Managing Finances - Govern Life
Man comes to the eye doctor and says, "Doctor, I have a problem with the view!". "What's the matter?" - Asks the doctor. "I earn money, but I do not see them!" - Meets the patient!
This anecdote is familiar to many firsthand. He may even reflect the financial situation you are in today.
This anecdote is familiar to many firsthand. He may even reflect the financial situation you are in today.
So what to do?
Learn how to manage finances!
For starters, let's look at the principles that will help you learn to "see" the money to control their financial flows and, consequently, control over their lives.
The first principle. Financial planning:
This is one of the most important and fundamental principles of financial management.
For any project needs a plan. For the organization of sound financial management requires personal financial strategy. It is tailored to the priorities and includes calculations for each stage of its implementation. This strategy is embodied in a personal financial plan (LFP).
LFP links existing needs of the person with his existing financial opportunities and helps to orient towards the goal.
AMI Consultants "Rich!" Are ready to make for you a personal financial plan according to your wishes.
The second principle. Money Control:
Have you ever tried to keep a personal or family budget? How easy or hard is it to do - you can argue and argue. The fact remains - people who have achieved financial freedom and consider themselves rich, necessarily lead it.
Budget - is a tool that demonstrates how much money you spend and on what. Knowing this, you can adjust their actions: to optimize spending and redistribute the money to build up reserves, invest, etc.
The third principle. Creating capital:
Creation of capital implies the preservation of the cash flows in the form of income. It gives a sense of equity financial freedom and security. But how to create what may be in your life have never been? Is it difficult to start from scratch?
Managing Finances - Govern Life |
No, if we use the principle of "pay yourself first." It is usually postponed for 10-20% of each income immediately after receiving it. For example, you got paid - set aside 10% in a piggy bank. Will give you 2,000 rubles a birthday - aside 200. So, little by little, you can lay the foundation for their future capital.
But remember! These funds can not be used for routine needs and spending! This is your emergency fund. It will provide you with financial security in case of emergency. And this is where we recommend to take the money to invest.
The principle of the fourth. Regular investment:
You all probably heard the phrase "Money should work for you," and it's true! When cash is idle, it depreciates due to inflation. Therefore, once you have accumulated a certain amount, you need to find an effective way to preserve and enhance it - the right tool for investment.
Investments - a multi-faceted process. In a broad sense - it savings in various types of assets that have a tendency to increase its value over time. In a narrower sense - investments to help create capital to keep it and increase!
The principle of the fifth. Risk insurance:
When choosing an investment company and the strategies necessary to remember the main rule of the market: the higher the income, which is expected by the client, the greater the risks. Be sensible and vigilant, choose a reliable company.
We AMI "Rich!", We recommend only the most proven investment companies. One of them - the financial company "Invest ALS." The company is engaged in the organization, deployment and management of capital. Guarantees and reliability of the company provide investors with a good return and safety of invested funds.
In this article, we reviewed the 5 principles of financial management:
Financial planning,
Cash controls
Creating capital
Regular investing,
Risk insurance.
Systemic application of these principles will allow you to achieve high performance, secure the desired level of income and gain financial freedom.
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