How To Manage Your Money For Financial Freedom
How To Manage Your Money For Financial Freedom. The most important thing is that you create the financial freedom. Many people don’t realize that you will never achieve financial freedom and wealth by earning money. Wealth is not based on how much money you make, but on how much money you keep. This means that there are people who earn a lot of money, but they lose most of it because they don’t know how to manage it well.
People who are living paycheck to paycheck or even worse, people who spend more than they earn, are in a lot of trouble. This is called debt. I’ve been there before where I wasn’t paying attention to my finances and I didn’t have a system or method for managing it.I was spending money without thinking about where it was coming from. Then you get your credit card statements in the mail, and you realize you spent more money than you could afford. Now you’re paying interest on that. It was scary and overwhelming to see how much debt I had. It felt like I was in a hole that I couldn’t get out of. And so I avoided looking at it. It was very hard when my finances got worse.
I felt like I had no control over what was happening to me. But things changed when I started using a system to manage my money. A system where I had a habit of doing something related to my finances regularly. This gave me back some control and made me feel confident I hoped that I could get out of the hole I was in, and create the life I wanted. This is what I want to share with you.
There is a Google spreadsheet that has some numbers to show you how this can work for you. You can still apply this habit, no matter what your financial situation is like. Whether you are in debt or struggling, or if your income is low, this habit is more important than the amount of money you make. No matter what, it is important to have a system in place. And as you make more money and become more successful,
you will need to manage larger sums of money. This is because if you can’t manage smaller amounts of money, you won’t be able to manage larger sums. If you can’t manage $2000 a month, it will be hard to manage more than $100,000. That’s why you need to start with the basics and build a foundation. That’s what we’re going to cover in today’s training. I use Google sheets that are all hosted in the cloud. I have different tabs for each month. On each sheet, you will find information about my income and expenses. It is very important to track both your income and your expenses. The first step is to track your income.
We all have different sources of income. This could be from your job, where you get a certain paycheck every month. Or maybe you have a business or side hustle, and this brings in a certain amount of money each month. You might also have investments in stocks that pay you dividends, or money saved in an account that pays you interest. You should track your income, no matter how much it is. This will help you know how much money you are making every month. This is an example to help you understand.
Your Money For Financial Freedom
Suppose that you want to buy a new house. You might need to borrow some money from the bank. The bank will want to know how much money you make each year. They will also want to know how much money you owe on other things. So let’s pretend for a moment that this person has a job that pays them $5,000 a month. That is their take-home pay, after taxes. They may also have a side hustle, in which they make $500 a month. The family also has some investments and stocks. They get an extra $300 every month from their dividend paying stocks, and they have some money saved in an account that pays them interest.
That account has $25 in it. You can see how much this person makes each month by looking at this table. This person makes $5,825 a month. It is important to track your expenses. You can use a system based on your income. You can also use the jar system where you put your money into different categories. There are different categories of expenses that you need to think about. The first one is called necessities. This means that 55% of your expenses should go towards things that are necessary for your life.
In order to have a good life, you need to spend about 55% of your income on necessities. Necessities are things like rent, mortgage, or living accommodations, utilities, and other important bills. There are many types of insurance. You should have insurance for your internet, phone, car, and home. Insurance can help you if something bad happens. Nowadays, it is important to have insurance for everything. This includes transportation, whether that is public transportation, Uber, or your own car. You will also need to pay for things like car payments, gas and fuel, groceries, and gym memberships. You might also need to buy supplements and clothes. Make sure you have enough money to cover all of these expenses by saving.
Everyone’s situation is unique, so you will need to customize this budget to fit your own needs. But the other category is fun. That’s 10% of what you make. The reason this is a category is because one of the purposes for making money is not just to live and survive, but also to enjoy it. You can enjoy yourself by spending some of your money on things you like. This could be eating out, going to entertainment events, traveling, or doing other hobbies. You can also relax by getting a massage. It’s important to put some money towards savings every month. That way, you’ll be more motivated to make more money. When you enjoy the benefits of your money, you’ll want to make even more. This is a way of rewarding yourself for your hard work.
