Lately, it is a little bit confusing for us to make an investment. Whenever economic still in unstable situation, and then stock market still can't predict clearly. For a few person like me, who didn't want to take a high risk in investment, I'd rather to put it in gold as investment.

We can find many varieties investment in gold. Investment in gold can be done directly through bullion or coin ownership, or indirectly through gold exchange-traded funds, certificates, accounts, spread betting, derivatives or shares. Just take any of your preference in investment on gold

Investors generally buy gold as a hedge or safe haven against any economic, political, social or currency-based crises. These crises include investment market declines, currency failure, inflation, war and social unrest. Investors also buy gold during times of a bull market in an attempt to gain financially. It doesn't mean gold price will always stable, it is driven by supply and demand too.

But many of investor believe that gold prices will continue to rise and thus that they can gain financially, and/or as a hedge or a perceived safe haven against any economic, political, social or currency-based crises. Of course prices can fall as well as rise, so investors must make a best guess on what the future holds. So just take your choices

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The spreading global recession has caused many investors to stay away from the markets. Many investor feel worry about volatile markets, in this situation , convertible bonds could be a viable instrument.

Convertible bons re a hybrid security with debt and equity-like feature. Like a normal bonds, convertible bonds pays coupon to their holder and there is option for holder to convert the debt into equity of the issuing corporation.

Why invest in convertible bonds
Investor can participate on appreciation of the company stock's price. If the share rise above the predetermined price, investor can convert the bond into share to take profits. If the shares drop below the conversion price, investor can wait until mature and pay out the par value. Meanwhile the investors continue to receive regular income from coupon payments. As such, convertible bonds can be considered a defensive way to invest in equities

Convertible bonds are less risky than stocks of the same companies because they ranked senior in company's capital structure. They have financial claims on the company's assets prior to stockholders if the company goes under. In addition, the interest is paid before any stock dividend. Convertible bond holders can at least get interest income even if the company's earning decline and can not afford to pay any dividend

on the other hand, they are regarded as riskier than conventional bonds since a decline in the share prices of the issuer can negatively affect their value. Their claims on assets during liquidation also come after conventional bond holders have gotten thier money back

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We are not life alone, there are spouse, kids or parents beside us, as your dependent. Do you have financial plan for them? When parent have retired and not have enough income to meet their need, as their kid we have a responsibility to help them. And it will be the same if you have kids, they need your full financial support for growing.

Just think, you can not always afford your dependent need. Such as when your parent have not a good condition, have critical illness and need hospitalized. Or maybe you have the worst scenario you died before your kids can support their own. So what you must do for them?

You need insurance coverage.
You need to prepare insurance plan which cover hospital bills, critical illness, total permanent disability, or death as well as income replacement plans which provide regular stream of income if the victim is unable to work.
they are must have in our financial plans' as they will ensure a sum of money is given out to meet the medical cost or simply to ensure the victim's dependent have some financial cushion to fall back on

if you have insurance, make sure that it will be sufficient for your dependent. Check out carefully your expense and inflation rate that you will face time to time. Make sure that the coverage you put in your insurance can match your objective now. Think about sum of money that your dependent will get, and suppose when it will be last. If your spouse not work anymore, you must think can she get a job with in her field right now since she have no updated experience. Must you prepare cost to train her so she can get a job.

Here is some insurance type that you can prepare for your dependent
1. Term life insurance - pays a lump sum on the death of the insured, or if the life insured is diagnosed with a terminal illness and has usually less than 12 months to live.
2. Income protection insurance - replaces your income if you are unable to work due to sickness or injury. It provides a monthly payment of usually up to 75% of your pre-tax income
3. Trauma insurance - pays you a lump sum on the diagnosis of a specified non-pre-existing illness or injury, generally including heart attack, stroke, cancer,
and paraplegia.
4. Total & permanent disablement insurance - pays a lump sum if you are totally incapacitated because of a sickness or injury and unable to work.

