Friday, October 24, 2008

Be a SMART financial planner

Newpaper highlight that global ecomony is going downturn and we will having a recession soon. As a normal people live in the world, what we can do about it. With inflation going on now, goods price rise, RM currency not stable and many more. Not much we can do expect protect our money. But if we kept our money without make it grow, we still having the same issue.

What we can do now, in fact long time ago, is to manage our money in a SMART way. S=SECURE, M=MEASURABLE, A=ACHIVEABLE, R=REALISTIC, T=TIME (resource from B.M.W). To be able to be SMART, there are a few ways, either we invest our money in unit trust, ASB, stock, buying insurance or any other things that can growth our money. However, not every investment is SMART. We have to know which one is suitable for us and choose the correct one.

If we have 1 million in our hand but we did growth the money, the inflation will eat up the value of your money. Maybe what you have today, let say 100 thousand can be only 50 thousand in value after 10 years. So, we have to do something to overcome the inflation.

There is one kind of investment which can give you high return with lower risk and not related to market flactuated. This investment is related to land. We know that land will never depreciate in value and land value will go against the inflation. This investment is consider as a SMART because it is low correlated to market, high return and hassel free. It is mid to long term investment with minimum 20% p.a for the return.

So, be SMART when dealing with your heart of money and make a wise decision before put your money somewhere.

No comments: