A good plan to become rich when followed leads to success; it does not matter if present situations are good or bad. If an individual sets up a goal and works hard to achieve it for example in his finances he must develop a plan which he must follow to make the goal successful. The only way to get and maintain financial security is to have your money planed that is how it gets in and goes out.
It begins by setting financial goals
The call for success in a man’s life is the natural drive of wanting to be rich, which is a good thing. The fact is that it is not enough wanting to be rich but it all begins by setting attainable and specific goals and questions like “what will I be in 10 years?’’ by answering this question with generic answers like “I want to be rich’’ should be avoided. Instead, more specific and focused answers like “ I want to own a restaurant apart from my job, have an amount of $250,000 ready to invest in any business venture and have set aside fund to sponsor my children.’’ From here the various activities you are to do in order to get there are put in place.
How do I spend my money?
Developing a budget detail of your day to day expenses is the most important step in your plan to become rich. With the help of a small pocket note book which can be carried anywhere in order to note down any expenses made during the day. With technological advance today there are mobile applications like Pageonce.com that can help track your daily expenses.
At the end of the week few minutes of your day like 45 minutes can be used to run through the notes of expenses. And then the different areas of expenditure can be grouped into the various categories for example expenditures made on food, clothing, transportation, healthcare, rental services and other utilities. This activity is done for the other weeks and within a month, a rough estimate of the total money spent in the month can be known. Maintain this activity for at list 3-4 months. By so doing you are able to know how much unpredicted expenses like car maintenance (repairs) takes and how much you spend on unnecessary goods and services. All of this will help you know how you spend money.
More to that knowing how money is spent will help you better plan on how you will save as to meet up with the goals you have put in place.
Taking an insurance
It is well known that health is wealth, therefore in drawing your plan to become rich it is important to include or to take a health insurance that will cover you. Similarly, a disability insurance should be taken to which will cover your earning power. In a situation where you have a family to take care of, they should also have the same insurance coving their health. Other insurances for unexpected circumstances like auto insurance, or even for your house should be taken because if the loss of your house or health problems can go deep into your finances, therefore all measures should be taken to be “financially save.”
Watch at your credit
Credit is a fast means to grow especially when going into business but it is important to check at your scores using the three big credit agencies, Equifax (www.equifax.com), Experian (www.experian.com), and Transunion (www.transunion.com).
By so doing you will make sure there are no inconsistency between your records and that of your creditor. In case of any errors they can be corrected.
This is a very difficult part in your plan because it involves scarifying many pleasures to meet up with the amount necessary for your goals. This is based on your outgo, it does not matter or it is not based on your paycheck because your paycheck can be huge and spending much which leaves little to be saved. This involves discipline and a control to lower expenditures on pleasures and not to eliminate them.
Build up your plan
The next step after saving is investment, this would help money work for you because that is one of the key factors in getting rich as stated by Robert Kiyosaki in his book “Rich dad, Poor dad,” one easy way is with mutual funds. This is because it saves time since you just put your money as investment into stocks, bonds, currencies, treasures and money market in which other experts will help your wealth grow.
Verifying that you are online with your plans
Since a financial plan it takes a long time to come into accomplish it is important to plan monitor the plan closely making sure it is being respected. This will help you identify if your goals have changed and how your various investments are generating enough profit. If possible you can breakdown this verification to be semi-annually, or even quarterly, which can permit you not to lose track over a long period.
There comes a moment where in order to meet up with one goal the others might be sacrificed or delayed for example one of your goals was to open a restaurant over that period of 10 years and another was to get a beautiful house of $ 400,000 then to afford one the other might be delayed. So in drawing your financial plan there is need for flexibility.