Typically, insurance policies which combined investments and insurance are not the best way to achieve our financial objectives, because aiming to achieve both investment return and insurance coverage with one product mean one of the two objective is not being fully met. Make sure you have the right insurance policies as you need,

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sorry its not about financial planning or anything...
I just sad when i know some one steal my post
This blog "Negeri Hijau" copy paste all content from my post about how to save your money

Its ok, we are in the same subject which can not use only our own thinking.. if you use only idea it is ok. But it is not fair if you copy paste all content. I did some work for posting, i got many reference idea, so i wont only copy paste one article and put it in my blog
Please for negeri hijau remove your posting, i will appreciate it... I will be ok if you only copy past a half of my content but don't do it in a full content.

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An emergency fund can best be described as a fund that you set up to take care of your day-to-day or living expenses at a time when your normal source of income is disrupted. Examples of such an emergency could be an illness that outlasts your paid sick leave or when you are unexpectedly retrenched.

Or maybe you have some emergency situation like accident, hit by unexpected disaster.
It will not provide you full solution but at least You can use your emergency fund to tide you over until you can get up and start again.

So how big emergency Fund that you need?
Some financial adviser said we need 3-6 months of our daily expense but some said we need 6-12 months. The amount is depend and what you need, for example if you are single will have different need than if you are married with one income, or married with two incomes. For people who have secure job will put a smaller amount of emergency fund rather than who have unsecure job. So we have no exact amount of emergency fund that we need.

So what we must do to put a good amount for our emergency fund
Some articles that I read suggest that $1000 can be a baby emergency fund. That will help you not use your credit card for paid some unexpected small emergency
such as small car repairs, small home repairs or small medical bill

Then what else that we must considered for emergency fund
* start to count your monthly expenses with go over your past 3 month of bill that will be include (mortgage payment, utilities, groceries, insurance, other expense,
property tax and discretionary expense and yearly expense)

* measure your needed with rule of thumb you should have 3-6 months of living expense. Just in case if you lost your job and it will be hard to
get a new job, and you are the only one who support your family you need to have 6 months until a year saving.

* If you want to find a place to put your emergency fund, consider an important key that you must be able to easily access your emergency fund should the need arise, without incurring expensive penalties. Some of the financial products you should look at to set up your emergency fund include bank investments, money market funds and, in certain circumstances, endowment policies

* revisit your emergency fund once a year and consider upping the amount if life events - like a new baby, new house or new salary - have increased your spending.
Resist the temptation to use the fund for anything other than unbudgeted necessary expenses

source :
CNN
(http://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/

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when you think that deposit saving can't afford your future need, its time to have passive income in your life. So you can get higher income with less work. This global crisis forced us to think about it, when fixed deposit can't give us high returned anymore, with worsening global crisis, both government and central bank have a decision to cut off rates

Here some investment that you can consider as investment alternatives, so you can diversify your portfolio and make the money work for them in this uncertainty economics
Money Market Funds
Are unit trust that invest into low-risk, short term debt instruments (they have low risk rating based on Fundsupermart.com's risk rating system). Money market funds invest in short-terms debt of bank, companies and government such as commercial paper, repurchase agreement or treasury bills. This kind of investment suitable for investor who want capital preservation and the ease of liquidity
what about the risk? like other funds, money market funds have risk of poor management, inflation and unguaranteed return


Bond funds
Bond funds are fixed income with lower risk than equity funds. Bonds are debt securities and bond funds invest into variety bonds such as government bond, investment-grade bonds, high yield bonds and emerging market bond. Bond funds usually issued regular dividend and because it invest in different bond issues and the coupon payment and maturities not fixed
Investor have to bear that not all bond fund have same risk and return. The higher return will have the higher risk.

Real estate Investment trust
Reit is a corporation or trust that uses the combined capital of many investor to purchase and manage real estate assets. Like shares REITs offer greater flexibility as they are traded in stock market. And the risk of REITs is volatility as REITs are traded publicly, their price will fluctuate according to market sentiment. Important for investor considering well managed building and good location

High dividend stock funds
as for those who unsure of investing in equities, but are attracted to dividends offered by the stocks

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Do you aware, we are now closer to the point when global debt is larger than global economy. Today so many loan payment made by us as an individual, company or even government are interest payment. The debt remain the same, or grows if we doesn't keep up with interest payment. Interest comes with a serious problem. When you have money, the money itself will work for you and gain wealth without do anything. But if you don't have money, you have loan, you even must work harder to pay it off with interest.

