Only this morning I happened to chance upon a very instructive and informative video on the do's and don't's in relation to financial planning in general and wealth creation in particular. The video is recorded by the world-renowned Robert Kiyosaki and his associate. You can view this video for free by clicking on the link below:
Click here to watch the video...
Do post your comments on my blog if you have any, after viewing the video.
Friday, March 14, 2008
Thursday, March 6, 2008
Financial Planning: Save Money By Preparing and Analyzing A List Of Expenses
With the advent of shopping malls, the accessibility and affordability of technology, the rising costs associated with health care, servicing of loans, and the effect of rising inflation, it has become very difficult for one to spend less and save money for future use.
Current statistics indicate that there is a considerable decline, in percentage terms, on each bank account holder’s savings and also that there has been an increase in the average number of withdrawals per month, leaving people with little money to spend before the next salary credit hits their respective bank accounts.
Coupled with this statistic is the fact that retail outlets marketing a wide range of consumer products have reported a significant increase in the their respective sales revenue, thereby indicating that the age of consumerism is truly alive and kicking!
While these facts and a host of temptations are a commonplace scenario in the real world, there are many ways by which you can keep yourself from being sucked into the hype and in the process assist you in creating and developing your personal and unique habit of saving a few bucks from your monthly salary income. The following are some of the measures that you might find useful to adopt:-
Ø Avoid Compulsive Buying– Given enough money, 7 out of 10 people are easily tempted into buying a personal item they get attracted to in a store at a first glance.
In a simulated sociological study, people who originally planned on merely window-shopping ended up buying personal items in cases where they had their credit cards with them.
If you are doing window-shopping, limit your spending to a few bucks and try making your list the next time you plan on buying such items. Buy only the store items you need and abandon those that do not satisfy an immediate need.
Ø Budgeting – Along with your objective of saving money, it is also important to keep an organized and effective, yet reasonable budgeting technique. Budgeting helps to eliminate impulsive buying that would tend to build up during trips to the shopping mall, thereby enabling you to save money which you would otherwise have spent on items that are not really necessary. Shopping according to a list which is drawn up beforehand will certainly help in this saving process.
Ø Performing Price Comparison– The World Wide Web provides a great avenue for obtaining a checklist of prices on specific items that you plan on buying.
This will work very well for you if you are into bulk buying and plan on conducting your shopping activity in one place. This process will give you a good idea if the usual store from where you usually get all your everyday household needs actually offers you a reasonable price for specific products.
Ø Take All the Convenience At Home – Lunch, snacks, and major meals are something which you can prepare at home. If you are serious on saving money, you can prepare all this from home and get away with some amenities of the gut by replacing soda with water. This is not only beneficial to your pocket but does a great deal for your health as well.
Current statistics indicate that there is a considerable decline, in percentage terms, on each bank account holder’s savings and also that there has been an increase in the average number of withdrawals per month, leaving people with little money to spend before the next salary credit hits their respective bank accounts.
Coupled with this statistic is the fact that retail outlets marketing a wide range of consumer products have reported a significant increase in the their respective sales revenue, thereby indicating that the age of consumerism is truly alive and kicking!
While these facts and a host of temptations are a commonplace scenario in the real world, there are many ways by which you can keep yourself from being sucked into the hype and in the process assist you in creating and developing your personal and unique habit of saving a few bucks from your monthly salary income. The following are some of the measures that you might find useful to adopt:-
Ø Avoid Compulsive Buying– Given enough money, 7 out of 10 people are easily tempted into buying a personal item they get attracted to in a store at a first glance.
In a simulated sociological study, people who originally planned on merely window-shopping ended up buying personal items in cases where they had their credit cards with them.
If you are doing window-shopping, limit your spending to a few bucks and try making your list the next time you plan on buying such items. Buy only the store items you need and abandon those that do not satisfy an immediate need.
Ø Budgeting – Along with your objective of saving money, it is also important to keep an organized and effective, yet reasonable budgeting technique. Budgeting helps to eliminate impulsive buying that would tend to build up during trips to the shopping mall, thereby enabling you to save money which you would otherwise have spent on items that are not really necessary. Shopping according to a list which is drawn up beforehand will certainly help in this saving process.
