Monthly Archives: January 2012

Failure of Ideas

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Many companies delivered many radical ideas, but almost no idea can be realized. Why this happen?

There are two major steps that have not passed smoothly by these companies. First, top management or the company fails to make that idea into a clear strategy and focus. Second, companies do not have the right leader to execute big ideas. The company does not have a leader who dare to take risks and have a commitment to bring these big ideas.

Failure to make the idea being a strategy can be sourced from several things. The most classic is because companies do not prepare for the ability or competence to execute the strategy. They do not have the technology and systems that can turn ideas into opportunities or because of inadequate human qualities. The technology is usually referred to as “hard competencies” and the human quality called “soft competencies”. Let’s look at a simple example in two different industries: first, industrial food/beverage, and second, the banking industry.

For a food and beverage company, launching a new product is very important to replace old products that have entered the death stage in the product life cycle. Companies that are rarely launched new products will not be able to compete in the long run. Therefore, it is important for companies to develop their Research And Development Department (R&D). Only companies with R&D capabilities are strong, will survive in the long run. In this industry, product quality, including quality-taste and texture has already completed 50% of the marketing division work . Good product is good marketing.

Often times, the marketing department then had a bunch of ideas. They wanted to launch a new generation of vitamins! Want to make a new drink! Want to create some a more crunchy biscuits! Want to create new packaging and so on. Wow! Lots of ideas, but all of this does not realize. Why? Simple, the company has no competence. They do not build a strong R&D. They do not have the necessary technology or do not have the qualified researchers.

This is what often happens in a small and medium-scale food/beverage business. They are not able to see a strategy that became the key to success of the industry. They are not able to build adequate competence. In the end, they just a collector of big ideas.

In the banking industry, one key to success is the ability to build banking delivery channels. Customers want a faster and more convenient service . A bank can have dozens of great ideas to make products or services enjoyable to its customers. For example what if the bank can serve the online account opening, how can the bank cope with customer complaints within two hours, how the bank can transact via SMS banking among banks, and a myriad of other ideas.

It is conceivable, these big ideas will stop when the banks were not able to see the grand strategy as the key to success and building technologies and systems in the delivery channel. There will be no idea which is then able to realized into a new service concept without such competence. Banks are able to capture ideas and make ideas into the strategy when it has the competence or at least have the ability to build competency in the delivery channel. This is the importance of having top management, CEO and CMO both a visionary, able to build a competency to transform great ideas into corporate strategy.

The second thing that ideas can not be executed is the ability to deliver the customer value. The idea in the business world is not just a great idea, crazy idea or ideas that seemed brilliant. You may have a great idea to create a drug tablet that size is only 10% of which is now circulating. The problem, if there are consumers who want? Is this small size will provide customer value or even create new problems for consumers?

An ATM can be given music facilities. So, when customers withdraw cash, he could hear his love songs. At first glance it makes sense. Customers will feel happy because getting additional service. But, do customers really want? Have they not, to the ATM usually do not have much time to wait? Is not the customer who listen to the song then will make an increasingly long queues and make other customers feel dissatisfied? A reasonable idea, but not necessarily to create customer value.

An idea or ideas can not be a major strategy of the company is also because there is no adequate ecosystem, especially the customer base. Not surprisingly, many smaller companies that have a bunch of great ideas are not able to realize their ideas. The inhibitors is simple, that they do not have market to throw the products or services to be created. A large number of loyal customers is a most effective ecosystem to absorb big ideas. Again, this is part of the dimension that the customer is the company’s equity for a very large and often well in excess of the company assets.

With the above explanation, you will easily realize why hundreds of ideas ultimately difficult to realize. They stumble when this great idea will translate into a great strategy. Grand strategy can not be executed because the company does not have the competence, there is no potential to become a customer value or lack of enough market to absorb the products of these great ideas. Not surprisingly, for small companies, realizing the idea is not easy.

For small companies, there are two options. First, they are still thinking big. These companies need to establish partnership relations (networking) with the resources that can help them to realize the great ideas. Strategies such as co-branding or various forms of alliances can be an appropriate model for the realization of a great idea. The second option is to limit the big idea to a relatively specific market. Thus, it would be easier for them to form specific competencies as well.

