Business and Finance Analysis

Archive for the ‘Finance’ Category

Today, learn the business from the richest man in the world No.7. Yes, in the article to learn the business before we learn of billionaires in the world no.3. Now the world’s richest businessman No.7. Probably never heard of the brand Louis Vitton? Christian Dior brand? yes leading fashion brands of the world. Various production luxury Louis Vitton handbag (LV) became a fan favorite shopping for luxury brands popular world. Who is the man behind the success of the LV and Christian Dior brand is this? Bernard Arnault is the second owner of this company. He was included in the ranks of the richest people in the world. Well, today we will learn the principles of a successful business with him.

Bernard Arnault was born March 5, 1949. He is the 7th richest person in the world and France’s richest people with an estimated net worth of $ 26 billion U.S. dollars, according to Forbes report in March 2007.

Famous alter Arnault of LVMH, the giant company’s luxury goods when he was in control in 1989, became a global company through acquisitions, marketing savvy, and bold designs.

Bernard Arnault is a native of Roubaix, and graduated with an engineering degree from Ecole Polytechnique in 1971. In 2007, Arnault was listed among the 100 Most Influential People in the World version of Time magazine. He was also a skilled pianist.

At the age of 35, using a combination of family and borrowing money, he bought Boussac, the French textile group that had gone bankrupt fashion house that has funded the original Christian Dior in 1946. Arnault stripped Boussac for Dior and use it as a vehicle to create LVMH, which was born from the merger in 1987 between Louis Vuitton and Moet Hennessy. Once in control, Arnault fired executives of both companies, inserting his own team, then spent years mastering the 90′s luxury brands, including shirt maker Thomas Pink, Chaumet jewelry, leather goods Fendi, Pucci and Donna Karan fashion, champagne company Krug, and watchmaker TAG Heuer. With his father, Jean, he still controls 47% and 63% of LVMH shares voting rights, while in isolation has 68% stake in Christian Dior Couture, part of Dior’s fashion.

Financial instruments (financial instrument) is a contract that gives rise to a single entity financial assets and financial liabilities or equity instrument of another entity.

Financial assets (financial assets) are assets in the form:

* Cash
* Equity instruments of other entities
* Contractual right:
o to receive cash or another financial asset from another entity
o to exchange financial assets or financial liabilities with another entity that the terms / conditions may be favorable to the entity itself
* A contract that will or may be settled in equity instruments and is its own entity:
o non-derivative instruments that require or may require the entity to receive equity instruments the entity itself in the number of variables, or
o derivative instruments that will or may be settled other than through the exchange of cash or other financial assets in the amount fixed by the entities own equity instruments in a fixed amount. For this purpose, entities own equity instruments do not include instruments that form and submit the contract to receive equity instruments of the entity itself in the future; entities own equity instruments do not include financial instruments that can be sold for a price in the future (putt able financial instruments).

Financial liabilities (financial liabilities) include:

* Contractual obligations:
o to deliver cash or another financial asset to another entity, or
o to exchange financial assets or financial liabilities that the terms / conditions may be favorable for the company; or
* A contract that will or could be resolved in its own entity and equity instruments in the form:
o non-derivative instruments that require or may require the entity to deliver its own equity instruments the entity in the number of variables or
o derivative instruments that will or may be settled other than through the exchange of cash or other financial assets in the amount fixed by the entities own equity instruments in a fixed amount. For this purpose, entities own equity instruments do not include financial instruments that can be sold for a price in the future (putt able financial instruments).

When his parents died he inherited fields and gardens. If the rice fields and he was in earnest, and only occasionally into labor just to get cash. One moment the pretty garden, that’s when he was faced with a choice: buy a motorcycle when it was trendy or buy a cow that can breed.

Relatives and friends in the village said, “The Prestige (shame) not have a bike again …” But Basori “against the flow” of opinion in his village, he bought the cow instead of a motorcycle. For the purposes of transportation he uses his old bicycle.

The result, cows continue to breed. From the results of these cattle Basori finally able to buy three bikes for himself and his family. While his friends who used to choose to buy a motorcycle, now must sell to cover the various needs of life.

We learn one thing from Basori, currently has a excessive use of money for something that could generate or breed is not for something that adds to expense. If we spend something for the sake of pride in our long-term loss. Conversely, if we use for the prestige of the investment will come to us in the future.

The choice between investment and prestige not only in the village Basori. But it happens also the lives around us. How many people are willing to use borrowed funds to improve the appearance merely for the sake of prestige. However, much of whose lives remain simple and used the proceeds to increase or multiply his investment.

