1st STEP TOWARDS FINANCIAL INDEPENDENCE:BUDGETING

The only difference between a rich person and poor person is how they use their time and money-Robert Kiyosaki

Everyone in the world dreams of achieving financial freedom,some dream of achieving it through business or extra job,some dream of saving as much as they can,some dream of investing and  some even  dream of living cheaply!!

But they all forget the basic step involved in achieving the dream:BUDGETING.

BUDGETING in summary is all about tracking and balancing your:

1)INCOME

2)EXPENSES

3) DEBT(DUE TO LIABILITIES)

4)INVESTMENTS(ASSETS)

It doesn’t involve any complex mathematics as many fear about it!Once I heard a story about an average homemaker who used four matchboxes for these categories and distributes equal amounts in every box,and noted down the money left in each box every day,did simple addition subtraction and budgeted for next 10 days!its easy if you enjoy doing it!

I’ve heard some people saying”i don’t have enough money,how can i do budgeting!”

At this point i remember the famous quote by ROBERT KIYOSAKI”Money is just an idea!

It doesn’t matter whether you’ve $10 or $10,000 in your pocket,what creates a difference is how you budget and use them!you can make $10,000 from just $10,or can just save $10 from $10,000

watch the following video about BECOME YOUR OWN FINANCIAL PLANNER  featuring famous author BRIAN TRACY

Follow these tested basic tips for budgeting:

1)Take a notebook or a journal with days,dates on each page,start tracking your expenses,debt,income,investments

2)Expenses can be categorized as a)essential b)desirable c)liability.put your expenses in each of these categories e.g groceries are essential,getting a more expensive cellphone is desirable and buying a car is a liability.

Liabilities are long term expenses as they are generally bought with debt which is repaid for long term.but if you are able to cut your desirable expenses and invest that money,you can get solid returns and more better cellphones later!

3)Create a rule for your own budget and follow it sincerely e.g my own rule is 25-25-50.i give 25% of my income to charity,25% to myself and family gifts,and 50% back to business for its growth!

you can create your own rule for your needs!It’ll take some time to create a perfect rule for yourself,but believe me you’ll get in a better financial situation afterwards.

4)Think creatively on expenses e.g buy groceries on cash,and be clever on bills,e.g my credit card bill comes on 10th of every month to be paid on 30th,so i buy DESIRABLE stuff after 11th of that month,so that i can get enough time to balance other expenses before the bill arrives

FOLLOW THE ACTION STEPS:

1)Get a broad look on budgeting and financial planning through the book written by BRIAN TRACY”GETTING RICH YOUR OWN WAY”

GET THIS BOOK NOW AND LEARN FINANCIAL PLANNING click here

Indian Readers click here

Start learning Wealth Quotient right now

Thank You

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