Monthly Archives: April 2010

Secure YOUR money and be secured for YOUR Future!


Monetary security is the most essential thing in a man’s life. Everybody is well aware of the inevitable need of money. But to earn money is not all that important. The most important thing is that after you earn a considerable amount of money, the next important thing that you need to do is to secure it. It is a fact that we all should be aware of our future, and should take necessary steps in time to secure it. The monetary investments that you do for your future, is the element of security for your old age. And to secure the future, means to take necessary steps in time to preserve your hard-earned money for its proper utilization in the future. If proper steps are not taken in time, the result may be that he may have to suffer monetary problems in future, or rather to say in his old age.

No matter how much money you earn in your life time, the most important thing to do is to keep track of your money and to secure the future. The more you earn, the harder it becomes to keep track of the money. It should always be kept in mind that, when you live a life of luxury and spend your money in expensive desires, you may have to suffer problems later. There are many such people who seldom keep the aftermath in their mind, and therefore have to suffer disasters in their later life. It is a proven fact that, after a certain age the efficiency of a person or the working capability of a person reduces, and with that decreases his monthly income. And this is the reason why there is the need to secure your money, or to invest it in such a way that, even if you retire from your job, there may not be any lack in your monthly income.

And therefore to keep a track of your monthly income, and to invest it in the proper manner, seeking the help of some professional financial advisor is very much important. It is true that, if you are not having a large monthly income you can manage your own money. But still, the suggestions and the advice that a professional financial advisor can provide cannot not be matched that easily. When you are consulting a professional financial advisor, you can get a better guidance for the management of your wealth, and thus you can have a better investment as well as better returns. And when you are having a large income, the need of the help of a professional advisor can be inevitable.Moreover, it is always better to rely on the professional financial advisor for the management of your wealth, as in this way you may not need to worry too much about your money, and you can concentrate on your job well.

Seven key steps to Financial Empowerment


The 7 steps below are for anyone wishing to take control of their financial future. They are what many of the super rich have done and continue to do to place themselves in a position of greater financial strength. If you apply them, you to can reach a position of greater Financial Empowerment.

Here they are:

Eliminate Debt
This can sometimes be an overwhelming subject. Although this maybe the case, it is one of the most important steps when it comes to Financial Empowerment. Start by taking stock of where you are today by putting in place a budget. Next track all of your expenditure. This will help you identify where all you extra money is going and what is keeping you from hitting your financial goals. Consolidate any debts you may have e.g. credit cards, personal loans, student loans, store cards etc. Quite often debt is caused not by not having enough money, but by the mismanagement of what we do have.

Make regular SAVINGS in tangible assets
This can be done with Real Estate, Gold and other precious metals, Antiques, Coins, Savings Bonds, Cash etc. Simply, tangible means there is value in their substance.

Create Multiple Sources of Income (MSI)
Put simply, the cure to harsh economic times is to develop and grow multiple sources of income when securing your financial future. Anything that will provide you with a positive cash flow is very important. No longer is security in just holding down a job. It is simply just one of many sources of income. A home based business is a great area to start developing other sources of income.

Become a Supplier of in-demand products
The great thing about the human race is that we all consume products one way or the other. This step requires a bit of thought on what you can supply that is in demand. It’s about seeing a need in the market place and filling it. Or said even simpler is to solve their problem with your product or service.

Make Compounding labour work for you
One of the best ways to achieve this is to duplicate you efforts through a business with a system. There are many real life examples of people who have made this happen. One of the most common we all know is Ray Kroc, the Founder of the McDonald’s business model. Start to think of ways that you can make this happen for you. Network marketing is one of the best models I know that can help you to achieve this by following a system of proven success. Beware though that not all of the network marketing companies have a duplicate system of success – so do your research.

Asset class Diversification
This step is quite self-explanatory. Having a diversified set of assets can mean minimizing risk when it comes to your finances. If one area were to have a downturn or fail, there are other classes to pick up the shortfall. This can create a buffer where one can counterbalance the other until the shortfalls are regained.

Operate Internationally
Being able to operate internationally is easier than ever these days with the advent of the internet. Being able to do business online has opened up so many doors to anyone wishing to gain global exposure.

Assessing YOUR current Financial REALITY!


Before you can move forward financially, you need to understand where you are starting from. No matter what your financial goals are, it is important to take a present financial snapshot. This financial information will be useful in generating your financial plan as well as for providing a gauge of your progress over time.

Your Net Worth

One of the first places to start when establishing your current financial reality, is determining what your present net worth is. Your net worth represents everything that you own minus everything that you owe. To calculate this figure, calculate your assets and your liabilities and discover what the difference between the two figures. Your net worth is a strong indicator of your financial strength and should increase over time. Be sure to evaluate your net worth on an annual basis to ensure that you are making positive financial progress on an ongoing basis.

