Personal Development, Business, Finance, and Investing for Everyone
An investment in knowledge always pays the best interest.
The secret to financial security is not to have more money, but having more control over the money we presently have.
First, for virtually everyone, financial security means being able to meet life’s expenses, which often include:
Second, we cannot rely on others to provide sufficient resources to achieve financial security. We must accumulate some investments on our own. Accepting that you are solely responsible for your financial success is the first critical step.
Third, the only sure way to get money for your investment is for you to create an excess of income and save regularly.
Fourth, to create that excess (positive) cash flow and to save regularly is to spend less than you earn. How? You need to live simply, avoid impulse buying, and create a budget.
Fifth, there is no secret to spending less than you earn – it’s just a matter of living beneath your means and not “within.” Again, your income should be greater than your lifestyle cost for you to create that “excess.”
Financial security is not so much dependent on how much you earn, as it is on how much you spend. Many rich people spend more than they earn; many people of very modest means spend a lot less than they earn. Some people may have the same income as you, the same number of mouths to feed, and the same rent or mortgage to pay, but they are probably spending a lot less than you are.
The common problem of those people who got bigger income tends to upscale their expenses which is what we call “lifestyle inflation.” Do not fall for that trap! If you manage to increase your income, do not increase your expenses yet, take that opportunity to invest more or create money machines.
We all know how important it is to spend less so that we can save more, but far too few of us do a good job at it. Our society worships the good life and consumerism. Most people can’t let our friends, neighbors, or co-workers beat us in the game of acquiring “things”(never-ending). If we don’t have them, we are made to feel that we have failed. As the famous quote says, “We buy things we don't need with money we don't have to impress people we don't like.”
We need to do a better job if we want to achieve financial security. Once you set your mind to it, cutting expenses can be easy. Here are more tips on how to develop your cost-cutting plan:
The newness effect of a new thing
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ABOUT THE BLOGGER
Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
Currently, I'm working my way toward time and financial freedom.