Role of Leader
The failure or success of an idea to be executed is in the hands of CEOs and directors line. No big idea that is realized when the company does not have a leader who has a “gut” in taking risks. The leader is aware that a great idea must have a greater risk as well. However, they dare to live it. This is the first characteristic of the leader who is able to realize great ideas into reality.

Second, to minimize the big risks, the leader will have very high passion and commitment. They have high resistance to trying to realize this idea. They will continue to give support to the team so that together make the idea happen. Leader will be control many details of the strategy and execution of great ideas.

These are the two characteristics of the leader who is very critical to realize the great ideas in a company. Although it seems simple, it is not easy to find a leader who has this. The majority leader has only one feature, or even not both. Many leaders who choose to seek an execution that has been established or prefer to do things that have been proven to deliver results.

2012 Global Economy Preview

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U.S. Economy

The development of economic data in the U.S. shows that the recovery process can continue, amid the global economic downturn affecting the debt crisis in Europe. The combination of strengthening in the labor market, increased consumer optimism and expansion in the manufacturing sector of U.S. economic growth.

  • Manufacturing PMI Index by Dec-11 are at level 53.9, the highest level for 5 months.
  • The unemployment rate per Dec-11 at 8.5%, lower than the per-Nov-11 of 8.7%.
  • Consumer confidence index per-Nov-11 at the level of 64.5, the highest since last 7 months. Improved consumer confidence is expected to encourage domestic spending, and stimulate the economy as a whole.
  • Development of a fairly positive data is at least can be a positive catalyst for the movement of global financial markets, amid the uncertainty of the completion of the debt crisis the European region.
  • There are several factors that could threaten the recovery process in the U.S., among others, fiscal deadlock in the U.S. Congress on the fiscal deficit-cutting plan, further weakening the housing sector, as well as the debt crisis of Europe is increasingly protracted.

China’s economy

Manufacturing and service sectors showed repair, back in the phase of expansion after a contraction the previous month. Implementation of policies that could stimulate the economy became the focus of policy makers in China, as an effort to protect the economy weakened further. In terms of monetary policy, reduction in reserve requirement ratios and interest rates further, the PBOC is expected to be the policy response in 2012.

  • Manufacturing PMI Index by Dec-11 at the level of 50.3, higher than the previous month at level 49. Service sector PMI index rose significantly to a level of 56, from 49.7 the previous level.
  • Annual inflation per-Nov-11 at 4.2%, lower than the previous month of 5.5%.
  • The weakening of export demand from overseas and the implementation of a series of policies to withstand the risk of bubble in the domestic housing sector, have an impact on China’s economic slowdown.
  • Inflationary pressure eased allowing the Central Bank of China (PBOC) shifting the focus of monetary policy, the tight money policy into a pro-growth policies.
  • It is beginning to look to the revelation of Statutory Reserves by 50 bps, to 21% for large-scale commercial banks and 17.5% for small and medium-scale banks. This decrease is the first time since the last three years, after inflationary pressures eased.

Europe Economy

European debt crisis is still going to create volatility in global financial markets in 2012, as leader of the region’s failure to find a concrete solution to the crisis. Policy of fiscal tightening, tightening credit and declining consumer confidence and business burdening economic growth prospects. In 2012, the European economic area is projected to experience a recession with growth of -0.5% yoy.

  • The debt crisis in the European region of protracted worsening impact on investor confidence, which is reflected by rising bond yields in the countries of this region. This resulted in increased borrowing costs for both the state and banks.
  • This condition created a liquidity problem in the European banking system. The banks need liquidity support to meet the funding needs and execute banking activities.
  • The European Central Bank (ECB) to increase its role in efforts to increase liquidity through the purchase of bonds and lending. ECB lending to European banks, with a total value of € 489 billion over 3 years.
  • 3Q11 real GDP grew 1.4% yoy, lower than the previous quarter by 1.7%. Industrial production index grew 1.3% on Oct-11, lower than the previous month by 2.2%. The unemployment rate rose to 10.3%, the highest level since the European region stands. Manufacturing PMI Index is based on surveys by Markit Dec-11 are at level 46.9.

