The Uglycow Finance » saving

The Financial success for college student

admin — Sat, 31 Jul 2010 07:10:35 +0000

The Financial success can come in various forms. The term refers not only to people who are financially independent or who have made thousands of dollars in the stock market. To be financially successful one must, at the time he graduated from the University, being in a debt-free status.

While it is essential to have a part time job to maintain personal needs, you should know about “hidden costs” that come uninvited. His adult life is beginning, and is beginning to see how they were paid for their work. It is a time of life when they begin to engage with additional responsibilities. The importance of communication and availability makes it necessary to have a cell phone. The apparent need to move freely involves the management of insurance costs, gasoline and other expenses associated with transportation. Without doubt, acquire a job does not always mean that the money will come, it also creates an output source of money. Must be able to be prepared to meet their needs in order to call a person financially successful.

Credit Cards: Friend or Foe? When invoices have arrived at their date of payment and checks are leaving to come, many students feel the pressure to use credit cards as a way to get a short-term credit. This method will be successful if you pay immediately, however, many students see credit cards as a way to make life at the University luxurious and comfortable.

Now it can be difficult for some students end up owing money because all these credit card companies. This system was designed so that if you do not have good credit, cannot do many things. It can be very useful if you use your credit card wisely. Use credit card for things you know you know that you can give back. For example, use it to buy gasoline to take him to work when you decide to use their credit cards to buy all the clothes you can, and accept credit card payment for after you graduate, keep it for a while.

Credit cards can make you happy or miserable, depending on how they are once you graduate will be easier to get a loan for a new car or a security deposit for that new apartment. For students who work there is always a possibility of saving their money, if only a little better than a debt. Try a web search for banks that can give you high interest on their savings accounts. The proliferation of online savings accounts has increased interest and shares with them the potential to earn more with their savings.

To be successful, you should have no financial debts, and from the point of view of a student, means not having debt after graduation. The “bankruptcy college student” has the ability to be financially successful, if you can use savings and credit cards wisely.

How to save your money?

admin — Fri, 26 Feb 2010 13:31:50 +0000

There are many choices that you can use as a place to save. One of the most popular savings for people is a savings in the bank.

The surplus, funds in the savings could be taken whenever you want. Its weakness, at this time, savings in the bank generally gives only a small interest.

In addition, you may also save money by buying gold. If you’re saving for USD 2000 per month, you may be able to buy a quantity of gold in accordance with the value of your money saving. At this time, many gold coins are available that can be purchased with the amount of a gram of it.

As an alternative, you can also deposit money into investments like mutual funds. Mutual Fund is a form of investment where saving your money will managed by a team to invest in various investment products. To be able to invest in mutual funds, can be started with minimum funding requirement of USD 100.

So, there are several options if you want to save. Read one of the tricks.

Set aside your income for savings

admin — Mon, 22 Feb 2010 13:56:00 +0000

“I wanted to save money, but it seems I’m running out of money are continues. In addition, the children also have to buy shoes, and I also need to buy this or that …….”

The words mentioned above may be familiar, or perhaps your own experience: You want to be able to save money, but in practice, it’s hard to do. Do you belong to those who like that? You always run out of money at the end of the month so it cannot save?

Do not get discouraged. All the people are almost certainly experienced it. Saving, or investing on a regular basis, often done for various purposes. By taking your money on a regular basis, then the money collected can be very useful.

For example, someone who has revenue of USD 1000 per month, after a year only have USD 200 in the account. When asked why the amount of the account balance was only USD 200 after working for a year, he said that incomes often been used in a month so that he could not save. In fact, if he wanted to save as much as USD 100 per month, then at the end of the year he will have a balance amount of USD 1200, plus interest!

Saving first, spend the rest
I will give a way for you. If you’ve been always shop first and had no time to save money, why are you not reversing the process? For example, when you get a paycheck on the 25th, had set aside some money to save, then the rest is spent. If you do it regularly, then after a year, you already will have a saving in large quantities.

Well, maybe just the money you spend can be reduced. But, that’s the consequences: You need to have some funds in reserve for the future!

For example, your income is USD 1000 per month. At first, you usually spend USD 1000 is way down. Now, with your saving USD 100 per month in advance, then the total expenses you just stay USD 900 in a given month. If you felt it was not enough, then you must do one of the three options below:

1. Increase your income
The example above, the income USD 1000 increased to USD 1.100. You still save money by USD 100, and then you are no longer spending USD 900, but returned to USD 1000.

2. Hitting Your Expenses
The example above, you are willing to push your expenditure was USD 1000 to $ 900.

3. Doing both
With increasing incomes and living costs. The example above, you can increase your income to $ 1.100, and pressing your spending to $ 900 thousand. Thus, you actually have a greater difference for saving.

Everything belongs to you. Most important, familiarize yourself to save money. If you are having trouble saving for that reason always run out, then you can save money in advance so you get the money. Remember always: You need a reserve fund for periods of unpredictable future.

Planning the Budget

admin — Thu, 04 Feb 2010 17:21:06 +0000

Creating a budget is not difficult to learn. One of them is to make a income list and expenditure list. Then keep the expenditure does not exceed the income, as the saying goes big stake than the pole. By creating a budget will make your life more enjoyable and rewarding. Anything you can enter in the budget?

* Revenue
The first you need to make a list of income. Generally that will go into this list are salary, interest from savings accounts, deposit interest, and so on. Take note that only the regular income you’ll get each month.

