The Secret to Financial Freedom

Ever since the colonial period, many individuals have always been after attaining complete freedom main a lot of sectors. However, if there is one sector whereby many have failed to achieve complete freedom it is in the financial sector. To start with, what is financial freedom? This question has brought about a lot of fuss with different people having different definitions. According to Wikipedia, “financial freedom is a well-planed lifestyle whereby one is not required to work in order to earn all enough income to cater for the expenses”. This is one of the major definitions used by most of the elites in the sector.

 

Another very common definition is one that describes financial freedom to be state whereby one’s passive and residual incomes are more than his or her expenses. This is the most reliable definition. It is more common among business affiliated authors such as Suze Orman who is the author of the book “9 Steps to financial freedom”. Passive income is one that one gets from investments while residual income is one that one earns on a monthly basis from doing particular job. All in all, both incomes attribute to the total amount of money one gets at the end of the month. 

 

No matter the amount of money you end up earning at the end of it all, all that matters is the manner in which you budget for it. The secret behind financial freedom is that you earn as much profit as possible such that you can sustain yourself in the time of need. This is where budgeting comes in. It should be done in such a way that the expenses are way below what you earn in the long run. On the other hand, do not budget for all the money to an extent that your pockets remain completely empty once you buy whatever it is you had planned for. Cut down the cost such that you will still remain with some reasonable amount that if saved properly can be invested. 

 

However, this can only be done under two conditions. Number one; get rid of all the bad debts. These are debts that just add up your cost. Deal with them first before anything else. Condition number two: get as many sources of income as possible. The best alternative source is by investing more and at the same time building a job on the side. A very good example is home based network marketing that has no time limits and in addition to this you are your own boss. 

 

Tips to Attain Financial Stability Sooner

It is said that we should try our level best to live life to the fullest. This is good thing but many misunderstand this statement. Many think that this simply means that we should enjoy life to the fullest by going on tours, clubbing and having all other kinds of fun. To me, this is nothing but being extravagant. Yes, we should have fun but we should also try and limit it. The best way to live to the fullest is by attaining financial freedom. This is because with financial freedom. You can have as much fun as you can without worrying of depleting your funds so long as you plan for it. In my words, “seek the first financial freedom and the rest shall be added unto you”.

 

All in all, there are specific tips that can help you attain this precious state of being financially free. Tip number one: change your mind set. Most of us are so used to being broke such that in all we do, we tend to incorporate that mentality. With such a mentality, there is nothing that one can achieve. Therefore, it is wise for one to think ahead and positively. As a matter of fact, you should think just like the rich do in order to become rich. Get rid of all the ‘poor values’ that might be hindering you from achieving financial freedom. Stop thinking like a small business owner or an employee; think like the employer or a large-scale business owner. This will give you motivation to work even harder towards achieving financial freedom.

 

On the other hand, build your own business. Your own business is a very important asset especially when it comes to achieving financial freedom. Statistics show that many are already aware of this fact with 4 out of every 5 people above the age of eighteen want to build their own business. The problem comes in when it comes to capital. Most of these individuals claim that they do not have enough capital but this is just but a mentality. 

 

Take for example network marketing as a job on the side. All that it requires is some little money to register with an affiliate company and a PC of which most of us already own one. This is the perfect business to open up and still maintain your normal job especially with its time factor and the fact that you are your own boss. Finally, be brave and have courage. 

 

What Should You Do with Your Money?

Financial freedom has been the talk of the day among many. All the frenzy surrounding this topic has been brought about by the mystic nature related with financial. Many claim that financial freedom is just but a myth started by the rich and wealthy. They claim that financial freedom cannot be achieved. The truth of the matter is that financial freedom can be achieved. In fact, it all depends on how you choose to use your money. It is not necessary for one to earn millions a month for them to attain financial freedom. All that matters is how you tend to manage your money.

