See your budget as the roadmap to your financial freedom!
One way in which you can gain real financial freedom is through reducing your expenses, and the budget plays an important role here.
The closer you follow the map, the sooner you will become financially free.
The quickest way to become financially independent is to lower your expenses. And the best way to that is to eliminate all unproductive debt and the easiest way to do that is to live within your means and to budget.
If you cannot buy something for cash, then you cannot afford it..!
A budget is a valuable tool to help you determine what your spending habits are and to control your expenses. You need to understand how it can help you generate more income and become financially independent as soon as possible.
Once that is done you will know what kind of a surplus you have – then you must learn how to make that surplus work for you. The harder your surplus works for you, the quicker you will become financially free – if you know how to convert the surplus into passive income.
When creating wealth you must learn how to direct your effort to managing your expenses, before you learn how to generate surplus income.
By decreasing your expenses you automatically increase your income.
A budget is an important tool to manage expenses. A budget, correctly used, becomes part of your daily system for becoming a wealth creator. It becomes a living, active, relevant part of your transformation!
Budget management is the process whereby you match your income and spending against the goal you have set for yourself. Part of the management process is to take corrective action when required.
Be careful not to set unrealistic expectations for yourself and always live within your means!
Budget Management:
Learn how to manage your budget daily, weekly and monthly.
You must stay disciplined as you will be bombarded daily with messages designed to part you from your money or to entice you into unproductive debt that makes someone else rich but keeps you poor!
Never underestimate the power of society’s messages and your susceptibility to them. Especially when everyone else is lapping them up and they look at you strangely when you do things differently!
GIVE YOURSELF SUPPORT – DON’T GO TO THE SHOPS!
Managing your budget means that you are taking control over your personal finances. The only things in life you can manage is yourself, your effort, your time and your finances.
By managing your budget you automatically learn how to manage your finances, yourself and your emotions!
IN ORDER FOR YOU TO BECOME FINANCIALLY INDEPENDENT, YOU HAVE TO GET OUT OF UNPRODUCTIVE DEBT!
Your aim is to channel at least 10% of your income into creating wealth!
Once you have your personal budget under control, you may decide to start a business or make an investment without putting strain on the business and without needing to borrow against the investment!
Many businesses fail because their owners did not give them a chance to succeed. They need to withdraw as much money as possible to keep their personal financial position afloat!
The quickest way to kill a new business venture is to deplete its cash flow.
Instead of growing the business, they start withdrawing funds from it!
Use every cent you have to grow your business or to get out of debt faster!