Why doesn't your bank account reflect your growing financial culture?

Why doesn't your bank account reflect your growing financial culture?

GET-RICH    January 25, 2022   

Why doesn't your bank account reflect your growing financial culture?

The road to financial freedom is not easy, and once you take your first steps along this path, you will be hampered by obstacles. Many people get frustrated and give up quickly, while others resist for a while, but without results, and then give up. Only the few who persevere can progress and truly get rich.

Many people don't understand why they didn't come close to achieving financial freedom, even though they've been developing their financial culture for a while, some of them have read a lot of books, take courses. But he wonders: "I am financially educated, but I am still unable to increase my income. So where's the flaw?"

Veteran financial expert Robert Kiyosaki asserts that action is the decisive factor that turns ideas into financial flows and reality, and that makes the difference between sweet wishes and real dreams.Our actions and behaviors determine our future, so if you think you are learning financially and developing your financial culture, but without tangible results, there are probably reasons why you can't do what you want and hinder your progress.

Robert Kiyosaki emphasizes that there are five basic reasons why financially educated people cannot achieve significant cash flows, whether consciously or unconsciously. Of course, overcoming these reasons is not easy, but it is necessary to achieve wealth:

1. Fear

This is the most common reason why most people are not rich. If you're not afraid of anything, what can you do now to get rich? Resigning from your job? Starting your little business next to the job? Creating your own company? Investing your savings in owning income-generating assets?

Many people spend their time reading, studying, and increasing their financial knowledge, but when it's time to act according to that knowledge, they back off. Afraid.

Fear is understandable, risk and change are scary, and it's no problem if you feel scared, but the problem is to let your fear overwhelm you to the point where you don't do anything at all. The fear of being normal then moves into an obstacle that stands in the way of your true freedom.

2. Questioning

Skepticism and pessimism are another form of fear: mistrust that prevents you from having the necessary self-confidence to help you progress. This mistrust can be a distrust of yourself, deep self-doubt, paranoia about markets, questioning a strong agreement, or backing away from a last-minute investment.

Questioning yourself, in your abilities, will hinder you with the results you will get... Whatever way it manifests itself. You must learn to distinguish between real anxiety and exaggerated fear.

If you are financially educated and have done the necessary research and studies, you should trust your abilities. You don't have to let others convince you not to do something you know is right, and you can't stop yourself from trusting your thoughts and information.

3. Laziness

We all think we know what laziness is, it's lying on the couch for five hours in a row watching TV and eating popcorn. If you accuse a hard-working person of laziness, you often receive a very angry response.

Laziness affects all of us, however, and busy people are usually the laziest people. People become "very busy" easily and cannot do and give priority to important things, such as their health, family, or money. They go to work and work all day, and they feel very tired when they come home and don't do anything else from hyper fatigue.

When they're not busy with work or family, they're usually busy watching TV, playing golf, or shopping, but they know in their mind that they're avoiding something important.

This is the most common type of laziness: laziness by staying busy.

So, take an honest look at your life. Is your excuse for not investing that you're too busy? What does that mean? What are you busy with? How does that stop you from achieving financial freedom?

4. Bad habits

Our habits control our future, and if you have bad habits, your future slips out of your hands.

Bad habits are the worst possible obstacles for you because they are very difficult to get rid of, they require discipline and sustained and informed efforts.

Not many people have the discipline to get rid of their bad habits, and worse, many people don't even realize that their habits are bad in the first place. For example, a person who sleeps late on weekends may think that he or she makes up for the sleep he desperately needs, but the habit steals from him many hours from which he could research investing in it or building side work.

Reflect on your life habits, some of which may be so immersed in your daily routine that you don't notice them. And think. How do these habits hinder you?

5. Vanity

"Every time I felt arrogant," Robert says. I lost money because when I'm cocky, I believe that what I don't know doesn't matter."

I found that many people use vanity to try to hide their making, they embezzle and over-show confidence to hide from the fact that they don't know what they're doing. Instead of humbly acknowledging what they need to know, they blame others and circumstances for their failure.

If you can't be honest and humble with yourself, you have no chance of freedom.

Good news: If you have one of the above factors, you have a very big chance of getting it right. This task is not, of course, easy, otherwise, everyone will achieve financial freedom in a short time and with ease. But generally knowing the reasons and behaviors that hinder you from increasing your wealth is the first step.Make sure that with training and perseverance you will be able to overcome these bad behaviors and feelings and find your way to freedom.

