May 5th, 2011 by achi
Let’s look at four different strategies for building wealth:
1. You can invest in the stock market, but be conservative in nature. Spend years developing a solid portfolio of stocks that pay dividends. These dividends are the way you can fund your retirement. These actions are not attractive, but you can usually have enough money to come and be comfortable. It will take many years to reap the dividends paid by people who have a level of comfort.
2. Another investment option is to live off the interest of public services, government bonds and some corporate bonds. Of course, depending on risk, returns are very different for each type, and only pay the initial premium or interest, no change over time. While stock dividends could increase (or decrease) the rate of investment will always be the same as when you bought the bonds.
Continue reading ‘Strategies for Building Wealth’
October 18th, 2010 by achi
The market Forex (Foreign Exchange Market) is an international market where currencies are bought and sold a large scale.
In this market transactions are made up of trillions of dollars a day, being the largest and most liquid market in the world followed in second place by the stock market.
This market is fully electronic and operates through financial centers around the world, but they do not have stable physical locations; reason operates 24 hours a day, although only 5 days a week excluding late week.
This previously worked only Forex market central banks and private, large investors, but today because of the Internet and other means, anyone can buy and sell currencies in him, even indirectly through a broker or broker.
Forex each currency is represented by a code composed of three letters, for example, the U.S. dollar is represented by the letters USD.
Major currencies traded in Forex are the U.S. dollar (USD), euro (EUR) Japanese Yen (JPY) British pound (GBP) Swiss Franc (CHF), Australian dollar (AUD), and Canadian dollar (CAD).
Forex trading involves the simultaneous buying and selling of two currencies, so the Forex currency pairs are displayed, the most common pairs (being the most liquid) are EUR / USD, USD / JPY, GBP / USD, USD / AUD, USD / CHF and USD / CAD.
The motto that appears to the left of the slash “/” is called primary or base currency, and is being purchased, while the currency on the right is called a secondary currency, and is sold (with which you buy the first one).
For example, to buy euros and sell dollars, in terms of Forex, we would buy EUR / USD, where the euro is the primary peel, and the dollar high school.
Currency pairs are followed by a number, usually consisting of five digits with a decimal point after the first.
This number is the exchange rate, which specifies how many units is secondary currency needed to buy a unit of base currency, for example, EUR / USD 1.2550, meaning that $ 1.25 are required to buy 1 euro.
An example of an operation in Forex, suppose we have predicted that the euro (EUR) was going to appreciate against the dollar (USD) and, therefore, decided to buy Euros with dollars to pay (buy Euros and sell dollars).
Suppose the euro is trading at $ 1.30 (EUR / USD 1.30), and decided to buy 1 000 Euros, so we pay 1 300 dollars (1000 x 1.3).
After a few weeks, it appears that our prediction was successful, and the price of the euro rose to $ 1.40 (EUR / USD 1.40), so we decided to sell our Euros and buy dollars again.
Therefore, we sell EUR 1 000 we have, and as their price is $ 1.40, receive $ 1 400 (1 000 x 1.4).
So our profit will be $ 100 (1 400 dollars we have now, minus 1 300 dollars that we had initially).
October 15th, 2010 by achi
Being a millionaire is the dream of almost everyone. However, few people follow a plan to help them achieve that dream and, conversely, many who merely hope to find one day find a formula that allows them to become millionaires overnight.
However, unless we win the lottery or receive a large inheritance, be a millionaire is not something simple that can be accomplished any time now, but something that requires time, effort and proper planning.
The following is a guide consisting of 10 steps that will help us on our way to wealth. There is a guide to follow to assure us that we will be millionaires, but it gives us chances of success, if we follow their steps with discipline and patience.
1. Define what is to be a millionaire
The word millionaire may have a different meaning for everyone. As the first step on the road to riches, is to define what it means to be a millionaire to us.
For example, some of us might mean a life of luxury, to travel around the world to buy all the things we want, to live the lifestyle you want without having to work or depend on others, etc.
2. Convinced that being a millionaire is possible
Once we have defined what is for us to be a millionaire, we must be convinced that, whatever our current condition, it is possible to achieve.
To this end, we read books, manuals or guides on the subject, read the biography of people who came to be millions, analyzing the cases of people who became rich no matter who had initially little money, or they were too young or too elderly, etc…
3. Getting the goal of becoming a millionaire
Once we have defined what is for us to be a millionaire, and we are convinced that it is possible to achieve, we must put the goal of becoming a millionaire.
Ourselves the goal of being a millionaire means to motivate us to achieve that goal, and commit ourselves to achieve it so that all our decisions and actions are consistent with that purpose.
4. Generate as much revenue as possible
The next step to being a millionaire is to generate as much revenue as possible, either through our employees, our business, or through any other source.
If we have a low paid job, we must strive to seek a promotion or in any case, find another better paying job, although it advisable in this case, is to mount a business that does not require much investment.
5. Spend as little as possible
It is no use to generate good income if all the money we waste. So the next step to be a millionaire is to spend as little as possible.
Spend as little as possible means to live below our means, which does not mean having to come to live in austerity, but simply to avoid the luxuries, avoid unnecessary expenditures, avoid debt, consume as little as possible, and so on.
6. Save
In addition to seeking to spend as little as possible, we also acquire the habit of saving.
Saving in this case means a monthly allocate a percentage of total income to a bag our savings, which must be deposited in a savings account at the bank, so that we have the money in a safe place and avoid the temptation to spend the money.
It is generally recommended to save 10, 15 or 20% of total income; however, we must ensure that this percentage is always maximized.
7. Learn to invest
Once you’ve saved enough money, we must begin to invest in a vehicle or investment vehicle to make it grow.
But investing is not easy, so before you start investing our money, we must learn to invest, which involves training in areas of finance, and become familiar with the various investment alternatives on the market.
8. Investing
Once you’ve saved enough money and have learned to invest, it is time to begin actually to be millionaires.
To start investing, we must choose a vehicle or instrument of investment that we generate a good return in the shortest time possible, preferably one that will generate a steady cash flow, and not one that will generate revenue only when sold.
9. Create an investment portfolio
The money we generate with our first investment we must reinvest in other investment vehicles or instruments.
We must maintain the discipline to spend little and save, and use the revenue generated by our first investment in the acquisition of others, to build a good portfolio or investment portfolio.
10. Staying a millionaire
With discipline and patience, over time come to build a good portfolio, until the moment when we say that we are already millionaires.
However, by that time should not be complacent, and take into account that some changes in the market can make us lose what we worked so hard-won.
Therefore still be millionaires and we must continue working to maintain our wealth, which means being always alert to market changes, enabling us to continue to increase our investment portfolio, etc.