6 ways to start Fattening your Purse

 As I began my march towards financial literacy, I read this very inspiring classic Financial Ebook "The Richest Man in Babylon" by George S. Clason. This book hitted my financial subconcious.
Its hard at first to accept the reality that I was living wrongly with my financial habits and beliefs. I struggled to change but then its no possible. Through this book I learned ways on how will I fatten my purse. 

Sharing you 6 ways to start fattening your purse.

       The Cure for a Lean Purse 

 1. Start thy Purse to Fattening 

  How you'll be able to fatten your purse? Arkad, the richest man in Babylon said that you should "Pay Yourself First". He stated that " A part of I earn is mine to keep".  We all know that to save is, after we get our salary what's left is our allocation for savings. That's the common practice nowadays. Every payday, you should take first 10 percent and set aside as your savings. You'll do this before you pay anyone, This is the right formula, INCOME - SAVINGS = EXPENSES. You have to practice it and make a habit, at the end of the day you'll be surprise that its doable. You'll be able to build an emergency funds out of your savings. Start it now. Its never too late. The percentage for allocating your budget may vary depending on your preference. Example are 10 percent for tithes,  20 percent for savings and 70 percent for your living. It's up to you!

2. Control Thy Expenditures

  Preparing your Budget is a must and you should always be mindful. How will you control your expenditure? Identify your needs over wants. You should list all your expenses even at the very small details to track your money. Some of us complains our income is not enough but the mere problem is our lack of discipline. You should learn the art of delayed gratification. If you can't afford your "luho", let go. Don't compromise to get into debt, plan instead. Save!

3. Make Thy Gold Multiply for a Profitable Investment

       It means growing your money. Saving is not enough because as inflation rises your purchasing power thus. What you need to do is invest. Allow your money to begets another money. We need to learn where to grow it. There are many investment vehicle to venture into. We can start a small business or learn a high-return investment like stocks, mutual funds and UITF. We cannot depend merely with our physical strength. Time will come we'll grow old and need to rest. So we must prepare and build a profitable investments to provide our expenses and sustain our lifestyle.

 4. Guard Thy Treasure from Loss

   Nowadays, scams are like mushrooms, popped-out everywhere! People are very attracted to lure into quick-rich scheme. Their false hope earning an instant bucks blinds them to assess the ligetimacy of their investment. There's no such thing as building wealth overnight. If you want to become wealthy you'll take the right pace of accumulating assets that gain profit in due time. To avoid scams armored yourself with Financial Education. If you have enough knowledge in handling your finances, you can never be fool by any scammer. Guard thy treasure!

5. Insure a Future Income

      In life, we can never tell the future. We don't know our safety everyday, even our job security. We must learn to plan ahead, specially if we are the bread-winner. We should insure ourselves, to save us from any uncertainties. Knowing that we're going to leave our love ones who are not ready to take care of their finances. There are different kinds of insurance according to your needs. Examples are insurance for  Disability,  when you're not able to get back to work, Critical Illness Insurance, that can help you in your hospital billings and  Life Insurance, since death is inevitable, this can provide and leave a huge amount to our family from our unexpected loss. We don't wish any misfortune but we should always anticipate emergencies.

6. Increase thy ability to Earn

      Learning is a never ending process. We should not be complacent to where we are now. If we are making less, we need to improve ourselves and learn a new ways of earnings. We should upgrade our skills to complement the new trend of making money. It's not about just working hard but it's working smart.  We have  many opportunities to earn, we just need to challenge ourselves to step-out from our comfort zone!

  " Go thou forth and practice these truths that thou mayest prosper and grow wealthy!" words of encouragement from Arkad.

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How to Assess Your Financial Status!

         

  Financial Health Assessment has different approach to every individual. It may vary depending on his/her perception. I want to share you the Five Important Windows to look over in assessing your Health finances.

       The first one you should check is your Income. You will ask here, about what kind of income do you have and how much your income. Do you know that there are 2 kinds of income? One is Active Income, and another is Passive Income. Active income are the money that came from your hard work like your salary.While Passive Income is an income that don't need your effort while sleeping its working for you, like earnings from your investment  mutual funds, stock market. About on how much your income? The question here is, Is it enough for your daily expenses and lifestyle that you have? 

    The second window you should look over is your Expenses. How do you balance your expenses over your income? Do you prepare a monthly budget and able to monitor it? Many of us forget the value of budgeting. We just sometimes missed a small details of our expenses that eventually accumulate and then eat a huge percentage of our salary. Example here is the purchases using credit card. When there's a sale in the mall, usually we thought we save a huge bucks because we got discount from an item we bought. From not being mindful to our acts the result is, we are falling into manhole of debts that trap us for paying those bills every month. Bad expenses hinders us in moving forward towards our financial goal.

   The third one is Liabilities. Sounds unfamiliar? Liabilities from Mr. Robert Kiyosaki best selling author of Rich Dad Poor Dad, is the things or properties we bought that take out money from our pocket. We usually spend a lot of things that depreciate its value overtime.Like gadgets,cars accessories, houses and some luxurious stuff that are use for showing off.These things burden you in paying monthly bills, maintenance, upgrades and rentals. As you take a look on your belongings now, can you identify what liabilities you are unconsciously accumulating? And how much the percentage it took in your income? Liabilities losses your power to build wealth.


   Speaking of wealth the fourth window is the Asset. In contrast to liabilities. it is your properties that brings money in your pocket as per Mr. Kiyosaki. Examples of assets are houses and cars for rental purposes, rice fields that are productive and  businesses gaining profits. As you can see, having this things produce more additional income to you. Do you have now assets that can provide your daily or monthly expenses? Do you know how much is your total assets?


  The fifth and the last one is Net Worth. This is the important window among them all. This is the gauge to identify your Financial status. Net Worth is the results of subtracting between your assets and liabilities. It means the higher the net worth the wealthier you are. On the other hand, the lower the net worth or badly if its negative the poorer you are. It is a mirror on how well or worst you are in handling your finances

  How will you rate yourself? Hopefully you'll learn here through this simple illustration. See you on my next article!


P.S. If You want a guide in handling your finances  learn from Bo Sanchez, join Truly Rich Club. To know more about it, click here.