Friday, May 27, 2011

Bond Definition

Bonds are debt / long-term debt in writing within the contract bonds are made ​​by the debtor is obliged to pay the debt with interest (bond issuer) and the party receiving payment or accounts receivable held together with interest (the bondholders) is generally without the encumbrance of an asset . Bonds when first sold sold with a value of par value.

The reason investors are buying bonds where the bonds have a fixed benefit payment at a certain period and the fluctuations in bond prices that go with the flow rate.

Financial Planning Stages


The most important stage in the financial planning it is time to start planning. If one plan, financial planning purposes will not be achieved.

At the family's financial plan, honesty and good communication with your partner is essential and most basic thing. Discuss openly what will be planned. Do not have to hide.

If the main requirement has been met, the next stage you will easily pass. Stage, namely, first, setting financial goals. Second, the identification of revenue and spending plans. Third, the evaluation of the plan.

At this stage of setting family financial goals, the intended use of the money must be described in detail. For example finance the education of children, own a home, car, vacation, and so on.

Thursday, May 26, 2011

Financial Planning for Family

All people want to live happy, prosperous, and tranquil. But, is it possible that the desire will come true? Fate indeed exist in God's hands. But, not impossible happiness and prosperity that we can create its own, certainly with effort and hard work.

The desire to live better in the future is a valuable capital. The question is, how can achieve this? The key to all this is to set and plan our finances carefully. However, the basic desire to bring happiness just not strong enough to motivate us to be disciplined money management. There should be a specific goal for us is more focused on the goals and objectives into the future.

We must realize that a mission impossible to realize all wishes. We must be wise to determine specifically, what was the main goal. How, we must first record all the goals were based on the cycles and stages of life.

Types of Investment Instruments

There are many types of investment instruments available in the market. To select the most suitable investment for you, you have to know the character of each instrument.

In general, bonds are debt securities issued by companies or governments. When buying bonds, you lend money to the issuer.

In return, publishers will give you interest on your money before, and eventually return all the money you lend. Factors of interest paid regularly (every 3 months-6 months) that makes the bonds into fixed-income investment group.

Investment Definition

Investment is defined as money or investment in a company or project for purposes of profit. Basically, the investment is to buy an asset that is expected in the future be resold with a higher value.

Investments can also be regarded as a delay current consumption for future consumption. Expectations on future profit is compensation for time and risk associated with any investment made.

Investment

Someone would have to think about the future at which time the needs of living continue to rise, demand is meant to be educational, transportation, health, shelter, the need for recreation, worship, until the need for a period not productive. With this background, the person aside a portion of its income in the productive and to invest for the period in which they become less productive.

Macro and Microeconomic Definition

Macro and Micro economics economy are the two main branches of the economy. Microeconomics is the branch that focuses on how individuals, households, and organizations make their decision to distribute limited resources, usually in the market who saw the trade in goods or services. Micro-economic study how these decisions affect the general supply and demand for commodities and services. As we know, the supply is one factor that determines the price, which in turn, determine the supply and demand for goods and services. Micro economics is also commonly referred to as the view "bottom-up economy" (bottom to top), or how people deal with money, time and resources available.

Microeconomics focuses on supply and demand and other forces that determine price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize production and capacity so that it can lower prices and better compete in its industry.

Theory of Monetary

Monetary theory is a subarea of ​​macroeconomics that describes the relationship between the stock of money and the macro economic system. Monetary theory analyzes the role of money in macroeconomic system in terms of money demand, money supply, and the natural tendency of the economic system to adjust to the point that balance supply and demand money, the point called the monetary equilibrium. A phenomenon such as inflation can be associated with an excess supply of money on demand, cause each unit of money to buy less. Theoretically, the system of macroeconomic balance and blend for one condition necessary for macro-economic balance is a monetary equilibrium.

Monetary theory assumes that the money supply set by the monetary authority, and can be changed if necessary in the public interest because of the demand for money is naturally beyond the control of public officials. Aggregate income determines the amount of money households and businesses plan to spend in the near future. And money can be used for short-term and long term.

Money ownership households and businesses will not be required to purchase in the near future can be invested in long-term assets (stocks and bonds), which earns revenue.

Tuesday, May 24, 2011

Simple Cash Flow Management

If business is the body of human, then cash flow is the blood that keeps the body awakes. Cash flow is important thing and crucial for business, big or small of business. Without a good management of cash flow, many business, although profitable business, can be end up in bankruptcy because cash-in and cash-out situation is not balance. The amount of cash in is less than the amount of cash out at monthly.


These simple steps below can help the balance of cash flow.
Prepare cash flow projections for the future (next month or year). It will help the firm to avoid problem by giving a warning before the problem comes. Projections are made by noticing the factors such as customers' payment, suppliers' payment, upcoming expenses, and upcoming incomes.

Public Finance

Public finance is a field of economics concerned with paying for collective or governmental activities, and with the administration and design of those activities. The field is often divided into questions of what the government or collective organizations should do or are doing, and question of how to pay for those activities. This definition of public finance is based on www.en.wikipedia.com.


The purview of public finance is considered to be threefold: governmental effects on
  1. Efficient allocation of resource,
  2. Distribution of income, and
  3. Macroeconomic stabilization.
The proper role of government provides a starting point for the analysis of public finance. In theory, under certain circumstances private markets will allocate goods and services among individuals efficiently (in the sense that no waste occurs and that individual tastes are matching with the economy's productive abilities).

Personal Finance

According to www.en.wikipedia.org, personal finance is the application of the principles of finance to the monetary decision of an individual or family unit. It addresses the way in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.


Components of personal finance might include checking and saving accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies, and tax management.

Corporate Finance

In order to get appropriate definition of corporate finance, Balanced Finance presents corporate finance definition based on www.en.wikipedia.org, corporate finance is a type of finance dealing with monetary decisions that business enterprises make the tools and analysis used to make these decisions.


The primary goal of corporate finance is to maximize corporate value while managing the firm's financial risk. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firm.

Monday, May 23, 2011

Finance is A Science

Finance is a science that deals with money, time and risk. Precisely, this is how the money has grown to social activities. It has big influence for each country among the economy of the state, corporate networks , personal or public entity.

We might call the art of finance for investment, because investment is not something you learn in school, but a complex science that a number of factors including feelings, emotions, tenders, economic and political.


A good financial advisor who knows asset allocation plays an important role to reduce risk and maximize revenue tends. This is why many companies do not invest their money, but more generally on the reputation of the investment banks that manage to leave their financial assets and recommend the best strategies, taking into account the global economy.