If you want to keep doing something, it’s important to link pleasure to that activity. That’s why we’re going to set aside 10% of our income and expenses for play. Education is important because it helps you make more money. Most people just let their money come in and they don’t do anything to try and make more money. But if you have an education, you can be on the offense and make more money. But a lot of people don’t want to invest in themselves. Saving money can be hard and challenging, but it is worth it in the long run. I found that it can be easier to have some motivation to learn about money and investing when you have something to work for. Maybe starting your own business or learning about investing will help you get ahead in life.
I believe in the power of education. One of the best ways to grow and improve yourself is to learn from others. Other people have spent their lifetime learning things that you don’t have to go through and learn the hard way. You can instead invest in their knowledge and learn from them. So some of the ways that you can educate yourself are by reading books, attending classes, or listening to podcasts. There are many different ways to improve yourself. One way is to go to college or university.
Another way is through books, courses, seminars, and events. You can also get help from a mentor or coach in any area of your life that you want to improve. I believe that investing in yourself is very important. Warren Buffett, one of the greatest investors of all time, said that the best investment you can make is in yourself. He says that the biggest and most important investment he ever made was in a public speaking course, which helped him have more confidence when speaking in public.
There are many things that we can invest in to improve our quality of life. I think it is important to set aside a percentage of our income for this purpose. This allows us to make more money and live beyond just our day-to-day lives. The next category is long-term savings. This should be about 10% of your income.Saving money for the long term is important so you have a emergency fund. This way, you will never have to worry about not having any money if something bad happens. For example, you lose your job, there is a pandemic, or the government makes changes that affect your life negatively.
You want to be prepared for any type of emergency that comes up in your life. You should try to have three to six months of your expenses saved in case of an emergency. This money should not be used for anything else, just in case something bad happens. If you want to save up money for something specific in the future, like buying a home, you need a plan for how you will do that. That is why it is important to have a system for setting money aside for your goals.
If you want to buy a home, for example, you should put aside a certain percentage of your income each month until you reach your goal. You can do the same for other long-term goals, like buying a car or boat. You need to save money for when you’re older. That’s what financial freedom is. You have to pay yourself first, like they say in the book The Richest Man in Babylon. Take 10% of what you make and put it in a savings account. Most financial experts agree with this idea of saving money and investing in assets that will be worth more in the future. Your financial freedom account will take a percentage of your money and put it aside to invest in things that will be worth more in the future. Can you start a business in many different ways.
You could sell products on Amazon, or publish a book, or build a YouTube channel or blog. You could also invest in stocks, which could provide you with more freedom and income in the future. There are many different investments you can make, like real estate or cryptocurrency. But you need to save money for your freedom. This means that you have to pay yourself first, even before your needs. If you want to save money for your future, you need to cut back on your expenses and live a simpler life.
This is important because if you don’t save money, you won’t have any freedom in the future. The last category that you need to put money into is contributions, such as saving for retirement or a rainy day fund. If you want to, you can give 5% of your income to charity. You can give money to homeless people or do other things to help others. You can also do this because it is good for you.
It helps you think in a different way and stop being afraid. When you have a positive attitude and believe that there is more than enough for everyone, you will be open to receiving more. However, if you are always trying to hang on to what you have or are unwilling to let go of anything, then you will not be able to receive new things in your life. Living freely, and responsibly giving so that it does not hurt your finances is a good thing. I think it is important for your own psychology, happiness, and fulfillment.
Making money is great, but being fulfilled is even more important. Many people with financial freedom feel fulfilled. There are a lot of wealthy people, but not as many who are fulfilled. I think that giving and contributing is an important part of finding fulfillment.
So I put some numbers in to show you how this works. Let’s pretend for a moment that this person is you, and that you update this information every week or every month. It only takes an hour to do this. If you do this every week, it won’t take as much time. But in order to do this, you need to track your expenses. I think the best way to do that is by making payments to any expense with a credit card or debit card.
This is because it’s hard to track this with cash. Every week or every month, you should look through your statement or log into your online banking. There, you will see all of your expenses and put them into the right categories. You might add or subtract money from certain categories. For example, if rent is $1750, then you would put that under “How much were my utilities.” This cat and column show the budget. The ideal budget is $3,200, which is 55% of this person’s income. $1750 should go to rent and utilities, but it only cost $85 in October.
