Financial Planing

Financial Planner: Income vs. Spending

2012-03-25T16:44:00.000-07:00

Financial planners often face questions about income and expenses. Many of us unwittingly have entered into a snowball trap where the faster we get the faster income also increased our spending. Well no matter who ran a story about a hamster running in wheel swivel and locked in a cage. Like a cage said it is the pattern of our life or call it a lifestyle that has shaped us as if we so will not get out of our position that has been formed. We continue to run around and this continues our income is higher the greater our spending. The danger is if both of these to be correlated more than 1 or even 1. Well it harm.... Imagine what would happen if the correlation is more than one. Earnings rose 10%, spending up 20% or even up 30% ... the rest is financed with credit card debt. Finally, we work every month just to pay off credit cards. In short this. from price increases due to inflation only is heavy, do not add expenditure that should be suppressed. Natural lifestyle, if not yet able to buy an expensive HP should not be forced, yet all the same hp main function is to communicate and receive and send SMS ... not true?

If we do not climb out of this problem, we realized later that we worked so many years, but did not have anything because we kept running like a hamster on top. Therefore, try a friend, analyze your spending every month, see where the priorities and what is not. Establish yourself to save and invest each month in advance. Well this was possible 20% of income thanks yeah if only 10%.

My message is do not use credit card if not necessary, and do not have a credit card a lot, especially if you are not able to control your desire. Use it wisely and for the reasonable needs and to limit excessive desire or pleasure. Actually there is nothing wrong with a credit card, which one is the mindset and lifestyle. We take credit card like cash for us, when the cash was not there .... just be you owe ....

Financial Planner: Income vs. Spending

Family Financial Planning and Investment

2012-03-25T16:37:00.001-07:00

Family Financial Planning can not be separated with the name of investment, because investment is a means to achieving financial success of family planning itself.

We actually have been taught by our parents to start saving early so that we previously bought clay piggy bank or a bank piggy people often call a funny pig aka piggy bank out of clay ... he .. he .. yeah but if already used to a lot of our usual solve and sometimes we buy a toy at first. But not infrequently also after a lot of our tubes into our savings.

Now we increase are higher, because the investment is an investment that will deliver the results that we realized adequate to suit our needs such as education funding needs, the needs of our own pension fund. Should be conducted in a disciplined investment every month so you'll get the name Dollar Cost Averaging if you buy investment instruments like mutual funds at regular intervals. Any investment that is more simple as well as deposits will give you an alias Compounding the effects of blooming flowers, so that the later 1 +1 is not equal to 2 to 2.3 and so on, but something like that is easy to understand the effect of Compounding it.

Investment itself is not limited in the form of financial instruments such as mutual funds and deposits on top. Houses, Land and Commercial was also a good investment if it can deliver economic value such as rental income, business income, and appreciation of the value in the future. But remember not to leveraging the purchase if you can not produce additional economic value that can add to your income. Financial planning should be set on these loans to be repaid immediately. There is also need special skills to make purchases such as buying real estate because one would have an effect on your ability to gain or earn income from the investment itself. Just imagine if you are already investing in the shop its market value rose steadily each year, for example, 10% er even still be the rent every year 10% more hmm ... how much return you ... please count yourself.

Saving and Investing Education regarding this must be started from the children so that children will learn to value money more wisely and with whose name the money. Try asking your child is 4 years old, would not the money ... he said he would not ... then he began to understand that money can be used to purchase anything you point it ... live it ... nah be improvised so that you are the child can become financially literate early on. It is important ... for them ... give them a hook, teach them to fish, do you fish only ..... okay?

Family Financial Planning and Investment

Determining the pattern and Lifestyle Financial Planning Family Success

2012-03-25T16:23:00.000-07:00

Family Financial Planning is essential to start early, even when you are still singles alias not have a partner you can begin to prepare yourself to enter the gates of life in the household will follow .. So do not hesitate to take a life insurance or simply buy the link unit to prepare for the future protection of the family finances. If you start early everything will be cheaper and more investment will be maximized. But that does not mean singles or married it does not need financial planning lo ... it's wrong for you because you still have responsibility for planning this for yourself later on when they retire.

