5 Areas Of Your Financial Life
There are 5 areas in your financial life that you can take into consideration. Financial success revolves around these 5 areas.
They are:
1. Income.
Income is the source of your financial life. Without income, you are like an empty well. There can be no food on the table, no education funds for your children, no money to pay for the bills, no budget for "gimmick" or social life, etc.
You must have a good source of income.
2. Budget
Budget keeps you going. Without budget is just like a car with empty tank.
No matter how interesting your vacation plan is if you don't have budget, it will remain just a plan. No matter how beautiful your dream house is if you don't have budget, it will remain just a dream. No matter how lovely that wished car is if you don't have budget, it will remain just a wish.
You must have a sound budget to get whatever you wish, whatever want, or whatever you need.
3. Savings
'Save for the rainy days' is a popular quote.
However, to save goes beyond rainy days. You save if you plan to buy a new car; you save if you dream of traveling to another country; you save if your want to bring you family to a vacation; you save if you want to buy a new house; you save for the future of your children; etc.
The most important thing is you save for your RETIREMENT.
You must have to have an excellent savings plan.
4. Expenses
Spending keeps you going. That is true. If you will not spend, nothing will happen.
Will you not spend for food on the table? Will not spend for the education of your children? Will you not spend for the medicine?
If you have a project, will you not spend to keep it moving? If you are taking a vacation, will you not spend to make it memorable?
Expenses is part of the financial cycle. Just have a frugal spending. Don't just spend anything or whatever you want. Spend wisely.
5. Debt
Debt is not bad at all. There is a bad debt and there is also a good debt.
Bad debt is when you owe money and spend it with no return to expect. You will have a problem repaying this kind of debt. It will add burden to your obligation.
Good debt is one where you borrow money to invest on something so that you will gain more money to improve your financial net worth.
Use debt to increase your self worth and not to decrease it.
Again, your financial success revolves around these 5 areas. Make use of them on their brighter side.
Recent Comments
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That is where my mind is, in this coming year my mind is on bettering myself in every way. Thanks for the reminder.
I agree with all your points, people need money coming in, and need to spend it in order to keep going, such as on food, monthly expenses, etc. I work for the state government so I have a pension and a deferred comp. plan which I will get at retirement, and the money towards it are automatically deducted from my paycheck. Once I get a high-paying job or increase my income in other ways, I will contribute more. It will help me avoid having to work when I reach an old age. I also avoid credit card debt, I use credit cards for an emergency but avoid using them on things I don't need. It is a good thing I am not a shop-a-holic or I'd be in serious credit card debt!