Learnt something useful and important in managing my own finances tonight
Through out my life, my academic study and focus have always been in marketing, PR and mass communications. These are my strengths.
Finance is an untapped area as numbers scare me. I only know debit & credit and how to balance my sheet, barely.
Though I always have some personal principles concerning my financial planning. They are:
1) Earn More, Spend Less, Save More
2) No Credit cards unless it is absolutely necessary. Never chalk my credit bills.
3) Build assets and not liabilities. Accumulate wealth to buy my house first instead of owning a car ( I only learnt this after age 30)
4)Build Businesses rather than working for a company.
5) Understand the cash flow quadrant by Robert Kiyosaki and apply it to my own life.
Tonight I learnt something more about the secrets to successful financial Planning.
1) Always have 10x Life cover of your annual Income to protect your loved ones.
2) Always have 5x coverage of your AI for Income protection against critical illness and death.
3) Always allocate 20% of your income to your retirement.
4) Always allocate 5% of your income to your children’s education.
If you are single, then 2) and 3) are important points to consider only.
It’s indeed interesting. The blueprint to a financially stable and happier life.