Business and Finance Corner

Archive for the ‘Finance’ Category

Dizziness with heaps bills each month, try to apply the following steps

Create a list of debts

Initially quite complicated to merge all documents into one. However, this can allow you to pay all the bills on a regular basis. List in detail the number of each bill, pay each month, and increase interest.  Put in your loan money from friends to your list of debts.

Come on, break your bills

Distinguish the debt trap and can still be tolerated. Mortgages and car installments can be categorized as a debt with a number of bills that keep the same from time to time. Another case with a value of credit card receivables will continue to increase interest and make you more and more hooked.

The main priority

Arrange the highest level of interest charges. Then prioritize your bill payments from a list of debts. Pay all debts as minimum as possible so that the flowers do not hold sped up. Ignore your needs are not too important

Very easy for you to slip in managing finances, if no other person involved overseeing financial affairs. Rather than continue to feel alone taking care of financial problems, why not find a friend to remind each other?

Money buddy is the term to refer to someone you trust, who have financial goals similar to yours. In order for this buddy relationship with money smoothly, follow the following measures:

1. Create an agreement to sit together and share their strategies and investment budgets.

2. Plan regular meetings, eg once a week, to check if you are both still be on the right track. Peel back spending over the last week and encountered obstacles.

3. During the meeting, planned spending for the week ahead. Give the plan in advance to the money your buddy about it, and how much money the plan will be issued. It is useful to help you avoid the temptation to spend more money than planned.

4. Create an agreement to set aside some money each week, if you both managed to comply with the budget plan. Thus, after some time you and your friends can reward themselves with small pleasures, such as outdoor dining or a visit to a spa.

Can not achieve financial freedom as easy as turning the palm of the hand. Especially if you have previously trapped in the entanglement of debt. Follow these step by step, to ensure you achieve your own financial freedom.

1. Commitment
Make a commitment to ourselves. Only you can go and make changes to achieve financial freedom that had been coveted by you, not someone else. View your reflection in the mirror, and imagine your dream figure, especially one who has full control over finances.

2. Assistance
You do not have to go through all these difficulties alone. Discover steppingstone to ask for help from people who understand more about personal finance. Locate relatives, friends, acquaintances, or even professionals who can be interviewed and asked for assistance to resolve your situation.

3. Goal
Declaring a desire to be financially independent is the core statement. You have to set small goals that are more specific to help achieve the ultimate goal. Whatever the path taken to achieve big objectives – ranging from track spending for a month, sets and adheres to financial budgeting, saving certain amount of money for an emergency fund, or pay off credit card debt every month – write down new goals on an ongoing basis so the previous goal is reached.

4. Measured values
If you do not know the value of your sales, how can negotiate a decent salary and make more money? Find out how your value by conducting an investigation into the position occupied by, or ask the people inside. According to Linda Babcock, author of “Ask For It ‘, all things in the workplace is available to be struck, from the project, the increase in salaries, wages, hours of work, responsibility. Overall, he said, could be negotiated.

5. Marketing themselves
If you are not selling as high as expected, do not get discouraged. Because, you can still find creative ways to market yourself, like taking a course to add expertise, or volunteer in an organization related to your career interests.

6. Satisfactory performance
The ability to earn an income is your greatest asset in achieving financial freedom. Therefore, be required companies to show superior quality in every job. If there is a chance of promotion, you have a better chance to get it.

Whatever your job, and regardless of income every month, should be better managed to avoid a deficit. Management and proper financial planning will give the solution of financial problems. Including developing self-sufficiency, particularly for women heads of households.

Steps that can begin women in managing finances:

1. Paying off debt
Although financial management already cluttered, not too late to fix it. Especially if you have the amount payable for patchwork. Start setting aside money from revenue to pay debt. However the debt to your obligations. Unpaid debt, will gradually destroy your credibility. Your reputation is at stake if the liability (debt) still not settled. Allocate a maximum of 30 percent from a month to pay salaries or debt repayments.

