Working day in and day out with clients and associates, giving your 100% makes you capable of making for a living. We make big plans from career and family standpoints. We’re in the Social Media era where you are exposed to limitless opportunities sitting at home. Earning Money has never been this easy with multiple income streams on the Internet.
Managing money smartly becomes a DAUNTING TASK when you have a house to run OR When you have surplus funds but have no idea how to manage in the most tax efficient manner. It’s always a good idea to re-invest in your business BUT you must ALSO CREATE a Passive Source of Income where your Money works for you.
How you respond to money is directly proportional to your spending habits? Are you an essentialist OR Are you someone who’s a frequent shopper? Do you do last minute impulsive purchases? When you get you paid, do you first spend or save? What do you do with your year end Bonuses? These are some of the questions we must address to understand our mental state of affairs with money.
Spending on Credit is very popular but a terrible idea. Coz you start making plans to spend even before you have earned the money. A responsible shopper uses a Debit Card more often. Live within your means. Following this principle makes you more responsible with life and finances.
While you set aside a portion of your income, it’s important to segregate it across different time buckets. Assess your Risk Taking capacity and discuss your Goals with your Advisor that wish to achieve financially. Investing these savings in the right asset mix that helps you create a sizeable corpus aimed at funding future cash flows.
Why do we Invest? To make a fortune? To make good returns? To provide for the big-ticket items in the future? How else do you plan on funding it?
You invest in assets that appreciate in value over time. The value of money deteriorates with things becoming costlier by the day. Hence we have to have a financial plan that helps your money run faster than Inflation. Do you have a concrete cash flow plan that provides for your lifestyle 10 yrs, 15 yrs, 20 years from now?
No matter how promising today looks, having a Good Financial Plan should be of Top Priority.
I will leave you with these thoughts.