Basic Mistakes In Financial Planning

The importance and value of personal financial planning you probably already know from our seminars and webinars. Today we offer to talk about the main mistake that people in the process of drawing up such plans.

The first mistake - this is an unrealistic goal. Of course, we all want a lot of things at once: the apartment, but no one, and a new car, and travel four times a year, and children learn in the best universities of the world, and to provide loved ones in full, as well as any does not deny. Dreaming, as they say, not bad! But the goal must be real!

As an example, consider the goal: to accumulate 1 million per year. How real is it? The answer will depend on the resources that man has today. Do you have a salary, which could delay a decent amount every month? Is there a financial reserve to start investing? Do credit obligations and whether the system is organized to generate additional income? ..

Remember! Before you decide on the purpose and its value, it is important to assess the current financial capabilities and financial instruments that you want to use. Competent analysis will help to understand how the real goal you set, and whether you have enough resources to achieve it.

The second mistake - is unrealistic deadlines. Consider the same example: 1 million per year. Now, let's talk. In principle, save 1 million, even with unfavorable financial situation may be, but is it possible to do this year? ..

Having defined the goal, realistically assess possible! Plan a date based on your financial capabilities.

Basic Mistakes In Financial Planning

What happens if the objectives and deadlines are unrealistic? Our brains can not figure out what to do to achieve them. He does not see the strategies and options, are not able to understand the methods of achieving. The goal becomes unattainable, and goes into the category of illusory dreams. No action - no motivation. As a result, we are "spit" on purpose and forget about it. Would you like to forget their purpose? We do not think! Then consider our recommendations.

Many people, when they make a financial plan does not take into account inflation. Do not lay that expenditures and revenues will grow, and this - the third error in planning. If you run one or two years major changes can not see it in five years, inflation will be strongly evident and affect the achievement of objectives. Those funds that you persistently hoarded in many ways, may not be enough for realization of its goals. Therefore, it is necessary in the planning and definition of objectives to take into account the average percentage change in inflation and to reflect this in financial terms.

We already wrote about the importance of assessing the assets and liabilities, and so little attention to the reduction of liabilities is another serious mistake in planning. Actions orderly repayment of credit and debt should be written and implemented. For advice and strategies to get rid of liabilities, as well as augmentation of assets, it is better to turn to a professional financial adviser.

One of the basic principles of financial management is a regular investment, and if you successfully exploited this advice and become an investor, it is required to consider in terms of their income from this cash flow.

Well, the last recommendation - start thinking about securing a comfortable old age for yourself now! Even if you have 20, 30, 40 years and it seems that old age is still very far away, it needs to be concerned about his future. Start to create a "safety cushion".

Today we discussed the basic mistakes in personal financial planning. Using this knowledge, you can create an effective strategy for achieving personal financial freedom and prosperity. For more tips and advice, please contact a professional consultant Agency for International Investment "Rich!"

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How To Start The Path To Financial Success?

With the key financial skills that will make you richer. That is why the Agency for International Investments "rich," has decided to become the general sponsor of All-Russian Olympiad for high school students financial market, which has been held annually since 2008.

Just last Olympics was attended by over 24,350 students from 83 regions of the Russian Federation. Many of the participants have continued their education in the financial sector and is successfully working in the financial market.

Why is this project important? Because, unfortunately, the Russians still know little about how to create sources of income and prefer to take out loans, paying crazy interest.

Meanwhile, bankers do not hide their true goals, as evidenced by the recognition of Chairman of the Board Alla Tsytovich Uniastrum Bank on Banking Forum Adam Smith in London. According to her, the problem of banks that there is a whole category of people who do not want to live on credit. "The question is, how to drive in the credit bondage, that they finally began to take out loans," - she specified.

A senior vice president of BIN Morsin Peter, referring to international experience, added: "As citizens of the retail loans are planning for a year or two, but we are interested in the longer term, for example, ten years, or people transferred their debts from one generation to another ".

Unlike bankers, we offer you to receive interest, and not to pay them. That's why we sponsor the Olympics on the financial market, and we hope that the younger generation will never know what it means to live on credit.

Finally 5 good tips from billionaire Warren Buffett: 

1. Stay away from credit cards.
2. Invest only in yourself and remember that the money does not create man, but man - is the one who created money.
3. Live as easy as possible.
4. Do not chase the brand, wear those things in which you feel comfortable.
5. Manage your life for yourself, it's your life, not someone else's!

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How To Save Money By Using Credit Cards?

The absurd at first glance the question. All have long known that loans and credit cards - this is continuous costs. What kind of savings are we talking about here? It turns out - you can!

Each of you, probably, saw for various reasons, a particular store or supermarket arrange promotions and significantly reduce the price of a product or group of products. At such moments the coffee, which usually costs 240 dollars can be sold for 150, vermouth, sold in a nearby store for 650 dollars, you will be offered at 450, and if you take two packages of detergent or cleaning agent, the third you give as a gift. Such shares exist and prices are real.

What usually does in such a situation, the ordinary man? He picks up two packages of powder to get the third free, it takes one or two cans of coffee, and so on ... Few takes longer because the amount of money earmarked for the expenses, all limited and if buy coffee , it is not enough for meat, etc. .d. In this situation just can bring real benefits to the credit card.

Interest rates on card loans now account for an average of 19-23 percent per annum. Buying, say, coffee for 150 dollars instead of 240, you put yourself in a savings of 60%, if we consider the amount that you spend. Thus, even if you pay off the loan as much in a year, the bank will pay for the coffee, taking into account the interest on the loan, 184 dollars 50 kopecks, and 55 dollars 50 kopecks will be your income from savings. With a small amount of banks, but with 10-20 - already quite palpable. Because, to repay the loan, even if the parts you sooner than one year, means additional savings on interest, and your income will be higher. We can not lose sight of the fact that food prices are rising, inflation in obedience, and thus will continue to rise in price and coffee (vermouth, powder, etc.), and your income from savings will increase.

