History of Wall Street, the World's Leading Financial Center

Wall Street, One of the World's Oldest Financial Markets

     Wall Street. This name is often used to describe the financial industry and the companies in it, as well as the home of the New York Stock Exchange (NYSE). But what is Wall Street exactl

Wall Street is a name often used to describe the financial industry and the companies that comprise it, and is home to the New York Stock Exchange (NYSE). But what is Wall Street exactly?

Wall Street is actually the name of a street at the southern tip of Manhattan, New York, United States (US). Over time, Wall Street was used to describe the financial industry in the US which started with the many brokers, a number of investment and securities companies that settled there to get closer to the NYSE which was also in the area.

Today, Wall Street is used as a term to describe the financial industry, which includes stock exchanges, stock brokers, securities, major banks, and underwriters in the US. In fact, Wall Street is often interpreted as an investment business, motivation, and the attitude of the players.

Even though industry players are scattered across the US, the name Wall Street is still used as a collective designation for the local financial market. Events that take place on Wall Street often have an impact not only on the investment industry, but also on the US economy, even worldwide.

The History of Wall Street

Wall Street gets its name from the wooden walls built by Dutch colonialists in Manhattan in 1653 to defend themselves from the British and Native Americans. The wall was torn down in 1699, but the name has stuck.

The Wall Street area became a bustling commercial hub in the 1700s. It became a financial center in 1792 when 24 of America's most prominent brokers and traders signed the Buttonwood Treaty which gave birth to several traded financial instruments, including war bonds, and banking stock for institutions such as the Bank of New York, First Bank of the United States, and the Bank of North America.

In 1817, the Buttonwood brokerages named themselves The New York Stock and Exchange Board. The organization leased space to trade at several locations until 1865, and they settled in their own location, on the corner of Wall and Broad Streets.

After World War I, New York City overtook London to become the world's largest and most significant financial center, and its center was in NYC, in this case Wall Street.

As the US economy grew, several other major stock exchanges established their headquarters in the Wall Street area, starting with the New York Board of Trade, the New York Mercantile Exchange, to the House of Morgan and J.P. Morgan & Co., which is directly across from the NYSE, at 23rd Wall Street.

In 1882 The world's first power station was launched on Pearl Street by Thomas Edison to light 7,200 lights on Wall Street. Then, on July 8, 1889 The Wall Street Journal debuted a two-cent cover price, published by Dow Jones & Company.

Its most popular feature is the "Dow-Jones Industrial Average", an index that charts the performance of stocks.

In 1903 after two years of construction, the new New York Stock Exchange building was opened at 18 Broad Street. Designed by architect George B. Post, the building features imposing Corinthian colonnades, a bust by John Quincy Adams Ward, marble trading floors and 70-foot ceilings.

The building was the first in America to be air-conditioned, with the system designed by engineer Alfred Wolff. Under the building there are hundreds of underground vaults where stock certificates are stored.

Subprime Mortgage Crisis

In September 2008, Wall Street was at the center of the worst financial crash since the "Great Depression".

Much of the result of mishandling subprime mortgages.

The crisis caused Freddie Mac and Fannie Mae to be taken over by the American government and Lehmann Brothers filed for bankruptcy.

With many other banks expected to follow, a multi-trillion-dollar federal bailout was declared. Plunging house prices followed, and across the country there were massive foreclosures, and home foreclosures.

On September 17, 2011, as part of the aftermath of the financial crisis and housing market debacle, the Occupy Wall Street protest movement descended on Zuccotti Park.

Protesters set up the camp to draw attention to economic inequality and call for prosecution of the banks behind the financial crisis.

It is considered a leaderless movement, operating on the principle of anarchy.

After being forced out of Zuccotti Park on November 15, 2011, the Occupy movement shifted its focus to another location, organizing a long-running activist group that resurfaced during the 2016 presidential election.

Wall Street and Main Street

According to Investopedia, Wall Street is often compared to Main Street, a term used metaphorically for individual investors, employees, small businesses, and the economy as a whole.

The title comes from the common name for a city's main street where most local businesses are located.

The existence of Wall Street and Main Street is identical to the cons between the two. There is often a perceived conflict between Wall Street and Main Street's goals, desires, and motivations. Wall Street tends to represent large businesses and financial institutions, while Main Street represents large shops and small companies.

These are the Real Purposes of Finance in Business

The Importance of Managing Finance in Business

     Accounting is a way of tracking a company's activities, but finance powers a business and runs every part of a company's operations.

But sometimes some decisions are made without the involvement of those in charge of financial management.

According to investopedia.com, financing is the process of making funds available for business activities, making purchases, and investing.

The financial management of a company involves several verifiable elements which are essential for the success of the business.

Being able to understand financial objectives in a company is one of the most important activities of this process. For this reason, companies need to know what their financial goals are in order to properly manage capital, and track their progress.

What is Business Finance?

Business finance is the process of managing a company's cash. The purpose of business finance is to ensure that the company has sufficient operating funds, spends and invests its money efficiently and effectively.

The importance of finance in business is the ability to ensure that the business operates without financial disruptions such as running out of cash, ensuring the security of funds, and funds being properly invested for long term benefits.

In addition, although finance is dependent on accounting, finance is more active, whereas accounting is more descriptive; therefore, you can use accounting data to realize tangible results.

Types of Finance

Finances are divided into three main categories, and they play a large role in your personal or business life.

Personal finance is unique to you as an individual, company finance influences your job and the company you work for, public finance changes your tax spending. Let’s take a look at the three types in detail. 

Personal Finance

Personal finance relates to all activities for budgeting, investing, saving and strategizing, considering one's current financial constraints and capabilities.

Personal finance is very specific to each individual's unique financial settings. But usually it depends on annual income or salary, living expenses, and lifestyle.

People usually save for retirement, which makes saving and investing during retirement an important component of having a retirement fund. Personal finance also includes financial products a person chooses, such as banking, credit cards, loans, insurance, mortgages or mutual funds.

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Corporate Finance

Corporate finance is all financial activities for the business. These usually have separate departments, but can sometimes be combined into accounting, investment, or general management.

Finance activities for a business include budgeting current capital, future capital, project financing and refinancing, and assets to ensure that the company has the best deal on the market today.

Corporate finance also includes finding ways to raise additional funds, which can be obtained through issue bonds, financial offerings, or new investors.

Public Finance

Public finances are all government activities related to money and money management. This includes taxation, budgeting, government expenditures, and issuance of debt (both to the government and from the government).

Another major component of public finance is money management and strategies to ensure the economy continues to survive.

In the US, the Federal Reserve System (The Fed) creates all of the monetary policy to help the US economy. It does this by managing inflation, reducing unemployment, and stabilizing interest rates in a changing economy and market. Moreover, the Fed works to stabilize the economy and financial system by overseeing the largest private banks. They also provide a wide range of financial services to the US government.

Why are Business Finance Important?

The importance of business finance can't be overstated, whether it's a small business or a large corporation, managing your finances is the key to profits and growth.

Businesses run on money, and business finance is there to help you make smart and informed financial decisions about your long-term funding strategy and cash flow.

By learning more about business finance, you will use money efficiently and effectively in your business, and know how to get more capital when you need it, thereby increasing the profitability of your organization, and increasing your potential to take advantage of more opportunities.