Your Personal Budget

Your spending habits are important when working toward building personal wealth. To determine what your spending habits are as well as to find how much discretionary income you have on a monthly basis, begin to organize financial information. Collect financial statements such as bank information, investment statements, ATM receipts, income statements and prior year tax returns. Use this information to determine what your monthly average income is as well as what your average monthly expenditures are. Take the difference between your income and expenses to determine what your available discretionary income is. This amount is what you have available to dedicate towards your financial goals.

If your discretionary income is negative, it may indicate that you are living on credit and increasing the amount of personal debts that you owe. If you intend to move forward financially, you need to increase your discretionary income as much as possible. There are two primary methods to accomplish this; increasing income and decreasing expenses.

Increasing Income

One method to increase your discretionary income is to increase your monthly income. Consider increasing hourly work if you are on an hourly wage. If both spouses are not employed, consider adding dual incomes to the household even it is temporary for the benefit of your financial future. Another option is to seek freelance work. And lastly, you could sell unused items in your home such as collectibles, unused books or clothing on online auction sites.

Decreasing Expenses

In addition to increasing income, you can increase your available discretionary income by decreasing expenses. Review your variable expenditures to determine which can be reduced or eliminated. Your variable expenses are those that change on a monthly basis and in many cases, are not necessary. Common variable expenses include travel, dining, entertainment, gifts and clothing.

By focusing on examining your present financial situation, you can determine where you are in relationship to achieving your financial goals. And, if you are not on track, you can make adjustments and changes in order to free up additional discretionary income. This found money can be redirected to reduce and eliminate consumer debt as well as toward investments for your financial future.

Are YOU saving enough for your retirement?


Saving money for the future is a wise step to take so that you can enjoy golden old days of life. Whether the savings process has just begun or is being carried on for years, the need fact of a making a plan for savings cannot be denied. Having a plan is essential as it can help you to know whether the savings that are being made by you are enough for retirement or not. Retirement plans are for assuring that you can continue to receive a suitable satisfactory income that can allows you continue to enjoy a lifestyle that you are used to.

There are two essential steps that have to be taken by people before beginning the planning process for retirement. Understanding about money that has to be saved is essential so that the life after retirement can be secure. Also it is essential that you determine savings rate that is the amount required for saving on a monthly or yearly basis so that it becomes easier to accomplish the goals.

After the completion of these two key steps, there are numerous other tasks that can be helpful in knowing whether you are saving enough for your retirement or not and also it can be help in ensuring success of the retirement plan. But for achieving all these, the main focus is to manage the planning process on a regular basis.

The initial step is to determine the approximate amount that you think will be needed after retirement. Accordingly, you can select a sum of money from the annual income that can be kept aside as money which can be required after retirement. The amount that will be required after retirement can be better estimated when you are closer to the retirement. Also there are numerous other variables that are also taken into account while calculating the sum of money that will be required after retirement. Some of them include the money that is saved currently, ways that have been used for investing money, time when you are planning to retire and lastly income that is expected from the pensions and other annuities after retirement.

Another essential step is to determine savings rate which can be done appropriately only after estimation of the annual income for replacing with savings. This is extremely helpful in cases where only a few years are left for retirement, you will have your focus to maximize savings and make optimum use of savings plan. This is the factor that can help in determining the amount that is required for saving. Also the pensions and retirement benefits that you are expecting can also affect the money that you need to save.

Though these plans and steps do not give an exact idea of how much is being saved for yourself and your family after retirement, it gives an idea of the money that is required to be saved which will be required by you and how much you are actually saving. This can be best achieved with a well-developed retirement plan and the earlier you plan the easier it is.

Do YOU think you’ll survive with social security?


Let’s say you never get around to saving for retirement. You don’t work for a company that offers a traditional pension (which is no guarantee anymore), so the best you can hope for is a social security check. How bad would that be? The answer, based on Social Security as we know it now, is: It depends. If you didn’t earn much before you retired and you’re married, your lifestyle might not take a huge nosedive. Or it may be really, really, really tight.

