Capture Your Finances
One of the most important money tool is your income. Goals, vision, strategies, ideas, motivation and even thinking different and creatively are very much essential, however, if you do not know or have the correct ideas of how to control it and not able to take your income into action to build wealth which you get to control, you will never keep and have wealth you desire. To form wealth, you alone will have to capture and be in control your income. You will need to know the exact definition what cash flow is all about and where it should be going.
Many of us plan to fail and fail to plan. Hoping there is something left at the end of the month. Wondering where your money is. That’s one of reason why we are on hold and can’t move faster and further. Others simply plans with their mind, having it un-categorize with many other aspects of their personal concerns such as with their dreams, vision, life, desires, and many other more. As I always say you cannot hit the target if you cannot see it. Visualizing is not enough. To have a written plan is a necessity. Knowing where your money is going and what’s going on with the cash flow isn’t enough to move you to your further goals.
Creating written goals, organize plan, categorizing, gathering and analyzing information regarding your money situation is the key in able to hit that target. While you create your written plan, you will be amazed that solutions to money matters will easily appear. Create a written financial plan each month. This may take some while on the first time, but you’ll eventually get use to it easily.
Set up a new written budget every month. I use to take a lot of time and hours on budgeting and now I spend only few minutes on it each month. If you are worrying how to have it perfectly, no need to worry as you will never have it as perfect as you want it. It is mainly the process and results you need to understand and know.
Check on your monthly bills’ and income, debts and savings, and equal them until you have them all listed. Each dollar income and expenses must fit in every category. You may want to visit my other article categories about finance if you want to dig deeper into this subject.
Here is some of the basics categories you must include and consider; include housing, saving, food, utilities, transportation, allowances, personals, medical, debts and recreation.
Kindly exclude saving that are not monthly, such as anniversaries, birthdays, Christmas, taxes etc. When you have an unbalanced income from being self-employed, commissions or bonuses, you are still required to do a written planning every month. Prioritize everything; your savings, bills and debts in order to distinguish its importance and its urgency.
Try to ask this; “What would you be able to pay off first if you have the budget to pay it?” This is one method how you may go through your list. It may take a while before you have the correctly budgeting plan. But do not give up on trying. This is one key in connecting the dots to your financial success. Also see goal planning in my site as I recommended. Enjoy!