Taken from Jakarta Stock Exchange Review

The Effective And Efficient Ways To Build Links

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I visit SEO blog at least once a week to keep up with what’s going on in the link building community. A webmaster wanted to know the best way to go about securing quality links if he only had a limited amount of time to do so. Since this is a good question and many of us had this experience, I thought this is interesting to discuss.

And I made a conclusion about how to make link building in effectively and efficiently:

1. Create marketing collateral which highlights the benefits of being included on the comparison site and send it to each company partner. Include  copy and paste “link to us” code  and encourage linking by offering an incentive to link. If you haven’t already, ask for permission to use their brand name in your advertising to avoid trademark issues down the road.

2. Search if any of the participating companies sends a newsletter to its customers; if yes, offer to provide link embedded content and/or offer to purchase the mailing list for a promotional mailing of your own.

3. Create the unique content distribute to the article directories.

4. Build a list of media and blogger contacts who write about the similar product of you have. Write to each, describe that you have a comparison service and ask if they’d like to become a guest “expert” in their respective category. If they accept, make a press release announcing their involvement, optimize it with keywords and the name of the blogger. Allow them to make reprint the review on their blogs/sites with proper accreditation.

5. Create a Flickr stream using product images. Make a press release when this resource is up and running.

6. Create a Facebook page for the blog, and use rss grafiti to post your update blog on Facebook automatically.

7. Create keyword searches and brand name searches. Also use keywords in your Social Network bio to attract followers.

8. Invest in an analysis tools for maximizing SEO, such as Alexa toolbar.

9. Write content on everything that linked to your business and put it to a resource center on your site. Promote this content center through your media database, social networks and your potential customers. Add some information “link to us” on these pages.

10. Join and get involved with the sites related with your blog/site. Make a quality comments on their sites.

If you’re not having a lot of time but need links, then focus on getting the attention of sites who can build link popularity to your business in short order.

Choosing Investments to Fit Your Needs

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Each type of investment has some special characteristics, namely the potential yield obtained, the level of investment risk, the ideal investment time period, easy to liquefy investment, and the amount of capital needed.

In terms of ease to liquefy investment, financial asset is easier to sell than real assets. While the terms of the investment period, investment in real assets and financial assets divided by 3 to suit your needs.

For your long term needs, shares and property is the appropriate type of investment because it provides the potential for high growth in investment return. Bonds are a suitable investment for your medium-term needs because it gives you coupons periodically. Meanwhile, for the short-term investments, products such as savings banks are the most appropriate financial products.

Once you understand the benefits of each type of investment, choose one that best suits your financial needs. In addition, you should consider other criteria that you established to make investments.

Kinds of Property Investment

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If you are blind about investing in stocks or bonds, then invest in the property is actually a lot easier.

Investing in property means you do not need to know about the mystery of capital markets and securities. There are only two main parties in property investing: the owners and tenants or buyers. Of the right to use property, the tenant must pay some money to the owner. During the electricity and water still flows and the rent on time, both parties remain happy.

As a new investor, you should consider to get into the property prior to other investment instruments like stocks and bonds. The easiest way is to buy a home, remodeling a bit, then look for tenants.

There are many ways property investors earn extra money without actually working from morning to evening. Some of the categories below are the types of investment property, quoted from that you can consider as an additional income or even your main income:

1. Residential

Invest in residential property means you buy a house, or apartment. The cost of investment in this type is the less expensive compared to other properties. After purchase, you can sum up the tenant or sell it back.

You can perform a variety of reforms to the property before you lease it or market it. Creativity in the remodel determining rents or sale price of your property.

2. Commercial Office Buildings

Investing in property of this kind need substantial funds. Because an office should have some supporting facilities, not just an ordinary house building. Need some renovation if a house be used as the office, except from your initial purchase or build a special building for offices.

Rent office buildings is usually likes by small companies that are still in developing or medium scale companies. The exact location for this office building is located in a high traffic area and not too far from downtown.

3. Industrial Property

Included in the industrial property are parking area, warehouse, and buildings with special use. If you buy properties like this should be leased for long periods of time, because the profits would be higher than you sell it.

