20 Jun 2012

Personal Financial planning.

 
      Financial planning is a holistic process for reaching  financial goals of an individual.It can be done by proper management of personal finance.Personal finance include all type of personal savings, investments and loans.
     Normally,people start to save with bank accounts,chit funds or post office schemes.Investments means putting money in shares,mutual funds,real estate or commodities such as gold.Financial goals are very important in financial planning.These are life needs such as buying a home or property, savings for children’s education and marriage, wealth creation , retirement planning etc.
      Professional Financial planning process consists of six major steps.
1.Collecting client's financial data about income,expense and netwoth .
2.Setting financial goals to fulfill ambitions.
3.Analysing current financial condition.
4.Creation of strategy to meet life goals.
5.Recommendations for transforming personal financial condition to better levels.
6.Periodical Review of the plan to assess the progress .
  Financial planning process help us to analyse personal assets, liabilities and networth.  Some people may be in a debt trap due to overspending or lack of financial discipline.  Others may suffer due to concentration in too many financial products.No agent or broker can provide a holistic solution.Financial planning is the solution to attain life goals.Finding right financial scheme or product is not an easy task for a common man.
   Financial planning fix priorities for life.It helps to avoid unnecessary expenditures.we can fix different time horizon for short term,medium term or long term goals.Thus,financial planning build the foundation for reaching financial freedom.

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11 Jun 2012

FF series 3: Make money from Options


 
People  get profits from real estate,gold or shares when prices are rising.But, i like to introduce you an excellent avenue for making money even if prices are falling.Make profit in any direction of the market, whether it is upward or downward.Online trading in option contracts provide us the chance of profit  in positive and negative market situations.
   Options contracts are traded on stock exchanges.but,we cannot buy options like buying a share.It is a bundle.It has lot size,strike price and contract expiry date.Another thing is that each option will expire on month end.In Indian markets,Options expiry date is the last Thursday of each month.Strike price denotes the expectation level of a trader.Different strike levels are available for trading.Normally,a professional trader choose the nearby strike price of current market levels.
  Options may be based on market index or stocks.It is a derived product.Two types of options available for trading are a) Call options and b) Put Options. Call options help us to make profit in positive or rising market.Put options give us profit in market crashes or negative situations.
Why professional traders choose options trading?  
 1.Minimum capital requirement as margin money.
2.The percentage of potential return is larger than shares, gold , real estate and futures contracts.
3.Daily fluctuations normally varies from 10 to 100 percent.
4.Well suited for Day trading.
5.Can trade in indices such as Nifty or S&P 500.
Demerits
1.Value of Options become Zero when reaching expiry date.
2. Options are not good for investment purpose due to time decay nature.
3. Trading in options is like a game.Becoming a smart player is the most important thing.Even though,profit potential of options are amazing if we compare it with  other avenues.


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5 Jun 2012

FF Series 2 : Make money with Affiliate program

   Affiliate programmes on internet are simple and easy for making money.Just select a branded name and join their affiliate program.Normally,it doesnt require any investment from your side.The only one thing required is register to be an affiliate with the site you like.Following sites are poular with their affiliate programs.

Amazon.com
    Amazon is a leading online shop for electronics,books,ornaments and MP3 downloads.You can monetize your website or blog with amazon web store,widgets,links,banners and product advertising.Amazon associates can earn referral fee of 4 - 25% for the items sold.

Ebay.com
    Ebay.com is another leading online shop with 95 million active users.Affiliates will be paid for the each click that is directed to an ebay site.

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3 Jun 2012

Financial freedom series 1 :Make Money Online from writting.

Online writting is an art.If you are having the art and skill, you can publish articles or stories on internet.Now, people depend search engines such as Google,Yahoo,Bing etc for Reviews for buying a product or service.It helps them to get knowledge about specific areas.You can start a blog and earn income from advertising, if you have patience for long term gain.Otherwise,start with popular freelance writting websites.I think,following sites are already doing great job in this field.

a.  Hubpages.
     Over 12.5 lac articles published in Hubpages till now.You can write about any topic and earn as per the popularity of the Post.They will share the advertisement income of your page.Hubpages are conducting contests also.For more details,visit:  http://hubpages.com/

b. Squidoo.
     This site is another free platform for writers.You can share story,opinion or interest with readers at
      http://www.squidoo.com/

c. Ehow
   How to articles about various topics are the highlights of  http://www.ehow.com/

d. Yahoo!Contributor network
     This popular site allows people to write and share photos or videos for various yahoo sites.Visit http://contributor.yahoo.com/signup/ for details.


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