You have got complete 365 days in your hands. It
is up to you to do whatever you want. Why dont you chalk out a plan to become
richer in a year , that is exactly in the next 365 days. No one in this world
is born with the knowledge on how to save or invest.
have got complete 365 days in your hands. It is up to you to do whatever you
want. Why dont you chalk out a plan to become richer in a year , that is
exactly in the next 365 days. No one in this world is born with the knowledge
on how to save or invest. Every successful investor begins with the basics
explained in this article. Almost always, the simplest are the most profound.
Some simple reorganization in your personal finance management could make you
richer. To be financially successful, the following three steps are important.
1) Make a Financial Plan:
This is the first and foremost important step to
become financially successful. It is not your income, but your wealth that
counts. People with high income like Michel Jackson died with a lot of debts.
So a careful personal finance management is more important than how much you
earn. To have an effective personal finance management system in place for you,
you need to have a personalized well written financial plan.
What are the things you want to save and invest for?
It may be for buying a home, buying a car, childrens higher education,
retirement planning. Decide how many years from now you need to achieve each
and every goal. Because you need to take into consideration the inflation for
all those years and also you need to choose investment options based on the
timeframe for investments.
You need to create your own list of financial
you dont know where you are going, you may end up somewhere you dont want to
be. To end up where you want to be, youll need a roadmap, a financial plan.
So create a financial plan
for you and your family. There is a lot of help available for you online to
create a financial plan in various websites with financial calculators. But if
you want to create a more workable financial plan, you may seek assistance from
professional financial planners.
2) Pay off
all high interest debts:
You need to create a plan to
come out your high interest debts like personal loan, credit card outstanding,
car loan and the like. Credit cards can make it seem easy to buy expensive
things when you dont have enough cash. But it is not free money. To come out
of debt, you need to have specific strategies that can work in your own
situation. There are 11 ways to get out of debt and stay out of debt. You can
choose one or a few ways from this to become debt free.
If you are not giving enough
attention to your debt, then it can sink your financial ship. So take some time
on this to list down all your borrowings and make out a plan to come out.
Saving and Investing:
As soon as you have paid off
all your high interest debts, you need to start saving and investing for your
financial goals. To save more either you need to spend less or you need to earn
more. So you check up what are all the ways and means available for you to
spend less and earn more.
If you are spending more
than your income or all your income and you dont have any money left to save
or invest, you need to look for ways to cut back on your expenses. When you
check where you are spending your money, you will be surprised to know how
everyday petty expenses that you can do without add up over a year. You need to
understand what makes us spend more and strategies to have self control with
money to spend smart and save more.
When you started saving
money, you need to convert your savings into investments. When you are choosing
your investment option you need to take into account, the timeframe for
investments, risk you can afford to take, inflation and your financial goals.
Also you need to be careful in avoiding the biggest investment mistake. That is
to choose a scheme in sync with basic investment principle. Make sure that you
are not violating any investment principle. Dont fall for speculative gains,
ponzi schemes and get rich quick schemes.
If you follow these simple
but authentic steps, by next 365 days you will be richer than what you are today.
Celebrate this year with much more confidence and peace of mind by following
these simple steps for financial success.