Lease on this property have the additional cost from the tenant because the room is used for business so that more benefits for you. In addition, you can provide a self-service drinks machines for extra income.

4. Shopping complex

Property of this type has many kinds, ranging from a small shop in a house, shop building and even up to a big mall. Typically, if you have one of these properties for rent, part of the profits of the tenant also becomes our right, of course, in accordance with their respective agreements. Additional funds from the profits of the tenant is usually played back for the care and renovation of the property.

5. Multi-Use Building

Multi-use building is some combination of the above categories are gathered under one roof. For example, if you have enough money to buy a small building, or maybe some money could be obtained from the bank. So that payment is not too heavy, you can ask the bank to open outlets in the first floor, while you can find a tenant for other floor .

So,pick your property investment for your family financial

3 Fundamental Philosophy Regarding Sales in Retail Business

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In gaining and maintaining customers who shop in our store, it must be understood three basic philosophy regarding the sale, namely:

1. The main target of every employee is to create and maintain customers.
Many people, including salespeople and managers, who believe that the main task of a salesperson is to make the sale. In other words, the sale is something that is important. But creating a sales means creates the dollar sales for the short term, while creating a customer is to make a dollar in the long term. Providing service to customers satisfaction is the process of creating dollars in the long run. Satisfaction that they receive will make them come back again and again to shop in our store.

2. There is a big difference between selling and helping a person to buy.
This is not mere wordplay. The difference lies in our attitude. Sales are typically manipulative, he took the approach, “Let us see what is ours and persuade someone to buy it.” Meanwhile, helping people to buy is through the approach, “Let’s see what is needed by customers and the extent to which those needs can fulfilled by us. “

This approach is not very pressing buyer or sellers. Precisely the buyer actually feel happy with that approach because they feel helped.

3. Humans love to buy, but hate when someone sells something to him.
It has become a matter of course when your home visited by a sales for a specific product offering. His arrival makes you frown because a few days ago the other sales come to offer other products as well, but only used it a few days the product was defective. And you blame the seller because presumed to sell a product that is not good. You think if only if the product is purchased in the mall or shopping center may not be damaged. This is human behavior, always blaming others for their suffering experiences.

Usual and Unusual SEO Tips

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Search engine optimization (SEO) is a basic knowledge that must be owned and understood by those who want to introduce your blog or website. SEO is an algorithm technique which it’s process is to improve our website ranking on search engines. The purpose of SEO is for placing a site/blog on the top rank of the search results on search engines to aimed a lot of visitors. The way of doing this may vary from metatags to add unique content into a site/blog.

Why do we need SEO? Most Internet users use search engines to find needed information. They will enter specific keywords and search engines will identify and display websites content associated with that keyword. Search engine users tend to visit websites that appear on the main page which is actually a high ranking on search engines.

There also needs to be understood that the search engine, Google for example, is not like our eyes that can see the whole content of the site in detail, such as images, video, color, and the writings as a whole, it just read the HTML code that is behind the the pages of your blog/website.

SEO includes on-page optimization and off page optimization. On-page optimization refers to how to structure your pages so that it fits or at least close to the search engine identification rules.

Tips for on-page optimization is:
1. Choose unique a contents and appropriate to the theme of our website.

2. Tag Optimization. Make all the web pages are unique/different from each other and create a description for each meta tag.

3. Update website contents regularly. It is very influential on search engines to use bold, underline, oblique signs, or keyword links.

4. Make a sitemap of our website so that search engines easily recognizable. Sitemap is a page that contains links from all pages that exist on-site.

5. Keep the look simple but it can cover an entire page on our website.

6. Make a variation on the title and content like use Tag in Header and sub-header, or Make a link to the image attached.

Off-page optimization – more reference to factors beyond our website has been designed, and how we publish our website. The main aim of off page is getting quality back links from other websites. It is a network marketing activity.

Tips for off-page optimization:
1. Create and submit articles to article directory.
By submitting articles to article directories, we will usually be given a special column to introduce our profile. This is where we promote our website and get a quality backlink.
Some of article directory are Ezinearticles.com, Article89.com, Articlecity.com

2. Do link exchanges with other active websites.
Doing link exchanges with an active websites will cause the quality of backlink is maintained.

