3 steps to improve your financial situation! What is your financial truth? Are you actually spending more every month than you are making? Do you have savings? Do you have investments? Do you own properties?
Do you live paycheck to paycheck? Are you naive when it comes to finances and you absolutely do not have knowledge about money and investing?
These 3 steps can bring your financial life to the next level. Take these 3 steps to improve your financial situation.
Step 1: Know all income in your household
Know all income that comes in your household. Income you receive when you exchange your time for money, as salaries, self employed income. Know also your passive income. Passive income is when a system makes you money.
If you are living paycheck to paycheck and you want to improve your financial situation you must change your focus from active income as salaries, self employed income to passive income from businesses and/or investments.
Salaries and self employed income are income you receive by exchanging your time and effort. If you want more money you have to work over or get a second job. Spend your time and money wisely. Buy assets as businesses and investments. Assets generate passive income. To become financially free your focus must be to acquire assets.
Step 2: Know your expenses
Know also your expenses. What do you spend every month? What are your monthly expenses of your mortgage or rent, car, insurances, utilities, necessary clothing, food, credit card and other debts? If you know your numbers you know where you are financially.
Knowing your numbers and managing your money are important steps to financial freedom. Financial freedom does not mean having enough to survive. Financial freedom means having the money to live the life you want. Financial freedom means having the freedom to be who you really are.
In the process to become financially free, you have to grow. You have to be another person than you were yesterday. Change your thinking and habits around money. Track your spending. Ask yourself the following question when buying anything: “Do I really need this item or do I want it?”
Have the self discipline to spend your time and money wisely. You have to let go old ideas and beliefs from the past that are not supporting your goals. You have to focus and have a commitment to constantly learn and grow.
Step 3: Know the investments that you own
Know the investments that you own. Do you have stocks, bonds, real estate other than your home, business investments, intellectual properties, gold and/or silver? What do you have that is making you money without you working for it?
If your goal is to become financially free and you do not have any asset yet start acquiring the knowledge and skills you need to acquire and manage assets. Your focus must be to acquire assets. Take action. Get busy. Get going. The faster you move in the direction of your clearly defined goals the faster you will become financially free.
Keep reviewing your numbers as total income, expenses, investments that you own. If you do not review your numbers how will you know that you are making progress? Make it measurable. Monitor your progress on a regular basis. It will give you insight in your financial situation.
Be committed with yourself to review the numbers weekly. The numbers are always changing. Discipline yourself to do the things you need to do, every hour of every day, to assure that you achieve your weekly, monthly and annual goals. Keep reviewing the numbers and you know where you are going financially.
For your financial success!