Start to control your finances
This is the first step should be to start to take financial control, and then build your financial plan.
Step 1: The Basics
One of the main goals sought by men is financial freedom. And what we call “financial freedom” right? We can define as:
“The moment when the passive income generated by a person, which includes the cost of their lives at this time” Capital of the originally working hours, rather than spent on the purchase or service that is used to generate passive income that will be paid several times. At first, some income from the activity (work hours) to provide resources for the capital assets (stocks, bonds, own business, real estate, money), which then generate income passives. A simple is that. It’s easy to understand. Not so easy to carry …
Step 2: Is my current financial condition?
The best way to start is taking a snapshot of my financial condition at this time. Important here is indeed, even “hard” which is a reality? This snapshot is called Balance, and has two columns: Assets and Liabilities. Assets in all assets that you own (all have one), and all other debt obligations that have been purchased (all one needs). Regardless of income level, we can always control and spend less than we won, to use our part to build financial freedom.
Step 3: debt: take control
After duty in the field of balance, we identify all the debt. We must make a payment plan, and things that do not create new debt. For the latter, it is important to keep one credit card, which will pay the total bill each month. If we have more than one, the remaining balance for the payment of debt into the plan. You can choose to pay the first debt that has a higher interest, but more importantly they do not generate new ones.
Step 4: Increase in income and cost control
Your ability to generate cash directly proportional to the value you offer, in accordance with market perception. Quick Cash Flow quadrant again, by Kiyosaki, as shown, to determine how to generate income. To control costs, and aims to reduce this method to start saving their notes, with many details as if we believe we are spending too much. Should not focus on small details, all choose to focus on increasing revenues?
Step 5: Savings: I pay your own
Finally the first steps to self-paid: save.
Saving is what makes the difference, because it will enable us to build our asset column, we will be very valuable to Financial Freedom. We need to save at least 10% of our income. Here is a word so dreaded, but so interesting: INVESTMENT is important that our savings are invested, not only to preserve the capital, only enhanced and protected.
When you invest the money and allowed to grow with interest if the rich again. Every purchase of the number of shares of a company means the company has a share. After we collected three to six salary saved for an emergency, we must begin to invest our savings. What should we do based on personal financial plan, covering all aspects of life to achieve your goals?
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