What Do Rich People Have That The Poor Does Not Have Apart From Money? The rich has money which the poor does not have but aside that, there are other urbane possessions of the rich that the poor don't have and I will just write on10 of such. The rich has money because they have learnt how to make money flow to them effortlessly but the poor would never know or do that These other urbane possessions of the rich include: 1. Wealth Mindset The rich has learnt that his mindset is everything and thus he guards jealously never allowing weeds and negative thoughts to live therein and making every effort to avoid the victim mentality. But the poor has accepted his condition as his fate and thus makes no efforts to extricate himself from the poverty pool. 2. Personal and Financial Discipline The rich has taught himself both physical and financial discipline. He does not speak out of tune, he has a cultured mannerism, is often courteous and humble. He also...
These
Acts Will Help Improve Your Financial Health
The word
"personal finance" describes how you manage your money and make
financial plans for the future.
Your financial health is affected by all of your financial decisions and activities.
We are frequently directed by precise rules of thumb, such as "don't buy a property that costs more than two and a half years' worth of salary" or "save at least 10% of your income for retirement."
While many of these proverbs are tried and true, it's also vital to think about what we should be doing in general to enhance our financial health and habits.
We'll go over five major personal finance rules that can help you get on track to meeting your financial objectives.
1. Do the Math: Personal Budgets and Net Worth
Money is received and disbursed.
When it comes to personal finances, many people's knowledge ends there.
Rather than neglecting your finances and leaving them to chance, a little math may help you assess your present financial situation and figure out how to meet your short- and long-term financial objectives.
Calculating your net worth, or the difference between what you possess and what you owe, is a good place to start. Make a list of your assets (what you own) and liabilities (what you owe) to figure out your net worth (what you owe).
To determine your net worth, remove your liabilities from your assets.
Your net worth reflects your financial situation at the time, and it's natural for it to change over time.
Although calculating your net worth once can be beneficial, the true benefit comes from doing so on a regular basis (at least yearly).
Keeping track of your net worth over time allows you to assess your progress, celebrate your victories, and pinpoint areas where you need to improve.
Creating a personal budget or spending plan is also very important. A personal budget, whether it's created weekly or annually, is a valuable financial tool because it can help you:
i. Plan for expenses
ii. Reduce
or eliminate expenses
iii. Save
for future goals
iv. Spend
wisely
v. Plan
for emergencies
vi. Prioritize
spending and saving
A personal budget can be created in a variety of ways, but all of them require calculating income and expense estimates.
Your budget's revenue and expense categories will be determined by your circumstances and may change over time.
Common income categories include:
i. Alimony
ii. Bonuses
iii. Child
support
iv. Disability
benefits
v. Interest
and dividends
vi. Rents
and royalties
vii. Retirement
income
viii. Salaries/wages
ix. Social
security
x. Tips
General expense categories include:
i. Childcare/eldercare
ii. Debt
payments (car loan, student loan, credit card)
iii. Education
(tuition, daycare, books, supplies)
iv. Entertainment
and recreation (sports, hobbies, books, movies, DVDs, concerts, streaming
services)
v. Food
(groceries, dining out)
vi. Giving
(birthdays, holidays, charitable contributions)
vii. Housing
(mortgage or rent, maintenance)
viii. Insurance
(health, home/renters, auto, life)
ix. Medical/Health
Care (doctors, dentists, prescription medications, other known expenses)
x. Personal
(clothing, hair care, gym, professional dues)
xi. Savings
(retirement, education, emergency fund, specific goals such as a vacation)
xii. Special
occasions (weddings, anniversaries, graduation, bar/bat mitzvah)
xiii. Transportation
(gas, taxis, subway, tolls, parking)
xiv. Utilities
(phone, electric, water, gas, cell, cable, internet)
Subtract your expenses from your income after you've made the required predictions.
You have a surplus if you have money left over, and you can spend, save, or invest it anyway you like.
If your spending outweigh your income, you'll need to change your budget by either raising your income (by working longer hours or taking on a second job) or lowering your expenses.
Do the arithmetic to acquire a clear picture of your financial situation and how to get to where you want to go:
On a regular basis, calculate your net worth as well as a personal budget.
Excessive spending and overwhelming debt are the result of people's failure to plan and stick to a thorough budget.
2. Recognize and Deal with Inflationary Lifestyles
If given the opportunity, most people will spend more money.
The phenomenon known as "lifestyle inflation" occurs when people improve in their careers and earn bigger salaries.
