Pros and Cons budgeting your money

Creating budget is an activity to control the finance. It is similar to a handbook that guide us to spend what we need and find money to fulfill the daily necessity.

In an office, there are two employees who have different salary. Mr. Patrick is a high paid employee in the office who cannot fulfill the daily necessity. The salary is not enough for him whereas Mr. Straw, a lower paid employee, can fulfill the daily necessity. Mr. Straw also invests the money to stock and precious metal. Both, Mr. Patrick and Mr. Straw is married with two children.

Mr. Straw also creates the budget every month. He is very disciplined man and obey the budget. He never takes the credit to fulfill the daily necessities and he has no credit card. He prefers to buy anything cash so he never receive credit card bill letter. He has plan to school the children to medical school or university.

However, the budget also has some weakness. Mr. Straw always creates the budget every month. He always evaluates the budget at the end of the month. Sometimes Mr. Straw should work until late night to make correction.

Mr. Straw's lifestyle changes as the budget has written. He decreases some spending for other spending or investment. He prefers to go to office by bus or subway. He just uses the car at the weekend so he can thrift some dollar. Sometimes he tired to office because he uses subway.

Some people dub Mr. Straw as a miser people. They think he is able to use the car but he does not use it. Mr. Straw supposedly calculates the aggregate benefit of using car or subway. Using car may be expensive but he can arrive in the office early. He does not need to stand inside the subway. Unless Mr. Straw is still young or has health body. Going to office with subway is not problem. If Mr. Straw got sick, he will pay for hospital fee that it is not cheap and he must be rest.

The Mr. Straw should delete some spending because it is not recorded on budget. The budget makes Mr. Straw become spending mindfulness. Mr. Straw supposedly manages to increase the income. He can use the asset such as car to make money. He can rent it to the rental car. When he needs the car at the weekend, he can use it.

How to make your child rich

Some lucky child could be rich whereas they still young. The child rich must get good education from the parents. The parent has success to make the child rich.
In my country, a kid could generate money from his father. The father has taught them investment lesson.
Certainly, you can also make your child rich. To make your children rich you can give them money or you can teach them about business. 
1. Teach them some education
You can direct them to love some science. Explore what your child's talent. Few kid can generate money from games, software, anti virus, and others. Some talented writer have written the book while they were child. The best seller book can generate million dollars. In my country, a pair kid build an English language games for kids. He won the prize. I believe the kids can gain so much money.
2. Buy the land for them
The land price is never go down. It is a good investment for your child future. You can make property or estate above the land. Building a farm crop is also good idea amid the house price is low. Farm crop can produce cereal, fruit, and vegetables that you can it to the market.
3. Buy antique things
Some people can generate million dollars from unique things. There are baseball or basketball that is very expensive. Be sure to buy the original. You can save for your kids now and your kids might sell it someday high price.  
4. School the child
Education is the important things for the kids. Most success people are graduated from university. The university and college does not guarantee you get the right and good jobs. However, the university teach you about how to make money and how to life in this world. Some university start the business rather than finding a job. They prefers to apply the business knowledge from the university. They are more wealth than their friend who work for the company. The university direct them become successful businessman.
5. Investment
Some parent buy blue chip stock for the children future. Those investment can pay dividend every year. Some parent may get spectacular benefit.
In past time. the parent save some precious metal or stone. The kids could be rich by inherit those things. The parent should save it at safest place.
Rich is a destiny according to my opinion. No matter how you try, you still be poor if your destiny is poor. How to make your child rich

Personal Budgeting Concept

To manage the cash flow, some people create a budget. The budget helps people to track where the money go and where the money come from. Most government, municipal, organization also create budget to manage the organization finance. They afraid they missed some spending or income.
Creating a budget is not difficult. You need to understand the budget concept. Here are some concept about budget:


