Financial Common Sense Part 2

Wow Thanksgiving is almost here!! Its amazing how fast time can go 2012 is almost over!! How close are you to hitting your goals you had set for this year, or this quarter or just this week even! I hope your getting there and if not, lets reset and change something and do it again.

Hopefully you have gone though some of the books and principles I listed in part one of this article. What I wanted to cover today is something very basic but so vitally important to you financial success whether your making $30,000 a year or $300,000 per month!  Its what every successful person and business does with regards to their finances. So if your in trouble financially this is the very first step you want to do.

You can get more in-depth detail from our Finance Pack http://www.the-life-business.com/Shopping/tabid/63/ProdID/1709/language/en-US/Default.aspx

But the first thin you need to do is know exactly where your at with incoming and out going cash flow. Learning to write a balance sheet will help you with this as Robert Kiyosaki teaches this in his books too. But you need to know exactly where you are Net, not Gross. We need to work with exactly what you have coming in to your hands every week or two weeks or month.

Then we need to look at exactly what you spend every month. Now this one gets tricky and so people don’t self deceive them selves what you can do is use your smart phone and a app or a basic small note pad and pen to track everything you spend. if its more then 25 cents write it down or put it in your app. Do this for a month then look at it and see if what it says is as accurate as to what you were thinking it was.

This is the very first step to creating wealth in your life and its a non negotiable, if you don’t manage it then you never will, but if you do then the moon is the limit on what you can achieve.

Keep reading and learning, the Richest Man in Babylon is a great Book to start you on the right track of financial principles, its about 85 pages and the stories are more relevant now then they were 4000 years ago. So many people are selling them selves as slaves to interest and bad finances just as they did back then, except its a bit more comfy now, which is bad thing. There is no motivation to get out as there once was unless you have this realization that I want better for my life.

I hope you do! God bless and till next time when I write about what Thanksgiving is really all about and how it almost never was!

=)

Financial Common Sense Part 1

Its been a little while and I apologize for that, going to start making sure I put up at least one every other week if not every week. So stay tuned for more =)

I have been going back though my Robert kiyosaki books and want to start focusing on personal finances for a while, 1 because my views on money really were off by a long shot and in the last 7 years they have changed and grown dramatically.  Through the help of reading and starting to apply some things  that I learned from a few books I am going to break this up in to about 5 parts and list a lot of books that helped me and the rest of the world. Being wealthy is very easy and simple and boring. So its hard for a lot of people because humans do not like boring. We like fast and exciting and the chase, this goes for being in good health and shape too. its little steps over time doing the same thing not really changing anything so its mundane at best.

But finances are so important right now because we have had some major issues in the last 5 years with money at the biggest levels in government and States and at home. Government has printed more money which has inflated our currency supply in the last 6 years then the last 200, its almost tripled. now it don’t take a genius to realize that if I had 100 dollars and you triple the currency supply well now it spends like 33 dollars. So all that money sitting in a 401K or IRA that’s collecting we will just say 8-15% because everyone is different and such. that a loss from inflation of 66% sure don’t add up and that happened almost over night.

So I am going to start with some concepts and reference some books in the hopes that we can have a discussion about it and I hope this information will change your financial situation for the better.

The best books to start off with are;

The Richest Man in Babylon by George S Clayton you can find it here.

http://www.the-life-business.com/Shopping/tabid/63/ProdID/1376/richestmaninbabylonthe.aspx

or at your local book store or Amazon or what ever you shop.

also we have The Maximize your Finances pack which includes the Richest Man in Babylon and 4 Audio Cds on financial management

http://www.the-life-business.com/Shopping/tabid/63/ProdID/1709/language/en-US/Default.aspx

Also Robert Kiyosaki’s Rich Dad, Poor Dad

http://www.the-life-business.com/Shopping/tabid/63/ProdID/14/richdadpoordad.aspx

And also The Cash Flow Quadrant.

http://www.the-life-business.com/Shopping/tabid/63/ProdID/13/cashflowquadrant.aspx

These 4 books are the basics of personal financial management. I will touch on the concepts of each book but get them for your selves or the audios and read or listen to them over and over because finances are one of the most important things to have a handle on out there right now. With the recent bail outs and financial collapse and people losing billions from their retirements and assets tied to the stock market with no control over it other then to wait 10 or 20 years for it to return back to what it was before they lost 50% of it. its time we all knew more about what makes the world run financially, because the need and use of money has been around for thousands of years and its not going away any time soon. So its best to get good at it so your not suffering. Deal?

In Robert kiyosaki’s book the Cash flow Quadrant he talks about the 4 ways of thinking about money and where they come from at the root of a persons beliefs. Much like the 4 personality profiles.

He goes in to detail in the book about the mind set people have developed over the year’s of being programmed by media and our parents and such about how we view money. So its very important to be careful what information you let in to your mind. You will believe anything your told over and over again weather its right or wrong. I personally do not have cable or Satellite TV or watch the news in any facet. I pick and choose what I want my inputs to be. its been about 10 years since I did that. Now when I do catch a commercial or TV show it really makes me sick what I used to tolerate being stuck in my mind. The subconscious is a very powerful thing it can take in so much information and it helps direct us where we want to go. So its vital that you do the programming of it and cut off anything that’s bad or could be harmful to your dreams and goals in life.

I am going to leave it here and will be spending the next few weeks on finances. Get those books from where ever you can. start learning and asking questions.

until next week =)