FINANCIAL FREEDOM

Your complete guide to achieve financial freedom. Proven tips, tools and tactics for you to achieve financial freedom. Make money, save money and effectively manage your money.

Manage Money Without Depriving

Written by Dian Herdiana on 8:41 AM

It is a fact that there would always be a system wherein we will not be getting everything we want because of financial limitations. In short, we cannot have everything at the instant we would want it. There would have to be planning or if not, some careful deliberation about whether we would be getting the item we want or not. This is because sooner or later, finances would always fall short of the expenses. That is why we manage our money and budget for the things that we would want to acquire. Nevertheless, when we manage money without depriving, we would want to be able to enjoy a certain degree of satisfaction and fulfillment without compromising our savings.

Deprivation would mean curtailing our freedom to the point of not being able to enjoy some of our hard earned resources. Though it is an irony in itself that we are already limited with finances and yet would not want to be deprived, a balance of enjoyment and requirement is what dictates the existence of deprivation if ever.

Earn More

One of the most common means of people to raise the level of financial freedom is to earn more by working more. However, this is limited with the many social factors which include degree of educational attainment, time, job availability, and more often than not, personal accomplishments.

Some may get lucky to be in the lighter side of personal assessment by the human resource personnel and be accepted for a job despite the incomplete compliance of requirements. There are also some who, despite their educational attainment and personal socio-civic accomplishments, are still not able to land a job they desire due to a personal prerogative
of the recruiter to not accept the applicant.

What this presents is a semi-random chance of a person to fully comply with all the factors which constitutes landing of another job than the current one.

Save More

A classic means of how to manage money without depriving is to focus on saving the excess money that flows in the household after deducting all the other monthly expenses and bills. Saving money definitely means having money when the need for an important expense is required.

Saving more would merit to having more extra cash, but also poses a paradox in itself in a way that when you save money, you are already keeping that for something
projected as an event that could happen. In this manner, there would be a difficulty in using that fund intended for an important thing to be spent on something that would just be for leisure and
satisfaction.

Learn To Be Content

The degree of limitation and deprivation on a person’s financial resources is dictated by the personal level of satisfaction. A person’s idea of contentment is the same as his perception on what he needs and wants. A person who is “want” oriented will always be seeking for things that may already be unattainable at the current financial level, and would feel deprived of such. On the other hand, a person who is “need” oriented would be able to do away with leisure and may
also feel deprived deep inside of finer things that may have been acquired.

The key to manage money without depriving is to learn to already accept what is possible to be attained and work from there. If there is a rather unattainable thing to spend money on, then that is the time the person should plan and think about the means to reach that and make that attainable.

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Manage Money For The Home

Written by Dian Herdiana on 11:07 AM

Managing money may have been something that we have already started practicing since we started receiving allowances from our parents. Most of us learned to manage money at a later time when we got to elementary schooling since we only had our lunchboxes during kindergarten to support our ever hungry stomachs. As we grow older and leave the academic environment, we then begin to focus on managing our money on other things such as a relationship and self sustenance. As we go into married life and start our own family, we then focus on how to manage money for the home.

There are many things to take into consideration when we manage money for the home and allocate the appropriate budgeting of our salaries to prevent ourselves from having credits, and on a worse case scenario go into bankruptcy. This also happens even with a combined salary of each parent. Such end point would be damaging to the self esteem and living conditions of each member of the family.

Before we get into such confusion and inconvenient status, here are some of the basic things that we need to allocate tight and properly allocated budgeting, given that responsibility and the number of kids have been taken into consideration.

The House

One of the most important things to consider in allocation of budget would be the house. Mortgages and taxes that come along with the acquisition of a house would have the greatest impact in a family budgeting scheme as it would be the basis of living. Without a proper house to dwell in and a home to thrive in, each member of a family would have the trouble to set up the other factors for managing money for a home setting.

Even with non-owned dwellings such as apartments, condominiums, and the like would require an added burden on the budget scheme as the rates of the homes being rented would vary depending on the landowners’ preference. This factor would require one of the top priorities for budgeting besides food.

Food

Food is one of the essential things for human existence besides air and water. Without it, we cannot function properly for long and we would definitely expire. Food is not free like air and perhaps water in some cases, and definitely would have to be given allocation in the budgeting in a home setting. Even if food calls for the most urgent attention for compliance, it does not require as much financial allocation to meet the least requirement as compared to a house. Furthermore, food is abundantly available as compared to a house or dwelling location.

Utilities

Utilities are the different services that the home enjoys for a more efficient and convenient living. These include water, electrical, gas, and heat services, with the last two being applicable to more modern communities located in the colder regions.These are almost as necessary as the essential needs as they are already part of the living conditions of a home.

Being conscious about the things to be considered to manage money for the home is very crucial in attaining further goals in family existence, and being able to provide the necessary things in which the family would thrive and prosper. Without responsible budgeting, chances are that credits and bills would amount to drastic amounts which could damage the harmony of each
member’s living.

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Manage Money Through Banking

Written by Dian Herdiana on 8:48 AM

Perhaps one of the greatest breakthroughs in civilization is the concept of banking. Banking paved the way to the creation of bigger corporations, complex institutions, more secure financial transactions, and global economic interdependence.