Some of the reasons why finance is important in business are:

1. Explore new products and markets

All businesses are continually pursuing new products and markets, and this requires financial strength. Therefore, without an effective financial structure, exploring new spaces and entering different markets with new products may be somewhat difficult. It also includes new tools that can help you accomplish more with your business.

2. Creating Profit for the business

There is a saying, "You need money to make money," and they are absolutely true, which is why business finance needs the most attention. It is very important for the profits that go to the business to continue to increase, to ensure that the business keeps running, and growing.

Therefore, initial capital investment needs to be managed carefully, with attention to the narrow division between debt and equity financing.

When the finance team does profit planning, they have to take it because they determine the benefits of each business product, and at the same time, eliminate the losers while supporting the winners.

3. Ensuring operational costs are met

Finance involves operational expenses like raw materials, employee salaries, interest payments, etc.

Fulfilling these expenses will make the organization run well.

A good financial plan will ensure that there is stability in the management of incoming profits, relative to operational costs that must be met regularly.

4. Create more assets for business

In the end, the long term goal of all companies is to increase production by acquiring more assets for business.

The business finance department assists companies in ensuring that they have a viable savings plan, apart from short-term finances, to meet these goals.

A company needs a highly skilled financial management team to invest adequately in items such as land, equipment, and machinery that will scale up production.

One of the main options companies should consider offering is the availability to make online payments.

In order to increase the purchase of goods via the internet, businesses need to consider e-commerce payment services.

5. Manage the Company's cash flow

It doesn't matter the size of the business, the greater the amount of cash flowing into and out of the business the better. However, not having a sound financial system can create many problems, including legal problems.

Any business needs a solid finance team to handle the company's cash flow, with financial records as proof of the different transactions. This is important so that the company can cover all its business expenses, and thereby avoid problems in the future.

Knowing how much your cash spending is, and how to calculate it, is vital for a thriving business.

Summary

Most businesses are ultimately about money, and how well it is managed determines how successful it will be. Therefore, every businessperson needs to be aware of the importance of finance in business.

The Right Way to Save to Increase Your Wealth

How to Save the Right Way to Increase Wealth

     Saving is a goal for many people, some want to save for retirement, others plan to use the funds to fly to a dream vacation spot.

Yet, over 70% of Americans have less than $1,000 in their savings account. According to Bankrate, 40% of Americans say that it is difficult to save because the cost of living is so high.

Saving at the Bank does not Make You Rich

If you think that saving money in the Bank is your way to achieve wealth, then you are wrong.

This is why most Americans never get rich again, while those who are already rich who own assets just keep getting richer.

Steve Roth, an investment expert crunching government data and found that with savings in households, whatever income is left over after their expenses, it does little to increase wealth.

Why if saving alone won't improve your financial life?

The depreciation of the value of money in everyday life cannot be separated from the history of how America changed the standard of value for money that it adheres to.

In 1971 the President of America, Richard Nixon decided that America was coming out of the use of gold standard. America will adopt a floating currency system, which bases the value of its currency on the value of credit and public trust.

Since then, the value of money is no longer stable, because it is guaranteed by any commodity. The fluctuation of the value of money is determined by market conditions and the stability of a country's credit score. This condition does not only affect America.

Due to the position of the US dollar as an international currency, automatically all countries also follow a floating currency system.

Currently the value of the currency of each country fluctuates up and down in accordance with the inflation rate, the situation and market confidence.

A certain amount of money that can meet your current needs may not necessarily be able to buy the same thing in the next few years.

With the rise in goods or inflation every year, the road to getting rich in the future becomes more difficult.

If you only rely on saving, of course you won't be able to catch up with inflation, which is faster than interest on savings. So even getting rich will be hampered because the money you have now will not be enough to meet future needs.

Money is now hostile to time. The longer you save, the amount of your savings will indeed increase, but the value of the savings itself may actually increase and decrease.

Way to Save to Get Rich

There are several ways to save the right, that let you build wealth and beat inflation.

Investments can beat inflation, and keep the value of your money. In fact, it doesn't just beat inflation, investment returns have the potential to provide greater asset growth, thus giving you profits.

The world's richest people, such as Warren Buffet and Bernard Arnault, made their fortunes by investing. Here's how to save money to get rich:

Saving Stocks

Saving in stocks is still not very common for people of the world. Whereas to save stocks, the method is so easy. It's the same as we save conventionally.

Ways to save stocks:

You come to the banks of your choice, and open an ordinary account. Then all you have to do is open an investment account by creating an investor identification (SID) account with a securities company, broker, or stock trading broker.

Funds stored in a bank account will later be deducted automatically (autodebit) to buy shares or mutual fund products that are approved by investors.

The value can be adjusted to your abilities and needs.

After the nominal amount has been determined, you can deposit the funds in the stock account regularly every period. The customer is free to choose the shares to be purchased, as long as it is in accordance with the amount of deposit per month.

In contrast to conventional savings which are subject to inflation, the money saved in shares depends on the productivity of the company that owns the shares. The better the long-term development of the business, the better the results.

In addition, one day you will get a profit in the form of a capital gain (the difference between the purchase price and the selling price of the shares). Not to mention the dividends you will receive if the company makes a profit. But you need to know, that stock investment also has the risk of loss, if the stock price declines.

Gold Savings

One of the factors why you need to save in the form of gold is because the price of gold always rises from year to year.

The advantage of gold is its resistance to inflation, and when you need large amounts of cash, gold can be cashed out easily and quickly.

Simple Tips on Saving for Retirement

How to Boost Your Retirement Savings

     Whether you're a new employee or nearing retirement, you still have the potential to build up some money in your savings account.

When planning for retirement, the earlier you begin saving, the better, thanks to the power of compound interest.

But if you're running late saving money, or haven't started yet, it's important to know that you're not alone.

There are several ways and strategies you can do to increase your retirement savings. It's never too late to start.

Consider these simple tips, which can help you increase your retirement savings — and achieve the retirement you dream of.

Savings Mindset

Saving for years just so you can make 70 to 90% of your old salary annually when you retire sounds like a disconcerting idea.

How can you save that much while you are still living your life before retirement? Luckily, there's compound interest -- a small amount of money contributed to a retirement savings account like a 401(k) or Roth IRA, which can grow rapidly over decades.

You have to plant a seed to grow a tree, and when it comes to saving for retirement, it can be difficult to be disciplined about paying now, so as to benefit later. This is where the saving mindset is formed.

Look at the budget you set up as part of your plan. Does a large portion of your monthly income go to credit card companies? Then you have to be determined to pay off your credit card debt aggressively. One of the great ironies of saving well is that it can often involve some serious spending, at least in the beginning.

You should set a certain amount of your pretax earnings to contribute to your retirement savings on a monthly, or biweekly, basis and take it out of your paycheck, just like your taxes.

401(k) Accounts

If your employer offers a traditional 401(k) plan and you qualify, you can contribute pretax money, which is potentially a significant advantage.

For example, let's say you're in the 12% tax bracket and plan to contribute $80 per pay period. Because that money comes out of your paycheck before federal income taxes are assessed, your take-home paycheck will drop by just $68 (plus the amount of applicable state and social security, local income taxes, and medicare taxes). That means that you can invest more of your income without feeling it as big as your monthly budget.

