Personal Money Management
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Please allow me to start with few scenarios.
During the end of the month or early of the following month, people are rushing to banks. They are busy with mortgage loan payment, car loan installment, credit card repayment, etc. After their busy monthly schedule of paying day, one most widely used question pop up in their head: How much have i got left for the rest of the month? Can it sound familiar to you? Do you think you're one of them who come and go of several banks as soon as you receive your salary, in order to pay off your bills? Should you choose all that for a reason and you're simply happy with it, it's fine. But the problem is, which is not fine for most of us.
You walk into a shop. You see something eyes catching, something you have been wanted to own for therefore long. A sales representative approaches you and started his/her sales take, never to forget those "If you purchase now and make up a full payment now, you will definately get these free gifts plus ....." nice offers. You wanted to pull out your plastic card and have it on credit. But wait! If you bought it, it's likely you have to sacrifice your lunch, forget about month end get away trip, no more golfing on your weekend, etc.
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The scenarios can continue and on but it is not the goal of this material to upset people. So, allow us to move on.
The Gap The indegent are getting poorer as the rich are getting richer. Exactly what is the reason behind this scenario? The simple answer is. Rich people treat money differently from poor people. Rich people manage their money quite differently from how poor people manage it. Before we get into the detail of how to control your money like rich people, we must do a little self examination.
Precisely what is Your Financial Status? In businesses, we look at the financial status of the company by taking a look at their balance sheet. Balance sheet is often a piece of paper that records incomes and expenses of an company during a particular period use of operation. The status of an company is displayed by the number at the end of the sheet. It's what a company have in balance by taking all incomes minus off all expenses.
Did you know that you have a balance sheet of your? That is right, your bank statement. It records all transactions of cash that go in and out of your bank account. Let us do a quite simple exercise now. Check out your balance in your account. Does the number show at the end of your little booklet allow you to proud (Ok, you can examine it online as well.)? Think that number is sufficient? The number of days can you survive should your boss suddenly decides to get you off? Your boss will give you decent reasons behind that. But the truth is since you are expensive to them now. Your salary is a big number in their balance sheet, categorize under "Expenses".
This is actually the Basic Idea Most people never manage their cash well because it seems challenging to manage or it simply doesn't seem necessary to manage. The good news is, everyone can manage their money as well as those who are efficient at it. You are not efficient at it at the moment simply because you do not know how. You may have your way of manage your hard earned money, but does it effective? You might have gone to a good university. You may have got yourself a good degree. The simple truth is, you never learn how to manage your dollars well in college. At most, the professors teach business student the way to calculate the balance sheet and keep it in check for other people, for the rich people.
That's not me implying that you don't should study. I strongly think that knowledge is the source of power. With great power, you can do mighty things. Just that, maybe it is time for you to start manage your dollars like those who keep it in check well and get their solution of the undesired situations i mentioned above? I believe for many people, the money we have is definitely insufficient. If you feel that you currently have enough money to call home with, you may want to get it to a next level. Should you be constantly short of money throughout the end of the month, or you think you have enough money but still need a little extra, this is the correct book in your case.
Self Awareness - Knowing What you are and Why You Are Who You Are Remember that I enquire about your financial status previously? That is because you need to know where you are before we begin. If you don't know perhaps the money you have is sufficient or not, then you will be being a boat lost inside the ocean without a compass to point you a direction.
Were who we are and where we are for a reason. Which means you do not have enough money to reside with. Blame it to your education level. Blame it for your boss who never offers you a good increment or promotion. Blame it to the economic condition. Blame it to fate. Please forgive me for the little detour here. In my opinion most of us went through exam during our school time. The fact that was the most common reason for those who did not manage to get good grade on their own score sheet? It usually went something like these:
Only had enough time, I can have solved more questions..... Basically had enough time to study, I possibly could have studied those few chapters i did not manage to cover..... Weather was so hot the other day that I could not concentrate..... It had been the season finale for that drama.....