People manage money through banking to make sure that the heard earned money that they acquire stays safe, healthily anchored in a national market, and easilyaccessible without having to hold on to the money itself.

Banks have been introduced since approximately 3 B.C. when temples held resources in terms of grains and other produce for commercial trading. Modern banking which standardized banknotes as currency was established during the 1500's and marked a new era of western banking as well.

Since then, banking have been brought to new heights with introduction of technology which allowed virtual banking while still being associated with real world currency.

Faster transactions and larger volumes of money can now be transferred to any point in the globe with a global banking system with just a click of a button.

Managing money has been developed in consistency to provide ease of understandability and utilization for the common citizen as well. This ensures that ahealthy banking and economic environment is maintained.

Personal Accounts

The most common and simplest form of a way to manage money through banking is by opening a personal account. This is then given an option of how the account should act, either as a savings account or a checking account. The former is the most basic form of savings with a fixed interest rate, as well as a minimum maintaining balance to prevent account closure.

The latter is designed to allow individuals who handle a larger amount of money to transact and pay without having to go to the bank and withdraw the large amountof money, thereby exposing himself to danger. Checks are tendered as legal bank notes, holding power to be converted to cash by the recipient.

Time Deposit

Time deposit accounts are fairly simple in nature. It is similar to a savings account, but only that there is a fixed matrix set by the bank for client compliance in terms of the amount of money deposited.

This is of course corresponded with the appropriate interest rate and benefits, should the amount in the matrix be higher.

There is one main catch for this type of managing money which is that when the individual engages on this savings type, the money that was deposited is waited to mature before it can be manipulated.Otherwise, the interest rates and benefits are not honored or curtailed in the process.

Credit Cards And Debit Cards

Credit cards and debit cards are two of the other alternatives to do banking. These are electronically crafted items which can be used to serve as a portable resource.
Establishments supporting these types of ransactions credit the expenses directly to the bank olding that account for any charges that are billed to the owner of that card.

Though this is a convenient and safe way to not bring any cold cash around, the risk of getting victimized by fraudulent activities such as credit card information hacking and the like also exposes the user to a level of threat with his money and resources.

A credit card is a feature given by a bank to its client to be able to buy in advance and be billed later on and deducted with the appropriate charges incurred over a monthly cycle plus taxes and charges.

A debit card is more of a limited credit card that allows the user to transact with an electronic card with establishments, only that the amount of charges that could be incurred is based on the actual money in that account and nothing more.It is a tricky concept to manage money through banking
if not understood correctly. It is therefore encouraged to the clients to read the fine print, and the terms and conditions as well for the different bank policies.

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Dealing With Your Failure to Manage Your Money

Written by Dian Herdiana on 8:27 AM

Something that a lot of people do not how to do is to manage money, but it is also something that you can overcome. You don't have to be left in the dark about your finances in order to feel better. You'll want to keep in mind that when it comes to dealing with your failures, that you'll need to just stop spending for one day. Try to get some type of grasp on the situation by knowing exactly how much you have in the bank as of the present moment. Go online and check all your credit card balances. You'll want to consider doing anything and everything that you can think of in order to keep your credit good.

The first thing that you will want to do is get rid of all, but one credit card. Once you have that credit card, use for only emergency purposes (not just for shopping sprees). Once you realize that you have too many credit lines open, you'll be able to keep your credit score going. There are a lot of credit cards that can be canceled and still be paid on. If you end the credit card line today, you'll still continue to lower your balance, but not have the option to charge anything. You'll want to talk to some of your credit card companies in this manner so that you can keep yourself from further debt. There are just some people who can handle the credit and some people who can not.

The second thing that you'll want to do is get someone that you trust to help you with your personal income and spending. Try to get someone who is experienced and good with their money like your sister, brother, mother, father, or even your husband. They will help you to get on the right track.

You'll need to sit down and consider what is right and what is wrong with your finances. If you simply are over extended from your income, then you may need to get a second or third job to clear your name. You'll need to consider that you credit score is hard to fix, but within five years you can get out of the red and into the black. You are going to absolutely require to integrate all your credit cards and possibly refinance your mortgage so that you are able to get fewer payments a month. You are going to want to consider combining all of your credit cards into one payment so that you have less to worry about and also, you'll be able to get your credit under control. Keep in mind that this is the perfect way for you to be able to get rid of your debt as well.

If you are unable to reconsolidate or refinance then you are going to have to fix two things; your income and your outcome. First, you need to cut back on your spending. This means that you'll need to give up things like going out to restaurants and bars. You'll also want to watch how big of gifts that you give out. Finally, do not act like you have more money than you do. If you are able to limit yourself to $50 a week for things like cigs, drinking, entertainment, and take out then you'll be able to save money.

Finally, you'll have to learn how to save money. Saving money is hard, because you feel like you have a lot more money than you know what to do with, however, you need to save and make money through investments. These investments would be like interest bearing accounts. Use things like CDS and even savings accounts so that you can keep yourself from the debt.

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