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Personal Finance

7 Step Beginners Guide To Personal Finance Management

In this post, you will learn the 7 step beginners guide to personal finance management.

If you apply these steps, you will get better at your personal finance management and eventually achieve financial freedom.

7 Steps Beginners Guide To Personal Finance Management

  • Create a financial calendar.
  • Get on an all cash diet.
  • The 20 – 30 rule.
  • Try to avoid debt.
  • Take money minutes daily.
  • Know your monthly income.
  • Create a plan and stick to it.

Create a financial calendar

If you can not keep track of your spending or just cannot trust yourself with what you are going to buy next, having a financial calendar is your first step in the right direction.

Planning your whole years Income, expenses, and savings paints a clear picture of where you can see your self in 3 or 5 years.

For example, you know how much rent you are paying, average bills, your average cost of living all of it goes into your financial calendar, once you have planned your year in terms of expenses you can work on the savings part which includes your emergency funds and investments plans.

Contrary to a very common approach saving just a small percentage when you can save more without living on a thin budget is always a great idea.

While people spend their extra dollars on luxuries, having clarity where you will be standing at the end of each financial year, will keep you motivated.

Your investment plans can only be realized when you have a certain amount of cash.

Get on an all cash diet

If you are just beginning to start your independent life but scared of getting buried in debt, consider an ALL cash diet, meaning you should only use cash to buy things the old-fashioned way.

Using cash is a great way to ensure you are not using your credit cards for purchasing essential items which you should be budgeting in the first place.

We know it may sound scary to some people. Not having the liberty of buy things they want whenever they want.

The truth is financial management is more about the needs and less about the wants.

Before you cut and throw away your credit card, practice this instead, every time you leave the house to buy groceries make sure you leave your credit card at home so you don’t end up buying things impulsively which you don’t need at the moment.

The 20 – 30 rule

You are young and energetic, the movies are great this time of year, the restaurant by the corner of the street serves the best Sushi.

But wait. First things first,

The 20-30 rule is a great way of enjoying all the things we mentioned along with the peace of mind that you have an emergency fund established.

The 20-30 rule is more of an exercise. While planning your financial calendar, the 20% of your income goes straight to the emergency fund.

And a hint: A wedding is not an emergency.

Having a leaky roof, or serious health risks should be considered emergencies.

And the 30% should be spent on your life style.

This includes movies, restaurants, happy hours, basically anything that’s apart from your basic necessities.

Now the 30% budget can be revised on the lower side as per your preference and all the cash can be saved for a bigger purpose like a trip you have always wanted or to get a nicer car.

Try to avoid debt

In todays world it is not very unlikely for people to have any debt they have to pay. Student loans, credit card bills, car instalments, phone plan.

Basically, everything you currently own and have to pay at a later date.

Many young people with limited resources of earnings often drown in the whirlpool of debt.

But if you have been following the steps, we have just talked about you will never skip this one.

To understand this concept first you need to understand how you should deal with your debt, the larger payments, or the higher interest rates should be paid first. Its simple math, if you fail to make a payment of bank loan with 10% interest it will boost your payable amount.

Take money minutes daily

By setting aside one minute each day to check on your financial transactions.

This 60-second act helps identify problems immediately, keep track of goal progress—and set your spending tone for the rest of the day!

This simple exercise will also help with long term financial goals.

Quickly reviewing your balance amount and expenses also highlights unnecessary costs that can be easily minimized.

This sixty-second window can be in the morning or at night – whenever you feel you will have the time to carve out a minute or two where you log in to your bank(s) or whatever budgeting software program you use and review your transactions from either the previous day or that day (depending on the time of day you have your money minute will determine what day’s transactions you are reviewing.)

A money minute is important because it allows you to see where your money is actually going.

Keeping track of your expenses is great, so as long as you do it consistently you will never lose track.

During your money minute every day, you can use this time to track only one-day’s transactions making it easier to account for your expenses.

