Retirement Financial Planning

Retirement is a stage that is quite vulnerable to the financial condition of workers. At retirement, workers' salaries are usually received in each month will not come again. A worker to be able to enjoy retirement with a good, good financial planning is necessary. Work is a good time to prepare finance that will be used at the time of retirement. How do financial planning?.

Our parents, preparing us to be able to live a life by educating the moral, mental training and provide education to gain knowledge. Parents give advice that is very useful for life and also education that can be financed by them. Likewise we, have a responsibility to ourselves and also to the family of a loved one, to be able to finance the retirement life. To prepare the family financial planning increasingly considered important to meet the financial needs of retirement such as: finance the education of minors at the time of retirement, or as a precaution so that our finances are not dependent on the children.

If you look after the human life cycle then the span of 1-6 years is childhood. Ages 7-18 are the school and for those who are fortunate to continue education in college to get a diploma, undergraduate or postgraduate studies. Experienced a long period is the age of 22 to 55 years, the work and earn income and age are common for workers and retired people, a period of 55 years to 75 years. One's retirement can last up to 20 years or even more.

From the above mentioned period which concerns us in making financial planning for retirement is a time to work from age 22 to 55 years or 33 years of work and retirement from age 55 until age 75 years or 20 years of retirement. For some people a long life blessed with 80 years of age can achieve even more, meaning retirement could reach 25 years or more. Have we thought about how to finance throughout the life of 20-25 years after retirement?.

Remember that the period is a period of productive work, in this period the family finances to be managed properly. Consume all the income is the best way to destroy financial comfort in retirement. The literature suggests the activities of saving and investing is the best way to prepare for retirement finances. What is the amount of income that must be saved and consumed so that we can obtain the financial security of our retirement?.

Amount of income that must be saved or invested heavily dependent on the needs of retirement to come. Financial planners typically recommend 20-30% of family income is not consumed in the active period, these funds are allocated to savings and investment. What is the ideal amount of funds saved and how the amount of funds should be invested?.

Savings and investment scale needed by a person is very diverse levels of income and dependent lifestyle is concerned. Keep in mind that saving is not a good means to prepare for retirement funds. Savings are advised only to meet the needs of an emergency fund (emergency fund). A common scale recommended is 6 months to 12 months the amount of monthly consumption. Individuals who are more conservative may need even greater savings to fulfill a sense of security.

Investment plan to support financial planning is more complex than retirement savings plan. Important element to consider is the amount of funds invested and the amount of investment returns. Assessment and selection of investment vehicles will not be discussed in detail in this paper, considering the many that need to be explained. What is the scale of investment required by a person to make ends meet future pension.

When working in the reputable company that delivers high salaries and are still actively employed or still long enough to retire you can learn from your seniors. You can learn to enjoy a successful senior retirement well. On another occasion also learn from the seniors who experience retirement with great difficulty. In general, workers in reputable companies obtain a lot of convenience or well off and forgotten during his official Retirement Financial Planning. Or maybe the workers have been trying to prepare for retirement but who are not careful calculations lead to planning to fail and again suffered a bitter retirement. Do your retirement at stake, immediately make a financial plan with a good pension, if necessary, ask for professional planning financial planner to make planning your retirement finances. Remember, retirement could be 10 (ten years), 20 years or even longer than 20 years, so beware!

When a good time to begin the implementation of financial preparation for your retirement?. If you currently have ten years before retirement, then you have enough financial preparation for retirement too late to do but if delayed much longer then the future retirement financial difficulties will become more apparent. The best time is probably five years ago or 10 years ago or even maybe more than 10 years ago. The principle of financial preparation for retirement is the sooner then better. Be careful not to fall asleep with the current favorable conditions, see the seniors who do not plan adequately finance retirement.( Let's To The Bank )

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Insurance Education

Every parent always expect their children a good education as the provision of life in the future. Some of the factors that led to the need for Insurance Education for our children, the first is the expectation of parents to send children in good education and at the highest level of education. For the second is the cost of a good education to higher education requires a substantial cost. The third cause is the uncertainty of income that will come, for the fourth and most important is the uncertainty of the age of the parents who pay for school children. Many instances the parents who do not have insurance cause their children are not getting a proper education so that cost can not follow your favorite school education or superior, or even until children drop out of school, may not happen to us.

