Friday, December 2, 2011

How to Invest at the Deficit Condition

Under any circumstances we should always try to keep investing in order that we can maintain and even enhance the lifestyle of today and tomorrow, also in order to achieve future financial goals.
In other words, investment is mandatory for those who do not want their purchasing power to be reduced in the future.

The problem that may occur are:
1. Do we have a sufficient portion of the money to invest? or,
2. What if in fact we do not have a portion of investment?, or the worst conditions,
3. We tend to run into deficit (lack of money)?

For the first and second problems, the wise solution is to perform the efficiency of expenditure. Do it with a minimum target of 10 percent of expenditures. Efficiency in question is rescheduling expenditure which is 'convenience'. Efficiency is done as much as possible for example of the use of cars every day changed to once a week. Use mass public transport or using a bicycle to work. Remember the investment objective is to delay the pleasure and comfort at this time (not eliminate it) but get a much bigger in the future.

We may still need to sacrifice more to cut the amount of expenditure to be cut more significantly, its implementation should be done with extra hard, and certainly with a sacrifice. Saving electricity consumption, air conditioner and/or heater, watch tv shows only at certain hours, etc..

We must change our mindset with only considers that our income by 90 per cent of the total funds received each month. Target expenditure amounted to a maximum of 90 percent so the remaining 10 percent is the value we have to pay as an appreciation for the benefit of our future and beloved family.

The third problem is the heaviest of the two previous cases, the answer is the same as in the case above, but also must be added to see the whether there is productive assets that can be optimized (viewed from the economical). In terms of seeing whether there is an asset that can be optimized financially then we must think clearly so that the action taken can truly meet our needs for investment.

Next after you make an evaluation and it still has assets that can be 'economically empowered' then do not waste too much time to do it, act immediately. If you have a room that is empty (or emptied) in your home, you can start a business. There are many options to create a home industry. There are many people who started the success from the kitchen or even the garage of their home!

In this case you start to do business in the real sector, the ability of management or business management is a primary key. So consider this issue carefully. This business goal is to not add to the deficit but reduce it so that the deficit eroded until exhausted.

The next question is from where the money I spend on capital, my condition is deficit. How is it possible? The first answer is Change your mindset! You are not alone. There are many people whose condition is far worse than you but still successful. Use of bank lending facilities, guaranteed your property, take a business loan with minimum interest count. The move will leverage your personal assets growth.

Once the business starts rolling then use the results of your business optimally by dividing some of the results to do business in the financial sector, for example buy stock, bond, mutual funds, or purchase of gold. Up to this point you've started to build an investment portfolio that is accumulated from your investments real and the financial sector. This means that you have started to diversify the business. Thus your business failure risk factor becomes less and this means the potential addition of your assets to grow.

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