This is also a great time to catch any errors made by your bank (fees, incorrect withdrawals, missing deposits, etc.) and an even better time to catch fraud or identity theft.

Know your monthly income

As the saying goes, “what gets measured, gets managed.” How can you manage your money without knowing what you earn each month? If you don’t have a concrete number, determine your monthly income after taxes.

This will be easier if you’re a salaried employee with a regular paycheck. Freelancers may have to estimate their monthly income.

Once you have a number, add in any extra side gig money.

Maybe you babysit sporadically or have a blog that earns ad revenue, or you teach a weekly fitness class.

Whatever extra income you earn, add it into your monthly take-home pay.

There is another exercise you can use if you are starting to manage your own finances.

Even if you are a freelancer or taking a part time job after school.

Determining a number below of how much you actually make can come in handy while trying to save money.

For instance; if you are making $1500 a month and you spend the most of it away before your next paycheck arrives.

If you follow all the steps we have just discussed, you should have a neat idea of your expenses and living costs.

And you should have some amount to spare as well. While you could just go ahead and consider it extra cash to spend.

Considering your actual pay to be your salary minus the amount you are left with after budgeting.

This can help you with your saving and can create a cash pool that can be invested in the future.

Create a plan and stick to it

Now that you have planned everything money wise, it’s time to keep doing these exercises on daily, monthly or quarterly basis.

Once you pick a plan, give it a try for at least a month. You need that long to see if it works for you. Anything less, and you won’t see the benefit of keeping an eye on your finances.

So, find a budget you want to try, get started and stay with it. It’s that simple. If you want, Washington recommends you “surround yourself with visual representations” of your goals. So, if you’re saving for your next international trip, you can put up pictures of your dream trip to keep your goal fresh in your mind.

So there you go, the 7 tips that you can practice to manage your personal finances.

Remember always think before you spend.

And planning where your money is going will always benefit you in the future.

How To Create Your First Budget.

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Personal Finance

How To Create Your First Budget

Majority of the population lack the knowledge on how to create their first budget.

One of the main reasons is that, the word budget is associated with deprivation and as such, most people never create one.

If you are new to budgeting, here’s a simple way on how to create your first budget.

Steps On How To Make Your First Budget

These are the steps on how to create your first budget:

  • Get a copy of the last 3 months of your bank statement.
  • Using a note pad and pen, write down all your expenses, debt, and liabilities.
  • On your note pad, write down the following categories, Income, Household, Food, Personal, Transportation, Entertainment, and Miscellaneous.
  • Next, go through your bank statements looking for transactions that fall into one of these categories and jot them down.
  • Now take an average of each item into to determine your average monthly allocation for your budget.
  • Add up all your income(s) and Expenses.
  • Subtract your total expenses from your total incomes and if you have a surplus, awesome. However, if you end up with a deficit, then there is work to do.
  • Here is a link to get a simple budgeting spreadsheet.

Having a budget is the first step to achieving financial security.

The first time you try to create a budget might seem difficult, however with time and more practice, you will become a pro at this.

Budgeting should be fun and should never be associated with lack or deprivation.

A budget is basically a plan or road map for you to achieve your financial goals.

If you want to build a house, you need a blueprint or plan on what type of house you are trying to build.

You must have a plan for your financial life and it all starts with your first budget.

Treat Your Personal Finance Like A Business.

7 Step Beginners Guide To Personal Finance Management.

Categories
Personal Finance Wealth Creation

Think Of Money As A Tool

Most people don’t think of money as a tool.

To achieve any form of financial independence or freedom, you must change the way you think of money.

Money as we know it represents a mechanism for exchange and the financially savvy treat it as such.

Throughout history, money has come in different shapes and sizes.

There was a time when salt was used as money and today we use salt as a seasoning for food.

Why Money Should Be Treated Like A Tool

First we must define what a tool is.

Merriam Webster’s definition of money is, “something used in performing an operation”.

Money as a tool helps us in performing tasks which in this case, a medium of exchange.