What about our world? When I was young I heard that government the one who control money supply and all the money circulation will backed up by something intangible such as gold or other valuable things. But now, all are change, most major economics control take by bankers. The bankers, lend money to government with interest, which is paid bank using taxpayer money. Just an illustration: Government need US$ 500 billion, government will write a treasury bond and Central Bank will give it the money. In most cases, Central bank doesn't actually print the money but make digital transaction in which government access to the newly created money. It doen't have to backed money up with gold.


The same goes with your spending on your credit card. You borrowing and paying X% interest for money that the bank doesn't have before you pay it to them as credit payment. For the bank it's more profitable if you can't pay back your loan on time. They will get gain, because your interest will perpetually growing.

Even iuf you have no debt, you pay for this outstanding interest by way of rising food and gasoline prices, higher taxes, poor quality of product and others. The money you have in pocket isn't money, but note of debt. Why? because they will less value in years next. That's you paying off the interest on the loans others took. So what you think... we are in the world of debt...

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As we have plan to our future, financial planning will be a crucial path for us who only have a limited income.We have so many goals in life such as buying a home or sent our kids in university. In order to achieve that goals in a certain time frame may saving will not enough. You need to invest.

Financial Planning is the launching pad for successfull investing. Yous should ensure that your money will give you the maximum possible return. A good financial plan keep you focussed to achieved your goal

What must you do?

1. Identifying your goals
Define your personal goal clearly. Such target more easy to identify when it related to your goal of life. For example, to send kids to university.
After that estimate how much money you will need to achieve them


2. Evaluating your financial status
Analyze your financial need, commitment and debt against your present income just to make sure you have a sufficient fund for your investment.

3. Setting a realistic target
After you know your financial status you can begin to set a sensible an realistic target between time frame that you have for attaining the desired result. Don't put too high target if you only have a short time frame.

4. Choose suitable investment strategies and products
If you put high target you can choose investment with high return income, but remember, high return will give you high risk too, moderate risk investment only give you moderate return too. Just considered a comfortable level of risk that you are prepare to take in case your investment fails.

5. Monitoring your financial Plan
Review your financial situation (which includes change in needs, commitment and investment) regularly. This is useful to make a necessary adjustment to your spending, saving and investment

Just in case you got a problem to make your own plan, you can ask for help from financial planner, who will give you advise some strategies to achieve your financial goals

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As we mention before why we need to saving, The next question how to start make a saving. Ok time to learn it;

STEP !. Figure out where you stand now
The question begin with where does your money come from? It could be from your income, your spouse income, or from other source.
Then where does your money go? (food, housing and utilities, personal care, clothing, education and recreation, medical care, pay loan, saving etc)
The next you must subtract your total income with your total expenditure.
What you get after that?
* If you came out with extra money, that's good for you. So you can put it someplace safe for your future need.
* But if you run out money or there were no saving there is work to be done. Check out all your expenditure, its time to cut down your living expense
Prioritize your expenses. After that, you are ready to figure out how to reduce expense


STEP 2 set goals for saving
It is easier to save when saving for a reason. It could be for retirement plan, education plan, house down payment saving or you just want to buy your household
or anything for your hobbies.
First time you must do, pay your debt first, never forget to pay until your debt overdue. Try to pay more than minimum, it could be up to 15% of your income.In this amount you can get out from your credit card debt quickly.
Then try to put aside 2 month living expense, just in case you lose your job, you still have enough saving to support your living expense until you get a new job

Beside that its wise to have emergency fund separate from your saving, remember once you use your emergency fund, you must replace it.

