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7 Causes Of Insurance Not Paid

Insurance.my next door neighbor was often offeri insurance. But I was never interested . I think they just wrote the promises … Yes, some of you might think that insurance can only deliver these promises without any proof. However, have ever prove it? If not, maybe you should take out first, prove whether the new insurance company are indeed broken a promise or not.
Insurance company cases that broken promise should be seen case by case, do not be generalized. That is, not only because of the insurance company did not keep their promises, then you consider all of insurance company are not right. Failure to pay the insurance money by insurance company can be many reasons, such as :
ERRORS FROM CLIENTS
Not all failures are caused by the insurance company claims payments. It could also cause by the clients itself. Generally there are five mistakes that could cause clients insurance not paid:

1. Clients Dishonesty
Before someone has a life insurance, you first they must complete the Application Letter Insurance. In the apps there are questions to be answered by a prospective customer, and from the answers the insurance company will see whether it will provide life insurance protection for you or not.

Well, when filling out the apps sometimes the prospective customer does not give the correct answer. For example, there are questions about whether you had been treated in hospital within two years. If you answered no – but never admitted to hospital six months ago, for example – then if it happens on your death and insurance company found that the cause of your death is due to a disease that once made you enter the hospital about six months ago, well … do not expect the insurance company pay up what they promised.

2. The exclusion by the insurance company to pay the sum assured
Sometimes the insurance company does not provide benefits that they promised when your cause of death is excluded (and the exception is written in the policy). Regarding these exceptions, generally the insurance company set the number of exceptions vary. However, generally are:
1. Deaths due to suicide
2. Death because the person committing a crime
3. Deaths due to AIDS
4. Death due to critical illness, where death occurred in the first year she joined the insurance program of the insurance company in question
5. Deaths due to force majeure, or things that can not be avoided, such as war, natural disaster, or riot
Well, often the exemptions contained in the policy was not read by the customer, so that they felt aggrieved when the sum assured is not paid. Therefore, if you have the insurance policy, read the articles contained in the policy.

3. Client is too old to make a claim
Generally, the insurance company set limits for filing an insurance claim. Typically, the time limits specified is three months. Fuss, customers often make a claim outside the time limit, so the insurance company is difficult to paid.
For example, your husband follow a Life Insurance program with you as his heir. In the event of death of your husband, then you can only get insurance benefits that were promised when filing your claim is within three months after the death. If not, insurance companies may not want to give the benefits they promised.
Now, how can you know the time limit given by the insurance company for claim? You can read it on your insurance policy. After that, if true then there is risk of death, immediately submit his claim to the insurance company.

4. Incomplete filling claims
Insurance company usually ask a number of requirements when filing a claim. Requirements are often not met or completed by the heirs of the customer, so that the insurance company would not be directly pay their claims.
Typically, the requirements demanded by the insurance company if you want to make a claim of death are:
1. Death Certificate
2. Letter from the Police (if death occurs due to an accident)
3. Certificate from the hospital (if death occurs in hospital), where the letter was signed by the doctor concerned
4. Claim Form issued by the insurance company
5. Photocopy of heirs identification
So, if there is risk of death, do not forget to fulfill all the requirements demanded by the insurance company.

5. Failure to pay the premium by the customer within a specified time period
This is obvious. If you do not pay premiums according to the specified time period, it could be your insurance policy becomes void. This means, you are no longer covered by insurance. This is what often happens. In the early days, customers pay a premium diligently, but at a certain moment, the premium is no longer paid, even up to a certain time limit. This is the same as when you use electricity and do not pay within a certain time limit, so your electricity disconnected.
Therefore, make sure you know the rules of your premium payment. Do not let your insurance policy become invalid just because you forgot to pay the premiums on time.

ERRORS FROM INSURANCE COMPANY
Apart from the customer side, failure to pay the insurance money may also be caused by errors caused by insurance company. There are several actually, but a common are only two:

1. Insurance Agents dishonesty in presenting insurance products
Your insurance agent can be dishonest in presenting his life insurance products. For example, when met, they said that the insurance company would pay for Insurance when deaths caused by critical illness, including when the risk occurs in the first year. Though generally not the case.
Indeed, not every insurance company has the same policy. So my advice, what you see in your insurance policy is what should be a reference, rather than what is said by insurance agent. Generally, the insurance company provides a kind of Money Back Guarantee if you find that you are not satisfied with the articles contained in the policy. You can return the policy, and your money will be returned. Of course, during the return policy that is within the specified period set by the insurance company, which is usually 30 to 90 days.

