Do you want to live a life full of debts and other financial troubles? I bet you don’t.
Do you want to grow old with your wealth growing, increasing every year, every decades as you become financially independent for just a few years? Yes, of course.
Here are three (3) powerful tips you should apply in your life. I applied these tips since college when I read the bestselling book “Rich Dad, Poor Dad”.
And these tips help me a lot from avoiding drowning in debts and increases my wealth (net worth) as years pass by.
Here they are:
Use a personal financial income statement or your cashflow statement to monitor your personal cashflow. This is the income minus expenses equals net income (on a monthly basis).
Take note: your cashflow is the lifeblood of your financial health. Ignore it and you’re doomed to poverty.
Here’s a very simple Cashflow Statement of mine that you can’t find anywhere in the web. I always believe in “the simpler the better“:
Click the the link below to download a copy of this Cashflow Statement:
I created this cashflow statement when I was in college. My current cashflow is now different. My monthly income increases 10x with additional real estate assets acquired. My monthly expenses increases 4x.
You can modify this cashflow statement or you can search some free templates in the internet. It’s automatically calculated (all the TOTALs). All you have to do is to change the name of item and its amount and the totals will auto-calculate.
Some people doesn’t put this cashflow statement in writing. They just always keep their monthly income and monthly expenses in their head which is not recommended.
If you have more than two sources of income and have growing number of bills to pay, it’s very difficult for you to monitor those bills and debts if you don’t put them in writing.
That’s why many people are drowned with debts because they ignore this first powerful tip. Their expenses outgrows their income.
Advance your career, explore a new business opportunity or acquire skills, make money out of it and improve them (lifelong journey).
Procrastination and laziness can kill your advancement. Plan your career/job advancement, new business or skills improvement. Act upon your plan.
You may failed sometimes but failures can teach you lessons in life. That’s how you’ll improve. Keep failing! But don’t repeat your failures.
And keep assessing your advancement, your business and skills improvement by monitoring your income and progress. If you feel that you stagnate or nothing progresses, you must evaluate yourself on how you use (or waste) your time.
One way to save time and keep your work-hours productive is to use leverage of people. Instead of using your time to do errands or household chores, make use of other people to do it for you. And use that time to earn more money and to be more productive.
Continue to learn new things. It you stop learning, you stop growing!
Adapt to changes. Be prepared to unexpected events in your life such as some financial setbacks (which is part of life), sickness, and loss of love ones or friends.
Life must go on. Make a regular time to refresh yourself by having a vacation or getting closer to nature.
Building wealth takes a lot of time. And it takes more leverage of money and people to build it.
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