Be financially literate!

The number one problem in today's generation and economy is the lack of financial literacy.

Alan Greenspan

One of your main goals in life, probably, is financial independence. You should aim for the achievement of that moment in life, when you have enough money to never worry about them. Today, financial independence is easier to achieve than it has ever been. The law of cause and effect applies to money. This law says that financial success is a consequence of the well-defined, specific reasons. Having found these reasons and put them in their lives and activities, you will achieve the same successes that have made hundreds of thousands and even millions of other people. You can climb to any level of prosperity, if you just do what others did in the quest for the same results. Perhaps no other area where universal laws would have been so obvious as in the acquisition and preservation of money. Your most hardened convictions for money first and foremost determine how much money you have collected for their working lives.

The money needed to buy houses, cars, clothing, toys, food and so on and so forth. Money have their own energy and are attracted to people who are well-treated. Money tends to aspire to those people who are most productive uses them to produce goods and services, and is able to invest in creating new jobs and opportunities for other people. At the same time, the money goes to those who use them incorrectly or spend unproductive ways.

Money gives you choices and let live the life you want. Money before you open the door, locked up in their absence. But the obsession with them, as, indeed, something else may be harmful. If a man so consumed with money, that forgets the simple truth that money - only a tool to achieve happiness, they bring him only harm. The Bible says: "The love of money - the root of all evil." It does not say that money - the root of evil. It says that the love of money - the root of all evil. The problem is it's obsession with money at the expense of really important things, and not money itself. Money - the foundation of life in society. And they are neutral. They are neither good nor bad. Their benefit or harm are determined only by way of their acquisition and use.

In our world, an abundance of money. These are sufficient to anyone who they really want and who are willing to obey laws that govern their acquisition. Find that you have a lot of money. You can have almost everything you really want and what you really need. We live in a lavish world and are surrounded by opportunities to acquire all we truly desire. Your attitude to money, "setting the abundance of''or" installation on poverty ", has a tremendous impact on the way, you will become rich or not.

People get rich because they decide to become rich. Because they truly believe in their ability to become rich, and they act accordingly. They always take the necessary actions that turn their dreams into reality. And always be on the man's actions determine his views and beliefs.

The money - a consequence, not a cause. Your work and contribution to the value of the product or service is the cause, but the money you get for it - the result. If you want to increase a consequence, you should increase the cause.

To increase the amount of money you receive, you should increase the value of work, which you invest. To earn more money, you need to develop their knowledge or skills, or improve their employment habits or work harder and for longer, or work more creatively, or do something that allows you to achieve greater efficiency of your efforts and get better results . Sometimes you have to do it all at once. The most highly paid people in our society are those who are constantly improving in one or more of these aspects, increasing the value of the work they do.

Financial security is one of the factors of success, which often takes much too high value. Regardless of how much money you make, success can not be determined by the number of U.S. dollars, in the end, what value have the money, if you do not have anyone to share them?

Prepare a detailed financial plan for several years, and follow him. If necessary, consult with an expert in finance. Proper financial strategy is very simple: put off 10% of your earnings (remove this amount from your paycheck before you spend it). If you defer $ 200 per month for 30 years at 15% per annum, you will have 1.4 million dollars. Reliable financial situation leads to personal freedom.

The growth of your material well-being will match your personal growth.

Not consulted on the financial issues with ruined people.

If you are found consistently for unpaid debts, take a rule to pay in advance.

You get on the fate of his subsequent appointment as your personal qualities will rise to a higher level and begin to conform more important tasks.

"Do more of what you paid, and soon you will pay more than what you deserve. This will take care of the law of increasing returns "

"Not in money happiness? But this money helps to find happiness, longevity, pleasure and peace of mind. "

Tactics multiplying savings simple: to learn how to save money and intelligently distribute it. The rich can become one, if it is saving part of wages. At the very least - 10 percent. The money is invested in investment should give you a year at least 12 percent. Keep this scheme, and you are sure to become financially prosperous.

    Money intended to ensure that they multiply, rather than spend.

The main function of money - to become greater. Money must work, and work for you and bring you benefit. If you'll just spend all the money from you, you will never be able to become financially independent. In this case, the money will manage you. Think about it: every time you raise wages, you just grow up inquiries, but money was always scarce. Live on one salary is not possible, no matter how much you earn. You will always want to buy a better car, apartment, villa, dress better, go to the more prestigious restaurants. In this case, you start to do more work, less time to spend with family, pay less attention to their hobbies. You all work harder, earn more, many more want to purchase and receive ... and again looking for new ways of earning. A vicious circle, is not it?

Delay

To become financially independent, to be deferred portion of their income. Every time you get the money, ask the question: "what percentage of that amount, I put it off?". Be sure to put off as much as you choose.

How many put off - depends on you. But it is recommended to delay at least 10% of their income, no matter how much you earn. Some of the most patient and goal-oriented individuals save up to 50% of their income.

Second step. Do not waste that postponed

Do not waste the money that you put off. Not under any pretext or under any circumstances. Remember that the idea to take from himself ( "I'll take today, but will return in a week") does not work. You will never recover the money, in this case again, the money will manage you.