Education Insurance Benefits

Many parents do not realize the benefits of Insurance Education, or are reluctant to buy an insurance policy to protect the education of their children out of trouble in the future education expenses. Reluctance due to ignorance of the benefits and mechanisms of insurance or employment occurs not comfortable dealing with insurance agents who are very aggressive and over-rated promises. Other causes can include news or information from friends who have difficulties to make a claim. Education is very useful insurance to protect themselves from the impact of undesirable events and the event will provide a bad influence on our children education.

One of the better ways of buying insurance is via insurance broker or financial planner who also has a licensed Insurance Broker. The role of insurance brokers and insurance coverage is to help buyers sided with the insurance brokers to act as representatives of insurance companies. In contrast to insurance brokers, insurance agents who sell insurance are professional and act as representative or agent of  insurance company, while insurance brokers act as representative of the buyer's policy, the insurance broker also may be requested assistance in handling claims.

Insurance Education for the benefit if designed in accordance with the needs of the participants of insurance, is offered by insurance companies in general are standard products, but usually the amount of coverage and premium payment can be negotiated with the insurance company through its agents, as well as the value of premiums . In order to meet your financial needs, create a policy with coverage sufficient to finance the needs of your children. In terms of premium payment, choose a payment method in accordance with the pattern of your income, so as not burdensome on the due date of payment of premiums. Suppose you are an employee who gets a monthly salary payment of insurance premiums can be selected with monthly payments and directly deducted from your bank account, so you do not have the hassles of depositing the premiums. If you are someone who often get extra income each semester or annually (semi-annual bonuses and final year-end bonuses) and want to use in part or in full for the payment of insurance premium payments of insurance premiums can be designed semi-annual or annual basis.

What is the value of Insurance Coverage Needed?

Calculate the insurance coverage required is very important, errors in calculating the insurance coverage would lead to non-fulfillment of the financing for the education of our children. What is the ideal coverage? This is a question that has a relatively different answers from one person to another. To facilitate the calculation of the required insurance values ?, we must calculate the cost requirements of education at current value, the cost of education for junior high, high school and university, in the calculation of the cost of educational inputs of all elements of cost, not only school fees, including the estimated cost of living and health expenses in the future. Where has obtained a number, then that number then compute by using the future value or Future Value 5 years - 10 years or even 15 years from now how much that cost will be, do not forget to input the inflation factor in the calculations, so we do not experienced miscalculation.

If the known numerical value of insurance is required, then the stage of determining  affordable premiums that can be paid to meet the needs of those costs. Determine also the premium payment pattern so as not to incriminate you on the due date of payment of premiums. The calculation of the value of insurance you can count yourself especially if your accounting education or economic background. But when experiencing difficulty or to further convince the calculation it is advisable to contact your Certified Financial Planner for advice instead of just counting assumption number but also designing insurance that matches your needs.( Let's To The Bank )

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Resolving A Bad Credit Card Debt

Living with a pile of debt is making the problem more complicated. Of the debt of home, car, credit cards and unsecured loans will make your life become increasingly severe and alarming. Beginning of each month you have a headache with so many bills to your installment. So before you decide to take the credit, the better your own review first. Because once you decide to owe it means you are ready to commit and have a responsibility to pay it off. If it does not already exist in your mind, it's better not to owe if you do not want to bother to pay it off.

Recent years is booming so easily get a credit cards. With the lure of free annual fee, the ease of getting Cashback, get shopping vouchers and the like making people swayed. Not a few people forget to balance between spending and revenues so that eventually could not pay the credit card bill. What happens if your credit card is bad? terror over the phone by a billing clerk every day you will face. Not infrequently, also you will be visited by debt collectors power (debt collector) to collect a force to you and your family. Surely you do not want that to happen to you. If you intend to settle bills your credit card debt, it helps you follow these tips:

1. If you're dealing with debt collectors, say so.

that you will finish your debts directly to the credit card issuing bank. Do not be affected by debt collectors stating that your credit card debt has been transferred to the debt collection company or a shelter where debt collectors negotiate with debt collectors regarding your debts. The truth is that bad credit card debt is not transferred let alone traded by banks. Third-party billing company is bound to a cooperation agreement with the bank in terms of billing services only. In fact very rarely credit card debt is sold or transferred to third parties.

2. Avoid hand money to debt collectors.

As much as possible avoid hand over the money or goods that are intended as a deposit to pay credit card bills. We recommend that you pay your bill directly to the bank. This is to avoid the possibility of your deposit embezzlement by officers debt collectors. It is important to note, the percentage of commission earned from the bank's debt collectors are calculated based on the existing deposit funds into your credit card bills at the bank, rather than the amount of money that you submit to the official debt collectors. If you are forced to hand over cash payments to officers debt collectors, ask for proof of a valid receipt of payment, so it can be used as proof of payment. Do not forget to monitor your deposit receipts to the bill to your bank account.

