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Posts Tagged ‘Investment’

In Indonesia there is still much we find community members who can’t tell the difference between saving money by investing. The question is which then arises is: “well, then there is no safe place to invest donk?”. “Whether or not the Fund should be at home alone I saved or under a pillow?”. Save money at home is also risky. Risk of stolen by people home, stolen the thief could cause the money we save at home is reduced or lost.

If saving money at home or in the shape of a savings Citibank contain risk, let alone the name of investing. One thing that should always be our  is that there is no single investment that has no risk 100%. Due to this risk, therefore we must do an analysis before investing to minimize those risks (not eliminate).

Moreover, if we invest in capital markets financial products such as shares, Bonds and derivatives such as mutual funds. When like now where stock prices are falling, it is definitely an investment we will come down. Then how do we minimize those risks? Many ways that can be done. The first should always bear in mind that the investment risk is always proportional to the results of his investment. That is, the higher the interest or the expected results will be the higher risks. As for now there are already some investment products that can provide competitive investment results (not high) but with the risk of being controlled (manage). However, there are still many are investors in Indonesia are not using common sense, want a quick rich quick by investing in products that promise or dangle the high results.

Make a target investment yield or return is desired. As soon as we reach the target that Goethe. Greed is always trying to hold us to stay afloat in the issuer’s shares because we think the price will rise even higher. Make the limits of tolerance of harm suppose 1% or 5% of our investment before we go out (cut loss).

Mistakes that are often made by many beginner players is not to venture out or cut loss. They don’t want to admit they had been wrong to take a decision or wrong position so that it suffered losses. However, they remain unwilling to come out or cut loss. As a result they had to endure with the losses sustained in the hope which one day its stake will be returned and their money back.

When studied with good and true, Transact shares actually is an activity that is exciting and spots for you. Moreover, when the market was down as it currently is. Returns the key word is disciplined in doing deals. If we routinely discipline undoubtedly we will give you the total investment result satisfactory investment.

One theory to minimize the risk that the character is called with diversification. Know the term “Don’t put Eggs in One Basket”? Or if it was translated roughly is when we have a lot of eggs do not put all your eggs in one basket. So if the basket fell then the eggs will break all. Well, that’s true too with our investment. To minimalistic the risks don’t put our investment only to one product only.

Investments can be done by using the investment products offered by financial institutions or financial products as well as using non-financial product also. Use a combination of these products also reduce risks.

Examples of some non-financial product which can be used to invest are: Property (House, apartment, houses, kiosks, etc.), motor vehicles, gold/precious metals (gold and jewelry pieces/bullion), the diamond and precious jewelry. In addition to some of the specific uses of paintings, antiques, and many other products that can be used as a vehicle of their investment.

Whereas financial products among other banking products such as savings accounts, deposits and SBI capital markets products, such as stocks, bonds (bonds), mutual funds, foreign exchange (currency), indexes, futures and more investment products offered both locally and sold abroad. For example, when investing in the stock market is down between the months of July until now, our investment in precious metals to rise to compensate for the decline in our in stock. Although precious metal is also the last follow-up down. Another example for example, even though share prices tumbling but the price of property fixed yet fazed. Balance in investing here’s what our investment risk minimalism.

In a certain scale, diversification not only conducted using investment products in Indonesia but also with the use of any product or investment to more countries. However, we also have to be careful, in conditions which are already very advanced with information networks and exchanges are integrated throughout the world, causing a decrease in the Exchange in a country sooner or later will have an impact in other countries, as happened when the Global crisis in 2008 or at this time. That is why the combination of financial products and non-finance is highly recommended. So when the market is down now, we don’t need to panic again.

revealed some of the things you need to know to manage your finances:

1. Divided per post
Well, all this time, how do you manage the allocation of postal expenses? Your first task is to record at least three months back to whatever income earned each month. The point, so that you can know the capabilities, and also know the outposts which were leaking.