Invest the money that you put off. Investing can be in:

    * Shares

    * Business

    * Deposit in the bank with compound interest

    * Other investors - intermediaries

    * Funds

    * Etc.

Remember that money should not be based simply this: they will eat, inflation, crises and other "amenities of life."

Before you invest money, do a thorough analysis. This is one of the most important financial laws. On examination of where to invest a certain amount of money you should spend no less time than you needed to have to earn that amount. Do not hurry to part with their money. You are too much work invested in it to earn them, and too much time spent on it to accumulate them. Examine the weight aspects of investment, before making any decision. Demand that you fully explain all the details. Try to get an accurate and complete information in respect of any investment.

Rules of investment:

Before making a decision in favor of some form of investment, must be clearly indicated what purpose it will help you to achieve. Investments can be for you an ideal way of forming a personal pension plan, the accumulation of funds to pay for the education of children or, for example, payment for the purchase of a good country house.

Remember: only invest in money market instruments put your investment into complete dependence on his behavior. To secure a conviction in the financial world, it is necessary to diversify the objects of your investments, optimally combining them in a diversified investment portfolio.

Nobody do not know for certain how the stock market will behave tomorrow. Therefore, expecting a better time for your investments, you risk losing active growth. Investing funds for a long time and creating savings through regular contributions, you will be able to cope with fluctuations in the stock market.

To the process of investment held for you as comfortable as possible, you must have an objective vision of the future of your investments in those or other assets. To help you in this will be professional financial advisers.

Remember that past successes can not guarantee you a consistently excellent results in the future. Increases in the stock market is not monotonous. Do not chase the best result today - it can not be established tomorrow. Stability of results over several years - that is the true criterion of professional portfolio manager.

Choosing Fund, it is important to understand what risks he is and what the expectations are based profitability. Making decisions without taking into account all the risks you may incur unexpected losses. Risk - it is also possible. Unreasonably overestimation of risk, based on emotional reasoning or prejudice, can not let you make the right decisions and achieve their goals.

First you need to define for themselves what you expect from the investment process, as well as the level of risk you are willing to assume in order to achieve this goal. Remember that any instrument with non-fixed income fluctuations inherent in varying degrees. It is important to determine the most suitable for your level of risk.

Choosing a strategy should be in accordance with the purposes of investment and to adhere to this strategy to implement them. Change strategy is only in the event that changed the purpose of investment. Moving from one strategy to another in an attempt to improve investment results, you will either take on excessive risks, or miss the moment of active growth.

For the most effective management of saving the entire amount should be distributed among assets with different risk levels. After all, money that "does not work", not only can not bring you profit, but inevitably exposed to inflation. Replace the money for a rainy day "investment in liquid assets.

Must be remembered that the unit trust - a tool much more convenient to manage than, for example, a bank deposit. It does not require you to fix the timing of investment and therefore you can concentrate fully on the implementation of your specific goals. Remember that investments in mutual funds liquid, and you can always fully or partially convert investments into money in your account.

Investment process, like any business, requires a professional approach and an appropriate level of training. Professional financial advisers will help you make the right decisions based on knowledge and experience in the stock market. With the help of professionals you can create a personal investment portfolio of a large number of tools available on the market and left to reach your goals.

Carefully investing money and allowing them to grow at a rate of compound interest, you will eventually become rich. Compound interest - one of the great miracles in the whole of human history and economics. Albert Einstein called it the most powerful force in our society. When you allow money to accumulate with compound interest rate for a long time, their number increases to a greater extent than you can imagine. To determine how long your money will double the number, you can use the so-called "rule 72". Simply divide the number 72 on the interest rate. For example, if you invested money under eight per cent per annum, section 72 on eight, you get the number nine. This means that you need nine years to double its contribution at an annual rate of eight percent.

The meaning of compound interest is that, to put the money and never to them not to touch. Starting to save money and bring them to growth, never, never touch them and do not spend them under any circumstances. If you do this, the law of compound interest would lose its force: to spend a small amount today, you are depriving yourself a huge amount later.

 To begin the process of accumulation, you must exercise discipline and perseverance. You must maintain devotion to a long period of time. Every great financial achievement is the result of hundreds of small efforts and sacrifices that nobody sees or appreciates. Achieving financial independence requires a huge number of efforts on your part. Initially, you will not see much change, but gradually your efforts begin to bear fruit. You will begin to stand out among your peers. Your financial situation will be continuously improved, the debts disappear. Your bank account will grow, and improve your whole life.

The more money you put and accumulate, the more of them you attract. Law of attraction has been described by more than five thousand years ago. He explains a significant share of success and failure in all areas of life and especially in financial matters. The money goes to someone who loves them and respects. The more positive emotions to cause you any money, the more you will have the opportunity to get them in even greater numbers. In the parable of the talents - the word also means the currency name in those days - Jesus said: "To everyone who has will be given and multiply, while not having taken away what he has." The modern version of this parable is as follows: "The rich get richer and the poor get poorer."

Your financial future is not determined by how much you earn and how much you have left and how much you save.