If all done now you can start to put your saving on your saving post. Make an exact amount, it will drive you to know what you must save
For example :
Retirement saving $ 72000
Education saving $ 30000
home down payment saving $ 20.000
etc
After that you can divide it as long as you want to saving
example
retirement saving $72000. You are at 25 now and will make a saving until 55
So you must saving $2400/year or $200/month

STEP 3 Choose a place to help your money grow
Let us look at the ways beginners to save. Go to the bank, choose the proper bank with a good reputation so you wont worry your money will lose
because the bank bankrupt. Make the different account from your daily account, account to receive your salary or for full fill your daily expenditure.
If you put in the same account you just can draw it, and don't remember its a saving for special purpose.Choose the saving form that suitable to your need

Happy saving!

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Sometimes we feel hard for saving our money, one reason because we only have a little income. But do you know, saving are most important in you life. Do you realize that we never know what will happen in our future? Sometimes we face emergency problem and we need much money for that. Its ok you can say, we have credit card we can use it for emergency. But think it again, if you use credit card u must pay the bank some interest expense, it means you will spend your money more and more. Plan to have your health care saving and emergency saving.

Another reason why you need to save money are your kids. You must prepare a big sum educational saving for their education. It is not a little amount, because inflation will go high when your kids really need your support for your education. Don't screw up your kids' future because you have no proper educational saving plan for their college.


Thinking to have an own house? Must be. You won't rent a house for your entire life isn't it? You need to have a home saving too for your down payment. Its a huge amount of money, especially if you want to put a bigger down payment so you will have a smaller amount in your installment. You must have a brief plan so have no difficulties to buy your dream house.

And most important for your consideration, you not life only for this time, when you still have a job and earn your money. You need to think about your retirement saving. But as we know, it is difficult to start, as we save for a car and then a house. And soon after, there will be educational expenses for kids. But you cannot afford to keep postponing your financial planning for retirement saving. In order to have sufficient income to cover all those non-working years, you cannot leave the plan to the very last moment

Start to save your money regularly and put it in the correct post to reach your goal, left your habit only to save occasionally when you have your income left.
from now own, put our money saving for the first place, and the rest of it we can spend it as our daily expenditure.

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A number of economists predict that the recession could last into 2010 and that unemployment will top 10%. If the crisis does not deepen into an even longer downturn, there will have to be early signs that the credit crisis is ending and that consumer and business confidence is coming back.

A recession, by one common, shorthand definition, is two consecutive quarters (or more) of declining gross domestic product, adjusted for inflation.
Here signs of recession end

1) Indexes of leading economics indicator
We can use one of devices The "S&P 500" generally quoted is a price return index; there are also total return and net total return versions of the index. These versions differ in how dividends are accounted for. The price return version does not account for dividends -- it only captures the changes in the prices of the index components. The total return version reflects the effects of dividend reinvestment
The first thing to watch for is the S&P 500 to trade flat for three months. While it continues to move down, investors are expecting two or three more quarters of bad earnings. If it spikes up too early, a rally probably cannot be sustained. A flat market at least indicates that investors are becoming more at ease with the economy.
Another devices is economic indicators produced by the Conference Board (conference-board.org). The index declined for a fourth straight month in January. "It doesn't suggest we are in a recession yet," says Ataman Ozyildirim, economist for the Conference Board. It does suggest increased risk of recession, Ozyildirim says. The leading indicators typically go positive about four months before a recession ends.


2) The sharp rise in unemployment is worrisome, but this often peaks near the end of an economic downturn. The last three months have been terrible, but service sector losses are not getting worse.

3) Housing starts. The downturn in housing has led the economic slowdown. A rise in housing starts would indicate a recovery in that sector, Wyss says — and, possibly, an economic recovery

4) Consumer spending. Consumer spending rose marginally in February. Especially for car sales, The rise is “consistent with comments we had heard around mid-January from various auto finance companies about double-digit sequential increases in loan application

4) China's GDP has to stop falling and hold at a level of 6% growth. If it drops well below that, it means that demand for inexpensive manufactured goods in the U.S., U.K., and E.U. has dried up completely. If China economic expansion holds, even at levels that are low compared to the last decade, there is a sign that economic activity in the West still has a pulse.

