If you were present at my last week’s blog, then you already know that this week we will be covering part 2 of our topic on financial education. Part 2 for this week will be about increasing your financial success, the how to in achieving financial stability and prosperity. Today, with the help of my special guest, we desire to educate and encourage you to add and/or change certain habits in how you regularly handle your money expenditures. I’ll be honest with you, I am no guru on finances, I don’t know all the answers but I happen to have a well-educated and experienced “rich mom” who has taught me a lot about utilizing money so I thought I would ricochet my understanding and her knowledge your way. (I cant be the only one to have access to this goldmine of information). Again just to remind you, the theme for my blogging page is to learn, grow and prosper. Let me know what you learned or already knew but want to apply now in your life in the comments section down below.
~Brief summary of topic~
1. The dreaded B word…B*dget:
10%, 10%, 10% and 70% rule by my mom Janepher – 10 for self which can be saved for retirement and compounded as time goes if you start young, 10 for tithe (paying your most important success partner), and 10 for personal investments. The remaining 70% can be budgeted for your daily needs including saving for a 6 month emergency fund.
*An emergency fund is an amount you save per month that can enable you to live comfortably if an emergency occurred. (lets say you can live comfortably with $2,000 a month, that means you need $12,000 saved aside in your emergency fund if something were to happen to you).
2. Make assets your friend and liabilities your enemy:
Know the difference between an asset, which place money into your pocket vs liabilities, which takes away money from your pocket. The goal is to acquire more assets while decreasing your liabilities. That simply means focusing on paying off your debt and increasing your cash flowing assets.
*If it’s difficult for 70% to cover your needs, then that means you gotta get up and start thinking about ways you can expand your means. For example a small business on the side that serves as an asset can increase the amount in your 70% and enable you to live comfortably in that bracket.
3. Take care of your health:
your health is not only physical but it also includes financial health as well as spiritual, mental, emotional, and social. According to my mentor (mom) I have learned that all of these work together and affect how you acquire and manage your wealth. Do not ignore these pillars of health and your financial success will become both stable and enjoyable.
Additional to this podcast, please also remember to keep track of what you spend. To start you may write down a record of your expenditures, this way you can accurately determine where your money is going and encourage you to stay in control of your expenses. Writing things down has been proven to help enforce change and aid as a reminder to get things done. So keep writing!
Now, let’s not waste any time so lets get listening! Here, in an audio-interview format, are 3 vital ways to increase your financial success!
3 ways to increase your financial success podcast!