Thursday, 30 December 2010

Pay Your Bills By Completing Surveys!

The average money you can earn this way is £5-£10 an hour to complete surveys on-line so if you spend 1 hour a day you will end up earning about £150-£300 a month which should pay your bills!

If you don't have anything better to do or you see it as fun, do this then!

Create a new email account rather than using your personal one since you might get tens of emails every day:
  • $30 billion was paid globally on Market Research in 2008 so that's why they're willing to pay for your opinion!
  • A survey company, sends out about 5 invites to a new survey each month so you'd earn more by joining multiple survey companies.

Tuesday, 28 December 2010

Drop Shipping Service

Who does it?

The Drop Shipper who has got the products you want to sell.

How it works?
  • You advertise the product
  • You get the order from a customer
  • You transfer the order and shipment details to either the "manifacturer" or the "wholesaler" of the product known as the drop shipper.
  • The drop shipper drops the shipment order
  • You get notified and provide a positive feedback for the customer
  • Hopefully, customer will leave a positive feedback for you too, otherwise you are better off if negotiating the refund by removing the negative feedback.

Wednesday, 8 December 2010

Characteristics of an Entrepreneur

  • Build a team of people to work with them; supporters and advisers, employees
  • Passion about their idea
  • Comfortable living in a fog; taking risk with 40-70% of information available
  • Persistence and determination
  • ...

Friday, 24 September 2010

How to Write and Publish a Book

Prepare the contents
  • Write the book contents in Word
  • Organize the contents chapter by chapter
  • Design the front page and back page
  • Get the contents reviewed by a Specialist
  • Choose an attractive name for your book
Other materials:
  • Add pictures
  • Create CD/DVD
Publish the book
  • Investigate who your customers are
  • Investigate where/how your book can be advertised
To be researched..

Sunday, 5 September 2010

All about UK Dividend Tax

When a company profits (income - expenses > 0), that money can be re-invested in the business (Retained Earnings) or paid as a dividend to the company shareholders.

When Company C1 pays dividend, should it pay tax?

Corporations should pay Corporation Tax on their profits which is now 20%. This tax is paid before paying any dividend!

When shareholder S1 receives dividend, should it pay tax?

If the shareholder's overall dividend income is between £37,400 and £150,000, then that shareholder has to pay 32.5% tax on his dividend. If the dividend income is less than £37,400 then 10% is the tax.

hmm, if £1000 is your Company's profit you have to pay £200 for corporation tax. So on the remaining £800, you have to pay 10% of it (assuming you're the shareholder) for shareholder dividend which would be £80. Therefore, at the end what you will get is £720 which means overall you have paid is 28% tax whereas if that profit was to be paid via PAYE, then 40% tax should have been paid assuming the shareholder's gross income is over £37,400.

So the tax saving you would make in this way would be 12% on your income above £37,400.

Thursday, 2 September 2010

Permie to Contractor; What Rate?

All depends on your skills, experience, niche and cheek but there is a formula which is ideal:

Salary*7.5/1000 so if you ear £40k a year the contract rate of £300 would be good for you. If you're a first time contractor the coefficient would be perhaps 6.

Also you can check the itjobwatch site for the average rates for your skill.

Wednesday, 1 September 2010

What are the Best IT Contractor Forums?

You always have questions; one way to get your answers is to use forums:

What Insurances Do You Need for Your Business?

Professional indemnity insurance, also known as PI insurance or indemnity insurance, can help protect you if claims are brought against you by a client due to a problem with work you have done for them.

There are few more:

Business Startup: Microsoft BizSpark

Register your company on BizSpark to become a BizSpark partner then you will be able to access all Microsoft development tools such as Visual Studio for free for 3 years.

MSDN Subscriptions:

Average Contract Rate

Saturday, 22 May 2010

All about Bond

Bond is a debt security which is issued by Government or Corporations and participants buy and sell them in the bond financial market.

Bond is considered as a low-return safe investment but it's certainly better than saving your money in a normal current bank account.

Bonds are often called "fixed-income securities".

Issuer of a Bond:
The organization or Government which issues the Bond. The issuer borrows the money and promises to pay it back at the maturity date and with a yearly interest rate.
  • U.S. government
  • Government agencies
  • Companies
  • Cities

Why Bonds are Issued?
Issuing bonds is a way to raise money for e.g. governments to build facilities, bridges, etc.

Nominal Value of a Bond (par value, face value or the principle):
The original price of a Bond e.g. £100. That's what you get on the maturity date.

Interest Rate of a Bond:
The yearly interest rate that a Bond pays to its buyer such as 5%. This is a fixed rate and is calculated based on the Nominal Value not based on the Current Value.

Bonds never return an exciting amount and are not like Stocks. In average they return 5%.

