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SAVINGS……THE ULTIMATE SOLUTION!

November 26, 2009

  
 
It doesn’t matter how much money we have, what matter is how much money we keep.

We need to remind ourselves all the time that Income is temporary (loss of job, business failure, disability, death) and Expenses are permanent. How are we going to deal the permanent expenses with temporaty income.

SAVINGS, the ultimate solution. Make sure that as you grow older, your savings is ever increasing until you reach financial independence. You cannot work hard to earn all your life, we need to learn at the same time Making Money work harder than us. Learn how to save the right way vs. the wrong way.

And that’s the mission of our business, educate everyone about Financial Planning. Let me also tell you that savings has 2 components, PROTECTION AND INVESTMENT. Make sure you have enough protection to your family. While investment comes both short term and long term.

Do you save for your for you retirement? for your healthcare? Where do you place your savings, what’s the interest rate? You have 2 options, ENJOY NOW, SUFFER LATER or SUFFER NOW, ENJOY LATER. Well, if you found this subject very interesting,you can learn it more in a very practical, very comprehensive approach. Visit the following website now www.jaygalang.i.ph , www.img-corp.com or you may contact me personally …. 0919-3279960 , 0916-6961434, 0932-3288682, 02-5681601 or email me jay.galang@img-wealthacademy.com , jaygalang@gmail.com

Posted by jaygalang at 8:39 am | permalink | Add comment

DON’T JUST WORK FOR MONEY … LEARN HOW MONEY WORKS!

November 10, 2009

  
 
 
YOU SPEND MOST OF YOUR TIME AT WORK

YOU WORK VERY HARD TO MAKE YOUR MONEY


DON’T YOU THINK YOU SHOULD MAKE YOUR MONEY WORK

HARDER THAN YOU DO


” The poor and the middle class work hard for their money..

the rich have their money work for them” — Robert Kiyosaki


An excellent way to gift yourself the tools needed to make your money work harder than you

& smile your way to financial freedom


What is getting out of the rat race ?


We get up every morning and are out at work- Reason: We need money to meet our expenses.


What if there was enough money to meet all our expenses ? We are then out of the rat race and on to fast track !!!

Opportunities knock at our door every single moment. But due to our routine, we tend to ignore these opportunities. Learning to open the door to opportunities despite our routine will help us to get out of the rat race and on to fast track.


Money does not make you rich, Financial Literacy does.

Posted by jaygalang at 8:05 am | permalink | Add comment

PLANNING YOUR FINANCIAL FUTURE

November 8, 2009

by: Rex Mendoza
http://www.rampver.com/financial_planning.php

Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement. Most people live their life taking each day at a time and are not conscious of having their financial lives mapped out. This perspective can bring future regret, disappointment, and frustration as they discover that their dreams can not be realized and they do not have enough time to put things on track. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.

The Benefits of Financial Planning

Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track. Having a plan helps you avoid making wrong financial decisions. With a plan, your choice of investments, lifestyle, and accumulation program will be matched to your goals, risk appetite, and time horizon.

Common Mistakes People Make When Approaching Financial Planning

Not setting measurable financial goals.
Confusing financial planning with investing.
Making financial decisions without understanding its effect on other financial issues.
Thinking that financial planning is only for the rich.
Assuming that financial planning is required only in advanced ages.
Thinking that financial planning is the same as retirement planning.
Waiting until a money crisis happens before crafting a financial plan.
Expecting unrealistic returns on investments.
Thinking that using a financial planner means losing control.
Believing that financial planning is primarily tax planning.
Neglecting to re-evaluate financial plans periodically.

How To Make Financial Planning Work For You

You are the focus of the financial planning process. As such, the results you get from crafting your own plan or through working with a financial planner are your primary responsibility. To achieve the best results from your financial plan, you will need to be prepared to avoid some of the common mistakes shown above by considering the following advice:

Set measurable financial goals. Set specific targets of what you want to achieve and when you want to achieve results. For example, instead of saying you want to be “comfortable” when you retire or that you want your children to attend “good” schools, you need to quantify what “comfortable” and “good” mean so that you’ll know when you’ve reached your desired milestones. It always pays to “put numbers” on your goals.

Understand the effect of each financial decision. Each financial decision you make can affect several other areas of your life. For example, an investment decision may have tax consequences that are harmful to your estate plans. Or a decision about your child’s education may affect when and how you meet your retirement goals. Purchasing a luxury car can set you back on another target. Remember that all of your financial decisions are interrelated.

Re-evaluate your financial situation periodically. Financial planning is a dynamic process. Your financial goals may change over the years due to changes in your lifestyle or circumstances, such as an inheritance, marriage, birth, house purchase or change of job status. Revisit and revise your financial plan as time goes by to reflect these changes so that you stay on track with your long-term goals. Remember that plans do not mean a thing unless you monitor your progress on a constant basis.
Start planning as soon as you can. Don’t delay your financial planning. People who save or invest small amounts of money early, and often, tend to do better than those who wait until later in life. Similarly, by developing good financial planning habits such as saving, budgeting, investing and regularly reviewing your finances early in life, you will be better prepared to meet life changes and handle emergencies.
Be realistic in your expectations. Financial planning is a common sense approach to managing your finances to reach your life goals. It cannot change your situation overnight; it is a lifelong process. Remember that events beyond your control such as inflation or changes in the stock market or interest rates will affect your financial planning results.

