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February 01 2016


Personal Money Management

Text Cleo to find out more about your finances
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Please allow me to start with few scenarios.

Through the end of the month or early of the following month, people are rushing to banks. They're busy with mortgage loan payment, car loan installment, charge card repayment, etc. At the end of their busy monthly schedule of handing over day, one hottest question pop up in their head: How much think you have left for the rest of the month? Will it sound familiar to you? Are you currently one of them who come and go of several banks when you receive your salary, just to pay off your bills? If you undertake all that for a reason and you are happy with it, it can be fine. But the problem is, that isn't fine for most of us.

You walk into a shop. You see something eyes catching, something have been wanted to own for so long. A sales rep approaches you and started his/her sales take, to remember those "If you purchase now and make up a full payment now, you will definately get these free gifts plus ....." nice offers. It suited you to pull out your credit card and have it on credit. But wait! If you bought it, it's likely you have to sacrifice your lunch, no more month end get away trip, no more golfing in your weekend, etc.

The scenarios can continue and on but it is not the purpose of this material to upset people. So, allow us to move on.

The Gap Poor people are getting poorer whilst the rich are getting richer. What is the reason behind this scenario? The simple answer is. Rich people treat money differently from the indegent. Rich people manage their cash quite differently from how poor people manage it. Before we get in to the detail of how to manage your money like rich people, we need to do a little self examination.

What exactly is Your Financial Status? In businesses, we look at the financial status of your company by taking a look at their balance sheet. Balance sheet is really a piece of paper that records incomes and expenses of the company during a particular period use of operation. The status of a company is displayed with a number at the end of the sheet. It's what a company have in balance through all incomes minus off all expenses.

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Did you know that you have a balance sheet of your? That is right, your bank statement. It records all transactions of income that go in and out of your bank account. Let us do a very easy exercise now. Have a look at your balance in your account. Does the number show following your little booklet cause you to proud (Ok, you can examine it online as well.)? Think that number is sufficient? The number of days can you survive in case your boss suddenly decides to put you off? Your boss will give you decent reasons behind that. But the truth is as you are expensive to them now. Your salary is a big number in their balance sheet, categorize under "Expenses".

Here is the Basic Idea Most people never manage their funds well because it seems challenging to manage or it doesn't seem essential to manage. The good news is, everyone is able to manage their money as well as those who are great at it. You are not proficient at it at the moment as you do not know how. You may have your way of manage your cash, but does it effective? You may have gone to a good university. It's likely you have got yourself a good degree. The truth is, you never learn how to manage your dollars well in college or university. At most, the professors teach business student the way to calculate the balance sheet and keep it in check for other people, for the rich people.

That's not me implying that you don't should study. I strongly believe knowledge is the source of power. With great power, that can be done mighty things. Exactly that, maybe it is time that you can start manage your dollars like those who keep it in check well and get their way out of the undesired situations which i mentioned above? I believe for many of us, the money we have is always insufficient. If you feel that you currently have enough money to reside with, you may want to go to a next level. Should you be constantly short of money during the end of the month, otherwise you think you have enough money and still need a little extra, this is the correct book for you personally.

Self Awareness - Knowing Whom you are and Why You Are Whom you are Remember that I inquire about your financial status previously? That is because you need to know where you are before we begin. If you don't know if the money you have is plenty or not, then you will be just like a boat lost within the ocean without a compass to suggest you a direction.

Were who we are and where we are for a reason. So that you do not have enough money to reside with. Blame it to your education level. Blame it to your boss who never will give you a good increment or promotion. Blame it for the economic condition. Blame it to fate. Please forgive me to get a little detour here. I really believe most of us went through exam during our school time. What was the most common reason for those that did not manage to get good grade on his or her score sheet? It often went something like these:

If I had enough time, I can have solved more questions..... Only had enough time to study, I really could have studied those few chapters that I did not manage to cover..... Weather was so hot the other day that I could not concentrate..... It absolutely was the season finale for your drama.....