5)From a global perspective, the trading in bonds for developing countries that might default on their debt, nations such as Ireland and Ukraine, need to stop changing hands at distressed levels. If the bets on these nations being able to shoulder that own national financial obligations improve, it is a sign that global credit is becoming available, at least at the sovereign level, and that the IMF has been able to get commitments from the "richer" nations to provide credit to those that are in trouble

"We've passed the period where every indicator is plummeting, and that's good news," "We may not be exactly at the turning point, but we're getting pretty close to it."

Source : wikipedia, Chinapost, USA Today, Time, Wall Street Journal

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Since global economic become worse, bank and government play their role to save this condition by cut interest rate. It is a good time to refinance. Everyone must re-look their loan agreement as bank will not highlight this change to you. You can get lower interest rate now.

Steps that you can do to consider refinancing.
# Check with your bank
Approach you bank, if you have a good payment record you may able to get better rates. Ask your bank whether it is willing to repackage your loan, if your bank does not respond try to find another bank

# Check the interest rate
One reason you do refinancing is to get better interest rate. But you must aware wit term and condition behind, look out if there are hidden cost, when they offer lower interest rate


# Align for your purpose to get loan
Just for your consideration, you must try to find best choice type loan. Are you investor who only need shorter lock period or are you new worker who want to pay your loan in small amount in the beginner and will increase gradually later

# Find out a bank that have good customer service
You want to refinancing your loan, need many information and help. You need customer service friendly who will help you to choose a loan that suitable with your lifestyle.

# Moving or zero moving cost
Moving cost typically consist of the processing fee imposed when you apply for loan. Have a brief look, when a bank offer zero moving cost interest will be higher. Compare the loan and look at the long term interest saving.

# Fixed rate, floating rate or hybrid
Fixed rate suits for customer who are less tolerant of interest rate. It can helps them to plan their finance better.
But some people like to have floating rates, they can enjoy saving when rates goes down, and the rates will not go up so dramatically.
Hybrid type is combined from fixed and floating rates as example they will fixed for first 5 yr and then wwill be floating after that.

# Flexi loan
A flexi loan allow you pay more when you have excess fund.

Ok you can plan to refinance your loan right now. Good luck

• 2 comments »

A good project should accommodate team member trainings & holidays. But as we know during the corresponding project, the schedule was so tight, which did not give luxury for key team members to enjoy their company training. Especially during critical design-development-testing period.

Now, as the global crisis storms the globe, most companies are eyeing on their expenses and looking for cut cost opportunity to lengthen their survival ability. Unfortunately, most people see training budget as the easy one to be cut.

However, if you see from different angle, this crisis is just a short term effect of unfavorable situation. The world will surely find its way to bounce back. When, the time comes, the demand will surge rapidly and you will need cope with those wave to emerge stronger.


To achieve that you must have all required capital including your good human resources. Depleting your employee training or even laying-off your employees are probably the easiest saving in short term. But, when the time comes, you will loose the opportunity to catch the big fish.

Developing skills and building human assets are not overnight works. So, it is wiser if you use this demand slowdown to accumulate your knowledge capital within your organization or even do a review on your current strategy and how you should change it to be emerged as stronger entity in the upcoming economy recovery. This kind of time might not come twice in 10 years time, so use it wisely. Good luck....

• 2 comments »

The extremely complex global credit crisis made simple, explained perfectly well, and visualized beautifully... I think this is the best and the crystal clearest presentation on the current ongoing subprime financial disaster


The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo

• 2 comments »

Today oil price are between $35-$40 (Oil prices were on their way up to $145 a barrel, from as little as $50 in 2007). Investment adviser told about oil price "It’s not the time to try to call a bottom… but it is time to plan for it."

When the U.S. stock market bottoms, along with the economy it will be an L-shaped bottom. More reason to believe that we’re going to bottom eventually but not go far off that bottom once we do.