Ø Performing Price Comparison– The World Wide Web provides a great avenue for obtaining a checklist of prices on specific items that you plan on buying.
This will work very well for you if you are into bulk buying and plan on conducting your shopping activity in one place. This process will give you a good idea if the usual store from where you usually get all your everyday household needs actually offers you a reasonable price for specific products.
Ø Take All the Convenience At Home – Lunch, snacks, and major meals are something which you can prepare at home. If you are serious on saving money, you can prepare all this from home and get away with some amenities of the gut by replacing soda with water. This is not only beneficial to your pocket but does a great deal for your health as well.
Monday, March 3, 2008
Financial Planning: Tips On Credit Card Usage
To some people, credit cards are the best things to happen since sliced bread. Having a credit card is indeed very convenient because it makes carrying a lot of cash unneccesary. Most of us will not leave home without taking our credit cards along with us. But, as with most things in life, the advantages of having a credit card(s) come with a price. Since you can always buy things without carrying cash around, you are always tempted to buy things on impulse which you might not necessarily need. If you have excellent control on your finances, then good for you. If you have a hard time managing your credit card, then the following pointers can help you:-
Get organized
First things first, obtain your credit card records to have a better idea of your spending habits. Be sure to double check the records for errors and ensure its accuracy. A good example would be to find out if you have outstanding debts that should not be there as well as the accuracy of the listing of your former and present address.
Evaluate your credit card
Go over your recent credit card records and look at the interest rates. Some credit card companies have promos wherein they offer lower interest rates for a period of time and this promo may already be over yet you have no idea and are already paying at a higher interest rate. Also take note of the membership fee which they charge annually since some have very high membership fees. Consider cancelling this if you are not using it frequently.
Pay on time
It is important to pay your bills on time since it can have a negative effect on your credit record or rating if you don't. You will also be able to avoid getting charged because of not paying on time. Try asking the credit card company to remove the overdue charge if you have forgotten to pay it on time for the first time.
Manage your debts
If you see that you have more debt than what you can manage comfortably, think ahead and plan out how you will repay it entirely or at least reduce it as far as possible. Devise a way to pay more than what is required of you so that you will have a reduced payment schedule. Prioritize the card that has the highest interest rate. Unless absolutely necessary, do not bring your credit card always when you go around since temptations abound.
Don't bite off more than you can chew
As the saying "don't bite off more than you can chew" goes, do not spend more than you can afford. True, a beautiful gold bracelet or a branded gold watch may give you moments of pleasure when you have the occasion to wear it, but the price tag may mean paying a lot for the next months. If you are bent on saving money when using your credit card, unnecessary items like jewelry and the like should be at the bottom of your considerations.
Get organized
First things first, obtain your credit card records to have a better idea of your spending habits. Be sure to double check the records for errors and ensure its accuracy. A good example would be to find out if you have outstanding debts that should not be there as well as the accuracy of the listing of your former and present address.
Evaluate your credit card
Go over your recent credit card records and look at the interest rates. Some credit card companies have promos wherein they offer lower interest rates for a period of time and this promo may already be over yet you have no idea and are already paying at a higher interest rate. Also take note of the membership fee which they charge annually since some have very high membership fees. Consider cancelling this if you are not using it frequently.
Pay on time
It is important to pay your bills on time since it can have a negative effect on your credit record or rating if you don't. You will also be able to avoid getting charged because of not paying on time. Try asking the credit card company to remove the overdue charge if you have forgotten to pay it on time for the first time.
Manage your debts
If you see that you have more debt than what you can manage comfortably, think ahead and plan out how you will repay it entirely or at least reduce it as far as possible. Devise a way to pay more than what is required of you so that you will have a reduced payment schedule. Prioritize the card that has the highest interest rate. Unless absolutely necessary, do not bring your credit card always when you go around since temptations abound.
Don't bite off more than you can chew
As the saying "don't bite off more than you can chew" goes, do not spend more than you can afford. True, a beautiful gold bracelet or a branded gold watch may give you moments of pleasure when you have the occasion to wear it, but the price tag may mean paying a lot for the next months. If you are bent on saving money when using your credit card, unnecessary items like jewelry and the like should be at the bottom of your considerations.
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