At the end of each year, we all have our own dreams. We have new energy levels to achieve them. This personal expectation is like a cycle. Everyone wants to succeed, at least in their thoughts, but not everyone will succeed. If you want to improve your personal finances this year, here are 25 actions you should take.
1. Looking back at the past year: The first thing you should do is analyze the past year. Studies have shown that those who formulate "new financial resolutions" actually have less than 10% of their annual compliance with these resolutions. At the beginning of last year, did you also make a resolution that you were unable to reach? Does this affect your work? Why do you change every year? Take a pen and paper and sit back and review the financial activities of the past year; from income to expenses. Breaking everything down into small pieces, you will clearly know why some of your financial requirements have not been successful. It may be that your total expenditure exceeds your income.
Simple Guide: Creating Credit and Debit Ledgers. Each of your income, no matter how much, should be credited, and the cost comes from the borrower. Summarize each side. If your debt exceeds 30% of your credit, do you still want to know why your financial dreams were out of reach in the past year?
2. Create a list of all financial issues: The second step is to create a list of all financial matters, including "emergency events" as the last one in the list. If you are not fully prepared, this is what emergent emerges and it may weaken your plan.
The best way to create this list is to break down each financial question into months. Many people mistakenly believe that they have everything in their heads all year round. The more reason they fail, because humans are easy to remember and lose. Instead, sort them in black and white, and a new level of motivation will appear each time the list is viewed. In addition, tools such as PocketGuard and Spendee can help you do this.
3. Set specific financial goals: After the list is created, the next step is to set the financial goals for the completion of a specific date. That is only when your desire becomes a goal, because the date serves as a deadline, thus allowing you to feel happy pressure when defeating them. Any goal without a specific achievement date is not a goal. You just hope. Sadly, this is what many people do.
Specifically, I'm not saying that you will make a million naira in August 2018. More specific date. Instead, say "August 30, 2018" for example. Then it becomes the goal you chase after waking up every morning.
4. Keep a loyal budget: Many people's failure is that they are never loyal to the budget. This shows no discipline. Learn to set and work within budget. In this way, you can achieve most of your financial plans and obligations. Exceeding the budget will only make you fall into bad debt and make you miserable. If you cannot plan your budget in black and white, you can use wonderful digital tools such as e-wallet and personal funds to complete this operation and budget on your mobile phone. Others such as PocketGuard even remind you that you have exceeded your budget. Use these tools to improve your life. One thing you can never do is simply budgeting.
5. After you save the left: What is the left school to learn how to live today. For every penny you earn, you can save at least 10%. Now, this is a difficult part: Many people do not have enough discipline to do this. The key to achieving this goal is to separate your business income from your personal finances.
6. Use good debt to avoid bad debt: Everyone should like debt. This is the principle of the richest people in the world. They like good debt and hate bad debts. Good debt brings you more cash, and if managed properly, it gives you financial freedom. On the other hand, bad debts bring unnecessary luxury goods to you, bring you serious pressure, and will make you suffer. If you must increase your personal finances in 2018, try to avoid bad debts.
Good debt occurs when performing billing financial obligations such as buying a business, investing, and stocks or real estate; these things will increase your financial interests over time and make you independent. Bad debt is used for non-essential luxury items such as buying cars, vacation trips and best-suggested dinners. These luxury goods will not increase wealth. Instead, they take what you already have. Decide which one you want.
7. Pay your small debt first: So far, you must say "but I'm already in debt. My debtor is breathing my neck." Everything is fine. Use it as the focus of cleaning up bad debts. First, arrange bad debt lists according to their size. Then solve the smaller debt first. Any fully settled debt should be cancelled before it arrives at the next one.
The logic behind this is simple. The smaller the debt, the easier the return. With each cancellation of debt, you will have greater confidence in liquidating large bonds. The hope that this confidence brings is that it does not want to experience the performance of debt financing every year. In other words, you will be a better manager of your financial situation.