If your employer's 401(k) plan also offers a Roth 401(k) feature, which uses after-tax earnings rather than pre-tax funds, you should consider what your income tax bracket will be in retirement, to help you decide if this is the right choice for you. Even if you do leave the company, you have a choice about what to do with your 401(k) account.

Set up Automatic Withholding

The main plus of a 401(k) account is that the money is deducted from your paycheck, and you never get a chance to spend it. If you don't have access to a 401(k) at work, consider setting up a direct deposit into an individual retirement account or a taxable account to easily save retirement money.

Open IRAs

Consider establishing an individual retirement account (IRA) to help prepare for your retirement.

You have 2 choice: roth IRA and traditional IRA. (investopedia.com)

A traditional IRA may be proper for you, it depend on your income, and whether you or your partner are eligible to participate in a workplace retirement plan.

Contributions to a traditional IRA are tax-deductible, and the potential investment income has the opportunity to grow tax-deferred, until you make withdrawals during retirement.

If you meet the gradually modified adjusted gross income limit, which is based on your federal tax filing status, a Roth IRA might be a good choice for you.

Claim Credit Savers

Retirement savers whose adjusted gross income was less than $30,000 in 2014 are entitled to a tax credit of 50, 20, or 10% of the amount contributed to a 401(k) or IRA up to $2,000. Investors with the lowest incomes deserve the largest tax credits for their retirement savings.

Manage Your Mortgage

If you own a home, you have huge debts and a very valuable asset. You can use the house to your advantage as either.

If you're a young saver and own a home, keep an eye on interest rates. If they do start to fall, consider refinancing your mortgage to a lower rate.

Using the additional money that was previously used for recurring monthly fees from your higher mortgage payments, it can then be used for your retirement savings contributions.

Do the math first. Paying off accumulated credit card debt will likely prove a better use for extra income, since credit cards almost always have higher rates than home mortgages. If the opposite applies to you, refinancing your mortgage is a good idea.

Avoid the temptation to take out a second mortgage to consolidate your debt unless you believe your spending habits have been curtailed to suit a savings mentality and the cost of paying off credit card and other debt is more expensive than paying the extra mortgage every month.

In the end, the best thing you can do with your mortgage is pay it off by the time you retire. The loss of hundreds or thousands of dollars of recurring monthly expenses such as mortgage payments is an instant, substantial increase in income.

Frugal Living Habits to Save Money

Frugal Living Ideas to Save Your Money or Eliminate Debt

      One of the ways to manage your finances is to live frugally. The term "frugal" is often associated with pinching money and depriving yourself of the things that make you happy.

Frugal living is not about living as cheaply as possible. It's about making careful choices that allow you to save money, and you can pay off your debt more quickly, and enjoy the little or big things in life.

Frugal Living is finding ways to save what you can - whether through freebies or coupons - so you can focus your money and attention on the things you value, whether that's saving for retirement, traveling the world, or living a debt-free life. (nerdwallet.com)

To live a frugal life, all you need to do is remember a simple personal finance formula: spend less than you earn.

This can be done through a combination of rationalizing your spending and cutting your expenses in various areas of your life.

Frugal Living Ideas to Save Your Money

Here are some frugal living ideas that you can incorporate in various areas of your life, so you can save money.

Stop Dining Out

See eating out as a privilege that only happens a few times a month at most. Instead, start cooking your own meals.

Even if you cheat and buy some frozen pizza here and there, you'll still end up spending less than if you went out to eat.

Even if you were spending $7 a day on lunch just 3 days a week, that would cost you over $1,000 a year!

Packing your own lunch is definitely a good thing to do if you want to be frugal and save money.

Buy at Thrift Stores, Sales Stores or use Coupons

Frugal living adherents agree that you should avoid paying full price as much as possible.

Half of a frugal wardrobe comes from Goodwill, and some even get a $2,000 designer luxury jacket for as little as $13, with some savvy thrift store shopping know-how.

If you don't like to save money, there are lots of coupon apps and sales happening around the clock; You don't have to be glued to your computer screen to stay up to date on sales.

Buy Sale or Season Products

It's no secret that produce is one thing that can quickly eat up your grocery bill. Instead of reaching for whatever catches your eye, stop and see what is on sale and buy it instead.

Even just finding out what fruits and vegetables are in season, and then shopping for those, often helps because they are likely to be less expensive.

Sell things you don't need

A good decluttering session can not only make your home a happier place, but a richer one!

It doesn't take a rocket scientist to tell you if you have less stuff, you'll spend less time tidying and cleaning, which, in turn, gives you more time to do the things you love.

Once you're done declaring, you can turn that mess into some cold hard cash.

Avoid Overspending to Improve Your Status

The next frugal lving method is skip spending more to impress other. Some items that used to impress are no longer important. The days of an expensive watch being a status symbol are dwindling, as fewer people wear traditional watches.

Expensive pens and cufflinks are other examples of items that were once status symbols, and are now being overlooked by others.

If you want to impress your friends, spend your money on things that matter to them. Or, better yet, don't worry about what matters to them and buy what matters to you.

Remove Monthly Subscription

Before you buy all the stuff you think will impress your friends and neighbors, you need to make room in your budget. The easiest way to do this is to forgo the monthly subscription.

Generally, subscriptions are set up with automatic payments, which makes it easy to avoid missing payments, but it can cost more if you forget.

While apps like Truebill and Trim can automatically find and cancel subscriptions, you can do this yourself by scanning your bank and credit card statements for recurring charges.

Every few months, review your finances to make sure you aren't paying for a service you don't use or need.

When you review your monthly subscription, consider how frequently you use it and whether it duplicates other services. Instead of paying for multiple streaming services, news websites, or beauty box subscriptions, choose the one you use most and cancel out the rest.

6 Common Mistakes in Making Financial Statements

Common Mistakes that Businesses Make in Financial Statements

     Financial reports are one of the most important tools in business. Without financial reports, you will not know how far the business development is being carried out.

With financial reports, you can adopt the right business strategy to support the company's development.

However, sometimes errors occur in preparing financial statements.

These mistakes must be avoided so that the resulting financial reports are accurate.

Do not let you enter the wrong data in the financial reports which can be fatal to the company.

Here's a list of some of the common mistakes entrepreneurs make while maintaining their financial accounts. The effect of errors on financial statements can be disastrous and hence, every entrepreneur should be aware of the common errors made on financial reports.

Mistake in Classification of Assets and Liabilities

Your balance sheet is the most important statement because it tells you the state of your company's finances. Even though you may have studied balance sheets many times, the classification of assets and liabilities can be very confusing. You need to know how much you have to pay, and how much you have to accept from your client.

Therefore, classifying your assets and liabilities in the right manner is a top priority.

Mistake in Income & Expenditure Statements

Income and expense reports are basically made to calculate the cost of goods sold. A miscalculation or misleading number can affect cost of goods sold, gross profit, and net income, in a big way.

In addition, it is important to keep income and expenditure reports up-to-date. Any errors in this sheet can directly affect your company's income statement, leading to understating or overstating income statement.

Not Reconciliating Loan Accounts

Bank accounts and credit cards aren't the only accounts you will need to reconcile. You also have to reconcile your loan account each time you receive your loan statement.

