Methods of personal financial management efficiency
Many young people out or confide their lives difficult, but hard work though the salary was not enough to cover the daily necessities. Meanwhile others but also the same as their salary but with fairly comfortable life. So the problem here may be due to spending less reasonable way, you do not have to manage their finances effectively? If you have been experiencing these situations, it’s time you sit down to find solutions for themselves.
Everything is easier when there is objective
If you do not intend to save or accumulate a sum of money to implement the financial plan in the future, you will be very easy to use up their monthly salary. Set financial goals as soon as you start earning has never been excessive at all. But the target is too high can also make you depressed. You draw up a plan fantastic and desirable, but as done, the more you feel impossible. Finally, you also do not have the patience to pursue the objectives set out by myself and decided to quit.
Many people think of the savings but set yourself specific goals that simply acting like friends, but do not have clear objectives, often they will not save anything.
The goal is very important. A common point of those who are successful in managing personal finances, that they are the appropriate targets, clear direction in life. From there, they outlined a reasonable spending plan, persistence and accumulation pursue it to make financial plans for the future. Set appropriate goals for yourself now to start building a strong financial resources and strong.
Mistakes dismiss thoughts
“I will manage to have a lot of money” is a common mistake and should be dismissed before talking about financial management. This argument is no different than “I will study hard when I reach 10 points.” If you do not know what good management you are, life will never let you add something.
Someone said: “Money management made me feel not free” – financial freedom is the greatest freedom, support for all other freedoms. Without financial freedom, if you have enough money and time to make the dream? Please believe in me! The financial management of each day will give you the wonderful feeling of infinity, is one extremely good habits.
The possible reasons why you can not cut spending
1. Set goals too high
In early January you put rocket fuel reduction target to 40% of their monthly spending, then gradually you will find that you did not accomplish that. And from then on, you will not strictly observe this saving again.
2. Set specific target
You just set the general goal is to be as many or much. Do not set out specific goals that will make you not strict implementation and reduce efficiency.
3. Lazy record of spending the day
When you do not regularly update daily expenditures would elusive financial situation and hinder the implementation of your savings plan.
4. No cash flow management
This will lead to a difficult life because sometimes you have to choose between saving and important things expensive in a certain time.
Method of Personal Finance Management Jars
Method of Personal Finance Management Jars invented by T. Harv Eker (author of Secret of the Millionaire Mind) is a master of presentation, has designed dozens of short and long term courses on personal development. He was named “Trainer Of Trainers”
Jars method is the method of the jar, because your money will be divided among 6 jars 6 symbolizes a personal account. Imagine when you receive income every month (possibly wages, or money from parents, or any other source of income, more or less does not matter). That amount will be divided among the following jars are marked with the corresponding percentage.
Phuong management personal finance Jars
NEC (neccessities) – Account necessary expenditure – 55%
LTSS (Long Term Saving for Spending) – Savings Accounts for future consumption -10%
EDU (Education) – Accounts education – 10%
FFA (Financial Freedom) – Financial Freedom Account – 10%
PLAY – Accounts enjoyment – 10%
GIVE – charity account – 5%
When you look at the account, you may be wondering is it seems one of the account it slightly overlap with each other, but really, each account has its own purpose and effect there.
Phuong-phap-the-cup-ear-main-ca-face-hieu-quaPhuong management personal finance Jars
1. NEC – account necessary expenses 55%
This is the consumer accounts for your necessary expenses, such as meals, transportation, shopping including the necessary things for themselves. You might wonder every different needs, whether 55% may be sufficient or not. Really, the statistics show that 55-60% will be enough for your income, if you find you need more, prove your spending is irrational.
The effects of this account is to let you know your spending limit is how much, from where you will change the way of life to suit their conditions. And if you’ve never planned to clear, you will often spend bluff and encroaching into other accounts.
2. LTSS – savings accounts for future consumption by 10%
This account you will have to spend a period of time long enough to give the big spenders in the future. For example, at school, you want to purchase a new phone, or to buy a laptop, then this is the account for you to spend it (because it’s great for you). Or when you have to go to work, then this account for your savings to buy larger items such as car shopping, buying a home, saving for the wedding and so on …
The effect of this is to your account to see clearly his purposes are aiming for, and will save money slowly for that. The major expenditures such as this, you need to have long-term plans rather than have to carry all your money then to buy her out, as it will affect your other expenses.
3. EDU – education account 10%
This is an account for your own education, that is to let you upgrade yourself. This account can be spent on items such as participating in courses to upgrade themselves, buy books or learning materials … And remember this is the account for your own education, you have to spend a reasonable to upgrade themselves continuously, so you can we ensure the value itself.
The effects of this account is force you to constantly invest in themselves, because this will definitely be the most profitable investments in your future.
4. FFA – free financial accounts 10%
Maybe this is a new concept for you, said simply, this is the account for profitable investment. There are many ways to invest but for example you can use to play the stock, or to spend much more possible when capital partners to do business with friends, or open a small shop, or even open the company.
The effects of this account is to let you always available 1 chocolate money for investment purposes in the future, but not until you go to collect money. And the reason that this account name is Financial Freedom (Financial Freedom) is because only investment (reasonable and effective) to be able to help you get rich, and to achieve Financial Freedom. When the amount of income from your investment deals sufficient to pay all expenses in your life, then you have no need to go to work but can still live comfortably.
5. PLAY – enjoy 10% account
This is actually to your account spending to satisfy their own luxuries. Maybe you need a new coat (just because you like, not because demand), purchased game disc, the new disc. Even for traveling, eating spree with friends. And remember, this is a MUST spending account, whether you’re spending extremely sparingly, but always to place a sum for yourself. This clause can put together a few months to disposable, but you should not leave it too long.
The effects of this account is to give you reward yourself (following a hard time making money), and only you to enjoy your money, you will have earned a lot more motivation to earn more money.
6. GIVE – charity account 5%
This is the account for you to give to others, be it going to donate to charity, helping the poor children. There are many activities that you can spend this money on. But you should always set aside one account to help others.
The effects of this account is under the Law Of Attraction when you give, you will get about … helping other people, of course you will happier. But for yourself, it will also help you get more money in the future jog.
Problems for money in this jar should be done every day, I mean EVERY DAY. If you do every day, but only increase the amount on each end of the month, that is, you are only servants, salaried. Look for additional sources of passive income to supplement other income sources of his day.
Enjoyment PLAY Fund should be continuous consumption, it must be the end of every month. If it’s extra money, you need to rebalance your life by thinking about caring for myself, if it is missing, you should concentrate on your monetization.
FFA Foundation financial freedom, you should never spend money in this fund, investors just used it to create passive income