Your income from the "credit" will be even higher if you get a credit card, which implies bonuses for calculations on it. In recent years, banks are increasingly offering maps, providing a return of the money spent on your account or transfer of a certain percentage to your mobile. Paying a card for a bargain, you earn not only discounts, but also get a bonus from the bank. 

How To Save Money By Using Credit Cards?

As you can see, by using a credit card you can really get the income from savings. It is only important to consider the following points:

1. Pay attention to the real interest rate on the credit card. Hit the nearest bank with an effective rate of 45% per annum is not necessary. On the market for a bank offers to bet 19-23%.

2. Buy items that you use regularly, not sporadically.

3. Buy products with a long shelf life, shelf life that does not end soon.

4. Try to get a credit card, which implies bonuses for calculations on it, to generate additional income.

5. Do not forget to make timely payments to repay the loan. To such redemption does not cause you psychological discomfort, you can save money on them whenever taking the new packaging that you purchased. And, the better to postpone an amount equal to the current value of the goods in the store. So you, first, will repay the loan, and secondly, at the end at the hands you will have a tangible monetary income. And the income that you can hold in your hands, and then to spend on yourself or anything you need, always pleasant theoretical paper income.

Good luck, happiness and prosperity to you!

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How To Build a Personal Budget

Many are wondering how to build a personal budget. American Learnvest.com portal offers step by step instructions on how to clean up the personal finances.

1. Assess your income:

Perhaps you have a very respectable salary, but after the taxes you have to only a fraction of that amount. Spending on the life you have what is left after all the tax deductions, as well as pension and insurance contributions.

2. ... And The Cost:

Your budget should be two items of expenditure: fixed and unfixed. The amounts of fixed costs remain the same each month - for example, the rent for the apartment, cable TV or the Internet. Accordingly, the non-fixed costs are subject to change - in this category, for example, includes food, utilities and transportation. Fixed costs are more predictable, and non-fixed, you can plan more flexibly - for example, if you want to save something.

However, even the fixed costs and are subject to change may be reduced. For example, if the rent for an apartment is too high, you can find cheaper housing.

Here is a sample list of items of expenditure.

Fixed costs:

- Rental fee;

- Loans (if any);

- Cable TV;

- Mobile connection;

- Internet access;

- Gym.

Floating charges:

- Utilities;

- Medical services and medicines;

- Products;

- Restaurants;

- Alcohol;

- Laundry service;

- Travel / leisure;

- Beauty salon;

- Clothes;

- Transport;

- Entertainment;

- Cafe;

- Caring for pets;

- Gifts for family and friends (birthdays, holidays);

- Charity.

The Desires And Needs:

Remember as a child my mother to explain to you the difference between "I want" and "I need" when you want brand new inline skates? It's time to freshen up this lesson in his memory, because not all expenses needed. When deciding for yourself, you need this or that purchase, ask yourself: "Do I live without ... next month?" If the answer is "no", then the purchase is necessary and you should be included in the budget. To the need to include rent, food, utilities. Surfing the restaurant and entertainment will surely make your life more fun, but these expenses should be secondary to your budget. Any extra money to spend on it - great, but do not forget about spending priorities. 

3. What do we spend the money:

Make a list of all your income and expenses - learn checks and balances, find out what you spend your money. Here's a sample list: 

How To Build a Personal Budget

Income:

Costs:

- Pension contributions;

- Savings (do not forget to lay a "rainy day");

- Rental fee;

- Utility services;

- Repayment of credits (if any);

- Cable TV;

- Medical services and medicines;

- Mobile connection;

- Internet access;

- Gym;

- Products;

- Restaurants;

- Alcohol;

- Laundry service;

- Travel / leisure;

- Beauty salon;

- Clothes;

- Transport;

- Entertainment;

- Cafe;

- Caring for pets;

- Gifts for family and friends (birthdays, holidays);

- Charity.

5. Savings:

Never too late to start making savings. No more excuses - start today. Savings - a great start-up capital and an investment in your future. Then you say to yourself, for it is "thank you."

6. How to save?:

You can save on a lot of things. Here are a few tips:

Drink more water. Avoid carbonated drinks - and you, and your wallet will feel better;

Eat at home. At the restaurant leaves a lot of money - and if you live in a big city, then the cost of a meal in the restaurant, respectively, increases;

Make a shopping list and stick to it strictly. Resist the temptation to shop.

And yet - do not forget to turn off the lights when you do not need, go bigger and smaller use the machine, and most importantly - always remember the ways to save money, you know that.

7. Use computer programs for managing personal finances:

Now the Internet can download a variety of programs, with which you can calculate their costs and plan your budget. Often use such software.

8. Strictly adhere to the budget:

It is not only the right to make a budget, and stick to it religiously. At the end of the month check against its costs and how they coincide with what you had planned earlier this month. If at first you did not work - not terrible, all comes with experience.

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The Seven Deadly Sins In Terms Of Finances

In the traditional seven deadly sins have financial equivalents. If you indulge in one or more of them, the problems with finances can not be avoided. Site CreditCards.com advises how to not give in to temptation, and make a choice in favor of virtuous behavior.

1. Greed:

Insatiable desire to possess more and more wealth (and buy them for credit funds) can lead to huge debts. Specialist in Public Relations from the State of North Carolina Melissa London said that a few years ago after divorcing her total debt for six credit cards amounted to 25 thousand. Dollars. It recognizes any and all financial sins, including greed, "I dined sumptuously with friends, pamper yourself and fill your wardrobe first-rate designer clothes." The most frivolous purchase, which the lady did - it's not even one, but two pairs of expensive shoes from Christian Louboutin. "I do not know why I bought them - after all, I did not work and stayed home with the children. But I really needed those shoes on a 9-centimeter stiletto "- recognizes London.