Reconciling your loan account is the easiest way to ensure that the liabilities portion of your balance sheet is accurate. This also ensures that you record the interest portion of your loan payments correctly. Too often, all loan payments are posted against the principal balance on your books, which means your liability and interest charges will be understated. (nerdwallet.com)

As with your bank reconciliation, make a note on your calendar to ensure your loan accounts are reconciled regularly. You should reconcile your loan accounts before filing your tax return each year.

Mistake in Data Entry and Omissions

Data entry errors occur when data is entered incorrectly into the financial database from a financial document. These errors occur when there is human error in the books. For example, a number written backwards like 27 is written as 72. This is a basic human error and therefore, you need to double check to avoid such mistakes.

Error of omission refers to an entry that was not recorded by the accountant, this can occur when there are many transactions and the accountant may forget to enter one or two of them. This is a basic human error, and double-checking should be done to avoid it.

Mistakes in Cash Flow Statements

Some of the common cash flow errors are overstating operating cash flow, gross non-cash settlements, netting off transactions, errors with foreign currencies, and errors in determining what is "cash" or "cash equivalents". Financial consultants stress that the cash flow statement information is 100% accurate, as investors stress it before making any business decisions.

Errors in Inventory

It's important to have an estimate of the inventory in your warehouse, as well as inventory that is in transit.

In some cases, you may be dealing with multiple types of inventory, and may have to decide how much inventory you'll need in the future.

One common mistake is to re-record every sales return, in which the inventory has been returned and is now back in your warehouse again. In fact, if you have lots of different inventories, then it's hard for you to keep track of them. It is strongly recommended to hire an accountant who will do a better job.

The effect of an error on financial statements can seriously affect your books. You ended up taking the wrong decision. Therefore, take the time and ensure that your books are balanced, so that the future of your company is safe and secure.

7 Tips to Improve Your Online Banking Security

Safe Tips for Making Internet Banking Transactions

     The rapid development of technology and the internet has a positive impact on society. However, on the other hand, crime is also growing. Fraud is not only physical in nature but also targets the virtual world.

For those of you who frequently make transactions online, and make payments through internet banking services, you need to be aware of crimes that might arise, for example: phishing.

You can avoid this as long as you are always alert and know tips for safe transactions when using internet banking.

So you don't need to be afraid of doing internet banking transactions. The key is in yourself, like the most important basic thing, don't be easily tempted by the temptation to win prizes by providing complete personal data.

You must take good care of your personal banking data to anticipate cybercrime.

How to Use Internet Banking Safely

Internet banking is a safe and secure financial service from a bank, the fact is that some people are still afraid to use it. This is a common phobia due to excessive fear that internet banking has many types of technology-based crime risks.

Indeed, internet banking has certain risks, but these risks are also associated with your behavior that does not understand how to use internet banking properly and safely.

Then, what must be considered to avoid crimes that may arise from this online transaction?

Check out tips on how to do internet banking safely:

1. Use Personal Computer when Access Internet Banking

To protect your personal information and financial data, use a personal computer or smartphone to access your account.

Do not access your account from a public place such as an internet cafe or a shared computer. Because more online fraud occurs in places like that. Never use a shared (Wi-Fi) connection to log in.

If you need to log in from a shared computer, just use your browser's 'incognito mode'; where the browser doesn't save your browsing and other data.

Use a virtual keyboard, because this will reduce the risk of password theft (keyloggeer).

2. Change Passwords Regularly

Get used to changing your internet banking password every 45-60 days. Create strong passwords by using special alphabetical, and numeric combinations.

Your password should be unique. Do not use the same password for other websites, and it is difficult for people to guess.

Avoid using names, dates of birth, telephone numbers, vehicle registration numbers and so on to create passwords.

3. Enter Internet Banking URL Correctly

When surfing the virtual world, most people use search engines such as Google, Bing, Yahoo, etc. to access what they are looking for, including transactions with internet banking.

The search engine will return results based on your search keywords.

And, it's possible that you're clicking on the wrong sitelinks. Usually such sites are almost similar to the pages of financial institutions that can steal your financial information.

Don't carelessly click on e-mail links to open internet banking sites, because usually that's the way to steal your data.

Currently, banks have used Hypertext Transfer Protocol Secure (https) to transmit information between client computers and their servers. This technology uses an encrypted connection that allows data transfer to be more secure.

See 'https' in the URL address. If you don't see 'https' in the URL of the login page, then avoid logging in.

4. Don't Respond to Emails of Unspecified Source

Do not log in by clicking on a link email sent to you. For information regarding personal data, your bank never asks to verify your log in details.

It will do you good to stay away from such emails or calls. Never respond to the email and do not download any type of attached file/document.

5. Don't give your User ID, Password and OTP Code  to Others

Never reveal your personal information or data (ID/identity document) and banking passwords and even your OTP code to anyone, or anyone, including parties claiming to be from the bank.

Never write down user ID and Password on paper; just remember. However, if you forget it, you can just reset the password.

You have to take good care of personal data. Never share selfies with ID cards, TINs, etc. Never share credit card numbers with CVV either.

6. Turn on Account Notifications

Now all banks have automatically sent credit and debit confirmation messages to customers. If you don't receive such a message, please visit your bank branch and enable account/transaction notifications.

Such notification will help you in detecting unauthorized activity. If you change your phone number, immediately inform your contact to the bank so that you can receive the information properly.

7. Don't forget to properly log out

Don't forget to log out from the internet banking page after using it. Currently, the computer can indeed be set to exit automatically from the website/application that you open. This means that if you leave your computer unattended for a period of time, you will automatically be logged out of your account, even if you have not chosen to log out.

You can also delete browser history and cache after the end of the online session. Using internet banking correctly will make it easier for you to make banking transactions comfortable and safe.

How can I be a Millionaire?

Is it Possible to Become a Millionaire?

     The pursuit of wealth must be motivated by a desire for financial security, not status or a lavish lifestyle. Start young and adopt the right financial habits, then becoming a millionaire is a goal that can be achieved.

In working with wealthy clients, Jason Flurry, CFP, founder and president of Legacy Partners Financial Group in Woodstock, Georgia, has found that while the "real millionaires" are people who make wealth and keep it, money plays a very different role in their lives than other people. which focuses on what money can buy.

Having money for the sake of having money or being rich' never makes a person feel satisfied. The irony is that it can actually lead to a different set of problems, that most people don't think much of in their pursuit of more money.

An American writer, Thomas Stanley did research to find out how people get rich. He was surprised to find that many people who live in expensive homes, own the latest models of cars, expensive watches, and wear luxury clothing brands, actually do not have any wealth.

At first Stanley thought that most of the rich people were descended from the old rich. However, he discovered that it was ordinary people who built their own wealth and thus became rich.

The results of his research are outlined in his book entitled "'The Millionaire Next Door":.

In that article, there are at least five tips on how to accumulate wealth and become a millionaire.

Pick the Right Profession

An important aspect of determining the right career is to choose a job that will not become extinct in the future. In addition, choosing a career just because it will not become extinct is not enough, but how to recognize your own strengths, abilities and weaknesses is also an influential factor in choosing the right profession.

Has multiple sources of income

Control your income by having income from other sources, apart from your main job

Try not to be too dependent on one source of income. That's the way to have more control and stability over the income you have.

Set aside money to invest

Understanding what investments are suitable for you can be a simple investment strategy that will help build sustainable wealth in the long term.

Don't let results and lifestyle rule your life

Having certain goals or desires is not a problem. But try not to get too attached to other people's results or lifestyles and think realistically.