Even if you can pay your bills, lifestyle inflation might harm you in the long run by limiting your potential to accumulate wealth.
Every dollar you spend now will cost you less later in life and in retirement.
The drive to keep up with the Joneses is one of the most common reasons people allow lifestyle inflation to ruin their finances. It's normal for people to feel compelled to spend in the same way as their peers and coworkers.
You could feel driven to drive BMWs, vacation at premium locations, and dine at high-end restaurants if your peers do.
What's
easy to forget is that, in many situations, the Joneses are actually paying off
a lot of debt over a long period of time in order to appear prosperous.
The Joneses may be living paycheck to paycheck and not saving a dollar for retirement, despite their opulent "glow"—the boat, the nice cars, the pricey vacations, the private schools for their children.
It's natural for your expenditures to rise as your work and personal circumstances change.
You may need to improve your clothing to suit a new position, or you may require a larger home as your family expands. With increased responsibilities at work, you may discover that hiring someone to mow the grass or clean the house makes sense, allowing you to spend more time with family and friends and increasing your quality of life.
3. Recognize the difference between needs and wants—and spend wisely
Unless you have infinite funds, it's in your best advantage to understand the difference between "needs" and "wants" so you can make smarter financial decisions.
Food, shelter, healthcare, transportation, and a respectable amount of clothing are all needs. Many individuals also regard savings as a necessity, whether it's a set 10% of their income or whatever they can manage to place aside each month.
Wants, on the other hand, are things you'd want to have but don't need to live.
It's difficult to categorize spending as requirements or wants, and many people blur the lines between the two.
It's simple to justify a needless or excessive purchase by claiming that it's a necessity when this happens. A nice example is an automobile. To get to work and pick up your children from school, you'll need a car. You want the high-end SUV that costs twice as much as a more practical vehicle (and costs you more in gas). Although you do need a car, the SUV is still a want. Any price difference between a more cost-effective vehicle and a luxury SUV is money you didn't have to pay.
In your personal budget, your requirements should take priority. You should only spend your discretionary cash on wants when your basic necessities have been addressed.
You also don't have to spend all of your money if you have money left over each week or month after paying for the things you actually need.
4. Get a head start on your savings
It is sometimes stated that it is never too late to begin saving for retirement. Technically, this is correct, but the sooner you begin, the better off you'll be in your retirement years. This is due to the "eighth wonder of the universe," compounding, as Albert Einstein put it.
Compounding is the practice of reinvesting earnings in order to increase their value over time. The bigger the value of the investment and the larger the earnings will (theoretically) be, the longer the earnings are reinvested.
Consider the following scenario: you wish to save $1,000,000 by the time you age 60. To be a millionaire by the age of 60, you'd have to start saving when you're 20 years old and contribute $655.30 per month for 40 years—a total of $314,544. Your monthly payment would increase to $2,432.89 if you waited until you were 40, for a total of $583,894 over 20 years. If you wait until you're 50, you'll have to come up with $6,439.88 per month, or $772,786 over ten years. (These calculations assume a 5% return on investment and no initial investment.)
Please bear in mind that these are merely examples and do not reflect actual returns, taxes, or other issues).
The sooner you get started, the more likely you are to achieve your long-term financial objectives. To achieve the same goal in the future, you will need to save less every month and contribute less total.
5. Have an emergency fund and keep it up to date.
An emergency fund is exactly that: money set aside for unforeseen circumstances.
The fund is designed to assist you in paying for items that would not generally be included in your own budget, such as auto repairs or a dental emergency.
It can also assist you in meeting your usual expenses if your income is disrupted, such as if you are unable to work due to illness or injury, or if you lose your job.
Although the usual recommendation is to set aside three to six months' worth of living expenses in an emergency fund, many people will find that this amount is insufficient to meet a major expense or weather a loss of income. Most people should attempt to save at least six months' worth of living expenses, if possible, in today's unpredictable economic environment.
Including this as a regular expense item in your personal budget is the most effective strategy to ensure that you are saving for emergencies rather than squandering your money.
Keep in mind that creating a backup plan is a never-ending task. You'll almost certainly require it for something as soon as it's funded. Rather than being disappointed, be grateful that you were financially prepared and begin the process of re-establishing the money.
Finally,
Personal finance guidelines can be extremely beneficial in reaching financial success.
However, it's critical to look at the larger picture and develop habits that will help you make better financial decisions and so improve your financial health..