Those who prey to the temptation of overspending, Vice President of Public Affairs of the US National Organization for Credit Counseling (NFCC) Gail Cunningham advises realistic look at their own finances. "It is important to honestly assess their means to recognize that the resources are exhausted, and to determine the personal financial strategy. And greed - a recipe for disaster, "- she adds.

2. Gluttony:

Overeating - disaster of our time: just look at the obesity epidemic in the United States and around the world. But according to Larry Uindzheta writer, author of the book "You have not because you want to be poor: how to stop surviving and start to prosper» (You're Broke Because You Want to Be: How to Stop Getting By and Start Getting Ahead), gluttony easier indulge in when you pay for it by credit card. "Once I was standing in line at the airport the woman, who wanted to pay for a chocolate bar card, but the card is not accepted," - he leads a vivid example.

Instead of paying cards for fast food or a bottle of soda (and then pay exorbitant interest rates), better manage cash or refuse such expenses at all. According Uindzheta, "if you do not have paper money for chocolate, it means that it is you really did not need." However, Cunningham argues: "Reduce costs is easier than to abandon them altogether."

3. Envy:

The desire to have new things - such as friends, neighbors, or even TV stars, can also become a temptation for cardholders. "We are inclined to watch the others on TV and say to yourself:" I want it now! "- Confirms Uindzhet. "The next day, after the passage of the TV show celebrities on the red carpet at the opening ceremony of" Oscar ", shops make record revenues. Clothing - one of the most frequent reasons for envy "- says the expert.

Owning a new-fangled gadgets can also cause a feeling of envy, adds Steve Rhode, head of consumer finance site GetOutofDebt.org. One of his clients, a student wanted to buy iPod just because all of his friends have been the player. "He wanted to buy a gadget, using credit card, but his card account have been devastated. I told the client: "Do not use plastic for this purchase" - concludes Rod.

Cunningham, in turn, advises to buy the object of his jealousy only when the buyer is sure that soon will return the debt by credit card, otherwise the envy bring to the debt.

4. Lust:

Sensuality - in all senses of the word - does not lead to good, including in situations related to credit cards. "In the case of financial lust - is an unquenchable thirst to buy all new and better time after time" - confirms Cunningham.

However, sometimes it is the most ordinary lust. Steve Rhode once advised a client who persuaded his wife to have an operation to increase the bust for 15 thousand. Dollars. In this kind of money he did not have, and the operation was paid for by credit card. "I asked my client why he did it, to which he replied:" They're so good look! "- Says Rod.

The Seven Deadly Sins In Terms Of Finances

If you still can not resist his desires, the experts recommend at least wait until you are on it means.

5. Sloth:

Laziness can result in a delay of credit payments, lack of clarity in the financial situation and the very high payments on loans. Melissa London argues that the cause of a large part of its debt was inaction, "I was lazy to inquire about the status of their loan balance and to take responsibility for their money."

Professional financial advisors recommend that you carefully study all the statements on the cards immediately for penalties, errors or fraudulent transactions, as well as to immediately pay all the bills. "If you are lazy with respect to their own money, it's really a problem. You have to work very hard and finally solve it "- confirms Gail Cunningham.

In addition, clients should carefully study the market of credit cards in search of the best deals. "People are often too lazy to look for the most advantageous offer for yourself. But this often does not even need to leave your bank, but just be ponastoychivee and agree on the best conditions for themselves. It requires perseverance and a few phone calls - five, six or seven "- explains Larry Uindzhet.

6. Anger:

Anger can cause a lot of trouble, if the credit card becomes an instrument of the former site of a spouse or lover. Financial experts have even invented a special term for this kind of action - "the cost in retaliation."

Among the clients was Uindzheta couple who suffered because of this problem. The wife was fond of shopping on the internet auction site eBay, and she has a closet was occupied by these acquisitions, which she hid from her husband. He eventually learned this secret, have not found a better way to "even the score", but to go out and buy a motorcycle, says the expert.

Usually exorbitant spending do not remain unpunished. In the case of the couple said their costs have resulted in even greater debt. "They could not afford any all this nonsense with eBay, or a motorcycle," - confirms Uindzhet.

7. Pride:

Personal finance experts say that pride - a common cause not only climbing into debt, but at the same unwillingness to seek help from.

For New Yorker Tiffany Black says that was too proud in his student years and never asked her family to help with the purchase of textbooks, food, clothing, and even tickets for the journey home during the holidays. "I just used a credit card. And if I did not behave well recognized that I needed help, then maybe I would not have done such debts, "- says Black, whose result was 12 credit cards and 27 thousand. Dollars of unpaid debt.

In addition, because of false pride clients often do not seek help from professionals and specialists in finance, adds Cunningham. "In a stressful situation, people often decide that themselves right. But to delay seeking help - hence exacerbate the problem. The sooner you consult a professional, the better, "- she advises.

The key to getting rid of the financial sins - an honest look at the real situation in their own finances, as well as its behavioral motivations. "Money matters means not only money, there is always something else. Sincerity and awareness in relation to their finances - the first step to getting out of debt, "- he concludes Rod.

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Learn How To Save Money Personal Finance

At a time when wages are reduced, and prices are rising, it is difficult to force myself to make savings. There are some simple tricks you can use to work out at this useful habit.

1. Act on autopilot. You may have heard the phrase: "Pay yourself first of all." This is the best way to learn how to save money: with the other accounts as it writes a check to his advantage. Keep a separate account for different occasions (to repair cars, vacations, retirement savings).

You can also automate the savings to each pay a certain amount is transferred to your personal account. $ 20 a month, which will be invisible to the general budget, will output 480 dollars a year. Also, try to increase the amount of contributions every six months.

2. Accumulate detail. Perhaps a student you had a special bank where you pour small coins. Remember this rule. If you have children, you tell them that you can buy when the piggy bank is full. You can exchange the change in the bank notes or use it for payments in vending machines (just make sure that there is no exchange fees or they are low).