Choosing a like-minded partner.

The right spouse will not make all the money you have run out. When partnered with someone who has the same mindset, it will reduce financial disputes.

How to be a Millionaire

    Being rich is very possible, the important thing is you are willing to work and try to achieve it. Here are tips on becoming a millionaire.

1. Develop a millionaire mindset

In order to answer your question, "How do I become a millionaire," you need to develop a millionaire mindset.

But more than anything, wealth is a game of mind. If you don't start out with a strong money mindset, you may have a hard time adopting the habits and practices of a millionaire.

Some characteristics of the mindset to incorporate into your millionaire routine are:

Plan ahead

Think about your short, medium, and long term financial plans, and what you will do in case of an emergency.

Have a solid financial plan and be prepared for the unexpected. It's a big part of reaching your "become a millionaire" goal.

Determination

You will face challenges, but be ready to overcome them. It's important to stay committed to your goals and never give up on your dreams, no matter how big they are.

Patience and delayed satisfaction

Be willing to put off present desires for future goals. Evaluate what it is you really want, that can prevent you from reckless spending, save and invest.

Openness

Willing to learn, people sometimes make mistakes, or even fail, and then learn some more. Seek knowledge and surround yourself with positivity.

2. Carefully watch your expenses.

Look for opportunities to reduce costs such as cell phone bills, cable or subscription services, eating out, grocery shopping, etc. (investopedia.com)

A great way is to see if you can live on only half of what you earn, and save the other half. Try it as an experiment for a year, and keep going if you can. This will get you to your million dollar a lot quicker.

3. Maximize your retirement investment account

Investing your money is how to become a millionaire quickly. The two most common types of retirement accounts are IRAs, which are personal accounts, and 401(k), which are usually offered through a job. You can have both, and both will allow you to invest in the stock market while saving money on taxes.

If you contribute as much as possible to this account, it's like a fast track to becoming a millionaire. Today, there are the all-time highs of “401(k) millionaires” and “IRA millionaires”, meaning that people can become millionaires simply by investing in these accounts.

News like this is encouraging, because contribution limits are the same for everyone. For 2022, you can contribute up to $20,500 to your 401(k) and $6,000 to an IRA, according to the IRS.

4. Use your money to make money

Most rich people don't just sit on hoards of gold, they make their money work for them. Use your money to make money with a minimum of active effort (passive income).

The easiest way to generate passive income is to invest in stocks, or keep your money in a high interest bank account. If you manage to max out your retirement account for the year, you can continue to invest the money in a brokerage account or HSA for health expenses.

Here's How to Achieve Financial Freedom

Tips to Achieve Financial Independence, You can Follow These Tips!

      You may often hear the term "financial freedom," meaning that you have enough money to pay and support your life goals. Having financial freedom means that you are in control of your finances and life choices.

At least there are 7 levels of financial freedom. The following are the seven stages of financial freedom:

Level 1 : Clarity

The first step is to check your financial condition, how much money you have, how much you owe and what goals you want to achieve.

You cannot achieve the goals you want without knowing where to start.

Level 2 : Independence

You wish to be financially independent. When it comes to this level, a person with enough income to finance their living needs without outside help, such as help from their parents.

At this level, you live paycheck to paycheck or take out loans to make ends meet.

Level 3 : Financial Ease

People at this Level still have some money left after paying for living expenses. The rest of this money you can use to achieve other financial goals, such as building an emergency fund and investing for retirement.

When you are at this level, you have financial freedom, but this does not mean you make a much bigger salary.

Just because you make a lot of money, doesn't mean you're actually saving it.

Level 4 : Stability

People who reach Level 4 have paid off high-interest debt, such as credit card debt, and have an emergency fund equal to six months of living expenses.

When you have secured an emergency fund, you already have a safety net in case of unforeseen circumstances, such as when layoffs occur.

At this level, you are not worried if you lose your job or have to move to another city.

Level 5 : Flexibility

People at Level 5 have enough emergency funds to cover at least two years of living expenses.

With that much savings, you don't need to keep it all in cash.

As long as you can access that money quickly when you need it, you have the flexibility to break free, at least temporarily, from work.

Level 6 : Financial Independence

People who have attained financial independence can live solely on the income generated from their investments. The investment can be in the form of property rental income, or an investment portfolio that generates interest.

To arrive at this level, you must invest a high percentage of your income. Pursuing financial independence requires a change of mind.

People were taught to save 5%, 10%, 15% of their income, and maybe you can retire when you're 65.

Many young people are starting to understand that if they aggressively save and invest, they can work more relaxed and have more control over their future and destiny.

Level 7: Abundant Riches

If a person at Level 6 needs to monitor changes in an investment portfolio to ensure retirement plans are on track, those of you at Level 7 have none of those worries anymore.

Level 7 is an abundance of wealth, they have more money than they need. You don't need to worry about money anymore.

Steps to Achieving Financial Freedom

How to reach financial freedom? One of the strategic steps to achieve this, of course, is to invest. The following are tips for achieving financial freedom:

Set goals

Financial goals are targets that you want to achieve within a certain time period. This target must be specific in value, so you can plan how to achieve it.

For example, say you want to have $50,000 in the next five years.

Know your risk profile

As an investor, a risk profile is something that must be known before making an investment, because it determines how much risk you are able to bear.

The higher the potential investment return, the higher the risk. There are at least 3 types of risk profiles, namely conservative (risk averse), moderate and aggressive (risk averse).

Choose the right investment

If you are a beginner investor, money market mutual funds are suitable for you to choose. Because, the risk is low, and your investment value tends to be stable. Money market mutual funds contain deposit assets and bonds with maturities of less than a year. (investopedia.com)

If you are getting proficient in investing, other investment instruments with higher risks can be tried.

For example, fixed income mutual funds, mixed mutual funds, and equity mutual funds. These three types of mutual funds are suitable for investors with a moderate - aggressive risk profile with an investment term of 3-5 years.

Apart from that, investors can also consider investing in gold bars or precious metals. Mutual funds, Retail SBN and gold, are both investment instruments that are worth considering to beat inflation.

Investment discipline and routine

The most important thing about investing is discipline. If you have set goals, you must routinely set aside money according to the planning at the beginning.

Mutual fund investment contains risks. Investors are required to understand fund fact sheets and prospectuses when investing in mutual funds.

Peer to Peer Lending: All You Need to Know

 Peer to Peer Lending, How it Works, and Benefits

    There are two approaches to the peer to peer lending concept, namely: as a borrower, or as a lender (Lender).

Whatever you are in terms of peer to peer lending, these two roles will provide you with distinct benefits in financial terms.

The P2P lending system itself is not without risk.

Just like any other financial activity, you still have to be careful in carrying it out.

However, as long as you understand how the system and how it works, you should be fine.

The following is all you need to know about peer to peer lending.

What is (Peer to Peer) P2P Lending?

Peer-to-peer (P2P) loans are a way for people to lend money to individuals or businesses.

You (as the lender) receive interest, and you get back your money when the loan is repaid. But P2P loans can be much more risky than savings accounts.

How Peer to Peer Lending (P2P Lending) Works?

As a Lender

Lenders or investors can see detailed borrower data, such as the type of business, how long the business has been in operation, the purpose of the loan, income, financial history and so on.

