Do you have a focused Personal Finance Plan? I bet not. Myself doesn’t have 1 too. Thats why I have come to realise that I have wasted a lot of money for nothing. I came across this website that listed 14 focus steps. A Focused Financial Plan For Wealth.
1. What Does Money Mean to You?
What is your money personality? Are you the Worrier, the Avoider, the Hoarder, or the Spender? What need does money fill in your life? You can change and adapt your money personality so that you are able to build wealth and live in security. First, acknowledge your money style and what money means to you. Then consciously try to enlarge your outlook by creating a budget, financial goals and self-motivation.
2. Live Within Your Means
Whatever your income is, do not spend more than you bring home every week. You know people who drive a car they cannot afford, and wear clothes they cannot afford, to boost their ego or to appear more successful. Many frugal people can grow wealthy by living beneath their means, and add to their savings every week. Do not finance your lifestyle with debt.
3. Let Your Partner On the Team
Discuss your money matters with your partner. Get yourselves on the same page for financial planning and make decisions as equals. A budget is more likely to be a success when both parties talk it out and arrange it together. When you work as a team, neither person wants to sabotage the budget and undermine their joint decisions.
I came across this interesting article that teaches you how to manage your money more efficiently. I usually only save whats left of my paycheck at the end of the month, however if you noticed, that isn’t actually called saving. Its because in one way or another I am gonna spend the money in some rubbish or junk. I believe many people is guilty of this too. Thats why the magical number in my bank statement is always not rising. Have you ever realized that no matter how much money you have in your pocket, it always seems to disappear?
This article teaches you to split your pay into different account and set a budget for each. Read More »
Today I came across this article which I find it to be quite interesting. Only recently that I realised that I have wasted so much money due to lack of financial knowledge and management.
Consider this: Would you trade $5.50 a day, for nine years, for financial independence later in life? Give me $5.50 a day, and I’ll give you half a million dollars for retirement. And I only want your daily donation for nine years! Here’s how it works: You set aside $5.50 a day ($38.50 a week or an average of $167 a month) starting at age 22 and stop at age 30. That’s $2,000 a year in a Roth IRA, an individual retirement account that allows your money to grow tax-free. You don’t touch the money until retirement. You’ll have more than $500,000 by age 65. And get this—you’ll have a bigger kitty than someone who starts at age 31 and contributes for 35 years! As Albert Einstein once said, “There is no greater power known to man than compounding interest.”