Then, are all insurance agents can not be trusted? Off course not. That is right back to the person. Do not because there is one agent who ‘doesn’t right, then you equate all insurance agents in the world is not right. Once again, it all returned to their respective characters.
Well, to prove whether a given presentation Life Insurance Agent’s right, you just match it with the insurance policy issued. If tit is same, meaning your insurance agent was honest and trustworthy. If not, report him to his Insurance Company.

2. The company is recalcitrant
If you find that you meet all the requirements requested, to be honest in filling apps, diligent to pay premiums, submit claims submission is still within the specified time period, but you are still not paid, try to check again. It could be a recalcitrant company.
Next, how is the solution? Say it to Social Network. Hopefully your insurance company will notice and immediately pay your claim.

Steps To Anticipate Risks

Risk is anything that can happen to people which do not want to happen. Every human being has the risk of whatever he’s doing. In addition, human life itself also contains a lot of risk. There are some risks that can be avoided, and there are some risks that can not be avoided. Examples of these risks can be avoided is the risk of accidents or the risk of theft. While examples of risks that can not be avoided is the risk of death. The effects of risk often leads to substantial losses. Whether the loss of the psychological side, as well as losses from the financial side. If your home got fire, then you will have financial losses experience in the value of your home when the fire occurred. Therefore, it is important for you to anticipate any risks that might happen to you.

Not only insurance

Hearing the word anticipation of risk, your mind may be directly carried over to the term “insurance”. In the science of financial planning, the purpose of insurance is to protect you from financial losses that may arise from the occurrence of a risk. For example, you probably can not avoid the risk of injury to yourself, but you can protect yourself from financial losses that may arise from the occurrence of the accident.

Are all risks that can happen to you need to be insured? The answer is not. For example, you often wear shoes that have the possibility for lost stolen. Will you insure your shoes? Most likely not. Why? This is because if you lose your shoes, you may not loss amount to much. Another case when your house caught fire, then the financial losses that may arise can be tremendous. That’s why, you need to take fire insurance for your home.

Options to anticipate those risks, referred to Risk Management. For simplicity, I shall call this in anticipation of risk. In this article, I will show you how you can anticipate the risks that could happen to you.

MULTIPLE CHOICE
Financial losses can occur when you experience death, accident, illness, or if your property is lost or damaged. Sometimes, the financial loss can also occur when you run into lawsuits from third parties, such as when you hit someone else to hurt and you are required to replace all the medical bills.

Now, what options are available for you to anticipate the risks? Assuming you are required by your boss (or anyone) to bring a package by using the vehicle, from city A to city B. However, the busy street keep you threatened with the risk of accidents. Therefore, there are a number of options for you to anticipate these risks:

1. Avoiding risk. You can avoid the risk of accident. The trick, do not drive. But consequently, your package will not be sent.

2. Facing Risk. You can drive and take the package as normal without the need to be careful, and you accept the consequences if the risk of an accident does occur.

3. Reducing Risk. You drive and bring the package, but be careful in driving. Thus, the risk of accidents can be reduced.

4. Dividing risk. Packages should you take divided in two with your friends. He was carrying several packages in different vehicles, so do you.

5. Transfer of Risk. You ask your friends who brought the whole package.

Well, now we try to practice the theory of risk aversion. We suppose you want to buy a house, but like the other houses in general, you would buy a house that has a risk of fire. To anticipate, then the options available to you are:
1. Renting it, do not buy (avoiding risk).
2. Buying a home, and face only the risk, where hoping that risk of fire will not have to happen (at risk).
3. Provide a fire extinguisher in your home (reducing risk).
4. Give up some losses on the other hand, if your house caught fire (for risk).
5. Submit all of the losses on the other hand, if your house caught fire (risk transfer).

The fourth and fifth choice above is what we called with insurance. That is, the insurance can be a party you claim loss if you run a risk.

TAKING DECISIONS
Once you know what choices are available for you to anticipate risk, then your next step is to write the risks of what might happen to you, and what options you will use to anticipate them. Below are the steps:
1. Know your risk
2. Evaluation of the consequences if the risk occurs.
3. Take a decision on what option would you use to anticipate these risks

For example, risks that may happen to you is death, accident, illness, accident of the vehicle, the car accident, layoffs, and can not work. Therefore, the steps are:
1. Know your risk: Death.
2. Result evaluation: The cost of family life that you leave behind will not be repaid.
3. Take the decision:

  • Risk Avoidance: In this case it is impossible to avoid the risk of death.
  • Facing Risk: It might, with the consequence that the cost of family life will not be paid
  • Reducing the Risk: The risk of death can not be reduced
  • For risk: Submit some of the financing of your family live on the other hand, if you die
  • Transfer of risk: Submit the entire financing of your family live on the other hand when you die.

It’s up to you, the decision which would be taken.
Once you make a decision for a risk, then repeat these steps for the next risk (such as accidents). And so on. So now you already have a program for your family’s risk aversion.

