Previously I have discussed that making financial planning that’s actually easy if you attempt to try and run it. As for which is the basis of all planning is the habit of doing the recording.
Next, we can arrange finance family planning or budget and monitor its implementation.
At this time, I’ll discuss how to put together a budget for your family or personal finances.
For you who are not familiar with the term economics or accounting, budgeting for financial planning said the family feels it is too much. Isn’t it necessary for budgeting financial planning country such as drafting BUDGET? Or budgeting a minimum required by the company to predict profit and loss in the coming years?
True, the budget that I am referring to more or less as it is. The difference is this time we will be drafting the budget for family finances. In a simple budgeting is the process of compiling the budget, both the funding that goes and comes out. More specific related financial planning budgeting is the process of family, arrange and plan how much revenue you generate in a specific time period, and how many expenses to be spent over the same period. With budgeting, you can see whether the current financial surplus, breakeven, or minuses. The good news is: with budgeting, at least the conditions imposed in order that you can at least break even.
Financial problems are commonly experienced by young families, especially in the first years of living the life Not to mention the little one soon comes in the midst of you and your partner. Is it true that the problem lies from family income?
“Often the problem is not located on the income is less, but the habit is wrong in managing the money,” expert financial in a some time ago. It turns out, in fact, a father who earn hundreds of millions of dollars could be experiencing shock when finding the money to stay at $ 500 before the end of the month.
Linage give some keys to managing their finances are simple:
- Understand your family’s financial portfolio. Do not let You do not know the contents of the savings, the number of utility bills, telephone, car services, shopping, doctor’s check fee, and others. You should know how much credit card debt, bank loan or mortgage the House and car.
- Arrange financial plan or budget. Realistic financial plan helps you be objective about the excessive spending. No need to be too ideal, so forget the needs of yourself. There is no harm in putting the needs of go to the salon, spa or clubbing. An important, realistic amounts and you must comply with the budget.
- think more thoroughly understanding between “need” and “want”. Oftentimes we are spending money for things that are not too important or just driven desire, not a necessity. Make a list in the form of a table consisting of columns for item shopping, needs and desires. After filling the item column, fill in the column “shopping needs” and “wants” with a check mark (V). From here consider with more mature, objects or things you need to buy/fill it or not.
The temptation to consumerist life. But it’s not that easy you purchase various items for credit. Grow a garden healthy financial habits starts from simple, as it does not have debts of consumerist.
- minimize the consumptive spending. Meet old friends to exchange ideas in the cafes sometimes indeed necessary, but does not mean you should do it on every Friday afternoon. You can use this to save expenses or meet the needs of others.
- set goals or financial goals. Arrange financial targets that you want to reach on a regular basis, together with a partner. Set specific goals, realistic, measurable and within the specified period. These goals help you focus more designing financial. For example, aspire to have international standards for preschool education fund and so forth.
- saving, saving, saving. Change habits and mindset. Soon after receiving a salary, set aside for savings in the amount of days you plan appropriate goals or financial goals of your family. Preferably, you have a separate account for savings and daily needs.
- Invest! Of course You will not be satisfied with just waiting for your savings soaring. Whereas your goals for the family “exorbitant”. This is a good time to also think of the investment. Now its messes. Fear of investment risk?! No need to worry, you just need to learn on the experts. Consult your finances with reliable financial experts!
The Primacy Of Capital Market
The economic crisis of 2008 actually could have been avoided if the flow of funds to spur supply housing sector using the instrument-based financial stocks and/or bonds. Not to rely on the means of derivatives. Both the stock and bond instruments have advantages, i.e. in terms of transparency. Whereas the instruments do not yet have a standard raw derivatives in terms of transparency. Similarly, the rules applied in the world capital market and bond market so tight, so everything works under the law or
In addition, the level of efficiency and productivity of the housing sector that was built through the market mechanism is much better and more secure than other markets. Consequently, the pool of funds from the capital markets are really creating a sufficient economies of scale. Thus, a banking capital markets use the funds effectively for the construction of the housing sector is not only going to produce an efficient source of funding but also able to give a very broad impact follow-up.
