Financial Methods » Financial Management

The Save Holidays Tips

Admin — Sat, 09 Jan 2010 20:38:48 +0000

# To be sure, prepare far in advance if you have a plan a long vacation out of town even abroad. Longer preparation time would be better. Set aside the auto debit of your monthly income over time according to the amount of funds needed.
# Same as recreation, looking for places to eat or restaurants should be in accordance with the budget prepared. It’s better if you choose a place does not far from the place you stay or the last place you’re visiting. In addition to time saving, the cost will efficient too.
# Do not forget, always carry supplies such as bread and drink water in the bag. In addition to healthier, you will also avoid unnecessary snacks.
# Normally take vacation packages provided by the tour travel could be cheaper. But if you want to travel alone, first know the ins and outs vacation destination place. The cost of transportation, accommodation, recreation places and dining and do not miss the shopping center became the important points to note.
# For the transportation and accommodation costs, it is good if you can get a promotional package. Even if there is relative’s house or apartment residents and individual property can be a place to stay. You can save quite a lot, considering both is the largest cost.

Pension for Freelance Workers

Admin — Sat, 05 Dec 2009 06:53:29 +0000

In the past, have children who worked as a Civil Servant being the dream of all parents. In fact, this type of work would be getting more points in the eyes of prospective in-laws. Perhaps, this public opinion is formed because of the retirement facility for a civil servant.

Meanwhile, one of the global trends in the world of work these days is more and more individuals choose to work as a freelance (part time) rather than full time working. At least this phenomenon has occurred in developed countries.

But there is one more factor that is very important, financial markets are now very modern. Creation of modern investment instruments can reduce the negative impact of fluctuating incomes and pensions in the absence of freelance work. Family financial management with the use of modern investment instruments can make as safe a freelance job with a steady job.

In terms of retirement planning for freelancers, the first thing that must be taken into account is how spending per month currently. If we assume we will run the same lifestyle when we retire later, then this expenditure will be adjusted for inflation 20 or 25 years from now when we retire. After that we will know the needs of pension funds and can count the number of monthly investments to be done.

It should be remembered also that the illustration above has assumed that the need for an emergency fund and insurance are met. If both these requirements are not met then the financial planning is more comprehensive and detailed to be done.

Family Money Managements Tips

Admin — Mon, 30 Nov 2009 07:59:26 +0000

# The first and most important priority: pay off your consumer debt as soon as possible. The sooner is the better.
# Check loan repayment expenditure, is it <= 30%? If more, it means your debt burden is too heavy and not at risk paid off.
# The second priority, saving at least 10% of your revenue. The higher is the better.
# Do not be too much put your money in savings. Having fulfilled the post emergency fund, start investing!
# Remember, lifestyle = expense. Want to know whether your lifestyle is in accordance with the income? Check expenditure of non-routine and your routine. If it does not fit, do the trimming expenses now.
# Be a smart shopper! Think 10 times before you spend money. Is it really necessary and as required? Would I buy goods, including productive or consumptive?
# At the right time to buy is when the goods you need are sale with discount at the store. But the most important thing to remember, it is the stuff you really need and have been budgeted! That way you can just pass a shop that was a massive sale without having to go and shop if you do not need anything.
# Do not ignore the expenses that are trivial and are small but regular or frequent. Without realizing it, if in total during the month turned out there were not a little and enough to drain our bags. This should be removed.
# It is important to remember, your credit card is not extra money. If using a credit card, make sure that indeed the money to pay the bill already exists within your budget. That way, you can certainly meet on time.
# The biggest challenge in managing the family finances is to reduce expense (simplify lifestyle) and increase your income. If this can be done in a consistent and disciplined, will the success of managing your family finances will be realized easily.

The Save Shopping Tips

Admin — Thu, 05 Nov 2009 05:23:33 +0000

# Create a regular shopping list for items needed every month in accordance with the monthly budget that you have.
# Always carry a shopping list every time you shop and stick to it! It is important to avoid buying unnecessary items.
# Make it a habit to go shopping on a regular basis such as every one or two months or based on needs and not wants especially if only just for take a walk.
# Shop at shopping centers than at minimarket. In addition to the available variety of goods were incomplete, the price is usually more expensive too.
# Buying items with more numbers will be more profitable because it is cheaper. This of course can only be done if your cash flow allows.
# Do a research to find places to shop that always give the best price and often promote. Who knows you chance to get the goods you want to buy with low prices.
# Shop smart or choose items with good quality and economical price. Do not hesitate to use generic products for use every day.
# Do not forget, choosing places to shop that provides free parking will add value to your frugal shopping.
# If using a credit card, make sure you can fully pay off on time.
# When tempted, remember always “spend less = save more”, the more you save, the sooner our financial goals achieved.

How to Manage Cash Flow

Admin — Mon, 05 Oct 2009 05:35:43 +0000

The cash flow shows income sources and describe expenditure patterns, savings and investments a person. What are the components of cash flows formed? According to the Financial Planning Standards Board include: salaries and wages, cash value of dual life insurance, retirement payments, interest income and the distribution of dividends, income from rent, loan funds, and cash withdrawals from savings, tax returns, and receipts from liquidation of assets.

Then the next question, how did measure the health condition of cash flow? There are a number of important ratios identified:

1. Expense ratio is an indicator that compares the routine expenditures (social funds, child expenses, household, personal, transportation) with the income per month; describe the efficiency level of cash flow management of a person or household. Person’s financial position or households considered efficient if it has the highest ratio of 55% or less. Therefore, remain disciplined and consistently spend your money on the level of 55% or less. For annual expenses like going home and other expenses use the annually income too.

2. Saving ratio confirms what percentage of income set aside for future use (savings or investments). A person or household considered healthy if it has the highest ratio of 10% or more. This means that 10% had not reached you or your household is still too focused on the consumption of now, not the consumption of future. Change your mindset and how to manage your money now!

3. Debt service ratio is important as an indicator that compares the total annual loan payments with a total annual income. This ratio shows the amount of income in a year needed to pay the total annual debt. Level ratio 35% or less indicates the adequacy of sinking fund. If your ratio 45% means you spend 45% of your income to pay in installment of your pile debt. Do not let this happen!

4. Non mortgage debt service ratio compares the total annual income of the entire loan payments a year outside the home mortgage loan or mortgage. Level ratio 15% or fewer is voted still in reasonable threshold, while the ratio of 30% means that the position of non mortgage is too high. If the ratio is more than that means you have to spend more than 15% of income for its consumer debt.