Purpose
Supposedly the budget has purpose. The creator must know what the budget for. Most budget are made for living frugal. He or she should recognize the income and the spending.
The purpose is a corner stone to create the budgeting.We can allocate the income to some spending post. For example, we want go outside. We should allocate our income for vacation that needs thousand dollars. The creator can set on how long we plan to vacation. Perhaps we want go to vacation next three years.
Simplicity
The budget must be simple and you know what the mean of your budget. You can create the budget that different with other people as long you understand about it.
Use the spreadsheet software such as Microsoft excel or open source spreadsheet. Write your revenue items on the top of the spreadsheet and sum of all revenue. You can write the spending below or the following the revenue. Compute all of spending. Last, Diminish the revenue with the spending.
Flexibility
A budget must not be straight. It must be flexible to pay the unexpected spending. For example, we have set the cereal spending a thousand dollars a month. Unfortunately, the cereal price increases 10 percent. Reduce our cereal spending is not reliable you and your family will starve. That is why you have to pay the cereal and use money from other post such as leisure, and saving. At the end of the month, you can evaluate the cereal spending.
Budgeting for irregular income
Some people has irregular income that they can get anytime. The freelancer work usually generate irregular income. They cannot predict how much money monthly. Sometimes they do not get any money but sometimes they get so much money. The budget also consider irregular income that can balance the spending.
For freelancer, they can compute the average of income in a year. Sum of all revenue in a year and then divided with twelves ( the amount month in a year).

How much money that we should allocate on emergency fund?

Every people supposedly has emergency fund that can be used when they have no money. This money important as the capital for finding another job. It is difficult to newly unemployment to find a job when they have no money.
They also can use the emergency to fulfill the daily necessity. Even you have stopped work; you still need food and drink.
So how much you provide for emergency fund. Some finances expert has different opinion about it. The amount of emergency fund will depend of some factors, such as:
The expertness
Some expert employee has a good position in the company and the company is difficult to fire the expert. The expert is an intangible asset for company that has role to widen the business company. They do not have to worry the company will fired him except the company are really bankrupt. The bankrupt company will fire any employee including the experts.
If you are an ordinary employee and the company does not generate return, you should provide big emergency fund. I believe the company might fired you someday. 
Severance
Is your company where you work provides some severance? In my country, most company pay severance six times salary. If your company is very kind, you can reduce the emergency fund and put the money for investment or saving. Some country rules the severance for the employee or labor. However, an outsourced or freelancer will not get it.
Liquid assets
Liquid asset such as cash, precious metal, saving, and other can pay any necessity. These assets can be withdrawn anytime and used for emergency fund. If you have so many liquid assets, you might not need emergency fund.
Various incomes
Some person has multiple incomes from various sources. He or she get the money not only from the salary that the company pay monthly but also the business. They work for the company but they also open a business. The business can generate twice than his or her salary.
Beside business the employee also earn from royalty or goodwill. They create a patent or software that the company should pay it.
The number of family
A man should calculate the family need when calculate the emergency fund. If you have many kids, you have to provide high emergency fund.  The man should not forget what his wife and kids needs.

Pros and Cons Buy in Bulky

People want to save their spending in order to side the bad economic today. One of the strategies to cut the spending is buying in bulky. Some people prefer to buy in a bulk to cut the spending due grocery store offers discount to anyone who buy in bulky. However, some people does not like to buy in bulky. Here are the pros and cons buying in bulky:
Pros
Grocery store or supermarket gives bonus to the buyer who buy in bulky. For example, the buyer gets free 1 bottle milk if they buy two bottle milks. The buyer can save one bottle of the milk. The grocery often gives discount to buyer who buys in bulk.
Save our time
We do not have to go to market everyday because we have buying in bulk. We can use the time for other activity such as leisure, finishing the jobs, and else.
Save the gasoline/gas
Since you do not go to market frequently, you can save the gasoline and gas. You do not have to drive the car to grocery frequently.
Cons
The food is not fresh
If you buy in bulk, you must put the food in refrigerator. The refrigerator can keep the food fresh for few days. If you put the food for week, the food will be dried. The foods such as vegetable and fruit will wrinkle for weeks. Certainly, you cannot eat the dried food and you will throw the dried food.
It needs cost
Since you use refrigerator, you have to pay the electric bill. The refrigerator also can increase the electric bill. Buying in bulk also require the storage. If your house wide, you can storage so many bulky goods.
Less varieties
Most supermarket or grocery offers goods with other goods that we may not need it. They want to sell out unsoldable things with the soldable things. If you think those good are not important for you, you do not have to buy those goods.
Supermarket just sell in bulky for certain goods only. You may not get what you want.