 

Money cannot guarantee you of financial freedom but it plays a vital role in achieving it. Therefore, using only one stream of income is disadvantageous. In the current economic crisis, it is next to impossible for one to fully meet his or her financial needs with the usual 9 to 5 salary. In that case, it is wise for one to use this salary to save up for another job. There are several money-making opportunities that one may choose to earn some extra cash. The most common are the several online money-making outlets available on the internet. A good example is online network marketing. Use your money to set up another stream of income. In fact, set up multiple streams but do not overwork yourself.

 

Saving is also vital when it comes to financial freedom. We have all heard it repeatedly in various areas; from banks to business conferences. We should try our level best to save as much as possible for a better future. Do not use up all your money once you earn it. Set aside at least 10% of all your income from different sources for saving purposes. 

 

In addition to these, use your money to invest. This is the only way through which money can grow. Look for various investing areas. There are several ways of investing that are available today. One can use the stock market or simply open up various kinds of business. The bottom line is that you should try and help your money to grow; and investing is your only hope of doing this. All in all, all these tips are useless if you do not minimize on your expenses. It is the little things you do that will help you minimize your expenses such as cutting down your shopping list or minimizing you bills. 

 

When Do You Really Become Financially Free

The term ‘financial freedom’ has become a very popular term in the world today, and especially in the financial sector. Many use it when referring to financial success. However, they really do not know what the true meaning of financial freedom is. In the real sense, there are several definitions of financial freedom depending on the individual’s understanding of this term. There are those who think of financial freedom as a state where on is completely free from debt. On the other hand, others think that financial freedom simply means having a huge bank account from which you can comfortably live off. Personally, I do not concur with these definitions. Think of it this way; human beings are never satisfied with money. No amount of money is enough!

 

Several business elites have tried to come up with various definitions for financial freedom. All in all, one of the best definitions is that given by Robert Kiyosaki, the writer of “Rich Dad, Poor Dad”. In the book, he simply speaks about the general financial situation of an average dad. The definition given for financial freedom in the book is that it is a situation whereby an individual’s expenses are less than his or her passive income. 

 

This definition contradicts the popular ones that simply state that financial freedom is a state in which one tends to be rich enough, with a fat bank account able to sufficiently sustain him and his family. According to Robert’s definition, one does not necessarily have to be rich in order for him or her to be financial free. All that is required is for one to be organized financially and you will be on your way to financial freedom sooner than you expected. 

 

In order to understand Robert’s definition, it is necessary that you first understand the principle behind. There are two kinds of income stated in the definition; residual and passive. What is the difference between them? Passive income is one that one gets from various business sectors that he or she had taken part in without necessarily participating in the actual business. 

 

A good example of such an income is the money one receives as dividends from shares. As for the residual income, this is just but the normal type of income that one gets on a regular basis, normally on a monthly basis. Therefore, the amount of money one gets from the two should be more than his or her monthly expense in order to achieve financial stability. This can only happen if one has a well laid out budget accompanied with discipline. 

 

Earning High Interest – 3 Best Options for Earning High Interest On Investments

The trick behind earning high interest from your investments is mostly a matter of what risks you are prepared to take, as well as the amount of time you would be willing to wait on returns. 

 

Someone who has bigger short-term needs obviously needs to be prepared to take bigger risks than someone who has a longer time frame in which they can wait for returns.

 

You have a couple of options when you are thinking about what to do about funds which you want to keep liquid. 

 

Earning High Interest within a Short Timeframe 

 

There aren’t a lot of solutions for people who want a quick way to earn more with a short-term deposit. With cases where the money needs to be available on a day-to-day basis your only real options are savings accounts and higher yielding money markets. (Note: Online banks have much better rates) There is not a lot to do when you want to get money working at a higher return rate for you; this is due to the liquidity issue. (Meaning you want to have the money readily accessible) When you have a little bit of a longer investment timeframe there are many more options. 

Earning High Interest within a 2-3 Month Timeframe

 

When you get away from that first level type of account, where you have the funds immediately available, your earning potential becomes a lot higher. 

 

While the local bank probably doesn’t have much to offer, (things like term deposits) A lot of online banks have great deals with attractive yields.

