Selasa, 16 April 2013

Some tips for achieving financial independence

We know that being financially independent is not merely to be rich, but having freedom to afford the lifestyle of a person desires without having to work.

If you’re like most people, that are intended to be financial independence at the top of your wish list of long term, you will have a long way to go. There is a lot of financial advice that can meet in your everyday life. You may seek advice through personal financial books, or from your financial planner. It seems that every person can provide more professional advice, but will confuse people who just want to accept everyone, because everyone has their own opinion about where to put the money, how to spend it and how do they raise their money.

However, there are some simple truths that can apply the advice that can be found. Let’s see what they are.

1. spend less than you earn, i.e. credit card use with caution.
This is fairly obvious and basic, but a lot of people don’t pay enough attention to it. Is the only way to help you get out of debt or do promotion on your savings. You can set a rate that put savings account instead of spending all that money you get.

It’s more likely that people with credit card can buy things they want in advance, but it’s also an easier way to load them with debt. Learn how to use credit wisely.

2. Use cash rather than cards.
People will think more money when using a physical plastic card. If you set a daily budget that you have $ 20 to spend on entertainment this week, are more likely to think twice before spending all on tonight movie rentals when you have other plans for the weekend.

But if you use a credit card, we are not aware of how much money they spend. And looks like a $ 8 and $ 20 product doesn’t look a look unless you see the total amount invoiced. Those small single purchases can add up to a lot.

3. no one would care as much of your money as you do, then take control of more of your money.
There are many people in the market who seem more professional that occur because their training, or fancy job titles that make you think are best for you when it comes to your money. But nobody really cares that much about your money as you do. So if you want to reach your goal of being independent financial, although you can seek help from fund managers, investors or bankers, will also enable to take control of your money. Knowing where your money and be able to make informed decisions.

4. financial statements.
Make your realistic budget pretty hard. A budget that allows you to see through that situation and will help you know where your money is going, and where it is possible to reduce spending to improve your financial situation.

The budget is to accurately reflect your spending habits and expenditure, otherwise it will not be a useful tool for everyone, from which you can approach to achieve your financial goals.

5. Pay yourself first.
This does not mean that you should go shopping and buy something, no matter a new computer, cell phone or anything like that, not to mention the things you overspend the budget. Means put a sum of money in savings. Many personal financial books will contain this clue. We recommend that you should pay yourself first how to put some money on savings account or other investment accounts, rather than the Bill on your credit card or other bills, except the day of expiration.

The money you put in savings may be a very small amount, but that is ok. At least they have started. But I think at the beginning, you can just put a fixed percentage of income on the savings account. Then, when possible, increase the amount you save at 10%, 15% or more of your income.

6. Separate needs from wants.
Actually there are a few things that we really need. A person who earns $ 300,000 a year not necessarily lives a better life compared to a person who earns $ 50,000 per year. That’s why those who earn least put much more attention to things that he needs. They can make purchases that really work for him and try his best to improve the quality of life without spending too much money.

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