How Tightly Do You Have to Manage Your Personal Finances?

A simple personal cash flow plan is always better than one which is complicated, difficult to understand and even more difficult to live on.

Too many times, people over complicate their personal cash flow plans and try to draw in their purse strings so tight that they burn themselves out and give up on their financial freedom plan altogether.

So this raises the question: “Just how tightly do you have to manage your personal finances?” This article will answer that question and help you to stay on track with a simple personal cash flow plan…

The Key to Financial Success…

The key to financial success is to have a deliberate plan for how you’re spending your money. In other words, spend your money however you want…just do it on purpose and have a plan.

Financial freedom will never come about as the result of spending without a plan. You might have heard that failure to plan is planning to fail…but when it comes to your personal finances, it’s actually worse than that. In personal finances, you’ll either have a plan or end up living by someone else’s plan as a default.

Just think about all the companies out there that have a marketing plan for how they want you to spend your money…especially around tax time. If these marketing plans didn’t work, you wouldn’t have so many broke people in this country.

These people are broke for one reason: they aren’t managing their personal cash flow on purpose…so they end up spending it based on someone else’s plan. For example, if you don’t plan ahead for Christmas shopping or for school clothes, Visa or MasterCard will probably send you an irresistible offer around that time.

If you don’t have a plan for spending your tax return, someone will make you an irresistible offer and your money will end up in that person’s hands. So when it comes to your financial planning, you don’t have to be super tight, you simply need a plan for making sure that your spending happens the way you plan it to…in advance.

A Simple Personal Cash Flow Plan

The simplest personal cash flow plan for “doing it on purpose” is the four bucket personal spending system.

It works like this: invest 10% first, give 10% second, invest 10% in cash reserves third and pay your expenses fourth with the remaining 70%. This simple personal cash flow plan helps you to make investing and giving a priority over paying your expenses.

This is the only way to turn the financial tides in your favor and stop living from check to check. Most people have more money than they realize, the problem is that they’re not spending it on purpose and that’s because they don’t have a simple personal cash flow plan.

The four bucket system is your one way ticket out of this lifestyle and into one of financial freedom and simplicity.

There is more… Click here to receive your free ebook on Personal Wealth Building and learn more…

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