Money decides the behaviour of the people around you. Often there are times when the moment you are low with the finance cash-flow’s, people and relatives close by start to ignore any financial help. Only you have to take control of your finances.
Hence financial education and controlling your finances is the most crucial aspect to learn for your life.
Especially in recent times, thanks to the pandemic, money management is the only way to get out of the trap that all are worrying about.
For learning to grow and keep control of your money you don’t need any finance degree but rather a willingness to learn.
Let’s move ahead!
So here are the terms which you can follow to safely grow and store assets that will pay you in long term –
1. Create a rent/mortgage system
For living a peaceful life, you should acquire assets such as property, rent, business, investments, etc. Having rent for your property is an easy way to generate revenue without much work (one-time investment & creating a system).
First, you need to see how much money you have to invest in the assets. Then take your time and analyze where the properties can be bought cheaply.
Do investments and reach out to potential buyers online or within your oetwork if possible.
Make a standard and simple rent amount that the buyers will be willing to pay easily.
Try not to change the rent amount regularly as it decreases loyalty from the buyer’s perspective.
Provide the services and value them so that your finances value you back.
2. Control Finances through Budgeting – should be the new normal
This may seem very simple and boring but budgeting is the key to personal finance management.
It seems underrated and unprivileged to do budgeting but the result you see can be mind-exploding.
Save 30-35% of your salary amount and forget it after investing in some stocks, bonds, and assets.
Try to create a budget as easy and realistic and stick to it for playing the long-term game.
It’s truly like a sports game where you are tested on how strong a player you are with your skill and strategic moves.
This will provide you with the path to financial freedom at an early age.
3. Make emergency funds for sure
Bad times come uncertainly and with the backup funds you as well as your loved ones can live in that bad times.
As mentioned earlier, to live your life peacefully, you need to have systems and methods to work not your labour hours to grind.
Whenever you get a paycheck, aside & automate some portion of your salary for emergency funds so that you live a stress-free life.
Keep at least 6-12 months of emergency funds in a safe and secure place (preferably in fixed deposits) to cope with uncertainties life may through upon you.
These methods are as simple but very effective and easy to build systems in your pinance management.
4. Tracking of your progress
Keep an eye on the spending and earnings. Balance both aspects to create control of money.
Financial controlling is ill about checking your cash flow and asset management. Just follow this step and you are good to go.
All the financial controlling can be easily done if you use your good intellect and understanding of the money market.
ISurpriseknowing and understanding how much money you have in total can reduce your anxiety faboutfinancial goals and cope with uncertainty.
5. By earning more money
You can only control your finances if your bank balance allows it to do. To create the lifestyle you want and maintain it without any hassle, you need to earn more money.
In this era {21st century} you are extremely privileged to have enough opportunities to cope with your financial stress.
Here are some of the steps for expanding your financial abilities and calming your mind with happiness –
- Earn online by building ecosystems or online stores.
- Have a social media presence.
- Investing in Stocks and bonds.
- Creating fixed deposits with monthly payouts.
- You can create passive income sources by earning royalties from a one-time business setup.
- Build a business with easy-to-buy options and grow strategically.
6. Get organized to get unshakable
Have you wondered why riches remain rich?
They know one secret about money and that is creating structures for organizing money.
By the way, you are never late to get organized and pay your monthly credit card bills. There is just the need for some time apart from work to check the shuffled drawers and get finances organized.
In modern times, keeping finances in check and getting organized with money is a no-brainer for almost every one of us.
Today Every person has a smartphone that provides a seamless experience to make money online as well as keeping it safe. This may lead to easily keeping control of finances and making your life better.
Here are Some ways to get you started getting organized* –
- Go for paperless transactions.
- Create an excel sheet on your smart devices to check balances.
- Adopt a cash flow system.
- Maintain a journal to keep track of the progress.
- Remove the clutter from your work and life as well.
- Learn to enjoy the process of organizing things in all aspects of life.
7. Control finances through the Ultimate money plan
There is something wonderful to start taking control of your money. This concept is known as 50-30-20. This is also pretty sure you must have heard this concept before.
For creating a financial budget you must have this rule followed which explains to divide your earning streams (After-tax income) into 3 zones.
- 50% should be the needs.
- 30% of your spending should be want.
- 20% should be investments in your portfolio.
As we see this plan, we can adjust these concepts anytime but for the sake of controlling your finances, you should follow these minimum criteria for managing money.
Your portfolio of managing money has to be in sync with the portfolio of riches. Watch and learn their strategies. Apply them to your current controlling system and then see how your income, as well as your health, works for you.
8. Detach some Finances for your retirement
Your old age income after retirement tepend on the efforts you put into the present investments and learnings.
An ideal person who is earning should surely save and aside at least 10-15 per cent of their income from any retirement scheme.
An individual should also purchase life insurance for their loved ones as well as for their satisfaction with their safety.
And remember to pay off any debt which you have paid so that your old age income doesn’t get affected by paying that debt.
Slash your unnecessary spending and invest in long-term planning to play the long-term game calmly.
Before your retirement, articulate and review your credit scores(to get fewer interest loans) and assets to make a grip on your finances and your growing money with a wave of peace and happiness in your mind.
Final Calling –
With any action you follow, you are steps away to control your Financial journey –
These methods and tips are 100 % in practical use and easy. If you make the commitment at an early age to never get distracted by controlling your finances and keep an eye on the growing money, I ensure you will stay in the 1% elite group of riches and would never get bothered about money again.
Have a fit and wealthy lifestyle for life…!