3. Active in forums and social networking.
Forums and social sites are a good place to get a backlink and do link exchanges with fellow members. for example: tumblr.com, digg.com, technorati.com, etc.

4. Submit your website to the web directory.
Web directory is a directory site that lists each website by particular category. Keep in mind that most free web directory which has good quality apply strict rules for every website to register, for example: instead of an adult site, the web must be above the age of 6 months, etc. One of best web directory is DMOZ.org because many sites use DMOZ data and tit is free. Another example: Yahoo directory, but unfortunately you should pay an annual fee.

Some of unusual SEO :

Spamdexing
the use of this technique is unethical because it solely only pursuing a high value on search engines, whereas the site/blog does not provide information that match to the keywords. Risks of using this technique is a site/blog will be banned by search engines.

Key Stuffing
Key Stuffing is a technique to flood a web page with the important words that are usually use by search engines users. The word is made in such a way that does not interfere visitors.

There are several ways the use of this technique :
1. invisible keyword.
This technique most frequently used and most easily.
this technique is to disguise the color of keywords so it becomes the exact color with your website. Search engines does not see a site based on the visual shape but on Source Code (HTML code).

2. invisible link
This technique is done by putting hyperlinks on each period (.) character of our site.

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Gold As An Investment Purpose

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In general, people choose to invest in gold to make profits in the long term. This is due to assessed value of gold is not too large in the short term than investing in the stock market for example.

But there are certain periods where gold in a short-term investments has higher returns, even when compared to investing in stocks or bonds and bank deposits. For example, from early September to mid October 2009, the price of gold has risen more than 10%. This value is much higher than the benefits to be gained from the bank deposits of 6.5% per year. So the benefits of gold investment within one month period is still higher than the benefits to be derived from the bank deposit for one year.
However, we must realize that the price of gold did not rise forever. There are certain times where the price of gold also decreased significantly.

Here are some of the advantages of choosing gold as an investment product:

1. No Counterparty Risk In Gold.
When you hold the gold, you have Tangible Assets that do not depend on others. Tangible assets is becoming increasingly important at the time of financial crisis. Ask the people who put money in Lehman Brothers (U.S.) for example. Also on the people who experiencing serious financial crisis in his country, then you’ll know how important thisTangible Asset in gold form.

2. Purchasing power of consistency.
Say the price of gold fell from U.S. $1.000/oz to U.S. $500/oz, surely other commodity prices such as wheat, oil, etc. also come down. Statistics for centuries indicate a real correlation between the price of Gold at a price of commodities for human needs. So if gold prices go down, you also do not experiencing a decrease in your property, because you will still be able to purchase items as much as when the price of gold before the fall. Hence gold is called zero inflation.

3. Not Depend On The Government Policy.
Differences with Banknotes whose value depends on the decisions of government and bureaucrats of each country, no gold value at all they depend. By holding gold, you do not have to worry about your Government’s decision on interest rates and the like.

4. As an Asset Located Outside the Banking System.
With Gold you have the opportunity to have assets outside the influence of the banking system. We know that banks all over the world without exception developed countries is always haunted by the crisis from time to time. With Gold you will be free of the vortex banking crisis that could arise at any time and anywhere.

Another advantage to invest in gold:
a. Protection of Value Asset
When inflation is high, the price of Gold will rise higher. The higher inflation, higher gold prices. If the dollar exchange rate rose, gold prices will also rise.

b. Most Effective Saving.
Since Gold prices evolve according to the increase in inflation, then gold could safely be used as a means of saving for purposes and financial planning such as: Marriage, Money and Education Children’s, Buying a house, etc.

c. Gold easily obtained and highly liquid
Gold is easy to be bought and resold anywhere. Gold prices across the country are also relatively similar. We can buy gold in Paris and resold in the United States for the same price.

Consider Safety To Reach Profit In The Small Business!

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A small business owner is a risk taker. There is excitement and challenge in this activity, but to succeed you need good management information, managerial ability, and great intelligence to make the right decisions.

