| Ever wondered how to gain financial freedom so you | | | | money comes in, some of it is already committed. |
| have no worries about money? Are you spending | | | | When you spend more than you brought in, the |
| more than you make and going deeper in debt? You | | | | difference usually ends up on a credit card as debt. |
| CAN reverse that trend! | | | | When you are striving for financial independence, |
| The first thing you need know is this: if you are making | | | | spending less than you make is critical. |
| financial planning decisions based on how much money | | | | 5) Set aside regular amounts of cash from your |
| is in the bank right now, then you are being controlled | | | | income for the future - always pay yourself first and |
| by the money, and this usually creates a constant | | | | put the money in savings toward gaining financial |
| worry about money problems. You need to control the | | | | freedom. For substantial wealth building, a minimum of |
| money to gain financial freedom; not the other way | | | | 10% is recommended. |
| around. | | | | 6) Portion out some of your money toward paying |
| Fortunately, there is a money management system | | | | past-due bills, debt, current bills, and then portion out a |
| that you can use to control your income and debts to | | | | bit for future large expenses that are difficult to pay |
| get on the road to financial freedom. However, most | | | | when they come due. Careful, consistent money |
| people are completely unaware that it exists. This is | | | | management can speed up your business wealth |
| not the type of financial planning involved in | | | | building progress. |
| investments such as stocks and bonds. Here are the | | | | 7) Use any money left over in ways that increase |
| seven steps of this business cash flow management | | | | your ability to produce more income. Why is cash flow |
| system: | | | | management important to a business owner? Your |
| 1) Accurately predict how much money is needed to | | | | cash flow is the energy and life blood of a business. It |
| operate the company this week and in the future. | | | | is necessary to pump it through the income producing |
| Figure out exactly what has been spent, by category, | | | | areas to keep it running well. Everything runs smoother |
| over the past year. This becomes the budget. The | | | | when cash is available. |
| correct definition of budget here is: the amount of | | | | Seems simple, right? And it is simple. This system is |
| money it takes for the organization or household to | | | | easily learned, and can be used to do these seven |
| function and to attain its goals. That is also called the | | | | steps of Financial Planning in very little time each week. |
| break even point and tells you the minimum amount of | | | | It does, however, take personal discipline and |
| income required just to stay afloat. This is the first step | | | | commitment to achieve the goal of financial |
| in effective cash flow management. | | | | independence so you never have to worry about |
| 2) Figure out how to collect the amount of income | | | | money again. Done correctly and consistently, the end |
| needed, and more, to do better than just break even. | | | | result is always having lots of cash on hand, all bills |
| Remember, you're going after YOUR financial | | | | paid, and plenty of money in reserves to finance what |
| freedom here. | | | | you really want to do with your money; not just pay |
| 3) Find out exactly how much you owe in bills and | | | | bills. Who doesn't want that, right? |
| other debts. This takes a bit of courage to confront, | | | | To use your money wisely, you need to treat it as a |
| but what you don't know because you're just not | | | | resource. Correctly managing your money will |
| looking at it, can undermine your profit and wealth | | | | determine how well your company or family will |
| building progress. | | | | survive now and into the future. Correctly applying |
| 4) Find out how much of your income is actually | | | | these seven steps of Financial Planning will make |
| available to spend. Most people forget that when the | | | | financial freedom happen for you. |