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Financial guidance by GoFSD using the 7 Simple, Free Moves Guaranteed to Make You Richer by MSN Money.
http://www.msn.com/en-us/money/personalfinance/7-simple-free-moves-guaranteed-to-make-you-richer/ar-AAkXk9f?li=BBnb7Kz&ocid=iehp
Page 1. Someone told me that it has been the same ratio (97/3) year after year after year.
97% of the wealth in the United States are owned by 3% of the population.
97% / 3%
So what is the 97%? They are the average Americans who are trapped in the rat race. The only thing you can do to be wealthy is to jump to the other side of the 3%. It means that you have to do the opposite of what the majority (97%) is doing to be ahead of the game.
Page 2. Set a Goal. Write it down then do the action. A goal not acted upon is just a dream. So stop dreaming and take action. Have a plan to take you from point A to point B. A good way to start is using a T goals. Write your goals on top. Then draw a horizontal line just under your goals then a vertical line in the middle splitting two sides. Left side will be the goals and steps you have planned. On the Right side are the results. Meaning, writing down what you did to accomplish that task. Some other organization call it Schedule and Result (S&R).
Page 3. Create a budget. You need to be positive on your cashflow every month. That extra discretionary income will be used to save to build your wealth. By the way, budgeting is like money management to ensure that you are not overspending. You cannot plan your month to be on the negative cashflow or else you will be in debt.
Page 4. Track you expenses. This is used so you know what to cut down on expenses. I have seen a presentation that teaches you to cut on your lattes, eating out, water and energy consumption, and etc... You will be surprise how much you can save in a year to put towards your wealth building strategy.
Page 5. Living below your means. I can't say this enough but this is the only way you can be positive on your cashflow every month. By paying yourself first, meaning that after receiving your paycheck, set aside money for savings,... It could be your retirement account, maximum funded life insurance for tax free retirement, emergency savings account, etc...
Page 6. I though this article will not mention paying off the debts. Paying off your debts will save you on losing money. Every penny that you pay for the interest charges are money that will never be recovered. A god article or strategy about this is Dave Ramsey's baby steps. But that is about it. After you have paid all you debts, you should start building wealth.
Page 7. Have more money coming in than going out. A good book to read on this is a book written by Robert Kiyosaki, Rich Dad Poor Dad. You need to understand the concept of being positive on you cashflow every month. It could be saving on taxes, reduce unnecessary spending, getting more income by having a side business, garage sale, having a lower interest on credit cards, signing up for cash reward cards, etc...
Page 8. Think of the future and not today's needs. Remember that you are stronger now and weaker when you get older. So beat the temptation on spending more than you make and start paying yourself first and not get in to bad debt.
For the most part, this article will get you started to the road of the wealthy. If you have any questions or needs some advice, please feel free to contact us at www.GoFinacialsd.com