Strategic financial planning, realisting budgeting, consistent saving money and investing investable money to low-risk investment instruments are the top four factors that can help us grow money and become rich in the future. This is what Francisco J. Colayco always espoused. The financial guru and author of Wealth Within Your Reach, Making Your Money Work, Monay for Kids, Pasaporte, Pera Palaguin Workbook, Pisobilities… Bak Por Gud, will always tell on his various seminars this time-tested formula of growing money and financial abundance.
In the post below, I’m sharing tips on how to set financial goals that will work for you, how to do realistic budgeting, how to consistently save money and investing your money intelligently.
Setting Financial Goals That Work For You
Because everyone is different, each person has his or her own financial goals — and his or her own way of reaching them. This means that as you set your financial goals, you need to keep your own personal style in mind, and set goals according to your priorities. If you take the time to set financial goals that are personal to you, you will be more likely to work toward them, achieving success.
Best things to do in setting financial goals:
- Figure out what’s important to you like your priorities and what you want to accomplish with your money.
- Figure out how much money you will need to meet your financial goals.
- Decide where you will get the money from.
Setting financial goals that work for you requires some planning. Decide what you want to do, and then make a plan to achieve your dreams. If you are working for something that’s important to you, and if you have a plan of action, you will be more likely to succeed.
How to do Realistic Budgeting
A budget is one of your best tools for reaching your goals – whatever your age or stage in life. It’s a plan of what money you expect to receive and how you expect to spend it.
At first, budgeting seems hard but when you are accustom to it, it’ll become so easy. Basically, you add up how much money is coming into your household (your income), and how much is going out (your spending), then work out the difference.
The result is either money left over (a surplus) or not enough money to cover your spending (a deficit). Certainly, in budgeting, you have to aim for a surplus so you have some money to save for your goals or pay off debt faster.
How to Save Money
Saving money is one of those tasks that’s so much easier said than done. There’s more to it than spending less money. How much money will you save, where will you put it, and how can you make sure it stays there? Here’s how to set realistic goals, keep your spending in check, and get the most for your money.
Steps:
- Kill your debt first
- Set saving goals
- Establish a time-frame
- Figure out how much you’ll have to save per week, per month, or per paycheck to attain each of your savings goals.
- Keep a record of your expenses.
- Trim your expenses.
- Reassess your savings goals.
- Make a budget.
- Stop using credit cards.
- Open an interest-bearing savings account.
- Pay yourself first.
- Don’t get discouraged and don’t give u
Making the most of your investments can be as simple as diversifying across asset classes and rebalancing once a year. The following tips include wise words from the pros and advice about splurging on that once-in-a-lifetime stock published on Money Magazine.
Investment options:
- Invest the same amount in a mutual fund every month.
- Look for mutual funds that have expenses below 1.33 percent for stock funds and 0.89 percent for bond funds.
- If you really want to own the next big thing, set aside no more than 5 to 10 percent of your portfolio for those “swing for the fences” choices.
- Diversify your portfolio beyond our shores and you’ll reduce risk and have a shot at higher returns.
- Every Aug. 1 (or pick your own day), trim back investments that have grown and add to those that have lagged to match your ideal portfolio allocation.
- Buy large-cap growth stocks
- Buy Berkshire Hathaway
- Buy quality stocks
Growing your money and become rich, say 10 yeas from now, is attainable. After setting your financial goals, you can work on you budgeting that fits your lifestyle. When you have done your budgeting, you have now the opportunity to save your money. And when you have the savings, either save on high-interest bank savings accounts or credit cooperative, you can invest them into lower-risk investments. Following on this 4 important factors will greatly help anyone to personal financial abundance few years from now. Maybe it’s YOU!