How often does an owner or manager actually see work-related deaths, serious injuries or illnesses in the workplace? In some small businesses, the answer is rarely. For this reason, many owners or managers do not understand why there is controversy about the government having occupational safety and health agencies with enforceable laws. But others have learned why; unfortunately, they have experienced a loss. These owner/managers will tell you that it is too late to do anything once a serious accident happens. They have learned that prevention is the only real way to avoid this loss and unnecessary risk taking.

Reducing losses and risks are goals that you as an owner or manager must set in assuring the safety and well being of all in the business. Small business owners and managers place a high value on the well-being of your employees. Family members and personal acquaintances may be part of the business and even hired employees will become almost like family as time goes by.
Investing in safety and health activity now will better enable you to avoid possible losses in the future.

Nobody wants accidents to happen in the workplace. A serious fire, a permanent injury, or the death of an employee or owner can cause the loss of profit or even an entire business. To prevent such losses, you don’t have to turn your business upside down. You may not have to spend a lot of money, either. You do need to use good business sense and apply safety prevention policies. There are reasons why accidents happen. An accident always has a cause and a reason why. Once you know why an accident happened, it is possible to prevent future incidents.

The business needs a plan to prevent accidents. Not all dangers at the workplace depend on an accident to cause harm, of course. Worker exposure to toxic chemicals or harmful levels of noise or even radiation may cause gradual illness over a long period of time. There needs to be a plan that includes prevention of these unseen health hazard exposures. There needs to have a safety and health management system. It is not difficult to develop such a plan. Basically, the plan should address the types of accidents and health hazard exposures that could happen in the workplace. Because each workplace is different, the program should address the specific needs and requirements for the business.

There are four basic elements to all good safety and health programs. These are as follows:

1) The manager needs to lead the way, by setting policy, assigning and supporting responsibility, setting an example and involving employees.
2) The workplace needs to be continually analyzed to identify all existing and potential hazards.
3) Methods to prevent or control existing or potential hazards are put in place, maintained, and updated.
4) Managers, supervisors and employees need to be trained to understand and deal with work site hazards.

Regardless of the size of the business, the plan should use each of these points to prevent workplace accidents and possible injuries and illnesses. Developing a workplace program following these four points is a key step in protecting you and your workers’ safety and health. If you already have a program, reviewing it in relation to these points should help you improve what you have.

Following this four-point approach to safety and health in your business may also improve efficiency. It may help you reduce insurance claims and other costs. The plan will certainly give you a way to express and document your good faith and commitment to protecting your workers’ health and safety.

This approach usually does not involve large costs. Developing a health and safety protection plan does not have to be expensive and generally does not require additional employees, especially in smaller businesses. Safety and health can be integrated into your other business functions with modest effort on your part and will become part of the daily routine.

The key to the success of a safety and health plan and program is to see it as a part of the business operation and to see it reflected in the day-to-day operations. Once implemented, the safety program will become second natured to the owner as well as the employees.

Have You Made A Financial Planning For You and Your Family?

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Of course we frequently hear Of course we frequently hear advice from expert lecturers and religion “do not put off what must be done. Always pray and ask God, because no single person knows how long he will live. Never mind tomorrow, an hour or so we never even know.”

What the experts and religion say is certainly true. Five years ago, a friend who came to me, asking for help to arrange credit insurance house. His sister named Ida has just died. Previously, Ida is my clients as a life insurance policy holders when she not married. When Ida’s getting married, he took the cash to lay off insurance policy to supplement the cost of her wedding. In 2003, Ida and her husband finally decided to buy a house and take out a loan from a bank. Based on the their discussion, the house and the mortgage is taken on behalf of Ida. When Ida was pregnant for second child, aged 5 months pregnant, according to the requirements for taking a loan at a bank, Ida buy life insurance to cover the entire amount of the loan from an insurance company that has been designated by the Bank. After finishing the procedure, then the funds disbursed by the Bank and the house ready to be occupied by Ida and her family. Comes the time of delivery. For one thing, Ida must go through the process of Caesarean section in childbirth. The cause of bleeding after surgery, Ida dies leaving behind a newborn baby, the first child aged 2 years, and beloved husband.