2. Save
Convince yourself, that regardless of the value of income, so can be set aside for saving. Allocate funds 10-20 percent of income for savings. To be able to carry out this plan, limit consumption. Women often tempted by any of the goods purchased is actually not too important. In fact, sometimes only carry the influence of friends or a trend. Begin firmly to yourself, by making the priority needs of a much more important.

3. Emergency Fund
Prepare also a reserve fund as an emergency fund. There will always be unforeseen needs, such as serious illness and should be treated. Hospitals need not cost a bit right? Start setting aside funds amounting to five percent of monthly income. Prepare an emergency fund up to six months ahead. As a precaution, make a special passive account for emergency funds, or acting as a savings. Separate accounts are passively activated from the special account for everyday needs.

4. Insurance
After deducting the monthly routine needs, paying debt, saving, and preparation of emergency funds, the remaining income can be used to buy insurance.

Polar life insurance for the head of the family. Anyone who has become the backbone of the family, woman or man, should have life insurance. Because if anything happens to the head of the family, family life can still walk and given of insurance for a specified time.

In addition to life insurance, other insurance types that can also be given priority among health insurance. Also insured property, let alone used to do business, such as kiosks or stores.

5. Investment
Set aside money for investment, should be done after obligations have been fulfilled. The simple shapes, if you have more funds, invest your money in gold. But you should be careful when investing gold, notice and understand the value of sales and quality.

Allocating money for investments can be taken from other revenue sources. As THR, bonus, inheritance, or other income outside the main income. Many kinds of investments, the risk varies, as well as with its investment in the future. Should identify more carefully before selecting an investment product.

If all five of this obligation has been fulfilled, monitor expenditure and adjust the plan that has been built. Disciplined use the money to be key to the success of financial management. 5 Obligations in Managing Money

Whatever your job, and regardless of income every month, should be better managed to avoid a deficit. Management and proper financial planning will give the solution of financial problems. Including developing self-sufficiency, particularly for women heads of households.

Nini Sumohandoyo, Corporate Marketing & Communications Director, Prudential Indonesia said, women are often denied could never spare the money. Including to save let alone invest. In fact, by reducing the consumption of goods that are less important (with limited financial conditions), such as jewelry or clothing different variations of the model and color, women can set aside Rp 300,000 each month.

“By leaving money USD $ 300 000 only, women can save money, have insurance or other investments,” said Nini, on the sidelines of financial planning and management training for 300 women street vendors, held by Indonesia at Wisma Prudential Mandiri, Jakarta, Wednesday (14 / 7 / 2010).

Nini describes steps that can begin women in managing finances:

1. Paying off debt
Although financial management already cluttered, not too late to fix it. Especially if you have the amount payable for patchwork. Start setting aside money from revenue to pay debt. However the debt to your obligations. Unpaid debt, will gradually destroy your credibility. Your reputation is at stake if the liability (debt) still not settled. Allocate a maximum of 30 percent from a month to pay salaries or debt repayments.

2. Save
Convince yourself, that regardless of the value of income, so can be set aside for saving. Allocate funds 10-20 percent of income for savings. To be able to carry out this plan, limit consumption. Women often tempted by any of the goods purchased is actually not too important. In fact, sometimes only carry the influence of friends or a trend. Begin firmly to yourself, by making the priority needs of a much more important.

3. Emergency Fund
Prepare also a reserve fund as an emergency fund. There will always be unforeseen needs, such as serious illness and should be treated. Hospitals need not cost a bit right? Start setting aside funds amounting to five percent of monthly income. Prepare an emergency fund up to six months ahead. As a precaution, make a special passive account for emergency funds, or acting as a savings. Separate accounts are passively activated from the special account for everyday needs.

4. Insurance
After deducting the monthly routine needs, paying debt, saving, and preparation of emergency funds, the remaining income can be used to buy insurance.

Polar life insurance for the head of the family. Anyone who has become the backbone of the family, woman or man, should have life insurance. Because if anything happens to the head of the family, family life can still walk and dinafkahi of insurance for a specified time.

