12 Personal & Business Financial Rules You Must Never Break
Financial Freedom is a mirage for many and a dream for millions because they have failed to live by the basic principles that guide personal and business financial and money management rules.
To experience financial freedom as an individual or business, one needs to understand how money grows and how to invest the little you have into profitable ventures.
There are people who have raised great finance over time as a result of being financially disciplined. This article shares with our cherished readers 12 Personal & Business Financial Rules You Must Never Break if you aim at becoming financially independent.
12 Personal & Business Financial Rules You Must Never Break
a. Learn How To Invest:
Failure to invest your money into profitable businesses and ventures will lead to the gradually dwindling of your funds. Money does not grow by being left in a current account or a savings account. It is always important that you find out useful ways to invest your funds and move it from the bank account into investment accounts and activities.
b. Invest For The Long Term
When considering investing your funds, do well to opt for long-term investments. A long-term investment is simply an investment you make where you do not have access to the funds for up to at least 5 years. The longer the investment, the better returns you will earn. You can consider Stocks and Equity Funds, Life Insurance, Mutual Funds, Index Funds, Bonds, and Options over a longer period. You can also start a small business and grow it gradually into a full-time or a profitable part-time business.
Apart from the above, you can invest your funds in one of the following businesses.
- Sell clothes
- Start a fashion business on Facebook and WhatsApp Status.
- Become a Food Vendor
- Printing Business (Secretarial Services)
- Start a Blog (Internet Business) In Ghana
- Buy and Sell Phone Credit Cards and Mobile Money Business
- Teach a skill you know for a fee
- Learn how to make cakes and pastries and start a business from home.
c. Spend Less Than You Earn
Another way to be financially disciplined is to ensure that, you do not spend more than you earn. Again, do not spend all your monthly earnings, no matter the economic conditions. You need to have at least 20% of your earnings every month. These savings can be moved into an investment in one of the businesses mentioned above or others you are interested in. Ensure to research the business, the skills needed, and the capital before you start it.
READ:How to Realize Financial Freedom in 2022
d. Keep Track of All Expenses
One of the reasons people have financial challenges is that they fail to track their expenditures. Keep a record of how you are spending your funds. Ask yourself the benefits you have derived from the expenditure, and if it was actually planned in the first place. Poor spending habits can erode your income just as impulse buying. Impulse spending or buying is the act of buying stuff without planning for them.
e. If You Have It, Don’t Flaunt It
Stop showing off your worth as it attracts negative people and all manner of persons who will only come and parasite and siphoned your earnings. Leave s simple life and build your worth. Practice the Bill Gate principles.
f. Acquire Assets, Never Liabilities
Spend on properties that will bring in income or additional returns.
g. Always Have an Emergency Fund
Keep funds aside in special accounts, called emergency funds accounts. This could be a bank account for keeping some money to be used to take care of unplanned emergencies. This is one of the reasons for holding money. This way, you will not be under pressure to touch funds you have invested in a business when the need to take care of an emergency becomes necessary. If it is a bank account, ensure that you do not have a debit card connected to the account and if possible the bank should be far away from your home or work to prevent you from going to cash out in the face of minor issues.
h. Always Make Your Money Work For You
This implies that you must keep investing your money into profitable ventures. Take calculated risk while investing.
i. Never Invest Money With Emotions
j. Don’t Invest In Get Rich Quick Schemes
A good investment takes time to mature and to earn you returns. It is important that you do not chase after investment and Ponzi schemes that promise high returns over a short period. You will lose your seed capital and investment easily.
k. Use Money To Solve Problems In The World
Be generous and help those who need help with a little of your returns without losing your investment.
l. Do not buy depreciating assets on credit
A depreciating asset is an asset that has a limited effective life and can reasonably be expected to decline in value over the time it is in use. Tools, equipment, and other items such as computers and books are depreciating assets.
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