So if you are in the market to purchase a new home, car etc, in order to accomplish this tasks, you need money.

Money is an idea and unfortunately, most people place too much emphasis on acquiring money.

The wealthy use money as a tool to enhance their lifestyle while the rest of the population chases money due to a lack of financial literacy.

The only way to be financially secure is to increase your value in the marketplace and money will find you.

You must change the way you view money if you intend to elevate your personal finance.

Treat Your Personal Finance Like A Business.

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Business Lifestyle Personal Development Personal Finance Success Tips Wealth Creation

Treat Your Personal Finance Like A Business

In this present economic climate, it is vital that you treat your personal finance like a business.

So what does a business have in common with you?

First and foremost, a business provides goods and services and in return generates income.

Secondly, in order to provide these goods and services a business incurs expenses.

Third, in order to expand and grow, a business must invest what ever cash is left over at the end of the week, month or year in it’s growth or borrow money for growth.

Treating Your Personal Finance Like A Business

Just like a business, you go to work to earn income in order to survive.

In order to provide for your basic necessities such as housing, food, transportation etc, you have to incur some expenses.

The difference between your income and your expenses is what is left over for investments.

Investing in income producing assets is the key to your personal financial well being and wealth creation.

You must change how you manage your finances in order to position yourself financially.

Steps On How To Be Secure Financially

  • Create a budget and stick to it.
  • Know your numbers, i.e, know your total assets, liabilities and networth.
  • Increase your income.
  • Decrease your expenses.
  • Invest your positive cashflow in income producing assets.
  • Never fall into the lifestyle expense creeps. Basically, because your income increases doesn’t justify over extending yourself.

These steps might seem simple however, it will require a complete paradigm shift in your thinking to pull this off.

These are the same steps I am applying in my journey to growing my wealth and financial independence.

By staying focused, disciplined and committed, you too can learn to treat your personal finance like a business.

The Main Reasons Why You Are Broke.

Think Of Money As A Tool.

How To Create Your First Budget.

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Lifestyle Success Tips

The 7 Keys to Success

What are the 7 keys to success?

Success comes from achieving our goals and brings us fulfillment and happiness.

A Successful Person always strives for perfection and will not rest on his or her laurels.

Close your eyes for a minute and imagine a successful person.

Is he rich or poor? Surely, most of us associate success with rich people.

So, success and wealth are inseparable from each other? Yes, it’s likely to be so.

But wealth is not a target for a successful person. It is just one of the steps to achieving a bigger goal.

What do you think are the main reasons, hindering success?

It is a fact that there some outer reasons, not depending on you, for example, war, flood and so on.

And what about objective sound reasons? If you find one, we will debate it with you.

But so far I dare say there is none!!!!

All the reasons are subjective (inner) and thus – everyone can get rid of these reasons, changing something in himself.

We create the greatest obstacle in achieving success with our fears.

Here are the 7 keys to success:

1) Have a Clear objective. Without focus, no achievement is possible. A thoroughly equipped ship with a wonderful crew will arrive nowhere if it hasn’t any course of direction.

2) Develop a strategy. Unplanned success is a planned defeat. An accurate and logical strategy helps to achieve results. A successful person fulfills a small portion of his great plan every day. If you stick to your plan, then you will achieve success.

3) Have a Positive Attitude. You live in a world you create for yourself. Stop being afraid of failures and you will reach your success.

4) Have Faith in Success. Faith strengthens your potential, and doubts destroy it. Believe in the possibility of achieving success and no obstacles can stop you.

5) Invest in Your Education and Training. Stay consistent with your education and training. These are the attributes of a successful person. The world is ever-changing, and you must invest in you.

6) Self –improvement. This helps us improve our lives, and overcome our fears. You are the master of your destiny, your success, and happiness.

7) Self –confidence. This helps us achieve great results by overcoming our fears and biases.

By applying the 7 keys to success discussed above will give you a significant edge and help you achieve massive results.

How To Improve Your Personal Life.