It is important to start early, even when you are still singles alias not have a partner you can begin to prepare yourself to enter the gates of life in the household will follow .. So do not hesitate to take a life insurance or simply buy the link unit to prepare for the future protection of the family finances. If you start early everything will be cheaper and more investment will be maximized. But that does not mean singles or married it does not need financial planning lo ... it's wrong for you because you still have responsibility for planning this for yourself later on when they retire.

it is important to start early, even when you are still singles alias not have a partner you can begin to prepare yourself to enter the gates of life in the household will follow .. So do not hesitate to take a life insurance or simply buy the link unit to prepare for the future protection of the family finances. If you start early everything will be cheaper and more investment will be maximized. But that does not mean singles or married it does not need financial planning lo ... it's wrong for you because you still have responsibility for planning this for yourself later on when they retire.

In short Family Financial Planning is essential to ensure the future of family life and children and our retirement. Financial planner or a professional Financial Planner will assist in planning family finances to meet the financial demands that sooner or later will come to us. How many of us who are literate about these issues, modern life is not much to teach us to make expenditures that are often not really necessary, especially with the ease of obtaining credit card Well if the person is not wise then it will automatically be a big wedge of the first shopping alias pole pay debts and cicil each month. Okay if this purchase is necessary but if not then this will be your liabilites are necessarily detrimental. Therefore we must be selective in spending money or using credit cards that are consumptive. Try to analyze your spending and ask how much money I have boroskan for things that do not need each month? Or look for other ways to minimize your expenses each month even though it does need to be removed.

Now the question is how many of us are already preparing for the future of their children with education funding plan that mature? How many have really really prepare for old age financial aka retire later. How many do have an emergency fund if there is anything to do with us? What if there is anything to do with us, who will fund the life of my wife and our children? Believe it requires a mature family financial planning. True statement saying that "we now determine Eating our health in later old age, as well as financial and lifestyle patterns we now also determine the pattern of our retirement finances." Therefore start from now and do not delay. Remember that the high cost of living in the future is clear in sight, now the problem of how to do that we did not hit turbulence or economic shocks family, the answer of the family finances start planning now.

Determining the pattern and Lifestyle Financial Planning Family Success

Managing Money - Budget Basics | Creating a Budget Doesn't Have to be Hard

2012-01-27T10:48:00.000-08:00

For most people, the word “budget” brings up thoughts of penny-pinching and the unpleasant task of crunching numbers. This couldn’t be further from the truth. A budget is at the cornerstone of a solid financial foundation, regardless of your situation, and it isn’t that hard to do.

What is a Budget?

A budget is nothing more than a breakdown and plan of how much money you've getting in and where it goes. Could you imagine a business becoming successful if it didn’t keep track of its income and expenses? The same holds true when it comes to your personal finances. If you don’t know how much money you've coming in and where it goes, your road to financial success will be a difficult one.

The biggest fear that most people have when creating a budget is that they'll need to suddenly cut back on all of the fun spending -- things like the occasional coffee or dinner out, movie night, or even the trip to grandma’s for the holidays. While you may find that you do need to cut some spending after putting together a budget, without actually sitting down and creating one, it is impossible to know what expenses need to be cut, if any.

Tracking Income

The first step in creating a budget is to determine how much income you have. This is quite easy and typically only requires you to take a look at your pay stub. Of course, if you’re married, be sure to include your spouse’s income besides. In addition to your regular pay, you’ll want to also include any other sources of income you may have, such as dividends, interest, a side business, and so on.

Tracking Expenses

Now that you formula much income you've coming in, it’s time to take a look at your monthly expenses. Start with the regular and fixed payments you've, such as your mortgage or rent, car payments, insurance, debt and taxes. For most people, these are going to be relatively fixed, meaning you can’t easily change the amount that is due each month.

After you’ve listed your fixed monthly expenses, it is time to dig deeper to catch out where the rest of your money goes. Take out your checkbook or pull your latest bank statement to help you with this step. Jot down how much you spend on things like utilities, groceries, entertainment, subscriptions, and so on. This handy worksheet can help you with keeping track of expenses.

The Bottom Line

You should now have all of the information needed to help you create your budget. So, go ahead and total up your monthly income and all of your monthly expenses. Subtract your expense total from your income total and you’ll have either a positive or negative number. If you have a positive number, congratulations, you are spending to a lesser degree you earn. Don’t worry if you've a negative number. The whole reason for creating a budget is to identify deficiencies and find out how to address them.