If you don't have strong general habits, it will be difficult to follow precise advice like "never withdraw more than 4% a year to ensure your retirement lasts" or "save 20 times your gross income for a comfortable retirement."
What's your view on this subject matter?
Kindly drop your comments here, we would surely read and response to it.
Thank you for reading
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owned by Topitup Media And Communication Nigeria whose Team Head is Dr. Jerry -
the First Oguzie: JP
At Wealth Is Earned Blog, we believe that being wealthy is a choice just as being poor irrespective of the circumstance and situation and it all streams from the mindset. Throw 2 men into the same gutter, the one with the wealth mindset will make it to the top while the one with the poverty mindset would be there and groveling with other inhabitants of the gutter - it is a mindset thing. God has given you the POWER to make wealth, it is your ABILITY to APPROPRATE what God has given you that makes the difference and it is wholly and entirely dependent on you
About Dr. Jerry - the First Oguzie: JP
Dr. Jerry - the First Oguzie is a Physician, an Author, a Writer, Thinker, Founder, Convener and Success Coaching addict. He is passionate about helping people become the best versions of themselves through coaching, mentoring, teaching, enlightening and enhancing their self worth. And the Platform he uses to reach out to people is his Ministry of Encouragement (MoE). He has deep interests in Personal Development including mindset reset and habit change, Personal Finance, Wealth Creation, Health and Fitness. He believes that financial knowledge (literacy) combined with self - discipline is the key to achieving financial freedom.
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Financial health is a terminology used to describe how one smoothly manages his current financial obligations and have confidence or assurance in his financial future
ReplyDeleteB. One's income
One's spending activities
One's investment and alternate source of income
One's financial education
One's lifestyle
2. *Calculating one's income and expenses*
You should do a check on inflow and outflow so that your outflow does not supercede your inflow
*Recognize and deal with inflatory life*
Everyone likes enjoyment and a good life but do not do it to your income detriment. Cut your cloth according to your coat
*Know your needs and wants*
Prioritize your needs ahead of your wants. Keep your wants at checj
*Savings*
Adopt a good saving formula
*Emergency funds*
Have an emergency funds to help forestall unplanned exigencies that can have a serious deleterious effect on one. At least 6months of one's monthly income
3.The glow of the wealthy depicts a lifestyle one exhibit in order to show affluence such as expensive cars, clothes etc. People that live such life may be in serious debt to be able to finance it. Most wealthy people invest their money rather than putting it into a luxury life
4. Compound interest is a cumulative interest in which one reinvest his earnings from investment in order to make more money
B. Compound interest investment is the 8th wonder because in a short space of time, one can immerse wealth if diligent
5. Having a good financial health is key to financial freedom and independence. It entails having a balanced budget, avoid inflatory lifestyle, live within your means, saving part of your income and having and emergency funds
In doing this, one would be financially healthy and attain financial freedom quickly
1a). Financial health is the state of one's ability to adequately manage, appropriate all outflow, inflow, of cash or monies been earned and have the capability to cause them to earn an asset but not liability.
ReplyDeleteb).
Income.
Expenditures.
Investment.
Savings.
Debts.
Emergency funds.
Planning.
Discipline.
One's lifestyle.
Financial literacy.
2). Five factors includes:
*Plan for expenses.
*Reduce or eliminate expenses.
*Save for future goals.
*Spend wisely.
*Plan for emergencies.
In life, expenses will definitely come. Therefore, one needs to get ready for it. These expenses can come in terms of groceries, tuition fees, childcare and holidays.
Reduce or eliminate expenses. Trying to measure up with friends or peers when ones income is not measuring up to their standard is a hard way to go. We can always bring down our expenses no matter the unwarranted pressure.
No matter how small, one must have a mandate on savings in relation to when to retire. This must correspond with the time in which the savings started. If one wants to retire at 60 with #1million naira, this should be calculated against the age in the person is at the time of the decision.
One must always be meticulous in spending. Spending appropriately to place value for every dollar dished out. This is so because, every of them has a direct impact on the future.
Planning for emergencies is sure to come. Death, health challenges and accidents are not always programmed but must be carefully taken care of in our budget. This is will definitely bring stability to our budget.
3). Glow of the wealthy to me means the ability of the wealthy to be focused on investments that can asset orientated than liability. The wealthy is always focused on the net worth, therefore balances out between asset and liability to keep the figure stable and glowing.
4). Compound interest is investment made from ones savings. That is, reinvesting what one have saved to continue earning while the automatic savings continues.
b). It is so described because the bigger the investment is, the bigger the earnings.
