Business Fit Magazine July 2019 Issue 3 | Page 66

Business Before we talk about the habits, make sure you know your financial goals precisely! Personal Finance Habits You Need to Adopt Serial entrepreneur, international speaker, success strategist, Valerie Prasetyo, shares with Business Fit readers some of the financial habits she’s adopted to achieve her goals. Having a beautiful home in lovely surroundings; travelling with friends and family wherever and whenever you want; being able to work from any part of this planet; enjoying shopping in your favourite places; spending quality time with your nearest and dearest without thinking about costs and prices; having multiple passive income streams from the investments you made: the wish list or dream list can be very long. But what is the reality? How close are you to the specific lifestyle you want to have or financial goals you are targeting? If the reality is about making ends meet each month and spending most of your earnings on liabilities... it’s time to make some shifts. What if I tell you that with a gradual change in your financial habits as well as mindset you can finally get what you want in terms of purchasing and investing power? How do I know? Well, even as a middle school student I was able to save for a ticket to South Korea, about $700, using some of the habits I am about to mention. And later on, in adulthood to finance several investment assets and create multiple income streams. If it is something for you, then be ready to shake your financial statements (if there are any) and move in the direction of wealth. If it’s passive income, how much do you need per month to cover all your necessities. If it’s an active income which comes from your job salary or business income, define the exact number you target. The same with your Net Worth and/or Company’s Worth. The first habit is obvious but so often neglected by the majority of people - stop spending more than you earn. It equates to both and private and business cases. Revenue is not the same as your net income (there are bunch of expenses in between) and your credit limit is not your pay check. Don’t put yourself in a trap of endless financial liabilities just for short- term satisfaction of your needs. Stop spending tons of money on ‘dream items’. How often have you, all of a sudden, decided to try a new hobby or come back to an old one and in order to start, have bought things you potentially need? For example, you decided to study photography and even signed up for an online course. But to be ‘professional’ you need a good camera, lighting, other equipment and accessories, in some cases even special clothing and shoes, etc. These are the ‘dream items’, because often, after you’ve bought everything, what happens - you’ve probably never even taken a picture, or you gave up the course or you stopped training after 2-3 visits, etc. So, a bunch of money is just ‘sitting’ in storage instead of working for you. If you need to raise funds to launch a business project or invest in any asset or simply pay off your debts, you need to be creative in terms of finding ways to earn the extra money. It can be a side job, it can be part-time entrepreneurship, it can be finding solutions for other businesses and being a connector, and so much more. Make it a habit to see opportunities to earn (of course legally and ethically) everywhere. Don’t settle down in your ‘financial comfort zone’. in order to be able to pay yourself first. And paying yourself first does not mean 100% spend on entertainment and fun. It consists of several categories, and for each category, consider opening a separate bank account or sub account (there are lots of banks that can open additional accounts with zero charge or even give you some incentives for it). The first account is dedicated to your investments and assets, in other words something that will bring you money (other businesses, property, financial instruments, precious metals, etc). The Second - education. The best investment you can make is in education which will open so many doors and opportunities. It has an infinite ROI. Another account should be dedicated to savings for big purchases (house, car, trips, holidays) as well as an account for personal treats - money you can spend on whatever you want. And of course, don’t forget about giving back and putting aside money for charity. The percentage of income you allocate to these accounts obviously depends on your earnings. But it should be around 30% of your net income that you spread between them. Try to raise this number through generating more income and cutting your necessities (monthly bills, liabilities). Another important habit is to regularly track your incomings and expenditures. There are plenty of apps where you can track your accounts including cash on a daily basis. And the most important part is growing your mindset. Shift it from ‘I can’t afford it‘ to ‘how can I?’ in order to focus on creative finances and income stream generations which change not only your personal but also business finances. Develop a habit to manage your money on a weekly/monthly (every time you earn) basis Valerie Prasetyo is a serial entrepreneur, international speaker, an 66 influencer in the women empowerment industry. She provides people with the essential knowledge and tools to become independent leaders, to build up their successful business and passive income streams to create life based on their own terms and conditions. Learn more about personal finances and how to reach your financial goals at: www.valerieprasetyo.com/programs 67