3. Contact the bank and set a time to meet.

Try talking to your bank rather than a permanent employee or officer of outsourcing contracts. Let them know you want to settle your credit card debt. Your desire will pay off in respond either by the bank because these good intentions.

A. Negotiating with banks related to your credit card debt.

Ask your credit card debt in the "Restructuring". Restructuring means that the structure of credit, interest rate and payment mode you reset. Your credit card is closed, then the balance of your credit card debt is converted into a loan with a fixed installment (installment already including interest) within a specified period. This method is more reasonable, for the following debt principal interest is calculated on the front and no longer result in the emergence of interest on past due bills (compound interest) as on credit card bills. Before approving the amount of debt that will be on the restructuring, have the first details of your debts. Usually the details of the debt consists of: expenditures that have been done, the credit card interest, late fees, annual membership fee (annual fee) as well as other administrative costs such as stamp duty and other costs.

B. Need Negotiate, to:

Request removal of components of the bill that comes from annual membership dues fee (annual fee) and late penalties, including administrative costs, because this component is relatively more easily removed from the bank accounts rather than interest component.

Ask for discount / discount on the interest charged to your credit card bills. These discounts vary, depending on the agreement between both parties. However, the range between 10-25% (even more, if you can negotiate well) of interest that should be borne.

As for the total principal debt from the purchase, usually the bank will not give you a discount, yet you also have to enjoy spending it, so it is fitting you pay for it.

Then set the time period for credit card debt menyicil. The range between 1 year to 3 years.

4. Focus on debt settlement.

During the restructuring period, you must discipline yourself to pay the mortgage on time in accordance with the provisions, and also discipline yourself not to use another credit card in advance that you may still have. Mute your consumerist desires. Mengunung debt, like it or not it is the result of your own behavior. You should dare to bear the consequences, like the proverbial "dare do dare to take responsibility."

If you are forced to deal with debt collectors, and moreover threatened not treated appropriately, immediately report it to authorities and cast a strong protest to the card issuing bank as well as other relevant parties such as the Central Bank as the supervisory activities of all banks operating. Letter of complaint can be addressed to the division of bank supervision at the Central Bank.

The most important is that you have good intentions to be responsible for completing debt and do not avoid it.( Let's To The Bank )

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Investing In Mutual Funds

Different with banking products, which will record all the public funds in financial accounting, funds Investing In Mutual Funds accounted for separately from the accounting firm of investment managers and banks. Why is that?

This happens because the fund is a separate legal form. The establishment conducted by investment managers and banks based on notarial deed and shall have a bookkeeping and the number of taxpayers subject.

In the event of bankruptcy, you will receive back the funds deposited in the banks of the payment by the Deposit Insurance Corporation up to a certain value or liquidation of assets.

While the mutual fund, if the investment manager or bank is declared bankrupt, mutual fund investors will receive back their investment funds in accordance with the net asset value / last unit.

Alternatively, the management or administration of mutual funds is transferred to the investment manager or other bank approved by the Capital Market Supervisory Agency and Financial Institution.

Another difference, at the time you save in the bank, the fund will be managed by a bank to bank can pay the promised interest rate. Management of the funds was submitted to the policy of each bank.

When a bank incurs losses in managing these funds, you will not participate at a disadvantage, and still earn interest as promised. Similarly, if the banks get a huge profit, you will not get anything other than the promised interest rate.

The condition is different when you Investing In Mutual Funds. You as the owner of the funds "can help determine" how you managed investment funds. How, by the choice of mutual funds in accordance with your wishes. Is that money market mutual funds, fixed income, mixed, stocks, or protected.

Each of these types of mutual funds has the characteristics of the results and risks vary.

Furthermore, if the investments manager is able to manage your funds properly in accordance with the investment policies contained in the prospectus and produce high yield, the result is yours.

However, if you find that mutual funds suffered losses, you also have to bear the risk of such losses. ( Let's To The Bank )

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Mutual Funds Or Banking Products

Account savings and deposits in banks of course you often hear. In fact, you also already have a savings account and deposit at the bank.

However, have you ever heard about Mutual Funds?. You often get information that investing in mutual funds can provide higher returns than Banking Products. Then, did you ever think to diversify the allocation of funds to mutual funds?.

Here is a brief article about the difference between Mutual Funds, Savings and time deposits.

