Create a plan that makes you solvent. One of the reasons why people never seem to have enough money is that they focus their attention on a budget instead of the creation of money and solvency also known as a financial plan. A financial plan differs from a budget and is the basic entry point to creating wealth. It serves as a road map for creating finances and correctly managing your income.
Steps to take:
First, determine your budget:
a) how much money do you currently spend each month
b) how much money do you really need in order to live?
c) how much do you need in order to fund future retirement plans, vacations, children’s education, investments, and savings that will ensure wealth?
Second, figure out how much money you actually need to bring in monthly in order to create solvency and get all that you want accomplished. Solvency – the ability of an entity to pay its debts with available cash.
A true financial plan should include:
• clearly stated monetary goals
• exactly how you’re going to create surpluses of money
• what to do with the surpluses
A financial plan is different than a budget! A financial plan creates finances, while a budget is what you are spending money on. The other difference is that most people don’t have a financial plan they only have a budget.
Without an aggressive financial plan that will one day provide you with financial freedom motivation for doing your job everyday is almost impossible!
If you are finding yourself not doing enough and/or not excited about your work, you are missing a strong financial plan.
Plan to boost your success.