Week 11 - Misconceptions On Credit Card

There is nothing wrong with using credit cards however debt is like a two edged sword.  It can help you if you know how to use it but it can also hurt you if you do not know how to use it.  The reason why people get hurt when it comes to debt and credit cards is because there are a lot of misconceptions about it's usage.

It is best to be financially free and the first step is to get out of debt!  We have to know how to properly handle and manage our money well.

Listed below are some misconceptions about credit card usage which we shouldn't be ignorant of:

1.  The more credit cards that I own the richer I become!

2.  My credit limit is the amount of money I own and is also the amount of money I can use!

3.  The higher my credit limit the richer and more classy I become!

4.  I save money if I just pay the minimum every month.

5.  I should use my credit card when I do not have the money or cash to buy what I want.

All of the above are false and untrue. So, don't be deceived. Onward to financial freedom!!

Week 6 - Create A Food Budget

Let's make life a lot less stressful. Let's live within our means. Remember we can make goals and achieve them!

A budget is really there to serve us. Think about the big dreams or financial goals we have. A budget will help us see those dreams become reality.  — if we plan wisely, we can make our money work for us.

A food budget is a great place to start,  without sacrificing nourishment or taste. The easiest way to adjust a budget is through our food spending. With discipline, decide what goes in the grocery cart.

There are plenty of things we can do to create a food budget that works. Here's a few to start with:

• Shop wisely by deciding where to spend our money. Stores vary in their prices.
• Diets can range from filet mignon to beans and rice. There's a big price difference in that, but it's the nutritional value that counts.  
• Eating at home is cheaper than dining out. 

As we watch what we buy, we start saving. The money saved can be diverted to pay off our debts, or build capital to re-investment in multiple income schemes. Now, that's freedom:)

See you next week and keep on working towards our goal.

Week 5 - We all have 24 hours

One of the paths to take to become wealthy is to make our money work as hard as we do. 

There is one thing that both the rich and the poor have: equal amounts of time. We all have 24 hours a day. How much money we make and save in that daily 24 hour cycle will determine how early we are able to reach our financial goal.

The key strategy is to make sure we maximize our 24 hours cycle and create as much income stream as we can. 

We can categorize our income stream in two main streams:  Man at Work, and Money at Work.

Man at work obviously refers to what we do with our physical self. Our talents, skills and creativity is put to use and we get the returns in the form of salary or business profit.

Money at work refers to our money kept in a product that gives us a certain amount in return or we simply call it investment, such as investments in bank products, in equities, in a business, in bonds and in real estate.

With the 24 hours available to us, regardless of whether we are famous or not, rich or poor, young or old...we have a fair deal to start with. But we have to make a choice and a decision TODAY, to act on how we can increase our wealth.

Let's choose to act..YES...starting today! Let's encourage one another and I will see you again next week for more encouragements.

Week 2 - Start To Financial Freedom

Not all wealthy people were rich to begin with. If we are to study their success, it was more about the hard work they did - to the best of their ability. There are financial lessons or practices that we can learn from their character:

1.)   Save as much as we possibly can

The first and foremost command is to pay ourselves first. Saving 10 to 20 percent of our income as our payment is a good idea. To do it with an even bigger percentage is even better. What we save can easily raise capital for business and investments.

We must have a long term vision of saving to be prosperous. At one point or another, we could be needing access to a huge amount of funds. Before that happens, we must be ready to save up for it as early as possible.

2.)   Reinvest our profits

In financial planning, we were taught the power of compounding interest. That is, our interest earns additional interest. This same principle can be applied to business and investment. Rather than cashing in on our profit, pour it back into the business for expansion so that the profits will grow exponentially.

3.)   Practice delayed gratification

The richest people are the ones who have overcome tremendous odds to reach the level of their wealth. During that time, they disciplined themselves not to spend on unnecessary expenses till they reached their set goals.

4.)   Pay in cash

Paying in cash in some cases, can sometimes give you the advantage of a discount. No matter how small the discount is, take advantage of it. Besides, the practice of using cash as opposed to credit is that we can be more disciplined in our spending habits and can monitor them closely too.

5.)   Be debt free

Let's pride ourselves in being debt free. As much as possible, never carry any debt at all. If however it is beyond our control, only go for 'good debt' - one that we can leverage on to expand our businesses. And even if we have to borrow money, keep it to the minimum. Bear in mind that money borrowed means there is extra interest to be paid back.

6.)   Create multiple sources of income

It is a reality that no particular business will fare well at all times. Thus, we must be prepared with multiple sources of income to act as a cushion. Additional income means more savings; and more savings mean more money to invest.

7.)   Be reasonable

As we achieve our financial freedom, we will have the ability to share with others. Remember that it's not an idea of complete selflessness nor it is about selfishness. There is always a limit and a balance to everything.

If you really want a start to financial freedom...stay tuned and we will take this journey together. Let's look forward to more encouragement next week. For now, chew on what we have discussed today. See you next week.

Yours

Annie

Let's Start A Good Year

It's now time to sit back and set aside the time to plan well for the new year!  I believe it is going to be an amazing year to move forward and live the life of prosperity and purpose that God has in store for us!

Today it's not exactly a New Year's Day...probably we're well into the New Year even....but you can start to be financially free any time of the year as long as you put your act together. Let's start with a Bang!

1.  Set aside past failures, and mistakes – It’s a new day!  The only power the past has over us is what we allow it to have.  Learn from the past and use it to create a better future.

2.  Forget past victories and successes – Don’t get stuck in past triumphs, it’s time to move on and move forward because greater days are still ahead!  If we all think last year was amazing, I believe the coming days, weeks, months will be even more awesome!

3.  Review what’s in the present – Check if you have met your goals and targets.  See if there are any areas that need improvement and focus.  You have to manage your priorities to stay in focus on your goals!

4.  Set your new goals – After reviewing how you have fared, it’s now time to set goals that are achievable. Write them down so you won't forget and review them from time to time.

5.   Start that saving plan, business or investment that you always dreamed of-  Believe the reason why you are reading this.It is because you have it in your heart to be financially free!  Start creating steps to pave your way. Study and put your lessons to the test by actually acting on them!

All the best! Happy New Start!