In addition to life insurance, other insurance types that can also be given priority among health insurance. Also insured property, let alone used to do business, such as kiosks or stores.

5. Investment
Set aside money for investment, should be done after obligations have been fulfilled. The simple shapes, if you have more funds, invest your money in gold. But you should be careful when investing gold, notice and understand the value of sales and quality.

Allocating money for investments can be taken from other revenue sources. As THR, bonus, inheritance, or other income outside the main income. Many kinds of investments, the risk varies, as well as with its investment in the future. Should identify more carefully before selecting an investment product.

If all five of this obligation has been fulfilled, monitor expenditure and adjust the plan that has been built. Disciplined use the money to be key to the success of financial management.

When you want to make a financial decision, such as buying a house, car, or investing in stocks, typically there are underlying considerations. What percentage of that decision based on rational considerations rather than emotional considerations?

When you want to buy a home, there are considerations with an office location near or adjacent to the family. In short, there are many walks from the decision. Of course there are considerations about house prices. The question is, what percentage of the consideration price compared to other considerations, which encourages you to buy a home?

However, try to be honest, did you ever buy an item actually is more dominated by emotional considerations? That is, no matter what the price of the house, still you buy because you like it. And perhaps, you pay too expensive to buy a function of an item.

That is what is called the financial decisions, which are not based on financial arguments. Now, in order not to get stuck in such decisions, it is helpful retrospect, how well it performed the financial decision-making.

Objectives and budget
First, make sure the first goal of your financial decisions. Buying a home for example, what is the purpose? For new dwellings, or as an investment tool? Whatever the reason it’s up to you. What must be understood is that differences in these financial goals will give birth properly different financial decisions. In other words, the financial decision to purchase any consumer goods that are very different from the goal of productive financial decisions. And you must understand the true consequences of the decision.

Second, determine how a budget that provided for a financial decision. This becomes an important factor because many people buy things without a clear plan about the cost allocated. Buying consumer goods using a credit card, for example, every month, your bill will swell. Or if you buy a house, regrets will come later because the reality is different with the expectation obtained.

Or when you buy branded goods, in order to raise the social status. You actually feel “not strong” to spend money to buy the goods, but forced myself to look “great”. What happened next is a regret because your friends are also able to buy the same goods, or even more expensive than the goods you have purchased.

Buying a branded goods with intent to increase the prestige is not a financial decision. It’s more of an emotional decision that only cause problems later in life.

And post-sale impact
Third, post-sale aspect of the goods purchased. Financial decisions that do not consider post-sale aspect of an item will cause regret. Financial behavior is correct when the item is owned by more productive rather than consumptive. Similarly, purchases of goods. If the item has no productive value, including when it is sold again, the goods are classified as cost alone.

In other words, any item purchased should still have value if you want to resell. Such a thing is valid for all the goods you buy and own.

If you purchase any item, consider these items can be sold back at a reasonable price when.

Fourth, the impact of decisions on the overall financial condition. Every financial decision is essentially a negative or positive impact. Too often we forget that a decision can not stand alone. When you buy a house on credit, for example, will affect your financial behavior in managing expenditure in the next period, because most of the income will be used to repay the loan installments.

Have you ever imagine the effect on your other spending plans? This means that you may have to stop one of your expenses so that cash flow does not deficits. Now, every financial decision should be analyzed impact on overall spending.

Rational argument
Fifth, rational argument must be higher than emotional reasons. In more conventional terms, can distinguish between wants and needs. All purchases are usually based only on the basis of emotional desire. While the need-based purchases are also not always rational. Included in this are considerations of price, aspects of post-sale, and so forth.

Although the financial decisions you’ve believed to be solely to meet the needs, not necessarily rational, logical criteria. Therefore, check again, what percentage of emotional aspects contained in it.

There are still many factors to consider before making financial decisions. To facilitate you in making decisions, there is no harm in all of these reasons are recorded and included in the list of considerations. With the list, you can weigh your decision can be justified if it is logically or just sheer emotional. Clearly, decisions based on emotional eating will usually be more than a decision based on rational cost. The choice is yours.