Financial Planning Funnel Approach - 5 Simple Steps to Financial Freedom

Is at least 70% of people do not plan enough for their retirement, depending on which part of the world they live in. it can be argued that someone is ill equipped, lack of financial knowledge to make personal financial planning or simply no time for it.
Truth be told, the fact that financial planning can be simple, daily routine work. Here is the secret of 4 easy steps to your financial freedom. It was pay day, you will be doing the following in this order:
Management of the Debt Monster - First things first, on pay day, try to not only pay the monthly mortgage installment, as well as all monthly recurring debts such as credit card bills on time in full. Otherwise, if the debt can not "kill" you, accrued interest will be!
More ambitious step toward living debt-free life, the courage to do what most of us fear - to clear all your credit card debts and cut all but one of your cards. It is a psychological commitment to you to relieve your debt-free lifestyle.
Do not be too affected his personal finances with 2 good benchmarks for mjerenje.Dug service measures the ratio of monthly debt payments to monthly income. This should not exceed 35% on a monthly basis. The second ratio is important to remember the total debt to total assets ratio should be less than 50% if you are over 40 years. This ratio can be as high as 80% if you are in the prime earning age.

"tax" yourself before you spend - Save a part of the remaining amount, approximately 10 -15% a month in a savings account or mutual fund after you have paid your debts monthly. That amount should be stored consistently on a monthly basis and on a fairly liquid account.
You have tons of funds for vital emergencies, such as reduction, medical bills, etc. The rule is to keep aside a total of at least 3-6 months of disposable income to bind over for emergencies as well as contingency funds. This fund should be kept in a liquid account, such as a savings account.
Cut the Fat - You can now start spending, but not before they are given daily, after a set monthly and daily budget. Carry out only when you really need.
When you plan your daily, monthly use of a measure designed to provide space for day-to-day adjustments. Spend a budget in the back of your mind. Learn how to DIY home dinner or poboljšanja.Radost and satisfaction could be incredibly grateful.
Be Warren Buffett in the making - with the remaining monthly disposable income, you should observe the following suggestions should plan to invest their money. Your investments should be defined risk level threshold. Invest with a long term view to investing the time 50-10 years. Build a portfolio of blue-chip stock dips on the defensive for dividends in a bear market and sell into strength in the bull market. I do not mean down down trending market. Go for gold, if real interest rates predicted to be lower than inflation. Invest approximately 10% of their disposable income on a regular basis.
Do not miss a beat! - The operative word here hints of "consistency". Repeat the above 4 steps accurately and consistently. Very soon you will be classically conditioned like clockwork.
When you subconsciously start picking up the checkbook to pay for your mortgage and credit card, and start watching the rib-eye steak at the supermarket, you're on your way to financial freedom.

0 comments:

Post a Comment