To manage finances efficiently, execute the following steps:
· plan
· invest
· give
I refer to this systematic approach as “assigning every dollar a job.” While this method of money management will not ensure a level of wealth comparable to Bill Gates, the process drastically improves quality of life and available options.
Plan
When an inflow of money occurs, allocate the money as follows:
· 15% for personal spending
· 20% for savings, investments, and various funds, i.e. travel, home improvement, etc.
· 65% for recurring expenses such as rent/mortgage, car payment, loans, etc.
As a long-term goal, save 6 months - 1 year of income. During this process, if there is an increase in income do not change the standard of living.
Invest
To stabilize and increase income, allocate money to various investments. Diversify the investment portfolio to create balance. Some forms of investment are real estate, precious metals, gold and silver, bonds, stocks or “equities,” and antiques. A financial advisor would be best suited to assist with an investment plan.
Give
The most common ways to support are giving to churches and charities, starting your own scholarship, or volunteering time. Although there’s minimal monetary return, giving has a way of enabling people to feel good about themselves, which is invaluable.
Grow wealthy slowly. Many people make the claim of wanting to be a millionaire. However, those hopes and wishes are often left to chance. The growth described is not just in finances, but also purpose. The method outlined removes chance from the equation and enables a person to assume power. Through will, faith, consistent action, and solid decision-making, growth is highly probable.