MONEY CREATIVE

Be wise using money. Here some important thing that should keep in mind :
1. Save at least 10% from your earning money.
2. Don’t put your money on too risky investment.
3. Never put your investment in one portfolio.
4. Be careful and caution if the returns promised too far exceed from the normal.
5. Make a long term investment.
6. Don’t panic if the market fall. Wait and see the trend.
7. The investment product must e registered with FSB (Financial Services Board).
8. Try to make some research before investing, using the expert when available.
Find the second opinion for comparison.
9. Don’t invest from debt money, only invest when have no debt, except
in some property which have incremental value in future.
10. Have some emergency free money anytime.
11. Try to arrange some retirement fund.
12. Don’t take the loan from credit cards. They charge the higher interest rate.
13. Use credit card wisely.
14. Take life insurance against disability and or death.
15. Get some advice from expertise in planning your future financial.


KEEP SMILING.

Investment’s Factor of Success

The philosophy in investing is creating a value for investing. What it’s mean ?

Invest in something for less than it’s actually worth, and get a gain from the difference.

It’s not easy, and sometimes can be wrong predicted.

Take a lesson from the proven succeed investor, there is some measurement can be used to determine the less valued company.

1. Profitability

Invest in company with a high and stable profitability. It’s included Sales Growth, Profit Margin, Return on Equity (ROE), Return on Investment (ROI).

2. Debt

See by what the company be financed by evaluating Debt to Equity Ratio. The higher ratio means the bigger company financed by debt. The company can be vulnerable when the interest rate is rising.

3. Business Risk

It’s important to understand the company’s businesses to calculated the risk. In some businesses, the product is changing very quickly and there is a risk if the company cannot change quickly to make some necessary adjustment. Try to avoid entering the business that we don’t understand well.

4. Company’s management team

The company is run by management team. So the quality of them is very important. Strong and good management team are rational and brave to admit to mistakes and take action to correct it. They also have “futuristic” idea not just following the competitor.

5. Product Branding

The company must have some unique content that different from it’s competitor to get competitive advantages. This can be lower cost, good brand name, unique content that protect by patent or something like that. So the company can maintain revenue’s growth in the long terms.

When making an investment, try to make long term investment, cause sometimes short term investment tends volatile and will not make money, but in the long run can profit. Try to take some time to wait and see the market, don’t panic or rush for markets rise or fall. Make sure until feel that it’s the time to buy or sell.

TRY YOUR BEST. GOOD LUCK.

Value of MONEY

Today a loaf of bread is sold for $ 5, Five year ago only $ 3, with the same size, brand, type and taste.

Does the seller take more profit with that rising price? Maybe yes, maybe no.

It’s product cost increases too. But in common, we know that the price is increasing from time to time. It’s mean our money begin “shrink” in value. With the same amount of money, we can’t get the same things in future.

Can we really “protect” our money’s value? The answer is NO. But we can make it “grow” as fast as or faster than price growing.

Let’s imagine our money is a seed and then we buried in a soil, after a while it’s growing

and produce some fruit. Just like that; Yes, Just Like That. BUT remember only from the good soil, the seed can grow become a good plant that produce the good fruit.

We should make the money growing. How? I-N-V-E-S-T-I-N-G.

Investing in the right place and the right time. There is various investment instrument that we can use, and there are some expert to do that for us.

We can invest in stocks, bonds, lands, time deposits, money market.

Here some important matters that we should have to think and know before investing :

1. Set the target and the budget or limit amount for investing.
2. Risk and Return. Every action has it’s risk. So the investment. High risk high return, Low risk low return, and No Risk No Investment.
3. Time / Period. Decide the time to start and end investing. Invest for long time period, because some investment in the short run usually have greater fluctuation than long run.
4. Invest in various type of instruments.
5. Don’t forget to consider the tax impact.

Have a nice day !!