The Uglycow Finance » income

Steps for Creating Wealth

admin — Sun, 20 Nov 2011 02:06:01 +0000

Following the 5 steps to create Wealth in your life:

1. Accept 100% responsibility for our situation

One of the most common problems in people, is that they believe that the responsibility for your financial situation for others. Whether the government, employer, financial institution, their families … and so on.

If you really want to achieve wealth, accepts full responsibility for your life, and commit to take steps to improve it.

2. Develop a Wealth Mentality

Perhaps this is one of the main goals of this blog. The reprogramming your mind completely, so you begin to conceive of the concepts that will serve to create wealth, and discard what does not.

The problem however, is that people do not take seriously the creation of a culture of wealth. Just think to change your thinking about money will result.

3. Defer Bonuses

On the other hand, people who are in great abundance in their lives, usually know for certain what they invest and spend their money. They know how much goes in and going out each month and have great control.

And interestingly, those who have money problems or even care about these issues. They are very busy with things “more important” to think about these details. And certainly that is what constitutes a financial abyss for them.

Deferring gratification is not to reward all the time without reason, buying things for pleasure or personal satisfaction, but have enough self-control to do so moderately only when truly deserve it.

4. Designing a Strategy for Creating Wealth
This fourth step is another very important in principle must develop a strategy that allows you to achieve abundance. How to get to your destination if you do not know which path to take anyway?.

If you do not know how to create wealth, and if you have a clear strategy based on your skills, strengths, passions, geography, society around you … etc, hardly you will get rich.

5. Maximize your ability to produce

The key is productivity. When you take into account the above steps and you’re on your way to wealth creation, how to make you rich, you will maximize your income (because your expenses were minimized in step 3.).

Maximize your income will depend specifically on your business, your item and yourself, but find ways to produce more, or to generate more value is ultimately what will make you rich and will give you more abundantly.

In many cases is to produce more, or find other alternative distribution channels. Either way, the application of the latter and all the steps above will take you to financial freedom.

Certainly if you take action to achieve your goals. Make it your goal, then, to reach financial freedom. Do not leave it for later … may be too late.

Does money can buy happiness?

admin — Thu, 15 Sep 2011 02:37:17 +0000

In our country, the period for repayment of the mortgage is variable, although the average is about 30 years. There are also deals on the market with maturities that extend up to 40 or 50 years, though these are rare.

The applicant’s age plays a fundamental role in determining the period for refunding the mortgage, as the cap is tied to your age at the end of the mortgage. In general, banks now determine the maximum age 75 years for repayment of the mortgage. Thus, if a person has 30 years to apply for a mortgage could get within 40 or even 45 years, but not an applicant for 45 years, which would be granted a maximum of a 30-year mortgage.RWT8NM2WVUR6

Is better a short term mortgage or long?
There are ideal repayment terms for each profile, but couldn’t be said to exist within ideal. This largely depends on the applicant’s income, age and conditions of the mortgage. Here are some tips that will be useful to choose the best repayment term of your mortgage:

1. Mortgage payment: If you choose a longer repayment period will pay a lower premium for longer, which means that you must pay more interest and, therefore, pay more for the mortgage. Conversely, if you can afford a higher fee you pay less interest, reducing the total cost of the mortgage. It should be borne in mind that banks calculate the share of the mortgage represents more than 35% of your income (including your other debts), so an extension of the repayment period will always reduce that percentage and broaden your chances of getting a mortgage. If you calculate the mortgage payment, there are very practical and simple calculators to help you adjust the fee to the repayment period.

2. Tax benefits: The mortgage allows you to get tax deductions, but only on a maximum annual amount, currently € 9,015.18. If the fee you pay for your mortgage is lower than this limit, you might want to increase what you pay now for tax benefits in income tax.

3. Fees: Some mortgages may allow you to perform capital cancellations, whether partial or no fees. If the bank offers this possibility, you may decide to opt for a longer repayment period to reduce the amount of the fee. These flexible mortgages allow you to reduce the outstanding principal on time, allowing you to pay a lower monthly payment or reduce the repayment period.