Income And Their Supporting Factors

If you work at this point, do you often feel dissatisfied with the income you get? In fact, you feel you’ve done a lot in your work.

Two managers who worked in different company but the same job, may have different incomes. Sometimes, it triggers a sense of dissatisfaction from managers who earn less. The result is clear, the quality of the work may be declining.

And do not forget, the income you get will basically affect your standard of living.
What actually matters that affect the size of the income received by a person? Actually there are several. Nevertheless, it is usually directly related to education has ever taken, the work which he lived, how old at this time, how much his property, and even where his residence.

Education
Statistics showed that people who take higher education tend to earn more money than those who do not. It is often ‘blind’ the eyes of society which ultimately tend to assume that someone will not get a high income before they take the highest education. It is certainly wrong. The truth is that higher education can help a person to obtain a larger income, although it was not the only guarantee. We saw a lot of entrepreneurs who do not pass the higher education can earn a large income. However, most of those who have a college education generally earn greater.

Job
Person’s income is also closely linked with the job he is doing. Here we know the term white-collar worker with a blue collar worker. White-collar workers (those with more use of his mind at work) usually make more money than their blue-collar (those who use more energy).

Age
Person’s income is also closely linked to age. Young people as 25 years and under tend to earn less than those already aged over 25 years, even over 35 years. The older age of a person, usually the income would be higher. This makes sense based on the experience of someone in one area. Occupied from year to year will make the experience increases, so his income will also increase.

Property
Person’s income is essentially derived from wages and investment returns. Wages and salaries consist of fees, from any person’s services or work that he did. But a second income, is derived from investment returns. For example, a person has property in the form of cash of USD1,000. When money is invested, it will provide regular interest income each month. The bigger he possesses, the greater the interest income or investment results. Also when a person has a house, he could lease it to another party, the person will get the income. Thus, the larger your estate, usually the greater the income you receive. Further income can use to enlarge your treasure, which could eventually be used to obtain a larger income. And so on.

Residence
Place of residence also affects the person’s income. For example two people is the manager, both have the same work experience and type of work. Earnings could be different if they lived in two different cities.

Other Factors
In addition to the above factors, there are also other variables that typically affect a person’s earned income such as luck, talent, hard work, connections, and discrimination.
1. Luck
Being at the right place and time is sometimes also affect the earnings. It could be the income that you get higher when your company is in need you as an employee. However, different things can happen when the condition of the country’s economy is down, and the company lack of orders that can not offer high salaries to its employees.

2. Talent
In some professions, also have a major talent. An architect friend of mine admit that the talent was also influential in the profession, because the quality of work could be also different.

3. Toil
There are some people who lazy in the works, but some others were working harder. They do their best to do a given task. The hope is clear, namely to get automatic promotion and a raise.

4. Connection
Sometimes, the connection also plays a role in a person’s income. Because you have a connection with head of HR / Personnel (who take care of hiring), or chief financial division (in charge of the division of payroll) in a company, then the amount of income you receive would rise.

5. Discrimination
Discrimination is often also affects the person’s income. Discrimination is often done primarily concerned with issues of gender and racial intolerance. Two people are capable of the same, but the opposite sex, may affect the amount of income. So also when there are two people who enabled the same but come from two different tribes, sometimes it will also affect the income earned.

Find Additional Income

Why do you need extra income? One of the key to financial prosperity in the family really is not in how large the amount of your income, but how do you manage such income. Regardless of the amount of income in your family, if you can not manage it well, then welfare will not achieve.
However, should you not need to sadd extra income in your family? Not really. Large income does not guarantee that your family can achieve financial prosperity, but large income can help your family prosper. So once again, great income does not guarantee, but only help. Therefore, it would be better if you could increase your revenue sources.

There are a number of ways to supplement your income in your family:
1. Working as an employee
2. Work by relying on the expertise
3. Running a Side Business
4. Investing

1. Working As An Employees
You can earn extra income by working at a company. You can work as a secretary, bookkeeper employees, administration, or whatever it is. Importantly, you get a paycheck. So at this point if you do not work and only your husband’s work (as an employee as well for example), then by now you also work as an employee, then there will be two salary in your family.

Or, if for example at this time you’ve worked as an employee, maybe you can become an employee also in other places. So you get two salaries. A friend of mine worked at a company from 9 am until 5 pm. While the evening he also worked in a restaurant from 6 pm to 10 pm. He got two salary in a month.
What is the advantages and disadvantages to working as an employee? Clearly, working as an employee is good, because you just come, work, and at the end of the month get a salary. You just need to obey the rules of working hours only.

