How to plan for your financial success

When it comes to finances these are times of high level of uncertainty because you are never sure about your future. But if we start being hands on and do some financial planning , we could change this uncertain future to be a more expected one.

If you plan it will change your life because you become more in control of things in your life. You will eventually start enjoying something in your life. You'll start having a more balanced lifestyle, increase yourself value, have a much better attitude towards other people and you will find prosperity.

A number of people put in a lot of time and effort into their lives but they gain very little from their efforts. I'll tell you what a wise man once said "if you don't allow your ideas to work for you, you will work for someone elses idea". Sorry to sound harsh but what he meant is that a number of us will crush our own ideas before we even attempt them, but yet when your boss tells you new ideas to his company we gladly bust our efforts ensuring that his idea becomes a success. Understand this when you plan and apply self manangment, you will change the relationship between what you put into your life and the outcome of it.

Planning is writting down your own personal dream and turning it to a goal.
Claim back what you have lost have lost in your financial life. Become everything the you can be in all areas of your personal and financial life. Refuse to accept a negative kind of life and the way of thinking towards your finances.
Never make peace with a negative life. Because you if you make peace with that you will stop you from trying to find ways to escape this kind of condition. When you start planning you change your current financial situtaution and start reaching your goals.

Planning and Goals

The long term financial goal should be financial independence. You are never too young to start planning for your retirement. The sooner you start the sooner you can be able to afford an early retirement.

What does financial independence mean?
Financial independance means not depending on a job or family for your finances.
A financial independant person does not have to work in order to survive fanancialy it is because they have accumulated enough resourses that they no longer rely on any one else for money.

What happens if you plan?
There are quite a lot of benefits for a person that plans. A person that plans has a vivid picture and much clearer vision how they can get themselves where they are longing to go.
Their are outcomes are a happy family, plenty of money, good medical care, food, water, and a secure home. For people that don't plan the worst could come up like unhappy family, debts, no medical care, strugle for food and no education for your children.
As an individual you choose your outcomes in life. It is very important to descipline yourself in order to be successful.

How to Plan
A written plan cystalyses your vision and motivates you even more to work towards it. Everytime you review it you become motivated. Write you goals down. Then have a written plan of how are you intending to get to your written goals.

When planning you must have: short term, meduim term and long term goals written down and how each of the will be achieved.

Planning will encourage you to:

• think about your life
• your current condition
• become aware of your objectives and goals
• apply some financial discipline in your life
• look seriouly on your financial future

One of most important things you need not to leave out when it comes to planning  your way to financial success is to draw up a monthly budget for yourself. Esure you open a saving account for unforeseen challenges coming up so that it wont mess up your monthly budget.

Personal financial success depends on how desciplined an individual is.  Remember this success is for everyone who pays intrest in it. All the best in the future.

Consult with your financail advisor for major decision.

Disease called debts

Don't you just wish that money could rain form the sky now and then? At least twice a year right? That is only a wish and we all know that it will never happen. I know sometimes you wake up in the morning and wish all your money problems were all gone, you sometimes wish that you could just run or hide somewhere never to be found. I know it sucks, but that is what living on debts make you feel. I have done research on it and got information from experts in the field and with my experience and the knowledge I  have managed to write an article for you.

When it comes to solving your debts there are no real methods on dealing with it, but it does help a deal to have some guide lines to follow.

A wise man once said the rich get richer and the poor get poorer. This saying came from the fact that the rich people most of the times get rich because they have mastered the art of spending, they save more and spend less on the other hand the poor spend so much that they even spend the money that they don’t have.

Well sometimes there are situations that are so demanding that they drive you straight into debts. And sometimes, most cases young people get into debts because they want to live a leverage life, using credit cards, get designer clothes and expensive cars. Which all come back and bite us at the end of the month.

Save Up

We should shift our mentality of thinking that if we earn more it means we can afford more debts. When you are planning to get out of debts it’s a good idea to first check where you spend your money just to figure out how to have more of it around.

Now what to do you actually save up money  here is a list of 3 majors

Stay home for movies

If you going out on movies every weekend it always ends up being more costly then planned for because you end up buying few drink and maybe pizzas with your pals.

Get a roommate

If you are renting accommodation cut out on your rent. Your rent is the biggest fixed cost you have. Look back to the past year and add that up. Getting a flat or roommate will help cut your rent cost into half and lend you more money to put on your pocket. It may be a huge discomfort but it is necessary looking at the next few months.

Buy groceries instead of takeaways

I know the thought of cooking after a long day from work sounds crazy but takeaways prove to be much more of an expense then a saving. It does save sometime but it costs you a lot of money in return. Try to have groceries and reduce on buying takeaways.

