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Your Finances to Achieve Long Term Wealth
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Your Finances to Achieve Long Term Wealth
Ask anyone what money management means to them , and the typical answer will be something along the lines of 'Pay off all the Bills promptly and try to save whatever is remaining.' This doesn't sounds like much fun, right? This article outlines a straightforward method of changing how you think about and approach money. A simple and effective way to control and monitor your finances and get out of debt, which is enjoyable and, if you do it consistently...the results in the long run are going to be extraordinary. Here are the seven ways to distribute your funds. If you're able establish 7 separate Bank accounts for each use or 7 Jars, Boxes or any other container you can think The Millionaire Drive Review of serve the same purpose to get you started. You must do this on a regular basis , and you have to maintain i.e. Daily, weekly, or monthly. 1. Investments: Affix 10% of your earnings to be put aside solely for investing. Make sure you only use the funds to purchase Investments. The investments you make should give you ongoing 'residual income' or capital appreciation/growth i.e. you can sell them off for profit. When you have enough capital or funds to purchase the investment, you can and then begin building again until you have enough for the next one and then repeat the process. This is by far your most important fund as it this that will ultimately work towards achieving your Financial freedom/Independence. 2. Long Term Savings: The 5% you earn should be allocated to 'one special' purchases such as Cars, Clothes, Home Furnishings, Home Improvement, Home Entertainment. The money should also be used to pay for long trips abroad or vacations. 3. Long Term Expenses: Another 5% should be allocated to any ongoing small amount of debt, which is usually credit cards or personal Loans. 4. Necessities: These are your main living expenses and thus 55% of your income will go to these; Rent/Mortgage, Utility bills, Car Loans Food, Petrol/Travel, get the picture... 5: Education: A portion of 10% of the cash is supposed to go towards continuing education in Financial intelligence and personal development. This is very important as you can never stop learning and developing yourself. This can include books, DVD/CDs, Seminars, Workshops, travel and Accommodation expenses, Training Material , etc... 6: Fun: Another important fund. The life you live isn't long enough so if you're not able to reward yourself occasionally during the course of the year it can become very monotonous and dull. The 10% portion of your cash is allocated to this and at the close of each quarter, week or month, you must blow the whole sum on a treat your preference e.g. the restaurant you love, theatre, spa treatments. Your choices are limited only by your creativity...The concept is that you are enjoying yourself and recognize the fact that you've set money aside specifically for this and don't have to feel guilty about it! 7: Charity: Wealth is to be shared. 10% of which is given to those in need. You can make it an annual donation or save and build towards the possibility of a major donation to charities or causes you choose. - The more you contribute and the more you be able to... Do not think that you need much money to get started and you should not...You may start with tiny amounts. The key is making it a habit. Beginning with a modest amount, the principle of compounding gradually will grow to become something significant. Instruct your kids about this at an early age and see how fast their financial knowledge will increase as well as their wealth!

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