Interest rate types:
  • Fixed
  • Floating
  • zero-coupon bonds
Maturity Date:
The date on which the bond issuer must repay the capital borrowed. It can range from days to years.

Redemption Date of a Bond:
The date on which a bond matures or is redeemed e.g. 1 Jan 2011.

Current Price of a Bond:
Price of a Bond changes over time and doesn't stay as the same as its Nominal Value (original value). The price might drop or rise over time. So a Bond with the par value of £100 might have the current value of £95.

Nominal Yield of a Bond:
This is calculated by dividing the annual income on the bond by its nominal value. So the nominal yield on a £100 bond which pays 5% interest per year is 5/100 x 100 = 5%

A higher Nominal Yield is better than a lower one.

Current Yield of a Bond (running yield):
This is calculated by dividing the annual income on the bond by its current market price. So if the market price of the £100 bond dropped to £95, the current yield on the bond at that time would be 5/95 x 100 = 5.36%. Note that as the market price of a bond drops, its yield goes up.

Current Yield is variable over time.

Redemption Yield of a Bond:
The Redemption Yield shows what the total return on a bond would be if held to its maturity date.

It reflects not only the interest payments a bondholder will receive, but also the gain/loss he will make when it matures.

The income element is the same 'current yield' calculation performed above. The gain/loss element is calculated by taking the difference between the current market price and the nominal value of the bond (e.g. in our example 100 - 95 = 5), dividing it by the number of years til maturity (assume 5 years for simplicity, so 5/5 = 1) and then dividing that figure by the current price of the bond (1/95 x 100 = 1.05%) The yield to redemption is the sum of the current yield (5.36%) and the capital yield (1.05%) = 6.41%.

Bonds Benefits
  • Stable and predictable; unlike stocks - A Bond price doesn't go up and down like Stocks
  • On the maturity date you will get the capital back + all the interests you have already received
  • You can sell your Bonds to other investors which means you can raise cash if you need to
Bond Screening Tools?
The tools provided by companies and website to screen the bond prices using which you can buy bonds online.

Why market price of a Bond changes?



Sunday, 9 May 2010

Understanding Compound Interest

Compound interest can be calculated with the following formula:

FV = PV (1 + i)^N

FV = Future Value (the amount you will have in the future)

PV = Present Value (the amount you have today)

i = Interest (your rate of return or interest rate earned)

N = Number of Years (the length of time you invest)


Assume you have £1000 and you want to invest it for 10 years. You found an investment with 10% return, so after this period what will you have? £1000*((1+ 10%)^10) almost £2,600

If the interest was 0.05%, then after 10 years you would have almost £1,630.

So, in the former example you would have £1600 interest whereas in the later only £630 which is slightly above third of the former although the later interest rate was only half of the former.

Regular Saving

Now, imagine you'd save £1000 every year for 10 years and each year the interest rate would be 10%.

How much will you have at the end of the 10 years?

Tuesday, 27 April 2010

How to Find IT Contracts?

2 ways you can get a contract:
  • Using agents
  • Using your own network of professionals
If possible the later is the best option always. So contact your friends from previous companies and let them know that you're available.

IT Jobs Watch

Monday, 26 April 2010

How to Get Rich

I believe every individual is responsible to get rich if he is not already for this to achieve it requires proper goal, direction and hard work.

How to earn beyond normal salary:
  1. Start a new Company: you need a business idea + hard work + good advice + passion
  2. Win big in a lottery: success probable? the chance is slightly above 0 and less than 0.01
  3. Inheritance: if you're lucky enough
  4. Marry a person who is already rich
  5. Steal it: people with moral values wouldn't take this option obviously even if they are able to do so but of course it would depend on the temptation and the individual personality
  6. Deal it: sometime you can deal what you have with something else
  7. Investment: investing in real estate or stock market. Stock market is too risky, property gives you in average 10% house price increase.
Is there any other way that you can imagine?

Along the way you need:
  • Increase your financial wisdom by learning about finance and business from books, experts, already successful people, reliable websites
  • Persistent Hard Work: if you work hard for 1 week then give up, nothing will change
  • Creativity: this can be developed by using the Dreaming technique
  • Know the opportunities happy to you and grab them; say YES to Opportunities and Ideas. YES let's do it. YES It's possible. YES let's try it. YES, do it screw it.
  • Learn from self-made rich people; how did they become rich - get all information you can about what they are doing now
  • Recognize that time is money
  • When focusing on high-priority tasks, get the job done well, and get the job done fast.
  • Ask for a pay raise or get a promotion; learn to stop being a people pleaser; pushover life
  • Be proactive and react to opportunities appropriately
  • Invest in assets (property, bond, savings, stocks, mutual funds, patents) rather than liabilities (car)
  • Save: a penny saved is a penny earned
  • Learn about investment options: bond, stocks, mutual funds
  • Think Big

Property Buy Sell Rent