DiezMillones.com

Archive for the ‘Finance’ Category

One of the symptoms that usually occur among young people who had incomes is increasing needs of life, the increase in expenditure. Whereas, before earning his own (the parent post), he usually can not live with ‘crude’, but when it can be ‘independent’, the pattern of his life had changed little by little.

Many diagnostic There are things that can be used as steps for managing finances, especially for the still ‘long life’ and on the other side of the mental ‘adequacy of a sudden’ after his own income.

First, 50 percent of revenue. that is, spend a maximum of 50% of revenue / income (take home pay). This concept of training to always live under its maximum capability. because it is not always the wheel of life is above, below and sometimes pinched condition. if we can earn 1 month, then with 50% of revenue, it is enough to live 2 months. If 3 (months or years), then 6 (month / year). That’s a practical example.

From the above concept, then at least 50% of revenues will be saving (saving). Minimal, so it could have been larger nominal must be saved than spent. by savings or deposit it, then trigger the next action.

Second, investment. The most fundamental cornerstone of investment (in the real sector) is the value of money that continues to decline with time (time value of money). even greater savings, real exchange rate account large will diminish as time passes. say great interest (interest) or profit sharing (profit sharing) of financial institutions a maximum of 6% per year, while annual average inflation of 8%, then the value of the saved money in the exchange rate will fall 2%.

In addition to consideration of time value, there are other considerations involved moving the real sector and the social. The real sector is the field of business engaged in the community. real sector are not related directly to the macro-economic right, represented by the level of economic growth, GDP (Gross Domestic Product), balance of payments, etc., or with the devices are like the stock market. It could happen, a country with high GDP JCI fantastic but the real sector was not enthusiastic. it may be due to new investments (real) does not occur and the only ‘game’ the sale or purchase of shares (or other means of financial exchange) only.

Investment of social reasons, because it is usually close friends or relatives who pioneered a new business requires venture capital or investment, where formal financial institutions are likely to assess the feasibility or confidence level (reliability) is low on the new efforts are initiated. Of course, it does not mean investors of non-financial institutions do not count the risk. What a pity, if the sacrifice is done with the concept of 50% had ended with no results even lost investments as well anyway.

It seems, investment issues will be discussed in more detail in another article later on, because there are some things that should be equally considered in investing, namely profitability (profits), durability (resistance), and the most important blessing.

So, the more important at this time how to run the concept of 50% so as to set aside money as much as possible (in nominal investment ’small’, is certainly very rare), and then think for investment. his question then, what is the minimum amount of income so that the concept of 50% could walk?

The question provides a subjective answer because the ’standard’ every person is different. A factory worker in Jakarta will probably earn about 1 million (according to the UMP) and with some extra to put 2 million to the home (take home pay). There is more below that number, but not a few others on it.
Then, the concept of moving from 50% below the limit. For example, if you earn 2.5 million, then 500 thousand at least can be saved. And if 10 million, the maximum expenditure shall be 5 million. once again, all up to personal because ‘living standards’ of each is different, between a person single or married, who had married between the two of them worked or one, and between live jakarta or jogjakarta. Number 2 would be great for the former students of seacoast could ever live with 500 thousand / month (excluding tuition fees + rented), or become meaningless because 2 million of this is already out of fuel for cars (let alone the toll, parking etc).

However, that’s where we actually have to measure ourselves, where we actually are. The essence is, paradigm and our cleverness in managing finances and as much as possible to set aside some money. And do not get, like the saying goes, Big Pole Instead pegs. Huge income, it could open opportunities to deviate is greater. That’s right, but not forever guarantee. Even more certainly, a big income will encourage people to more spending.

Finally, rather than the size of income, but how much can be saved and should, give ’souvenirs’ to the mother, although he still could, because he would be happy with his condition. And do not forget, the obligation of zakat and or infaq to be fulfilled.

