7 Cures For A Lean Purse.

I was reading this The Richest Man in Babylon book and i found this tips that i feel should be considered by all of us in order to achive financial freedom. I just put the main quote from the book so i hope you guys go get the book and read it because it is very intresting. Unless your purse already fat, ignore it.. hehehe..

1. A part of your salary is for your to keep, pay yourself first. For each ten coins you earn, spend only nine of it.

2. Budget your expenses and limit your desires to spend more than nine-tenth of your earning.

3. Invest your saving so that it can multiply more and more.

4. Invest only where it is safe, always protect your investment.

5. Buy your own house instead of renting.

6. Insured yourself against any misfortune, this is to protect your family.

7. Increase your ability to earn more, study to become more skillful and wiser.

Babylon became the wealthiest city of the ancient world because its citizen were the richest people of their time. They appreciated the value of maoney. They practiced sound financial principles in acquiring money, keeping money and making money earn more money. They provide themselves what we all desires... income for the future.

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How to make a financial planner work for you.

When you make your financial planning, the focus is on you. You want to achieve the best result, so make it work for you. However, some people do common mistakes when doing their financial planning. Beware of common mistakes. Here are 6 areas which will help you achieve the best results from your financial planning.

1. Measurable goals.

Your goals must be specific, not general. You must be clear on what to achieve and when to achieve it. As such, you must quantify your goals by making it measurable. For example, quantify “comfortable” if you are planning to be “comfortable” when you retire. If you plan to send you children to “good” school, quantify “good” school. By quantifying your goals, you will know when you have reached your goal.

2. Effects of financial decision.

Several aspects of your life can be affected by your financial decision. Your measurable goals maybe affected because it can be interrelated. For example, the time for you to achieve your retirement goals maybe affected by your decision on your child’s education. You may reach your retirement goals later. Another example, your estates plans may be affected by your investment decision in terms of taxxes.

3. Financial situation re-evaluation.

Lifestyle changes. You may experience changes in inheritance, marriage, birth, property purchase or even your career. As such, your financial planning becomes a dynamic process. Analyse the changes and revise your financial plan accordingly. Your revised financial plan should contribute to achieve your long-term goals.

4. Early financial planning.

Start as soon as you can and don’t delay. Saving or investing small amount of money early often helps you to do better compared to those who wait for later. If you started early, habits such as saving, budgeting, investing and periodical review of financial planning, will help you to be more prepared to handle changes in life and even emergencies.

5. Realistic expectation.

Your financial planning will not change your situation overnight. It takes time. Therefore, use common sense when you manage your finances. Your results maybe affected by events which are beyond your control such as inflaction, stock market and etc. Managing your finances is a lifelong process.

6. Take control.

Be in charge of your financial planning if you are working with a financial planner. You need to understand the process and roles of the planner. Share relevant information on your financial situation for better analysis. Be active in decision making and do enquire on recommendations offered to you.

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What is personal financial planning?

Maybe a lot of people think only companies need financial planning or budget, we ordinary people need it as well. Personal financial planning is a process, it is not a product. It is an organized with well planned system that create a strategies that will use any one or multiple personal financial resources to achive both short and long term goals.

The goal is financial freedom, free from worry about money.

So to get started we should ask ourself this three questions:

1. Where am i now from financial freedom perspective?
2. Where i want to go, am i intrested to be financially free?
3. How can i get there?
4. When should i start?

The first three i leave you to answer yourself but the forth one, let me answer it on your behalf.

"YOU SHOULD START AS SOON AS YOU CAN"

Why? because time passess quickly, it is never too soon to start planning for tomorrow.

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