Conventional Mutual Funds consisting of money market mutual funds, fixed income, mixed, and stocks, similar to savings products. Investors can place and draw funds at any time. While the protected funds glance similar to the deposits.

Then, what is the difference between mutual funds and banking products?

Basically, savings and mutual funds categorized based on several things.

First, the entire banking products issued by banks in the daily operations under the supervision of the Central Bank. You put the investment by depositing the funds, then given a certificate of deposit or a book / card as proof of ownership savings.

Meanwhile, the mutual fund is an investment of capital market products issued by an investment manager with the bank. This product is under the supervision of the Capital Market Supervisory Agency and Financial Institution.

You invest in mutual funds by buying mutual funds. Next, you will require a letter of confirmation of ownership of investment units and reports are provided monthly balances.

Both are related to the benefits. When you save money on banking products, the advantages referred to as interest and the amount determined at the beginning at the time of placement of funds carried out and are uncertain.

While investment returns of mutual funds is more commonly referred to as the return or yield. Although mutual funds have the potential for higher returns than the banking product, return it to fluctuate following the development of per-unit net asset value of investments.

When investing in mutual funds, you can obtain the investment results in two ways, namely the resale of units or mutual fund dividends.

To this end, the impression that investing in mutual funds riskier than banking products. It is true, as the adage that you often hear, that is high risk, high return (to obtain high yields, risks taken should also be higher).

However, it does not mean mutual funds is an investments that should be avoided. ( Let's To The Bank )

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Easy To Get Credit From Banks

Easy To Get Credit From Banks, Creditors and lenders use your credit history as a material consideration for making decisions, whether they will provide credit card or extend a loan or not. However, if you do not have a credit history, no record of how you can manage debt. As a result, many creditors and lenders are not willing to lend money.

Well, if you do not already have credit for this, here are six easy steps to get started:

1. Find a credit card with guarantee.

Credit card guarantee is like a regular credit card that does not use collateral. Only, you are required to deposit a sum of money as a guarantee to creditors that you will pay the debt. Your credit limit is generally equal to a large percentage of certain of the funds or deposit.

Credit cards is not debit cards with guaranteed , why ?.

First, banks do not report the use of debit cards to credit bureaus, because a debit card instead of credit extension. More debit cards as a convenient way to access funds in a bank savings.

Second, creditors usually report guarantee credit card activity to credit bureaus. Your purchase is deducted from the deposit fund. Every time you buy something using the card, means you borrow money to credit card companies and is responsible to pay it off. So your responsibilities in the payments affect your credit score.

2. Use your credit card according to your ability to pay.

Build credit means showing your ability to pay back the borrowed funds consistently. Your goal is to prove to creditors that you can manage debt responsibly. Therefore, do not buy things that you can not afford paying off.

Use a credit card at least once a month for as small as a simple dinner, gasoline, and monthly needs. For if not used, you will not prove anything. Try not to spend more than 50 percent of your credit limit.

3. Pay on time every month.

Another important thing to build and maintain a good credit score is to pay all the bills and debt obligations on time every month. Even just one late payment can significantly damage your credit score.

4. Just one credit card.

There is no point in applying for multiple credit cards, if you have not been able to prove able to manage it responsibly. Instead, use the energy to show that you are able to maintain a balance and pay bills on time.

5. Check your progress by checking the reports and credit scores.

After six months of on time paying credit card, check your status by looking at your credit report and score. Give special attention to what's in your credit report and the positive or negative factors that are listed, so you know what to do next.

6. After one year, apply for an unsecured credit card.

Twelve months of timely payments should be enough to show the credit card company that you are responsible in managing debt. Now it's time to apply for an unsecured credit card. An unsecured card frees you from the obligation of deposit guarantees. In addition, the credit limit may also be higher and offer various benefits such as reward points. ( Let's To The Bank )

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I Want To Save

"I Want To Save, but I need a lot. My money runs out and hold each month. Moreover, the prices keep rising needs .. ". The phrase is sometimes familiar to you or maybe you want to be able to save money, but in practice, it is hard to do. Whether you are a person like that? Always running out of money at the end of the month so it can not save? Do not be discouraged. Everyone was almost certainly experienced it. Saving regularly, often done for various purposes. By setting aside money on a regular basis, then the money collected can be very useful.

The following are easily saving tips that can help you save money with better:

1. Pay Your Self First.

If you always shop first and did not have time to save money, why now you do not reverse the process?. Begin by setting aside 1 / 3 of your salary for savings before you pay for other needs. If you do it regularly and discipline, then after a year, you will already have a store in large quantities.

