You work very hard. Day in. Day out.
Yet, you could not yield the results you want – which is to achieve financial freedom.
Today, I’m gonna share with you the secrets to financial freedom.
Create Your Networth Target
Creating a budget never really makes sense to me in the first place.
I went through many online material that talks about budgeting & yet, they continue talking about cutting spending & never really got to the core of budgeting.
Whilst it is a no-brainer to cut down spending, I was clueless as to how much is considered a good budget.
I was directionless.
Then I discovered how important net-worth is and how helpful it is when it comes to creating a budget.
Basically, you need to come up with a targeted net-worth & how long you’d think it requires to reach that target.
Once you have a target, all you need now is to reverse engineer that figure into tangible numbers using simple math – giving you an idea how much you need to save every month and so on.
In a nutshell, let’s say you’re aiming to reach a networth of $100,000 in 3 years. This means you need to make $2777.77 every month.
This is where you decide where to cut your expenses or how much money are you short from achieving the figure. It all comes down to simple math.
Apply The 50/30/20 Rule In Budget
I’ve also talked about this rule.
For those who are not familiar, the 50/30/20 rule was introduced as guidelines to how much you should spend based on needs, wants & savings
Although this is a good place to start, I believe there should be some tweaks depending on where you are today.
In short, I believe the rule should be re-introduced as 40/10/50 – where savings should be the priority, so you can add more money into investment later on.
If you want to know more about it, check out my other article where I discussed this in details.
Seek Wise Men/Women For Advise On Investment
This is the toughest topic to talk to you about.
Honestly speaking, there is no such thing as an investment that fits all.
Different investment has different settings, different mentality and so on – which can be challenging if you’re not used to the environment.
My experience tells me that the best person to talk to about investment are those whom you have personal relationship with – who have gone through the experience from becoming poor to wealthy.
Gaining their insight is valuable as it gives you first hand lessons, mistakes & failures that you can avoid in the future which is priceless.
Then, once you’re certain – you can go all in.
Improve Tax Awareness
You have no idea how much money you can save by starting to listen to your accountant.
Credited accountants are able to tell you exactly how and where to spend in order to get the best tax reliefs, or tax reductions.
Getting tax reliefs is always great – so maximize its uses.
If you run a company, it’s even better. You can gain more tax reliefs under company spending.
So go talk to a credited accountant now before that next tax declaration dateline.
My Final Two Cent
If you’re clueless as to where to begin, then, seek advice from wise men or women. Take note every single thing they share with you – even if you disagree with some of the ideas.
Always keep in mind, the best entrepreneur are the ones who are open-minded and do not have answer to every question.
Let me know what you think about the article in the comment below.
Don’t forget to Execute