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