A third of people age 65 or over rely on Social Security for 90% or more of their incomes, the Social Security Administration says. For about one out of five people in that age group, or 22%, Social Security checks are the sole source of income. The “replacement rate”—how much of a worker’s income is replaced by Social Security—depends on how much you earn:

1. Low-wage earner (average $16,739 annually) Social Security typically replaces 55.9% of your working pay.

2. Medium-wage earner (average $37,198 annually), Social Security typically replaces 41.4% of your working pay.

3. High-wage earner (average $81.467) annually), Social Security typically replaces 28.9% of your working pay.

Being married is better than being single since two checks are, obviously, better than one. Spouses may receive a check based on their own work records or—if they didn’t work or earned less—checks worth 50% of what their spouses get. That boosts the replacement rate considerably. Low-wage earners,Social Security now replaces 83.5% of working pay. Medium wage earners, Social Security now replaces 61.9% of working pay. And high wage earners, Social Security now replaces 43.3% of working pay. Again, one out of five retirees have nothing but their government checks, and many others count on them for the bulk of their living. It’s a tough existence. It is important to plan early for retirement to not get caught in this trap, so if YOU are in a position where YOU are able to contribute to YOUR pension, go ahead and do it because it will determine the kind of life YOU live, after retirement.

How to manage YOUR personal finances


Don’t let the idea of learning to manage your money scare you. Anyone can do it, and just remember that you’ll be improving your life by doing so. Once you learn the right techniques and get the right tools to help you, you’ll have no trouble managing your money. Think of it as a game, you just need to learn the rules and you’ll be winning in no time.

There are basically nine steps or ideas that you will need to get your money plans in order.

1. Get ready for a change – Change can be hard, but if you accept that your current habits aren’t working, you will be ready to move forward.

2. Surround yourself – Find a community of people in the same situation you are, either through an online message board or even friends in real life.

3. Examine your situation – Take time to see what you’ve been doing in the past, and how you are managing your money currently.

4. Consider the future – You can’t reach a goal if you don’t know where you are headed. Think about what your life will be like once your money is under control.

5. Make plans – Once you know what you want, start making a set plan to get there.

6. Commitment – A plan only works if you stick to it with some dedication.

7. Choices – Consider your plan every single day, and make money choices that reflect your plan. Remember the goals you are trying to reach.

8. Reward – Congratulate yourself each time you reach a milestone, or just make a sound financial decision.

9. Keep going – Once you reach those goals, start the pattern all over again with a new goal in mind. By keeping your financial management broken down in to reasonable steps, you will keep yourself from getting overwhelmed with it all. Each step is easy, so stick to one at a time. There is no rush, so you can focus on just one step each week if you want. Consider it a game, and concentrate on being the winner at the end. Design your financial plan to suit your lifestyle and your needs, not for someone else. Your plan needs to help you solve your problems and get you where you want to go. That’s all that matters.

Are YOU Budgeting fot the future?


It’s not just the cold weather that causes many people to hunker down and save instead of spend. No matter what the analysts and the Fed says, unemployment is still very high and the country still feels like it’s in recession, forget the technicalities. This should bring in a little monetary sobriety after a spending binge, but over the last year Americans have become more serious about saving money and paying off debts.

Even with good intentions, becoming fiscally savvy can be easier said than done. A recent NBC Today poll showed that most Americans don’t know exactly how much money they spend each month or how much money they would need to live for in the three months, much less what they have in savings.

Whether the goal is to save more or pay off debt–or both–the first step is getting a handle on spending. There are a number of ways to go about this:

1) Follow the paper trail of past statements and receipts. This can be time-consuming, but eye-opening.

2) Track all spending for the next month, recording everything from bills to cash spending.

For those who like to do things to the extreme, there is the cash-only diet. Take out the amount of cash estimated to be needed for the week and then spend only that amount, no credit or debit cards. When the cash is gone, the spending is over. Neuroscientists have discovered that the brain regards cash transactions and credit transactions very differently. A cash transaction causes the area in the brain called the insula to light up and cause people to proceed with caution. This doesn’t happen with credit cards. In fact, credit cards pump good feelings of an instant reward throughout the brain–very dangerous stuff.

Next comes setting a budget that incorporates savings or debt pay-off goals. This is another area where people can be a little confused. A budget is not simply a spreadsheet that tracks how much was spent for the month nor is it just balancing a checkbook. While both of these are important tools, neither fits the definition of living within a budget. There is a plethora of software and websites that assist in setting and maintaining a budget. Quicken is a popular software program and is a useful site with free money management services. Starting by mapping it all out on paper may be the best way to begin. The thing to remember about a budget is that it sets limits as well as tracks spending through very specific categories.

Getting started can certainly be time-consuming and there will be a period of trial error. However, living within the parameters of an income and sticking to spending goals can be very rewarding, both emotionally and monetarily. Keeping on an eye on the long-term goal, like having six-months of expenses saved for just-in-case or saving for a house or even being debt-free, will take a little chill out of the winter budgeting blues.

%d bloggers like this: