The 7 Passages Towards the Financial Security
At times of crisis tested the foundations on which we have built. A strong foundation should withstand the storms that blow during volatile economic times.
Unfortunately, the latest economic crisis uncovered huge money management weaknesses and many people were surprised by its catastrophic effects. They had to watch helplessly as their jobs, their savings and belongings went up in smoke literally.
If you were one of them, no regrets for mistakes, but look forward and ask yourself how you can learn from them. It’s good to always keep a grateful attitude that focuses on what one has and not what you do not have. That will help overcome their problems rather than anything else.
And now, with a spirit of self-improvement and optimism, look forward and see that things can change so that in the future can have peace about your finances.
It is a historical fact that the economy behaves in cycles. So today I want to give the necessary tools to be well prepared for the next crisis, because it will come sooner or later.
The 7 steps towards peace in your finances:
1: Pay all your debts
similarly to compound interest rates work to your favor when you invest your money, work against them when they should. A debt is a double cost: the payment of fees and the money left to win because they can’t invest.
2: Establish an emergency savings account
You should have a well of at least 3 salaries in order to face any emergency in your life.
3: Be generous and make a 10% grant
It is a universal and biblical principle that always comes after crop sowing. If sows sparingly will also reap sparingly. This is the most important step you can take toward financial security.
4: Invest 10% of their income
Before you spend your paycheck, pay yourself. This money is money that will work for you by using mutual funds, stocks, real estate and business.
5: Save for the education of their children
It is a fact that Chilean families contribute three times more than those of developed countries to finance higher education for their children. Do not let this stage, the pinch off guard.
6: Pay your home as soon as possible
There is a huge difference in the amount of money you spend on your house to pay 30 years or 15 years. It is better to pay it as soon as possible and invest what is saved.
7: Learn how to create multiple income sources
The idea is to have the eggs in different baskets that are producing income month after month. If you have not been able to establish multiple sources of income, it’s because he lacked the necessary information to do so. It is therefore important to invest in your financial education before attempting to invest in anything else.