8. The means to live you: This must be a strange one. I have heard many people claim that people should live under their own means in order to obtain reasonable savings. Well, I really believe that people should live. If you have the ability to buy a business conveniently, why not? The key to life is convenience.
When measuring your convenience, you must be honest about your financial situation. You may be paid 100,000 naira per month and feel that you can live in a two-bedroom apartment in town. You should calculate other overspending costs, such as lunar eclipses, clothing, care, and transportation, in order to know how much money you have left to contribute to your desired life.
A simple rule I advocate is: If a personal finance project exceeds 10% of actual income, then your life may be better.
9. Avoid rights: As a profession, no one will owe you anything in life. So give up that lazy mentality. In your personal finance business, you are solely responsible for your decisions; for your success and failure. Once this is firmly rooted in your mind, the enthusiasm of failure will become a greater motivation, prompting you to make wise financial choices. You will learn to take responsibility. The most successful entrepreneurs do not sit down and wait for the goodwill of some family members or friends. They fought through the failed network until elusive success. Then they work harder to stay successful. You should also have such a mentality.
10. Avoid lotteries: For some lottery enthusiasts, this may not be very good, but if you do not have strict control over personal finance, then do not draw lots. People ask, I told them that the lottery is based on the right piety or guess the luck of a given situation. You spend money again and again, hoping to be lucky and win big prizes. But what if you don't do it? Let us even assume that you have won. Have you recorded how much you have contributed to the lottery in months and years, and if your win is determined by your contribution? A few people will be lucky enough to beat it. However, the vast majority do not. The richest people know that the one big thing waiting for heaven to come is a lazy way to understand the concept of luck. They know that luck is the conscious effort of a person to diversify his investment portfolio prior to the lottery investment.
11. Operation 3 Designated bank account: I advocate this because most of the time we tend to withdraw from a single bank account to solve our personal financial challenges. The danger with this is that this practice is the enemy of financial planning and often makes people dry out.
If you are very serious about ensuring your financial future, then you can store 3 bank accounts at different times. The first one should be savings, which may be your salary account. The second is an emergency and the third is charity. Because you are making a budget, you know which account is sometimes needed, and compliance with disciplinary rules when you don't need it can prevent you from reaching other accounts.
Financial experts like Robert Kiyosaki promote this strategy. I also recommend it.
12. Track your net worth forever: Do you really know how much value you have? The problem is that many people have a false sense of security. They think they are more valuable than they actually are. People who control personal finances are always accustomed to tracking their net worth. Don't blush your assets. Try to remove your responsibilities from these assets to understand your true value. No matter if you deduct your privilege from the assets, it is really worth the surplus value.
13. Diversified Investment Holdings: Diversification will help you minimize investment risks. Smart work means that your risks spread in different industries. If your investment in an industry fails, your investment in other areas will help reduce your losses. There are many reasons why you should be diversified: Losing business, inflation, taxes, government policies, and political turmoil are the reasons why you should never stay in a single industry as an investor.
14. Creating Passive Income: This is the key to financial freedom. To build passive wealth, you must participate in activities or purchase assets that generate more income. To increase your personal finances this year, start participating in activities that generate income even if you do not work seriously. Take advantage of technology and participate in online business, participate in real network marketing plans, invest in viable business and observe your income complex.
15. Learning investment rules: You want to diversify and create passive income does not mean that you should not follow the investment rules. The first rule of investment is that you should not invest in something you do not understand. Get enough knowledge before investing in hard-earned money. The second rule is that you should not invest money that you cannot lose. Investment may be a venture investment, so if the investment fails, you can recycle liquidity.
You should learn other rules, such as the principle of compound interest, the legal framework of your investment, and so on.
16. Participate in your passion and have fun: Some people are in pain because they have not done what they like. Some people are trapped in jobs that they only hate for salary. In order to make great things in life, you must be passionate and passionate about your work. I like to provide commercial and financial solutions for those who need them. It gave me joy.
Learn to love your work. That is when you can enjoy and enjoy life. Not like what you do will drive you to make poor financial choices.
If you hate what you are currently doing, here's a tip: Give yourself enough time to invest in what you love. Then continue.