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Credit Resources

7 Tips To Increase Your Credit Scores

Are you struggling with low credit scores? Here are 7 tips to increase your credit scores.

Having a high credit score can mean the difference in saving thousands of dollars in interest expense.

For example, by improving your credit scores by just a few points could save you a ton of interest you will pay for a home mortgage.

It definitely pays to increase your credit score!

The most commonly used credit score by lenders is the FICO scores, which is a scoring method created by Fair, Isaac & Co…FICO!

These scores are provided to lenders by the three major credit bureaus: Equifax, Experian, and TransUnion.

Before we get into the 7 tips to increase your credit scores, let’s review the major areas that impact your FICO score.

  1. Payment history on credit and retail store cards, loans, and mortgages.
  2. The amount that you owe. Credit agencies look at how many accounts have balances and the proportion of balances to the credit line.
  3. Age of your credit history? The longer the better.
  4. New credit accounts. Applying for a lot of credit cards all at once can hurt your score.
  5. Different credit mix, such as mortgages, retail loans, credit cards, and installment loans.
  6. How many late payments do you have?

Now that we have an idea of what factors impact our credit, let’s work on increasing your credit score!

Some methods to increase your credit score takes time, while some areas can be handled with a phone call right now!

Here are the 7 tips to increase your credit scores!

7 tips to increase your credit scores

  1. Pay your bills on time. Your payment history is a major factor (35% of your FICO score) in determining your credit score. If you pay your bills late or had an account referred to collections, your credit score will take a big hit.
  2. Sign up for online banking and make sure your regular recurring bills are paid automatically. This way you will never miss a payment that will wind up reducing your credit score.
  3. Increase your credit limit. A major large is the amount of your debt in relation to your credit limit. If you have a card with a $10,000 credit limit and your balance is $9,000, this will not help to improve your score. To make the debt/credit limit ratio look better, you can try to call your credit card company and request an increase in your credit limit. Don’t use the extra credit though! This defeats the purpose and puts you further in debt!
  4. Don’t apply for many cards at once. This will not improve your credit score because this is a characteristic of high credit risk groups.
  5. Never close an open credit card account. If you pay off a credit card down to a zero balance, leave it open. Remember that a positive factor for your credit score is how much available credit you have at your disposal when compared to your credit balance, in addition to the length of your credit history.
  6. Apply for loans within a two-week period. Every time you request a loan and the lender pulls your credit report, it can hurt your score. It is part of the FICO formula that reasons “this person is trying to apply for credit and loans and possibly be trying to live way beyond their means!” If you keep the loan process within a two-week period, all of the credit report lookups are bundled together as one single request!
  7. Check for errors on your credit report. Examine your credit report for errors and contact the credit reporting agencies to fix any errors on your credit report.

By applying these tips, you will give your credit score an immediate boost and gradually increase it over time.

The major factors to remember are to pay your bills on time and reduce your debt.

The Basics Of Debt Consolidation.

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Business

Steps To Take Before Starting A Business

Thinking of starting a business? Here are steps to take before starting a business.

For some people, starting a business sounds like a scary idea.

They would rather work all the years of their life for someone else than having a business of their own.

For others, however, there is nothing more exciting than starting a business.

Many people dream of starting a business from the time they are young.

These people love the idea of being creative and of selling products they believe in.

Starting a business of their own sounds like the ideal way to make a living.

If you’re one of these crazy people that dream of one day starting a business, you can start the process by taking time to define your goals.

First, if you’re considering starting a business, try to brainstorm the kind of business you want to start.

Steps Before Starting A Business

Do you dream of selling books or of having a coffee shop, or is the idea of selling sporting equipment more your style?

You can start a business for just about anything, so it is important to narrow your ideas to a couple of businesses.

It is usually true that starting a business will go better if your business is focused on something that you love.

Without passion you will not get very far with your dreams.

You have to take into account factors such as money, time, and resources required to start your business.

Make sure to have a well detailed plan for your business.

The key is having a well thought out business plan.