In General, household spending can be categorized into the post routine life, postal expenditure expenditure savings and investment, the post is installment debt, and postal spending lifestyle. New employees are generally a lot have a will but realize there’s financial capability to its limit, then the only way is to make a budget or spending plan.

“So, should be determined, how much money is spent for each post,

2. do not be violated
What if the post everyday always great pegs rather than poles?
It certainly shouldn’t take away from another post, savings for example. The goal of making it so that the expenditure budget is directional and in accordance with our financial plan. The key to a successful budget is realistic and disciplined. One way is to create a separate account for account-Affairs monthly shopping Bill, pay utilities, investment accounts, and account-specific, such as “My shopping account” or a “Spa for me”.

3. Automatic Debit
Employees should also have automatic debit instructions to each account. However, it could also, every payday date according to the Fund’s budget directly spread to account-account. If you are not familiar with electronic transactions, use the methods of the envelope. Fill the envelopes in accordance with the budget that month. If you already started to thin, but not yet the end of the month, yes forced to downsize.

New employees who do not have dependents, should also be set aside at least 20 percent of the monthly salary for investment. The recommended investment course which gives the greatest profit potential such as stock or mutual fund shares, because the objective for the long term.

4. create a priority

What if it turns out not as big spending plan intake?  step makes the priority by using the ZAPFIN method. This concept is a very easy way to make a priority in the budget. Any income received, should be used with the Division of Zakat, Assurance, Present Consumption, Future Spending and Investment

You could say that our financial activity-whether it be credit card debt, monthly expenses, house rent, or bills, home loans can not be separated from our lives. Therefore do not be surprised if the large amount of debt or financial condition we will directly affect the emotional life, physical, and spiritual. Imagine when half of your income should you contribute back to the bank to pay credit card debt every month. It is a sign that you’re driven by money (or debt). Income is no longer a sign that you’re independent, but rather a source of stress due in part to be used to pay off debts. “Women need to build a healthy and honest relationship with money,” says financial expert Suze Orman. “We also need to see this relationship as a reflection of our relationship with ourselves.” It is important to maintain that our financial condition remains healthy. Suze Orman says, there are at least five things that indicate that your finances are healthy enough:

1. You realize with a “money personality” you. This can be seen from your family background, whether your parents invest in property, having an account at a bank that sets interest rates low, mutual funds, or that they are in debt? Your habit of saving and using money, the way you invest, argued about money, and how the financial perspective, partly shaped by how you treat your parents’ money when you were little. Your money personality directly affects your relationship with money, and the more you aware of this, the more you do not depend on money.

2. You dare to take financial risks. Dare to take the financial risk does not necessarily mean you dare to invest Rp 100 million in new business of a friend, or your hobby shop with a credit card bill until you reach hundreds of millions of dollars. Financial risk could also be classified as a smart move, for example if you buy a house as an investment, or looking for ways to earn money from your hobby.

3. You have savings, investments, or credit card account itself. Many women who want to leave their husbands, but could not because they do not have their own income to finance their lives. If you have accounts at the bank itself, it already indicates that you are financially independent women.

4. You have financial goals individually and in pairs. Your goal as a married couple, usually the home is being able to pay bills in a matter of a few years. Your goal as a working woman is to increase income to several million dollars a month. While the husband may also have its own purpose, but related to investment. As a woman who has the freedom to manage earnings, you should also set goals that are separate from your partner.

5. You understand fundamental financial issues. Call it the health insurance, pensions, interest, income taxes, and so forth. The more you master financial problems, the more you become independent, because you know what you should do with your money.

Invest your savings

Placing the funds you set aside each month in the bank sounds like a wise decision. But when explored further, many banks now offer only the interest rate at 7-8 percent range annually before taxes of course. With a final tax of 20 percent, the average bank interest rate ranged only in the 6 percent-an. If the calculated rate of inflation per year, which was in the range of 7 percent of the savings you earn can not keep pace with inflation. Each year the value increases but it decreases your purchasing power.

