Hello friends ,
Have you ever thought ? Why some people are successful in their life ? Why some people are rich ? The reason behind this is : This is all about mindset . Hence you should always educate and cultivate your mind about money . You should always track your cashflow .
What is Cashflow ?
Cashflow is the difference between your monthly income & your monthly expenses .
Cashflow = Monthly Income – Monthly Expenses
There are three cases :
Case(i) : If cashflow is negative : It means your monthly Income is less than monthly expenses .
Monthly Income < Monthly Expenses
Be aware ! Take action and control this situation as early as possible , otherwise day by day your liability will be increases and you would be under heavy debt .
Case(ii): If Cashflow is Zero : It means your monthly Income is equal to your monthly expenses .
Monthly Income = Monthly Expenses
This situation is also not good but better than previous one , because if you are in need some extra money which you have never thought then how can you manage ? You would have to take debt from your friends , relatives etc. for fulfilling you need .
Case(iii): If cashflow is Positive : It means your monthly Income is greater than your your monthly expenses .
Monthly Income > Monthly Expenses
This is the best situation . In this situation at the end of every month you have some extra money in your account & you can use this money for investment , doing some other work or any other future planning .
Now we are discussing about some simple steps for Wealth creation :
1. Educate & Cultivate Mindset :
You should always educate your mind about money & money management , discussing about money . You should ask question in your mind : how to start secondary income ? how to earn more money ? because single income can not make you rich ? . Hence educate yourself about personal finances & money management .
2. Decide your Destination :
Sit properly on your bed , be calm and close your eyes for sometime , when your mind became cool & calm think deeply what do you want to achieve in your life ? what is you financial goal . If you got the answer of this question then set your goal . Now big question is that how this goal can be achieved ? Don’t worry , come to next steps .
3. Saving & Investing :
As you know you have already set your financial goal . I suppose that your cashflow is positive i.e. case(iii) which I have already discussed . In every month you should follow this Rule :
Monthly Income – Saving = Expenditure
Now starts Investing your saved money in SIP (Systematic Investing Plan) . If you have invested few hundred dollar in a month , then at the end of year you have invested few thousand dollar & this process is going on . This investing habit will make you millionaire .
4. Control your greed / emotions in investing
You should always control on your greed and emotions in investing your money . If you have no knowledge about money management you should acquire knowledge or take advice from expert so that you could manage your money effectively .
5. Money Management :
Since you have invested your hard earned money & the process is going on ….. so it is necessary that you should track your money . For this you should learn about money management system . Learning is a great thing this will educate you & make you aware so you could take better decision to achieve your financial goal . By educating yourself about money & money management system that how the system works ? how several people earn lots of money ? all the answer will come from money management system .