Other advantages of the construction of the housing sector-based capital markets is no terpsichorean in capital and production factors in the effectiveness of the use of capital thus increasingly effective and efficient. An almost homogeneous price conditions could be kept and maintained in the housing market-based capital market.
Here’s what could avoid the housing industry from economic bubble or bubble. It supported again by the Konstantine between house prices and the stock price of the property sector. Antisepsis condition can occur when the stock price drop property does not run with the price of the property itself so that it requires intervention to prevent the occurrence of the condition of the market bubble.
Kahneman and Tversky (1974) reminds will risk in trading shares of transferability. Kahneman is finally getting the Nobel Prize in Economics. Stock trading in fact is the personification of the theory of Capital Asset Pricing Model (CAPM) where risk can be defined as the risk of the individual and systemic risk. Kahneman has finally received the Nobel Prize in Economics.
Housing Authority of China, for example, try applying the upper limit of the price of the House. That step is necessary when the economy of the people in the country – as seen from the per capita income — not yet in a position to take off as said by Rostow. Or when the lack of income per capita is also very wide. That’s what’s forgotten by the authorities of housing in the United States.
Businessman beginner should be confident and brave to promote new products. Creativity is the key to a successful businessman in the middle of the market to pick up an increasingly competitive business competition.
Betsy Monoarfa of Food & Beverage Association of Indonesia advise beginners to keen businessman glanced at the market that have not worked out by competitors.
Another strategy that is not less important to promote a new product is to actively engage the business community or building.
“By joining the community, businesspeople more easily promote his new product. Your new product can be offered to potential markets collectively with the product other community members. This method also allows businesses in the purchase of raw materials to address the problem of high production costs. With the purchase of raw materials collectively through community effort, the selling price of the product more competitive. One of the difficulties to pick up products in the market so that prices are high because of high production costs resulting from the purchase of raw materials in small quantities, “said Betsy in a talk show about SMESCO SMEs SMEs in the Food & Packaging Expo 2010 some time ago.
In order for your new product is received and began ogled the market, follow the advice Betsy in the Promotion:
Cooperative marketing with hotels
With members of the community effort, you can market the product along with a number of other products that vary by hotel. Of course, you also need to analyze the market, whether similar products are promoted through the hotel that you are targeting.
could be a means of product promotion. Contact PHRI, build cooperation promotion of products, so that your product can be marketed through a number of its member hotels, “suggested Betsy.
On a separate occasion, Cyprian Aoer, Executive Director of PHRI said PHRI opens the opportunity for businessmen to run the promotion of cooperation through its member hotels.
According to Cyprian, tourism also provides opportunities business promotion of local products. Hotel as one of the ingredients, can be a business partner businesses in the vicinity of the hotel stood. Moreover, if the product is raised local distinctiveness. This will be its own selling points as well as regional tourism promotion.
“Come over to the local hotel to bring product samples to discuss cooperation opportunities are right,” said Cyprian told Compass Female some time ago on the sidelines of a seminar about tourism.
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.
Often we believe something that is not necessarily true in reality then, this is what happens to the money. There are some myths or assumptions about the money that is actually wrong but this is our hereditary Jainism truth. The myth that anything, which makes us sometimes blame the money, remember money is not wrong but the wrong Chaitanya. Here are seven myths about money with the facts.
1. Prestigious with credit card
Myth: Credit cards are the stuff that has always saved us from a lack of money and also can add to our prestige in front of friends, especially if we Hold Gold credit card!
Fact: For credit card issuer, you are an easy target to become a customer Those who would give many benefits, you must take the credit card are: credit card interest rate is very high. You need to remember, credit cards instead of more money, let alone rescue, credit cards are a temporary means of payment must be repaid before the maturity date arrives. Many credit card = lots of debt, why not just replaced with a debit card? More prestigious course. And we know the money in the bank. In terms of our money also would reduce the minimum we use instead!
