Which of These 4 Components of a Complete Building Wealth System Are You Neglecting?
The economy has been in a recess lately. Many folks are getting cut from their occupations. A lot of people are selling their houses, working side jobs, and decreasing the quality of their way of life.
Is this happening to you? Are you suffering any of the warning signs above? If you are, then it's time to take on your personal finance into your own hands.
The truth is, you have always been personally responsible for your personal financial matters. Maybe you avoid taking charge of your personal wealth and welfare, and for that reason become stressed when the economic climate takes a switch for the rough.
You complain and you condemn, but nothing changes.
You could have avoided a lot of anguish. If only you had created a solid wealth building plan early in your life or career, you would be in a much more advantageous financial position.
Is a good wealth building strategy in your thoughts yet? It's always a good time to start today! Having a strategy is essential if you want to secure wealth for yourself and your family.
Here are the most important four straightforward, winning wealth building strategies that works for everyone:
A budget is the first thing you need
Making a budget to record your income and spending is the most basic strategy you can do.
Many people spend their money almost randomly, without any thought about how much they actually spend. Without a budget, you won't have a clear picture about where your money is being spent.
To start knowing where your money is being spent, write down your sources of income. After that, write down the things that you buy and other expenses that are part of your monthly spending.
From this list, sum up your income and expenses then subtract your income with your expenses. Your aim is to have a positive number, which means your income is bigger than your expense. If you have a negative number, then go through your expenses list and find out what expense you can reduce or even cut out completely.
Put your extra money inside a savings account
When you have a positive number, it means you have extra money at the end of the month.
What do you do with this extra money? You can be tempted to spend it on a treat for yourself. Rather than that, save your money and put it somewhere safe like a savings account.
This will help you have increasing financial wealth. If previously you always spent more than you earned, now you can start to build a small savings account. The main benefit of this simple act is that you also start to increase your self confidence and self esteem.
No matter how much money you can save, even if it is only a small amount, you must save it. Don't use it for frivolous spending. The more money you can save, the faster you can move on to the most profitable wealth building strategy.
Establish control over your credit balances
I'm a man that prefers cash up front. I have a motto that says if you can't afford to buy it in cash, then don't buy it (except for critical items like a house, school tuition, and a car).
Many people though do live with debt. This is the kind of debt that makes them unable to sleep at night. The most common random strategy to pay off their debt is to borrow money - make even more debt!
This is a terrible negative circle that make people miserable. Control your debt so you don't enter this negative habit. By controlling your debt, you can reduce it step by step and eventually become free of debt.
You can control your debt by paying off your smaller debts. Paying off your small debts is easier to do and will boost you with a sense of accomplishment and confidence.
If the debt is big enough, paying it off could take a very long time. This means you must have patience and be persistent. Don't lose focus and stay on the path to reach a debt free life.
Plus, being patient and diligent is an important character for the most important of these four wealth building strategies.
Smartly invest the income you save
Only a small number of people ever get to invest the money they save. This is because not many people have the patience and wisdom to plan for their financial future.
However, being able to invest is not a luxury at all. It simply means that you are starting to reap the rewards of patiently making a budget, steadily saving money, and reducing your debt.
Investing your money is very important to create more wealth for your present and your future. The purpose of investing is to leverage your money to create more money, without active participation from your part.
You can choose from many investment instruments, such as investing in paper assets or in property assets and businesses.
Make sure you educate yourself before jumping into any investment. Many people make the mistake of going the popular route, only to have their hard earned money disappear due to ignorance. Educate yourself so you can find the right investment instrument for you.
Once you start to receive the results of your investment, repeat the process! Look at your budget again, save even more money, pay off your debts, and increase your investment value. These are the 4 essential actions that can bring you better wealth and financial security.
Is this happening to you? Are you suffering any of the warning signs above? If you are, then it's time to take on your personal finance into your own hands.
The truth is, you have always been personally responsible for your personal financial matters. Maybe you avoid taking charge of your personal wealth and welfare, and for that reason become stressed when the economic climate takes a switch for the rough.
You complain and you condemn, but nothing changes.
You could have avoided a lot of anguish. If only you had created a solid wealth building plan early in your life or career, you would be in a much more advantageous financial position.
Is a good wealth building strategy in your thoughts yet? It's always a good time to start today! Having a strategy is essential if you want to secure wealth for yourself and your family.
Here are the most important four straightforward, winning wealth building strategies that works for everyone:
A budget is the first thing you need
Making a budget to record your income and spending is the most basic strategy you can do.
Many people spend their money almost randomly, without any thought about how much they actually spend. Without a budget, you won't have a clear picture about where your money is being spent.
To start knowing where your money is being spent, write down your sources of income. After that, write down the things that you buy and other expenses that are part of your monthly spending.
From this list, sum up your income and expenses then subtract your income with your expenses. Your aim is to have a positive number, which means your income is bigger than your expense. If you have a negative number, then go through your expenses list and find out what expense you can reduce or even cut out completely.
Put your extra money inside a savings account
When you have a positive number, it means you have extra money at the end of the month.
What do you do with this extra money? You can be tempted to spend it on a treat for yourself. Rather than that, save your money and put it somewhere safe like a savings account.
This will help you have increasing financial wealth. If previously you always spent more than you earned, now you can start to build a small savings account. The main benefit of this simple act is that you also start to increase your self confidence and self esteem.
No matter how much money you can save, even if it is only a small amount, you must save it. Don't use it for frivolous spending. The more money you can save, the faster you can move on to the most profitable wealth building strategy.
Establish control over your credit balances
I'm a man that prefers cash up front. I have a motto that says if you can't afford to buy it in cash, then don't buy it (except for critical items like a house, school tuition, and a car).
Many people though do live with debt. This is the kind of debt that makes them unable to sleep at night. The most common random strategy to pay off their debt is to borrow money - make even more debt!
This is a terrible negative circle that make people miserable. Control your debt so you don't enter this negative habit. By controlling your debt, you can reduce it step by step and eventually become free of debt.
You can control your debt by paying off your smaller debts. Paying off your small debts is easier to do and will boost you with a sense of accomplishment and confidence.
If the debt is big enough, paying it off could take a very long time. This means you must have patience and be persistent. Don't lose focus and stay on the path to reach a debt free life.
Plus, being patient and diligent is an important character for the most important of these four wealth building strategies.
Smartly invest the income you save
Only a small number of people ever get to invest the money they save. This is because not many people have the patience and wisdom to plan for their financial future.
However, being able to invest is not a luxury at all. It simply means that you are starting to reap the rewards of patiently making a budget, steadily saving money, and reducing your debt.
Investing your money is very important to create more wealth for your present and your future. The purpose of investing is to leverage your money to create more money, without active participation from your part.
You can choose from many investment instruments, such as investing in paper assets or in property assets and businesses.
Make sure you educate yourself before jumping into any investment. Many people make the mistake of going the popular route, only to have their hard earned money disappear due to ignorance. Educate yourself so you can find the right investment instrument for you.
Once you start to receive the results of your investment, repeat the process! Look at your budget again, save even more money, pay off your debts, and increase your investment value. These are the 4 essential actions that can bring you better wealth and financial security.