This process can add to your annual budget of a few hundred dollars. In addition, you will loose your wallet from heavy coins.

3. Forget about your raising. You have added the salary? Wonderful! But before you spend your money piled on, increase the amount of savings (see number one way). If you scroll to the accounts of the annual premium, that means you have broken the annual inflation rate, and if you have increased the service, the money you still have enough.

Rather than spend a raise, invest in something really important for you - for example, pension funds, or family vacation.

4. Stick habits. You paid a car loan a few years and finally paid in full. Rather than spend the released funds, pretend that it is still repay the loan, only to himself.

You can automatically transfer money into a savings account; If you want for years to come, they will come in handy when it's time to change the car. Imagine paying for a new car, this is a great motivation. 

Learn How To Save Money Personal Finance

5. Who has found that and money. We all sometimes happens to find money in the pockets of old coats to get forgotten fees and so on. Rather than squander this money in a shop around the corner, add them to your savings. Anyway, this amount does not make the weather, but it can help you become one step closer to the goals you set for yourself.

If, however, found the temptation to put money away is large, divide the amount into two parts: one half to have fun, while others are still adding to a savings account. So you make yourself a nice today and invest in your tomorrow.

Savings should not be difficult. The above small tricks to help you reach your goals faster than you might think at first glance.

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How To Protect Your Personal Finances During Disasters

Wherever you live, there is always the likelihood of earthquakes, hurricanes or terrorist attacks. The media publish materials on how to protect themselves and their families in such cases, but it should take care of the protection and personal finance.

Firstly, it is necessary to present different scenarios and what steps you need to take these situations. For example, imagine what you would do if you were a few minutes warning that your house will be destroyed during the disaster. Or less extreme scenario - the house will remain intact, but you will in a few days will be forced to live without electricity, telephone and transport. Imagine that you have survived in such circumstances and count in your mind, what things are and what information you may need.

The usual safety measure - a small suitcase with essentials that you can take with you in case of evacuation. This bag is put first aid kit, water bottle, a flashlight, a battery-powered radio, a fabric mask and so forth.

But most people do not think about what to do to protect such personal finance situations. Here is a sample list of what you need to bring along in case of emergency:

• Wallet, which must be cash, driver's license, credit cards and health insurance. Keep all the necessary papers to you in an accessible place, so that they can quickly bring a if necessary. Do not forget your passport;
• Cash. Make untouchable money supply. You'll need it, because the money for daily expenses are spent quickly, and run to the ATM in extreme conditions, may not be able to; In addition, the device may fail in such circumstances;
• Cell phone, smartphone, various gadgets like iPad. Certainly you need to take and charger, do not interfere, and a solar-powered charger. All of these devices is better to put on recharge in the evening, so that they are fully charged in the morning;
• A list of numbers of your insurance policies (property, a car, a life insurance policy and so on.). You can write them not only on paper but also add to the phone memory;
• A list of numbers of your bank accounts (pension accounts, deposits) and credit - mortgages, car loans . Be careful with passwords on your online accounts: this information should not get to the strangers. If you store the data in the phone, zaparolte them;
• The key to the bank deposit box, if renting such.

How To Protect Your Personal Finances During Disasters

Here are a few steps that should be taken:

• Keep documents (wills, copies of contracts, insurance policies, and so on.) In a safe place, preferably in a fireproof and waterproof box or home safe;
• Examine your insurance documents. Find out what will be the size of insurance payments and optimize the terms of the agreement, if the payment will seem inadequate;
• Keep in mind that at the time of the disaster, you may not be a source of income - especially for freelancers. So you definitely need money for a rainy day;
• Not spending all the credit limit on credit cards - it can come in handy in case of emergency;
• If you have a car, did not hurt to have a spare can of gasoline - perhaps in the case of unforeseen circumstances, you can not fill the car.

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If You Want To Change Your Life Then Change Yourself First

So, write down the most important thing. If you want to change your life by changing your thoughts first. If you desire to live richly and freely begin to vaccinate yourself thinking that you do so. The rules, which I am now going to give you, and will be key to your success.

Firstly, everything depends on us. Only you can make yourself the way you want to be. God gave you the potter's wheel and clay, and a pitcher you have to mold itself. Second, in every situation there is a choice: even when there is no choice of action, there is a choice of how to treat this.

Third, if you really want something, all the forces of the world will contribute to you in this. Difficulties can you check the time - to erase the desire, but if you really strive for your goal, then the whole world will be at your side.

All has been said so emotionally that people sitting at the next table, stopped eating and stared at my companion.

- Is that all? - I almost asked indignantly.

- Everything! - He said.

Only many years later I realized that it's really all you need to know in order to achieve anything in life. But then, I longed for action and did not attach importance to hear more.

Mentor meanwhile continued:

Today we'll talk about money for a few years, you stop to think about them, because you do not reflect constantly on his tie? This is because you have it. So, the money should be in large quantities. Before we get to our financial plan, I want to ask you: how much money is held for the life of a man with an average income?

This question has puzzled me, but he paid no attention to my stupefied look and continued:

It is interesting that even in Russia - about $ 100 000 to a million. This is a great state. Potentially we - millionaires, but in fact the rich - less than one percent. This is because we do not know the value of small. What prevents us to multiply it many? The most common mistake - an opinion that investments are available only to those who have a large start-up capital. Assume that everyone has the opportunity to save a dollar a day. For many years it was considered that the investment of just one dollar a day by 20% per annum for 32 years lead us to a state of a million dollars.

At this point, I almost fell off his chair, shouted:

- A million! And just one dollar a day?

Right someone choked.

- Yes, yes, a million - smiling, he continued - and if you invest for 67 years at the same percentage as the state will be a billion dollars!

Of course, the prospect of becoming rich at the end of life is not very happy with me, but the fact that in life you can make a fortune in a billion, changed my view about money.

