Wednesday, February 23, 2011

5 Ways to Cut Costs and Save Money!

Are you hard to make savings? As we all know, saving money is important, especially in time of emergency. Savings will be a savior when you are facing financial problems that can not be avoided.

Here are five ways are:

1. Avoid buying unnecessary items.
Usually when you shop, you will be buying something you really do not need it yet. For example, you buy a new set of dishes, but at home there is another set of dishes that have not been used.

2. Be a smart buyer.
Every time you want to shop as much as possible buy items that have been given discounts or coupons. This method is able to provide more savings to you. You are also encouraged to shop in bulk. It can save cost by 30%.

3. Avoid using credit cards.
Leave your credit cards at home when going out shopping. I am sure you will not be able to resist the temptation to use credit cards every time shopping. Thus, it is better to leave the credit card at home alone and use it only when in an emergency.

4. Make comparisons.
I suggest you make a comparison in terms of price and quality. Choose local products and it is possible for local products of better quality than imports. Options in your hands.

5. Reduce entertainment.
Cut out the high cost of entertainment such as watching movies, playing golf and so on. Can create your own entertainment at home with the family, such as watching DVD movies, playing in the yard and other.

Actually, there are many more ways to cut costs and save money as a result of surplus cash each month. You just need to start with the first base on a consistent and disciplined.

I am sure, you sure can do it!

Monday, February 21, 2011

Personal Finance | Prepare Your Financial Planning!

Do you have a plan for your financial planning? Maybe people thought that financial planning is not suitable for those of you who have low income and it is only suitable for those who are rich or large corporations.

If you think so, you are actually wrong!

You need to have financial plans if you want to achieve financial freedom is holistic. Those who have financial plans with clear goals and always strive to improve the weaknesses that exist throughout their financial management.

Here are some tips that can help you:

1. Define your goals.
At least, you must have a goal in your financial planning. For example, you want to achieve financial independence within 10 years and have savings of $ 500,000. Better yet, you should include in the plan of action to achieve those goals.

2. Know how your income and expenses.
You must know how your income and expenses. It is intended to prevent you from spending more than income. Instead, record all your income and expenses using a lot of financial software on the web.

3. Know how your assets and liabilities.
All people have the assets but not many are aware that they also have obligations. What you should do is list your assets and liabilities. If assets exceed liabilities, you may be facing financial problems. But if the liabilities exceed the assets, this means you are in danger.

4. Have a sufficient emergency fund.
As I have said in previous article, you must have an emergency fund of at least 6 months before you act to make any other investment. The purpose of this emergency fund is to cover your expenses for 6 months later if the dismissal.

5. Pay your debts as quickly as possible.
Right! You have to pay your debts as quickly as possible. As long as your loan is completed, you will not be comfortable. Start with a complete debt and low interest rates, followed by higher interest rates.

6. Increase your income.
You can start a business such as internet business or invest in low-risk unit trusts. In fact, to increase your monthly income, I recommend that you work part time at the convenience store for a while to get enough capital to open a business or invest in the stock market and unit trusts.

Once you have planning your financial future, make sure you always check and review from time to time about whether the financial position you have a good change or not.

p.s: Share your opinion by commenting on this article.

Friday, February 18, 2011

Personal Finance | 4 Step Plan Your Investment

Today, too many types of investments that exist either offered by the Bank or offered by certain companies.
This program also includes the investment and get rich quick scheme.

However, tips and guidance I would give this had nothing to do with rich-quick scheme, but it is associated with a number of steps to plan your investments more efficiently and reduce the risk of loss.

Here are four steps are:

Before you decide to invest in any type of investment, first make sure you investigate and identify the level of risk you can face. Each investor does not have different levels of risk.

In general, there are three types of risks, namely Low, Medium and High. So, you are in the category in which one?

I classify the level of risk to the value of investments as follows:

a) Low risk > 80:20
b) Moderate risk > 50:50
c) High risk > 30:70

For example, suppose you are a low-profile investor, your investment is the ratio of 80:20.

Sense here is, if you have savings of $10,000, then you can only invest 20% of it and the remaining 80% left in the bank.

Once you know the level of risk could you face, you can now choose any investment you like. BUT, before that you must have made a study and find out more about the investment.

Information you need to get is:

a) Prospectus of the investment.
b) Where money is invested.
c) How it is managed.
d) What kind of benefits granted to investors either in the form of dividends or bonus units.
e) If you are a Muslim investors, ensure that the investment fund has a panel of sharia.
f) The investment fund's performance in previous years (however, past performance should not be used as benchmarks and guidelines for the performance of the current year)

If all the positive and convincing, then you are welcome to invest in investment funds.

Even if you invest in an investment fund that was great, but you are not encouraged at all to invest in a type / form of investment. This is to prevent you from getting a big loss as the market for such investments are having problems and the inability of a sudden.

It is always best to diversify your investment portfolio by investing in some forms of investment such as fixed deposit (FD), Unit Trust, gold, stocks, bonds and sukuk.

At this point, you probably already have some form of investment as a result of diversification of investments in the third step above.

The next step is to make regular monitoring of each investment you make. Without monitoring, you may face a risk of loss resulting from changes in global economic trends, sudden actions of investment managers, changes in laws and the National Bank.

So, when you do the monitoring, indirectly you can act and decide in advance on all the investments you have.

I hope these tips provided to help you plan your investment better.

Thursday, February 17, 2011

3 Easy Ways To Build Wealth!

If you're really serious about building wealth or at least want to achieve financial freedom, please read what I am saying to you.

It is quite simple, but it was better than I wrote a long article.

"Do not buy any CD or some ebook if you do not make savings, investments and protection."

Here there are three ways:

1. Increasing the amount of your savings.This is the first step. You need to provide adequate emergency savings. Minimum emergency savings you must provide is of 6 months of your income. Once you have savings, then you provide the other saving. Or, you can also provide as many types of savings to your monthly savings to distribute evenly. However, the emergency savings should be prioritized first.

2. Make a wise investment. Making wise investments. Do not you engage with rich-quick scheme. Stay away from such programs. Preferably, get more information about any investment or business that you want to join. As is often emphasized to us, "Do not invest in one type of investment, but to diversify your investments."

3. Provide protection. The third way is often overlooked and that this was not significant. In fact, the protection (insurance) is very important to your beneficiaries will mainly as a place for you to become dependent. Take adequate insurance to cover you, your family and property.

That third way will take you to the wealth and financial freedom. So, what do you think about the article on this? Hopefully, these tips can be used.

Wednesday, February 16, 2011

The Best Way Eliminate Debt

All people and you also have to make a loan since the start studying again. Upon entering the working world, your debt is increasing as home loans, car, credit cards and personal loans.

Your life suffering because of incurring substantial debt. So, today I want to share with you about some ways to eliminate debt.
  • Identify the expenses that you do every month. Ideally, write down all these expenses in a special book.
  • Based on your spending habits, reduce unnecessary expenses.
  • Sale of used goods are not used by you.
  • Search for additional income, such as internet business.
Cash in excess of the spending cuts and revenue from the sale of used goods used to pay your debts. While you can earn extra income are used to deposit and pay the remaining part of the existing debt.

Note: My advice, preferably you should prepare a monthly budget for any expenditure that you make must be no more than your income.

Hopefully this time some tips will help you eliminate your debt.
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