This is called the P2P Lending marketplace, because lenders can see and then choose what loans they want to fund, along with the tenor, interest rate, and risk of each loan.

When you want to fund a loan of choice, Lenders can directly distribute some funds.

After that, the borrower will repay in installments or at the end of the tenor.

From there, the lender gets the benefits of principal and interest.

The interest rate will depend on the interest rate on the loan being funded. (forbes.com)

As a Borrower

The borrower only needs to upload all the documents needed to apply for a loan online.

Among them are documents containing financial statements for a certain period of time, and also your purpose for applying for the loan.

Your loan application can be accepted or rejected, depending on a variety of factors.

If your application is rejected, then you have to fix everything that was the reason for your application being rejected.

If your loan request is accepted, the interest rate for the loan will be applied.

After that, your loan application will be included in the marketplace.

That way, all lenders can see your loan application and finance it.

When funding has been collected, loan funds will be sought.

Website of Peer to Peer Work Like Marketplaces

They match people or businesses who wish to lend money with those who wish to borrow.

It is a way for borrowers to obtain funding without going to traditional sources of finance, such as banks and community buildings.

On some websites, any money you lend is automatically divided among the many borrowers, but with others, you can choose who you want to lend your money to.

Interest rates for P2P loans are usually higher than those offered by traditional savings accounts. In general, the higher the interest rate a person is willing to pay, the higher the risk that they will not be able to repay the loan.

Getting Started with P2P Loans

If you need to lend money, compare between P2P lenders, and find one you are comfortable with.

There are three main steps:

1. Open an account with a P2P lender and pay some money by debit card or direct transfer.

2. Set the interest rate you'd like to accept or agree on one of the rates that's on offer.

3. Lend an amount of money for a fixed time period – for example, three or five years. You may have to pay a fee to lend money (i.e. 1% of the loan). Some lenders have an 'autobid' feature.

This means you can set limits on how much you want to lend each business and the lowest interest rate you're ready to lend at.

Is Peer to Peer Lending the Right Option?

Of course, this will depend on your financial needs.

For Borrowers, peer to peer lending is the right means to get loan funds quickly.

P2P Lending can be an alternative when borrowing in conventional financial services is too complex.

Loans in P2P Lending, usually also without collateral.

So, it's perfect for those of you who don't have assets to pledge as collateral.

For Lenders, peer to peer lending is an excellent alternative for developing funds and investments.

What's more, if you have more funds that you want to develop, but don't know where to allocate them.

The initial capital for funding in peer-to-peer lending tends to be small.

Not only that, by funding loans in P2P Lending, you can also study investment fundamentals.

Why? because P2P Lending has the same basic principles. Where do you have to do an analysis of the loans that you want to fund?

Advantages and Limitations of the Budget You Should Know

Advantages and Disadvantages of Budgeting

       Is it true that there are advantages and disadvantages in budgeting? Budgeting creates a polarization of thoughts and feelings. People usually either love him or fear him.

While the advantages far outweigh the disadvantages, you should learn the pros and cons of budgeting activities. (clevergirlfinance.com)

You can determine where you are, and find a budgeting method that works for you. Remember! budgeting is the foundation of your financial health. So, let's learn the advantages and disadvantages of a budget!

Advantages and Disadvantages of Budgeting

Quite a few people know the benefits of budgeting, and how it can improve financial health.

Some people hate it, due to a common misconception. Beyond perception and mindset, are there any unnecessary budgetary downsides?

Advantages of Budget

1. The harsh reality of personal finance is that people spend much of their money unconsciously.

If these people had an idea of how their frivolous expenses, such as eating out, or vacations, impacted their long-term goals, they would probably deduct some of them.

This is where the budget helps them by giving investors a picture, and, in the process of doing so, forcing them to do financial planning.

2. Another big problem with personal finance is that many people don't realize the impact that small monthly payments have on their savings and net worth.

When someone makes a written budget, they know how an increase in monthly payments will affect their financial condition. It prevents people from making unnecessary expenditures. Consequently, people who have a written budget find themselves with fewer financial problems over the course of their lives.

3. The act of preparing a new budget also acts as an evaluation of the earlier budget. This will help investors identify whether they have accomplished their goals.

If a goal has been missed, the causes behind the same can also be discussed. One time adverse events connected to healthcare or job loss can be ignored. However, if the budget targets have been missed because of impulsive buying, then the same can be avoided in the future.

4. Written budgets put each family member on the same page. In the absence of a budget, different family members may have differing opinions on the right amount to spend. Budgets help build consensus about thought processes, and in the right process, these gain support from different members of the family.

Budget Disadvantages

1. People who create budgets for the first time do not have much success doing so. This is because the budget is based on assumptions. Therefore, if the basic budgets are very strict, or based on unrealistic assumptions, then users will not be able to follow and use them.

Over time, people grow weary of the disappointment the budgeting process creates.

This is the reason why they just give up on the process in the long term.

2. Simple budgeting isn't going to help much. If you keep adding unnecessary expenses to your budget, your savings rate won't increase. The budgeting process brings with it a certain level of introspection. If you don't do that, and just write the numbers down on a piece of paper, it won't be of much use.

3. Budgeting takes a lot of time from the financial members. Members must decide on a monthly budget and make sure that they stick to it.

This means they have to meet frequently to discuss budget deviations. If all family members disagree with the idea of budgeting, then this may create resentment among family members.

4. Budgets are of little use to families whose incomes are very low. A family with very low income will spend a large part of their money on necessities.

This is the reason why there are not many opportunities for them to cut their expenses. The real problem in such cases is that revenues have to be increased, that cannot be addressed by the budgeting process.

5. When creating a budget, many people make the assumption that they can live without any kind of fun or entertainment. This assumption is clearly unrealistic, and in the long term, it means that the budget will not be followed.

A correct budget is realistic, in the sense that it allows for a reasonable lifestyle. In addition, budgets may not be made the same over time.

Entertainment costs go up during the holiday season, whereas heating costs tend to go up only during the winter. Different times cause different cost spikes.

5 Trending Digital Payment Methods for Business

What is a Digital Payment and How it Works?

     The world has changed digitally — both in business and in life. You can call a ride from the mobile app, and your transactions for all kinds of goods and services can easily be paid from your mobile.

Physical money is starting to be left behind, replaced by digital wallets. All you need is a smartphone.

Definition of Digital Payment

Digital payments, or online payments, is the process of transferring value from one payment account to another using a digital device such as a mobile phone, POS (Point of Sales), digital communication channel, such as mobile wireless data or a computer.

This system is usually integrated in a business software such as accounting software which has many of the best benefits of a company's business and financial payment system.

The definition of digital transactions in general includes payments made by digital money, bank transfers and also payment cards, such as credit cards and debit cards.

Types of Digital Payment Methods

With more than 75% of US consumers making digital transactions, the incentives for businesses that accept them are enormous.

Whether you are an eCommerce business or a retailer, smooth digital payment processing will help win consumer confidence.

Here are some types of digital payments that you need to know.

1. Digital Wallets

As the name implies, a digital wallet is a type of wallet in which you can carry cash, but in digital format.

Often customers link their bank account or banking card to a digital wallet to facilitate secure digital transactions.

Another way to use this digital payment method is by adding money to a digital wallet and using that balance to transfer money.

Nowadays, many banks have launched their digital wallet service products.