The drawback, of course, that if you do not work, you will not get a salary. Simple as that. That is why many people who are aged 50-60 years and still working as an employee for fear of not getting a salary if he does not work anymore.

Working By Rely On Your Expertise
If you have any special skills, you can work and earn fees from it. For example, if you can sing, you can sing at parties and get the fee. Well, if you can teach, you can teach and get the honorarium.

Work by yourself must be distinguished by working as an employee. As an employee you get a salary, whereas here you do not get a salary, but get the fee. Examples of those who work by relying on the expertise and get the fees in general are the artists who play the soap opera, or a doctor and an architect who opened his own practice to get paid from the patient or client.

If you notice, in fact almost every person had the expertise or specialized skills that can be sold. The problem is if you dare to make the expertise or skills you have to be sold to the public?
Excess work by relying on expertise is that you will get the income that is consistent with your skills. That is, you will be motivated to further deepen your expertise so that it will get paid more. The drawback is, if you do not work, you will not get paid.

Running a Side Business
Why do not you try to run a side business? You can open a shop or stall. You can open a service bureau that sells all kinds of services. Why do not you try it?
The important thing here, a side business that you run someday will leave their management to subordinates who you trust, so you do not need to continue to engage in it for the rest of your life. Shop for example. You might be able to open a store selling goods of daily needs. After a few months, you could give the management to your subordinates (which you pay of course), so you can be comfortable watching TV at home but can still get the income of the store each month. This is the advantage of running your own business.

Maybe you think that to be successful in the business need substantial capital money. But you may not believe, the success of a business often does not depend on the size of your capital. Please see around you, there are many people who succeed in business with little capital. The most important thing here is the idea.

There are some businesses that require a substantial initial capital, but many businesses that do not require initial capital that is too big. The most important thing here is how you can “outsmart” the amount of money you have now to be sufficient to be able to run a business idea in your head. By running a business, you are automatically better trained to be independent and survive. That’s the other advantages of running your own business.

Investing
Do you have excess money? Why not invest it? If you have $1 million, maybe you could make a deposit, and there is additional income from the interest.

You’ve got stuff you do not use anymore? Furniture for example? Why do not you sell it and invest the money by buying gold, for example. After a twoor three years, let’s hope that gold prices are rose. Well, the difference in price increases is additional income for you.
For those of you who are single (have no dependents) and live in their own home, why do not you just rent out of your home? Thus, you will get additional income from the rental income the house every month or every year. Or if your house is rather big, why not rent one of these two rooms to be used as boarding-lodging petty? You will be additional income from his boarding money, right?

Willingness Is The Important
Looking for Extra Income is actually not difficult. The important thing is you’ve got the will. If you do not have the will to want to earn extra income, then any way indicated to you would be hard to receive.
So, all originated from the will. If indeed there is no will, yes, your circumstances remain as they are now. But if you really want, you have 4 options to earn additional income as above.

Opening A Side Business Part 2

In the last number,I have discussed about the need to increase your revenue by opening a side business. This time, we will discuss about what you need to consider if you want to open a side business.

1. KIND OF BUSINESS
Decide first, what kind of business you want to run. Do you want to run a small restaurant business? Do you want to open a business stitches? Or you are interested in opening a small retail store? You can also open a service business like making cakes or drinks.. What about souvenir business? You can open a small store that sells trinkets such funny glasses or something. In principle, all businesses can be divided into:

Line of Business are still rare or no one has started.
Some of you may hesitate if you want to start a business that does not exist or is still rarely done. But that does not mean you will not succeed. Look Aqua. When first introduced, many people doubt whether Aqua can succeed in the market, but never before have entrepreneurs who sell bottled water. Even many who sneer at first: what would anyone want to buy water at a price more expensive than gasoline? Moreover, we can cook their own drinking water at home.
In fact Aqua has a huge success. One proof of this now Aqua keeps popping up as bottled water brand than others. One time I ever came into a restaurant and order a drink of water in a restaurant. I asked the waitress, “There are Aqua, would you prefer?” Waitress immediately replied: “What kind of Aqua, sir?” The conclusions, start type of business that are still scarce or altogether new is not a taboo. There have been many successful examples.

Lines of business that has been done
You can also start the business sectors that have been made. If it was a lot of people hesitate to start a new business field, but on the other hand there are many people who hesitate to start a business that has a lot of running. For example, many housewives who hesitate to open a sewing business, as in the surrounding area has much to do.

Actually, even if you’re just standing seam effort, but if you have excess or characteristic than your competitors, there is always a chance to succeed. Not to mention the factor of good service, then your efforts despite the many competitors who first stood still be successful.

