Keys to Personal Financial Success
Introduction to the Method of Financial Freedom
If you want to create a successful online business, you must bare in mind that your personal financial management affects so much. I know most of you want financial freedom. You can learn all about the tools and knowledge to financial success. But I would also want to tell you step by step that how to create a successful online business and manage your financial well.
Take charge of your finance.
Procrastinating is detrimental to your long-term financial health. Don’t wait for a crisis or major life event to get your act together. Don’t wait to start making money online! Most people fail because of procrastination. To get rid of it, just don’t think about “what if I fail?” and start working.
Don’t buy Consumer Items.
Some items like cars, clothing, vacation, and so on that lose value over time on credit. Use debt only to make investments in things that gain value, such as real estate, a business, and debit cards.
You don’t want to spend money on these things because these are not tools for you to scale up your business. If you have $200,000 and chose to buy these products, you will be ending up losing money and losing the value of your assets.
Use credit cards only for convenience, not for carrying debt.
If you have a tendency to run up credit-card debt, then get rid of your cards and use only cash, checks, and debit cards.
That means don’t use credit card if you don’t have that amount of money, even if you know you are getting paid by next week. This is a fatal mistake about your personal finance.
Live within your means and don’t try to keep up with your co-workers, neighbors, and peers.
Many who engage in conspicuous consumption are borrowing against their future; some end up bankrupt.
Save and invest at least 5 to 10 percent of your income.
Preferably, invest through a retirement savings account to reduce your taxes and ensure your future financial independence.
Save your income, no matter passive income or active income. Using up all your income may be in risk of losing all of them. So don’t try to consume all of your income.
Understand and use your employee benefits.
If your’re self-employed, find the best investment and insurance options available to you and use them.
Research before you buy.
Never purchase a financial product or service on the basis of an advertisement or saleperson’s solicitation.
Research on a product or read some product before you buy anything. This is because you have to know what are you buying before you buy. That’s simple.
Avoid financial products that carry high commissions and expenses.
Companies that sell their products through aggressive sales techniques generally have the worst financial products and the highest fees and commissions.
Don’t purchase any financial product that you don’t understand.
Ask questions and compare what you’re being offered to what you can get from the vest sources, which I recommend in this book.
Invest the majority of your long-term money in ownership vehicles that have appreciation potential, such as stocks, real estate, and your own business.
When you invest in bonds or bank accounts, you’re simply lending your money to others, and the return you earn probably won’t keep you ahead of inflation and taxes.
Avoid making emotionally based financial decisions.
For example, investors who panic and sell their stock holdings after a major market correction miss a buying opportunity. Be especially careful in making important financial decisions after a major life change, such as a divorce, job loss, or death in your family.
Make investing decisions based upon your needs and the long-term fundamentals of what you’re buying.
Ignore the predictive advice offered by financial prognosticators – nobody has a working crystal ball. Don’t make knee-jerk decisions based on news headlines.
Own your home.
In the long run, owning is more cost effective than renting, unless you have terrific rent-control deal. But don’t buy until you can stay put for a number of years.
Purchase broad insurance coverage to protect against financial catastrophes.
Eliminate insurance for small potential losses.
If you’re married, make time to discuss joint goals, issues, and concerns.
Be accepting of your partner’s money personality; learn to compromise and manage as a team.
Prepare for life changes.
The better you are at living within your means and anticipating life changes, the better off you will be financially and emotionally.
Read publications that have high quality standards and that aren’t afraid to take a stand and recommend what’s in your best interests.
Avoid those that base their content on the hottest financial headlines ir the whims of advertisers.
Prioritize your financial goals and start working toward them.
Be patient. Focus on your accomplishments and learn from your mistakes.
Hire yourself first.
You are the best financial person that you can hire. If you need help making a major decision, hire conflict-free advisors who charge a fee for their time. Work in partnership with advisors– don’t abdicate control.
Invest in yourself and others.
Invest in your education, your health, and your relationships with family and friends. Having a lot of money isn’t worth much if you don’t have your health and people with whom to share your life. Give your time and money to causes that better our society and world.
Although these are some general tips for you to manage your finance, you should know that this is not only applying for people who are making active income. You should know that Passive Income is the key to success. In terms of success, I am talking about financial freedom but not about any glory or position in the society. So you have to learn how to create your passive income like me.
Please let me know how do you think of this by leaving a comment below! 🙂
Building Successful Online Business