The list can continue and on but I think those few "reasons" are enough to show you the main reason why you failed your exam or did not get a good mark. You're right, those are all EXECUSES! If you did not have enough time to finish that previous couple of questions, it is because you didn't manage your time well. Las vegas dui attorney did not study those few chapters that you think might be important the night time before the exam? Couldn't you begin study a few more days earlier? So why do you have to watch the finale just the day before exam? Like a conclusion, it all depends upon how you manage the specific situation. So what do your education, your employer, economic condition and fate got to do with you because of not having enough money? Before blame it on devices, take a look at your own good self and take your time to do a little brainstorming the reason why you behave like what you are behaving.
I became talking about managing a situation. Most of us manage a situation in a certain pattern, base on some assumptions that imprinted in our memory. Then we come to a decision, thinking that is the best strategy to resolve the conflict, to have ourselves out of the trouble, to realize a desired outcome. Why we make those assumptions, decisions, etc is really because base on our knowledge, past experiences, that appears to be the only way. We experienced it before so we feel comfortable with it. Then, the unexpected happens exactly the way we need it to be.....subconsciously. Yes! Subconsciously.
Psychologically, many of us governed by our depths of the mind. We act and behave how we feel comfortable with. The technical term that describes this can be comfort zone. It is our subconscious that produces us stay in our comfort zone. How many times, when you want to earn that more income while doing some other investment, three way partnership or even start up a small business and you really earn that more money that you wanted? How frequently that you hear about someone else lost their life span saving in stocks or businesses? Do you ever wonder why? Is it because of fate? Is it about yourself go into a market at the wrong time? Basically, it is because they have not prepared themselves. Subconsciously they know they will fail somehow and in the end, their "wish" come true. It is because our brain is stuffed with all kind of failure experiences and now we all want to live in a comfortable state. As a conclusion, the result come to be bad because subconsciously, we want it to turn out bad, therefore we can stay comfortably and not to worry when the business will success and acquire into trouble eventually.
Business Owner Beware! Being in business producing physical products has decided to only be the playground of major players in their field. The strong get stronger. The weak is diminishing 1 by 1. Just take a look at automotive industries, microchip industries, telecommunication industries, etc. Strong players remain strong. There is hardly a room left for small or new players. Good products and services will not likely guarantee your market position using the changing of consumer behavior, everyday! If your trend continues, there will probably soon be only few choices for cars, computers, mobile devices, etc to choose from. Does your small business stand a chance to survive and acquire strong in the next few decades?
Employee Beware! Diligent at work do not necessary guarantees you tons of employment opportunities today. The world has been evolving faster than you could imagine. Your learning at university has decided to be obsolete. You may well be the lucky one in case your company gives you working out for continuous improvement. Having said that, aren't you tired of trading your time and efforts with a fixed salary? You may invariably face the pressure to become lay off as your salary increases. Publication rack finding ways to reduce their expenses of any type to keep their products and services competitive, with the rising cost of materials, energies, etc.
The direction to Wealth has Changed! Modern age has arrived. Today could be the age of information. It is no longer about products. It is no longer about being work and pension fund. Today, plans sell. People invest information today. In case you have great ideas, you will be on the fortune list within a year or shorter. Conventional business takes years. It can be almost impossible for people who work with others.
New Age Management of their money Put your savings in a bank is not really a smart way of manage your hard earned money during information age. The inflation rate can easily bypass bank's monthly interest. Working is for people who want to stay where they may be forever. How many employees receive an increment in percentage that's greater than inflation rate? Regardless of whether it is greater than rate of inflation, by how much?
Therefore, it's no longer about conserving money, study hard and get a job. If you want to discover how to live a wealthy life, a minimum of at your generation, you need to equip yourself with a proper management of your capital technique. New age management of their money is not about cutting expenses, manage your credit card debt or get a financial planner. It is more than that. It is not about letting others to manage your money. It is about you is the financial planner yourself. It's about how to minimize your expenses and get the maximum incomes.
There is only a lot you can save if your income is fixed. With the increasing inflation rate every year, saving seriously isn't good enough. You need to learn how to allocate some money for investment. No, I'm not really referring to buying unit trust, bonds, futures, etc. I am talking about something that can potentially get you more than your monthly salary. Of course, you need to know how and do it properly. The answer is definitely not to be effective harder. Just think, serious take into account the following questions for just a moment. How many people really break the bank by working hard for others? What do the world famous rich people do? It's not that complicated you will want rich. You just need to do what rich people do and discover how they do it well!
