Friday, 19 September 2014

Financial Health Check Up

Are you healthy?
Have you gone to the Doctor in the last past months to have your health check up?

Don't go to your personal Doctor but instead we are going to check your Financial Health.
I'm giving you 10 Financial Health Check up.

1. Monthly budget. As soon as you get into the month end and received a paycheck start making your budget for the next month. At least you will have a control of  unnecessary expenses.

2. Follow the budget. Very basic thing to do is follow your budget at any cost. You should limit your spending and be on track before the next pay day.

3. Earn more and spend less. If you don't have enough earnings and you always exceed on your budget then it's time to think about the sidelines. Extra jobs, overtime, promotions, business adventures etc. etc, Earn more is the main step to financial freedom.

4. Pay yourself first. If you done something good and achieved a goal, then don't forget to pay yourself. Funding your retirement, add a buying power to your porfolio, attend a seminar, and sometimes eat at the expensive restaurant (reward yourself).

5. Positive Cash inflows. The lifeblood of a business is a cashflow. Same in real life, if you don't have cash coming then you would not be able to support your family and personal needs. Check your cash inflows not debt inflows.

6. Debt reduction. If a company has a policy of cost reduction then your goal is to have a debt reduction. Start today.

7. Credit Card. If you don't know how to handle credit card then cut your credit card, literally cut it.  Credit card can be a positive tool, you can maximize it for collection of points or travel miles but always remember to pay on the due date without having any interest imposed.

8. Have a sufficient emergency funds. We don't know when storms will come, better to have a money on the side. You might be surprised of  unforseen events such as job loss, sickness,pregnancy etc .

9. Practice frugality. Frugal living means living simply. You don't need to catch up with Jonesses.
You don't need to be insecure with your neighbors big house, a Mercedes benz, a holiday in Hawaii etc. Your neighboirs bank account balance is negative and have a mountain of debts.

10. Automate your Finances. I automate my monthly funding to my savings, the bank is automatically crediting specific amounts to my investment funds.

There are mamy financial health check up that you can do to yourself. Sometimes, we are afraid to face the hard truth, I will let you check your financial health.

Are you financially healthy?

Sincerely yours,

NEWBIE Mentor

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