Now that you will be able to visually see how much you come short, you can adjust your spending or saving in certain areas to improve the situation. Oftentimes you’ll realize that by just making a few small adjustments to your spending habits, you will be able to significantly improve your situation. Maybe this means cutting down on one of your magazine subscriptions, eating out one time less a month, or even just hitting the matinee instead of the prime time movie. Typically, just saving a few dollars here and there can be enough to not only make sure you spend less than you earn, but also apply a few extra dollars to things like high-interest credit card debt or your retirement savings.

Everything You Need to Know About Budgeting

2012-01-27T10:42:00.000-08:00

Budgeting lies in foundation of every financial plan. It doesn’t matter if you’re living paycheck to paycheck or earning six-figures a year, you need to know where your money is going if you would like to have a handle on your finances. Unlike what you might believe, budgeting isn’t all about restricting what you spend money on and cutting off all the fun in your life. It’s really about understanding how much money you've, where it goes, and so planning how to best allocate those funds. Here’s everything you need to help you create and maintain a budget.

1. Budgeting Basics

Do you know why a budget is so important? On the surface it seems like creating a budget is just a tedious financial exercise, especially if you feel your finances are already in good order. But you might be surprised at just how valuable a budget can be. A good budget can help keep your spending on track and even uncover some hidden cash flow problems that might free up even more money to put toward your other financial goals.

2. How to Create a Budget

The hardest part of creating a budget is seating and actually creating one. It’s like staring at a blank sheet of paper when you need to write something and that first step seems like a massive hurdle. Don’t worry--I’ve broken down the budget creation process into a few easy to follow steps. You’ll be able to sit down and create a basic budget in just some minutes.

3. 3 Traits for Budgeting Success

Once you’re taken the time to create a budget, now it’s time to make certain you follow it. Budgeting can be like going on a diet—you start with good intentions, but after a few weeks or months you drift apart from your plan. Don’t let that happen to you. Here are a few basic traits that will ensure budgeting success.

4. Basic Budget Worksheet

If you’re having difficulty coming on with all of the various expense categories for your budget, I’ve created a budget worksheet that can help you organize everything. This worksheet has the more common expenses and can help you keep track of everything in an orderly fashion.
5. How Overspending Breaks Your Budget
The main reason to create a budget is to help you keep your finances in check by keeping track of how much money you’re spending and where it goes. When you begin to stray from your budget it’s usually because of spending overmuch money somewhere. But if you've a budget that tells you exactly how much you’re supposed to spend, why is it so easy to overspend? There are a number of reasons we overspend, so when you understand what causes overspending, you will be able to help put a stop to it and keep your budget on track.

6. Try Using Cash to Keep Spending in check

Swiping plastic has become incredibly easy. With both credit cards and debit cards, we can be in and out with a purchase in a matter of seconds. Unfortunately, this convenience comes at a cost. By using plastic we can begin to lose track of how much money is actually being spent. Sure, two dollars here, 4 dollars there, it doesn’t seem like much at the time of purchase, but if you aren’t careful they can really add up and bust your budget. One trick to help keep your daily spending in check is to use cash instead of your credit or debit cards. It might not be as fast, but it helps you visualize just how much money you’re actually spending.

Saving Money in a Tough Economy

2012-01-27T10:35:00.000-08:00

Gas prices are relatively high and the cost of groceries are increasing faster than inflation. People everywhere are feeling the financial pressures of today's economy, and for most, the thought about saving money is a distant one. When times are tough, saving money can be difficult. Even if you're living paycheck to paycheck, there are ways you'll be able to save if you follow some simple rules
Start Small

Saving money is a marathon, not a sprint. If you prefer to save up $1,000, it is much easier to accomplish that goal in a year compared to two months. So to put your savings plan to work, the key is to start small. Can you find a way to save $5 every week? Think about it--five dollars a week is less than a lot of fast food value meals or even some fancy coffees. Five dollars might off of each weekly grocery bill by buying a few things on sale or buying store brands. When you start with a small amount, you can find ways to save, and it adds up extra time.

So, saving five dollars a week doesn't sound like much, but that's okay. If you saved just the five dollars a week for a year, you'd have $260, less any interest. If you're married and your spouse does as is, you will have amassed over $500 painlessly. But the idea isn't to start small and stay small. You may start at five dollars a week, but once a few weeks or a month goes by and you're used to saving that money, bump it up to $7 or even $10 each week. If you could live without five extra dollars, you coulded you can get out without seven dollars just as easily.

