Business and Finance Corner

Archive for May, 2010

Awareness for financial management is very positive, especially if started early

As a first step, setting up an emergency fund or emergency fund first. Emergency funds are the funds needed to meet monthly living expenses until approximately 6-12 months. These funds are necessary if there is something truly emergencies such as prolonged illness or even layoffs.

After an emergency fund collected, then can plan to make short-term financial plans, medium to long term. For example for the short term, aside from the salary scale is for routine needs and savings. While for the short-term financial plan to long, for example, among others, plans to vacation abroad, continue S2/S3 schools, marriage preparation, so plan to buy a home or private vehicle.

The greater percentage of the total salary savings will be better and faster in achieving the plan. On the other hand, if you want to owe, it should be no more than 30 percent of total wages.

If you want to invest, adjusted for risk profile. Do not forget, if we want to invest in high return, of course, will also be a high risk of harm. If you’re still a beginner, we recommend to invest in mutual funds in the past or existing unit-linked life insurance element.

The better our knowledge about the investments, the more we also dare to invest in higher return rate of such shares. For beginners usually a percentage of its investments with low returns (cash) of approximately 70-80 percent and the return of the medium (fixed-income securities) of approximately 20-30 percent of the total funds can be invested. If it still feels less able to provide high return, then you can start to invest in an equity fund of about 10-20 percent of the total funds we can invest it.

Investing in the stock market sometimes still feared by investors. Number of risks faced by investment in capital market related to the global market, was also allegedly one of the obstacles.

1. Recognize capital market products that you own.

In the introduction to the product, one must recognize the risk of what can be generated from the product, what benefits can be obtained, and how much capital must be spent, and how long the results will be obtained.

As we invest in gold, invest in capital markets must also consider when the best time to buy and sell. Since all investment products have their respective advantages and drawbacks of course also exists at too.

2. Do not follow the gossip.

As with other investments, many are also rumors circulating in the capital market. Investors tend to be more confident women gossiping. In the capital market will be a lot of rumors circulating rightly or tudak, they need to be sorted-selected.

3. Suppose the stock exchange as a large mall.

Investing in the stock market can also be done by women, who love to shop. So very, very useful experience of shopping in the capital market. Think of it as the stock exchanges as a mall with all the offers, it all depends on our customers.

When shopping, women prefer a quality of product. In the stock market that means stocks blue chips, which are sometimes in the capital market was also there’s a sale, where some shares are sold at cheap prices but by no means cheap. This means that its shares remain profitable.

4. Pick a good fund manager.

The existence of much-needed investment manager for beginner investors. Pick an investment manager who can really be trusted. Do not forget to select an investment manager who has a good track record, and make sure that we invest money really safe (not lost).

There are some things we can do when we / company / business we have experienced something that is causing customer dissatisfaction. Among them:
1) Do not let the occasional look like a simple problem becomes a big problem. If we already know from the start that something that looks small, but later can disrupt the marketing of the product / service. He immediately began to make repairs before the other party to give a sense of dissatisfaction. And if there is party / consumer who does not like the product / service, we must begin to open for improvement. Not only give-denial denial that sometimes it backfired for us. So it will need customer service center so that problems can be resolved early. As well as a more integrated system of course.
2) If necessary (if indeed an error on our part), give an apology to consumers as early as possible. Then we can also provide compensation to existing customers, such as giving discounts, bonuses, etc., that can calm this suasana.Hal to prevent protracted problems that result in a decrease in the image of the product / service that will affect us in our marketing target.
3) Create events that have occurred as a very valuable lesson. Time to make a better system that later can minimize the errors we do not want.

4) Furthermore, we must focus to immediately carry out repairs and providing more positive information, especially to the consumers / customers / our loyal customers. And continue to do follow-up or communication approach with our customers, for example if we have a fairly comprehensive data base, we can give the holiday greeting, birthday and so on with more intensive. Because it can help us retain our marketing in the long term.

Car insurance is required for almost all drivers. In certain instances where car insurance is questioned as an important purchase, usually youth or financial reasons, understanding the consequence of the lack of insurance usually cures the impulse to forgo it. Protecting a person’s driving record, financial future and vehicle are the top reasons that car insurance, just as life insurance, plays such an important part in a drivers security.

A driving record is tarnished when one is caught driving without insurance. If one is speeding or gets in an accident without insurance there is usually a court date and sever penalties and/or fines for lack of insurance. In the future if a driver wants to purchase insurance with a tarnished record, it will cost more.

A driver’s future financial security is not only at risk when he or she drives without insurance, but also if he or she drives with too little coverage. In a major accident if the responsible party is not insured or under insured, the other party may sue for damages. This includes damages to the people in car, time missed from work, emotional and physical/medical damages. This kind of court case can demand millions from someone who is unable to pay, which will resort in a lifetime of payments to the other driver. In addition to payments garnishments can be made, and assets taken away. A driver risks loosing everything if they are driving without insurance.

The vehicle a driver owns or is purchasing can be covered by insurance, so if there is an accident or mishap, the current value of the car is replaced. This helps the driver stay on the road and makes a past accident less life changing. When a driver purchases insurance he or she should consider limits and full-coverage insurance, if they don’t want to be stranded after an accident. In addition, adding some tow and rental car benefits tend to give the driver peace of mind.

The importance of car insurance is usually understated, while the truth is that it is a life changing purchase. Without car insurance many people can find themselves in community service, with fines and probably going to court. A driving license is affected and it is always harder to get back to life, once one is caught without the proper insurance. Car insurance is a responsibility that a driver not only has to his or herself, but also to society.

Nations and descendants of China has just celebrated the Lunar New Year. Now, according to the myth of China, entered the Year of the Golden Tigers.

Based on the traditions of China, New Year is also a direction for their business and investment. Golden Tiger years is associated with major changes and volatility.

So, what it means for investment?

Combining tradition who believes the fate of China depends on the time or of Feng Shui with market trends, CLSA recently launched an annual statement of Feng Shui Index to see how the investment prospects in 2010, for stocks, commodities and property. Their main message is “This year the turmoil. So stay calm.”

“Year of Tiger is identical to the dramatic change and upheaval,” he delivered in a published report linked the Lunar New Year.

Like a roller-coaster, there is no highest point without being the lowest. However, so you can square off better if you look round before he arrived.

This is perhaps not surprising that the Year of the Golden Tiger symbolizes the valuables themselves. Famous investment institutions, CLSA estimates that in 2010 became the year for gold. In fact, estimates CLSA yellow gold price will set a record at U.S. $ 2,000 per ounce.

“We saw the price will keep rising in the middle of the year,” says the report.

Feng Shui experts, quoted by CNBC, Chua Brandon also has the same opinion. “I think gold prices will continue to rise.”

Other metal products, such as copper, silver, zinc, and aluminum are also expected to rise this year. Meanwhile, other investments related to water, such as shipping and transportation do not look too good.