2. LOCATION
Where do you want to open your business location? At home? Or you want to rent a small place on the roadside? Or you want to rent a shop?
Do not forget that in some types of business, location plays a fairly important. For example, you may decide to open a business selling spring rolls. Well, you can rent a small booth at the mall and sell your spring rolls in it. Here, you must determine where the exact location of your businesses.
Or you want to open a shop that sells all daily necessities such as detergent, soap, rice, cigarettes, and others. You can open a shop like this at your home. There have been many examples of stalls set up in houses and quite popular.

3. CUSTOMER
How do you get your customers? Or if the service business, how do you get clients? Are you going to start to promote it by word of mouth? Or are you going to make flyers and pass it from house to house?
Some people I know promote their business by placing signs in front of his place of business. There is also promoting his business by placing small ads in the newspaper.

The important thing here is you’ve got to know in advance about how do you want to getting customers or clients of your business. If no customers, there will be no sales. If no sales, then your efforts are not successful enough. Simple as that.

4. LABOR
How many people would you hire? Is it only your own work there? Are you also employ a number of people in your business? Maybe it is better if you start with the amount of labor a bit low first. Later when growing your business, you probably will need a number of additional people you can employ.
There is good when you also employ members of your family, as your child (if they are old enough of course), or maybe your husband. By hiring them, then it implies that they also will have a sense of ownership in the enterprise. With a sense of belonging of the members of the family, the support given to you to run the business could be bigger.

5. FINANCIAL PLANNING
Many businesses went bankrupt due to run out of cash. Because it is important for you to take into capital that you should have to be able to run your business. It would be nice if that capital expenditure could be sufficient to pay the company for twelve months. In addition to initial capital, what you should do is to create a cash flow forecast for the next 12 months. Estimated cash flow is a calculation that describes how the estimated cash flows in and out of your efforts. Just as capital, then it would be nice if you have cash flow forecasts for the next 12 months. Thus, in the year ahead, your efforts will not be expected to go bankrupt just because running out of cash.

In addition to the above matters, there are other things you need to consider in connection with your trading style. There is a saying that good people will have happy life. But in the fields of business, too kind create a number of obstacles. And indeed many small business owners who are too “good” in the operations, such as:

  1. They too succumbed to partners or customers
  2. They set a price just above mediocre products and services it sells
  3. They were too good-hearted and less firmly against subordinates
  4. They felt that something was wrong, dirty or immoral if they get the money, profit or opportunity.

Therefore, avoid things like that. A good businessman does not apply either, but to be fair. Fair to the partners or customers, fair to the price of goods and services it sells, fair to his subordinates, and of course fair to himself.

Opening A Side Business Part 1

To earn extra income, there are four ways you can do, that is worked for others, working alone with relying on the expertise, opening a side business, or investing. Of the four, open a side business is usually a pretty good way to earn extra incomes. By opening a side business, first of all you may need to be fully involved in it. But over time, if it’s big business, you can hand over its management to others, so you can have more time. While revenue runs continuously.
Compare this to when you are working on others or working alone to rely on expertise. Working on someone else obviously you have to follow the working hours required. While the work itself by relying on the expertise, usually you can determine your own working time, but still you will be busy

BIG INCOME
Make no mistake about the side business, if you run it you will earn a big income even greater than when you work and earn a salary.
I’ve noticed artisans who sell satay near my house. Every day, from 17.00 – 24.00 (7 hours), he could sell about 250 sticks of chicken satay. If one sticks valued USD0.4, then this means he earned USD100 per day. Within a month, he could work about 25 days. This means that revenues reached USD2,500 a month. I once asked how much profit from it? He said about 60 percent. This means the profit is USD1,500 per month. That does not include gains from the sale others like beverages.

Of course you do not have to be a satay seller if you do not want to. You can open a business that may be more exicitement to you. The principle here is whatever the business, if you run seriously, the results can be huge.

At first the business name may not always run smoothly. Income is probably not the worst. But that’s because of your efforts may not have known the people. It is still new. By the time, as with the more familiar your efforts, then it will surely begin to grow, so the results you get will be greater. Satay handyman earlier for example. I am sure, the first time he brought his wares, people may still be hesitant to try satay. But gradually, people began to order satay, and eventually people is synonymous with satay. Every time he passes in front of my house, I immediately thought of satay. That’s proof that require the introduction of any effort.

People must first know your business, whatever business it is. Either the store, either a small restaurant, or business stitches. Perhaps familiarity takes one year, two years, or maybe just a few months, depending on how your campaign. Once known, then the rest depends on the quality of your product. If consumers do not like it just once, so they give up buying your product. Therefore, you also have to maintain the quality of products to fit consumer desires.

MUST NOT LEAVE A JOB
Who says that you should leave your current job if you run your side business? You do not have to leave your regular job. You can run your business while you keep working at your current job.
More over, you will later have a double income is not it? First of all, your business income may still far less than the salary of your regular job. But after a long time, along with the more familiar your business, your efforts will be more advanced, and who knows your business income will increase and can equal your salary?