Economic side
"For one thing, just as demand is falling, supply may be about to get tighter, especially in energy commodities. Oil-producing countries have recently announced massive production cuts. "In three to five years' time, I would not be surprised to see oil prices at $100 to $150 a barrel, or even higher " (source : CNN)

New additional oil production from megaprojects and new EOR activity will be substantially weaker than had formerly been believed because so many projects have been put on hold due to lower prices. It will probably take 1 - 3 years of much healthier oil demand than is currently the case and much higher pricing to bring back those projects and there will be considerable time lags before they can come on stream. " One example of the deferral of new oil production projects is the Canadian oil sands( source : Jim Kingsdale

"There will be no rapid increase in oil production from Iraq or Nigeria. Political developments in both countries, including particularly the removal of American forces in Iraq by the end of 2011, offer little reason for optimism that above-ground conditions will improve markedly enough to result in a rapid escalation of oil production in either country despite substantial development interest"
In addition to the positive week in the US, China has put in motion plans to substantially increase their petroleum reserve over the coming years, adding a long term underlying bullish factor.

We suggest that people contain any oil purchases between $35 and $40—not above $40 at this point in time. Oil longer term is far more likely to be higher than that level than equities looking out the same timeframe. As bearish as oil looks right now in the demand destruction, we’re also having development destruction, which happens very fast. We have argued for almost four years that the peak oil theory, which many people latched onto during the last dramatic rise, couldn’t come into play without another recession and without what has been taking place in the oil market recently. As we get into the next economic recovery, which I think will be more a world recovery versus a U.S. recovery, the peak oil argument could have a more pronounced effect on the oil price. That’s particularly true in light of the fact that this decline has caused just about everybody to stop any real new exploration and hold off where expectations of oil were high, such as the tar sands in Canada.

So, if people are still willing to look out three to five years versus three to five days, I think oil is a better risk-reward at this point than the U.S. equity market. (source: comodity online)

• 0 comments »

We face a very bad crisis this year, and predict will continue until even in the end of the year. Many stimulus come from government to save company, they hope that company still can retain their worker as can as possible. But sometimes company decide to do downsizing too. If you are in high management level who have contribute to make a decision, just take a brief consideration before take that way.

Suggest company to have a manpower analysis before Downsize. It is the important thing company must do, they must analysis how important their worker to their company. What have company do for their worker to make them capable enough to work there. If company have trained the worker well and then they cut their employee. it will be a big lose for company. Beside that cost of lay off is not a small amount too.

Bring the idea to your company, the economic crisis is not going to last for ever. When economy starts improving company will have to re-hire people. Re-hiring has a very high cost associated with it. Company will not only need to re-hire people, have to train them to be productive enough and also choose the loyal one too. Are savings from firing today adding to tomorrow’s hiring costs ?


Is the downsizing only one way out?

The economic crisis is forcing you to separate some employee and there is no way around. Do it but avoid creating a panic around, in employees, in investors, by crying loud about the downsizing. If are downsizing, do it as quietly as you can.

Double check your downsizing list to ensure that only low-performers are earmarked for separation. Doing a effective performance appraisal before you earmark employees for separation can help you retain your top talent, while letting low performers go. But don't forget to give them sufficient notice period, so they can find a way to looking for a new job.

Just consider it well before do downsizing, remember employee is one of key success of company. There is considerable evidence that downsizing does not reduce expenses as much as desired and that sometimes expenses may actually increase. And when economy back to normal condition Businesses should instead plan for recovery and they can only do that by retaining their staff. Better suffer now and when they need to go back to run their business they still have full speed to do that. And beside that it will make employee more loyal to company

• 0 comments »

Not paying off the debt is a strategy that will bury you in interest charges. The way some companies calculate the required minimum payments, it could take you as long as 30 years to pay off your original purchase.

It's important to understand that the credit card companies don't allow you to pay back your debt in small amounts out of the kindness of their hearts. This is how they make their money. Paying the minimum payment (usually around 2% of your balance) each month, guarantees that you will be filling the credit card company's cash coffers with your hard-earned money for many years to come.


**Pay more than the minimum. Your payments include both interest and principal (the amount you borrowed). When you pay only the minimum payment, most of it goes towards interest, which is why it takes so long to pay off the original debt.

**Prioritize your debts by interest rate. To minimize the amount of interest you pay, concentrate on paying off the debts that carry the highest interest rates first.

