7 Steps To Gaining Financial Freedom

7 Steps To Gaining Financial Freedom



7 Steps To Gaining Financial Freedom
Ever wondered how to​ gain financial freedom so you have no worries about money? Are you spending more than you make and going deeper in​ debt? You CAN reverse that trend!
The first thing you need know is​ this: if​ you are making financial planning decisions based on how much money is​ in​ the bank right now, then you are being controlled by the money, and this usually creates a​ constant worry about money problems .​
You need to​ control the money to​ gain financial freedom; not the other way around.
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 .​
Here are the seven steps of​ this business cash flow management system:
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 break even 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​ actually available to​ spend .​
Most people forget that when the money comes in, some of​ it​ is​ already committed .​
When you spend more than you brought in, the difference usually ends up on a​ credit card as​ debt .​
When you are striving for financial independence, spending less than you make is​ critical.
5) Set aside regular amounts of​ cash from your income for the future – always pay yourself first and put the money in​ savings toward gaining financial freedom .​
For substantial wealth building, a​ minimum of​ 10% is​ recommended.
6) Portion out some of​ your money toward paying past-due bills, debt, current bills, and then portion out 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 money left over in​ ways that increase your ability to​ produce more income .​
Why is​ cash flow management important to​ a​ business owner? Your cash flow is​ the energy and life blood of​ a​ business .​
It is​ necessary to​ pump it​ through the income producing areas to​ keep it​ running well .​
Everything runs smoother when cash is​ available.
Seems simple, right? And it​ is​ simple .​
This system is​ easily learned, and can be used to​ do these seven steps of​ Financial Planning in​ very little time each week .​
It does, however, take personal discipline and commitment to​ achieve the goal of​ financial independence so you never have to​ worry about money again .​
Done correctly and consistently, the end result is​ always having lots of​ cash on hand, all bills paid, and plenty of​ money in​ reserves to​ finance what you really want to​ do with your money; not just pay bills .​
Who doesn’t want that, right?
To use your money wisely, you need to​ treat it​ as​ a​ resource .​
Correctly managing your money will determine how well your company or​ family will survive now and into the future .​
Correctly applying these seven steps of​ Financial Planning will make financial freedom happen for you.




You Might Also Like:




No comments:

Powered by Blogger.