17. Practice keeping your mind and body in shape: Many people work for hours because they are not doing any kind of exercise, so they are busy. Participate in physical activity to keep your mind alert and in a good physical condition for any physical activity.
18. Making your health very important: All goals in your life will meet your health permit. Your health is your number one wealth; therefore you should not be careless about your health. I see people who care about what they eat and drink, and they are clumsy. Personally, I hate sluggishness.
19. Stay flexible and always adjust: We all want to look responsible. We have planned ahead and are ready to grasp our financial situation. However, there will be changes along the way, some of which are beyond our control. The person who has the greatest control over personal finances is a person who adapts to favorable development trends. Their attitude towards life is spontaneous. The danger of rigidity is that you cannot accept new ideas and opportunities. You insist on your point of view, and with your personal understanding of what you do, this may limit you. The richest entrepreneurs and CEOs have a common feature. They hire the smartest people to bring new ideas that they can learn and make appropriate adjustments in the process. This is how companies succeed. This is a composite of personal financial status. Sometimes you will insist on your beliefs, but make sure you take into account every necessary factor.
20. Work smart: Have you ever noticed that when you fall into 9-5 jobs every month, and another person works for several hours, you earn more than you? The rules of the 21st century are working smartly. Although I hate laziness and cannot encourage you, your hard work should be embedded in smart work. Think about how you can make the public gain more income in destructive ways. Do you have a great follower on social media? You should use this and promote your passion. Create reasonable awareness. The more awareness you create, the more people who need your service will look for you. You don't have to wait for fat people to come to you so you can rent the best office space. Take advantage of technology and start with what you have.
21. Use technology and automation to save: This is the age of technology, everything is digital. You cannot continue a similar lifestyle. Approving the various available technologies can help improve your personal finances this year. For example, if you can easily perform banking transactions on your phone, you do not need to carry cash. You can automatically save and spend to avoid exceeding your budget. Applications like PocketGuard allow you to do this.
22. Participate in charity: I believe that dedication is an effective way of acceptance. There are people who help them better than they realize. Philanthropy is more than just helping people in need. This is to improve the situation of people around you. You can participate in community services, provide free services to meet real needs, and more.
If you have already enjoyed some of the great services provided by startup companies, then you can help the business survive through verbal marketing. Doing such a small thing will have a huge impact on your personal finances because you will be seen as a trustworthy person. Their recommendation is real and it will only be good for your business.
23. There is a retirement plan: Some people think that retirement has worked in the civil service for several years and retire after retirement. Retirement is planning to reduce stress at work instead of completely stopping work. Even if you own a chain company, you cannot work forever. In your role as supervisor, you should give way to a younger, more dynamic leadership. What is your retirement plan? Do you have insurance? How about a retirement savings account? Do you put your financial position in different portfolios that will generate revenue in the coming years?
Do you have any shares or shares held, more specifically, do you have any real estate investment? Do you take the time to study some of your country's government policies and even study some of the government's financial incentives, such as Nigeria's Islamic bonds, to see if it's worth the risk?
Due to the lack of adequate plans, I saw some people bankrupt after retirement. Don't fall into the trap of waiting for a pension from the government or any organization to survive. It is a painful life unless you want your entire life to rely on others to maintain your basic survival.
24. There is a mentor: I strongly believe in the power of imagination. You can only come up with an idea in your heart before you come up with an idea. This is what the mentor boat does to you. No matter what financial competition you are conducting today, it has been won by the other. So do a mentor from this person. Guided by their struggles and victories, you can reach your destination faster than they can. Ask them questions and get answers. If it is possible to avoid mistakes through mentoring, then it does not make sense. We should learn to do things from a comfortable point of view.
25. Start now, we will never be late: Finally, it's never too late to start planning your financial independence. You can start investing in hard work now and gain in the future. The danger is simply not starting.
Tip: Remember to do a stock analysis at the end of the year to see how well you are performing in your personal finances.
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Orignal From: If you want your personal financial situation to improve, please take measures
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