today, people can generate thousand dollars from blog. If you can write great content, you can generate couple thousand dollars in a month. You have to patient to the niche or subject of the blog.
The easy business is selling a thing. You can sell food

3. Generate income from asset
rent your room for hundreds dollars a month. Announce that you need room in the newspaper or craiglist. If you have more than one house, you can rent one of them.
You can also hire your land to the farmer. They can share profit from farm with you. You do not have to pay the tax because the tenant will pay it.

4. Sell Old Items from your house
Go to the garage, roof, or warehouse? Is there something that you can sell. You may change the items with little dollar. If you have some antique, you can get thousands dollars. I saw in pawn stars some people got hundreds or thousand dollars by selling the antique. Selling he antique is better than let it at the warehouse.
Promote your old items at craigslist to get the buyer. You have to promote the items through facebook or twitter.

5. Sell your hobbies
Do you like knitting? Some people can sell the knitting on internet. We can make money from there too. Some woman may need scarf or baby need nice heat.
Mom who can cook cookies may sell the cookies to neighbors. Perhaps they like your cookies because your cookie is very delicious. You can offer other people to buy your cookie. Promote your cookie through website, blog, facebook, twitter, and others.
If you have so much cat, you can sell it to the cat lover. Turn your hobby to business. It is not hard to do that. Raising cat for cat lover is not difficult. They can raise dozen or hundred cats easily.
Some people collect rare edition or old Marvel comics. They can sell it to get dozen or thousand dollars. You need to check your warehouse to see your collection.

It is important to make money in recession times. Try to find the idea to makes money.
read also:
The benefit of recession
Why Financial Planning is necessary
Four financial goal mistakes