2. As the Postal Savings Make Expenditures.

Enter the postal savings into the routine expenditure items each month. Think of saving as your regular expenses, equal to pay the mortgage debt or other household expenses, like electricity bills, PAM, food, transportation and others.

3. Do not dismiss a dime. Never pay with coins.

Shop only with paper money only. If you can return the coin, insert the coins into a piggy bank. Do not open until filled, if it is insert full into your account at the Bank.

4. Raise Deposit Savings, Income Up at a Time.

Every time you earn more money as an annual bonus then set aside in advance to increase your savings. Likewise if your salary rises will also increase the number of regular deposits your savings.

5. Have a Special Savings Account.

A family should have a special account that is used for fund posts  family expenses separate from personal accounts. While the special savings account should also be made, separately to the accumulation of funds collected for financial purposes to be achieved, not used for other expenses. ( Let's To The Bank )

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Using Credit Cards Wisely

To obtain current credit cards is quite easy. Currently, many credit card sales person from various banks in shopping malls promotion to find new customers. Original credit card used appropriately will greatly help us. BUT ... if used haphazardly will certainly make us entangled in the bill that day more akin to swell the amount.

In this article, I will invite you to learn how to use credit cards properly and free from the shackles of the bill. Here goes some way that can save us from the bondage of credit cards.

Do not use credit as a loan.

Credit cards have two opposite sides, which side is on your side very depend from the way you use it. If you forget to pay bills, then you will 'enjoy' high-interest loans. Even if you pay the minimum value required by the credit card issuing bank, then your bill will be paid off in the time period long enough and with very high interest rates (above 30% per year, depending on the interest rate set by the issuing bank). On the other hand, if you always pay your bills on time, credit cards are a safe and convenient instrument to use to shop or pay your various needs.

Use credit cards instead of cash, rather than as loans with high interest.

Spend according to your ability to pay, Do not use credit cards as an instrument to finance a lifestyle that does not match your bag. If you can not pay all your bills each month, meaning you have to use this facility excessively.

Here are some things that can be used as a benchmark for credit card usage in accordance with your financial condition.

1. You have the same amount of money you spend.

Make sure you pay all your bills when you receive the invoice.

2. You can not pay the bills, but you must use your credit card.

If you can not afford to pay credit card bills, but at the same time you encounter a case of emergency, immediately arrange a financial plan so that you can pay off those bills.

3. Do not use credit cards for  shopping, that did not exist when the bill you receive. One way to reduce the use of credit cards is to not use it when your monthly shopping, eating in restaurants, or go have fun.

4. Create a financial plan.

Always write down your expenses.
Make use of your credit card limit in accordance with your financial plan.
Do not exceed the spending plan that has you stacking.
If you are not disciplined with the budget you set up, stay on your credit card at home.
Use only in times of emergency.

5. Pay all your bills each month.

One rule that must be obeyed by every user's credit card:

Pay all your bills every month.
If you can not be forced to pay the whole bill, pay most of it.
If you can only pay the minimum limit, because you will be heavily in debt with high interest.
Stop using credit cards until all your bills paid off.

6. Pay on time.

Always pay your bills on time.
Payments through the payment will be subject to penalty and interest is high.

7. Only have one, or two credit cards.

You just need to have a credit card, have two credit cards, if your primary card is not accepted in certain places.
You can monitor its use, if you only have one or two cards.
Do not use a single card to cover up another card bills.

8. As much as possible do not use a cash advance facility.

If you need money right away, do not take the credit card, use your savings.
Cash advance facility provided by the credit card issuer will only overload your bill with a super high interest rates.

9. Keep proof of your transaction.

Always keep receipts of transactions using your credit card until you receive your monthly bill.
Match the numbers on sheets of invoice with a receipt transaction that you save.
Immediately report discrepancies on invoice number, if you find it odd.

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Family Financial Planning

The most important stage in family financial planning is when you start making plans. If we are wrong to plan, might not family financial planning objectives will be achieved. There are basic things before starting a family financial plan. Some of them, what should you prepare?, How to recognize the needs of families? , And of course there are still many things that influence in family financial planning.

If at this moment you are just starting a family financial plan, honesty and good communication with your partner is essential and most fundamental thing. "Discuss openly what you planned and there are not hidden, set a goal of financial planning, identification of revenue and expenditure plans and the evaluation of the plan.