That is why choosing the right investment instruments in accordance with the level of your tolerance for risk and investment period becomes very important. We want to give a little illustration relating to interest rates and terms of the investment period. For example, if you have the current funds of $ 100 million and you invest in a savings account with an interest rate of 8 percent for 20 years. After 20 years then you will earn around $ 466 million (taxes are ignored). When you invest in investment instruments that provide 12 percent interest you’ll earn about $ 964 million (taxes are ignored). So with changes in interest rates given the same time frame as well as provide the total funds that are very much different. The longer the investment period the greater the difference in the total funds available. n

Everything we do in the world around us revolves around money. If you have money, everything is easier, more accessible and without concerns. Many say that money does not bring happiness, but it will certainly help to maintain it in your life.

Anyone who wants to earn more money throughout their lives. Think about it. As an employee do you want to come, look for better job, which pays more and requires less labor time. You want to own your career to spend more time with family and friends, something that beats should work anywhere. As a business owner look for solutions to make profits, to get a life with fewer financial worries.

No matter what anyone says, we are all looking to make money, much of it. Let’s say you have some money stashed away for investment. While searching for the right opportunity that could lead to financial freedom, start thinking a little outside the box, clear ideas about real estate and who knows what else from the head.

This is an age of computers. Internet rules our world, from industry to home shopping. Internet also opens many doors if you try to make money with a small amount to start investing. You can think of owning your own business, making profits as you go, you are able to own your career with work-at-home jobs, or you can invest money in something that can help you become rich.

I do not know about you, but recently I discovered Forex. This is the largest international market in the world, where money is sold or bought. If you have not heard of it before, it is not uncommon to approach the idea with skepticism. This is the place where you can earn money by using your own money to trade. Did I not tell you all about the money?

This is where you should consider becoming a player. Speculating transactions to monetize their results imply easy access to the financial freedom you are searching. The average volume of all transactions that occur in the forex world is constantly growing and in April 2007 it reached 4 trillion and is now over 30 times as much of the U.S. stock market.

If you want to own your career by leaving the job and become a major player in this field, you should be aware that speculation is not very easy, actually it is very difficult. Speculation in the forex is not as easy as those on the exchange. This is where you play with fire, and trust me when I say it can be very easy to get burned, especially for a beginner. Read the rest of this entry »

I always receive messages and comments asking for a list of books I recommend on personal finance. Here is a list of books for people who want to read more about this fascinating world of personal finance. Note that these are books that have particularly interested me and I learned a lot from them but does not mean you’re going to have the same conclusion.

The Richest Man in Babylon by George S. Clason
This book is about applying knowledge about things that seem common sense but not all use them. The author entertains and teaches techniques on how to build wealth with your income and how to be successful with your money through anecdotes.

Rich Dad Poor Dad by Robert T. Kiyosaki
This is a very good book I’ve read several times. The book may seem a bit extreme in the examples but lets take a look the ways of how “rich people” and “poor” have their finances. The examples given in the book can be impractical but it teaches you the importance of saving and investment. Learn how money works for the rich and the poor work to earn money.

The Money Makeover by Dave Ramsey
The author of this book speaks also talks about how to manage money more efficiently, but still does an excellent job in the area of debt. Here you will find many tips on how to reduce or eliminate your debts and start to live a prosperous life without them.

The Only Investment Guide You Will Need by Andrew Tobias
An essential guide for how to invest your money. This book explains very well the world of stocks, bonds and mutual estates. I read the book in English and was very detailed and easy to follow. According to criticize the Spanish translation is a bit difficult but the essence is there.

How to Win Friends by Dale Carnegie
This book is not necessarily about personal finances, but it is essential for self-improvement and personal development. This book will help you implement things in your daily life that lead to success in interpersonal relationships. It helps you understand better how to deal with people and get what you want from them.