Personal Finance Strategy

3 comments

Magic Formula

  • Spend Less Than You Make = Wealth

No matter how much money you earn, this is true. The less you spend, the more wealth.

Principles:

  • Define wealth as having a balanced allocation and strategy for your financial goals.
  • Make sure to know your numbers, percentages, and saving/spending habits.
  • Study and get comfortable your finances even if it is ugly to look at.
  • Fall in love with your numbers even if its never perfect, treat it gently, and have patience.
  • Become obsessed with always lookig for ways to improve.
  • Aim to keep your essential expenses at no more than 50% of your income.
  • Save the remaining percentage minus taxes. (Ideally 30%).
  • Don’t be discouraged if you are not even close to that, but start soon.
  • From that percentage of savings, divide the amount into buckets.
  • Some buckets might include retirement, investments, cash savings, and dreams.
  • Break down all your expenses and savings into whatever frequency you get paid so there is more consistency and you know what to expect each time you get paid.
  • Pay yourself first. (This creates the habit and conditions it).
  • If you have high-interest debt, add an additional bucket for it and prioritize.
  • Personalize this strategy to fit your goals.

Some objectives to keep in mind:

  • Build an emergency fund.
  • Pay off high interest debt first.
  • Adapt this strategy to what works best for you.
  • Personalize buckets and balance them.

Thanks For Reading!

Have you been thinking about making some changes in your life? Improve some key areas? Becoming a better version of yourself? Life Coaching will help.

If you want to get deeper into investigating the forces that shape your life with Life Coaching Sessionsand transform your destiny, check our current offerfor a limited time.

3 comments on “Personal Finance Strategy”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s