Improve Your Finance Position: The Big Picture

   

Most people will think that to improve their finance position what they do is just increase their income. Unfortunately, that is not true at all. When people get an increase on their earning, immediately they increase their expenses: new house, new car, new TV, holiday, an many more. After a while they will found out that they are in the same position like before: living from pay check to pay check, no or negligible saving, and I bet the debt in form of credit card debt or other debt is even higher than before.

You can see the same situation with all those instant millionaire who won a lottery of some kind. After few years or even faster, their financial position not only go back to where it was before the winning, but also many found themselves in much worse position.

On the other hand, for those who knows the secrets, even without any increase in their income,  their financial position can be improved significantly: less debt, financial protection, more saving, and improved lifestyle. So, what does it takes to improve your finance position?

Preparation & Planning Are The Secrets

There 3 most important things that you must do as the preparation and framework of improving your financial situation:

1. Budget: You have to have a budget. By having a budget, you know exactly where the money goes, which expense is dragging you, and which cost that can be slashed. If you still don’t have a budget or don’t know how to do it, I suggest to read this article: Effective and Smart Budgeting With No Hassle In 15 minutes!
2. Saving: You have to push your self to have a saving. The amount itself is not important. You can just save maybe $20 per week, but if it become a habit and you got the discipline, it already reach the main purpose. Without saving, you cannot really go anywhere with your finance.
3. Educate yourself to increase your financial education: the fact that you read this article, this is a good start of increasing your financial knowledge. There are abundance of information that freely available on the internet. You just need to know what to search. The most important knowledge will be personal finance (budgeting, managing debt, etc), then you need to learn about investing. For example, you can start with : “Invest! Invest! No wonder they are rich!” portal. After that when you start fiddling with investing, you will realize that know something about how the economy work will be quite beneficial. And if you can afford it, joining a community who have similar goal and mindset (such this) will be a booster for speeding your success.

If you have all three factors above, whenever the break come – whether it’s a salary increase, unexpected inheritance or even lottery winning – you will be ready. You know exactly what to do with that extra money and use it very efficiently toward strengthening your financial position.

Millionaire Mindset

On the bigger picture, while you are trying to improve your financial position. You need to change your mindset. You need to have what I call “Millionaire Mindset“.

What is it? First of all, you need to plan your financial freedom. Your goal is to have such financial wealth that you don’t need to work anymore if you don’t want to. It’s maybe sound too far away now, but that’s how it starts for every single millionaire who achieve their financial freedom. Do not plan that you will be forever working to your company until you retire and then getting pension from government. This is “Pensioner Mindset”. You have to imagine first that one day, since your investment income will be enough to support you, you can fire your boss and do whatever you want in life. You need to dare yourself with this imagination and plan backward to your current situation. Take the first step and you suddenly already on your way toward it.

Then you will take your life as business (in term of your finance). Do not take “no” for an answer because you know you can do it.  See all aspect of your life in different angle as if you are already successful. Although still living within your means.  The mindset is not to say “I can not afford it” but “I want it, and I will make it happen by this, that and this”

And many more items that you can learn to improve your millionaire mindset. This mindset is the one that lead you to your financial freedom.

Good luck with your journey !

Related Posts

• Kiyosaki: “Savers are Losers” – A Sad Truth with a Catch
• Wanna be Rich? Change Attitude First !
• Effective and Smart Budgeting With No Hassle In 15 minutes!
• Everybody Can Be Rich Financially, Do You Know How?
• Credit History: An Important Document You Can’t Deny

Denis Kristanda  

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