Saturday, June 26, 2010

Why We Better Save Money And Why We Invest MOney

Few days back i just earned 200$ from affiliate marketing. I thought i should save 100$ for future and should spend rest of money for my necessities. One of my friend was with me at that time, he just asked why are you saving money? What you have to do? I just replied him i am saving money so that after sometime i would have a good amount of money and then i can buy a good car also i can pay my university fee from that saving of money. My friend asked what is your university fee right now?  I told him; he said that this university fee will be increase by the end of you semester due to Inflation and other factors, but you are saving money according to today university fee, so you should better invest your money somewhere so that by the end of your semester you will get exactly that amount which is equal to you future university fee. That was a simple formula and i got that, so i decided to invest my all savings somewhere.
We people use to save money in our daily lives without understand that if we keep our money in the idle form that would not be beneficial for us in the future. Because as we all know that value of money is increasing as time pass. We are not discussing the factors behind the increment of value of money, but we are trying to tackle that increasing value of money. I think we should better put our savings in a saving account instead of putting our savings in the current account, because in the saving accounts of bank, you will get some extra benefit on your savings and that will be off course same as you saving for any future purpose.

Thursday, June 24, 2010

Euro Currency cannot die says European Commissioner Chief:Strong Europe Economy

Euro cannot die says European commissioner chief:

European commissioner head Jose manuel Barroso denied that Europe was doomed, saying it was one of the strongest currencies in the world.when asked whether common European currency might not survive because of the economic disparities between the various euro zone countries, Barroso replied, :I do not share that analysis."
"The Euro is one of the strongest currencies in the world and ranked second as a global currency,"he said, adding, "We have a lower debt level then the United States or Japan" While admitting that certain euro zone countries has problems, Barroso added, "It is in the interests of all members of the zone and the countries which do not belong to it that the euro should be strong and credible."
He stressed the "determination of European Leaders to do everything necessary to maintains the euro stability, " pointing to a decision taken on Thursday at a Brussels Summit to publish the results of test of European bank's capacity to stand up to the economic crisis. European leaders has shown themselves capable of adopting measures "not only to strengthen pact but also to make progress on budgetary reform.

Wednesday, June 16, 2010

UAE Is Among The Top Nations In The Global Competitiveness: World Economic Forum

UAE Among The Top Nations In The Global Competitiveness:World Economic Forum:

The UAE is among the top nations in the global competitiveness report for 2009 to 2010 published by the World Economic Forum.

The yearly report evaluates competitiveness along nine parameters:

Institutions, Infrastructure, Macro economy Health And Primary Education, Higher Education And Training, Market Efficiency, Technological Readiness, Business Sophistication And Innovation.

His Highness Shaikh Muhammad Bin Rashid Al Maktoum, Vice President And Prime Minister of UAE and ruler of Dubai, on Monday praised the progress made by UAE international and said it should serve as incentive for greater accomplishment in the future.
he stressed the importance of following up on global competitiveness reports and book a place for UAE among the best countries by 2021.

Monday, June 14, 2010

Corporate Finance: Tips For Corporate Finance And Corporate Finance Solution

As per my observation there are many economic and financial problems facing by different companies and it is looking quit difficult for them to handle with these problem. They have to hire financial adviser relating with all these issues whereas i think these are not such problems which one need to bear such huge expenses. Here are some useful Tips about corporate Finance, Problems regarding Corporate Finance and solutions of corporate finance.

Corporate Finance:

                  Corporate finance deals with all the matters and issues rellated won the corporate level. All such issues of companies and those issues which are related with high management level, and use for decision making that is actually coporate finance. Simply we can say that finance at corporate level is call Corporate Finance.

Important Aspects Of Corporate Finance:

                      There are manyaspects of corporate finance, but here i will discuss only the issues and the matters whic are important aspects of corporate finance, and can be useful in some manner. Further more we will discuss here about the decision making on assets and other relevant issues.
Debt is an important aspect which we use in corporate level. This is actually a cheaper sourceof financing, if anyone needed some amount for its expansion program or for anyother thing that debt is the best source of financing, but it should be upto the certain point, beyond that point it will be harmful for the value of company.