Another important step is before you rush off starting a business, sit down with current business owners, and learn as much as possible from them.

Their years of trial and error will be invaluable to you as you look to starting your business.

They can also serve as your mentor and accountability partner.

These are the steps you should take before starting a business.

Why You Need A Home Business.

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Lifestyle Personal Development

How to Improve Your Personal Life

This post shows you how to improve your personal life.

When you are ready to improve your personal life, you must turn your wants into needs.

I need to be successful, be a great parent, need that promotion, need to save my relationship, etc.

How To Improve Your Personal Life

Most of us spend time convincing ourselves that our dreams will never come true.

We may feel that our dreams do not amount to anything.

Low self-esteem affects our quality of life.

You can turn the negative thoughts into positive reflections, which will enable you to improve your personal life.

The next time you have destructive thoughts, take a deep breath and say to yourself, I love myself, just the way I am.

Learn to walk tall and think about what you want to accomplish.

Create plans, write down your goals, and take action.

Steps In Becoming A Better You

Thinking positive is a great way to improve overall personal life.

Surrounding yourself with good influences will encourage you to acquire better behaviors.

You will learn to practice these new habits daily.

Conquer your bad habits and you will improve your personal life.

Tips for personal development and growth

You must learn to say no.

Our natural instinct is to help others.

Are you sacrificing your needs to take care of other people’s needs?

Are you taking actions to stop activities that spreads you thin?

If you spread yourself too thin, it will lead to sleepless nights, since you will feel anxious and depressed.

Do you constantly keep yourself in the center of conflicts?

If so, avoid this situations at all cost.

Try to stay away from situations that drag you down and take you beyond your control.

If you are focusing on the wrong things in life, you are not improving your overall personal life.

Do you tell yourself that you are not good enough?

Do you feel like you deserve what you get even though what you get causes you sadness?

For some people, it is easy to focus on negativity, which causes them ongoing depression.

What you are doing is taking away opportunities from yourself.

For some people, this seems selfish, or boisterous, yet it is not.

Learn to become your own best friend and give yourself compliments.

Stop focusing on your self and criticizing your every move, and forget about past mistakes and focus on your future.

Sure, we can say it is easier said than done; yet if you put in the effort it is much easier.

On many occasions, we do not take responsibility for our own actions.

We had rather live a life blaming others for our mistakes or misfortunes.

Do not obsess over past mistakes, and stop blaming others for your misfortunes.

We all make bad choices in life, own up to them.

This is a part of life.

Learn from your mistakes and move on.

Treat every failure as a learning experience and in due time, you will improve your personal life.

How To Set Goals.

The 7 Keys To Success.

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Affiliate Marketing Business

Benefits of Being an Affiliate Marketer

What are some benefits of being an affiliate marketer?

Affiliate marketing has become one of the most effective ways to earn an income online.

It is also one of the easiest ways for anyone with a website to make a profit online.

Affiliate Marketing is an agreement between a merchant and a website owner.

The Main Benefit Of Being An Affiliate Marketer

One of the main benefits of being an affiliate marketer is that, you don’t have to develop your own products or services.

The website owner, or the affiliate, allows the use of their site for the promotion of the merchant’s products by linking to the merchant’s website.

In exchange, the merchant pays a commission to the affiliate on all sales generated by the affiliate.

Every time someone clicks on the link on the affiliate website and proceeds to make a purchase, the affiliate gets a commission.

The merchant will pay the affiliate only when a customer clicks on the product link and makes a purchase.

Affiliate marketing programs are known as a win-win situation for both the merchant and the affiliate because of the pay-for-performance scheme.

Both the merchant and the affiliate enjoy some benefits in affiliate marketing.

There are many benefits to the merchant’s side. It gives the merchant a wider market in which to advertise a product or service.

Affiliate marketing will give the product or service the maximum exposure that it may not get with other traditional advertising techniques.

The more affiliate sites a merchant has, the higher the traffic, which can convert to sales.