One of the most important thing in our lives is to organize / manage your money. If you can not manage money (financial management) you with the best of it, then you like to put wine in a plastic bag with holes. In other words, your hard work in collecting the money would be wasted. What arises in your mind, when asked about how to manage your money? Here is an outline of our finances:

1. Collect
Your money does not come by itself, but the effort required in your job to be able to collect money (use of consulting services / accountants). No one if you collect your money with your own efforts; is wrong is when you make money everything.

2. Issue
You should be able to manage your money for the things that particularly. Often spend more than the income you received (for it was in need of financial management is in need is a consulting / public accountant). This is very unhealthy. Would recommend that you use the services of accountants (eg public accountant, financial accountant)

3. Store
Often times to save is a difficult thing. But you have to get used to you to save money, since it is one of the keys so you can manage your money well.

4. Invest
If you have enough savings, then you can invest your money. For this investment, consult with experts before investment income such as the accountants and public accountants regarding financial accountant you will encounter when you invest your money. An investment that needs to be done is an investment in the form of land or a house, because this is one of our requirements that the price will keep rising.

5. Give
Last key in regulating the money you are giving! Maybe you will think about whether giving money included in the set? I said Yes! Why? Because when you give to people in need, then you’re investing your money for their future.

Use credit cards as a means of payment has been used extensively. Easy way to get it spelled out. Use it wisely can make a credit card as your financial aid. But if not careful, your credit card can make big incurred debts that will destroy your finances.

Flexibility and many benefits offered credit card partially offset by the danger either temptation to buy and live outside capabilities. It is also the danger of abuse and credit card fraud. Given the danger behind the use of credit cards, then the wise thing what can you do?

• Do not have too many credit cards
Having many credit cards will charge you to pay annual dues and make you tempted to spend more. If you have more than two credit cards, you should immediately close the other credit card. Considerations in choosing a credit card which will be maintained, among others, interest rate credit cards, credit cards and limit the benefits offered by credit cards really useful for you.

• Budget funds for credit card
In preparing the budget, enter the maximum amount of funds which may be used by credit card.
• Keep track of purchases using credit cards
With a record will help you know how much you should pay so that will help you ‘put the brakes on’ next purchase. This entry can be matched with billing statements to see if you really make the purchase.

• Try to always pay the full bill
This is useful so that you are not burdened by a very large interest. Do not be tempted to just pay the minimum bill. If you already have a mortgage or credit card debt, prioritize earnestly to immediately pay off your debt by being more frugal. For example, by reducing the visiting cafes, the mall or eat out. When boarding or renting your home, consider whether you can move to another place that is cheaper.

• Avoid using credit cards to withdraw cash
Credit cards can indeed be used to withdraw cash at an ATM, but this is not free. You must pay interest on cash withdrawals an even higher value than the interest rate for spending.

• Beware of credit card fraud
Mode of credit card fraud increasingly diverse either by phone or Internet. So, it could still be careful with not notify the credit card number, expiration date, or other information to strangers.

Incoming search terms:

• how to use a credit card (1)

There are a few different ways to raise funds for your start up. The traditional path is debt financing, which involves taking on a bank loan or private loan. A different approach is to seek equity financing by issuing stock in your company. In essence, this option allows you to sell shares of your company to investors, injecting your business with cash and leaving the investor with the chance to make a high return.

Pros of Equity Financing

Equity financing allows you to cut out the bank as a business partner. Instead of spending cash on loan repayments, you can use the infusion from equity investors to grow your business. Furthermore, equity investors help reduce your personal risk in the business.

In the event your business fails, you would still be required to pay back any bank loans you take, or reorganize the debt payment under bankruptcy protection. Equity investors, however, usually don’t have the same rights as debtors; you would not be required to return their original investment in the event your business collapses, for example. Equity investment should be viewed as a long-term solution and a means to inject both cash and experience into your start up.

Cons of Equity Financing

If you’re seeking cash for the short term, offering equity is not the right approach. Investors want their capital to help the company make good investments and position itself for medium- and long-term growth. If your cash flow hasn’t picked up as you expected, you may want to call a bank instead. Furthermore, you’ll have to cede some control over your company’s operations if you offer stock to investors.

