Financial Safety Advice

The changing value of money by the effects of inflation and other economic indicators. However, even without the participation of these invaders, their value is still relative. And is that not all the same it makes use of capital or, put another way, what each person does with the money, the importance given and the decisions you make are the ones that end up defining the ‘price’ of money at all times. Everyone strives to maximize this value, but in the end only a few succeed. The rest struggle to get more and more of your money.

Make a 100% effective management of personal finance can be considered a utopia. Wrong is easier than it looks, especially when taking into account that almost everyone ends up making the same mistakes. And there are still differences to know where the pool and not step on it. The twelve most common pools in financial management are:

1. The interest goes away with time

Almost everyone decides to take control of your personal finances at a time of economic need or job uncertainty. That is, when expected to need money. At that point they are able to accumulate substantial savings and reduce costs. The problem is that when the situation stabilizes and the threat disappears again lose interest and fall into old habits. The key here lies in perseverance, a skill essential in the financial field. A good way to skip this ‘pool’ is created during those months of the financial surge, some kind of automatic savings or checking and recording of fixed costs. So at least there will always be a part of the finances under control. Also, always avoid falling into some old habits.

2. There is no reserve fund

Have some money to unforeseen events is simply a matter of logic. However, most do not have an emergency fund or reserve. To this we must add another large percentage in which this capital is not enough to address three months of life (theoretically ideal margin). The consequences of not having the money saved is more than expected, debt and even bankruptcy. Fortunately, the solution is equally simple: a little financial sacrifice and righteousness to create the emergency fund.

3. Only one person controls the financial management Read the rest of this entry →

It is difficult to think of the current financial transactions without the contribution of ICTs. The physical money to become the digital money represented in all its forms: credit cards, home banking, electronic transfers, etc.. These advances allow companies and users to be much more efficient and better utilize their time, to achieve immediate operations from the place they are in, transactions, have a real-time control of their investments, and many other facilities. “The financial world is already flat?

The proliferation of the use of ICTs involves a multiplication vulnerability to attacks. Exposure to computer security breaches, create the need to establish and follow strict guidelines and procedures to implement practices and technologies for Read the rest of this entry →

In previous notes of this series we address the prejudices that people have about how to invest. This time we will learn the myths people have about how to make money. That is, the way to become millionaires. trans myths and prejudices about money and investments.

In our country, in general, does not look very well to people who have money. Leaving aside the issue of insecurity is a widespread feeling that money is always a way to cloudy. Beyond this particular perception, it is interesting to know how to make money in the developed world.

Thomas Stanley and William Danko, authors of The Millionaire Next Door (“The millionaire next door”) studied for twenty years to the wealthy Americans. The findings of the studies of these two academics are truly amazing. The investigations were focused on finding out who were the rich in America, how they had managed to become rich and what were their habits of life.

The findings showed surprising facts of how ordinary people became rich in just one generation. Consumer habits and life of the new rich are not like we can expect. Read the rest of this entry →