Design Your Financial Future in 3 Simple Steps
It is no surprise if you ever find that many people are currently deep in debt, their thoughts of climbing out of a financial pit may seem impossible. Everything, especially the future, may seem so bleak and depressing and almost everyone would give up the possibility of ever being financially free or at least financially burden-less.
If you are in this situation and want to make a change, You can and will succeed. The first thing you need to do is to change your mindset. Stop thinking life is impossible. Whenever you find yourself having negative thoughts, change your actions and change your thoughts. It may sound impossible but the more you dwell in self pity and sense of helplessness, the worse you become. By changing, you can accomplish more by doing something to take your mind off the negatives of what you're doing or thinking about.
Being financial free can be defined as a state whereby one no longer has to worry about income and expenditure. Being financially free means that one can afford most things one's heart desires without it becoming a burden later on. The destiny will then be in your hands. You need no longer count on an employer or even the government to pave the path to the future for you. If you want to be financially free, the only person who can help you do this is to do it YOURSELF. You must sit down and get serious about making your own financial plans.
To start it all, you would have to deal with is a sound spending plan. You spend only within what you are capable of spending. Many people nowadays spend beyond their means. Write down everything you think you may have to spend on in any given month. For instance, you'll want to include things like rent, food, clothing, education, phone, utilities, traveling, debt obligation, medical, gifts and even alimony (if any). Everything thing you are expected to spend on should be recorded neatly. Calculate this against your income. Make sure your expenditure does not exceed your income. This may seem elementary, but nothing is further from the truth. A great rule of thumb to follow is if you can't afford it - don't buy it! The biggest culprit is not to overspend especially on credit.
Secondly, comes savings. Anyone without savings is without a future. Put it this way, if you saved up $1 a day, you'd have $30 sitting in your account at the end of the month. If you saved up for 3 months, you'd have $90 as backup. We're not even looking into the interest you will earn yet. It can work out to be quite a big sum of money in due time.
If you stick to your spending plan and continue saving some money every month, you'll then evaluate your own level of risk tolerance. How much risk are you willing to take with your money? Different people have different level of risk tolerance. Don't compare yourself with anyone. Compare yourself to you. How much loss can you tolerate?
From here on, let your money work for you. You are essentially on your own. Whether you decide to start your own business, get involved in network marketing, freelance, continue being employed, invest in stocks and bonds, share market, hire a professional financial manager to keep a tab on your money... whatever, the risk is yours to take. Make sure you have a clear objective of what you do.
There's no fixed path to financial freedom, therefore, everyone have to design his or her own journey. Whatever it is that you decide to do; you must remember to save for your future and keep to your own spending limit.
Copyright Sherwin - http://www.internetbusinessfranchise.com/