At the stage of setting family financial planning goals, must be spelled out in detail the intended use of money. For example, your goal is to finance the education of children, own a home, cars, vacations, and so on. In setting financial goals, you should be able to distinguish between needs and wants. After setting goals, there needs to be disciplined so that financial goals are achieved.

Setting the amount of income and expenditure. In other words, you need to know the cash inflows and outflows. Are classified as cash inflows is salary, allowances, bonuses and other income from outside employment. Remember, the basic principle of finance is the income must be greater than the expenditure. Take for example, reduce holiday spending, you can replace with a vacation destination that is cheaper, or completely remove it if it is not necessary.

When defining the types of expenditure, need to be tailored to the needs of each partner based on its activity. When the husband of a marketing officer, may need to spend to buy a car. "If the wife does not work, it may not really need my own car". For personal expenses for the husband and wife, must be balanced. Nothing is bigger or smaller.

You need to set up an emergency fund families ranged from 6 to 12 times the monthly expenses. This emergency fund should be separated from other funds. It is very important, so that an emergency situation that does not destroy the overall financial plan. This emergency fund should take precedence due to the continuity of family function in case of disaster, for example, layoffs, illness, and so on.

Buying or have insurance to anticipate unwanted risks. Especially, buy insurance for the family head. This insurance is of great importance to support the family financial planning when exposed to the risk can not earn a living or dead.

Make investments to develop the property. Forms of investment could be aimed at the child's education or other purposes in the long run. The numbers, at least 20% of regular income. You can invest in short-term instruments such as savings in the bank. "Once accumulated, for instance for one year, moved to deposit". Another option is to invest regularly purchasing mutual funds. "Today many retail class mutual funds, though more rapidly growing and inflation is not affected.

Expenditures for routine needs of families, ranging from paying electricity, up to a monthly shopping needs. When the value of monthly expenditure is large enough, should you spend using the card debit. For example, there is a cash-back rewards are automatically entered into our savings account when we shop in a certain amount.

Financial evaluation has the function to see if we have devised a good plan, there is or is not the fault of those plans, and whether the plan was still on track to achieve financial goals. You can switch to a more promising instrument if the long portfolio less profitable. Evaluate the family financial planning, it can be done every six months or one year.( Let's To The Bank )

Plan your family finances, Now!

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What Is Insurance ?

Insurance is a system for lowering the risk of losing financially by channeling the loss of a person or entity to another .

Insurance in the Act is an agreement between two or more parties, with which the insurer is binding to the insured, by accepting insurance premiums, to provide reimbursement to the insured for loss, damage or loss of expected benefits or legal liability to third parties who may be suffered by the insured, arising out of an uncertain event, or provide a payment based on the life or death of an insured person.

Agencies that distribute the risk of so-called "insured", and the body receiving the risk of so-called "insurer". The agreement between the two bodies is called the policy: This is a legal contract that explains each of the terms and conditions protected. Fees to be paid by the "insured" to the "insurer" for the risks covered by so-called "premium". This is usually determined by the "insurer" for funds that can be claimed in the future, administrative costs, and profits.

Insurers use actuarial science to calculate the risks they expect. Actuarial science uses mathematics, especially statistics and probability, which can be used to hedge risks to estimate the claim at a later date with a reliable accuracy.

For example, many people buy homeowners insurance policy and then they pay premiums to the insurance company. If the loss of a protected place, the insurer must pay the claim. For some of the insured, the insurance benefits they receive far greater than the money they had paid to the insurer. Others may not make a claim. If it is averaged from all policies that are sold, the total claims paid out lower than the total premiums paid to the insured, the difference is the cost and benefit.

Insurance companies also benefit investments. This is obtained from investing premiums received until they have to pay the claim. This money is called "float". Insurers can benefit or harm from price changes in the float and also interest rates or dividends on the float. In the United States, loss of property and deaths recorded by the insurance company is U.S. $ 142.3 billion within five years ending in 2003. But the total profit in the same period was U.S. $ 68.4 billion, as a result of the float.

Some people think of insurance as a form of betting that apply during the policy period. Insurance companies are betting that property buyers will not be lost when the buyer pays the money. The difference in fees paid to the insurance company against the amount they can receive when the accident occurred about the same as if someone bet on horse racing.( Let's To The Bank )

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Money Laundering

Money laundering is defined as an act of placing, transferring, paying, spend, donate, donate, entrust, brought out of the country, exchange, or other acts of assets known or reasonably suspected to be the proceeds of crime with intent to conceal or disguise the origin of proposed property so as to appear to be legitimate property.

