Simple personal cash flow plans are always better than complicated, difficult to understand and even more difficult to live. Too much, people because they complicate their personal cash flow plans and try to draw in their wallets, so tight that they burn themselves and give up on their financial freedom plan at all. So this raises the question: “How tight do you have to manage your personal finances?” This article will answer that question and help you stay on track with simple personal cash flow plans …
Key Financial Success
The key to financial success is to have an intentional plan for how you spend your money. In other words, spend your money but what you want … just do it intentionally and have a plan. Financial freedom will never happen as a result of expenses without a plan. You might have heard that failure to plan to fail … but when it comes to your personal finances, it’s actually worse than that. In personal finance, you will have a plan or end with other people’s plans as default.
Just think of all companies out there that have a marketing plan for how they want you to spend your money … especially around tax time. If this marketing plan is unsuccessful, you will not have many broken people in this country. These people went bankrupt for one reason: they did not manage their personal cash flows with the aim of … so they finally spend it based on other people’s plans. For example, if you don’t plan ahead to shop for Christmas or for school clothing, visa or mastercard may send you an irresistible offer around that time.
If you don’t have a plan to spend your tax return, someone will make you an unbearable offer and your money will end up in the man’s hand. So when it comes to your financial planning, you don’t have to be super tight, you only need a plan to ensure that your expenses happen as you plan to … in advance.
Simple personal cash flow plan
The simplest personal cash flow plan to “do it intentionally” is a personal spending system of four buckets. It works like this: Invest the first 10%, give 10% seconds, invest 10% in third cash reserves and pay for your fourth expenses with the remaining 70%. This simple personal cash flow plan helps you to invest and give priority to pay for your expenses. This is the only way to change the financial install as you wish and stop living from checking to check. Most people have more money than they realize, the problem is that they don’t spend it intentionally and it’s because they don’t have a simple personal cash flow plan.