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Why a Budget is Not the Same as a Financial Plan

A Budget is Not the Same as a Financial Plan

The terms “budget” and “financial plan” are sometimes used interchangeably. However, in my mind, there are differences between the two. I have a budget for each month, along with an over-arching financial plan. To me, a budget is more of a short-term spending plan and a financial plan is long-term with multiple goals and steps along the way. Here are some of the differences between a budget and a financial plan. Budget First, let’s talk about what makes up a budget. A budget is a listing of your expenses and financial obligations and is a guideline for your spending. It may contain categories, like housing, utilities, groceries, etc. In addition it is usually for a specific time period, such as a monthly budget or a weekly budget. Generally your expenses are broken down into a budget and then totaled so they can be compared to your income for the same period of time. In this way, income and expenses can be compared so adjustments can be made to help you achieve balance in your personal finances. Financial Plan Now let’s examine what a financial plan is. A financial plan helps you to evaluate your financial state using your budget as ...

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Facing the Challenges of Crowdfunding

One of the greatest advances in online fundraising has had to do with crowdfunding. Many success stories of crowdfunding have left many fundraisers wondering about the possibility of raising lots of money within very short periods of time. The questions that most fundraisers that are considering crowdfunding include: What needs to be done for a successful crowdfunding? Or will my crowdfunding mission fail? The truth is that not all crowdfunding attempts succeed and neither do all of them fail. There is no one secret that one can use to succeed. It all depends on knowing when to do it and which approach to use. There are many crowdfunding challenges when using a fundraiser and the biggest one is convincing those who are giving the funds to do so. The cause could be great and genuine or the project creative enough, but if it is not presented or pitched in the right way, the fundraising campaign can fail to catch the attention of contributors. The following tips can help you make a successful pitch when crowdfunding to raise money. Narrow you goals Some of the goals that fundraisers place are too general to an extent that they present lots of ambiguity. ...

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How Wealth Management Around the World Has Changed Recently

Changes in global wealth management

The past few years have been rough on the global economy. First, most countries dealt with a market crash and now, the market is recovering slowly but surely. The outlook is positive, as most countries have seen a growth in GDP. In particular, private wealth has grown remarkably well in the past few years. Many countries experienced double-digit growth in this sector. The market crash didn’t just affect smaller companies, but also large international ones like J.P. Morgan global wealth management and many others. Investing has been responsible for much of the growth in private wealth. This has allowed many new online brokerages to enter the market and compete for a share of the wealth management. Eastern Europe Eastern Europe is largely dominated by Russia both in mass and growth. In 2014, Russia’s private financial growth equaled 25%, which accounted for 71% of the area’s entire private wealth. Russia’s GDP grew by 8% with bond returns equaling 31%. Overall, Eastern Europe experienced a 19% increase in private fortunes. Poland, Slovakia, Hungry, and the Czech Republic had single digit growth of 8% or less. The entire region put a large part of its wealth in bonds as opposed to cash deposits or equity. Western ...

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The Royal Family Of Building Wealth

royal family of wealth

Building wealth is an impressive goal and how we go about achieving that goal is incredibly important. Since the real royal world is busy with baby watch, I thought we’d make up our own kingdom today. Do you want to be the king or queen wealth builder or do you just want a place in courtyard? Let’s look at some steps that make up the royal family of building wealth to see where you rank in the hierarchy. Queen of Wealth In support of gender equality, the queen gets to go first today. The queen of wealth has to be income. Without it, there’s really no hope of ever being financially secure. It might be fun to joke about quitting work to go on the dole, but no one really wants that option. Most people get income from some sort of employer. Steady paychecks can be wonderful things, but you rarely have control of your income after accepting a job. There might be promotions or raises, but all in all, you’re takin’ what there givin’ if you’re working for a livin’. I think that’s why freelancing appeals to so many people in the financial community. It’s more risky, but you ...

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