5. Financial literacy is key to everything one needs in thee journey to financial freedom. No matter how much one earns, without having this vital information and knowledge about how money made as income should be appropriated to engage the future efficiently, after efficiently considering outflows like groceries, tuition fees, childcare, emergency repairs of leaking rooms, repair of automobiles and yet adequately save and invest in real asset, then, financial education beckons.
Personal budget.
Inflationary lifestyle.
Differentiate between needs and wants.
Get a head start for your savings.
Emergency fund.
1a. Financial health is defined as being in the right state of mind financially. One cannot be financially healthy without the various factors that contribute such as financial intelligence, financial management, financial literacy, financial education as the case maybe.
ReplyDeleteb *Personal budget
*Always keep your net worth updated all the time.
*Avoid unnecessary spending
*Differentiate between need and want
*Start saving ahead
*Create an emergency fund
2a. Source of income
b. Expenses
c. Budget
3. The glow of the wealthy are the things we get attracted or admire when we see someone who wwe believe is doing well or doing better than us. It is not always a physical admiration, but there is always a high probability it comes in such form.
4a. Compound interest can be defined as the various means of acquiring interest on any investment made usually for a stipulated period of time.
b. It is described as the 8th generational wonder of the world because it has survived the previous generations and has proven itself worthy of becoming the icon that can be practised.
5. The article talks about being financially healthy, not just for the sake of doing it, but having a plan and a target one wants to fulfill as regards his or her own personal financial agreement and discipline.
Comm. Post.3
ReplyDelete1. A.Financial health is one's ability to control money as in income and expenses with all other financial factors taking into consideration.
B. I. Financially educated
Il. The person's income
III.Disciplined
Ill. How the person lives on a budget and his/her ability to do financial calculations to see what the future holds for him/her
IV. The person's network
V. The person's Health
2. a. Income- Income is very vital for a person to live on a balanced budget. Knowing your income whether fixed or on a commission based is very necessary to be able to calculate and cater for what goes out from your pocket and what is left.
b. Savings- To have a balanced budget, there's the need to inculcate the habit of savings and not only savings but to invest in various sectors or diversify your portfolios to earn more even when u stop working.
c. Set up emergency funds- Funds for emergencies should the unforseen circumstance happen is a tool to live in a balanced budget. Is very very appealing to save aside some money for only emergency as a contingency plan. COVID-19 is a typical example where people can learn from it to create an emergency fund.
d. Check your expenses- A habit of over spending can at times be deadly for anyone who desire to gain a healthy financial relationship to live on a balanced budget. One shouldn't buy on impulse but, buy only if is a necessity.
e. Good retirement plan- A good retirement plan from either research or from a financial coach is important. Most retirees life " becomes somehow very unpleasant and difficult just because they never planned well to retire. Is important to invest much into retirement to live a balanced budget and a prosperous retirement life.
3. The Glow of the wealthy is the ability to live the lifestyle of one's investment dividends and insurance premiums throughout his/her life without him/her needing to even work again.
4. Compound interest is the interest accrued over an amount (principal) to gain interest and also re-invest the interest back into principal to earn or accumulate more interest.
b. From Albert Einstein, he describes Compound interest as the people who understands it owns it, where people who don't understand how it works lose it
5. To gain financial freedom is like treating a particular disease. U need a doctor in Finance as in mentor or financial coach or advisor to train you on how best to accumulate wealth. However, to accumulate wealth, there is the need to go for financial check up to treat you of all financial ailments. Moreover, this blog post depicts and diagnose most of the financial ailments which includes savings, budget, income, how to control your spending etc which best describes the drugs to restore and facilitate the mindset on how best to be financially healthy by taking all the required and structured measures from the blog post to attain financial independence like, controlling your expenses, acquisition of financial knowledge in key financial terms like savings, budget and Investment. In all, to attain, financial independence and live the lifestyle of the Glow of wealthy, one need to be financially fit and healthy to achieve such a milestone.
Morgan Oscar
ReplyDelete1.a. Financial health is a term used to describes a person's financial status; and it is determined by this person's income, debt level, expenses, ability to maintain a personal budget.
1.b. Financial decisions and financial activities, like how this person spends, how this person falls into debts, ability to discipline oneself to attend to certain wants only after needs have been addressed.
2. *A balanced budget must always help plan for the expenses for the month and the period that budget represents.
*With a balanced budget it helps you reduce and cut off unnecessary expenses, that will cause one to spend more than the income.