Then, who knows your business income also may increase further and exceed your salary? I saw many examples of people who started the business while maintaining his job. After a long time when his business more successful, revenue from increased business, and the numbers are far beyond his salary. So he has a choice whether he will retain both its revenue, or leave his job and plunge into a total of 100 percent of its business with the expectation that the income from his business could be bigger.

For those of you who become housewives and only the husband works, may be even better. You started the business you are, while your husband is still getting a salary from his job. Each of you are now generating income for the family.

READY FOR SPENDING TIME
If you run your business while still working, then you should be prepared to spend some time. For those of you who perform duties as a housewife, you must be prepared to set aside about maybe 4 hours each day to take care of your new venture. For those of you who also worked in the office, maybe you should be ready to run your business at night. It’s up to you. What is clear, you must have a commitment to run your business, and do not be surprised if later on you’ll be more tired than usual. This is natural, because you are running two jobs at once right?

But what makes you want more tired than usual? What makes you bother to run your business? This is because you want to developyour business and its management so you can give to your subordinates so that you can have more time for your family’s while still get income. So, you are investing of time (more busy) now, with the hope that you get more time later. So, no matter how busy right now, why do not you take the time to initiate a business?

NEEDS FAMILY SUPPORT
Ask for support from your family. If necessary, ask your husband to help you. Involve your husband from the beginning. Thus, your husband can come into play in your efforts. Husband’s support was essential. Many home-based businesses that failed due to lack of support for her husband.
You will not succeed in your business when her husband is not supported, but it would be helpful if your husband’s help support your efforts? If necessary, do not tell your husband that this is your business. Tell him that this is a family business, not your business. Later if business is big, your husband can get involved in it. Would not it be fun if the husband and wife working together to build a family business?

MUST NOT BE HIGH EDUCATION
Whether you are one of those who have not received high education? Whether you just graduated from junior high? Did you just graduate from senior high school? Or do you simply do not have school and only have experience?

Read this: You do not have received high education to be able to open a business and succeed in your business. We’ve often heard and saw that there are many people succeed in building his business from scratch, though not having a college education.

What is the recipe so they can succeed? Perseverance and motivation to succeed. More important, though he did not want to learn high school. Learning should not be taken by the school. You can learn from your experience, from books and from others’ experiences (both successes and failures). One more, they want to start a small business from the first, long before it became big business. Believe me, you have the same opportunity with me, and with others to be successful, even if you do not have a college education though.
So what are you waiting? Set the determination to open a side business. Right now!

Credit Cards

I was driving the car with my wife on the highway when the car turned the radio on the credit card commercial. The song is a recomposition of an old song and cool enough to listen. There is mentioned, if you frequently use a card, you could have chosen his own gift.

Interestingly, a few days later, I received a letter from a mother. She says she has eight credit cards that are all active! The number of bills were all already almost reached the limit. Well, she almost always run out to pay their credit card every month.
Interesting is not it? On the one hand, there are banks that absorbed advertise and encourage people to actively use credit cards, but on the other hand there are people (and I’m sure not just one person) stuck with a collection issue credit cards.

So, who’s wrong here? Bank issuing a card or the card user? This article will discuss the issues of what can be done by the credit card holder if not careful.

First of all, we mustrealize that credit cards were simply a means of payment. That is, the card functions is the same as the cash you use to pay a transaction. The difference is, the card is a “temporary replacement” of cash. If you buy goods worth USD75 and pay by credit card, the bank issuing card will charge USD75 at the end of the month. Thus, the payment is not made at the beginning when the goods purchased, but when the bill comes later.

Why have this hold a credit card? The main advantage is only one: You do not need to carry lots of cash every time you make purchases of goods and services. Imagine if you have to carry around cash USD500 to USD1,000 in your wallet, while you have to frequently travel by city bus.

Back to the bill earlier. What if you do not pay off at once? There is charges you should pay. It is about 2 to 3.5 percent of the amount of the unpaid bills.
If you do not want to pay off your bills, credit cards usually provide facilities in the form of a minimum payment provisions. The amount varies, approximately 50-10 percent of the amount of your bill that month.

Problems usually begin to appear when you start to get used to are reluctant to settle the bill in full. You only pay a minimum bill each month. While the frequency and value of credit card usage is not reduced but actually increased.

Example, the total usage of credit cards in June was USD1 million. When the bill came, only paid USD150,000. In July, the total usage is USD1.5 million. When the bill arrived, the payoff of only USD250,000. In August, total usage is USD2 million. When the bill arrived, the payoff of only USD350,000. So it went.