5 Personal Reasons for Personal Financial Stumbles

5 Personal Reasons for Personal Financial Stumbles

GET-RICH    January 24, 2022   

 5 Personal Reasons for Personal Financial Stumbles

When it comes to failure and financial poverty, it is easy for one to shirk one's responsibility and blame circumstances and others.

No one denies external reasons or factors! But blaming it will not work and will not come to any conclusion, but what everyone has to do is take the initiative to take responsibility for their current and future financial situation.

We will share with you in this article, 5 personal reasons that are a factor in many people remaining on the financial side of their lives:

1. Weak motives.

In other means, a person has no justification for his interest in earning more money, developing himself, and improving his standard of living. Satisfied with a little, whether lazy or incapacitated, is a negative conviction and a weakness in the energy, and maybe caused by either:

- Lower personal expectations ceiling.

- Or surrender to challenges and obstacles.

2. Low professional skills.

Those skills qualify you for the right job opportunity or those that qualify you to be promoted in your current job or move to a more appropriate job to improve one's income.

There are skills that anyone can use to improve their chances of increasing their income, whatever their job or job, such as learning:

- How to sell

- How to negotiate

- How to manage his relationships?

- How to invest?

3. Financial illiteracy.

In this case, the individual is ignorant of the simple alphabets of financial development that ensure that his or her future and that of his family are secured, and he or she is also ignorant of the financial mistakes he has to avoid so that he does not waste his financial resources in useless matters.

Financial illiteracy can flood its owner with debt, fail its business, make it vulnerable to fraud and deception, or make it spend its money without a clear and random plan.

4. Lack of a financial application program.

Per capita income may be acceptable, but it does not develop for a better future. Myopia, lack of planning for the future, and a lack of vigor in doing what needs to be done are major disasters. If that person is forced to leave work for any reason (e.g. illness, disability, old age, or expulsion from work), it becomes an over-number of the poor!

5- Distorts faith and spiritual beliefs.

For example, a person may think that money is from the filth of the world and its dirty filth that hurts the soul! He may also think that his poor financial situation is justice and destiny, which would justify his inability and laziness, and he would not strive to take the reasons. Others may believe that poverty is a noble virtue of faith that guarantees him a dignified return!

What is the budget? Its purpose, importance and methods of preparation

What is the budget? Its purpose, importance and methods of preparation

GET-RICH    January 24, 2022   

What is the budget? Its purpose, importance, and methods of preparation

What's the budget? Is an income and expense spending plan. In other words, find out what money you earn and plan your expenses over a certain period, such as a month or a year.

Managing your income and expenses includes a comprehensive list of expenses. Some people prefer to write their budget manually, while others use a spreadsheet or budget application. Choose what suits you and what you're comfortable with, there's no right way to budget, so what suits someone might not suit someone else.

The 50/30/20 budget is one of the best schemes to help you do the job. This method suggests that you spend about 50% of your monthly income on necessities, 30% on wishes, and 20% on savings and debt repayment

What is the purpose of the budget?

The budget should not be linked to self-denial, all it is about is controlling funds more effectively to maximize interest. So you shouldn't look at it as a penalty, and remember that it's a plan to manage your money only, including the ones you spend on pleasures and desires.This budget will change as your circumstances change, your budget should be as flexible and adjustable as possible, and don't forget to leave room for adaptation, sudden events, anticipated events, or an additional source of income.

What is the importance of the budget?

Budgeting can be beneficial to everyone and not just to those who suffer financially. It encourages you to live within your means and invest your money in the best possible way. Think of the budget as a starting point for your financial goals that will help you:

Understanding your relationship with money: 

Tracking your income and expenses will paint a clear picture of how much you should save or spend. Maybe you spend less than you earn and that's great, but you might pay to sign up for something you don't need anymore either. If you spend more than you earn, that's a big ambition that could lead you to an unconscionable debt hole.

Saving enough for tomorrow's responsibilities:

 A good budget includes allocating funds to the emergency fund and savings targets such as buying a car, vacation, or retirement.

Keep yourself out of debt:

 Planning out-of-advance expenses reduce the risk of overspending and falling into the debt trap, and can help you pay off your debt more easily.

