The first thing you need to know about gaining financial freedom is, if you are making financial planning decisions based on how much money is in the bank right now, then you are being controlled by your money, and it usually creates a constant worry about money problems.
Fortunately, there is a money management system that you can use to control your income and debts to get on the road to financial freedom. However, most people are completely unaware that it exists. This is not the type of financial planning involved in investments such as stocks and bonds.
7 Steps To Financial Independence:
1. Accurately predict how much money is needed to operate the company this week and in the future.
Figure out exactly what has been spent, by category, over the past year. This becomes the budget. The correct definition of budget here is: the amount of money it takes for the organization or household to function and to attain its goals. That is also called the breakeven point and tells you the minimum amount of income required just to stay afloat. This is the first step in effective cash flow management.
2. Figure out how to collect the amount of income needed, and more, to do better than just break even. Remember, you’re going after your financial freedom here.
3. Find out exactly how much you owe in bills and other debts. This takes a bit of courage to confront, but what you don’t know because you’re just not looking at it, can undermine your profit and wealth building progress.
4. Find out how much of your income is available to spend. Some people forget that when money comes in, some of it is already committed. When you spend more than you bring in, the difference usually ends up on credit cards.
5. Set aside regular amounts of cash from your income for the future, and always pay yourself first. Put the money in savings toward gaining financial freedom. To build substantial wealth, a minimum of 10% is recommended.
6. Portion out some of your money toward paying bills, debt, and then set aside a bit for future large expenses that are difficult to pay when they come due. Careful, consistent money management can speed up your business wealth building progress.
7. Use any extra money in ways that increase your ability to make more money. Why is cash flow management important to a business owner? Your cash flow is the energy and life blood of a business. Everything runs smoother when cash is available.
Use your money wisely. Treat it as a resource. How you manage your money will determine how well you, your company, and your family will do, both now and into the future.
“One of the best ways to get rid of some of your past mistakes, is to use the lessons you learned from those past mistakes, to improve your life going forward.” Malia May Johnson
The Golden Rules of Wealth Building Revealed – https://www.mastersofmoney.com/thegoldenrulesofwealthbuildingrevealed/