Monday, 11 June 2018

Where to start?

Where to start? This is the first question in mind of NEWBIES in personal finance or on how to achieve financial freedom. This is same question, I answered years back and I would like to give you my advise on where to start in your financial journey:

First, Do your SALN. Statement of Assets,Liabilities and Net Worth , this is how much you own and how much you owed? Be honest in doing this exercise. You need to know where you stand currently on your finances.

Second, Financial Vision & Mission. Most companies has vision and mission, this is also applicable in yourself. You should have a vision, e.g. 5 years from now , I will be able to come home without any financial worries and my passive income will support my daily living expenses and my mission is to help newbies in their finance journey in achieving financial freedom.

Third, Get the numbers right. This involves a calculation of your monthly budget or should I say Forecasting - preparing for the expected expenses or your necessary expenses to survive without digging debts.

Fourth, Spend and invest wisely. Set a specific amount that you are going to spend for a year and invest the excess cash. This is the start of your investing journey and picking only those investments that will match your objectives.

Fifth,  Think long term. Every time you are going to make a decisions in your finances look at the long term benefits and don't be a short sighted. It's better to practice delay gratification and enjoy the fruits later.

Looking forward to your Financial Freedom.

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