- From what you can give up today to get all of what you dream, tomorrow? - I asked the instructor.

- Most likely, neither of which I can not give up - I'm so much does not allow - I replied.

- Well, let's see. Do you smoke, likely at least a pack, or even two a day? Your cigarettes worth more than a dollar. Could you give up this bad habit?

- For the sake of a million?

- Yes, and for the sake of health , too.

- Easy, - I said, crumpling a pack of cigarettes in his hand.

The teacher continued:

How often do you spend money on things that do not use then? Or those habits, from which you can easily give up? Think about it - in your hands will be sufficient cash resources.

Later, after analyzing their spending, I realized that about 30% of my monthly income is wasted. Potentially, anyone can save a life sufficient funds to provide several generations of his descendants. But in fact, people are spending money every day without giving it any importance. Ignorance is worse than theft. Today, they rob themselves, tomorrow will be to blame others.

Look at Table 1, where I present various calculations of how much capital can be obtained by properly investing their money.

Table 1. Calculation of investments and income

* If the interest rate of 20% per year.

The first lesson - saves!

1. submit monthly financial plan - three months it will go at you in the habit.

2. Pay yourself first. The first article in your financial plan - invest at least 20% of the income.

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Financial Freedom: What Prevents Us To Achieve It?

Financial Freedom As A Goal And A Way Of Life:

Financial freedom requires a passive income (those that do not require you to work) in excess of your daily expenses. Ideally, the passive income to cover all your current expenses and still means for saving and investment.

Regulation of financial freedom is very attractive because it allows longer work, or work on your discretion. In this case you are not worried about credit, currency, loss of employment and the ability to support their families and themselves, etc. Do you have a regular income, independent of and not requiring daily work, but providing you a decent life.

Beauty! So live is really great! But what prevents most people on the path to financial freedom? What are the main obstacles?

The Main Obstacles On The Road To Financial Freedom:

1. False beliefs and attitudes derived from their parents and society.

We are taught that the first thing young people need to buy an apartment and a car. This is the main indicator of a wealthy man and the family. According to him the success of parents estimate that surround people, colleagues, friends, etc. So we estimate our potential husbands / wife. It is also important to dress in the latest fashion, only brands, but also to go to prestigious restaurants, ski resorts and so on

Therefore, to buy an apartment and a car becomes a major program of action, at any cost. To do this, many borrow or lend money. Plus, the high cost of any excesses, without which it might well have been dispensed with, if there was a basic understanding of financial freedom and this freedom itself stood as a goal. Then have a plan of action and strategy would be completely different, and achieving financial freedom - feasible. But we just do not see this goal, and even more so, the way to achieve it. Other agenda and life! A pity ...

Financial Freedom: What Prevents Us To Achieve It?

Also, many believe that financial freedom is attainable only to those with very high earnings. But it is not so! Income - is only one of the variables of the equation! Much more important is how you manage money, how you configure your property / how and when making a key acquisition in life (apartment, car, house, etc.), how to save and invest money, etc. And another very important factor is time. If you're doing it right - working for you, and you will become easier, and if you do wrong - you become more and more difficult.


2. Lack of basic knowledge and understanding of the basic principles - how it works, how it should be arranged personal finances to secure financial freedom.

False beliefs and at the same time setting based on the lack of basic knowledge, as well as prevent them from finding and receiving. Many do not even think that can and should be different. And even if a person realizes that something is wrong, that there is some besmyslenno and hopelessness in the infinite earning a living in the ever-growing needs, rarely ask the right questions and looking for real answers - you need to put the right target.

On the other hand, would be knowledge - would be other purposes and beliefs. After all, if you understand the basic principles just to achieve financial freedom. To do this, just need to efficiently manage money (at the level of common sense).

3. Lack of faith / belief that financial freedom is attainable in principle. Man believes that understands and he believes his entourage.

If all share the belief that the apartment and the car at any price - the only financial goal in life is difficult for us to think differently. The more examples of people around who have attained financial freedom, the more information and knowledge of the person, the greater is his belief that to achieve financial freedom is not hard - you just need to understand how to do it, and do what you need (and it is very a).

4. The passivity and indecision, lack of preparedness and capacity to act. We are so arranged that act only in the direction of what we believe, and we understand, in the direction of our beliefs. It is a vicious circle that is easiest to break, having the necessary knowledge and to understand the issue.

What to do and what is the way out?

As you can see, everything is interconnected - attitudes, beliefs, knowledge and action. And you need to change the situation, just in reverse order starting with the understanding and knowledge that will lead to a change of opinion and further to the right plans, decisions and actions.

Step № 1. To study the basic principles of managing personal finances and achieve financial freedom. It is better to go hands-on training with a teacher, who himself reached similar results.

Step № 2. Determination of financial strategy - baseline optimization of personal finance to achieve financial freedom. It's simple, if you have the knowledge. Or need professional help to help paint the plan and put the correct target.

Step № 3. To live and act in accordance with the planned strategy. It is mainly about making the right financial decisions that with minimal effort, would lead to a situation of financial freedom.

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Why Is It Important To Manage Your Personal Finances

What does it mean - to manage your personal finances? Why is it important, and what you need to strive for? What are the main principles and approaches?

In the previous post I described the difference between financial success and financial freedom. Financial success is usually associated with higher wages and greater material goods at our disposal (and the need to constantly work to earn and even more). Financial freedom requires that your income and expenses are organized so that you do not have to work, and well-formed incomes allow you to live in dignity and not to worry about loans, foreign exchange rates, loss of employment, etc.

I am convinced that we need to strive not to financial success and financial freedom. It allows you to financial freedom really live a full, relaxed and harmonious life. So all people have to live!

The quest for financial freedom (goal - to reach the state of financial freedom), determines the need for skillful handling of expenses and income, making the right decisions on major acquisitions (apartments, cars and other expensive facilities), the ability to maintain and increase money.