These small incremental weekly increases will gradually change your spending habits so that you become accustomed to how much money you have available, and before you know it, you're stacking away a nice sum of money.
Make Saving Automatic

You've heard it before, but to make saving work, you need to pay yourself first. If you wait until all the bills are paid, groceries bought, and money otherwise spent before seeing what is left over at the end of the week, you'll always arise empty. The key to saving is to treat your savings as a bill. You find a way to pay the phone bill every month, don't you? Well, think of your weekly or monthly savings as a bill that has to be paid, and pay it before it gets spent on frivolous things.

To be sure you pay yourself first, you need to create an automatic savings plan. This is best accomplished by setting up direct deposit with your paychecks so that a little bit goes into savings on the day you get paid. That way, on payday you don't have to worry about making a deposit yourself, and you have already put that savings out of sight and out of mind.

If you don't have direct deposit set up, you can always create an automatic transfer between accounts with your bank. You can schedule a weekly, bi-weekly, or monthly automatic transfer that moves money from your checking to savings. If you don't have to think of it, it's much more likely to get done.

Why We Need Financial Planning?

2012-01-26T14:01:00.000-08:00

Financial Planning Profession

'Financial Planner' or the Financial Planning is a profession that helps clients to plan personal finances, helping to provide solutions planning, selection of financial management, investment property or the customer, so that customers' financial needs for short, medium and long term can be achieved.

A Financial Planner in charge of designing an investment strategy that suits the character of the customer in order to achieve the 'Dreams' / financial goals / customer investments in the form of a book 'Financial Planning' which includes financial data, cash flow, wealth / assets, emergency funds, funds education, pension funds, asset purchases, asset allocation, investment, inheritance and taxes.

Why need a Financial Planner?

Due to the limitations of our time. With the busyness of our time to work, take care of business, raising children and doing personal things we do not have enough time to manage the family finances that require special time and discipline.

Market Conditions Money and Capital Markets and investment trend is fast changing. State of the economy, political and social influence financial conditions, which must be observed at all times and should also have an expertise to analyze the state of financial markets.

More and more financial products and investment as well as the variation-variation, so that the necessary analysis to determine an ideal fit with our financial objectives and risk profile.
The increasing level of education, create awareness of the community to organize and manage the income and wealth is increasing, so that the future of the family more secure,

A financial planner must have the ability to:

Guiding clients in determining the investment management,
Establish client investment objectives,
Implement, record, and monitor customers' investment plans,
Reviewing the plan the customer, so that the certainty of all investment plans in accordance with the directives.

Some perceptions are wrong and often arise in interpreting financial planning:

Financial Planning with Invest
Financial planning is just for the rich
Financial Planning with Retirement Funds Program
Financial Planning with Insurance Program

By using the services of Financial Planning means I lose control over property or personal property. Financial Planning is only required at the time of financial crisis

How the results Normal of investment ?

2012-01-26T13:29:00.000-08:00

Financial experts have often provide information or even give a warning that the investment especially investment capital market will always rise and fall in line with market conditions. There will be no one who can with certainty orangpun represent or know when the market will move up and down or vice versa. As an example JCI moving quite fantastic and 'wild' ups and downs in the last 2-3 months.
But that ignorance is exactly what makes the investment of capital markets diproduk be beautiful and full of artistic value. In addition to lacking understanding of capital markets and derivative products, many of us who are already investing capital market still do not understand the mechanism of calculation of the profits. This seemed reasonable because we are comparing with a very easy calculation of interest that we can from our deposit. Moreover, we also need to know exactly how big the actual results of our investment or net investment returns.
Although many theoretical calculation of investment returns as well as nominal and real arimatik and geomatrik, let us try to count the results of our investments is simple. From the above theory is most easily and frequently used is the result of real and nominal investment.
The results of real investment is the investment or interest that we receive from our funds minus inflation. Inflation is used there are 2 kinds of current inflation or inflation on average 10-15 years ago. For example, if we put the funds in time deposits that provide interest at 7% gross, or 5.6% net inflation-which is currently touted by the government around 6.5% last year so our funds to be -0.1% per year (5.6% - 6.5% ) or minus investment results.
Imagine when compared with average inflation of 10-15 years ago that could reach 12.64% or rounded to about 13% per year, then the return on investments because of the example above is equal to -7.4% (5.6% - 12%). A very large reduction of our investment funds which means that our money does not grow or even lose money. The score the more creepy if calculations using the savings that provide a perfunctory interest.
It must be remembered and realized this calculation with a note that our deposit we do not touch the alias taken any action. While we realize how many of us who depend on life or use it as an additional deposit of funds to cover living expenses. Consequently there will be more minuses. Invest properly and count again and make sure that the results of our investments are actually not be a minus.

