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
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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
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