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