7 Essential Money Skills for Financial Freedom!
Have you ever envisioned the thought "What if I can be financially free?" How wonderful it would be...
1) No more working from hand to mouth, just enough to pay bills, and loans, repeating this for the rest of your working career. Yikes... right
2) No more endless hours at work just trying to prove yourself in this endless rat race, because even if you win, you are still a rat.
3) The ability to enjoy life truly, spend more quality time with your family, bring your family to vacations, or to nice restaurants whenever you like
4) The ability to pamper yourself with indulgences which you were not able to do previously
Nice thoughts. But you probably think i am just a day-dreamer? Well yes, and no.
Yes, because day-dreaming inspires me with new ideas on how to lead a better quality and more fulfilling life; afterall we only live once, so lets make it all worthwhile!!
No, because with new ideas, we can analyze the various opportunities, and decide on the most viable and effective approach, and drive towards it. With ideas comes opportunity, with opportunity comes Action, with Action comes Results!
Hence, today I would like to share with you some Essential Money Skills that will start to make you a better person at maximizing your cash on hand to be one step closer to financial freedom.
Quote from Benjamin Franklin
"The way to wealth, if you desire it is as plain as the way to market. It depends chiefly on two words, industry and frugality; that is waste neither time nor money, but make the best use of both."
7 essential money skills all people should be equipped with:
1) Value Money
2) Control Money
3) Save Money
4) Invest Money
5) Make Money
6) Shield Money
7) Share Money
Essential Money Skills (1) - Value Money
Do you value money? Do you know the implications of losing money today and the impact on your future value? Do you spend almost all your monthly salary, and have nothing to save? Guilty? You are not ALONE.
Unless we start to value the importance of money, we will not fully appreciate the value of work, the need for saving, and the power of accountability.
It is very important to account for all your money, to know in details your income and expenses, which helps you know if you are only barely meeting life's requirements, or you have surplus cash to manipulate with.
Essential Money Skills (2) - Control Money
I believe like most people, you have only one source of income which is your JOB. This is the source of income which will pay for all your own and family expenses, and which is one which you have to keep working in order to continue this income source. What if you are sick for an extended period and cannot continue working?
The only way to overcome this situation is to have multiple streams of income. Only when this is achieved will you truly face financial freedom, and start to enjoy life freely.
Essential Money Skills (3) - Save Money
Even if you have tons of money, if you don't save it, you wont have any surplus money to spare and grow new money. This is termed "Cash-Flow Management". You need to increase the input and reduce the output; this surplus is your ultimate secret to financial growth. With surplus cash on hand, there are various investment tools in the market which can leverage your portfolio, and potentially lets you grow lots of money using your existing money base.
Essential Money Skills (4) - Invest Money
Some of the common investment tools in the market currently include stocks, shares, equities, bonds, property, and also internet sales. With so many choices, it is best to go through the details with an experienced financial planner who can help you make informed decisions on how to invest smart and effectively. Do be wary though of salespersons who are only interested in selling high commission products but which do not fit into your long-term plans.
Essential Money Skills (5) - Make Money
Once you have chosen your investment path, it is time to sit back and have some patience and watch the money grow. "Money grows on the trees of patience"
Essential Money Skills (6) - Shield Money
When you have money, you know it does not come easy, so the next step is to shield it. To protect it and stock it aside for a rainy day, or to use for further investments. However, you should at least keep a liquid cash saving which can last you around one and a half year just in case.
Essential Money Skills (7) - Share Money
With more cash on hand, you can now achieve what i mentioned at the start of the article. To be able to spend more quality time with your family, bring your family to vacations, or to nice restaurants whenever you like, and the ability to pamper yourself with indulgences which you were not able to do previously. You could also potentially quit your current job and pursue your true interest. Isn't that you and me have been desiring all this while.
Conclusion
To conclude, I believe that you are just like me seeking the route to financial freedom. "Time and Tide wait for no man". Hence, it is very crucial for you to start planning today, and to put the 7 essential money skills to use daily.
With ideas comes opportunity,
With opportunity comes Action,
With Action comes Results!
Originally Written Article here.
The author Jimmy Lee is involved in article writing, publishing, and website design on a freelance basis amid a daytime job as an electrical engineer. His favourite works can be found at http://flashgor.blogspot.com/ and http://www.diypc.wordpress.com/
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