Without planning and management to cope with such a task is not possible. On the way to financial freedom must be able to analyze your income and expenses, to be able to take informed decisions regarding the purchase / sale of property, savings and the accumulation of money, etc.

Why Is It Important To Manage Your Personal Finances

 

What you need to manage your personal finances? Difficult it?

Difficult it? Not if you understand the basic principles. Do I need to do any special tools? You can do a simple calculation to Excel, almost without using any complicated functions of the program.

In the planning of personal finances (or family finances) you define the main objectives for savings, income and expenses (for the long term - a year or several years, and for the week / month), acquisitions and additional sources of revenue.

The main parameters, is very simple to perform and adhere to the slightest discipline in handling money. It is also much easier to make competent decisions regarding the purchase / sale of property, attracting / closing credits.

I personally have over 15 years of practice, planning and personal finance. Having tried various techniques and programs has gone trial and error. Now I've done simply and clearly. Planning takes a little time, and cost accounting - even less.

Financial freedom is worth the small effort of learning how to do the planning personal finances and accounting of expenditures and revenues. A financial freedom is worth more than financial success.

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The Main Errors Of Those Who Aspire To Financial Success

Many of us strive for financial success. Many would like to earn good money, but not much to this stremsyatsya because they do not know what to do, or just lazy, thinking how it all hard.

In fact, the main obstacle on the path to financial well-being - the lack of knowledge (rather simple, almost at the level of common sense), as well as the influence of misconceptions and attitudes.

 

Misconceptions On The Path To Financial Success And Well-being:

• Financial success and well-being involves a high income and are only possible with high earnings.

Have a great income is good, but not enough to be financially prosperous. More importantly, how to relate to your income and expenses, as well as what their structure and reliability. In simple words, the financial well-being / freedom - is a situation where your income exceeds the income, plus income sources are organized so that you do not necessarily work. Revenue comes not only and not so much on the work, and mainly from other sources. It is therefore more important to efficiently organize their income and expenses to get a positive result.

• Financial success and well-being need to buy a lot of things and have a

Often the purchase of a luxury apartment and the car turns into financial slavery, especially if the purchase is made on credit or in debt. Promotional offers banks sounded tempting. We were on all sides beckoning not postpone life for the future, to live now, talk about how comfortable and good use of loans. But loans are tied to the exchange rate and the rise in price dramatically. Plus, it makes a huge amount of interest a year. With skillful planning, you can do without loans and make banks work for you, not you to the banks. If you change the strategy, the difference is huge. You do not lose on interest and add interest to their salary. You, however, there is another salary.

Even without the loans, expensive cars and apartments require fixed costs (repairs, insurance, etc.). When understanding the principles of personal finance management can do differently with these acquisitions, avoiding the financial burden, and vice versa, adding additional sources of income, bringing the time of financial freedom for themselves and their families. How to do it, I will write in my future posts.

• The rich must be born

Most of us grew up in regular families. Wealth inherited get a little. But all is not so bad. The main thing - to understand how to do it, to understand the main points in the management of personal finances and stick to a simple strategy / plan. within a few hours, days, you can make a clear step by step plan. Within a few months to significantly improve the situation, in six months, a few years to achieve full financial freedom. It is important to know and understand what to do. No more ...

The Main Errors Of Those Who Aspire To Financial Success

• First of all you need to buy a car and apartment renovated, in whatever that was!

This favorite setup of our parents and grandparents. For them it is the main indicator of well-being of an individual or family. And this is the most harmful misconception is the greatest prevents us from understanding the simple principles and make the right decisions, condemning to a vicious circle of financial slavery - apartment and a car loan and the payment of a lifelong work credits (now the apartment and a car, then at large - when the family and will expand). It is an endless story leading to the complex and hopeless life and eternal relation to work or business. Why do we need it?

Discarding this setting, we can all do it differently - first create sources of revenue, and then use them to buy everything and maintain. It is not difficult if you know what to do.

• It is better to take a loan or installments to buy a new apartment and a car. It's easier. Otherwise, never buy.

If we accept that in the first stage can refuse to buy an apartment and / or machines, and more importantly to create sources of income, the decisions are quite different, but the results are stunning. You can organize your life so that banks will work for you, your money will work for you. And they will buy, and will contain an apartment, a car, a family, pay for your vacation, clothing and entertainment ....

• Loans (percent) -of your opportunities.

• We need to work or to make a career, or to create their own business. In another way to become rich is not possible.

Initially, you need to earn money. Yes, and it may be interesting and fun. The main thing to dispose earned money. Then, for several years after the start of working life, you can build a competent set of sources of income. In sum, with the earnings from employment or business, they will allow you to more quickly come to their goals - financial freedom.

 

What conclusion and where to start?:

I suggest that around quietly understand and to act correctly - to earn money and skill to dispose of them. I am willing to help you - to teach, to tell, to conduct a step-by-step on the path to financial freedom and financial well-being.

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How To Easily Start Keeping Track Of Your Finances?

How often do we say to ourselves, "I do not have time to keep track of your money," or "Oh, I forgot again (a) to make expenditures for the 4 days! We'll have to start all over again." Can I start a record of their "hard-earned" without instantaneous adjustment of your lifestyle? Five simple steps will help you with this.

When a customer writes a pervading theme of "help start saving," you always want to help. However, in family finances, unlike let's say from the health, can be made independent preliminary step "self-healing".

So.

1. Do not vanity "Haste is needed only when catching fleas and ...." (Shchukar). Do not rush to read a bunch of books written for free, much less paid seminars.
Look, calculate your costs for a week in any convenient form.

2. Read the deficit! Calculate the cost per month and compare with their income. Calculate the difference.
If negative - that you have a deficit. This is normal.

If revenues exceed expenses - you - is brilliant and you can move on.