Well, because every amount not repaid will be charged interest of about 2 – 3.5 percent per month, then at a certain moment, the number of bills will be very high so that you can no longer afford to pay it off at once. When the number of credit cards you have are many, then the more difficult you to off the hook of bills.

So who is wrong? Is the credit card issuing bank? No, The user is. The problem often lies in the user’s who own card. Many people consider credit card as a means of putting additional money. So, in their minds, have a credit card with a limit of USD 4,000, for example, is like an additional income of USD4,000.

Is that correct? No. The card is just a tool to lieu cash. Each time you use the card, meaning there is less money to pay the price of goods or services you buy.

Indeed, there are some credit card that adds value to the card, such as various insurance, electrical goods, up to a free holiday abroad. Good, but still you should be aware, a credit card function just one: a temporary substitute for cash.

For those of you who currently stuck with a credit card problem, do not blame your card issuing bank. They were not anything wrong. Do not blame yourself too, because let’s just say yesterday that you did not know much about the strategy of using a credit card. What should you do is one: slowly pay off your bills. Contact your card issuing bank because they can provide solutions that best efforts for your redemption.

Mostly, the problem of credit card use often arise because of lack of proper systems of financial management in the family.

Requirements For Submitting Credits In The Banks

When going to open a savings account at a bank, you will be asked to submit copies of identity such as ID cards, driver’s license, or passport. You are also asked to fill out a form that contains data for opening a personal account. The goal is that the Bank has the right information, so as to identify yourself as a legitimate and entitled to perform transactions from your account.
Now what if you want to borrow money from banks? Here, banks lend funds as the party called the creditors and those who borrow funds from the bank called a debtors.

Requirements applying for loans in banks is not as complicated as one might expect. Even the condition is actually quite easy. But of course, there is more data that must be completed than if you open a savings. It is fair, as you will of course cautious and unwilling to lend money away to any person if it is not certain that your money will be returned. It is different if you give it as a donation or gift.

Well, to assess whether the prospective debtor is given proper credit, the bank must obtain the correct and accurate information, such as the character of the debtor, its own funds at this time, the influence of current economic conditions on the debtor’s income, the proposed guarantee, and much more. The principle of caution in lending money is the bank receives credit application and incoming proposals implement. If the application is approve, the customers promise to return money to the bank at any time with interest. Because of that the bank always perform a wide range of credit analysis to assess the credit worthiness that will be given to prospective customers.

Anyone can apply for credit to banks as long as it meets the requirements. In general, the bank divides debtors into two major categories, namely an individual debtor and the company debtor.

The following are the requirements demanded of banks for each class of debtors.

INDIVIDUAL DEBTOR
Individual debtors consists of various professional backgrounds. Doctors, artists, civil servants, fashion designers, architects, private sector employees, merchants, and others. Every professional has its own peculiar characteristics which distinguish banks into three categories, namely entrepreneurs, employees, and professionals.

Requirements requested for each individual debtor are:
1. Copy of identity (ID card, driver’s license, or passport)
2. Copy of marriage certificate (for those who are married)
Banks ask for a copy of marriage certificate for a married debtor is to find out whether the insured property is community property of husband and wife or not, so either the wife or husband may be asked for co-responsible for the property as collateral to the bank following with their debts.
3. Copy of family card.
Same as number 2 above and also to determine whether a prospective debtor also bear the cost of living other than himself.
4. Copy current / checking account at any bank between 6 to last 3 months.
This data is required the Bank to conduct financial analysis of prospective debtors, so it can measure how much income the debtor that can be set aside to pay the monthly loan installment.
5. Copy of paycheck and work certificate from the company.
This provision only applied to a prospective debtor who works in a company, government or private. The goal is to ensure that the prospective debtor was working there and have a steady income every month.

BUSINESS / COMPANY DEBTOR
Requirements demanded, among others:
1. Copy of identity of the managers of the company (directors & commissioners)
2. Copy of TIN (Taxpayer Identification Number)
3. Copy of Business License
4. Copy of Articles of the Company from Notary
5. Copy of Company List

Points number 1 to 5 will be used by banks to check the validity / legality of what is listed on the deed to the field of business.

6. Copy of checking account / current account or savings book at any bank for 6 to last 3 months.

7. Other financial data, such as balance sheet, income statement, record daily sales & purchases, and other accounting data.

Point number 6 and 7 used by the Bank to perform a variety of financial analysis of prospective debtors. Debtor’s ability to pay back its debts will be analyzed from various aspects, such as: the ability to repay short term debt, management ability and effectiveness in managing the sources it has, the ability to make a profit, and so on.