The internet costs about $50 per month, the phone costs $40, and insurance is the same as $250. Transportation is also $350 per month, but this can vary depending on how much gasoline costs. I usually budget for $100, but this month it was more expensive at $130. My groceries usually cost around $300 per month, but this month it was lower at $290. My gym membership is $40 a month.
I also budget $100 a month for supplements, but I only spent $50 in October. Sometimes I spend more or less on things like clothing, depending on the month. I set aside money for the fees. I thought it would be $20, but it was only $8. This means that the limit for your necessities would be $3200. The person tracked their expenses online and found out that they spent $3167 in total. Out of this, $583 was for dining out, $200 was for entertainment, and $183 was for travel. This left them with $481 to spend on other things.
They save some money here, which is good. For education, they bought a book for $17 and went to a seminar for $500. So their total expenses were $570. They want to save $300 a month for emergencies and to save up for a home. So they now have $583 in financial freedom. They’re starting a business and putting $200 towards it every month. They’re also investing in stocks, $200 each month.
Right now, they’re not pursuing real estate, so they don’t have any expenses related to that. And maybe they’re putting in $83 to buy some crypto currency, and then contributing the rest. 5% of their income is what they spent on this.
You can see their total expenses here. If everything was added up, this is how much their budget was. They only spent $5,039 though which is less than their budget. How To Manage Your Money For Financial Freedom.
With that extra money, people could put it towards different things. They could put it towards getting financial freedom or their long term savings. Another option would be to use it to pay off debt, especially if the debt has high interest rates. But as you can see, this system can help you have a better life.
It can help you have freedom, security, and peace of mind. You can do this by saving money every month so you have enough for the future. You will also be able to enjoy your life more and grow as a person. Even if you don’t make a lot of money right now, you can still use this system to your advantage.
Listen, you need to create a budget based on where you are right now. It’s okay, everyone starts from somewhere. But we need to know where you are in order for you to get to where you want to go. So tell me, what is your income? Okay, now what are your expenses? Maybe you might say “Oh my gosh, Stefan 95% of my income goes towards necessities. I have nothing left for fun, education or my long-term savings.”
It is okay to look for a better deal on your necessities. The best way to do this is by finding ways to lower how much you need. For example, if you are paying $50 a month for your internet, can you find a plan that costs less or switch providers? I might be spending too much on my phone plan.
Maybe there are other cheaper phone plans that would work better for me. I also need to think about how much paying for rent each month and see if there is a way to save money on that. and used to have a lot of debt, but I got rid of it by cutting back on my expenses and selling my car.
I got a bus pass and started taking the bus. It was cheaper than driving and it saved me a lot of money. I moved out and lived with my friends for a period of time to get myself out of debt. This way I could make sure that I met the system that would help me create the life I want. There are always some sacrifices you can make. For example, you could eat groceries instead of going out to eat.
Or maybe you could cut back on certain things you spend money on. You should review your spending each month and see where you can make changes so that you can save more money. But don’t be afraid to spend money on what makes you happy, too. We don’t just want to stay safe and not get in trouble. We also want to make money. That’s why it’s important to think about how we can make more money. Let’s say you only make $3000 a month. How can you make $3500 a month? Or even $4000 or $5000?
There are many ways to do this. There are many opportunities to make more money. Can you start an online business or invest in different opportunities. You don’t have to stay stuck with the amount of money you make now. You can pursue many ways of making more money. As you make more money, you can add fun things to your life and better balance it out. But I think it is important to have financial freedom and savings.
And you know, even your education is important. For me, when I was struggling in my life, I personally cut out fun. I love fun, don’t get me wrong, but I wasn’t willing to pay for it if it meant that I wouldn’t have freedom. Freedom for me was more important than fun. Now I have fun. I was once struggling and I decided to stop giving money to charity. But this might not be possible for you right now.
You might need to save money and focus on your freedom. However, I think education is really important. If you’re not learning and developing yourself, then you’ll stay stuck where you are because your income is in proportion to your level of personal development. As you develop yourself, your income can grow. You can customize this to fit what you want.
This is not set in stone, it is dynamic. Take this and create a similar spreadsheet if you want. We can learn from our mistakes and grow stronger. We need to focus on our future and what we want to achieve. This is one way to help us do that. Thank you for your time. I appreciate it. I hope you benefited from this video .If you liked this blog share your thoughts in the comments and subscribe for more. Hve a blessed day.
