If you can, in addition to paying debts and living, it is important to allocate even 1% of your income initially, to save and create another habit. At this time, but the amounts are significant actions taken, and maintained over time. You can choose to first pay the debts that have higher interest rates, but more importantly, do not generate new ones. Step 4: Increasing revenues and controlling costs There are two concepts that define the source of your income: Your ability to making money is directly proportional to the value you offer, according to market perception. You are on Earth for a specific purpose and you have a combination of talent, knowledge and experience that nobody else has.
In addition there is a group of people who need the value you can offer. Quickly mention Cash Flow Quadrant of Kiyosaki, as shown, to define how to generate income. In the left half, revenues are assets, and that both the employee and the self-employed derive their income per hour worked. In the right half, revenues are liabilities, since the business owner, charges for the work of their employees, and investors to make their money work. Therefore, to increase our revenues, we must start thinking of the right side of the quadrant. At first, allocating resources generated from the left side. To control costs, and aim to reduce, the method is to start keeping track of them, with as much detail as if we believe that we are spending too much.
Not should focus on small details, all prefer to focus on increasing revenues. We can prepare a budget to reallocate spending to items that most interest us. In my case, that it was very difficult to implement, so I’m looking to keep them bounded in a maximum total value. Step 5: Save: pay me to myself the last of the first steps: paid to self: SAVE. Saving is what makes the difference, allowing us to build our asset column, which will give us the financial freedom so precious. We must get to save at least 10% of our income. But most important, and I think failure is where most of the people, is what to do with the savings … Here is a word so dreaded, and yet so attractive: INVESTMENT. It is essential that our savings are invested, not only to preserve capital, but increase it and protected. We must investigate before investing. By investing your money carefully, and allow it to grow with compound interest, eventually get rich. Purchase any quantity of shares of any company means owning a share of the company. The value of a property is its ability to generate future income. Once we get to accumulate three to six salary saved for emergencies, we must begin to invest our savings. We should do based on a personal financial plan that covers all aspects covered to achieve your life goals. It is important to do with professional advice, and is what we talk about in my blog