Reputable private companies have also established their presence in the digital wallet space.

2. Mobile point of sale (mPOS) systems.

The most famous mobile point of sale system in the world of digital payments.

The mPOS system works via smartphones, tablets and other wireless devices to accept payments from anywhere.

Retailers, restaurants and street service providers are the biggest beneficiaries of mPOS systems.

They allow you to move between devices and accept payments wherever you need them — whether it's bank card payments or digital wallets.

Wireless devices allow business owners more flexibility. When social distancing is enforced, those with mPOS devices can easily meet customers where they are seated, limiting contact or meeting people at the checkout.

Additionally, most mPOS software solutions come with features that allow businesses to email receipts, track sales, and even set up loyalty programs right through the system. It's a simple and convenient way to accept payments, enhance the customer shopping experience, and increase productivity.

3. Biometric Authentication

Many people already use biometric authentication technology for their buying and selling transactions every day.

It is basically a tool for verifying identity, ensuring only people with a bank account, or digital wallet, can authorize transactions through it.

Currently, most digital wallets already use biometric authentication, which requires users to scan their fingerprints before opening the wallet. (business.com)

For those who have activated facial recognition, it can also be an authenticator to enable payments.

Biometric authentication is a secure way to verify the identity of people making transactions. This makes fraud more difficult.

UK schools have already started using face recognition to accept payments in line for lunch.

4. Social media payments

Small businesses are doing big things through social media by leveraging built-in online commerce solutions, enabled by multiple social media platforms.

Instragram, Facebook, and Pinterest business accounts all offer online shopping solutions, including in-app purchases.

Any business that sells online, and promotes goods through social media, should be aware of how these platforms accept digital payments.

It is very common nowadays for brands to establish themselves on social media. Some have even started as influencers, gained massive followings, and ventured into their own product lines, all within the social media ecosystem.

The best way to accept payments on social media depends on the platform. Platforms like Instagram, Facebook and Pinterest all have their own unique social selling features, so check your account settings to learn how to get started accepting payments.

5. Peer-to-peer digital payments

PayPal, Venmo and Facebook Messenger are all examples of digital peer-to-peer payment solutions. This platform allows users to search for other users and carry out online payment transactions among themselves.

The peer-to-peer solution links payers' and payees' bank accounts to withdraw and deposit money, providing a way for users to make money transfers easily.

In many cases, mobile banking applications do not make it easy to transfer money between users, who do not share the same bank account. Peer-to-peer digital payments is the solution to this gap.

Do this When Your Emergency Fund Runs Out

Things to do When Your Emergency Fund Runs Out

 

     Millions of Americans are facing financial hard that are draining the emergency funds they had saved to get them through difficult times.

An emergency fund was created to be a financial lifesaver when the unexpected happens. But what happens when the unexpected doesn't subside? A lot of people were still in trouble, so what could they do now?

The Right Amount Available in an Emergency Fund

A simple requirement for an emergency fund is saving:

6 month fee when:

- You're self-employed.

- It's hard to find a job in your field.

- Only you make money in the family.

3 month fee when:

- You have a job where you can quickly find a job for the same income.

- You and your partner make approximately the same amount of money.

Revisit Your Budget when Your Emergency Fund is Exhausted

It's important to keep reviewing your budget when you're out of an emergency fund.

Your money now must cover current and future unforeseen expenses. Life doesn't stop when your emergency fund is empty. You still have car repairs, home repairs, and other unexpected expenses.

Make a "Crisis Budget". This is the minimum that you need to survive if you experience a decrease in income. It should cover what's referred to as the "Quad of Stability:" food, shelter, transportation, and medical protection.

Simplify Your Spending

You've probably already cut costs by shopping smarter for groceries, and cutting back on paid monthly services (cable, satellite radio, gym membership). Some of the additional cost-cutting steps include:

- Increase deductibles for insurance coverage to reduce premiums

- Negotiating new plans for mobile phone and internet services.

- Reducing your withholding taxes at work

Retirement Account

If you have an individual retirement account (IRA), or 401(k), tapping into those assets may be an option, but only as a last resort, but, as much as possible, not.

Depleting your retirement account can have significant negative consequences for your long-term financial health.

When you withdraw to your retirement fund early, you lose out on compound interest. Even if you pay back later, you may not have enough time to make up for lost growth.

Sell Things You don't want Anymore

If you're short on funds but you still need to keep the lights on and get food on the table,

Most experts suggest taking a look through your valuables.

There are websites such as Ebay and Poshmark that can turn the stale items in your home into extra cash.

Many financial advisors agree that selling your "stuff" is the best solid first step, and he recommends the NextDoor website as a smart way to trade real estate for cash.

Anything you can sell to get out of a tight budget is worth considering, whether that means getting rid of sports equipment you rarely use or selling your family car.

Take Side Hustle

Cutting your spending can help you stay afloat, but you shouldn't forget about the other side of the equation. Often times, "side jobs" or part-time gigs can keep you from sinking in at a time when you can't work at your regular job.

Home Equity Credit Line Access (HELOC)

If you don't already own a HELOC, and you're currently unemployed, it's unlikely that you'll be eligible to get one. But if you already own a HELOC, now is a good time to see how much you can borrow from it. (forbes.com)

Because HELOCs let you borrow against the equity you have in your home, they tend to come with lower fees and interest rates.

However, still, HELOC should be used "as a last resort. However, this type of loan can help provide a comfort level until the funds can be reimbursed.

The Importance of Financial Planning & How to Make It

Why is Financial Planning So Important? 

     Financial planning is one of the important things in managing finances, not only for business, but also for personal.

However, many people still ignore the importance of managing finances. Some even don't understand what financial planning is.

Financial planning is quite crucial, if you don't have financial planning, you will always feel that your income is not enough to meet your needs. To avoid that, it would be nice if you understood the importance of financial planning and how to make good financial planning.

What is Financial Planning?

Financial planning is the process of managing a person's/company's finances based on their financial goals. So that in its implementation, not only short-term goals need to be formulated, but also long-term ones.

Financial planning is an organizing activity that consists of formulating objectives, evaluating, and implementing, and also involves supervision or monitoring.

Each stage requires time dedication so that financial goals can be achieved to the fullest.

Apart from planning to implementation, you can adjust your financial goals for each time period.

Because financial planning is a long-term process, it must also be adaptive to living conditions. This is because financial planning for singles and people who already have children is different.

Why Financial Planning is Important?

Having a written financial plan gives you measurable goals to strive for. Because you can track your progress, you can reduce doubts or uncertainties about your decisions, and make adjustments to help overcome obstacles that could be holding you back. (schwab.com)

How to Make Financial Planning

Financial planning aims to avoid worry, protect assets and achieve long term goals.

You can direct the goals of financial planning according to your needs. In order to get precise financial planning, you can detail your short-term financial goals in detail first. Then how do you make financial planning?

Know your financial condition

The first way to make financial planning is to identify routine income and expenses so that you can make the right planning. Achieving your financial goals depends on how you recognize your own financial condition.

Create a monthly budget

Map with details what includes monthly expenses and the nominal amount. Do not minimize expenses, because it will produce inaccurate estimates.

Set aside money up front

The need for saving or investing must be balanced with the ability to set aside money at the beginning of the period, so that you are not tempted to spend it for consumption needs.

