It all starts with how we think and what we do as a result of our thinking. At the end of the month, everyone receives money, either given or earned. The problem is that we have no idea where the money is or how it was spent. First and foremost, there is…
Life is 80% Psychological and 20% Mechanical.
Tony Robbins
1. Accounting
Everything disappears at the end when it’s not acknowledged in writing. Accounting is simply record-keeping. Learn to track your income and spending to know where your money comes from and where you spend it most. Lack of money is more of a psychological issue than a physical one. Accounting is simply tracking your spending, then knowing when and where to spend it best.
Keep track of your numbers. Know how much you earn and how much you spend, on food, clothing, and extras (your upkeep cash). Every dollar should be tracked, $1,000,000 minus a dollar is not a million dollars.
Risk comes from not knowing what you are doing.
Warren Buffet
2. Budget
Budgeting looks strict but it’s not, budgeting is what you need after you have done accounting. It’s simply allocating where money should go to. Money is not magic, it goes where you send it. Allocate your money where it’s needed NOT where you want it. Think long-term.
Budgeting is done best when you know your numbers, Debt is well handled when you know how much you owe and owed.
If you don’t know where you are going, any road will get you there
Lewis Carrol.
3. Save & Invest
The two work best when they align. Saving Cash is good when is meant for emergency cases. Advisably, separate between emergency savings and investment savings. If you don’t fully understand asset allocation, it’s like building a house on a weak foundation. If you focus on asset allocation before knowing your goals. it’s a waste of time. Cash is an asset and a liability depending on how you choose to use it.
We hope that these fundamentals are useful to you. Stay up to date with our next financial analysis by following our blog. Debt is next https://1hometvke.wordpress.com/2022/09/24/do-i-need-debt-to-buy-a-car-simply-debt/
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