WHEN YOU WILL HAVE FINANCIAL SECURITY ?

 

DO YOU KNOW ?

WHEN YOU WILL HAVE FINANCIAL SECURITY?

FIRST YOU HAVE TO UNDERSTAND THERE ARE TWO TYPES OF INCOME

1 ACTIVE INCOME

2 PASSIVE INCOME

ACTIVE INCOME

 

THE INCOME YOU RECEIVE AFTER PERFORMING A SERVICE FOR OTHER

HERE YOUR INCOMING MONEY DEPENDS ON NUMBER OF HOURS YOU WORK.

PASSIVE INCOME

 THE INCOME YOU RECEIVE FROM YOUR INVESTMENTS.

HERE YOUR INCOMING MONEY DEPENDS ON YOUR INVESTMENTS LIKE STOCKS, BONDS, RENTAL PROPERTY, BUSINESS ETC.

WHAT IS FINANCIAL SECURITY?

THE STAGE WHEN YOU ARE NOT DEPENDENT ON YOUR ACTIVE INCOME.

WHEN YOU ARE INDEPENDENT OF YOUR ACTIVE INCOME?

WHEN YOUR PASSIVE INCOME STARTS FILLING YOUR MONTHLY EXPANSES.

WHAT THIS MEAN?

THE RETURNS YOU EARNED FROM INVESTMENTS LIKE STOCKS, REAL ESTATES, GOLD ETC. ARE GREATER THEN YOUR MONTHLY EXPENSES.

EXAMPLE:

MONTHLY EXPENSES: RS 25,000

YEARLY EXPENSES: RS 3 LAKHS

YOUR INVESTMENT PORTFOLIO: RS 50 LAKHS

AVERAGE RETURN PER YEAR: 10%

INCOME FROM INVESTMENTS PER YEAR: RS 5 LAKHS

5 LAKHS > 3 LAKHS

IN SUCH CONDITION YOU HAVE FINANCIAL SECURITY.

 THE MORE YOU INVEST TODAY WITH PROPER KNOWLEDGE, THE MORE YOU WILL BE FREE TOMORROW.

 

Thank you for reading so far I hope you found something useful from this post, then please give us a subscribe, this will really encourage us to do more.

 

HOW TO USE A BUDGET

HOW TO USE A BUDGET

USE EXCEL OR GOOGLE SHEETS

 SEPARATE YOUR INCOME AND EXPENSES

 COMPARE TOTAL MONEY IN WITH MONEY OUT 

FIND LEFTOVER MONEY NOT PAYING EXPENSES

 TRACK EVERY SINGLE PURCHASE YOU MAKE

DETERMINE WHERE YOU ARE WASTING MONEY

 MONITOR AND SEE EXACTLY HOW MUCH YOU ARE WASTING

TRY HARDER TO SAVE AND NOT SPEND LEFTOVERS

 IMPROVE EACH MONTH AND WATCH YOUR SAVED MONEY INCREASE.

 

Thank you for reading so far I hope you found something useful from this post, then please give us a subscribe, this will really encourage us to do more.

IMPROVE YOUR FINANCIAL STATUS

IMPROVE YOUR FINANCIAL STATUS

Track your expenses

Tracking your expenses helps you to see spending mistakes before they become disastrous personal finance problems. Tracking your expenses helps make you more mindful of spending in the moment. Tracking your expenses can kill financial stress.
Read books about finance 
It makes the reader understand how very simple finance tips can help in managing your everyday finances while the “pay yourself first” money can help in wealth accumulation for the future.
Have a side hustle
A side hustle is any type of employment undertaken in addition to one’s full-time job. A side hustle is generally freelance or piecework in nature, providing a supplemental income. Side hustles are often things a person is passionate about, rather day a typical day job worked in order to make ends meet. 
Always use coupons

People use coupons to save money. … However, coupons allow stores to also get business from people who have relatively more time on their hands (to find and cut coupons) than they have money, and would only make the purchase at the lower price offered by the coupon.


Find a mentor
 financial mentor is essentially someone who can help you plan smart strategies for how to spend, save, and invest your money. Money can get complicated and having a trusted financial mentor can bring clarity and context to your financial decisions and make things like investing and saving a little easier to manage.



Start Investing

Investing when you’re young is one of the best ways to see solid returns on your money. That’s thanks to compound interest, which means your investment returns start earning their own return. Compound interest allows your account balance to snowball over time.