Solution Corporate Finance:

                    If we talk about the corporate finance problems and there solutions, then the major problem bear by the majority companies is actually the mixing of equity and debt. I would like to suggest here that debt is the cheaper source so one should always prefer debt on equity. But it should must be for the certain point.
This is the best solution of corporate finance which i can give about the corporate finance problems and

Friday, June 11, 2010

Setting Investment In Global Market

Investment opportunities for an investor are always wide and have a number of varieties that where to invest, how to invest and when to invest. Everyone has open and equal choice to invest anywhere in the world. Investor has equal right to invest where he is foreseeing good return on his investment.

Investment In Global Market:

                Investment In Global Market is actually a term in which investment has open choice to invest anywhere in the world. Suppose if an investment has investment in any low economy rate (e.g; Pakistan)and now he wants to go any other market where he is expecting high return regarding on his investment, he will go in high economic market (e.g Japan) in getting good return, so this is about setting investment in Global Market.


Many benefits are there regarding this, one will have benefit of high return on his investment,also he will get capital gain and there will be no political instability and or such like these risks there. So there are many benefits available for an investors to invest openly anywhere.

Factors To Invest Globally:

                There are many factors which an investor has to see while investing globally. He will definitely see some opportunities where he want to go, and from then he will select the best market.
Factors like Political Stability, Economic stability, Regulator Framework, Investment Opportunities and Tax Regime so these are some characteristics and some essential points which investor has to observe while putting his investment in global market.

Monday, June 7, 2010

Investment Trends And Phases Of Human Life Cycle System

Life Cycle System is actually the trends or behavior of majority of Humans towards investment. It tells us that how we people normally spend our lives by spending,investing and saving money. Through this Life Cycle System we can come to know that when we Humans in our lives normally spend, when we start investing for the future, and when we get the desire outcomes means return on our investment. It is actually a tool which divide Humans life in three phases according to their behavior towards utilizing of money in through out their life.
1)Accumulation Phase:

                 The first phase of our life is Accumulation Phase. In this phase we do the following things:
a) Individuals in early to middle years of their working carries are in Accumulation Phase.
b) Net Income is small and debt for car loan may be heavy. For instance if one is willing to buy a car, but in this phase his net worth would be less according to the price of car which he is not able to pay right now in this phase.
c) They are willing to pay make high risk investment in the hopes of above average returns. For Instance, in this phase one is not much careful about that where he is doing investment, he just want high return, and as we all knows that high return demands high risk.
d) Funds Invested In this phase will reap high financial benefits during later phases.

2)Consolidation Phase:

           The Second phase is the consolidation phase, in this phase the net worth on income of one is high and his expenses are comparatively low. This Phase has following characteristics:
a) Consolidation Phase lie on midpoint of individual career. In this phase outstanding debts are paid off. Further more, in this phase the income of individual is high as compared to his expenses, so that he is able to pay off all his outstanding liabilities.
b) Earnings exceed expenses, so excess funds are utilized to buy assets.
c) Individuals are concerned about capital preservation's, and do not take much risk. Moreover. individuals are much careful about investing somewhere, he/she invest in such place where not much risk is present.
d) Here in this phase individuals will buy assets for the future, he get increase in capital gain, but he cannot take much risk regarding his investment.

3)Spending Phase:

                This is the Third phase of Life Cycle System. In this phase individuals have to spend, as there expenses are increased as compared to their earnings. This phase has following properties:
a) This phase begin when an individual retires.
b) Expenses are met from Prior Investment.
c) Investments in different aspects have mature and provide funds to utilize in this phase. For Instance, if one has done investment in the real Estate, then in this phase his investment would be mature and now in this phase he will start getting return on his investment, which he had done in the Consolidation Phase.

                  Well this is all about the Life Cycle System, and we have divide the Human life in three phases. Though no one is sure about these phases, as these could not be apply on whole Humans, but majority ones has same behavior.