Realize that you are in charge. Whether some people are advising you on the process or you are at it on your own, it’s still your life. You should always take personal responsibility for results

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THE FOUR STAGES OF FINANCIAL LIFE: (By: Pinoymoneytalk.com)

November 7, 2009

 THE FOUR STAGES OF FINANCIAL LIFE:

(By: Pinoymoneytalk.com)

 

Just as a child’s needs change over time as he gets older, your needs change too. That includes financial goals and needs. But by anticipating your needs, you’ll be better prepared financially to meet them.

Most people go through the following four stages of financial life:

1. Young adulthood (20s)
2. Building a family (30s)
3. Middle age: your career peak (40s and 50s)

4. Retirement (60s and beyond)

 

 

Let’s look at each one.

 

Starting out: Your 20s

You’re done with college, and are now starting a career. Independence is a priority. There are so many things you want to do: have a high-paying job, buy a car, take graduate studies, meet your soul mate, see the world and do your share to save it too. You now have your own credit card that opens doors for you to buy the things you’ve long wanted.

Typically, people in their twenties have a lot of plans but do not have enough income to turn these into reality. Saving may not be a priority; enjoying life is. But the sooner twenty-somethings realize that having great money management skills will make life more enjoyable, the better.
 

Here’s some wise advice for people at this stage:

  1. Start saving. When you receive your pay, take out a certain amount (say, 10 percent), and deposit it in a savings account. Once you have accumulated enough savings, transfer the bulk of it in a higher-earning deposit account that allows emergency withdrawals. Let this money grow. Compound interest will make it grow substantially.
  2. Get health insurance. If your company does not offer health insurance as a benefit, make it a priority to get one. You’ll never know when accident or illness may strike.
  3. Get life insurance if you are married or with kids. Ensure that your dependents will not be financially burdened when the time comes for you to go.
  4. Think of going into investment options, such as bonds and mutual funds. Once you have established your emergency cash fund (see number 1 above) and have insurance, look for a mutual fund or other investment scheme that may help you grow your money even more. Stocks may be an option if you can lock your money for a minimum of five years.
  5. Go easy on debt. Take only enough debt (including credit card debt) that you can pay.

 

Getting established: Your 30s

 

You’ve progressed in your career and may be in a supervisory or management position. Or you may be running your own business. You may thus be earning more now, enabling you to lay the foundations for future wealth.
But this may also be the time you’re starting a family, so expenses may be high. You may have bought your first home. You may also be looking after your parents.

Here are a few tips for you:

  1. Plan how to pay for your children’s education. Look at options that will give you yields higher than a time deposit would. Examples would be an endowment policy, mutual fund, or bonds.
  2. If you haven’t taken out life insurance, do so. Make sure your dependents’ needs would be taken care of when you die.
  3. If you haven’t done so, get health insurance. This will help you meet medical expenses.
  4. Make sure you have enough cash in your emergency fund. A good amount would be equal to six months’ or a year’s income. Place this in a time deposit or money market fund for easy access.
  5. Save for retirement. The sooner you do so, the more it will grow. You can do this via a pension plan, insurance, mutual fund, stocks or bonds.

 

The investment peak: Your 40s and 50s

You’re at the top of your career and earning so much more. Your children may be in college or are already working. Retirement is just around the corner. Most likely, you’ll have more money you can allot to savings now.

Here are some tips:

1. Transform much of your income into investment capital.
2. Review your investment portfolio and determine if you need to allocate your funds into investments with higher earning potential. See if you’ll have enough to sustain your target lifestyle at retirement.

 

Reaping the rewards: Your 60s and beyond

Your children are well on their own. You may have finished paying for your home. You are at an age when you can retire, or still work if you want to. Your expenses may be lower, although health care expenses may now be higher.

If you have prepared well financially for this period, you may be able to live on the interest income from your investments or from your pension. If not, you may have to withdraw from your investment capital, which will make it smaller, thus giving you a lower yield.

Here are a few tips:

  1. Protect your capital. You’ll never know how long you will live—who knows, you might reach 100! If that’s the case, then aim to preserve your capital so you can live on the income from it. See if you can go for higher-yielding instruments such as bonds. There is a risk that comes with it, but it also comes with a potential for higher income.
  2. Make sure your will is in order.

 

In a nutshell

To recap:

1.

  1. When you’re young, your expenses are high and saving is difficult. But it’s essential to start saving early to ensure financial stability.
  2. Your ultimate goal should be to have enough financial capital to sustain your target lifestyle after retirement.
  3. Make plans to meet your medium-term goals in between starting out and retiring. This may include paying for your children’s education, or buying a home or car. But make sure that your eye is still on your ultimate goal: live a comfortable life in retirement.

- From the “Take Charge of Your Money” series published on http://business.inq7.net/money/. 
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