Creating Your Financial Destiny
Would you like to be wealthy? I used to think that being wealthy was just a dream or a wishful thinking and for years I wondered why I was not rich. Although money is not everything in life, it can cause stress, relationship strains or even divorce. The reality about money is that the more control you have over your finances, the fewer money stresses you have. And less stress translates into more happiness.
Here are some simple ways to create your financial destiny:
1. Have the right perspective about wealth
Have you ever sabotage your own success? If you invest in stock market, after you have accumulated so much money then you lost them all in the wrong investment or after you save hard earned money then you spend them all? Some people have an inner belief that money is the cause of all evils so that they feel uncomfortable to accumulate wealth.
I thought that people who do not need money are those who are grateful and happy but now I perceive them as selfish. You might not need more money but how about other people? If you can be the channel of blessing to others, why don’t you? Isn’t life much bigger than me, myself and I? Since money is a tool that can be used for good or bad, it is of paramount importance that we have the right perspective about money and how we are to use it. There are many things we can contribute to our society to make our place a better place for living and they require money. Having the right perspective about wealth and strong reasons to accumulate wealth allow us to find opportunities and stop sabotaging our financial success.
2. Organize your finances
Do you organize your financial filing system? Keep all the receipts and organize them into several wealth categories such as investment, monthly expenses and bank statements. There are software such as quicken or microsoft money that can help you track your expenses and incomes.
Develop a habit to have financial planning on the monthly basis – how much should you spend for food, transportation, bills, personal expenses, etc. Budgeting, tracking your expenses, balancing your cheque book and paying your bills on time translate into better saving.
3. Spend wisely
Before you can determine how much you can spend monthly, you need to figure out your net worth. In other words, find out your overall financial condition. Begin with a list of your assets: possessions (and their fair market value) that you own and could sell. Then make a list of your debts: the amounts you owe to creditors (banks, mortgage companies, car finances, stores, credit cards and the like). Subtract your total indebtedness (the total of your debt list) from your assets (the total monetary value of your asset list) and you have your net worth: a summary of your financial condition.
If the combination of your assets and debts is a positive number, you have a positive net worth. If it is a negative number, you are in debt. If you have a significant amount of debt, regardless of your net worth, you need to prepare and follow a budget that will help you improve your financial standing.
We are bombarded with marketing techniques that encourage you to buy now and pay later and convey a “you deserve it today” mentality and approach to life. That fancy watch may make your appearance look smart but if you can’t afford it, it’ll give you lots of headache later. Many people get hooked with spending as their stress level increase. There is a popular statement ‘when the going gets tough, the tough go shopping.’ It is an instant gratification that will cost you when the bills come. Warren Buffet, the renowned investor, always thinks of how much this money will turn into if he invested. Having the self-discipline to delay gratification is one of the most important habits to your financial destiny.
4. Use credit card smartly
It is astonishing to learn the numbers of bankruptcy caused of the misuse to credit cards. Sadly, it also happens to college students and young professionals. Some experts urge people to return credit cards and some people even pledge never use them again. This is unfortunate because there are many advantages of using the credit cards such as you can have your expenses printed monthly and you can earn points that allow you to shop for free or buy things at the discounted rate. However, you must pay whatever you charge that month when the bills come so that you don’t have the debt. No installments.
If you have debts in your credit cards now, calculate all of them and plan to pay the principal (the amount borrowed) on the outstanding balance within a period of time. Start with the least you owe so that you can clear the balance faster and target to pay off the next credit card.
5. Save at least twenty per cent of your income
If you wait till the end of the month to save then the chances are you never make it. It is not how much you make that make you wealthy but how much you can save and invest. A janitor who can save one hundred dollar a month is richer than a millionaire who spends all of his money.
When you’re saving money, your control over financial matters gets stronger and stronger. The easiest way to save is to get that twenty per cent out of your hands before you have the chance to spend it. You can have two accounts, use current account for daily spending and set up automatic transfer that takes twenty per cent into your saving account.
6. Work towards your financial goals
Visualizing what you want is the first step in setting goals. Your financial goals must be STAMPS: specific, time-limited, action-oriented, measurable, purpose-driven (reasonable), stretching (challenging). Setting a goal of “buying my first house soon,” is too vague. Deciding you want to “buy a beach house in five years is better.”
Write down your financial goals and place it in front of your work area so that you can see it many times daily. Having it as a screen saver in your computer allows you to picture it in your mind every time you want to use your computer. Next, figure out what steps you need to take to achieve them. Break them down into manageable parts. Small bite is easier to chew.
7. Create passive income
Your financial destiny should include financial freedom in which you do not need to work a single day for money. Would that be great when the days come you only work because you like what you are doing and not because you are required to do it? You need to accumulate substantial amount of money that will generate income that will sustain the life style that you desire. Most popular passive income generators are bonds, stock dividends, real estate rent and internet business. You need to find one that is suitable to you. Indeed, educating yourself will open up your mind to all of the possibilities that you never think of before. In the age of information, we can get so much updated information in unimaginable speed. Of course, you need to invest time, energy and money to educate yourself in order to create your financial destiny.
FREE report on the internet business http://www.wealthywinningwomen.com
Article Source:
http://EzineArticles.com/?expert=Tessie_Setiabudi http://EzineArticles.com/?Creating-Your-Financial-Destiny&id=80985
