I would like to share with you guys a very simple Personal Finance scheme in order for you to save and invest in your future. To make it easier for us to remember it all the time, the acronym is CD-RW and this means: C - Cash Flow Management Making sure that you identify sources of your cash and that you always have MORE to receive than spent. Once you figure out that you are spending within your limit, you will probably have enough for savings or invest in paying off your debt (if you have). In order for you to do this, a simple recording and categorizing your expenses will help you know where you spent your money the most, identify wants vs needs and be able to fine tune your spending.. while at the same time thinking of other ways to increase the sources of your income. You may want to have part-time job if you think your regular income cannot support your daily/monthly expenses. D - Debt Management Once you are familiar with how your cash flows on a daily basis, at the end of each month, you will probably have enough savings to slowly pay off your debt. you have to prioritize this because in the long-term, you will realize that all your savings are just spent paying off the interest rather than the main debt. Once you have crossed out all your debt, you will thank yourself for doing it. R - Risk Management Now that you have good cash flow and without any debt to pay, you may want to protect yourself from any risks. You may then decide to get yourself an investment linked personal insurance to protect yourself (as the breadwinner), so if anything happens to you, you can rest at peace knowing that your loved ones will have something to sustain them during the sudden loss. W - Wealth Management Now that you have good cash flow, no debts to pay, highly secured, you may want to put that extra money into savings and create another source for a passive income. If you are then able to save a lot sufficient to run a business... let your money work for you.. rather than you work for the money. I am not a financial guru, but a regular guy like among you.. I thought I have to share it.. it is best to see people living happily, debt free and with financial freedom. HAPPY SAVINGS.. AND HAPPY INVESTING!!
I hope those who read this have learned a little bit about personal finance. This is very simple to follow and intends to organize your spending habit, increase your cash flow, remind you to secure yourself against risks and inspire you to invest and increase your wealth. I hope anyone who read this will learn from this and I would love to hear your opinion about it and I encourage you to share your thoughts to add to this concept. This is a discussion forum anyway.
by the way folks.. to learn more about personal finance, specially the above that I have shared with you, please visit their websiteLog In to get more information. You really have to consider improving your financial position.. and this program is one of the many ways to start with it. good luck on your quest!