Consider what your long-term strategy is for your business. Shareholders will be looking for a plan to get a return on their investment, and that plan could include merging with another company, selling the company to a larger firm, or conducting a public stock offering which would then allow investors to sell their stock on the open market. Along with sharing control, you’ll also be sharing the profits. Make sure to run the calculations on any potential equity agreement: You may find that you’re paying a larger percentage of your profits to investors than you would toward a bank loan.

Some sources of equity financing

• Venture capitalists. Venture capital funds are professional investment organizations that invest in growing industries in order to make a profit. VC firms know several of their investment choices may not pan out but are willing to take that risk in return for an occasional windfall. Securing a venture capital firm that specializes in your industry means you’ll be bringing in owners who can offer experienced opinions on running the company but may also seek to exert significant control.
• Angel investors. These are individuals who have a personal stake in seeing a business proposition succeed. Angel investors tend to focus their investments on sectors in which they have a personal interest. The equity arrangement with an angel investor is similar to that of a venture capitalist.
• Initial Public offerings. Depending on the nature and stage of development of the company, it may be possible to raise funds by offering shares in the company to the public. This activity is highly regulated and expert advice should be sought prior to embarking on this route.
• Corporate venture capital. This is capital provided by established companies in return for a stake in your business.

A decision to opt for equity financing over debt financing is largely a personal one and in part determined by your appetite for risk.

Incoming search terms:

• financing (32)
• bank loan (6)
• Bank loans (2)

In some organizations, managers and leaders fall into the trap of believing that financial management is something that the accounts teams are fully responsible for. While there will be areas like cash management, payroll, paying suppliers and collecting payments from customers that are likely to be handled by the accounts team, financial management falls into the remit of all managers and leaders. Mangers often have concerns about this area, often believing that it is difficult and complex. The truth is that if you are an expert in your area of the business, you can excel in financial management.

1. Be actively involved in setting a budget

Most businesses now devolve budget responsibility as much as they possibly can. As a result, managers have a chance to be actively involved in determining things like:

• Sales volumes
• Temporary staffing cover for vacancies
• Staffing levels to deliver the sales
• Buying preferences in terms of products that will be used in delivering agreed volumes
• Investment in new equipment or facilities

2. Be clear on your assumptions

A budget is a plan for the future based on the best evidence you have at the time you prepare it. You will have to make assumptions about things like sales growth, staff turnover, sickness, price inflation, etc. Make sure that when presenting your budgets the assumptions are clearly stated.

3. Work with your accountant

Your accountant who works with you in the business is essentially your personal business advisor. Use your accountant in this way and you will reap numerous benefits. Your accountant gets a better understanding of your area of the business and what the key drivers of revenues and costs are, which will be immensely helpful when it comes to reviewing performance throughout the year.
In addition, your accountant can model results for you based on different assumptions and help you to get a much clearer picture of the risks that might need to be managed.

4. Share the budget with your team

As a manager and leader, your success depends on the results of the team. Take the time to share your budget with your team, including the key assumptions on which it is based. If the team know what they are aiming for in terms of financial results, they will look to do the right things operationally to get the best result.

5. Take responsibility

When the going gets tough it is so easy to start to look elsewhere for excuses. If you have been involved in setting a budget which you have signed up to, focus your energies on getting results rather than the injustice of the current situation.

6. Monitor performance and take action

Make sure that you have a process in place to carefully monitor your actual performance against the budget. If things are going well see if there is more you can do to boost performance even further. If on the other hand things are not going as well as expected, focus on the changes you need to make or action you need to take to get back on track.

7. Focus on the most important numbers

When it comes to financial management, managers can sometimes get lost in lots of detail and trivia. Be clear on what are the 2-3 big numbers that you need to pay attention to, as they will more than likely constitute about 90% of your budget. In most businesses this will be:

• Income from sales or services
• Salary costs of employees
• Major non salary cost such as materials

Make sure that you have as good an understanding of what impacts on these numbers at the business unit level so that you can keep things on track. At the end of the day, internal financial statements such as budgets merely reflect what is happening operationally in a common currency called money. Keep this at the forefront of your mind and you have a great chance to excel as a manager.