Minimize debt

Let alone only for consumptive purposes. Debt can cause a person trouble in the future. Therefore, don't get into debt, let alone just to follow your lifestyle.

Use apps to keep things concise

Don't think that financial planning will require sheets of paper like the old days. Now you can use an application on a smartphone to make it easier to record.

Budget for unexpected needs

An emergency fund is a special item where you will use it as protection when something untoward happens. Don't miss the emergency fund during budgeting. to anticipate sudden needs.

Evaluation and monitoring

After planning and carrying it out, don't forget to look back and assess it, whether there is anything that can be maximized and improved.

In addition, maintain your consistency so that financial goals can be achieved.

The Benefits of Financial Planning

Why should we make financial planning? Here are some benefits of making financial planning.

Budgeting

Budgeting in financial planning is a core activity, because the implementation and financial monitoring are carried out based on the results of the budgeting.

Making financial posts can help you not to overuse funds, to the point of cutting other budget funds.

Accurate monitoring of the financial condition

From financial planning, you can more accurately see where the money is going, so that your financial steps and decisions are more organized.

Helping investment planning

Investment funds in financial planning are cold money, meaning that the money does not go into any budget item. Therefore, the ability to identify cold money is very important if you want to get a return on your investment later.

Financial planning can also help filter what investments are suitable for prospective investors.

Someone who has many family members, and does not want to take on high investment risks, of course the choice of investment instruments is different from someone who has a high risk high return orientation.

Achieving financial goals more easily

At each phase of life, someone will have different financial priorities, so the level of difficulty will also be different. However, with financial planning, financial goals can be achieved more effectively.

Minimizing the possibility of debt

More focused financial decisions can suppress the desire to buy something beyond financial means.

By understanding exactly what the nominal amount of money is and how many items can be purchased using that money, one can avoid buying outside of his budget.

Realize asset purchase plans

In financial planning, some people might make asset ownership their long-term financial goal.

By implementing a good and correct financial plan, asset purchases can be made easier.

However, don't forget to consider long-term financial capacity and make precise calculations, so that these goals can be achieved within the specified timeframe, because how to make a financial plan also depends on how accurately a person assesses his financial capabilities.

Insurance planning

One of the financial instruments that are also important besides investment is insurance. With so many insurance options and costs, you should be able to set aside a small amount of money per month to protect yourself.

If you have objections to insurance funds, you can make projections of how much health costs or other costs will have to be incurred for not having insurance.

Everyone Can Get Financial Freedom, Here's How!

Financial Freedom is not Just About Retiring Early

      Financial freedom is a condition where you can fulfill your life needs without having to worry about financial conditions.(investopedia.com)

Many people associate financial freedom with early retirement. However, it's just one of the things you can get when you have financial freedom. Your other dreams include traveling to exotic places, having a nice house, being able to guarantee a decent life for your family. You can do all of that if you achieve financial freedom.

Financial freedom includes many things in life, not just about retirement. This is because financial freedom is related to values and goals that you want to achieve in life.

When you are financially independent, you can buy “time” to be freer to pursue your desires. So imagine, every time you wake up in the morning, you can say, “I can do whatever I want today.”

Financial freedom is a matter of managing and aligning money towards a life that makes you do what you want.

Everyone has the opportunity to achieve financial freedom, even for those of you who do not earn very high income.

How to have the Mindset to Achieving Financial Freedom?

Having the mindset to achieve financial freedom is not instantaneous. It's been a long marathon. The ultimate goal of financial freedom is not about having an abundance of wealth. It's more than showing off on a luxury holiday abroad, or buying a super-luxurious house.

The steps below are not about making you a billionaire, but about preparing you for the future you want, living without worrying about money. You don't have to be a billionaire to achieve financial freedom!

Build harmonious relationships with money

Building a good relationship with money is not much different from building a good relationship with your spouse. This is because both require serious and strong intention and commitment.

It will be difficult for you to feel relaxed--even happy--every time you think about money, if you are still reluctant to "communicate" with your spending habit.

Or, you often "lied" to yourself by saying you had money. Even though you are using an emergency fund to buy new clothes, while the old clothes are still piling up in the closet.

Building a harmonious relationship with money is easy and difficult. There are moments you "fight" with money. However, feeling happy for having enough money to do anything is one of the best feeling ever.

This is not much different from the tips for getting along with your partner, the first step to building a money-friendly relationship is asking yourself, what do you really want money to do?

Everyone of course has a different answer. There's no right or wrong answer. Because everyone has a different perspective on money.

The answer to the above question must come from your personal motivation.

Your relationship with money is a very personal thing. In order for you and money to always be intimate, you must put yourself first. Do not let you not think about what you really want to get from money, just because other people say.

Turn Your Wish into a Goal

When you have found answers about what you want from money, now is the time to turn your desires into goals.

Desire is something more abstract and tends not to be detailed. Meanwhile, goals have a clear and specific “end” state.

For example, you have a desire to buy a car, the goal of that desire is a year from now to have a car.

The difference between the two is simple, in goals, you only give a time gap. However, this has a big impact, because now you have goals and reminders to start moving towards those goals.

The more detailed your goal, the more eager you will be to achieve it.

If you're not used to having a goal, you can start with small things first.

If the goal of buying a car feels too big, you can have smaller goals, like buying the latest game console, or eating at a fancy restaurant with your partner.

The essence of having a goal is not how big it is, but how personal and close it is to what you want

Each person has different desires and dreams. So, there's no need to force yourself to have a specific goal just because other people want it too.

Arrange an Ambitious and Realistic Action Plan

Develop an action plan to achieve your goal. However, often there are "obstacles" that like to approach.

first obstacle,

Your action plan is too ambitious, even to the extent that it is impossible to achieve it.

The second obstacle

Your action plan is too "easy" and it actually makes you not enthusiastic to live it.

This is what makes you have to find a sweet spot between the two when preparing an action plan.

Of course, to know the sweet spot, you must first know your spending habits when managing your finances. Are you the type that likes to spend extravagantly at the start of payday? Or are you the type who tends to have stable spending for a month?

As a start to managing finances, you can try to do some of these steps:

1. Start saving 10-15% of your earnings.

2. Pay off your debts.

3. Understand your cash flow and apply the appropriate budget.

4. Investment (seriously, compound interest is very powerful!).

5. Regularly review the financial condition.

Have you Done the Financial Freedom Steps Above? Now what?

Make sure you are consistent in doing it. One way to be consistent is to make sure that the mindset you have is in accordance with the conditions of your current life.

To find out, you can do regular reviews. Look again at your relationship with money, your goals, and your action plans. Are you still comfortable doing it? Or, you feel you have to upgrade?

It is important for you to do this, because as time goes by, it is possible that the meaning of your financial freedom will change.

Currently, the meaning of financial freedom for you may be that you have enough funds to live your daily life as someone who is single. However, this can change when you are married and have children.

In fact, without changing your status, the meaning of your financial freedom can change.

The meaning of financial freedom for you has now grown, not only about having enough funds for your daily life, but also being able to take a vacation abroad once a year. This of course makes you have to draw up an action plan and a new way to manage finances.

The golden rule for being a financially successful person is living by the principle of spending less than you earn, and being patient.

Be patient first to consistently carry out the steps to build a "smart" mindset about money, and have fun later because you have achieved the financial freedom you dream of.