 

So, it’s just a matter of choosing one of the many offers which are available online. Then you must be patient enough to wait, without touching your deposits during the investment time. Many people look to earn a lot of interest on short or just slightly longer deposits. If you have a longer investment timeframe, you have even riskier options. 

 

Earning High Interest within an Extended Timeframe

 

If you have an unspecified timeframe in which you can invest your money you will have more alternatives then with deposit accounts as well as CDs. You also have the option of a longer period CD (This locks up your funds for a longer, but the rates are higher). 

 

Then there are a few riskier options. With these you will have to wait quite a long time before seeing your earnings, but it is definitely worth it in the end. Investors who aren’t afraid of taking extra risks should learn to earn good interest along the lines of 5%, for this you will use a more advanced position of investment. This is called carry trade. 

 

How Do Automatic Trading Robots Work?

Automatic trading robots are commonly used in currency trading markets. One of the most popular ones right now is the FOREX Bullet Proof, which was created by the same group of workers who invented the Fap Turbo Robot, which in turn was widely thought of as being the best and most profitable robot to have been created in the last few years. 

 

Most of these robots are made to quite a high standard, and they are built sturdily so that they can handle the huge sums of foreign money of different currencies that they have to process. As a result, when you are choosing an automatic trading robot, you have to ensure that you are getting it from a reputable firm, a company that knows about the business. There are several low quality robots which may have disastrous results. It’s by far better to utilize a robot that was created by professionals who have been proven to create reliable and good quality products. 

 

Most automatic robots are able to trade with different currency pairs. They have their specialties. This particular robot, the FOREX Bullet Proof, is able to trade two primary FOREX pairs: These are the EUR/USD and the USD/JPY. These have an enormous trading amount. This robot doesn’t try to get extremely exaggerated results, but rather its main goal is getting a 5% return on a monthly return basis. Altogether yearly it changes into quite a lot. 

 

Trades are based on the time difference between the different worldwide inventory exchanges. The idea is that it will be capitalizing on various cash actions in different currencies which happen when the trading of stocks which are quoted as being in a certain currency are stopped. Then the ones quoted in the other FOREX will begin to be traded. 

 

The idea is as such, the shift of stocks from single foreign currencies into the ones of another are creating a short lasting raise in demand of a certain currency related to another. For example, when shares from the US which are quoted in USD stop trading and the Euro begins to be quoted, there might be a shift between the USD to the EURO. This cause the second to gain value. 

 

As their names suggest, these robots should be completely automatic. You can just turn on your computer and download it. Just turn it on and combine it with your dealers trading platform, then it will simply trade on its own without you having to even get involved. This could be a very easy way to do foreign exchange. It will also fit into your busy schedule.

 

The robot has a 60 day money back guarantee, during which time you can still decide to return it if you are unhappy with it. You can feel secure using this robot as it has been created by an excellent and famous group of workers.

 

Corporate Finance and Its Characteristics

A field of finance that deals with financial decisions which are done by business enterprises is known as corporate finance. It will also involve the tools and the analysis that is used to make these decisions. Corporate finance has many different aspects and goals. One of the main goals of this type of finance is to make sure that the corporate value is maximized and at the same time make sure the financial risks of the same firm are well managed. The investment decision is one of the determinants of success and failure of successful corporate finance. Investment decision is mainly done using project valuation, flexibility valuation and quantifying uncertainty. 

 

Project valuation will depend with a firm’s method of valuation. In most cases the system that is used is a DCF (Discounted Cash Flow) valuation method. The area that has the highest value is selected as long as the value has been evaluated by the resulting NPV (Net Present Value). To achieve such a situation, one will need to estimate the timing and size of any cash flows that are incremental. The increments should be a result of the project and no other outside factors. Cash flows are further discounted to get the present value after which they are summed. The net that is gotten from the initial investment outlay is termed as the NPV. There are many factors that will affect the NPV and they will vary with the project and other factors. 

