Welcome To Debt Free Living To Early Retirement
From Achieving Financial Freedom To Early Retirement We Have Something For You! Check Out Our FREE Resources and Tools!
About The Site
“You have two choices! You can work for your money, or you can have your money work for you!”.
For most this is easier said then done. I created this site to help others with their path to financial freedom. I hope to do this by proving useful tools, resources, and personal experiences. Click Here To Continue Reading...
Learn More About...
Proper financial management is arguably the most important skill any business or individual must master in order to be successful in the short term and long term. Anyone responsible for managing their business resources, from freelancers and full time traders to multinational corporations and small businesses, will not last long unless they learn to strategically control optimize their business finances. For individuals looking to create long-term wealth, the same is also true.
What is financial management?
Financial management is more or less what it sounds like: managing your finances. This involves controlling every stage that your financial resources pass through. Financial management therefore includes planning, raising, organizing, controlling, administering and monitoring capital and other financial resources in order to meet the objectives of the business, organization or individual, in the case of personal financial management.
With good financial management procedures in place, your business will be able to use its financial resources effectively and efficiently towards short-term and long-term goals, ensure long-term financial stability and sustainability, and gain an edge over your competitors in the same niche.
Basic elements of financial management
Proper financial management can be loosely broken down into these four basic elements:
- Financial strategy
- Revenue plan
- Financial management system
- Internal financial management environment
Developing a good financial strategy
Your financial strategy is basically a highly specific plan to get you and/or your business from where you are now to where you want to be. A good financial strategy must realistically examine your current financial situation and any relevant factors influencing that situation; otherwise, you will have no way of knowing what needs to be done to reach your objectives.
Speaking of objectives, you also must have clearly defined goals for the short term and the long term. Without a specific and well-articulated idea of where you want your business to be, and over what time-frame, you won’t be able to create a successful plan to get you there.
“How to get you there” can be fleshed out in the second element, your revenue plan. But it also must involve considerations like the potential risks your business will face, and how you will deal with those risks, as well as how to balance your need to continually spend and reinvest in your business with the very real need to have a savings plan.
Creating a solid revenue plan
Hopefully you already have at least a vague idea of how you plan to generate income. This will be vastly different for everyone depending on the field of their particular business or organization. The point is, without income, your business can’t grow, and you will have an easier time bringing in that revenue if you have a plan of action ahead of time.
Basics of financial management systems
Like your revenue plan, your financial management system will depend on your particular business or organization, but there are a few principles that are universally important for a successful financial management system, including consistency, accountability, integrity, and good record keeping.
A good financial management system will help take some of the guesswork out of decisions that involve how to best use your (often limited) resources. It involves tangible things like creating reasonable budgets and deciding where to allocate your capital, and also more abstract concepts like reflecting on whether the system makes it easier to make these decisions effectively, keeping your business’ financial goals in mind and putting them in the context of your financial management system.
Create an effective internal environment for financial management
Lastly you need to determine the various roles and responsibilities that are needed to effectively and consistently implement your financial management system, who will be responsible for each of these tasks, and how they will work cohesively towards the business’ common goals.
In order for people to survive their everyday battles, they should have a good source of income. People need money to buy their basic necessities. Apparently, it is also important to put in mind that establishing a method to accomplish financial security is essential, as not only will it deal with everyday necessities, it could also handle urgent needs in the future. Strict budgeting is not the only surefire solution that you can apply in lessening unnecessary expenses. Acquiring a savings account is also important in securing your money. However, if your objective is to gain financial stability. This is where the incorporation of investment management comes into play.
Good Investment Management
If you want your money to multiply, investment management will do the secret. This basically includes investing the money on various kinds of securities like shares, futures, and bonds. The management of assets should be done prudently and tactically because one misstep in your investment choice could result to a cascade of problems that might ultimately cause irrecoverable financial loss. In line with that, investment service providers can also keep your investment problems at bay, if you like to reduce the financial risks.
The services of these investment experts can be very advantageous to every investor, either private or institutional. These professionals have in-depth know-how about the asset market, making sure that ROI is maintained by way of making a diversified asset portfolio. Aside from dealing with the funds, investment managers also come up with tailored investment strategic plans in order for the goals of their clients to be realized. However, the investor will be the one who will determine for the style to use. Before the implementation process, the asset management group will talk about things with the investors to finalize everything.
Choose Traders to Save Money
It is suggested that you put effort in determining the different things that can potentially affect your independent financial advisers through study and analysis. As for traders, no matter if they already know how to deal with their assets or not, time is one crucial factor they should consider to assure that things are set in the proper places. Traders will be able to save lots of time if they just hand over these tasks to investment professionals. If you are searching for retirement advice firms, be sure you go for dependable providers that can assist you keep track of your portfolio reports annually and quarterly.
The management team is provided the power by investors to deal with decision-making processes regarding investment plans. On this note, the team is also provided the responsibility to decide on the correct allocation of funds and anything that deals with finances, such as taxes and bank transactions. It is typically suggested by investment advisors that investors take on mutual funds, making them open to a more diverse trade with lower likelihood of risks. Through mutual funds, securities can also be obtained at a cheaper price, and investors can also liquidate them quite simply.