Money laundering is an attempt to conceal or disguise the money generated by a crimes, prostitution, trafficking in drugs, corruption, smuggling, fraud, forgery, gambling, and others.

The proceeds of crime are tried to be kept in financial institutions (including banks) and in a certain way the origin of the money withheld. Henceforth, the money is used again to fund other criminal acts, and washed again, and so on.

Suspicious Transactions.

In the case of money laundering, known presence of suspicious financial transactions or Suspicious transaction Report (STR). Basically that meant by the term " suspicious transactions " or STR is a transaction that aberrant or unnatural, and not always associated with a particular criminal act. Suspicious Transactions do not have the characteristics of a standard, because it is influenced by the variation and development of existing financial systems.

Nevertheless, there are general characteristics of suspicious transactions can be used as a reference, as follows:

* Not in accordance with reasonable commercial purposes.
* Using cash in a number of very large and / or performed repeatedly out of the ordinary.
* Customer activity outside the customs and fairness.

Under the Law on Money Laundering, Suspicious Transactions in principle consists of three elements, namely:

* Transactions that deviate from the profile, characteristics and habits of the customer transaction.
* Transactions that are reasonably suspected to be carried out in order to avoid the mandatory reporting of Providers of Financial Services (PFS).
* Financial transactions with funds allegedly derived from the proceeds of crime.

Some indicators of suspicious transactions is as follows:

1. Transactions Transfer of funds:

a. Transfer funds to and from offshore financial centers are at high risk without a clear business reason.
b. Receipt / delivery of funds in several stages with a significant difference between the amount of revenue the first with the next reception.
c. Receipt / payment of funds in import export activity that is not accompanied by a complete document.
d. Transfer of funds from or to countries that are categorized as high risk.
e. Transfer of funds from or to parties that are categorized as high risk.
f. Receipt / payment of funds by using more than 1 (one) account in the name of the same or different names.

2. Customer opens an account just for short term only.

* Off-shore company located in tax havens or countries with strict bank secrecy in the application.
* Cash-based businesses.
* Social organization.
* Cyber ​​company.

3. Countries / territories.

In identifying a suspicious transactions, to consider sending state funds, state grant recipients, and the customer's country of origin. This is necessary because if the funds came from or sent to the country known as the possible presence of drug manufacturers association funds by selling drugs.

Countries / territories that need attention are the states / territories are classified as high risk, such as:

1. The area offshore financial center.
2. Tax haven countries / territories.
3. Countries that are known as drug manufacturers.
4. Non-Cooperative Countries and Territories accordance with the determination of the FATF (Financial Action Task Force on Money Laundering).

Effect of Money Laundering.

As a result of money laundering, crime will increase, which in turn would endanger public security so that social costs issued by the government to combat crime will also increase.

In addition, money laundering activities can affect the economy, because there is the possibility of a sudden the money is withdrawn from the country's financial system in large quantities which will affect the stability of the currency and interest rates.( Let's To The Bank )

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Using Credit Cards

Credit cards are a simple way, efficient, and provide more value for cardholders. Is the type of retail transaction settlement issued to the users of the system as a means of payment that can be used in paying a transaction. Namely the payment of an obligation arising from an economic liability, including payment transactions or to withdraw cash with the obligation to make payment / payment at the agreed time both at once (charge card) or in installments. In other words, the credit card is a card issued by the bank that can be used by users to buy all purposes and the goods and certain services in debt.

In the world of business, credit cards are a form of loans from the trust (in this case the bank institution or other financial institution) to the borrower because they have the attitude of trust and honesty. Therefore, it provides funds in the form of loans to be paid pending. With a credit card, your transaction will be bailed out in advance by bank card issuers. Each month you must pay the bill of how much the use of a transaction that you make to the credit card.

Some terms are often used in credit cards:

1. Credit Card Limit.
Credit cards have a maximum number of transactions that can be used, and the magnitude depends on the type of credit card that we have (silver, gold, or platinum). The maximum credit limit is commonly referred to as "credit card limit".

2. Joint Credit Limit.
If you have a credit card with an additional card, two cards are combined credit limit. For example your card limit is one thousand dollars then you have an additional card in the name of your wife, then these two cards total limit is one thousand dollars. This limit is referred to as the combined limit.

3. Date Print Billing.
Some call the "date of account", as the date when all the transactions you have done in one month backward recorded. For example your billing date printed on 10th of every month, then the instance is now the 10th of May, all transactions that you are doing as of 11 April to 10 May will be recorded in billing your credit card bills.