3. Save easy! Do not try to just cut back on 20% of their costs. It is better to do it smoothly.
Start with what you could have done a year ago. Restaurants, light snack on the way home, the amount that you could not remember where to spend - here is your resource.
These savings can lead to equality of income and expenses in your budget.

How To Easily Start Keeping Track Of Your Finances?

4. Plan your budget for the week! Try to make the budget next week, and already at this stage to calculate each item of its expenditures. Holding up actual money spent during the week and by comparing actual expenses with planned amount, you will realize how much you are to perceive their financial situation.

5. month living with a new budget! Just do it. Look at your record, you will be doing during this period.
Pay special attention to your feelings and emotions, where every day you will make to your spending log book.

If you work at your budget is not observed sharply negative emotions - you can safely go ahead and look for training, books, advice of consultants who will lead you on to your financial security!

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Personal Financial Plan Best Advisor Tips

The desired objectives and results can come in two ways: by acting on a hunch, intuition or acting systematically and according to plan. The first option may seem simple, but in fact "the road to dodge" and where in the end you will come, it is practically impossible to predict. The second method takes more effort at the start, but it pays off "in a way."

Therefore, if you decide to approach the issue of managing their money consciously, you need a tool with which you will be able to see what's happening in your personal financial world today, and what actions need to be taken to achieve the desired tomorrow. This tool is called a personal financial plan.

Making personal financial plan requires a special approach and attention, because of how well and thoroughly you think about your strategy to the goal will depend largely on the outcome.

The first thing you have to do - to objectively assess the current financial situation and start to track it over time.

The ideal option if you already have a personal budget scheme, i.e, your income and expenses for the previous months you thought. But even if such information is "on paper" is not, do not worry. Individual financial plan is a long-term view and, therefore, time to learn to adjust your budget and you will have plenty.

In addition to the revenue and expenditure in assessing the current financial situation should take into account your existing assets (anything that can be sold) and liabilities (debt securities of any kind). Assets will objectively assess your resources and liabilities show where and how much you "sink."

Personal Financial Plan Best Advisor Tips

Compiling a personal financial plan, be sure to make it a strategy to get rid of liabilities!
After we have seen what is happening in our personal financial world really thought through how to reflect the situation, you can optimize the budget and outlined the strategy for getting rid of liabilities - is the time to look to the future. Put financial goals.

It is clear that each of us are not financial targets 1, not 2 and not even 10, but in life there are a number of events that can be predicted and predictable. Wedding, birth of a child, buying cars and real estate, education of children, the pension - it is expected things. Therefore, the further preparation of the financial plan goes as follows:

Based on current prices, we can assume how much money will be needed to implement the plan. Furthermore, we can predict the time at which it is desirable to us to attain the goal.

But! Here it is necessary to take into account two very important factors. First, the calculation of the cost is required to take into account the average percentage change in inflation. And secondly, the calculation of deadlines, it is important to remember their financial capabilities.

This approach will give an understanding of what it is better to use the tools of investment to achieve each of your financial goals. A regular investment, matched with the personal financial plan - one of the basic principles of successful financial management.

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The Best Time To Invest It Is A Crisis Finance Tips

In times of crisis, there are only two models of behavior. First - hide and wait out. The second - to fight and win. Many believe that the crisis is not worth trying to invest their money for fear of losing them. Such people last fall raised money and kept them at home. And what happened?

We perfectly know the answer to this question. Their accumulation halved in December, when the ruble collapsed. One of the main ways to protect yourself - is to invest, trusting their investment companies. 

According to Tatyana Gryaznov, Director General of company "AMI" rich, "" In times of crisis, incomes are rising investment professionals. After all, what is a crisis, really? This is a period of instability and sudden changes in quotations on exchanges, exchange rates and so on. D. And it is on these changes and make traders and investors with them. "

Moreover, in such periods investment companies try to attract the maximum number of customers and offer them the most favorable conditions, the most effective rates and lowest amount to enter the investment portfolios.

Everyone takes for itself the decision whether or not to hide from the crisis, or earn it. And every man is responsible for the consequences of his decision. So, how shall it those who piled rubles in cans of coffee last fall.

And for the rest of the hotline is always open to international investment agencies "Rich!", Where each will receive answers to all questions: 8800700 43 73 or you can contact me on line for advice.

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Top 10 Financial Mistakes That People Make

Error 1: No "safety cushion":

The vast majority of people believe that any accumulation of completely useless: all lose anyway, so why save when you can spend it all now and buy some necessary thing? Perhaps a specific moment of life decision may seem true, but after some time, you may need a certain amount of contingency: minor repairs in the apartment or pay medical or increase the rent or salary delays ... Referring pay these expenses if no savings at all? Credit may not give, and to receive it often takes several days or even weeks, and you may not be this time.

That is why it is important to remember about the first rule: you should always have a savings of $ 3-6 monthly cost of an emergency.

Error 2: Reserve "under the mattress" rather than bank:

In Russia, at least 50% of the population use bank deposits to 5% - are investors in the stock market. And for the reason that few people trust some financial instruments, preferring to keep the accumulation of houses under the pillow / mattress / in the bedside table, and others. In fact, this kind of "investment" provides a guaranteed income minus 10-13% per annum! The reason is simple - inflation. So, your current 500 thousand. Rub., Placed in the nightstand, turn 5 years already 310 thousand. Rub. with an inflation rate of 10% per year.

So the second rule: do not keep accumulating in the bedside table - it is better to place them at least for a bank deposit to save from inflation. Are you afraid of a bank failure? Teach that when placed in a bank up to 700 thousand. Rub. If you revoke his license, you are guaranteed to return the contribution to the safe and sound thanks to the deposit insurance system.

