You want a financial change in life therefore budgeting is the term to achieve abundance. The income stream must be saved correctly. Allot a portion for expenses and savings.
You might be wondering that at the end of the day, your money seems not enough. Look back at your expenses. There might be unnecessary outflow. Prioritize the basic needs and savings.
Basic needs are the stuffs we need to survive our daily living. Beyond the basic needs is our wants. The wants can wait for the right time. A good example of wants is leisure or recreation. We can still relax in a cheaper way. Go to a park rather than checking-in at hotel.
Examine the wants for alternatives. We all want luxury but it must be at the right time. The right time is when our passive income can sustain our chosen lifestyle. Do not place the active income on your wants. Remember, passive income is our earnings from the business our investment while active income is from our jobs.
Our goal is to attain passive income because we can earn while sleeping. In the active income phase, we need to work hard for the money. Live the life to the fullest. Allow the money to work for you thru passive income stream.
It is preferable that you pay in cash unless it is an emergency. Financial planning means handling the finances correctly, if a certain financial plan is allocated for the expenses thus live beyond your means to avoid debt.
The tendency if we go beyond our means is debt. The mindset of swiping the credit card is alive in our minds. Block the idea and work with the allotted money. We are allotting money for savings and we will use it to put-up a business or investment portfolio that will give us a passive income stream.
Patience and self-control have a big role in our success. Bite your lip and postpone the gratification. We will experience luxury at the right time. If it is about life and death then that is the time to swipe that card or borrow money. Use it only for emergency.
It is recommended that we also prepare for emergencies to avoid debt. Prepare a miscellaneous fund for it. We all know that something might happen therefore prepare for it. Include the emergencies in the financial plan. If the miscellaneous situation or an emergency comes along the way, we are not rattled on where to get the money because we already prepared for it.
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