This is the one we all do, right? We plan financially for our futures by investing, saving budgeting or all of the above. We deprive ourselves of that new car, new house, big boat, new motorcycle, new furniture, etc, etc, etc. We do all this because we’re good financial planners and we want to plan for that rainy day. Actually, financial planning is a smart idea. If done right, we may be able to plan for our financial future and still have a little fun today.

Probably the most important step, and certainly the step you should take first, is to figure out how much you can afford to spend. If you haven't set up a budget that shows you how much you're spending on everyday things, now is the time to do it.

It’s hard to get rich quickly but it is easy to get rich slowly. The greatest use of money is to secure freedom; freedom from want, from dependence, from boredom. Your goal is to provide that freedom for yourself and your family. Eventually, you will spread that “freedom” and assist others to reach that level.

Now that you have begun to track your spending and are making money through the “Multiple Methods of Making Money” outlined in the previous chapter, don’t forget the basics. Save 10% in a savings account, 10% investing (real estate and business ventures) and 10% for charity. The charity element is ESSENTIAL! The pure gratification and ability to make a difference in this world through monetary contributions and volunteering your services to help others is indescribable and life changing. Remember, you can get everything in life you want if you help others get what they want.

Continue to track your progress with your financial statement. This will be your progress report for the rest of your life…so make sure it is a FRIENDLY report with many HAPPY assets!

List the value of your assets on one side of the paper and the total of what you owe (your liabilities) on the other side. You subtract one from the other and that is how you come up with your net worth.

It is not important how much or little you have, it is important that you keep track!

Benefits of keeping track:

 

1. Important for taxes.

 

2. Builds your own sense of self worth.

3. It keeps you on track toward your financial goals – see how far you have come.

4. Helps you resist major purchases that would take away from your future financial independence.

 

Joe Kahler is recognized as an expert on helping young adults successfully transition from home to being “out on their own”. His latest work has recently been assembled in his book, Out On My Own... Now What? Tips and Insights So You Won’t Be Left Hanging in the “Real World”!

Joe received his undergraduate degree from Whittier College in Social Sciences and his Masters in Education from Arizona State University. His experience includes teaching, coaching, running numerous businesses, investing, selling insurance and real estate AND attending numerous personal, “hard knocks” training classes!

http://www.outonmyown.com

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