Error 3: Improper loan options:

When choosing a loan, it is important to remember that it should:

• Be in the currency in which you get your salary. Most often it is Dollars. If tempted to take out a loan in foreign currency at a lower rate, then you can get the growth of your monthly mortgage payments by 30-50% due to the devaluation of the ruble;
• Not be too large: take a loan is not "with reserve" just in case, namely the amount that you need. Note that taking extra 50 thousand. Rub. on credit, you must return the bank is already 75 thousand. and more;
• Not be too long: take credit for the time that the loan payment was feasible for you, but not too low. Please note that the loan of 200 thousand. Rub., Extended for 5 years instead of 2, will lead to the need to pay the extra 110 thousand. Rub. jar.

So better to take a loan in rubles, for the most desired amount and for a minimum period, to payment on the loan amounted to 20-30% of your income.

Error 4: The chase for yield:

The risk-free yield is higher than the interest on deposits does not exist. Therefore, the income above 12-17% in rubles and 5.9% in foreign currency are guaranteed associated with risk of loss of some or all of your savings. So when I saw an advertisement for a guaranteed yield higher interest on deposits, it is better to bypass this company party, t. To. With very high probability it will be a pyramid scheme.

Top 10 Financial Mistakes That People Make

Error 5: Investment without a time limit:

It is not possible to invest properly if you do not know for a particular purpose is made. The "earn" - is not the goal. The aim should be time, cost and priority. Only by clearly defining it can intelligently find the right tools for you to invest. So, if you invest with a view to save up some important goal in 1-3 years, it is better to prefer bank deposits and highly reliable bonds or bond funds.

If it is a goal of 3-10 years, in addition to deposits and bonds, you can add to your portfolio of up to 50% of the shares or equity funds. Well, if you invest for 10 years or more, it is possible to increase the stake to 70-80%.

Error 6: Underestimating their response to risk:

If your co-worker or neighbor will invest in equities and rejoices yield of 20% and higher, it does not mean that you have to buy them immediately. The fact is that each person - their level of risk appetite. And if your neighbor is willing to tolerate at times fall in the value of its shares to 50%, then you may be not ready for this, you sell stocks just at the wrong time, get losses and investments will be disappointed.

It is therefore very important to correctly identify their risk tolerance: if you are not ready for a significant drop in the value of your investment, place most of the funds in deposits and reliable bond. If you are ready to swings size of your savings - can be a significant portion of their place in the action.

Error 7: Neglecting insurance:

The Russian insurance Apartments, machines and the more life is unpopular, t. To. The majority believes that they just do not happen. Life is insured by less than 2% of the population, although one of the most common causes of delinquency and defaults on loans are just incidental expenses for treatment. Such costs to repair flats for compensation flooded neighbors below, to restore their health in most cases are unexpected and require substantial expenditure to which not everyone is ready. Therefore, property insurance, liability and life is the key to confidence in the future of each person.

Error 8: Start saving for retirement for a couple of years before it:

The pension as a financial goal is rarely one meets a large part of the population about it not even think putting "for later". Meanwhile, if you want to retire at 40 thousand. Rub., Then you need to set aside each month for at least a bank deposit of not less than 25 thousand. Rub. for 10 years! If you remember about the pension for 3 years before leaving her, then retired 40 thousand. Rub. you will have 3 years to postpone to the deposit already 130 thousand. rub. per month. So you need to think about retirement at least 10 years before.

Error 9: Ignoring tax benefits:

Not so many people know and enjoy all kinds of tax deductions. In the meantime, anyone can get into the account each year to 15 600 rubles., If he pays for training, treatment, invested in their retirement or was engaged in charity work. If you buy an apartment or a house, you can get the account up to 260 thousand. Rub. plus additional compensation for interest on the loan for the purchase of real estate. Thus, at the mortgage in the amount of 5 mln. Rubles. 15 years at 12% the use of tax deductions on interest would return 13% of the amount of interest paid on the loan - more than 750 thousand. rub.

Error 10: No personal financial plan:

Personal financial plan - it's basically a rarity. But his absence may lead to serious consequences. For example, if a person thinks only of buying a car in a year, but the purchase of an apartment at 3 years and payment of education of his son after 10 years, he has no plans, it may well be that he has accumulated the required amount on the car, but the increased transport costs It does not allow him to accumulate the amount of a down payment on the mortgage. As a result, he will buy an apartment without down payment, with a smaller area than we would like, because the more he did not have enough opportunities.

Because of the large credit payment will not be able to save a total of training his son, and he will not act in the best university to get to the free office. If by that time education will be fully paid, son just did not have anything to receive it. On retirement the person in question and can not speak. And all this adverse scenario has occurred only because the person in front of him had only one goal, not a full-fledged financial plan that takes into account the target until retirement.

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Financial Plans Using Achieving Financial Forecast Includes 4 Steps

The financial plan is often part of the business plan that scares entrepreneurs. Indeed, few of you have been asked to make a financial forecast and it's true that some seem a little intimidating at first first.

Rest assured with our business plan software and resources below you should do it quite easily. Before you jump headlong into the calculations, it may be helpful to take a step back in order to have a better understanding of the content and the financial issues.

What Is The Financial Plan?

The financial plan of the business plan aims to give an indication of the financial performance and future cash position of the company.

Nobody can predict the future accurately, the role of the financial plan is not to predict the future, but to quantify the most credible scenario based on the information discovered during the realization of your market research.

What Questions Should Respond Financially?

Your financial partners have specific expectations regarding the financial plan for your business plan. To better understand we recommend reading this article the issues facing the financial side of your business plan.

What Is The Content Of  The Financial Plan?

The financial plan must contain at least the following projected financial statements for the next 3 years:
 

The projected income statement shows the profit or loss realized,

The forward estimate showing the financial situation of the company (debt, equity, and assets)

And cash flow forecast which shows the ability of the company to generate cash.
 

These forward-looking financial statements devont be accompanied by analysis and commentary retailers key assumptions used to establish them.

If you make your financial forecast as part of a business, a monthly version of these financial statements you will usually be required for the first year.

How To Make A Financial Forecast?

 

 

 

Achieving financial forecast includes 4 large steps we have detailed below:

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