Stress relief:

 The budget is not a cure for all problems, but it will help you manage financial decisions and prepare for challenges.

How to set up a budget?

Are you ready to set up your budget? Start with the basics. This includes determining your income, bank balance, debt, and tracking expenses.

Next, prioritize and find the right budget system for your needs that may suit you to the 50/30/20 budget rule. If you have a problem, try the following budget tips:

1. Determine why the budget is drawn up

Start by determining why you created a budget, are you overspending, are you in debt, or are you looking for expenses to reduce? Or maybe you save for something like a wedding, a newborn, or buying a car.

"Determining why you're preparing a budget will enhance your chances of success and help you stick to it," says DeDe Jones, certified financial planner and managing director of Innovative Financial.

2. Use convincing language

The term "budget" may sometimes seem unconvincing. "People resist it because it doesn't convince them," Jones says, recommending switching the phrase to another that makes you feel more comfortable like a "spending plan." Whatever phrase you choose, it shouldn't scare, restrain you, or feel disadvantaged, but it should be an opportunity for your financial success.

3. Test different methods of budget planning

Just as there are many reasons to create a budget, there are many ways to achieve it. Some people manually record and track expenses every day, while others want to do as little work as possible, choose a related app, etc.

4. Setting priorities for expenditures and objectives

Start by understanding the difference between needs and desires, then focus on the basics first, such as survival, housing, and transportation costs.This does not mean that other expenditures are not important, but the purpose of the budget is to understand whether your money goes to priorities first and then to determine how much luxury expenses the budget can afford without forgetting the savings and emergency clause.

Budget 50/30/20 is a good guide to covering key spending categories that suggest using 50% of your income to meet needs, 30% towards desires, and 20% for savings and debt.

5- Leave room for surprises

Life has always surprised us with things that were not taken into account, so you should take precautions to relieve the pain of the strike. Allocate a little money to cover miscellaneous expenses each month and make regular contributions to the Emergency Fund. In this way, you can handle unexpected car repairs or other emergencies ideally and effectively.

6- Use technology responsibly

Technology can help you mitigate the boring aspects of the budget and prevent setbacks, so why not let it do some tasks for you? Try setting up automatic conversions so you can pay bills regularly, and rely on budget apps to easily track your spending.

7- Reconsider your budget every month

 Income may change and some expenses vary from month to month or some of them may appear infrequently, such as gifts, holidays, etc. Checking your budget at least once a month allows you to deal with fluctuations promptly.

Income Distribution Method

GET-RICH    January 23, 2022   

Income Distribution Method

Senator Elizabeth Warren promoted the so-called "50/20/30 budget rule" in her book, All Your Worth: The Ultimate Lifetime Money Plan. This rule is based on the salary division model, to 50% on needs, 30% on wishes, and 20% in savings.

Salary division model

50% living needs

Requirements include your necessary living expenses and invoices you are required to pay, such as rental or mortgage payments, car expenses, grocery stores, insurance, health care, etc. The "Needs" category does not include additional items such as Netflix, Starbucks, and dining abroad.

Half of your income must be all you need to cover your living needs and obligations. If you're spending more on your needs, you'll need to rationalize your needs or try to reduce your lifestyle, perhaps by moving into a smaller house or an economy car, or cooking at home instead of eating out.<ref>What is the 50/20/30 Budget Rule? Investopedia. 2021-12-17.

30% desires and accessories

Desires and luxuries are all those improvements that make your life easier and those extras you spend money on to make your life more fun. This category includes the costs of eating out, watching new movies and clothes, vacations, and the Internet. You can save, for example, by exercising at home instead of going to the gym, cooking instead of eating out, or watching sports on TV instead of getting tickets to the game.

20% savings

Finally, try to allocate 20% of your net income to savings and investment. This includes adding funds to the emergency fund in the bank savings account and possibly investing in shares, etc. You must have enough savings to cover at least three months in case your job is lost or an unexpected event occurs.Don't forget to focus on retirement and achieving other financial goals in the future as well. If emergency funds are drained, the first allocation of additional income should be to renew the emergency fund account in anticipation of what may happen.

Rule 50-20-30 aims to help individuals manage their income. Each family must prioritize the establishment of an emergency fund in the event of loss of employment, medical expenses, or any other unexpected financial cost. If the emergency fund is used, the family should focus on renovating it.