7 Reasons Why We Need Financial Planning

2012-01-26T13:22:00.000-08:00

At 20-30 years ago, the days of our parents still pay for our lives, yet no such thing as professional Financial Planner or Financial Planner in Indonesia. But 10 years this profession has a lot of popping up in Indonesia. With the development of an increasingly consumptive lifestyles, rising inflation makes the necessities of life will be the future semkin expensive, the number of investment products offered, and the more conscious community well-being of his life.Some of the reasons why we need a Financial Planning:

1. To protect ourselves and family from financial riskIn the life cycle of course there are times of rising and falling levels of life, and can not be denied, wherever our life situations, certainly relate to money. Ups and downs of the financial situation can still be solved with the help of a professional. What are the critical issues and emergencies related to finance, for example are: job loss, illness, accidents that cause disability, and death of the head of the family as a source of income.

2. To pay off debtIt's very good if we already have investments, either investing in capital markets, property, business or valuables. But there are still many among us who also have a large debt, especially consumer debt. It is actually very important to look for a way out. It is not appropriate if every month to invest in order to collect the assets but also accumulate debts which interest is higher than the results of our investments.Therefore, resolving debt is the most important thing in a Financial Planning we have.

3. For the cost of raising childrenEvery parent would like to provide the best for their children. Therefore, a sizable portion in the household budget is the cost of raising children that can last about 20-25 years before our children can pay for itself. This fee covers since the child was born, until the cost of the wedding, but the most important costs are the costs of education since it entered the preparatory school (pre-school) to college. As an illustration, if the current tuition is $ 50 million, with the absence of inflation, within 15 years the cost to around Rp 770 million.

4. For the purchase of assets, from cars to homeThe home is a major asset that should be owned by someone, other than for use as a residence, the house also mnjadi sebuat asset whose value increases over time. The second asset is a must-have vehicles. A comfortable life of the vehicle is 5 years. So like, every 5 years we need to replace our vehicles.But not everyone, even if already have a job, can afford to buy homes and cars because the salary is only enough to finance their daily lives so that from year to year is never enough money to buy aset.Oleh because it required a solution to the desire to buy assets assets can be achieved.

5. To finance the purchase of an insurance policyAll the assets we already collect is to satisfy all the needs of family life, but imagine if one day an accident, illness or death, so that we can no longer finance the family kita.Untuk protect the economic value of someone who is a source of family income is by insurance. The next question is whether we have an insurance value is sufficient to finance future life until the family left behind can be assured. What is the actual value of insurance a must-have? What are the benefits of health insurance do we have?

6. To be able to enjoy retirement with a comfortable standard of livingRetirement is a time for us to enjoy a break from work. Of course we want to enjoy a comfortable standard of living. But from where we can get enough money to finance retirement as we want?. It's not the time at retirement, actually we still have to find a job to pay for our lives. Not the right thing as well if we have to rely costs to our children who may still require fees for his own life even for keluarganya.Sebagai illustration, if our current age of 45 years with our living expenses is $ 15 million, then the When we retire at the age of 55 years then we need to spend about Rp 16 billion to be able to enjoy retirement for 20 years.

7. To bequeath our wealth to childrenIf we already have financial planning and wealth then all the assets we've arranged for any purpose. In the end, if we live long and enters retirement age, all the wealth that we have can we pass on to children. Therefore, preparing a will also be part of a Planning, so that the next generation can enjoy and preserve the wealth that we inherit.When it is appropriate to start planning? The earlier the start of a planning, the better, especially when age is still productive. Thus, financial conditions will be better with a long term investment to get maximum results.

