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FINANCIAL
FREEDOM!
Ever wondered how to gain financial freedom so you have no
worries about money? Are you spending more than you make and going
deeper in debt? You CAN reverse that trend!
The first thing you need know is this: if you are making
financial planning decisions based on how much money is in the bank
right now, then you are being controlled by the money, and this
usually creates a constant worry about money problems. You need to
control the money to gain financial freedom; not the other way
around.
Fortunately, there is a money management system that you can use
to control your income and debts to get on the road to financial
freedom. However, most people are completely unaware that it exists.
This is not the type of financial planning involved in investments
such as stocks and bonds. Here are the seven steps of this business
cash flow management system:
1) Accurately predict how much money is needed to operate the
company this week and in the future.
Figure out exactly what has been spent, by category, over the
past year. This becomes the budget. The correct definition of budget
here is: the amount of money it takes for the organization or
household to function and to attain its goals. That is also called
the break even point and tells you the minimum amount of income
required just to stay afloat. This is the first step in effective
cash flow management.
2) Figure out how to collect the amount of income needed, and
more, to do better than just break even. Remember, you’re going
after YOUR financial freedom here.
3) Find out exactly how much you owe in bills and other debts.
This takes a bit of courage to confront, but what you don’t know
because you’re just not looking at it, can undermine your profit and
wealth building progress.
4) Find out how much of your income is actually available to
spend. Most people forget that when the money comes in, some of it
is already committed. When you spend more than you brought in, the
difference usually ends up on a credit card as debt. When you are
striving for financial independence, spending less than you make is
critical.
5) Set aside regular amounts of cash from your income for the
future – always pay yourself first and put the money in savings
toward gaining financial freedom. For substantial wealth building, a
minimum of 10% is recommended.
6) Portion out some of your money toward paying past-due bills,
debt, current bills, and then portion out a bit for future large
expenses that are difficult to pay when they come due. Careful,
consistent money management can speed up your business wealth
building progress.
7) Use any money left over in ways that increase your ability to
produce more income. Why is cash flow management important to a
business owner? Your cash flow is the energy and life blood of a
business. It is necessary to pump it through the income producing
areas to keep it running well. Everything runs smoother when cash is
available.
Seems simple, right? And it is simple. This system is easily
learned, and can be used to do these seven steps of Financial
Planning in very little time each week. It does, however, take
personal discipline and commitment to achieve the goal of financial
independence so you never have to worry about money again. Done
correctly and consistently, the end result is always having lots of
cash on hand, all bills paid, and plenty of money in reserves to
finance what you really want to do with your money; not just pay
bills. Who doesn’t want that, right?
To use your money wisely, you need to treat it as a resource.
Correctly managing your money will determine how well your company
or family will survive now and into the future. Correctly applying
these seven steps of Financial Planning will make financial freedom
happen for you.
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MONEY MOUNTAIN