The list can continue and on but I think those few "reasons" are sufficient to show you the main reason why you failed your exam or would not get a good mark. You are right, those are typical EXECUSES! If you did not have enough time to finish that previous couple of questions, it is because you did not manage your time well. Why you did not study those few chapters which you think might be important the night before the exam? Couldn't you start out study a few more days earlier? Exactly why do you have to watch the finale just the day before exam? As a conclusion, it all comes down to how you manage your situation. So what do your education, your manager, economic condition and fate got to do with you because of not having enough money? Before blame it on some other reasons, take a look at your own good self and spend some time to do a little brainstorming the reason why you behave like what you are behaving.

I was talking about managing a situation. Most of us manage a situation within a certain pattern, base on some assumptions that imprinted within our memory. Then we decide, thinking that is the best way to resolve the conflict, to get ourselves out of the trouble, to realize a desired outcome. The reason why we make those assumptions, decisions, etc happens because base on our knowledge, past experiences, that seems to be the only way. We experienced it before and now we feel comfortable with it. Then, unexpected things happen exactly the way we would like it to be.....subconsciously. Yes! Subconsciously.

Psychologically, many of us governed by our subconscious mind. We act and behave the way you feel comfortable with. The technical term that describes this really is comfort zone. It is our subconscious which makes us stay in our comfort zone. How many times, when you want to earn that extra money while doing some other investment, three way partnership or even start up an enterprise and you really earn that extra cash that you wanted? How frequently that you hear about another individual lost their life span saving in stocks or businesses? Do you ever wonder why? Is it because of fate? Is it with regards to you go into a market at a wrong time? Basically, simply because they have not prepared themselves. Subconsciously they understand they will fail somehow and ultimately, their "wish" come true. This is due to our brain is full of all kind of failure experiences and that we all want to be in a comfortable state. Being a conclusion, the result turn out to be bad because subconsciously, we'd like it to turn out bad, and we all can stay comfortably and never to worry when the business will success and obtain into trouble some day.

Business Owner Beware! Owning a business producing physical products has decided to only be the playground of major players inside their field. The strong get stronger. The weak is diminishing one after the other. Just take a look at automotive industries, microchip industries, telecommunication industries, etc. Strong players remain strong. There's hardly a room left for small or beginners. Good products and services will not guarantee your market position together with the changing of consumer behavior, everyday! If the trend continues, there'll soon be only few choices for cars, computers, mobile devices, etc to choose from. Does your small business stand a chance to survive and have strong in the next many years?

Employee Beware! Hardworking at work do not necessary guarantees you the rate of employment today. The world is beginning to change faster than you could imagine. Your learning at university will quickly be obsolete. You may be the lucky one if your company gives you practicing for continuous improvement. However, aren't you tired of trading your time and effort with a fixed salary? It's easy to face the pressure to become lay off as your salary increases. Publication rack finding ways to reduce their expenses in all forms to keep their products and services competitive, considering the rising cost of materials, energies, etc.

The Path to Wealth has Changed! Modern has arrived. Today may be the age of information. Select longer about products and services. It is no longer about being hard work and pension fund. Today, ideas sell. People do business with information today. In case you have great ideas, you could be on the fortune list in a year or shorter. Conventional business takes years. It can be almost impossible for people who benefit others.

New Age Money Management Put your savings in the bank is not really an intelligent way of manage your money during information age. The rate of inflation can easily bypass bank's interest rate. Working is for people who want to stay where they are forever. How many employees get an increment in percentage that is certainly greater than inflation rate? Even if it is greater than rate of inflation, by how much?

Therefore, it is no longer about spending less, study hard and get a job. If you want to understand how to live a wealthy life, at the very least at your generation, you'll want to equip yourself with a proper management of their money technique. New age management of their money is not about cutting expenses, manage your credit card debt or get a financial planner. It is more than that. It is not about letting others to deal with your money. It is about you to be the financial planner yourself. It is about how to minimize your expenses and get the maximum incomes.

There is only a great deal you can save if your wages are fixed. With the increasing rate of inflation every year, saving is not really good enough. You need to learn to allocate some money for investment. No, I'm not referring to buying unit trust, bonds, futures, etc. I am talking about something that can potentially enable you to get more than your monthly salary. Naturally, you need to know how and do it right. The answer is definitely not to function harder. Just think, serious take into account the following questions for a moment. How many people really break the bank by working hard persons? What do the world famous rich people do? It is not that complicated you will want rich. You just need to do what rich people do and discover how they do it well!

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