To be sure, prestige makes a lot of people make their lives miserable while investing our lives more and more prestigious. So, let’s invest and bury prestige

Benefits of Financial Planning

Financial planning provides direction and meaning of your financial decisions. It gives you an understanding of how each financial decision you make affects all other areas of your finances. For example, purchase insurance products may help you to secure your assets or income potential, so that your work will be more peaceful, and family that you love will be protected financially. By viewing each financial decision as part of a whole, you can consider short-and long-term effects on your life goals. You also can more easily adapt life changes and feel more secure that your goals are still on track.

how to realize the dream of the candidates who want the full works of a future that is fun and financially independent through the seven pillars of self-reliance. Seven Pillars of Self-Reliance Through offering practical steps you can take at any age to make your golden times more secure and enjoyable, we can prepare ourselves to set foot, reach, and returns the most exciting times in life.

Seven pillars of financial independence at retirement are:

Pillar One: Gratitude Attitude

Center for financial freedom is the attitude of gratitude with all my heart, a sincere passion to always thank God for every blessing given HIS, both large and small. With a heart full of gratitude will come naturally to share the excitement with social and spiritual community and every person you meet.

Pillar Two: Commitment to Health and Vitality

The core of this pillar is to know that health is important for (a) help avoid large expenditures for medical expenses, and (b) fitness, energy and vitality you will need to enjoy an active lifestyle and fun.

Pillar Three: Freedom from Debt

Debts which I mean here is consumer debt, for that disconnect and never in debt. Habit “Buy Now, Pay Forever” has been robbed of your future because you pay the past.

Pillar Four: Discipline Savings in the Tax Savings Benefits

Once your consumer debt is reduced, you will be able to save more money for the future. This brings us to the fourth pillar: the discipline of saving. Where some of the money would be transferred to the reserve fund for unexpected costs of living between 3-6 months in order to cope with a sudden need for living. Your commitment to long-term saving is because you can to enjoy tremendous benefits from an advantageous tax savings, which lets you reduce the tax burden and defer income taxes.

Pillar Five: Investing for Growth

Saving money is set aside some money; investment means using those savings to be growing over time. Even the smartest although savers will definitely have a shortage if they keep the money in place “safe” such as bank accounts, money market deposits and bonds. For long-term retirement savings, you better use the money more aggressively.

Pillar Six: Asset Protection

In order for you to be careful of what you’ve got up with difficulty, then take this  Insurance for yourself and your family.

Pillar Seven: Sources of Income Not Out

In this discussion will answer the fears of prospective retirees: “Am I going to run out of money? Do I have to move and take my children or dependent on the government? “. The seventh pillar will show us how to turn our assets into a reliable income stream. This will ensure us to have money that we need as long as we still need it, when combined with spending wisely.

Conclusion: By implementing these seven things, you will be financially independent in retirement. It is true, we better start early, but there is always time to improve your financial situation in the future, no matter whether you are a new adult, middle-aged, or will retire. The key is to start from now to put down the seventh pillar in place.

Have you made financial planning? Who needs financial planning? Who was most concerned with your life later? Do you own, your Parents, your children or someone else?

We as humans need the assurance of life in old age, we need a bit of certainty where we will be when we retire, we need well-being in old age. There are several options that we can do when we enter the age of retirement, including:

- Relying on others

- Dead

- Keep working

- Independent

- Rich & Prosperous

The decisions you make today will determine your future will be. We already know that in the future we have to face an uncertain and when asked to every human being would choose to live rich, happy and prosperous future parents. But how can we prepare our lives as a rich man, happy and prosperous? And keep in mind the wealth and prosperity is not built in a short time, it may not be built in a day, week or month. Welfare needs to be built in a long time by doing the accumulated bit by bit over the years.

In the future you should also be able to prepare the education costs for your baby, because it’s so expensive cost of education and of course the cost of living for his family in the future must also increase. We would be very unwise, when in old age, we rely on our children.

In doing financial planning, we just need discipline. We must have the discipline to make allowance for a portion of our income for investment, Invest with just because we can perform the accumulation of wealth so that when the time comes we will reach a value of wealth that will lead us to be RICH and PROSPER. Remember once again that wealth can not be formed in a short time, but need the process.

Good financial planning will make us get out of financial problems, we will finance our life with ease, we will prosper later in old age, we live free from financial problems and not depend on others. We are able to deal with future uncertain comfortably

with your financial plan that is easy to administer and make your financial future WARRANTED.

Many of us felt it was doing financial planning, but the facts show that the funds required at the time was insufficient. Survey conducted by AC Nielsen and Citibank showed that 70% of executives in Indonesia threatened poor old Day.

Step / Financial Planning Process You Must Go through

1) Determine your financial goals.