Consumer finance overview

2012-01-26T02:51:00.000-08:00

Consumer finance is the umbrella phrase for financial management as applied to individuals and households. It includes such topics as:

Budgeting
Managing payments
Saving and investing
Borrowing
Managing risk

Consumer finance perspectives: Consumer finance can be studied from 3 principal perspectives:

Individuals and households
Financial companies and the financial industry
The broad economics

Applicability of consumer finance: Apart from its immediate utility to the student, the study of consumer finance also is highly appropriate for anyone who expects to be a financial services professional who will be advising clients on personal finance issues. These career paths include, but are not limited to:

Financial planners
Financial advisors
Insurance sales agents
Loan officers

MBA consumer finance courses: Courses in consumer finance are relatively rare in traditional MBA programs, which typically focus strictly on the management of companies and the analysis of corporate statements. However, forward-thinking business educators are starting to realize that this is a glaring omission. Without fully understanding the needs of their clients, managers of financial services firms arguably are ill-prepared to serve them. As is is true for people involved in setting public policy related consumer finance.

Consumer finance at Harvard: In the spring semester of 2008, Harvard began offering a joint elective course in consumer finance for MBA and school of law students. It builds upon a two-year-old executive education program designed and taught by Prof. Peter Tufano of Harvard Business School and Prof. Howell Jackson of Harvard school of law. Jackson is an expert in financial organizations who holds a Harvard MBA. The course utilizes concepts from a variety of disciplines, among them behavioral economics, psychology and sociology.

According to Tufano, as quoted in the September 2009 issue of the HBS Alumni Bulletin, no other business school among the top 20 in the U.S. or the top 5 in Europe offers a course in consumer finance. During its initial semester in the curriculum, this consumer finance course drew 52 students, one third of them from the law school.

Revivals in Consumer Finance Options: In recent years, some national retailers have begun to revive old consumer finance options that had long ago faded into disuse, most notably layaway plans and Christmas clubs. These retailers see benefits for the consumer in offering these alternatives, and thus the promise of increased sales revenue.

Financial Advisor and Financial Consultant Career Overview

2012-01-26T02:45:00.000-08:00

Financial Advisor Career Overview: Financial advisor (FA) and financial consultant (FC) are contemporary job titles for what used to be called a stockbroker, broker, customer's broker or account representative. A variant spelling, financial adviser, also is used sometimes.

For those seeking information beyond an introductory level, this guidesite includes a number of other articles that explore financial advisor careers and related issues in more detail. These articles are organized into these categories:

Career Development for Financial Advisors
Practice Development for Financial Advisors
Client Service Issues for Financial Advisors
Investment Products
Investment Strategies
Behavioral Finance
Ideas for Small Business Clients

Traditionally, the job of a financial advisor has involved buying and selling securities (such stocks and bonds) on behalf of clients. The change in titles outlined above is supposed to reflect the fact that, besides being focused primarily on facilitating transactions, financial advisors really should be more like investment advisers and financial planners who take a holistic view of their clients' financial needs and goals. Other variations in title, such as wealth management advisor, also are used, sometimes to denote a financial advisor who has additional training, certifications and/or experience.

Specialization: Some financial advisors focus on serving individual or retail clients et al focus on business or institutional clients. Some brokerages prefer that financial advisors specialize in this fashion, others leave it up to the individual advisors to choose whatever mix of clients they prefer. Business clients who require specialized advice and services (such as in capital management or commercial loans) may prefer financial advisors with detailed knowledge in these areas.

Education: A bachelor's degree is expected for a financial advisor. Coursework in finance, accounting and/or economics is helpful, though not required. Strong quantitative and analytic skills are vital. An MBA can give you a leg up in the hiring process, depending on the firm and the situation, as might legal studies or a law degree. In any case, compensation (see below) is tied strictly to performance, not to academic credentials.

Entering the Field: Major Wall Street firms used to run extensive financial advisor training programs, mainly for recent college graduates, but many of these have been dismantled over the past decade to save costs. Entering the field thus is becoming harder. Instead, firms increasingly rely on recruiting experienced financial advisors from competitors. When they do train new ones, they usually seek experienced financial industry professionals seeking a career change. Moreover, becoming a financial advisor today often requires intensive networking, aimed at finding an established individual practitioner or team willing to take on an apprentice, to help in serving and/or expanding his/her/their book of business.