Affiliate marketing is the equivalent of having an army of salespeople who do the advertising and get a commission if a customer purchases.

Therefore, since an affiliate marketing relationship is a win-win situation, the affiliate also enjoys many benefits.

More Benefits Of Being An Affiliate Marketer

Foremost among these is the easy way to make a profit.

The affiliate can earn by having an ad or link to the merchant’s website, which prospective customers click and proceed to make a purchase.

Once the prospect clicks on the affiliate’s link, they are redirected to the merchant’s website.

The more referrals there are the more profit for the affiliate.

Affiliate marketing is an excellent way to earn money while at home. There are virtually no production costs.

The product is already developed and proven by the merchant, and all you have to do is send traffic.

Affiliate programs are usually free to join, so affiliates do not have to worry about start-up costs.

There are thousands of products and services you can choose from. You can find affiliate programs for every product under the sun.

Surely, there is a product or service out there that is relevant to your website.

In addition, there is absolutely no sales experience necessary.

Most affiliate programs offer excellent support when it comes to providing marketing material.

The simplicity of affiliate marketing allows you to be an affiliate marketer at the least cost and the most comfort.

Watch my video below on an affiliate program I am currently involved with.

Partner with Anthony Morrison

You can even build a successful affiliate marketing business right in the convenience of your own home.

As an affiliate marketer, your main responsibility is to direct prospects to the merchant.

You do not have to worry about inventory, order processing, and product shipping.

These, along with customer service support are the duties of the merchant.

Because of the global reach of the internet, you can easily find thousands of prospects.

You can increase your advertising campaign by applying more aggressive and productive strategies such as viral marketing.

By attracting more prospects, you also maximize your potential to earn.

Another benefit of an affiliate marketer is the minimal risk involved.

If the product you are advertising is not making money then you can dump it and find another.

There are no long-term binding contracts tying you to products that are not making enough money.

The best benefit of being an affiliate marketer is the opportunity to increase your income and make a profit doing it.

If you are looking to start an online business, affiliate marketing is one of the simplest and most effective business opportunities online today.

Creating And Starting An Online Business.

Categories
Personal Development

How To Set Goals

Here’s how to set goals.

First of all, don’t confuse wishes or desires with goals.

Often, people want things, situations or accomplishments, and call these goals.

Then they’re disappointed when they don’t get them. Just naming your desires isn’t effective goal setting.

Good goals have some or all of the following:

Goals Must Be Specific

A goal like, “I want to be healthy” is too general. “I want to lose weight and walk three times a week,” is better.

Goals Must Be Measurable

Exactly how many pounds do you want to lose?

How much money do you want to make?

How will you know if your relationship is better?

Goals Must Be Attainable

There is no point setting goals that are not attainable.

Setting a goal to make $1 million dollars in 1 month is unattainable.

However, setting a goal of making $100,000 in 1 year is attainable.

Goals Must Be Realistic

Goals must be realistic.

Unfortunately, even if it is possible that you could become an astronaut, if you’re already 55, you better try to become a pilot for now.

Unrealistic goals set you up for failure.

Goals Must Be Time-Bound

They have specific deadlines.

By what date will you have a new job?

Setting target dates really help you measure progress, and motivate yourself.

Good goals consider personal factors. Will you succeed if you feel like you don’t deserve it?

Possibly, but unlikely.

You have to learn how to set goals for your personal development as part of any other major goals.

They’re followed by action. A secret of motivation and getting where you want to be is to start with any movement towards the goal.

Action begets action. Start slow if you must, but start.

They’re not written in stone. All major goals naturally evolve.

Why would you become a family doctor once you learned that you liked doing lab work better?

A change of course and an excuse are not the same thing, but to know the difference requires a certain level of self-awareness.

Develop that, and you’ll be more likely to get to where you want to be.

An easy way to remember these steps is by the acronym SMART.

S stands for specific, M for measurable, A for attainable, R for realistic and T is for Time bound.

The Main Reasons Why You Are Broke.

How To Improve Your Personal Life.