Financial Safety Advice

Professionalism and discretion are some of the conditions that must be who advise their personal finances.

If you feel that the fiscal deficit, the level of investment in Colombia or the decision of the Central Bank to raise interest rates does not affect your pocket, you need a financial advisor. Can not forget that individuals, like companies, are engaged in an economic system whose changes can affect your finances. That’s why it’s worth to devote time and resources to carry out a proper financial planning.

Remember, people are always making financial decisions (which sometimes can be quite complex) and approach a bank, buying a new home, saving for retirement or education of children, but only in very few cases planned to find the most efficient way to manage our money.

In Colombia, just consult a financial advisor in other countries is a registered and regulated profession. However, this has begun to change on behalf of pension funds and the Internet. The growing interest in the behavior of financial markets and their impact on personal finances has generated an increased need for professional preparation of financial advice as some institutions are making great efforts. But what is a financial advisor? How to choose and recognize a good financial adviser?

Bypassing the natural euphoria of last week of December and the new year, life begins to return to normal. Gradually we all go back to our daily activities, but with the feeling that things will be better this year, as often happens on these dates. The problem is when time passes and we realize that we did nothing to ensure that things improve.

One aspect where we most hope is in improving our financial situation. We want the future bring more income or some kind of solution to our financial problems, without thinking that in reality it is something that will get as a result of ordering our personal finances. Therefore, I think we’d better use of our energy defining some concrete actions for 2011, instead of waiting for the improvements we fall from the sky. We will not see immediate results, but the consequences are likely to be better than we might expect.

To follow the pattern of New Year’s resolutions, usually into fashion at this time, I share with you some strategies that could help them take those first steps:

1. Take control of your finances. Do not let the target run them. Sit down, review your situation and devote a couple of hours a month to see how you evolve.

2. Prepare your financial plan. It’s easy and useful. But this is revealing and inspiring. Plan your personal budget and Riget for him.

3. Set clear and specific financial goals. Want to save 10% of your monthly income? Want to put S/.100 month in a savings account? Want to buy a car? No matter the lens or the size of it, what matters is to have clear and in writing. That will be a constant motivator and help you focus and realize your efforts. Read the rest of this entry →

Among the most important advice that personal finance experts offer at this time are care how you spend, avoid impulse purchases and buy only based on a budget, “being a responsible consumer” call on the Federal Consumer Protection Agency (Profeco).

And beyond the planning and budgeting advice, there are other actions you can take to look after their finances and work not only on this season, but year-round.

The National Commission for the Protection and Defense of Financial Service Users (Condusef) should be very careful in terms of financial decisions taken to avoid becoming a victim of fraud or theft or even to take on debt that will cause the painful costs January.

“For security, for the care of our personal finances should not carry any credit cards you have, and avoid impulse purchases, as well as to avoid losing all plastic in case of loss or theft of your wallet” said Alejandro Velasco Capitto, legal director of Skandia, the operator of funds. Read the rest of this entry →

The secret about using credit cards is in the planning of income.

People use the cards without considering whether they can pay their debts on time and ignoring the interests in arrears of debts. This problem can be solved with education on the practical handling of personal finances, which should not be aimed at winning more money but better management.

The planning allows us to prioritize spending and postpone wishful thinking that usually spend the money. When prioritizing expenditures should be considered necessary on good opportunities, at least not believe have a super power that a credit card at a time that will provide potential benefits.

Studies by experts believe that the less educated older people have made unnecessary expenses, and noted that one of the most persistent vices of personal finance is to spend money you do not have at the moment.

People dissipate advance savings fund, the bonus, salary increase or profit sharing, hoping to pay off their debt just have that money.

This situation is repeated over and over again and you have to do something about it if you want a real change in our personal finances. Read the rest of this entry →

From the time of Archimedes knew that if he has a foothold, with a lever can move the world.

And this has been understood the most important financiers in the world. With a small capital or any idea that implemented, could move large fortunes and businesses.

This point of support must be obtained or calculated, if you succeed, your life is maximized.

This is called financial leverage, which is a rational debt coupled with a personal investment, or a productive idea. If the investment is successful, the project cost will be only a small initial investment, as the utilities, will pay both the debt and produce initial and ganancias. Estes is the secret of the big corporations, big business and prosperity. Clearly not as simple as it seems.

There are other types of leverage, such as operating leverage, that instead of managing money, refers to machinery or equipment to produce and sell more. Includes the use of better technology.

For a company that has the potential to produce sales and Read the rest of this entry →