In the beginning, investors will hesitate in passing their assets over to other people, regardless of their competence. Nonetheless, investors should be informed that these experts are knowledgeable and expert enough in doing their work, which is making the proper investment decisions that lessen risks. In addition, investors are guaranteed of great deals at cheaper rates when these asset management agencies represent them. By following the above mentioned, you are certain of success in your investment.
Forex is an acronym of Foreign Exchange, and Forex Trading is the global business of trading of currencies from various countries against each other. The foreign exchange market also known as FX, currency market or Forex. All of the larger international banks are major participants in Forex trading. So, is it really possible to start Forex trading without investment? What about Day Trading Forex? The answer to both of these is yes you can!
Typically Forex trading is performed by the brokers, in this business you have right to choose the currency pair that you expect to change in the value and trade accordingly. As a Forex trader, you have to place an order through broker then the broker passes the order to their partner in the Interbank Market and fills your place. In case, you close the trade the broker closes your position with the loss or profit during the trade.
Start Forex Trading Business? Why Should I?
No matter what is your actual business you can do it from home as part-time, if you know how to do business and survive in the market, start by day trading Forex. It requires practice and knowledge of different markets you want to work with.
Day Trading Forex is Easy With a 24-Hour Market
As a Forex trader, you can choose your own hours to work from the morning in Australia till the night in the United States. The Forex market never sleeps, so you can join Forex trading as a part-time business, but you must have some amount to invest. You can find your peak hours to do Forex trade according to your regional time. Find out how to combat inflation!
Low transaction costs
The physical Forex markets require large amounts to invest to survive in the market, on the other hand, online Forex trading doesn’t require anything like this. You can make transaction cost under 0.1% under standard market circumstances, and the larger markets can bid as low as 0.07%, so it depends on your investment in this market.
As a Forex trader, you don’t need to bear expenses like brokerage fees, exchange fees or government
fees. Most of the retail brokers compensate for their services, so they don’t require you the commission.
Just like other businesses, day trading Forex also has scammers who are just like a black sheep in this field.
Before you start Forex trading, you need to avoid them, following tips helps you to avoid from Forex scam or fraud.
Google the product and research for it: If you see a new product that offers high-profit, search about it in Google, for example: write “product name scam” if the results yield with too many results don’t go with it.
If it looks too good: Websites that offers high-profit, keep in mind there’s no easy money in this market.
Scamming websites usually have one page with big/blinking $ sign and serious explanations.
Demo account: As a beginner you need to care for the demo accounts. You must ask from the people who have experienced the field to start a demo account.
Check the people on LinkedIn: LinkedIn is the world’s largest professional network with a wide audience. People who looks new to the Forex and from whom you might have scam risk then they can be searched out on LinkedIn. By checking their linked profiles you will know that whether they are trusted or not.
Everything you need to know about your 401k contribution Limits 2018. Most families don’t have the advantage of multiple tax sheltering opportunities. A small business, a farm, or nine children are available to only a few, so tax reducing techniques may difficult to come by. As a result, perhaps the single greatest tax sheltering device that most families possess today is their 401k retirement plan.
In this article, we will discuss 401k contribution limits for 2017 and 2018. We will also assess 401k catch-up contributions and 401k matching rules.
401k Max Contributions
For 2018 the 401k limits are set at $18,500. This is the maximum annual 401k contribution allowed by law. This is a figure that has climbed 65% from $10,000 in 1999, thereby allowing participants to have larger retirement plan tax deductions than ever.
401k contribution limits 2018 will remain the same as in 2017. With 2018 contribution limits now attached to certain inflation indexes, the IRS and Treasury departments have determined that there will be no increase in 2018 maximum contributions. Many experts were expecting a decrease of 2018 401k contribution limits, primarily because of the somewhat deflationary environment we currently find ourselves in. It is important to note that all future adjustments will also be tied the same index. Check out our article on the rules for 401k distributions.
401k Catch-Up Contributions
In addition to the above, 2017 401k catch-up contributions are $6,000. The 401k catch-up gives participants 50 years old and older the ability to sock away a little extra before retirement. The 2018 401k catch-up will also remain at $6,000. Future catch-up contributions will be indexed for inflation in the same way deferrals are currently.
401k Matching Rules
If you’ve been a part of a retirement plan recently, you may have lost your 401k match. Many businesses, both small and large, have simply found that cutting the retirement plan match makes sense to the ongoing health of the business. Employers are looking under every stone for ways to save money, and 401k matches are not immune.
A 401k match typically involves employer contributions to the employee’s account based upon the employee’s deferral. Many employers match dollar-for-dollar, where others contribute less, i.e. 50¢ on the dollar.
Employers are allowed by law to match up to 6% of the employee’s salary. For example, if an employee makes $50,000 per year, the maximum employer match to the employee’s 401k account would equal $3,000. For those of you who are self employed read about the safe harbor 401k plan!
401k Contribution Limits 2018 Summary
- 401k contribution limits for 2017 and 401k contribution limits for 2018 are set at $18,000 and $18,500 respectively.
- Catchup contributions for 2017 and 2018 are set at $6,000.
- 401k Matching rules allow for matching up to 6% of the employee’s salary.