Ideas on How to Become Rich: Set up a budget system
Hi folks, now I want to share about the budget system which you can set up which will enable to become rich because everyone needs a budget even though often times we think it is cumbersome.
The African leaders discussed the issue of financial planning for all of us. To do so, means you need to know what is a budget before you can plan further.
Lots of people give excuses such as budgets are too restrictive; budgets are too complicated; budgets are too hard to follow etc..
Actually a budget is simply a tool that helps you to monitor, achieve and maintain your financial goals. A money system is another word for budget if you do not like budget as a word.
Budgets are really fun to work with; provide you with a sense of direction and also give you long term freedom.
How to set up a budget is a crucial first step.
a) Implement an automatic savings plan. How much you earn per month, set aside a portion, say 10% every month to systematically building wealth;
this sum of money is then put into investment - choose the kind of investment that is suitable to your personality and lifestyle.
b) Plan a debt termination scheme. What I mean is that you should check what are your debts, bills and expenses you incur each month and ensure that you pay off your debts on time to avoid paying interests which are rather high.
c) chart a giving plan too. Give a sum of money to the needy and poor. Even if you are now not very rich, you can still give time, resource or help to others. If you have money, give some to others who need it. I can tell you by experience, the more you give, the more you receive. it is a circular flow of income and wealth.
d) focus on what you do best in your work and hobbies and try to make opportunities to earn extra dollar and at the same time, hone your skills for preparing for bigger things to come.
Well, this is the first thing all of us must do, whether you are an African or an American or a Chinese. Budgeting is a very fundamental step to knowing how much assets you have, how much liability you incur and how to grow money along the way...
Cheers
Sally Klaus
Ideas on How to Become Rich