Is the goal to Children Education, Pension Funds, or pilgrimage, or other financial goals.

2) Calculate your financial goals and achieve them srategy.

You must determine the amount of funds needed in time, eg, while studying at Medicine would cost how much. Besides, you also must have a strategy so that goals can be achieved. One strategy is one of them is to choose a vehicle that suits you so that the goal can be achieved. It could be a vehicle insurance, or other investment instruments.

3) Implementation in accordance with the time available and the risks you

You will reach the goal must be to see when it’s time to be achieved, the sooner you start the better the results will be.

Example: Want to raise funds amounting to $ 500 million for the college in Medicine at Children age 18 years. Assuming the investment return of 15% per year then takes the savings amounted to $ 633,848,000 each month when you start  at Children 2 years of age. But when you put it off and just started at the age child 10 years, then you should set aside funds every month amounting to 2,722,703. That means the sooner you start the funds you set aside of course lighter. Remember Time is Your Friend in investing.

4) Monitor and conduct periodic evaluations

Once you’ve invested, the next step is to monitor to match the direction of the goal. Perform the evaluation as well so what is the goal could be achieved.

5) Revision of strategy and planning

Not his fault you do a revision of strategies and plans that you already use. This revision is intended to keep the financial goals can be achieved in accordance with the time, or can be used to accelerate the achievement.

With age, increasing career and income increased as well then certainly you need increased certainty, and this means that costs will continue to grow over time. And there is nothing wrong if you start planning your finances.

Whether it is financial planning?

Financial planning is the process to achieve your financial goals through financial management carefully. Financial goal may be to buy a house, saving for the pilgrimage, your child’s education or your retirement plan also includes having the appropriate insurance needs.

Basically, financial planning is needed to determine a clear direction for the management of personal finances or our families. Without a clear direction and goals, we will not be able to manage our finances well. Without good financial planning, we will tend to waste money we earn with difficulty. Without planning, we will tend to spend money we have today for today’s needs. Employees with a monthly salary tends to behave like this, because it believes that next month he will earn a paycheck again. One of the common goals of financial planning is to ensure that at a future time, we will be financially free, that we will have sufficient funds to meet our needs.

Money management is the process of managing money. It includes investment, budgeting, banking and taxes. It is also called investment management.

Money management is a strategic technique employed at making money yield the highest of interest-yielding value for any amount of it spent. Spending money to provide answers to all cravings (regardless of whether they are justifiable or not to be included in budget basket) is a natural human phenomenon. The idea of money management techniques is developed to plummet the amount individual, firm and institutions spends on items that add no significant value to its living standard, long-term portfolios and asset-basins. Warren Buffett, in one of his documentaries, admonished prospective investors to embrace his highly-esteemed “frugality” ideology. This is the basis of every sound money management formulas. The following are powerful techniques that can be employed in making every expense made to be worth it:

1. cutting your budget on social needs
2. avoid any snob-appealing expense
3. always go for the most cost-effective alternative (establishing small quality-variance bench-mark, if any)
4. increase expenses more on interest bearing item than any other thing
5. establish the expected benefits of every desired expense using the canon of plus/minus/nil to standard of living value system.

These techniques are investment-boosting and portfolio-multiplying.

The Tax Club

• Coat ‘Cheapest’. Want mendapakan cheap price, look for items with the symbol ‘cheapest’ or ‘price promotions’. Although the difference may be thin, at least the price is more skewed. If you consider the price-quality low sodium absorption ratio must be good, it’s not necessarily like that. Sometimes a cheap price because the item is a new product, the product issued by the supermarket itself or the product is still in the stage of promotion. So price is not expensive products and sidah famous yangsudah advertise here and there.
• Buy 2 Get 1 Free. Sometimes at certain moments, supermarkets offer buy one get one free the same product. In fact, there is also a buy two get one free again. Well, take advantage of this offer is the best. It’s possible you’ll shell out more because it should have bought one in two. But remember, Adna get free product that you can use as stock. So you do not need to spend money to buy goods such as belaja next month.
• Shopping Day Friday. Certain supermarkets often conduct promotional programs or cash back rebates. Usually this campaign in collaboration with the Bank or credit. For example, BNI credit card ever made campaign Friday called Saver. On that day, cash back is given to customers who transact in the supermarket on Friday alone.
• Buying Volume. Buying goods with a retail price is usually more expensive than if you buy in bulk or wholesale. Indeed, sometimes the difference is not too much. However, if you calculate the monthly budget, not bad tuh! For certain goods such as soap, toothpaste, tissues, should be purchased in large quantities. Generally ‘fall’ would be cheaper if purchased in large quantities at once. After all, this stuff you can hold for a period long enough.