4. Date falling Tempo.
Is the deadline for you to pay credit card bills. The maturity date usually ranges from 14 to 20 days from the date of billing print (depending on the bank concerned). Suppose the date printed on your credit card billing date of 10 per month, then the due date of your credit card ranges from the 24th of each month. Date of transaction is where you make purchases / cash withdrawal with credit card payments.

5. Date of Posting / Bookkeeping.
Is charged on all transactions you make to your credit card bills.

6. Minimum Payment.
Is the minimum number of bills you must pay before the due date. The central bank requires that the credit card minimum payment is 10 percent of the total bill.

7. New bill.
Is the sum total of all charges in accordance with new transactions that you have done.

8. Old Balance.
Is the total amount of your bill in the previous month.

9. New Balance.
Is the amount you pay. The new balance is obtained from the old balance minus total payments that you have done and added to the total of the new bill.

10. Interest.
Is the amount of interest calculated from the total bill if you do not pay in full. If you are a thousand dollar bill and on the maturity date to pay a thousand dollars, you will not be charged interest. But, if you only pay the minimum or less than one thousand dollars, your billing next month will be charged interest.

11. Administrative Costs.
Some administrative costs that you must pay, among other stamp fee, late fee charge (arising from not paying on time), Over limit fees (fees charged for transactions exceeded credit limits credit card).

12. Cash Withdrawal Limit.
Is the maximum amount of cash collection using a credit card at ATM machines. You can take cash from an ATM using your credit card, but banks usually give the range of about 70-80 percent of your total credit card limit. If your card limit is five thousand dollars, then the maximum cash you can take is 80 per cent x 5 thousand dollars, which is 4 thousand dollars.

13.Personal Loan.
Is lending money to individuals who are used for what purposes only and without guarantee. Calculation of interest on the loan with flat rate system and the futures of up to 36 months, the product is under the management of consumer finance.( Let's To The Bank )

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How Much I Save ?

How much of income should you save?. The general principle that practically says 10 percent of income should you save. "But 10 percent of the revenue was great!" Is a common response. Saving as much money as it seems so difficult that most people do not even try it. That is why many people do not have enough savings that even a lot of debt.

10 Percent Is Not Enough....

Here is a real discovery: according to a study published recently, the average saving rate should be 16 to 20 percent of household income instead of 10 percent.

Sixteen to twenty percent?! Wow ....

If 10 percent of it is so difficult that most people do not even dare to try it, how could you save 20 percent?, How sad ..

An impossible task.

Let's see if we can make a relief in 20 percent savings target that seems impossible.

Here are some steps that can be done:

Step 1: Remove the excess.

Almost everyone can identify 5 percent savings in the velocity of money just by observing the details of cost. Use the budget planner to keep track of money you spend.

When you look at the staggering cost, you will find it easily and it cut spending.

Step 2: Understanding the Value.

Take a moment to think about the most important thing in your life. This is your values. For most people, the values of the upper level including relationships, family and special experience. Those things are almost never included "stuff" (real object). Humans hard-wired to be attracted to new things, but that attraction will not take long and will soon be forgotten.

Step 3: Pay Value.

Every time you are faced with spending decisions, take a moment to ask yourself, "Does this have a really important for me?, How important is it?".

Compare your answer to how important it is to have something different that you really appreciate in your life. Understand that any money you spend on one thing is the money that you can not spend on something else that you might value more valuable.

Step 4: Change How You Think.

The final step is to change your perspective in viewing each purchase decision. Our tendency is to look at cost as compared with annual incomes of our personal: "I made millions of dollars a year" . This is the purchase of five thousand dollars. Five thousand dollars is nothing compared to the millions of dollars, so the cost was not "significant" Or, " this cost nil and I want it".

When your brain is analyzing the costs and benefits - you end up making a purchase.

But what if you compare the purchase decision five thousand dollars in money that REALLY you have control. For most people "cost control" end up being 30-40 thousand dollars per week for everything including food, clothing and entertainment - expenses actually planned. The rest of the money you spend each week is to pay taxes or meet previous obligations like rent, utilities, mortgage payments and gasoline for your car.

Now the decision is significant that five dollars (compared to 30 thousand dollars should you spend in a week), you might think twice about spending it.

You Can Do It.

By applying these four easy steps you can trim 10 to 15 percent of your current spending without sacrificing anything that is really important to you. You only need to be more frugal on things that are not important. ( Let's To The Bank )

READ MORE - How Much I Save ?