If youre tired of looking at your checking account only to see pittance left over at the end of the month then its time you took action. Working long hours and seeing all your hard earned dollars diminish into oblivion is a horrible feeling especially if youre stuck in a job you hate with people you loathe. Its time you stood up and made a commitment to take action with regards to your personal finance. The reason Im writing this article other than to make money is because I was in a very similar position.
Year after year I was not making any financial progress; in fact I was getting more and more into debt. I finally took the plunge after looking at my bank statement in utter disgust, something needs to be done. I read several personal finance books and personal development books including The Seven Habits of Highly Effective People by the late Stephen Covey and Rich Dad Poor Dad by Best Seller Robert Kiyosaki.
By reading these books I was able to raise my awareness and my financial intelligence and financial IQ went through the roof. As I sit today writing this article I feel like I am going in the right direction, I can see progress and Im better equipped to handle crisis, here are some of the things that I learned that really helped me.
#1: Let Go of Negative Energy
Remove Negative Energy from Body
If youre not rich youre poor and if youre poor then someone else is to blame. For years I blamed other people for my financial mess and although they did have a hand in my financial despair I spent too much time unwittingly blaming people and built up an abundance of negative energy.
When youre body is full of negative energy you cant think clearly or plan for the future, instead youre using your energy to think of ways to get even which is costing you even more. Let go of all negativity for forgiving people and moving on, your capacity to think your way out of trouble will increase exponentially.
#2: Dont Hate Money, Embrace Wealth and Riches
Why Am I Afraid of Money?
My father was an ultra capitalist and my mother was a diehard socialist and all my life I was torn between what I thought about money. Sometimes I though money was great and the only thing you need to concern yourself with and at other times I thought it was the root of all evil. I really did not have any real principals about money.
I finally decided to think this through thoroughly and came up with the following conclusion. Money is not everything but it is very important, money is not the root of all evil and is a way to achieve security, peace of mind and independence; accumulating money is not a sin as I plan to pay my alms and help people in need with my time and wealth.
You see money can be a great thing if you use it to do good, you can change peoples lives, you can feed poor people, you can shelter homeless people. Only recently I made a donation to pay for half a house in a third world country, this was a great feeling and the only way I did it was by not thinking money was the root of all evil.
#3: Dont Embezzle Money from Your Self
How to Have a Better Financial Future
If youre spending like theres no tomorrow then youre stealing money from your future self. Picture yourself as an old person whose broke and living in a tiny apartment eating porridge everyday broke and lonely, is this really the person you want to be or do you want to cruise the entire world with your friends and family eating well and enjoying what life has to offer?
Every time you spend needless money think about this old person and it will scare the hell out of you. Always spend less than you earn and only spend money on things that really mean a lot to you, budget effectively and drastically cut spending on things you never enjoy and divert that money the things you enjoy in life while saving at the same time.
#4: Why Am I In Debt?
Quickest Way to Become Debt Free
If youve got a mountain of debt its time you got rid of it, when you do start to pay off your debt think about why youre in debt, think about all the useless things that you bought with your credit card that are now in the closet gathering dust and depreciating at an alarming rate, was it really worth it?
Start to hate useless debt with a vengeance and start paying it off quickly. Try calling your creditors for a lower minimum payment and try to reduce the interest on every card. Pay the minimum to every creditor and then use all the surplus income you have to pay off the smallest debt. Once youve paid of the smallest you should tackle the next smallest debt and so on. Pay off debt quickly and move on with your life.
#5: Invest for That Future Elderly Man
Retirement Planning is Really Important
Keep the thought of your future self in your head and now think of ways to make him happy. Once youve paid off your debt try to maximize your 401K and Roth IRA so youll be planning for your future happiness, make sure your employer contributes and you get that all important tax relief.
#6: Increase You Income with Creativity
I Need to Increase My Income
Now that youve nailed personal finance youre ready to start managing more money. You need to increase and develop more income streams. Create an online business, create a portfolio of stocks, invest in real estate, sell something online, freelance. There are so many things that you can do to get your income going up. Once youve increased you income learn how to invest and just watch your money grow.