Summary

Splitting salary is not easy, and life often throws unexpected expenses at us. But thanks to a 50-20-30 salary division model, individuals have a budget and financial plan that effectively manages their income. If they find that their needs expenses are more than 20%, for example, they can find ways to reduce those expenses and then direct funds to more important areas such as emergency funds and retirement.

5 easy ways to save money

5 easy ways to save money

GET-RICH    January 19, 2022   

5 easy ways to save money

Saving money is a real and a chronic dilemma for many people, but it's not impossible if you find a way to suit your circumstances and personality.

In a report published in the Spanish magazine TechBit, author Andrea Nunez outlined five of the most widespread and effective ways when it comes to leaving part of monthly financial income and improving financial management.

Modern technologies are now used in all areas of life and can also be used to address the problem of saving money, the author says, most notably the emergence of mobile applications to regulate and encourage this, and to solve the problems of the savings that people have faced since the advent of money as a means of business transactions.

The aim of saving may be to ensure a good standard of living when referring to retirement, to save on the costs of making a dream trip, to invest in a business, or to the anticipation of expenses and emergencies.

1-Japanese way "Kakibo"

This traditional method, which appeared in Japan, also known as the "home account book", revolutionized financial savings, and has been talked about by many writers in Western countries, and advised by economists.

It is a bookkeeping to record all expenses and incomes, which enables you to think about your habits, learn how to save, and improve your financial management skills.

At the beginning of the month, you write down a certain amount of income and expenses, how much you want to save for and the various expenses you may face this month, then start recording every amount you spend and then look at your balancer.

The Japanese consider that the Kakibo method not only enables them to save money, but also gives them psychological calm.

Modern apps you can use to help save money

2-piggy bank

This method is old, requires the purchase of a sturdy, large-sized shop, and then you start throwing coins and small amounts that the seller returns to you or what's left in your pocket when you go out shopping and don't allow yourself to open or break the meat until it's full.

You can use several methods of saving, by placing only coins or putting 10% of the banknotes inside the mat, and you'll be surprised by the amount you've collected when your pebble is full and you bring a hammer until you break it.

3-52-week challenge

This method is very widespread in Anglo-Saxon countries, and it is to save money on an upward trend every week since if you save only $1 in the first week, you are in the second week saving $2, then three, and so on.

In this way, the amount you will save will increase each week, as it will exceed $200 in the last month of the year, and can also be done in this way, but inversely, by starting with large amounts and ending with $1, which may simply enable you to save $1,378 a year.

4-Hard Iker Method

In his book Secrets of the Millionaire's Mind, Canadian writer Harf Iker proposes a simple system for distributing monthly incomes based on percentages, which must be divided every month as follows:

55% for basic needs and necessary facilities, such as rent, bills, bank premiums, and food.

10% savings, which is untouchable, and will enable you to raise money over time.

10% for sports and personal development, by purchasing, sports equipment, attending courses and events, and buying books.

10% for long-term investments, which are the huge expenses you may face in the future, such as getting a driver's license, going on a family trip, or renovating home furniture.

10% for entertainment and enjoyment, and 5% of donations.

Thinking about your habits and improving your financial management skills helps you save

5-The way the envelope

This method aims to improve your ability to dispose of the home economy, which has been in use for many decades and requires you to raise all the money in one place and calculate your expenses throughout the month, after which you must decide how to divide the money, but each amount in an envelope and write down its destination.

Once the money is organized and divided in this way you will know how much is left in your balance to cover basic expenses and how much you have for entertainment and secondary things.

7 smart and simple ways to save money when shopping

7 smart and simple ways to save money when shopping

GET-RICH    January 18, 2022   

7 smart and simple ways to save money when shopping

The Corona pandemic posed a financial challenge for all, from adapting to working from home to meet difficult future budgetary challenges, planning emergency funds, and living under turbulent economic conditions. Perhaps the last thing we would like to spend our money on is groceries.

In her report published in the American magazine Real Simple, writer Betty Gould said preparing food at home can save you a lot of money. If you want to save money when shopping for food, you can follow these genius tips and tricks provided by savings expert Lorne Grossman.

1-Prepare a weekly meal plan

You should develop a strategy before shopping. Select the meals you'll make during the week, and then don't need them on your phone's grocery list. In this way, you will avoid unnecessary purchases, reduce food waste, and spend less time shopping.

