To make any move for the betterment of your finance, you must be well equipped with the required skills and tactics, which in a way can be called as financial intelligence. Now, these skills are the ammunition required to enhance the results. Moreover, it is not surprising to see the declining of business if the finances are not managed properly.
On a brief note, perfecting the art of finance is not just important but mandatory for those who aspire to climb the ladder. Renowned businessman Daymond John says the same, he suggests that it is all about understanding money as a tool, and in spite of having great business ideas, entrepreneurs struggle to understand thorny issues involved in the process (e.g. taxes, interest rates, health care).
In this smart era, financial literacy is a must and should to understand how money works and flows. And, if you’re that one guy who wants to tackle the issues like a boss, you must adapt these habits. They might sound new to you in the beginning, but, trust loan shop, you will thank later.
1. Get your hands on some Candid books
Start with Robert Kiyosaki’s bestseller “Rich Dad, Poor Dad”. This book is a sacred one for the beginners who wants to grow boundless. The rich dad says “Money works for me” – not the other way around. He wants you to work to let you learn how money works and how to have it work for you. But if you want to master how, first, you have to alleviate your fear.
You can include some other books like David Bach’s “The Automatic Millionaire” and “The Total Money Makeover” by Dave Ramsey. Don’t just read them, use a highlighter or pen down the important ones in a notebook.
2. Always have a PLAN B
Jobs aren’t going to make you any rich. One must have a backup, don’t simply rely completely on your job, tables might turn at any moment. Focus on your business, develop your assets and don’t let that affect your job. Remember, the financial struggle is often directly the result of people working all their life for someone else. Many people will have nothing at the end of their working days.
Take your time, acquire assets and use them to purchase income-generating, real assets (maybe properties like lands, houses). Investments in stocks, bonds, mutual funds and long-term generators like intellectual properties can also be quoted as real assets, but put an eye on the market trends to bag your part of success.
3. Pen down your ‘Net Worth’
To progress your financial status, you must have a goal- a long-term, and a short-term. While the short-term goal helps in fulfilling your daily expenditures and savings. It is the long-term goal that matters the most.
But, to commit yourself to a certain number (maybe dollars), firstly you must know what is your worth. So, preserve an hour for that, write down all your properties list. Now, to track your own worth, you have to subtract all your liabilities from the total assets on your name. Don’t forget substracting the instant cash loans and the bad credit loans which you opted long back. This makes you stand at a certain level, good or bad! Now you will be pretty sure of how much you have to earn to fulfill your dreams.
If you are too lazy to write down all the finances, there’re a number of mobile applications for you. Google it and start planning now.
4. Mind your expenses
“The best way to earn money is to save some”. Now, imagine you bringing in more money than you did during the yesteryear, but, alas! it won’t help you anyway if you end up spending it all. So, sort the issue before it empties your wallets.
This is a bit difficult task to accomplish, and the proper calculations and the rate of expenses will definitely give you nightmares. Standup! prepare yourself and put an eye on where your dollars are heading. You don’t have to work too much to acknowledge the transfers in your bank accounts because the bank does that for you (mini statements and receipts).
But, you must note down how much you spend on daily luxuries like movies, shows, concerts (weekly though).
5. You’re your own investment
Yes! you read that right. Whatever your current job is, there’s always a better designation. And, a better designation often comes up for those who possess the special skills. So, don them. Start taking some crash courses on the Internet. You have to pay only a minimal fee to learn them. Moreover, with online learning, you can spend only the selective time which is flexible.
In some way, reading books regarding the finances, indulging yourself in some serious business values can also be treated as the self-investment. After all, what can be a better way than improving yourself even by a stick on a bar?
6. Build your ‘Network’
With the advent of technology, networking has become one of the most prominent and easiest factors that assist you with your high-end dream business.
If skills and hard work represent the head factor of the business, then networking can be marked as the tail, and a coin never completes without the network. Reach out to the maximum number of entrepreneurs out there, build your connections, engage yourself in help-to-get-help strategies. Start with work exchange ordeals rather than involving dollars.
This habit keeps your finger on the pulse of your industry. A wonder might happen at any time. Who knows, your very next relationship with some random man in the subway might lead you to an exciting new job prospect or partnership.
7. Work to learn, not for Money
Dream big! big doesn’t pointily involve the money itself. Big means something wider than money, it might refer to the branding, value, and necessity. So, don’t just run after money. Learn something that might make you a better person. Money doesn’t follow the chasers, it follows those who strive for the betterment of themselves.
“Money follows those who follow their dreams”, Roger that.
Everything cannot be taught in schools. Aside from the books, we also need to learn the skills needed to achieve financial success. Though it might sound unbelievable, rich people seek work for what they will learn, more than what they will earn, they perceive money differently. They know that it is not enough to make money, they trust that it is more important to learn to manage it.
Being financially independent and financially literate are the two poles but of eccentric features. Just as Kiyosaki said, “Having knowledge when it comes to money matters is essential not just for investors, but for everyone. The financial decisions you face on a daily basis will have a major impact on your future so you should know how to be responsible for these.”