One of the great consequences of being slaves, working day by day, is due to the great neglect we have of our personal finances, you must improve them by taking charge of three very important areas that I am going to bring you today in this post.
Most of us always know how much we earn, be it monthly, weekly or daily, we know in detail what our income is. But when we ask about our expenses we never know where the money did not go, in what and where. To get ahead we must focus on this very important area that pays very little attention to it, you must know how much you spend, how much you need to live calmly to cover your meals and needs.
You must take out that chip that consumerism has programmed for you to buy this, buy that, or because it is fashionable, and even then do not use it or need it, buy and buy until you have nothing in your pocket, you must control your emotions and use your money in an intelligent way buying what you really need, do not go into debt with something that you want to pretend or because it is fashionable.
“Take care of small expenses; a hole sinks a ship ”. (Benjamin Franklin)
"If you know how to spend less than you earn, you have found the philosopher's stone." (Benjamin Franklin)
To start a great step in your life and in your finances you must save, eliminate that you earn everything you spend, the first thing we must do is a contingency or emergency fund, since having a contingency saving will give you peace of mind in any circumstance that you present, you can lose your job or your business and lose everything, you will have a contingency saving that will help you get ahead in the time that you are going through this emergency in your life, that you will take it with a loan, since you will not have to go to an entity or a borrower to solve your problems. With contingency saving you loan yourself, you will get ahead owing to yourself.
But how can I make a forecast fund? You must make a 6-month profit fund, for example, if you earn $ 100 per month, your allowance fund should be $ 600, to have a fund of 6 months, for this you must pay yourself before making your expenses, You must establish a monthly percentage to take out of your income, the faster you get the fund the better, having this fund you should forget about it only to touch for contingency or emergency.
"While you can, save for old age and need, because the morning sun doesn't last all day." (Benjamin Franklin)
To get to this great step of investments, first we had to manage well the other two rules or sides of the triangle, Controlling our expenses and making contingency savings, in order to get to the point of investments, we must make a capital to be able to to invest. We must be very clear that money multiplies when we invest not when we spend, or we have it without any movements. A person who earns little money but is able to save and invest knowingly can have a significant wealth.
Earning little is not a limitation for not saving capital, which can be invested in the morning, be it in a business asset, a stock market, or the most important asset we have, which is our brain, one of the best investments. It is in oneself in learning that tomorrow that new knowledge will make you earn more money, and invest it in a better way.
"If you want to be rich, learn not only to know how to earn, but also how to invest" (Benjamin Franklin).