You can also prepare enough food for another meal. If you plan correctly, you can save your food and savings for several days.

2-Check out the supply room before shopping

It's important to check supplies before going shopping 

3-Plan your meals according to discount offers

"The big mistake people make is to shop automatically," Grossman said. Many people don't browse sales publications to plan their meals according to the products included in the discounts. Grossman said she likes to plan her meals according to the food offered for the cuts that week, such as choosing salmon for food if it is included in a reduction.

4-Get a grocery delivery service

Grocery delivery services allow you to shop while you're at work, and within 2 hours, everything you need to prepare your weekly meals will get you home.

5-Don't ignore filter cuts

The author stated that stores always filter inventory to provide space for new products, where the reduced rate can be as high as 50% or more. Just check the expiration dates.

6-Use basic ingredients

Remember that you can be creative in using basic components instead of focusing on special items. Instead of buying an ingredient you can use for just one meal, buy a range of basic and affordable ingredients and consider the recipes you can use.

7-Buy in bulk and what you can only use

Grossman says buying foods such as rice, cereals, and dried fruit in bulk can save you at least 30% of the money.

8 top tips for achieving financial independence

GET-RICH    January 17, 2022   

 

8 top tips for achieving financial independence

To grow your wealth, you need to invest part of your income in high-return investments. Recording your income and expenses constantly achieves financial independence (Getty) 19/9/2020 achieving financial independence is a goal for all people, who dream of achieving it because it not only

 provides them with abundant money but also power and freedom.

In a report published by the Spanish website Pseco Activa, writer Espalia Farias says that achieving financial independence makes a person free in his or her actions, away from the interventions of others, and gives him full freedom to make his or her decisions.

But the question is how to achieve this financial independence, so the site initially points out that the writer Nelson Enrique Rodríguez, in a study published entitled "Money, Management and the Search for Financial Freedom", warned that many confuse wealth with financial independence on the other, a mistake not only for heads of households but even for businessmen.

Those who manage their savings and dispose of their money can achieve this goal, especially after following a set of financial advice and rules.

1- Control your money

Avoid spending on unnecessary purchases, as much of what you bring home, may end up in the basement without using it, so you just have to buy the things you need, avoid irrational shopping behavior, especially during discount periods such as Black Friday, as well as the need to record and calculate all income and expenses and control them.

2- Caution in the use of the credit card

The bank card should be used consciously, and pay attention to the amounts disbursed through it, especially since sometimes we do not feel the value of the money when we do not pay it in cash out of pocket.

Credit Card (Strastoke) It is necessary to pay attention to the amounts disbursed through bank cards (Strastock)

3- Record your expenses

It is very important to hold personal accounts and record all income and expenses, to monitor and follow where your money goes, which will make it easier for you to manage, and today many smartphone applications can facilitate this.

4-Improving the career path

The site advises adventure, breaking into new professional areas, or changing jobs, if you believe that your current career is not promising and does not bring you the financial prosperity you aspire to, in our time, many have succeeded in relaunching their careers and breaking into new areas, by developing their way of thinking and skills and keeping pace with the modern changes in the world.

5-Long-term planning

Beware of crazy behavior and quick spending, especially for those who act like there isn't tomorrow, and they often have the problem of compulsive spending when shopping.

No one can expect what can happen in the future, every human being is vulnerable to many unpleasant accidents and surprises, and financial conditions can be turned upside down day and night, so part of the income must be saved for Black Day.

Part of the income must be saved and allocated for crisis time (Getty)

6- Work-based on realistic objectives

You may not be able to buy the car you want this year or even next year, but you can achieve this goal by making simple and steady strides by raising money gradually, a much better way than falling into the loan trap and spiraling debt that will deprive you of sleep.

7-Diversification of sources of income

You may have a lot of talent and abilities, which you can activate and make a source of money by taking on a second activity alongside your job.

It is also recommended to diversify investments and divide them into diverse opportunities and areas, to avoid losing everything once in the event of a crisis.

8-Some money has been allocated for training

The site advises every ambitious person to invest in improving their professional qualifications and gaining new knowledge and skills that give you more opportunities, which is the best investment to make more money in the future.

In conclusion, the site warned that a person should reward himself from time to time if these tips are adhered to, as austerity and excessive and persistent discipline may have negative effects, so part of the money must be allocated for entertainment and free disposal, and to carry out enjoyable individual or family activities.