2. Salary is always less
Myth: No amount of money we have, really never seems to get enough Yeah? If wages rise, spending would also go up because of the desire can be fulfilled in line to the addition of revenue.
Fact: Regardless of income that you receive will be sufficient if you use them correctly and consistently. That’s why financial planning is needed through a monthly budget. You can start by noting the incoming money as your monthly income, then write down your needs each month, try to always live up to the standards of your income. Once you get out of line, then you will transmissible, the important thing is not earning as much as possible, but how to make money on an ongoing basis. Better to have enough money, but sustainable than having large amounts of money directly but gone in a flash.
3. Fun on first
Myth: Not yet time for us to think about old age, yet it still happens in a matter of decades ahead again too! While still young and strong to work, we must make the most revenue that we get to have fun. Why should we even bother thinking about the future from now.? Later there is also a husband who is ready to help bear the cost of us? Or heritage!
Fact: The earlier you deposit, the more money collected in the future. Not shall mean stingy to yourself, but at least you have to set aside a portion of income that you received for savings. This will really feel the benefits if you need an emergency fund is very urgent. If you do not have savings, where we have to ask? Parents? Looks like it has not entered our agenda, right?
4. Money can buy everything
Myth: If we have a lot of money, then we will be happy, because we can buy all our desires.
Fact: It is nice if we could satisfy all our desires with the money we have. But remember, not all things in life money can buy. Affection you receive from family, partner or friend would not be replaced with money. Happiness in your life will never be able to be replaced with money, regardless of how many. Therefore, do not make money as the only goal of your life.
5. No time to manage money
Myth: The density of our daily activities to organize the workers, spouse, friend or family could be the reason we did not have time to create and manage a family financial plan.
Fact: Creating a budget will not spend a day, really, you just simply set aside a few hours at the end of the week to begin planning your personal finances. This will not make you lose time for fun or making out with your partner, you can even invite a couple to start talking about it. Do rotundity again, before you regret later.
6. Higher Education = Rich
Myth: If you want to be rich, then continue as high school, the more we spend money on schools, the greater the revenue that we would handful future.
Fact: This myth is not 100% wrong, but also not 100% correct. Clearly, higher education does not guarantee riches that we have later. There are many success stories of those who did not get an education through college and there are many people with higher education, even to school out of the country life is not much different from our local graduates only. What’s important is how we utilize the talents that we have to work or choose an appropriate job.
7. Fortune existing governing
Myth: As hard as we tried to find any money, if not fortune, what can we do? Come take it, everything is set up.
Fact: This is a matter of mindset, if we believe can get a better job with a salary that is more promising, our minds will continue to point to it, so we can get what we expect as the persistence of our efforts. Who else is going to change our destiny but ourselves.?
STEPS TO FORM EMERGENCY FUND
Certainly we’ve listened to the discussion of family financial management series while ago on the topic: “Why Women should Saving?” The discussion which then gives five reasons why women have to save. And at the end of the discussion we have extended that further discussion is about the steps in forming the Emergency Fund, Why? Because if we only know the reason for saving, not complete, for that we need to also discuss concrete measures how to form an emergency fund to be successful in managing the household finances, and we believe that hope for loyal readers of this column. Here we provide 10 steps that you can apply to start saving
1. Calculate all your expenses each month
2. Create an emergency savings fund in the amount of the cost you 3-6 times per month, or the funds for the needs of your family every month.
3. Set aside and little by little from the monthly income, adjust the size of your ability, but at least 10% of your income can be allocated directly to a savings account. Create a married, certainly not for the bigger your salary is relatively intact.
4. Save your money in savings deposits, time deposits, or other investments.
5. Treat this as an emergency funding bill that you must pay each month to be more motivated, so it is advisable if you choose term savings are usually in debit from your savings account automatically every month.