Building a budget

The fact is nobody loves the idea of a household budget. But it is a necessity to obtain one, merely for getting out of debts and staying out of it.

If you are looking to solve your money problems lose the no budget mentality because this is how most of us end up in debts. Just like any other goal a budget is planned for and is written down in order to track the money streams. That way it is easy to see what to keep and what you leave out of your budget. What a budget does is to assist you to live within your means or affordability. How do I daft one?

Compare your spending with income monthly. From your observation create a budget. This is how you do it:

•        Write down the total amount of income then how much you spend every month. To calculate your spending just keep your slips on every purchase you made for that month.
•        Cut down on your spending such that they less then your income
•       Prioritize your income properly so that you are able to pay all your necessary expenses and debts.

To make it easy on you for future and un expected events

•      Make up your saving in order to have something to fall back on for unforeseen   circumstances.
•      Purchase big-ticket items without use of credit card

Help yourself get out of debt. Make your dreams come true and free yourself from it.

Do not take any of the above as financial advice ensure you consult with your adviser for further actions. All the best with it!

Forex trading experience

The FX market is the largest financial market in the world. Daily average turn over now exceeds 4 trillion US dollars. All the US equity markets combined do not make 3% of the volume traded on Forex Market.

What is Forex Trading?

Forex Trading involves transactions in which one may purchase an amount of a currency by paying a certain amount of another currency. The Forex market is global and it is a regulated financial market for the exchange of currencies. Across the globe various financial centers act as mediums for trading between a wide range of buyers and sellers 24 hours a day throughout the week(not weekends). One of the biggest reason why foreign exchange exists is to facilitate international trades and investments by giving businesses the power to convert one currency into another. It is this financial institute that determines the value of a country's currency relative to another.   

Basic Concept

By foreign exchange it means selling currency and buying another simultaneously. Currencies are traded in pairs so in order to profit from an exchange move, you need to buy the currency that you expect will rise from a current market price to a relatively bigger one and sell the other. 

For example if you believe a US dollar(USD) was going appreciate against the Japanese Yen (JPY) you would then buy USD/JPY or in other words you would buy USD and sell JPY.

Why Trade in Forex?

There is no instrument that makes the same amount or even close to the forex market. It is the largest financial market in the world. You can trade at any hour of the day because unlike other instruments forex trading is a 24 hour trading instrument. The forex trading day will always start at Wellington and the last to open is London then it will remain open throughout the weekdays(not weekends). 

Who Trades in the Forex Market?

Foreign Traders can differ and are separated into two distinct groups which are hedger and speculators.

Hedger: are governments, companies(exporters and importers)  and some investors have foreign exposure. Difficult moments(or less business) between their local or even domestic currency also the foreign currency of the group they are either doing business with(for exchange of goods and services )  

 or investing in will affect their profits. This is the center of all foreign exchange trading, however it only makes up approximately 5% of the actual market.

Speculators: These include banks, funds, corporations and individuals create artificial rate exposure in order to gain from the variations and movements in the price.

Buy and Sell

There are always 2 numbers given after the currency pair, the first always has a smaller numerical value than second. Example below illustrates (GBP/USD 1.2550 1.2553). The first number is known as the "Sell" and second number as "Buy"

A pip

This is calculated as follows 1.2867-1.2847 = 0.0020, therefore 1 pip = 0.0001 on a 100 000USD position 1 pip is 10 USD. In a crude oil position  where the market rate 76.12 one pip is 0.01. We can therefore conclude that a pip value is equal to the decimal points shown on the rate. The value of one pip crude oil for a 100 position can be calculated : 100*0.01=1USD

Orders

When you are looking to enter into a trade at a current condition, you simply execute buy or sell market order. Often a trader will want to either limit the loss of the positions currently held(in which case he is able to execute the stop order) or may want to enter a trade that is more attractive than the current market(in which he can execute the limit order).

Stop order can be placed on an existing open position to limit the possible loss on the open trade. For example a trader is long 100 000 USD/JPY at 1.2830, he obviously expecting the USD/JPY rate will appriciate to where he will be able to make satisfactory profit on the trade.

In other instances a trader may wish to limit the loss that he is willing to take on a trade. If the maximum loss a trader is willing to take is 160 USD and he knows every pip is worth  10 USD in this case(calculate by 100 000*0.001 = 10 USD) 

NB: During times of very high volatility it can be difficult or impossible to execute orders.

For a good experience on foreign exchange trading ensure your broker is a registered financial institution.

free eBook available read and learn

Donnot consider any of the above as financial advice consult with your financial adviser before making decisions. Enjoy your jouney on the forex market with one of the most trusted financial instution.
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