The Poor Man’s Guide to Richness: 10 Financial Planning Steps that You Should Follow
#Plan but not forget
When it comes to getting rich, not many people understand that richness does not come from luck alone.
Sure there are people who are rich because Fortuna favors them, but not many can get rich just by putting their luck on the bidding table.
Luck would only get you so far, but there is one thing that can get you further than that.
That thing is called planning, and people who plan on ahead are people who can be successful in life.
Planning can be a participant in many things. Probably you want to plan your vacation days. Perhaps you want to plan your expenses.
Perhaps you want to plan your work schedule. Everything in this world can be planned, and finance is just one little example of them.
Below I got what I call a poor man’s guide on getting rich by planning your finances and everything else related to money.
The first thing you should make to get success in life is a table that denotes your incomes and expenses.
While this table is not something that you really need to write down, you still need to create it and store it somewhere (perhaps your mind or someplace else you can access easily) because every type of plan needs something on the paper.
With the detail incomes and expenses table, you can easily track two of them and be done with the first step on this guide.
The second step is to open up bills as soon as you get them
And not just open them. After you have opened those bills, you need to immediately pay for them unless you want to be burdened by it in times where you do not want to be burdened by it.
The reason for this is simple: if you open your bills as soon as you get them, you can see how much is your working expense that month.
That working expense is something that you need to pay as quickly as you can, so you can include the bill as soon as possible in your expense table. That way, you eliminate one of the most important expenses from your list.
The rest of the expenses can follow the bills, but the bills must always be the forefront when it comes to payment time.
#Keep your wallet empty but your account full
Having cash in your pocket will make you feel like you can spend lots of them on lots of things. For people who are already dead rich, this is no problem.
For people who are aspiring to get rich, this can be very problematic. What you should do if you want to get rich with a mediocre paying job is to deposit your money on the bank.
Do not ever think of withdrawing that money because there will be repercussions. You might not be able to resist the temptation that those luxurious things provide.
#Keep your expenses low
Some may point this one as a painfully obvious idea, but not many people can do this thing. Cutting expenses, while it can be scary for some people, is actually pretty easy to do.
If you are someone who usually eats at a fancy restaurant, perhaps you can leave those fancy restaurants behind and go to a local diner.
Sure those apple pies are not as delicious as that filet mignon, but they are undeniably cheaper. Cheap is what you will need to be rich.
#Plan your meals
Planning meals might be a bit off-topic, but meal planning can make or break your chance at being rich.
Plan your meals, what you want to eat and so, and calculate the expense from there. This is easily the simplest thing to do in this list.
Discounts and promotional codes? Get them as fast as you can
People told me that if you spend 300 dollars on an item that was priced at 500 dollars, you do not save money.
They told me that by spending 300 dollars on that stuff, you are not saving 200 dollars and instead waste 300 dollars on it.
These people are the people who never get to plan anything in life and frankly, I do not want to have them near my financial plans.
Still confused why I would not want to have them near my financial plans? Here is an example: say that I have a budget of 1000 dollars.
I have an item tagged at 500 dollars and that item is pretty much an item that I canNOT buy. I put that 500 dollars on my future expense, and I have another 500 to spend on another expense.
Suddenly, that 500 dollars item got a discount to 250 dollars. I, of course, will have another 250 to spend because I only spend 250 for that must buy an item.
Discounts and promotions are useful for those with a plan (because they are made for those people in mind).
#Stay away from credit cards
Credit cards are instant money. Everything that is instant comes with repercussions. The repercussions of credit cards are too much.
#Insurance should not be something you count on
Insurance cannot be something that you count on when the time comes. While they provide many benefits, those benefits usually come with your expenses.
The expenses can get jarring for some people, so if you are not trying and teste, do not risk it.
Stocks can be a good place to invest but do not expect too much of it
Investment can be good, but it can also be bad.
Before you invest in it, make sure you understand how it works and what are the problems that may come from it. Planning is everything, after all.
#Do not stray from your plan
After you have created those plans, there is one last thing that you must not do. You must never stray away from the plans that you have created, no matter how imperfect they are.
Discipline is a virtue, and even if your plans are problematic at first, you can learn to create new ones later, ones that are made with careful consideration.
Those are the 10 financial planning steps that you need to follow to be successful.