When simple access to plentiful credit is gone and financial resources have already been exhausted, people today are abruptly faced with the realization that they are going to have to handle their money and potentially the way they reside. Do not be concerned, money management will not need to be painful.
Listed below are 7 HIGH-LEVEL Important POINTS to kick off a money management program that I typically go over with my clientele:
1. Get out and keep out of credit difficulty. The credit card companies were developed to place us within a compromised position so they will charge us much more money, much more charges, and greater rates of interest. Place yourself inside a powerful position away from becoming victimized and abused by the bankcard industry again – this signifies prevent making use of credit cards for discretionary things that could effortlessly drown you with debt. Keep in mind, the dirty secret is that they want your credit score to below.
2. Establish and list out the varieties of assets you’ve got. If you’re going to invest your money into something, be sure they may be income-producing assets. If you commit your money on cars and clothes and also the like, you will locate yourself acquiring nowhere in life financially, that’s an absolute.
3. Figure out and list out the forms of debts you’ve. How much do you owe in educational loans, bank card debts, dwelling maintenance, and so on.? Anything over 11 months is considered long-term debt on a Debt-to-Income worksheet and should be included. Paying bills on time does not mean you are in a price range and hoping all the things will work out on their own is not a method! The explanation that people never do that on their very own is mainly because they …
Who are those people that make
lots of money in the stock market? Do you know anyone?
Do they even exist?
Well, yes, there are people who
make fortunes investing in stocks… and they aren’t solely working on Wall
The difference between those who
make tons of money investing in stocks and those who grudgingly shrug their
shoulders at yet another disappointing stock statement is illustrated by my
tale of two investors.
Daniel is 46 years old, married,
and works for the government. In some of his spare time he reads the Wall
Street Journal and some online stock investing blogs. He works 40 hours per
week… well yeah, he still works at the same job he’s been at for 21 years.
Daniel started investing in stocks 15 years ago. As of this year, after a very
dismal 2008 and 2009, his annual rate or return is 4 percent.
Joseph is 42 years old and works
at home. Like Daniel, he’s married; unlike Daniel he doesn’t punch a clock. He
earns a living investing his sizable nest egg of cash. He also invests a pool
of money for other people. No, Joseph does not live in Manhattan and he didn’t
inherit money. He lives on Main Street and 6 years ago, when he started
investing in stocks, he was working as big box retailer manager.
For this article, Joseph was kind
enough to have his assistant calculate his rate of return over the past 6 years.
Even Joseph was surprised at the return. Joseph has earned 41 percent per year.
I don’t have to tell you that the
investing results between Daniel and Joseph are pretty different. That’s an
understatement. Both of our stock investors are self-taught and build their own
stocks list. Neither started with a windfall of …
When an investor buys shares in a
company or organization, they effectively buy part of that company or
organization, or part of it if you want. Furthermore, the company’s performance
will determine the value of shares, and overall investment. Because stock
performance is related to earnings, companies that perform well will see an
increase in the value of shares, with the opposite effect associated with
companies that perform poorly.
Investors in a company are called
shareholders, and they receive payments in the form of dividend payments that
fluctuate in the company’s overall performance.
Investments in stocks are also
known as ‘stocks’ and ‘equity’, and the stock market falls into two separate
categories, the primary market and the secondary market.
There is only one reason for
companies to sell shares and that is to increase capital to develop it. The
company does this in two ways.
Issuing shares on the stock
market for the first time, also known as ‘floating’. Companies that have
floated and offered new shares to increase capital.
Most investments in shares are in
the secondary market, where company shares are traded every day. Price
movements are relative to the company’s performance over time and demand for
shares can also push stock prices up.
Share prices are reflected by
supply and demand. Stock prices rise when demand for certain stocks is high. In
other words, when more investors want to buy shares in the company than sell
them. The stock price will decrease when more people want to sell shares in the
company than buyers. Lower stock prices make stocks more attractive to buyers.
There are other factors involved
in determining stock prices with events in the wider world playing a role, as
well as investor psychology. Factors that determine …
Of course nothing to do with Shakespeare, but an old
question nevertheless. If you are starting up a new business, or expanding your
current one, should you partner with an investor/VC? If you do what should you
expect? The choice depends on your ambition and the success depends on your
partner of choice.
From an investor’s point of view, the next 4-5 years
represents an excellent recruitment market window. The market is far from
buoyant but the sentiment is on an upwards curve. Like buying a house, no-one
wants to buy at the peak of the market or at the bottom of a lifeless trough.
But catch the market as it’s rumbling into life and you’re on to a winner. If
it’s good timing for investors to get back into growth mode it’s an ideal time
for business owners.
Are you ambitious? Of course you are. You are in recruitment
and successful enough to contemplate starting a business or are running one
already. But ambition means different things to different people. One end of
the scale, “A”, could be to run a ‘lifestyle’ business with a small
to medium sized team and simply be your own boss. At the other end,
“Z”, it could be to grow a business to IPO. Where you are on this
scale dictates what you should do.
Let’s be clear, if you are nearer “Z” than
“A” on the ambition scale and you choose the right investor your
chances of creating genuine wealth FAR outweigh going it alone. It’s not just
the money but the decisions you make all along the journey, knowing that you
have backing. It’s fully committing to plans versus trying things out
cautiously. It’s structuring the company for success from the outset versus
discovering along the way that …
Like in all businesses marketing is an essential part which must not be
overlooked by an individual consultant. If you are a financial planning firm or
an individual financial adviser, marketing is very important for you to have a
substantial promotional strategy in place. With the increased amount of
competitiveness if you are not building your markets from time to time very
soon you might be left behind in the business.
Most of the finance advisers do not invest in marketing; however few of the
advisers make little effort towards marketing which does not help much in
fetching the results as expected and eventually they stop marketing themselves
at all, thinking it just doesn’t work for them. On the contrary you must
understand that marketing is all about creating and branding, mixed with great
communication and off course followed by consistent doses of quality, value for
money and great customer care, and the more you work on it each year it just
gets better. Building new customer base along with managing the existing
clients can be quite a challenge, and to keep up with the new working trends
needs a good strategy so you keep reaping new clients from the existing
clients. If you have been telling people, that you are a finance guy and you
really don’t know a thing about marketing, you will be surprised to know that
you are probably among the few professionals who are most of the time actively
practicing live marketing techniques.
As a first step to marketing yourself as a financial adviser, you will need
to have a well designed business card. This is often considered the first step
as people will know about your services and remember you through it. Spending
good time on this will yield you a long-term …