Techniques, Ways and Reviews of Personal Financial Management (Consolidated Techniques)
Financial management is one of the main sciences when we want to achieve Financial Freedom (financial freedom). Financial management that I will discuss in this article is inspired and consolidated from several sources:
• Rich Dad Poor Dad - Robert T Kiyosaki
• Think and Grow Rich - Napoleon Hill
• Wealth Building 101 - Trump University
• Real estate 101 - Trump University
• The Warren Buffett Way - Robert G Hagstrom
Theory
Theory, Wealth can be obtained by reducing expenditures and increasing income. However, the reality is not easy to get both elements in the direction we want.
In this thread, I will discuss the importance of the right mindset and the burning motivation to successfully manage your own finances/family. And of course, you are required to do homework (read: main steps) to keep you in the direction you want. After that, we will discuss income segregation, how to reduce expenses and how to optimize revenue.
Fundamental mindset
The mindset (the series of mind programs) is something that should not be underestimated. It is only by reprogramming our mindset that we can start making changes. It is also the mindset that will determine how consistent and ambitious we are toward our ultimate goal (Financial Freedom).
DREAM BIG!
This is a popular word spoken by Donald Trump's billionaire.
From the awesome word above, take your diary/journal book. What you need to do:
• Write down your final destination (Example: have 5 asset houses worth 10 billion).
• Deadline for that purpose (example: at the end of 2020).
• How you will achieve (example: I will disseminate 10% of income)
• Self-motivation (eg, my beliefs and motivations are so strong that I can feel the house).
The first stage - Checked!
Now we move on to the second stage
After your financial freedom goal is complete, the next step is to determine the amount of money to be set aside. At this point, I invite you to calculate your income. Questions for you:
• How much do you earn per month?
• How much do you spend per month? At this point, I suggest calculating as accurately as possible then add unexpected expenses (rational)
• Set aside your income and expenses. Is your spending higher or your income? If your expenses are higher, please check the "Spending section" section.
• If your income is higher, you pass the next round of emoticon-Peace. Now look for the percentage of your remaining money per month on your income. If the result is more than 10%, start saving 10% of your income per month on your investment account.
The second stage - Checked!
Now we move on to the third stage
When finished counting, it's time we do income sorting. If you are married, it is important to discuss with family in order to have peer commitment to keep the expenses (for the family, spending custody a top priority)
SAVE FIRST, THEN USE!
Note: I see many complain that there are many accounts of the money in the account being expensed by administrative costs. The 'account' I mentioned here is not a bank account. This 'Account' can be just a used wallet or drawer or envelope to save the money. I use the word 'Account' only as a reference. my donation account is also just a wallet.
Investment account: this account must be prioritized and consistent! Why? Because this is your stepping stone toward additional income that will ultimately support you and your loved ones without having to work (Financial Freedom). If in the second stage you are able to set aside 10%, in this account 10% money is lived. This investment account should be the MAIN PRIORITY. So, every time you pay, 10% must enter the investment account before you pay anything. This is very important to get the habit of "Pay yourself first". When you first start filling your investment account, set a time period between 3-12 months. After that period, invest the money (if enough to start investing, for example, mutual funds, bonds, stocks, forex, property etc.). Every dollar you have hrs can be doubled in value at least 2-fold or even more!
Daily account: this account will pay for your life. The rules for this account are simple: Put your money to a minimum on this account. This account is your rah-rah account. Thus, by minimizing this account, you have kept destructive spending and used the money productively, effectively and efficiently. The money in this account should be after you pay all your obligations (liabilities).
Debt accounts: as the name implies, this account contains all your mandatory (fixed) debts that you must pay per month. For example home loans, car loans, phone bills, electricity bills. The reason I separate daily accounts and accounts payable is that daily accounts are residual money per month after you pay yourself (investment account), debt and your life needs. The rest of this money you can save to buy luxury goods such as cars, sophisticated cameras, new handphone or a new motorcycle. Or you can spend for a meal at a famous restaurant or something else.
[OPTIONAL] Savings Account: This account is an account for residual funds after deducting funds into investment, debt and daily accounts (budget restrictions). The remaining funds in the account you can use to 'reward' yourself for being consistent in running your financial plan. I personally put most of the funds in this account into an investment account. because I'm sure the more money I put into investment accounts, the faster I reach Financial Freedom that I have planned.
Donation Account: As the name suggests, this account is an account to donate to a place of worship, orphanage, or other donation organization. I used to plan to give 5% of income. But I can not afford it and I only donate 5 dollars every week. now I donate 10 dollars per week. donation money does not need to be donated every week. can be saved for several months and donate the amount at once.
Optimal Earnings
Optimization of earnings can be:
• Reduced expenses
• Return on investment
• Increased salary or additional work
I am not reviewing the topic of reduced spending because the topic has been discussed above.
Return on investment may be one way that can provide additional income besides your main job. Basically, the return on investment comes from your investment account that you have collected and invested in into one investment product (eg stocks, bonds, mutual funds, forex etc.). Similarly, your income from the main job, the return on your investment should be re-sourced k investment account. I personally reinvest 50% of my investment returns. I used my first investment account by buying shares. The second, third and fourth waves also I invest k shares. From the first wave, I profit 50% in 2 years. From the second and third waves, I profit 100% in 2 years. The fourth wave now I still hold because there is a potential profit 30-50 fold in the next 5-10 years. And now I also invest in property with my parents.
An increase in salary or extra work can be a source of prosperity for your investment account. I changed jobs several times with the intention of finding a job that pays more so I can pay more investment accounts. And finally the end of 2011 I have been able to pay 25% investment account of my salary. Be consistent and upgrade your investment account level to make money work faster for you.
Consistency is very important in the journey to Financial Freedom.
Be Strict To Yourself Or The World Will Play You Up. - Napoleon Hill
Meaning
You must be strong from within or the world will play you. Consistent! And do not let the world play with you.
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