Already hit by the ladder to fall anyway, so the saying goes. In extreme grief, the husband called his mother to help take care of her two children. Before his grief ends, the husband got the news that the house occupied would be confiscated by the Bank, because the mortgage has not been paid for several months.

Oh, God … why is that? Did not I buy insurance to protect family financial fund in case of disaster like this? Investigate a calibaration, after I ask all insurance documents, it turns out when it filed an application for insurance, did not write down the condition that the deceased was 5 months pregnant.

One more story that I wanted to share with friends. When my eldest son will face State Examination in year 2005, I was contacted by one of the parents. He asked me to be able to contribute a donation to one of the kids in my eldest child’s class. The reason is, we call it the name Magdalena, can not take the test because she has not paid school fees for 2 years, and examination fees. After collecting enough funds of about ten parents, Magdalena finally able to take exams.

I asked: “Why she did not pay for her school?” Apparently the mother of Magdalena had breast cancer. After 3 years of illness, she died. So what the connection with Magdalena school tuition? His mother medical expenses, spending all the wealth of his parents, homes, cars and even leaving the debt to the relatives. Finally, Magdalena and her family lived in his grandmother’s house. To note from this experience is, that the sick and death is a housewife and not a wage earner (not working). What happens when a person suffering from illness and death is the wage earner?

Obviously we are concerned with the second story above? Why did this happen? Why beloved family become homeless?. Is there a way out of the conditions above?

almost everyone gives reason that they do not require insurance, or they do not want to set aside money to buy insurance. Many people who only rely on insurance provided by the company where the work or the government.

Many people who has not realized the importance of insurance for their families. And if something unexpected happens, they say that it is fate. Back by any religious leader, that fate can be changed.

What effort that can be done to protect loved ones from financial crisis? Especially for someone who is a breadwinner for his family.

The things above are not going to happen when a family has:

1. Life insurance for the breadwinner (male or female) and total permanent disability insurance. Necessary insurance is life insurance that is sufficient to help the families left behind to rise again. Its magnitude depends on spending a family. Minimum sum assured for life insurance spending a year x 5 years. With that much money, can help the family bounce back from adversity as a breadwinner dies or gets total permanent disability. The larger the sum the better.

2. In the case of Ida, a person applying for a loan installments to acquire assets (houses, cars, motorcycles, etc.) required to buy insurance to protect assets that have been collected. It must be owned by a family that has a loan, so that if the borrower dies, the assets are not seized by the bank or leasing, because the rest of the loan has been repaid by the insurance company.

3. Fill out all forms of insurance filing in accordance with current health condition of the signer. Do not ever want to sign any forms if you have not read the contents. If any borrower has an existing illness, or in a pregnant condition, write truthfully health conditions in the insurance application form. If there is one thing that is not filled out incorrectly, and the policyholder dies, the insurance company will not pay the claim, because it is considered to have occurred lies. Why is that? Because insurance premiums from individual who have the disease is more expensive than healthy individuals. In this case the insurance protect your assets.

4. In a family, father and mother must have critical illness insurance. Large sum assured should not modest. Calculate how much the cost of operating when exposed to cancer, heart disease, kidney failure or other critical illness, then add to the cost of post-operative (post-surgery treatment costs). For example: $ 2,500 for operating expenses, medical expenses for 10 years is $ 1,000, then money to claim is $ 3500. Why does critical illness insurance is needed? Because critical disease can erode the assets that have been collected for years even decades.

5. Health insurance hospitalization. Not only critical illnesses that require a lot of money, but the outbreak of disease that needs to be treated in a hospital requires no small cost. Buy health insurance to protect your savings and paper assets. If health insurance is obtained from the company are sufficient, you do not need to buy health insurance again.

6. After all adequate, plan cost of your children’s education. The formula that can be used is insurance education, relationship education or other programs, especially for college. Its magnitude can be set taking into the element of inflation. To ensure that adequate investment in education costs and can be used just in time, you can request assistance from the Financial Planner, or you can also buy software specifically designed to calculate the cost of education.

Do a review of the sum assured at least 2 years. Likely because of inflation, insurance money held its value is reduced two years later.l