Avoid entering uncertain income or non-routine within your budget. Some income must not include overtime, bonuses, prizes, commissions, even though THR. The financial consultant has warned that a plan based on income sources of uncertainty can make your debt. However, if you get any time uncertain income, such as overtime pay or bonuses, then you can choose to use such money to treat yourself and your family, travel, or give donations.

* Expenditures
Compile a list of expenses is not as easy as making a list of income. You might try taking down every expenditure to see the financial waste that occurs. However, you should be able to make a list of monthly expenses if you know your shopping habits. Some important things that must exist in the list of expenses such as basic needs. This includes food, shelter, and clothing.

Do not forget to include periodic routine expenditures such as spending per three months, as of mid-annual, annual and other periodic expenses. For example, home insurance payments, vehicle taxes, or income tax. However, to put it in the monthly list, you need to divide that amount by the number of months suitable.

Then for each expense, you make weighting or priority scale. If you find your expenses amount greater than or equal to the income, then you can eliminate or delay some expenses that you have registered. It would be very helpful if you divide every expenditure by weighting the absolute necessity, the needs of the doubt, or just a luxury that want to have. This method will be helpful, if at any time your income decreases because of changes in circumstances. You can quickly get rid of some who still doubt the need or a luxury only.

* Savings
However, one of the most important in saving the expenditure list. Although many people may not think of saving as an expense, it is wise if you budget some of your monthly income for emergencies or special purpose. At least, you have to set aside 5 percent of your income has been taxed to save. If not, you have to make the steps that hard. Get rid of credit utilization, set back your lifestyle, and consider your basic needs. Strive to enter savings in your monthly budget.

Your success in carrying out your budget largely depends on how realistic the budget. The idea is that the list reflects your personality and choices but still realistic. If you create a budget is too small and is unable to meet the need of households within one month, then certainly all that you’ve set up will not run.

Calculate the Growth of Investment Funds (2)

admin — Sun, 27 Dec 2009 18:44:30 +0000

In past articles we have discussed about simple interest, now I will continue with a discussion about investment with compound interest method.

Compound Interests
The concept of compounding interests is a concept in which the interest you earn will be added to your principal, so that the interest earned in the next year will be even greater. Just like a snowball rolling from the top of the hill of snow. Further down the larger.

Now we’re back to use the example of money $ 1 million earlier. When you open a deposit worth $ 1 million with a 12 percent interest per year, the balance of your investment at each end of the year are as follows:

At the end of the first year, your balance is:
$ 1.000.000 + ($ 1,000,000 x 12 percent) = $ 1.000.000 + $ 120.000 = $ 1,120,000

At the end of the second year, your balance becomes:
$ 1,120,000 + ($ 1,120,000 x 12 percent) = $ 1,120,000 + $ 134,400 = $ 1,254,400.

At the end of the third year, your balance becomes:
$ 1,254,400 + ($ 1,254,400 x 12 percent) = $ 1,254,400 + $ 150,528 = $ 1,404,928.

So on every year, until finally at the end of the 10 Years, your investment balances will be $ 3,105,848. Bigger than using the simple interest method (which only $ 2.200.000).

Monthly Compound Interests
What you see above this is the concept of interest rates, the interest paid every year (yearly compound interest). However, there are also the interest rates paid interest each month (monthly compound interest).

For example, we will use the same numbers with the example above, where you put money $ 1 million. Only difference, you do not open it in the form of deposit accounts, but the savings.

For simplicity, let’s say it also provides savings interest rate of 12 percent per annum, payable monthly. This means that, at each end of the month, the interest you earn is not 12 percent, but 12 percent divided by 12, or 1 percent. This is because there are 12 months a year.

Thus, the calculation of your investment balance at the end of the first month are:
$ 1.000.000 + ($ 1,000,000 x 1 per cent) = $ 1.000.000 + $ 10,000 = $ 1,010,000.

At the end of the second month, your balance becomes:
$ 1,010,000 + ($ 1,010,000 x 1 per cent) = $ 1,010,000 + $ 10,100 = $ 1,020,100

And so on every month until the end of the month your balance becomes 12:
$ 1,115,668 + ($ 1,115,668 x 1 per cent) = $ 1,115,668 + $ 11,157 = $ 1,126,825.

If this continues until the end of the 10 Years (or 120 months), your investment balance to $ 3,300,387. More than if you use the annual interest rate.

Daily Compound Interest
What about the interest rate system that paid a daily basis (daily compound interest)? Many banks offer advertising savings products that provide a daily interest like this. The concept is similar to the monthly interest rate. The difference is, the interest is not divided by 12, but 365 (according to the number of days per year), until the amount is 0:03 per cent per day.

Now we will calculate how many you get. Once again, we use the example as above.

Your balances at the end of the first day are:
$ 1.000.000 + ($ 1,000,000 x 0.03 percent) = $ 1.000.000 + $ 329 = $ 1,000,329.

And so on until after a year (or the end of the day to 365) your balance becomes:
$ $ 1,127,104 + ($ 1,127,104 x 0.03 percent) = $ 1,127,104 + $ 371 = $ 1,127,475.

If continued until 10 years, then at the end of the day into 3650, your balance will be
$ 3,319,462. More than if you use the bank interest rate monthly.

From the calculations above we can see the difference between the method simple interest with compound interest investments. Now depending on your choice of which method is most suitable for your investment.