What makes the collectibles expensive

As ordinary people, we must be confused to collector who want pay million dollars for painting whereas the painting is not different with other painting. The painting must be valuable so people want pay it expensive. The collector considers some factors, such as:

1. Old
The old things usually is expensive than the new collectibles. A two hundreds old coin is more expensive than the one hundred old coins.
Most old things are damaged because the material is not durable. A wood can be fragile in hundreds years and a bronze can be crushed in hundreds years too.
Most people do not keep the old thing. They prefer to throw the things than collecting it.

2. The owner
The owner also influences the price of the collectibles. If the collectibles have been ever used by the famous people, the price must be high.  For example, a Saddam's hat is more expensive than the other similar hat.
Some collector also hunt other famous people such as celebrity, politician, world leader, athlete and else. However, some collectibles from famous people sometimes is priceless. If the collectibles has no history value, It will be cheap.
I believe some us people will hunt Osama hat or AK 47 after he died. The collections of Osama could reach million dollars.

3. Limited edition
Some collectibles are made in limited edition, such as, basketball card, baseball card, ring, and others. Those collectibles must be more expensive than other collectibles.
Jordan basketball card must be expensive than other player card. Jordan who is the legendary basketball is printed in limited edition. Only lucky people who get Jordan card's. The card company just print few Jordan card due it is expensive to pay Jordan's royalty.

4. Few supply
The collectibles which is difficult to find is very expensive. The collector will buy expensive for rare collectibles. Perhaps the collector wants to pride the rare collectibles to the friend.
United States collector like collecting civil war collectibles such as sword. The south sword is more expensive than the North sword due its rare. When the war over, most of confederate war were crushed. We know the confederate loss in the civil war and they should eliminate the weapon. Only few confederate save the weapon. that is why the South collectibles is very expensive.
Some people try to change the north collectibles to be south collectibles in order to lift the price.

5. Certificate
When you buy the collectible, you need to ask whether they have the certificates. You can get the certificate from the factory or the collectible organizations. The certificate proves that the collectibles is real. Some collectibles has more than one certificate. Owning more certificates is better.

How employee make additional money while they still work

Today, an employee should be clever to generate money than before. The crisis cause some employee cannot fulfill the daily necessity. Ask to increase salary is impossible due most company also suffer loss. Finding jobs is not a good option too.
However some employee can generate money to fulfill their need. With doing some jobs, they can pay the mortgage, leasing, and other credit. The employee does not need to trim down the food expenses and they may still invest at stock or buy precious metal. Here are some option to add the revenue:

1. Extra hours
Your boss may ask you to work at extra hours. If you are health and strong, you can take the extra hours. The employee will get extra salary from your boss.

2. Teaching at night
Some professional or employee also teaches university or college at night. Teach any subject that is similar to your jobs. For example, a public relation of the company can teach about communication at the university. By teaching, an employee can share the knowledge and experience in the office. Most university need the professional from company to teach at their university.
You can also teach in the morning if your boss permit it.

3. Online business
An employee can open a business online. They can open an online shop that does need much money. They can start beginning the business with dozen dollars only. The employee can get benefit from twitter to promote their business. Working online does not need much time. You can do it after working at the office. You can also use rest time to do some online business. 

4. Be a consultant
Some employee can be a freelancer consultant. My friend is an accounting in a retail store but he also work for the accounting and tax consultant. He often fill the tax form and improve the tax form of some company. 

5. Writing
In my country, a worker from a  bakery become a famous writer. He used to work for the company from morning to the afternoon. He was only a high school graduated that baked the bread. In the night, he write some fiction article and send it to a fiction magazine. Now, he has published dozen fiction books. Surely, he does not work for the bakery company again.
If you like writing, you can also open a blog. Reach so many visitor with your blog and get money from ads or product.