**Don't get any deeper into debt. Save the credit card with the most favorable terms and cut the rest up. Put the one you saved in a safe place (not in your wallet) and use it only for emergencies. Use a debit card instead of your credit card

**Use your savings to pay down debt. It makes no sense to earn 1 to 3% interest on your savings account while paying 12 or 15 or 18% interest on credit cards.

**Make a spending plan. Nows the time to change your free-spending ways. To do that, track the money thats coming in and going out

• 0 comments »

The current economic distress is projected to worsen throughout 2009. A full recovery is not expected until sometime in the year 2010. The current 6.5% unemployment rate is expected to rise to at least 9% and with it, credit will continue to tighten, with
interest rates and late fees increasing, and many credit cards will be canceled.

What you must do? Cut down your living expense. Take out your cash flow statement. Then prioritize your expenses. After that, you are ready to figure out how to reduce expense. It is best to do this exercise with your family or spouse.


Step 1: List Current Expenses

In order to have a better idea of how you personally can cut household expenses, you need to determine what your current expenses are.
1. Collect all the receipts, bills, and financial statements that you can find.
2. Create categories for your expenses for example, sugar, flour, egg, vegetables under category Food
3. Write down fixed costs. Bills fall into this category
4. Calculate the average monthly cost of other items, for example u need to repair your car, buy clothes, make it an average cost for monthly

Step 2 :
Before you set a budget, try to find ways to reduce your monthly expense. By reducing the cost on your regular bills, you'll have an automatic way to save money each month, and a more accurate budget.
1. Examine old telephone bills to figure out how you use your phone.
2. Use only one cellphone and use it properly
3. Think it carefully if do you really need cable TV
4. Consider living in a smaller house
5. Use compact fluorescent light bulbs (CFLs). This is an almost universal recommendation for reducing home energy bills.
6. Wear clothes a couple of times before washing to save money on energy and water usage, as well as detergent. Dry your clothes on a clothesline or drying rack in your home

Step 3: Make a Budget
create a budget for the future, choosing areas where you think you can cut back on expenses.
1. Try to spot categories you can cut back, but be reasonable
2. Estimate what you'd like to spend on categories for which you don't have records.
3. Keep close track of all your expenses over the next couple months. Save all receipts and statements that you accrue during the week. Keep them in a safe place where you can find them to record later. Don't forget to note cash transactions.
4. Compare what you thought you spend to what you actually spend. Hopefully, your estimates were on par. If not, make changes to your budget accordingly

Step 4: Curb Your Spending

One important way to cut down on your expenses is to take care of your stuff and yourself. The more quickly you wear your possessions out, the more money you'll spend replacing them. Similarly, if you take care of your body's health, you won't wear out or get sick as quickly. Fewer visits to the doctor is always good for the wallet.

1. buy used, pay cash, or buy online
2. Buying clothes during sales and Stick to machine-washable clothes
3. When you think you need something, put it on a list and let it sit a while. If you still need it after a month or so, go ahead and buy.
4. Don't make shopping a recreational activity and Get rid of credit cards
5. Not eating out includes not buying your lunch at work.
6. Take public transportation or carpool to work

Step 5: Pay Off Credit Cards
If you pay your credit card bill in full each month, good for you! However, if you tend to have a running tab, start paying that money back as soon as possible.

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You will probably want to build your wealth steadily. As a matter of fact, you need to learn to manage your money if you really want to build your wealth. To this end you may wonder how you should manage your money should that your wealth can be built gradually.
Here some tips

1. Try to set your personal Budget
You can do it step by step. First of all you will study the invoices you keep and then you will try to compare your expenses with your income. The most difficult part is to stick to the budget.


2. Try to pay your debt on time
The interest and late charge can really be something if you are unable to pay the debts on time.
You may also consider using debit cards instead of credit cards. This is because using your credit cards without any discipline can put you into debt problem.

3. Shopping less frequently.
Try to avoid stores that you know trigger impulse buys. only go into stores that I have a specific item to purchase. Try to limit your grocery shopping to once a week with a prepared list.
Try to shop on sale whenever possible. and try to shopping around for the better deal

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