Collateral
When applying for a loan to the bank, usually you will be asked to pledge one of your own property to the bank so if you are not able to repay the loan, the bank will confiscate your property in exchange for the money you borrow. Surely the value of the collateral must be greater than or at least be equal to the value of money you borrow. Guarantee Requested by the Bank for Housing Loan is usually a home that will be purchased. Loans on Cars, then the car will be purchased that is commonly used as collateral.

As for the Credit Business and Multipurpose Loan, the requested guarantees are usually more varied, such as land, houses, shops, apartments, vehicles, factories and others.

To assess whether the proposed collateral eligible, the Bank will assess the proposed re-collateral, the Bank usually has its own assessment team in assessing the collateral, although sometimes also occasionally use from the external assessment team.

Introduction to Bank Credits

Some of you may have read Donald Duck comics. Donald Duck has a very rich uncle named Uncle Scrooge. Uncle Scrooge is an extraordinarily rich so that he could build a huge warehouse that can be used to store all the piles of money, both currency notes and coins. So much money he has, so Uncle Scrooge is portrayed as a greedy person.

This article certainly is not going to discuss about Uncle Scrooge and piles of money. But when we talk about the bank, it could be said that much money may also be owned by the bank where you save money. Even so you do not have to worry about piling all his money in the bank like Uncle Scrooge.

Most of the money in the bank is the customer’s money. If banks keep all clients’ money in one place, meaning the money is not productive. In fact, banks also need to find revenue in order to pay interest on savings and deposits that you store on them. That is why, the bank then “throw” the most money back into the community in the form of loans (credit).

For example, if you save money USD 10 million in deposits, the bank promised to provide an interest rate, for example, 13 percent per year. By banks, in fact money USD 10 million will be “thrown” back into society by way of loan to those who need (such as people who want to open a business or want to buy an item). Loan repayment terms are accompanied by interest rate greater than 13%, say 18 percent.
So the bank will earn income of USD 1.8 million (18 percent from USD 10 million), and of that number, amounting to USD 1.3 million of his will be used to pay interest on your deposit amount 13 percent. The difference of USD 500,000 will be the bank’s profits. Of course, the advantage was still to be reduced again by a bank operating costs such as salaries of employees and others.

Can you imagine how many funds can be lent by the bank when there are thousands of people save money in the bank? In fact, the bank certainly does not throw 100 percent of their clients money in the form of credit. This is because every day there are people who pulled their money in bank deposits. Well, if 100 percent of clients’ money thrown in the form of credit, so if there are customers who want to withdraw their money, then it would be trouble. That is why, the bank must have a supply of cash to keep it available money for customers who want to withdraew his money.

Supplies the cash by the bank will be deployed to all branches and also to the ATM machines. Of course the numbers are limited. That’s why cash withdrawals at ATMs are often limited. If you want to withdraw money in an amount greater than that, you have to come directly to the the bank.

Withdrawal at the bank counter usually not limited in number (as long as your balance is sufficient). However, due to cash-owned banks usually “limited”, then you usually have to give out first (usually the day before) if you want to pull in huge quantities. This is so that banks can provide the cash first.

PRODUCT TYPES OF CREDITS
People can save money, and also can borrow money in the bank. Motifs of loans are different for societies. There are people who loan money to open a business. There are also people who loan for home renovations, buy new cars, buy computers and so forth. The difference of this motive makes the bank create a variety of loan products. Each product is created to fulfill different purposes. Basically, there are three kinds of credit products. Namely:
1. Business Loan
2. Consumer Loan
3. Multipurpose Loan

Business Loans are loans used to funding the business so as to produce something productive, such as trade, home industry, business consulting services, and others. If you have a business that seems prospective, you can come to the bank and loan money for funding your business.

Consumer Loans are loans used to buy something that is consumptive, such as buying a home or personal vehicle. Two consumer credit which is quite popular is the Home Ownership Loan (mortgage) and Vehicle Credit. Of course, because the money will be used by customers for consumptive purposes, then the risk for the bank that its customers can not afford the loan will be larger. So that in general interest rates charged to customers for Consumer Credit will be greater than the interest credit for business purposes.

Besides the two types of credit earlier, there is also a Multipurpose Loan. As written in his name, Multipurpose Loan is a loan that can be used for any purpose. It can be used for consumption or for business. One most popular in multi-purpose loan is Non-Collateral Loan. Do not borrow money from banks usually have to wear a collateral?

In general, if you want to get loan, you have to pledge one of your own property to the bank so if you are not able to return the loan, the bank will confiscate your property which is guaranteed. Surely the value of guaranteed goods must be greater than or at least be equal to the value of money you borrow. But on Non-Collateral Loan, you do not have to submit guarantee items to the bank. You are only required to have a certain amount of income each month and submit a proof that you are indeed correct for the amount of income required.