There are Eight fold path to achieving a state of financial abundance by these small steps may help you add some more bucks to your wallet... eventually giving you greater freedom to implement your money dreams.
#1: Identify your ideal number
Your financial journey begins by identifying the amount you want to add to your bank balance each year. This will ultimately guide you on how much you need to earn per year to achieve that figure. This should not be an arbitrary number, it should in fact take into account your current expenses, your purchases for the year, your recreation needs and any other contingency requirements. And it should fulfil at least one dream of yours: a new acquisition, a holiday to an unknown destination, a course for self-improvement or any other new experience you desire.
#2: Sort out any messy areas
The next step is to clear away the mess... and this is just about anywhere. From your wallet to your home, cleaning up will help you get an idea of what you have, what you need and what you need to get rid of. Throw away old bills, movie tickets, and any junk paper you possess related to payments and purchases. It's believed that people who keep their wallets neat and tidy have better control over their finances. If you have any bills to be paid, do that first before you buy something new. Clear your debts before you decide on making any new financial plans.
#1: Identify your ideal number
Your financial journey begins by identifying the amount you want to add to your bank balance each year. This will ultimately guide you on how much you need to earn per year to achieve that figure. This should not be an arbitrary number, it should in fact take into account your current expenses, your purchases for the year, your recreation needs and any other contingency requirements. And it should fulfil at least one dream of yours: a new acquisition, a holiday to an unknown destination, a course for self-improvement or any other new experience you desire.
#2: Sort out any messy areas
The next step is to clear away the mess... and this is just about anywhere. From your wallet to your home, cleaning up will help you get an idea of what you have, what you need and what you need to get rid of. Throw away old bills, movie tickets, and any junk paper you possess related to payments and purchases. It's believed that people who keep their wallets neat and tidy have better control over their finances. If you have any bills to be paid, do that first before you buy something new. Clear your debts before you decide on making any new financial plans.
#3: Keep credit cards at a distance
One school of thought believes that owning credit cards makes you spend frivolously, while another believes that credit cards actually make you spend less - you carry less cash and the credit card comes out only when needed. I'm a believer of the latter, the less money in your wallet, the less you'll spend on unnecessary purchases and the credit card can then be used sparingly for the important stuff. But whichever theory you follow, the idea should be to only draw up bills of amounts you can pay - 'cut your coat according to the cloth' is a proverb that works here too. A debit card may work effectively to implement this thought.
#4: Renew your insurance policies
Insurance policies protect you from anything unforeseen like medical emergencies and car accidents. It's a good idea to annually assess and renew all your policies and determine how much cover you need. This will prevent you from losing a lot of moneyduring such times. Medical insurance, car insurance, home and business insurance policies also give you a great sense of security and you can go about your daily life with less worry.
#5: Ask around before you pay up
Shopping online and offline is more or less an impulsive act. But be wary of this when making bigger purchases like cell phones, appliances, cars and even jewellery. Ask around a bit, do your research, check ratings of users online, know their warranty policy, maintenance costs, etc. For compulsive shoppers, one trick is to wait 24 hours before you make a purchase. There's a good probability that the next day you may not feel the same need for it. If you still do, go ahead and press the pay button.
#6: Catch the sale season
Be it online or offline, good deals are good deals anywhere. And when you get a chance, just grab them. There's no time like sale time to stock up on all that you need. You may not get the newest season designs but for the staples like jeans, standard footwear and accessories, sales make sense. Even deals on Amazon, Flipkart and eBay during Independence Day and other festivals are worth looking at. You may just save an extra Rs. 10,000 on that flat screen TV or smartphone you always wanted.
#7: Try doing things yourself
It's amazing how much you can save if you start doing a few things yourself. Take for instance simple things like carrying your own lunch dabba to the office rather than eating out. Isn't that healthier and more economical? A lot of home improvement can be done on your own too. Do-it-yourself guides online show you how to fix things in your house. You needn't pay extra to that plumber or electrician, saving you some money eventually. Though, don't waste too much time on a task you don't understand, it may be simpler to outsource in that case and spend your time making the money instead.
#8: Set up your 'heart fund'
In addition to your current and savings account, create one separate fund to finance your dreams and aspirations. Keep aside a certain percent of your income for reasons that are close to your heart and call this the "Heart Fund". This could be used for charity, to start a new business, to ensure you have savings for your entrepreneurial dreams, to finance a new education, anything that your heart desires. This will ensure you don't dip into your regular savings for things that are out of the ordinary.
And lastly, feel a sense of financial abundance. It's easy to feel scarcity and operate from that mind-set, what's difficult is to believe that you actually have enough to meet your current needs. The extra you want is just a bonus.
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