3 ways to teach kids about money

admin — Wed, 24 Aug 2011 05:49:48 +0000

A solid financial education has two aspects: how to manage resources wisely and be able to multiply. Do your children well prepared to handle their own money? Do you have an entrepreneurial spirit that drives them to seek and develop business opportunities that come around? The truth is that if you do not teach them, nobody will! Discover three powerful ways to educate their kids about money that they delivered a solid financial education for their future.

The answer is easy: just learn along with them! The best way to learn, both for your children and yourself is to use everyday life experiences as “study materials.”

Here are three ways to share power to deliver sound financial education to their children, you can implement in your home today.

1. Help them gain a wise mentality towards money
Talk about money with their children. Find out what they think about money.

In many homes the money is a taboo subject, because it is considered as something vile and evil, a topic that should not ever speak. But while parents spend at least 8 hours a day trying to get it. It is inconsistent to be clear with your children if you have never talked about money with them.

The Bible clearly says that the LOVE of money is the root of all evil. (1. Timothy 6:10)
Money itself is neither good nor bad, but has the power to reflect what is housed in the heart of the person who owns it. Therefore, start with a good values education, to shelter save their children from greed.
Teach them to be generous and the money, besides being essential to meet their needs is a tool that can be used for good.

2. Help them to interact wisely with material goods
In a world like today, where we are bombarded with messages that encourage us to consume, it is very easy to fall into overspending. The famous consumer debt can be considered as “leprosy of modern society,” and that eats resources and destroys the financial situation of families.

Teach your children to live below their income level, without falling into a scarcity mentality that says: “The money never reaches me!

It’s as easy as explaining that, in 9 out coins, one has to stay inside. Explain to your children that money work for them and have many children if invested wisely. Talk about the tremendous power of compound interest and how they can generate significant revenue if they start to invest their money rather than spend it all.

3. Help them understand that the power to generate wealth in their hands

They must understand that there are more options for getting money to ask the parents or later find a job. While a good job is an excellent choice, it is important to know that there are alternatives.

The best way is to encourage them to seek ways to make money themselves.

All children are enterprising innate. Be amazed at the creativity of children when designing a business, however small it is! In a very simple way, explain how to calculate costs and revenue of your business, so they can learn basic accounting.

By introducing these three important aspects of financial education and entrepreneurship, they will be giving a preparation not receive in schools and provide them with the skills and tools needed to succeed in the area of personal finance as an adult.

Internet business

admin — Sun, 14 Aug 2011 03:47:36 +0000

Internet: A market and a means for business

What is the Internet business? What is a online business? This is the question asked by thousands of entrepreneurs around the world.

Internet emerged as a vast source of cold lemonade in the desert, but most investors were spurted ambition, greed and easy wealth speculative stock market led to the intense cleansing living today.

Confusion between business and media

There are many reasons for the debacle of so-called dot-com, but one of the most important is the question “What is the Internet business?” is as irrelevant as the question “What business is selling burgers on TV?”.

The multinational fast food chains usually have billionaires budgets TV advertising, to offer their products and promotions, but when one gets hungry he is to go to the real selling point. It is not enough digital photo of the burger.

Sell pizza through a mass medium is a good deal only if you get people to go to the store or order products by phone, and at the end of the day the cost of the pizza (inlcuding advertising) are lower than those income.

The business is a combination of factors

In the case of the pizza, the business depends on its ability to orchestrate the production efficiency of pizza, pizza quality, customer service and ability to call customers, including the ability to handle different media to advertise the business.

Additionally, the success of the pizza has to do with the conditions and characteristics of your market: number of competitors, intensity of competition, pricing, access, demand, and so on.

In this sense, any media can help sell more pizzas, as any sales process involves some degree of publicity. But the medium is not the business, unless you own the media or servicing.