Certification: Becoming a financial advisor requires passing the Series 7 exam offered by FINRA and meeting continuing education requirements. You must be sponsored by a FINRA member firm (that is, your employer) to sit for the Series 7 exam. In some firms, for certain more senior financial advisor positions, and in some states, one or more other credentials perhaps required.

Duties and Responsibilities: Financial advisors counsel clients on investment opportunities, consonant with the latter's needs, goals and tolerance for risk. The job requires keeping abreast of the financial markets, constantly monitoring the specific investments in clients' portfolios, and being on top of new investment strategies and investment vehicles. Financial advisors must be confident about decision-making under uncertainty and under extreme time pressure, have excellent people and communication skills, and know how to deal with failure and with dissatisfied clients. Success is highly dependant on sales ability, both in the acquisition of new clients and in the pitching of investment ideas to existing clients. Serving clients, compliance and practice management are closely-intertwined issues for financial advisors.

Financial advisors can greatly enhance their productivity and their ability to serve a large book of business if they are supported by one or more sales assistants. However, in many financial services firms, financial advisors must fund the pay of their sales assistants, in whole or in part, out of your own compensation (see below).

Typical Schedule: The time commitment can be heavy (60-80 hours per week or more), both for those starting out in the field and for established financial advisors committed to delivering excellent service and to growing their business.

What's to Like: Financial advisors have a high degree of professional autonomy, more akin to being an independent entrepreneur than a corporate employee. There is a close correlation between performance and reward, with virtually unlimited earnings potential. Do your job well, and you make a discernible, positive impact on your clients' lives.

What's Not to Like: The pressures on a financial advisor to process a constant avalanche of information, to make quick decisions under uncertainty that, if wrong, can be costly to clients, to sell constantly and to justify yourself daily can be overwhelming for some people.

Compensation Range: Per the Bureau of Labor Statistics, median annual compensation was about $68,200 as of May 2009, with the top 10% earning over $166,400. Financial advisor compensation typically is commission-based. That is, a financial advisor gets a share of the revenue generated for the firm by his/her clients. Other metrics, such as the total value of client financial assets on deposit with the financial advisor's firm, may also factor into compensation. Top financial advisors can earn run over $1,000,000.

Financial Planning Strategies

2012-01-26T02:34:00.000-08:00

With the financial world the way it is, it is no wonder that most people are having in mind ways to help keep more of the money that they make and make the most of what they make also. Financial planning strategies can give you back some confidence in your finances and allow you to feel better about the financial world in general. What are some financial planning strategies that will work for you?

Look at your expenses. This is the first place that you would like to start in helping to restore your financial security. While you may think that you are staying on budget with your spending, there is always room for improvement in your spending habits. By carefully following through your spending, you can search little ways to decrease spending and to help you to have more money for the future. Evaluate your needs versus your wants to help keep your spending at a level that is comfortable and helpful for you now and in the future.

Start an emergency fund. This is one thing that most people put off, which can be an issue. An emergency fund of three to six months of living expenses can go a long way to helping you to feel more protected, even during the most taxing financial situations. This is not something that can be done overnight, but it is something that you can do a bit at a time to help you to feel better about your financial life. A little saved today can be a lot tomorrow when you need it.

Don't forget the future. Most people live in the here and now, but this can be damaging to your future. Credit cards allow you to buy what you want now, but that does not mean that they will help you in the future, unless you use them wisely. If you do not pay them on time or use them too much without buying off the balance each month, they will hurt your credit history. Your credit history is your vehicle to getting lower rates of interest and getting approved for home loans and other loans in the future.

Invest wisely. Now that you have your budget under control and have your emergency fund complete, you are ready to begin investing. While the stock exchange may seem like a great way to make money, it can also be a way to lose money as well. By making your investing decisions wisely, you can better help your money to grow. While there is always some risk to investing, you want to reduce the risk as much as possible to protect yourself and your money.

Strike a balance. Finding that balance between spending and saving is necessary for you to be financially secure. In this day and age, it is prudent for you to find this balance. By following these easy to follow financial strategies, you can find the financial balance in your life to look of yourself and your family.

Everyone should do some financial planning. Living paycheck to paycheck can be done, but you can be more financially secure if you learn to live your life differently. By striking a balance between saving and spending, you can regain your financial confidence and make your life easier.
Janis Davis at CreditDonkey.com contributed this article. Janis believes everyone should strike a balance between saving and spending with their own personal financial plan.