Another example of financial innovation is to have as many assets consumptive than productive assets. Have you seen the merchant who lived in a Shop house, where the bottom floor is used for trade, while the upper floors used as a residence?
That is, a place of business and residential into one. In other words, the merchant houses are not just houses, but has become a productive asset that can generate money, aka the place to do business. What about you? Perhaps you have the house for more than one. And you do not live in the house every month instead drain your pockets because it must pay the cost of electricity and other maintenance costs. In fact, housing conditions continued to decline due to aging and so forth. Concretely, some houses you have not only not productive, but instead become a burden. Therefore, the house must underproduction, in the sense of providing an income, such as leased to another party.
In addition to the house, try to see again those resources you have. Pay attention to whether the asset is an asset just as consumptive, or a mere tool to maintain prestige, or is quite productive. If you have gold jewelry whose value increases, the jewels belonging to the productive assets that can increase your wealth. So also with paintings whose value could be increased. In summary, productive assets are assets that have investment value.
Financial innovation can also be done by way of selection of appropriate investment. Understanding the right investment here is how to send your money “work” for you. So, money making money. How do I? Do the active investment.
Investment is active on a regular basis to select and evaluate investments that have been done. In capital markets, for example, some people buy stock, then keep holding it in a long time, with the hope of obtaining dividends and capital gains. It’s not wrong. However, in this period, could have held the stock price decline in price. Among those who hold these shares may not care or even sell it for fear that stock prices will further decline.
First, commitment. When you settle down, it means you’re ready to share the income for your household. If you are still using the ideology of the individual in your household, it’s no different than life itself. Will ultimately lead to financial problems. Therefore, a commitment to share a foundation in managing family finances. If during this husband and wife was already using the paradigm, income is the right of each, then change the paradigm. Not too late.
Second, determine the financial goals together. How many assets who want to have? How to prepare the child’s school fees? And so forth. Every family has the right to determine their financial goals. However, that being said the key is how to make a priority of these financial goals. Who should relent and what should take precedence.
A simple example is the need for a family vehicle. Could be, because the inequality view of the family of funds eventually run out to buy things that are not productive. The most common is about the car. It could be that the husband wanted the sedan type car. The goal, so if the office could be more stylish. However, the wife wants the type of vehicle that can carry a lot of people because each wanted to travel together his extended family. If there is no meeting point, the family then bought two cars which in fact is not productive.
This sort of thing could lead to swell the funds for the purchase of cars, and can interfere with family financial goals. Therefore, in the context of these financial goals, both parties must be willing to yield real and prioritize the assets that are productive. As for consumer assets should be based on the functions and basic needs, rather than mere desire.
When the above rule not be applicable, or is not sufficient to give the address of the company to one of the Contracting States, the company is deemed to be domiciled in the place where its effective management is to be found or, alternatively, at the site is found to be the main focus of their activity.
When however the rules set forth in this paragraph d) is not possible to determine the residence, the competent authorities of the Contracting States shall settle the question by mutual agreement.
- The term “source of production” in a Contracting State “not interested in the nationality, domicile or residence of the owner or the parties involved in the operations or the place of conclusion of contracts, assets or rights located, placed or economically used in that State, carried out in its territory of any act or activity and the events within its boundaries capable of producing profits, income or profits.
- The term “business activities” refers to activities undertaken by companies of either Contracting State.
- The term “undertaking” means an organization constituted by one or more persons engaged in gainful activity or speculation.
- The terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean an enterprise resident in either Contracting State.
- The term “royalty” refers to any benefits or compensation in money or kind paid for the use or the privilege of using copyrights, patents, industrial designs, procedures or exclusive formulas, trademarks and other intangible assets of a similar nature .