The business is the sum and the integration of a number of aspects, where the Internet as a channel, may have a function that will always be determined by the nature and characteristics of the business itself.

Misconceptions about the virtuality

Another of the illusions they have with “Internet business” is a dot com is easier to manage or maintain, because it is an organization or structure “virtual”, where technology solves many processes and not requires both physical effort and enterprise disparagingly called “traditional.”

But the reality proved very different. In an economy marked by services, there are critical issues that are not easy to provide a virtual and a clear example is the customer. Even in many cases is worth more personalized attention, which you can give over the Internet.

Through an email or a web page can better serve a customer, only if you have the skills to replace with words on the body messages that are exchanged face-to-face.

Semantic subtleties of business “in” and “with” Internet

For a telephone company that provides Internet connection services may be clearer picture of their business opportunities “in” the network. But a bank that online services OFEC probably make a fortune in the savings they can obtain care for their hundreds of thousands of customers “with” their website.

You can also say that a supermarket (or any other trade) do business “with” Internet as it uses its website as a sales channel, but also does business “in” Internet if you use your website and email to advertise your business.

In other words, the Internet is a market “in” you can do business as it is a space where potential transit customers. But the Internet is also a means communication “with” that can be used as a business tool.

In both cases, a successful Internet business depends on accurate and relevant to approximate a given market, and the skills to use Internet as a marketing and advertising.

Who understands the financial advisors?

admin — Sat, 18 Jun 2011 04:56:01 +0000

Forgive me financial advisers, but their tips are often unintelligible. Moreover, I’m not the only one who thinks so: 50% of investors do not fully understand acknowledge the advice of his counsel, and that nearly 90% of professionals considered to have done his job and left her satisfied customers according to a etude which echoes the Gestiohna brokerage.

Another report, prepared by the Centre Inverco gives us more data and suggests that the more dynamic and younger the investor, the more knowledge you have of financial products. The trouble is that the profile of the average saving is, rather, that of a man older than 50 years and a conservative in their investments.

To facilitate understanding between client and consultant, Gestiohna includes “10 key concepts that every investor should know in times of crisis” and which I reproduce verbatim:

REDUCTION OF BETA is the risk indicator reflecting the sensitivity of a stock to market fluctuations. With a beta less than one, the action will tend to collect only part of the market movements, making it more stable and talked of a “defensive value.”

Problem subprime mortgage credit risk borrowers (people with no income, no job, no assets) in the U.S. residential market, which highlighted the shortcomings of a system based on subprime mortgages and was one of the triggers for world economic crisis.

DIVERSIFICATION OF THE INVESTMENT PORTFOLIO selection of securities, securities, sectors or countries without a strong relationship with each other to reduce the risk incurred by the investor.

INVESTMENT FUNDS a Gestiohna According to experts, “in the current economic environment is the most appropriate product for individual investors because they allow you to build a portfolio to maximize profitability without incurring high risks.”

Hedge funds are hedge fund that were once identified as one of the main culprits of the crisis by their speculative positions, and that during the past year, have staged a historic way of capital has led to the demise of much of this industry. However, it seems that once again regain its strength.

INVESTOR PROFILE a saving features that determine their investments based on their expectations and their ability to take the risk. The Spanish investor profile is conservative, older than 50 years, which relies more on banks than other sources when choosing a product in which to invest, according to a recent study presented by the Centre Inverco.

Bailout injection of public money being carried out by governments of different countries for the revival of their national economies.

RATING AAA (Triple A) A Maximum credit quality rating of a country’s public debt issued by agencies like Moody’s. Spain recently became the first state to AAA in face possible loss of that designation. Spain currently holds the top rating but, according to Moody’s latest report, the fiscal adjustment will be “long and painful.”

THRESHOLD 10,000 points psychological level of Stock Exchange listing, in case of sales or exceeded, triggers strong contrasting moods. During those days can rein restlessness, or euphoria among investors.

Deviation parameter that measures the price risk of financial assets in terms of fluctuations or variations in price over a period of time.