 

Valuing flexibility is the next step in corporate finance. When you are valuing flexibility, there are some things that should be kept into consideration. Flexibility in a project is the ability of the project changing how it has been planned. In the financial world, this change can be an increase or decrease of the required income. This means that flexibility can have a negative or positive impact. To prevent a negative impact on flexibility, valuation of the same should be done. Valuation is done by looking at any variables and probability of the requirements. More complex method of analyzing flexibility is through the use of DTA (Data Tree Analysis) and ROA (Real Option Analysis). 

 

The last part of corporate finance is quantifying uncertainty. Uncertainty is the risk that is gotten by unknowns in a project. This can be through unpredictable circumstances. There are several formulas which are used to quantify uncertainty. The project will determine the type of formula which will be used. 

What Does Public Finance Mean to You?

A field of economics that is mainly used to pay for government related activities is mainly referred to as public finance. Public finance also constitutes the administration of these activities. The income gotten from public finance is mainly through the use of three different sources. These sources are taxes, debts and seignior age. These three sources of income will make sure that the government has a sufficient source of income. 

 

The first type of income generation is through taxes. Taxes are the highest contributor to the income generated by the government. It is not only significant due to the importance of all the revenue that has been collected, but also due to the problems that are experienced due to high tax levied. The main reason taxes are levied is to create revenue for a government. This is also the reason why in most countries the levels of tax are quite high. The level of tax is high in order for a government to fulfill its obligations. Though it is high, taxation is also used to make sure that there is some level of equality through re-distribution of wealth. Apart from this, taxation is used to control inflation. If taxation was low, the money that should have gone into tax would have been sent to consumption and would lead to inflation. Taxes are levied through different platforms and they vary from one country to another. 

 

Debt is another source of government revenue. This sounds to be quite farfetched but it is true. Government debt is also known as national or public debt. This is mainly any amount of money that is owed by one or any of the government levels. In some governments, there is the issuance of revenue bonds which are mainly based on the government’s taxing authority. Since the government represents the people of a country, a government debt will be seen as a public debt. This means that the government debt can either be internal or external. Internal debt is owed to lenders of the said country while external debt is owed to lenders who are foreign. 

 

Seignior age is the final main source of government income. This is a term that is used to define the revenue that is gotten by the government from issuing currency. Seignior age comes about as a difference between the face value of the money and the costs of producing, distributing and removing the note or coin from circulation. This type of revenue is mostly significant in countries that do not have an advanced industrial platform. 

4 Smart Tips to Using Credit Cards

Plastic money, which comes in form of credit cards, is really loved and highly used. There is nothing you cannot purchase with one swipe of the credit card. Credit companies make a multi-billion dollars kill every year on credit card users. This kill is made when they deduct their charges and when they fine you for late payments, transfers and over-limits. However, a credit card can be a good servant if used wisely but a bad master when used unwisely. As a matter of fact, you can even get bonuses when you learn how to wisely use your plastic. The following tips will be of great help to you.

• There are many credit card companies to choose from; choose the best. The best credit card you can have is one that has good rates of interest and an open bonus system. Some credit cards usually have rewards for you, if you use it wisely. The rewards range from cash back to college fees for your kids. You can have a look at the customer reviews on a credit card before choosing it to be your plastic. Such reviews will give you the best image of the credit card, and the experiences of other customers will help you make the right choice.

• Avoid carrying balances on your plastic. Credit card companies reward those who have a clean record when it comes to having balances in their credit cards. Paying off the balances usually relieves you of the burden of paying huge amounts of interest. Make it your aim to pay off any balance in your credit card ever month.

•  Learn how to communicate with your credit card company. When you have a balance that has been forwarded to the next month, pick up your phone and talk to your credit card company and see whether it is possible for the interest rate to be cut down. However, you can only benefit from such a step if you have previously kept a clean record of clearing balances with the company.

• Avoid cash advances like plague. As a matter of fact, use cash advances only when you are faced with an emergency and there is no other way out. It is very easy to ask for a cash advance, because when you get it you feel as if you have been given free money. However, such advances usually attract heavy interests and charges when you delay payment. 

Use these smart tips when you use credit cards and then you will not feel them to be the monster that they are usually touted to be.