*A balanced budget will take into consideration saving for the future, so as to raise you income level.
*With reduced and targeted spending and also savings, wisdom is always applied in spending and money is not spent recklessly.
*A balanced budget helps to keep money for cases of unplanned emergencies.
3. The glow of the wealthy is the comfortable, flashy, satisfactory and expensive lifestyles practiced by these wealthy people.
4.a. Compound interest is the interest gotten from reinvesting earnings in order to increase the value of these earnings over time.
4.b. Compound interest is described as the 8th wonder of the world because of how it is obtained over time through existing income and also how it helps to sustain one after retirement for a long period of time.
5. The article describes financial health as a product of proper personal budgeting. It helps to give certain benefits of proper personal budgets, and it helps us to understand that any properly prepared personal budget must take into consideration, forthcoming expenses, help to reduce unnecessary expenses, help to save for future goals, spend wisely and many more. The most important part about personal budgeting is not in its preparation, rather in one been disciplined enough to stick to the budget, to avoid debts in the long run.
1.Finanical health is a term used to describe the state of one's personal monetary affairs. There are many dimensions to financial health including the amount of savings you have, how much you're putting away for retirement and how much of your income you are spending on fixed or non- discretionary expenses.
ReplyDeleteb.i Determing your net worth, and see which way is trending.
ii.Calculate your debt-to-income ratio (and try not to scream).
iii.Evaluate your housing situation, find out where your money is going and if you're spending more than you should.
2.Personal budget and net worth. Calculating your net worth or the difference between what you possess and what you owe ie remove your liabilities from your assets.
ii.Recognize and deal with the inflationary lifestyle. Minding how you spend money as in not following the trend.
iii.Recognize the difference between needs and wants and spend wisely. It will help you to make financial decisions. Your personal priority should come first.
iv.Get a head start on your savings. Its advisable to start early to save for retirement because it will surely come.
v.Have an emergency fund and keep it updated. This means money must be kept aside for unforeseen circumstances. It can also assist in meeting your unusual expenses if your income is disrupted.
3.The" glow of the wealthy " In my view I believe is all about luxurious lifestyle of some rich people, which are merely outward appearance to show off and impress the public while in the actual sense they borrowed or paying secretly to clear the debts.
4a.Compound interest is the addition of interest to the principal sum of a loan or deposit or in other words interest on interest. It is the result of reinvesting interest, rather than paying it out,so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
b.Compound interest as the eighth wonders of the world " Saying he who understands it earns it, he who does not pays for it. It is when the interest one earns on a principal balance is reinvested and generates additional interest. The real route to riches is to set aside a portion of your money and invest it so that it compounds over many years. That's how you will become wealthy while you sleep. That's how you make money your slave instead of being a slave to money.
5.In conclusion,this article talks about financial health as the ultimate goal search. It guides you to have a balanced budget, desist inflationary lifestyle, know the difference between needs and wants, saving part of your income, having emergency funds. Above all reinvesting because this is the one that will actually compound your investment.
This comment has been removed by the author.
ReplyDeleteNo1
ReplyDeleteFinancial health is the feeling of having financial security and financial freedom of choice, in the present and when considering the future.
There are many dimensions to financial health, including the amount of savings you have, how much you're putting away for retirement, and how much of your income you are spending on fixed or non-discretionary expenses.
b.
- Leverage.
- Liquidity.
- Fixed Asset Intensity.
- Firm Size.
- Firm Value.
No2.
- Plan for expenses: Make sure you have drafted how you will spend before embarking on it.
- Reduce or eliminate expenses: Find a way to eliminate unnecessary expense from your budget. Know what you really need to avoid buying things you don't need.
- Save for future goals: Save and save always.
- Spend wisely: It is always good to spend wisely.
- Plan for emergencies: Emergency fund is very important to take care of health, transport and other unforseen circumstances.
No3
The glow of wealth means. Wealth is powerful enough that it's impact is not hidden; it's crystal clear to the eyes.
No4
a.
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
b.
Compound interest is the eighth wonder of the world because: "The real route to riches is to set aside a portion of your money and invest it, so that it compounds over many years.
No5
Five major personal finance rules that can help you get on track to meeting your financial objectives are;
_Do the Math: Personal Budgets and Net Worth.
_Recognize and Deal by with Inflationary Lifestyles.
_Recognize the difference between needs and wants—and spend wisely.
_Get a head start on your savings.
_Have an emergency fund and keep it up to date.