What Is The Smartest Way To Save?

People always been talking about saving. But, what is the smartest way to save? The answer is PAY YOURSELF FIRST. How? Come find out yourself and share with your friends and family.

NST Article 6

Personal Cash Flow Planner

In a survey carried out in 2011 in the United Kingdom by POET (Personal Budgets Outcomes Evaluation Tool), it is revealed that personal budget have a positive impact on people’s lives. Meaning they are supported with self-respect, and in control of their finances.

To prevent yourself from falling the trap of credit card debt or excessive spending, picking up the skill in managing your personal budget or personal cash flow will not only avoid from building up debt, but it also gives you an overview of your personal financial position – Where are you today? How you want to live your life? Save money to live you dream; save money for investment.

Many people are intimidated by the idea of personal cash flow because it seems complicated. Actually it is just a simple mathematics equation. I have designed a Personal Cash Flow Planner template. All you have to do is to key-in the figures.

At the beginning, your financial position may not look good. When you get the result about where your money had spent, you will start to scrutinize and cut down on unnecessary spending. This will be your first step towards financial independence. Keep the good job and continue with this practice.

You will soon find there is some surplus at the end of the month. You could start to ‘Pay Yourself First’ and allocate a portion of your income into the Savings account (a general guideline of 10% of your total income) and ‘forget about it’ or don’t touch the money. Once you are consistently doing that, you will see that your account ending balance accumulating. In my books, I elaborate in detail how to build your Personal Income Statement that also lead you to read a company financial statement when you learn about investment in companies.

As the season of giving is around the corner, do your shopping wisely. Spend on meaningful gift instead of unnecessary gift. You do not wish that your gift end up on an auction site. I wish you a very Merry Christmas & Happy New Year 2013!

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