1. Conducting Financial check up
Like it or not, the first step to getting rich is doing a financial check up. This is the most telling Financial Tips to start knowing your finances.
Record your spending over the last 3 months. And note well to start looking for where the most spending, for later in the evaluation.
Make the name 30 Days Cashflow, which instantly split your expenses for the following four things:
First, Savings & Investments
Second, the cost of routine living
Third, debt repayments
Lastly, Lifestyle costs
If you hobby dinner or kongkow in the cafe, how much expense for the hangout every month? (Note well).
Do not be surprised if it turns out the figure reaches 40% of your monthly salary !.
Remember every month our salary must be spent on 5 elements of ZAPFIN.
Namely Zakat (for the Muslims), Assurance, Present Consumption, Future Spending, and Investment.
2. Make a list of the assets and debt you have today
For assets, divide into current assets, consumption assets, and investment assets.
Operational savings, petty cash, and deposits can go into current assets.
Houses, cars, gold jewelry, will go into consumption assets.
While mutual funds, stocks, ORI, Sukri, and unit link pertained investment assets.
Reduce total assets owned by the total balance of your debt. If the difference is negative, I simply say "Sorry, you're poor".
3. Prepare Your Financial Assets
You must have enough financial assets to cover your monthly routine expenses until you die.
For example, if your living cost is 5 million a month, and you have a garden that produces 4 million crops a month. This means you are 90% to a rich fixed status.
You just need to work earnings for 1 million more, the remaining earnings can be for investment and occasionally rah-rah.
If you are still far from retirement age, try your investment options in assets with a potential return above 15% per year.
For example such as precious metals, mixed mutual funds or stocks, common stock, and business.Later, 3 years before retirement, convert those assets to instruments that can provide monthly cashflow such as Deposit.
Our financial goal is to have a larger asset of debt and to cover monthly routine expenditures.This is the so-called rich condition, regardless of how much our salary and how many homes we have.
We recognize the prestige that should be displayed out, sometimes hampering yourself to the stage of staying rich. We tend to choose to look "rich-looking", though porous inside (in finances).
I've met too many people who do not care about his future, as if life were just for today.
Let us be the real rich people to achieve a beautiful and prosperous life. Live a beautiful life!Setting aside more money is the ultimate financial resolution for the past 3 years.
The point is we have to live in balance. With a balanced life we are expected to be free from the shackles of debt caused by wrong in managing our finances and assets.
Similarly tips on knowing your financial health. Hopefully
we are more observant in managing assets that we have today, hope for
the future can be better without thinking about the debt that will
create stress.