Money working for you

As always, we always do a way to increase our cash flow. We venture into different kinds of investments without even thinking about it. When someone offer us a great return of investment, we always get blinded and, eventually, joining it. But the real money working for you is just in the tip of your palm. Your hard earned money is your greatest asset in making it work for you. Down below are the different kinds of money working for you.

1. LOI – Living on Interest
In this kind of investment, hard earned money put in a bank will have a great return of investment in a slow percentage. For example, a person have a P20,000 cash at hand and put it in a regular bank having a .8% per annum interest rate. So what will be the income? P160 divided by 12 months, which would be P13.33.

But if you earned about P2 Million pesos after retirement & put it in a bank with an interest rate of about 12% per annum. That would be about P24000 Per year divided into 12 months… Perfect! a P20000 per month income. Is that even for money to work for you? Then have a P2 Million. *sigh.

But true enough we are not born with a P2 Million at our hands that is why our solu-tion is to learn the basics of finances in our office. Please do contact us for additional knowl-edge or if you want to schedule a lecture regarding money working for you.

2. LOR – Living on Rentals
Another kind of investment is on rentals. If you have at least 2 Condominiums with a monthly rental fee of P20000 then a person would have a P40000 cash at hand, right? But the question is where will you get the capital for building a condominium type of house? Would you get it in a bank loan? I guess not. It is too expensive. A minimum amount of a condo type of house is ranging from P2 Million above. & another dilemma around condo type home is the rate of occupancy? Is it occupied now & then? How about the life span of a building, would you consider it if you would like to pass it on to generations? Those are your questions. But our hope is, upon, disciplined saving practice, we would be able to achieve those goals.

3. LORI – Living on Royalty Income
My last topic about money working for you is LORI (living on royalty income). This kind of asset is hard to achieve. Those we believe that have a royalty income are those people who are already in the history. Like for example, Elvis Presley. His music have royalty fee if it will be used in public or if his record will be sold in a record store. Another kind of businesses that have royalty incomes are Mcdonalds, Jollibee, Starbucks, and etc. The income generated from them are called royalty fee. One franchise of Mcdon-alds have a royalty fee to Mcdonald’s USA (mother company of mcdonald) is about 5% if I’m not mistaken. So per day, if for example an average income of the store is P200,000. The 5% of it, which is, P10,000 monthly times the number of stores all over the Philippines & around the world. So would you like to have a royalty income? Yes you can. We can teach you how.

Those are your money working for you concepts. I know there are a lot of them to mention, but these are the essential ones. I hoped you learn from our sharing and we hope to hear from you!

Pinoy Financial Solutions is a website that teaches fellow people about basics of finances. Come and See you!

Article source: http://www.igxe.com/news/game-news-46418.html