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Like my hommies say, money is the watch word . You' gotto make the money and shut some people up for good. But getting the money is not so easy afterall, even tho there is illegal money.
Like my rap Model Phyno puts it, Make it the right way and hurt nobody . But the big question is How can i be Financially Stable and Independent ? Thats why mywaptutors is here, relax and enjoy this tutorial.
7 Ways to be Financially Stable
Change you mindset about money
Too many people've got the wrong mindset about money.* Money is evil – the truth is, money only take the nature of those who handle it.
* Some are born poor – The truth is no one is born to be perpetually poor. You can walk out of poverty by hard work and applying right financial principles.
One thing is, The poor see every income as harvest, But the rich removes seed for investment before consuming the rest.
Reason that.
Understand your income level
There are three Personal Financial Statements you must consider in establishing your financial stability. They are:• The Cash Flow Statement: This is an account of your past expenditures. Most people whosay they budget are actually only tracking their cash flow, after they’ve already spent the money. Now you can effectively view and manage your cash flow without even lifting a pen.
• The Balance Sheet: This is a snapshot of your assets and liabilities at a particular moment in time. What you own and what you owe. It sounds simple, but although you’re likely familiar with the myriad of statements for assets and liabilities that flash before your eyes each month, the completion of your own balance sheet will give you an aggregated view of your financial realm.
• The Budget: This represents your financial future. It’s nearly impossible to create without first having completed the exercise of creating a cash flow statement. With that in hand, you're ready to create your budget. The projection of what your spending should be in the future.
For most of us, our income and expenses run on one of a few variants of a monthly cycle.
Cut down on expenses.
The first step to financial freedom is cutting down on unnecessary expenses you make that cause financial leakage.Most people believe the key to wealth is a high-paying job. Yes, it's easier to a mass assets if you have more money coming in each month, but the true secret to increasing your net worth is to spend less than you make. It is a cliche; but it is the fundamental, absolute, non-negotiable reality of money.
Example if you are in the habit of takinga bottle of drink (Teem or beer) after every meal, you should cut the intake or stop it. For a person that bottle of Teem is 120, in a month you would have consumed #3600 and in a year #43,200.
Imagine how much you would saved in a year if you choose to cut down this habit and set this income aside.
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Increase your income.
Incomes comes in different ways to an individual; Salary, wages and royalties. Income is money received, especially on a regular basis, for work or through investments. Thus if your job doesn’t pay you as much as you think evaluate it again, maybe it’s time to seek for a better paying job. Wages are monetary compensation (or remuneration, personnal expenses, labor) paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed (a task wage or piece rate), or at an hourly or daily rate, or based on an easily measured quantity of work done. You can work on having multiple income streams. By this, I mean using the extra hour after your current job or weekends to do things that will add to your income E.G add monetary value to services you render eg decoration, research for people and charge atoken. Lastly, Royalties and Rent-Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. What do you have that can bring in extra cash? You own a house were some of the stores have been locked up for a while? Then give it on rent, if you have more than one car and seem to be finding it difficult to maintain both. Then give out one for taxi to generate extra income.Start saving.
As Napoleon Hill said in, " Think and Grow Rich ", all financial success starts with the saving habit. When opportunity presents itself, those with the capital set aside to take advantage can profit big, perhaps even enough to be set for life. Until you start saving, your finances is not safe. Savings is the portion of disposable income not spent on consumption of consumer goods but accumulated or invested directly.No matter the amount you earn, try never to consume all of it. The poor will always be poor and broke if they don’t break the cycle of depending solely on a pay check. Save something from your income and then reinvest it, by that way you will become independent from always waiting for the next pay day.
RELATED: 6 Habits that Can Make You Die Wretched
How to save
* Set aside a portion of your income no matter how little.
* It takes sacrifice to save so stick to the plan. So be determined to stay through.
* Spend what is left after saving and not vice versa.
Where to save
* Open an account that you CAN'T be easily accessed and put in the saving.
* Take an insurance policy where the savings can be locked up over a period of time. eg take FBN Insurance, flexible savings policy.
* Join a local contribution club, (Ajo or Isusu) where a certain amount is saved randomly on monthlybases.
Start investing
The difference between the rich and the poor is in what they do with money. The poor thinks on where to spend the money but the rich thinks of what to invest the money on. Thus to become financially Stable, after saving use the money to invest on something that will generate more income rather than dispose it on consumables.Avoid debt
Debt steals your income even before you get it, says my Secondary School Principal. As much as possible, avoid debt. Before you go into debt ask yourself; Is this debt absolutely necessary? Aint there alternative to what you want to do? Can this project, be delayed and payment be negotiated instead of going to borrow to finance It?No matter what you think about debts, the truth is you will be much better off if you avoid new debts and destroy the ones you already have.
In everything you do the key that keeps you to the end is continuity. Don’t just start, keep at it till you reach the desired goal of becoming truly Financially Stable.
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