6. Reduce spending that is felt not too urgent, the goal that the emergency fund you quickly collected.
7. Save a dime which is usually derived from the return transaction, because collected could be saving that amount is not small.
8. Restrict access to the emergency fund account so that you are not tempted to use them, Yes, you do have to open a separate account if peritoneal ATM.
9. Do not spend bonuses, holiday allowances or other unexpected income, use as needed and immediately enter into an emergency fund account.
10. Evaluate the amount of expenditure and revenue annually and make revisions to the budget emergency fund in accordance with the current environment. Income rises, the allocation to save also rises, right?
I am sure you will be moved to immediately save more intensively again and feel the sensation when you see the savings account balance continues to have risen. Well, if the emergency fund has been collected, immediately to be invested, you can deposit your money, or to buy precious metals, property, and so forth, of course, with hopes of getting a higher interest rate.
Wait what? do it now, make planning for your future, the earlier you start planning your future, the more easily you achieve and enjoy financial bright in the old days. Many people regret that only when parents bother their children due to “negligence” of his young Keewatin to spend money, you certainly do not want that happening to you, right? Remember time is money, the cash value will now be different from the value of cash tomorrow! That is the value today would be smaller, but if we start saving money wisely now smaller then the present value will be greater later in the day tomorrow. This is the legal principle of saving the economy. For continuation of discussion, we will discuss the following: How to Select Investment Products! that is appropriate for the money you’ve tubes.
good debt or bad debt, they remain a burden to be paid, then any person should not be too easy for the debt. Well within the framework of Mother “brake” husband owes habit, Mother can help by inviting him to a mature consideration before deciding to debt. Some tips include:
1. Review the purpose of debt. think again 3-4 times, do not let emotion overcome common sense.
2. Calculate the first total family income and cash flow you both. Ideally, the amount of funds allocated to pay the mortgage debt not exceeding 30% of your total family income. Before you owe, check once again if there were any allocation of funds to pay for it?
3. Know your financing scheme-2, for example, of a loan or mortgage? Note the procedures and fees / interest charged.
4. Where the source of financing, whether individuals or institutions (banks, cooperatives, etc.).
5. Something that you financed with debt should be something that brings income to repay the mortgage debt. Do not let your debt burden the family income.
6. Consider the risks you face in debt, namely default risk because you lose your income or decrease the risk of collateral value, so no longer able to “cover up” the amount of debt remaining in default when
Investment is one of the most effective way to achieve financial prosperity. In fact, through investment, a person can send money “work”. So, the money to make money. You’re not looking for money, either as workers or entrepreneurs.
That is why someone who should be setting aside some fixed income fixed income to invest that in the future, when in question does not work anymore, still have an income through investment returns. It is the ideal situation investing.
However, in reality, the investment could also make a person lose the prosperity that has been owned. How so? Yes, because the investment also has a dark side associated with personality (personality) a person. Therefore, this paper will discuss some of the dark side so that you avoid the problem in investing.
First, the yield of the trap. There are a thousand and one choice of investment, both in financial markets and real sector. From the sensible to the insane. But for some people, which is used as the indicator is a large yield. That is, if the investment promises lucrative profits, many people who would be interested. In fact, the yield must be accompanied by a big risk too great.
Therefore, in investing, which should be seen not offer investment returns, but how the target return on investment that you want to earn. By custom, if you can earn investment returns twice the rate of inflation, it is considered good. Concretely, if the rate of inflation of 7 percent per year, return on investment of 14-15 percent per year has been very adequate.
Second, the “greed” investment. You would never hear someone who has suddenly become wealthy through stock investments, but then suddenly all become poor again. Why? Only one answer, ie greedy. When a person invests his chosen stocks and shares already reaping capital gains, is likely to begin to be interested in other stocks, which do not necessarily have a good fundamental performance. Other stocks that move was triggered by the price because of market sentiment or ‘fried’ “by dealer stock.