Personal Money Management

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Please permit me to start with few scenarios.

During the end of the month or early of later, people are rushing to banks. These are busy with mortgage payment, car loan installment, charge card repayment, etc. Following their busy monthly schedule of paying day, one hottest question pop up of their head: How much is it necessary left for the rest of the month? Does it sound familiar to you? Have you been one of them who come and go of several banks after you receive your salary, just to pay off your bills? Should you all that for a reason and you're simply happy with it, it really is fine. But the problem is, that's not fine for most of us.

You head into a shop. You see something eyes catching, something have been wanted to own for so long. A sales person approaches you and started his/her sales take, not to forget those "If you purchase now and create 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. Hold on! If you bought it, you might have to sacrifice your lunch, forget about month end get away trip, no more golfing in your weekend, etc.

The scenarios can go on and on but it is not the goal of this material to upset people. So, let's move on.

The Gap The indegent are getting poorer while the rich are getting richer. Is there a reason behind this scenario? The answer is easy. Rich people treat money differently from poor people. Rich people manage their quite differently from how poor people manage it. Before we get to the detail of how to manage your money like rich people, we have to do a little self examination.

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What's 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 often a piece of paper that records incomes and expenses of your company during a particular period period of operation. The status of your company is displayed by way of a number at the end of the sheet. It is what a company have in balance if you take all incomes minus off all expenses.

Have you any idea that you have a balance sheet of your own? That is right, your bank statement. It records all transactions of cash that go in and out of your bank account. Let us do a quite easy exercise now. Examine your balance in your account. Will the number show after your little booklet cause you to be proud (Ok, you can even examine it online as well.)? You think that number is sufficient? The number of days can you survive should your boss suddenly decides to place you off? Your employer will give you decent factors behind that. But the truth is since you are expensive to them now. Your salary is a big number in their balance sheet, categorize under "Expenses".

Here's the Basic Idea Most people never manage their funds well because it seems difficult to manage or it just doesn't seem essential to manage. The good news is, everyone can manage their money equally efficiently as those who are great at it. You are not good at it at the moment as you do not know how. You could have your way of manage your money, but does it effective? You could have gone to a good university. You could have got yourself a good degree. The fact remains, you never learn how to manage your money well in college. At most, the professors teach business student how you can calculate the balance sheet and manage it for other people, for the rich people.

I am not implying that you don't should study. I strongly think that knowledge is the source of power. With great power, that you can do mighty things. That, maybe it is time that you can start manage your dollars like those who regulate it well and get their solution of the undesired situations which i mentioned above? I believe for most people, the money we have is definitely insufficient. If you feel that you already have enough money to reside with, you may want to go to a next level. Should you be constantly short of money throughout the end of the month, or perhaps you think you have enough money whilst still being need a little extra, this is the correct book for you personally.

Self Awareness - Knowing What you are and Why You Are Whom you are Remember that I inquire about your financial status previously? This is because you need to know where you are before we start by getting. If you don't know whether the money you have will do or not, then you will be as being a boat lost inside the ocean without a compass to show you a direction.

We have been who we are and where we are for a reason. So you do not have enough money to live with. Blame it for your education level. Blame it for 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 believe most of us went through exam during our school time. The fact that was the most common reason for those who did not manage to get good grade on his or her score sheet? It usually went something like these:

If I had enough time, I can have solved more questions..... If I had enough time to study, I possibly could have studied those few chapters that we did not manage to cover..... Weather was so hot the other day that I could not concentrate..... It had been the season finale for that 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 failed to get a good mark. You happen to be right, those are all EXECUSES! If you did not have plenty of time to finish that previous few questions, it is because you did not manage your time well. Las vegas dui attorney did not study those few chapters that you just think might be important the evening before the exam? Couldn't you start out study a few more days earlier? Why do you have to watch the finale just the day before exam? Like a conclusion, it all depends upon how you manage the specific situation. So what do your education, your employer, economic condition and fate reached do with you because of not having enough money? Before blame it on devices, take a look at your own good self and take time to do a little brainstorming why you behave like what you are behaving.

I was talking about managing a situation. All of us manage a situation in a certain pattern, base on some assumptions that imprinted in our memory. Then we make up your mind, thinking that is the best method to resolve the conflict, to have ourselves out of the trouble, to realize a desired outcome. The reason 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 we feel comfortable with it. Then, unexpected things happen exactly the way we wish it to be.....subconsciously. Yes! Subconsciously.

Psychologically, most of us governed by our unconscious mind. We act and behave how we feel comfortable with. The technical term that describes that is comfort zone. It is our subconscious that makes us stay in our comfort zone. How many times, when you want to earn that extra money while doing some other investment, partnership or even start up a business and you really earn that more income that you wanted? How frequently that you hear about another individual lost their lifetime saving in stocks or businesses? Do you ever wonder why? Is it because of fate? Is it about yourself go into a market at the wrong time? Basically, it is because they have not prepared themselves. Subconsciously they know 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 now we all want to be in a comfortable state. As being a conclusion, the result come to be bad because subconsciously, we'd like it to turn out bad, and we all can stay comfortably rather than to worry when the business will success and acquire into trouble some day.

Business Owner Beware! Being in business producing physical products will only be the playground of major players in 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 exists hardly a room left for small or new players. Good products and services is not going to guarantee your market position together with the changing of consumer behavior, everyday! In the event the trend continues, there will soon be only few ways for cars, computers, mobile phones, etc to choose from. Does your business stand a chance to survive and obtain strong in the next few decades?

Employee Beware! Hardworking at work do not necessary guarantees you tons of employment opportunities today. The world has been evolving faster than you could imagine. What you have learned at university has decided to be obsolete. You may be the lucky one should your company gives you training for continuous improvement. Even so, aren't you tired of trading your time with a fixed salary? You'll soon face the pressure to be lay off as your salary increases. Organizations are finding ways to reduce their expenses in any form to keep their products and services competitive, considering the rising cost of materials, energies, etc.

The road to Wealth has Changed! Modern has arrived. Today will be the age of information. It is no longer about products. It is no longer about being hard work and pension fund. Today, plans sell. People do business with information today. If you have great ideas, you may be on the fortune list inside a year or shorter. Conventional business takes years. It's almost impossible for people who benefit others.

New Age Management of your capital Put your savings within a bank is not really a smart way of manage your dollars during information age. The inflation rate can easily bypass bank's interest. Working is for those who want to stay where they're forever. How many employees experience an increment in percentage that's greater than inflation rate? Even if it is greater than rate of inflation, by how much?

Therefore, go for longer about spending less, study hard and have a job. If you want to learn how to live a wealthy life, at 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 financial troubles or get a financial planner. It really is more than that. It is not about letting others to manage your money. It is about you is the financial planner yourself. It is about how to minimize your expenses and increase your incomes.

There is only so much you can save if your earnings are fixed. With the increasing inflation rate every year, saving seriously isn't good enough. You need to figure out how to allocate some money for investment. No, I'm not referring to buying unit trust, bonds, futures, etc. What i'm saying is something that can potentially earn you more than your monthly salary. Needless to say, you need to know how and still do it. The answer is definitely not to work harder. Just think, serious think about the following questions for a moment. How many people really get wealthy by working hard for others? What do the world famous rich people do? It's not at all that complicated consider getting rich. You just need to do what rich people do and learn how they do it well!