STEPS TO DEVELOP SOUND FINANCIAL MANAGEMENT SKILLS

To all my dearest visitors and readers,


Hope you find this article well and useful.


It is a popular belief that you need to stress your dollars only when the economy is in a crisis. However, the truth is that we need to embed financial management skills in our personal lives regardless of the state of the economic affairs. There is no way that you can avoid from dealing with money in life. As such, we need to realize and acknowledge the importance of this matter in our lives.


IN this article, I have listed some of the steps to develop sound financial management skills:-


1. ENSURE FINANCE IS AT THE HEART OF DEVELOPING YOUR VISION AND STRATEGY


Without such commitment, you will not only run the risk of flawed planning and poor decision making, but also fail to embed sound financial principles into the management of your daily life as a whole. Do not worry about making mistake as long as you learn from it. Always learn from the master who have a proven track record. Keep on trying out until you truly apprehend its implications in each different scenarios. Here, repetition is the key of mastery.


2. START NOW!


It is never too late to begin. Act now to kick-start good financial management in your life. No matter what the current level of your financial management skills, there tend to be potential - almost certainly huge potential - to improve.  You must want good financial management to be at your heart, be committed to it and be consistent in promoting and supporting its application. It takes time to build an empire, so do financial management skills. If you understand the compound interest implication, then you will know the snowball effect on money. Life passes quickly and you might need extra money for the unexpected and the long term. In light of today’s global financial crisis with its high rate of inflation, managing your money effectively has become exceptionally important than before.


3. REINFORCE THE BEHAVIOR THAT YOU WANT REPEATED


We must acknowledge and realize the fact that most of stuff we bought is based on emotion rather than rationale. As such, you must not be trapped into it so frequently that it becomes part of our habits. In order to overcome it, you must ask yourself seriously whether you really need it before buying. You must consistently put it into practice and through such repeated positive reinforcement, you will be amazed at its spectacular result.




4. DO NOT CONSTRUE IT WITH CUTTING BACK
Learning to acquire sound financial management skills also includes learning when you can make cutbacks. Before that, you need to scrutinize your list of monthly expenses and cut back those expenses which you do not need. Thus, that unspent sum of money may either go to your saving accounts or to reduce your loan. As a result, you will have more money to spend in the long term. Alternatively, you may use that saved amount of money to spend on higher quality product, which in term cost you less in the long run.


5. CONSOLIDATE YOUR LOANS


Debts can kill unless you can manage them well. If you are overwhelmed by debt, then consolidation of your loans is most likely to be a feasible solution to you. If you have a good credit rating and negotiation power, you will most likely be able to obtain a more attractive and reasonable interest rate from lenders. In this case, you must make sure that the loan with the lowest rate of interest be utilized first. To reap its fullest benefit, you must also match your payment schedule with your cash inflow. Ultimately, it will leave you with more money at the end of the month to either enjoy a good lifestyle or reduce your other debts.


6. TAXES : KNOWLEDGE IS POWER.


Pay attention to new tax laws. They are like a moving target - changing annually.  Make full use of the knowledge to your maximum advantage for instance you make sure that you claim all deductions that you are entitled. Proper tax planning also will help you to reduce your tax liability.


7.   SAVING - THE BEST INTENTION


It is always the best practice that we set a certain amount to our saving accounts. In this case, you are more likely to live within your budget while ensuring that a portion of your income is safely held in savings. You never know when some extra cash will come in handy.




8. KEEP IT FRESH AND CURRENT


This means regularly reviewing the skills to keep abreast so as fulfill tomorrow's needs. It means acquiring new ideas to use the present resources to improve your wealth.


9. KEEP IT SIMPLE


The key to success is being able to get things done. Its role and principles must be easily understood and the benefits clearly defined. Finance needs to be seen as part of your daily solution and not part of your problem.


So, practice the steps that I have given you and, not only will you gradually make progress. Ultimately you will be able to face the economic crisis with an increasing confidence. 


Please feel free to pass this blog to your friends who intend to pursuing sound financial management skills.


I WILL BE AWAY FOR A BREAK FROM OCT 9 -11 AND RESUME WORKING FROM OCT 12, 2009. 


Wishing you success,


James Oh

PS YOU MAY READ THIS ARTICLE AT OTHER WEBSITE BY CLICKING AT THE TITLE OF THIS POST

LEARN TO WRITE YOUR HURTS IN THE SAND AND TO CARVE YOUR BENEFITS IN STONE!

Happy day to you,

This is another interesting story which you will find it useful and beneficial.

A story tells that two friends were walking through the desert - During some point of the Journey they had an Argument, and one friend slapped the other one In the face. The one who got slapped was hurt, but without saying anything, wrote in the sand:

TODAY MY BEST FRIEND
SLAPPED ME IN THE FACE .

They kept on walking until they found an oasis, where they decided to take a bath. The one who had been slapped got stuck in the mire and started drowning, but the friend saved him. After he recovered from the near drowning, he wrote on a stone:

TODAY MY BEST FRIEND SAVED MY LIFE.


The friend who had slapped
and saved his best friend asked him, "After I hurt you, you wrote in the sand and now, you write on a stone, why?" The other friend replied "When someone hurts us we should write it down
in sand where winds of
forgiveness can erase it away. But, when someone does something good for us, we must engrave it in stone where no wind can ever erase it."

LEARN TO WRITE YOUR HURTS IN THE SAND AND TO CARVE YOUR BENEFITS IN STONE!

They say it takes a minute to find a special person, an hour to appreciate them, a day to love them, but then
an entire life to forget them.

Take the time to live!
Do not value the things - WHAT you have in life. Value WHO you have in your life!

" Happiness is not something you find, it's something you create…"

'Life Is Too Short To Waste Time Hating Anyone'

Now, you have read the story. It is your turn to pass off this blog to others who are pursuing health and happiness.

Seeing you again and have a lovely day,


James Oh

Love is Complete Trust and Faithfulness

Happy day to all of you,


Today I am going to share with you a small story, rich in content, which I believe that you will find it beneficial and interesting.


This Story begins…
A boy and a girl were playing together. The boy had a collection of marbles. The girl had some sweets with her. The boy told the girl that he will give her all his marbles in exchange for her sweets. The girl agreed.
The boy kept the biggest and the most beautiful marble aside and gave the rest to the girl. The girl gave him all her sweets as she had promised.

That night, the girl slept peacefully. But the boy couldn't sleep as he kept wondering if the girl had hidden some sweets from him the way he had hidden his best marble.
 
Moral of the story: If you don't give your hundred percent in a relationship, you'll always keep doubting if the other person has given his/her hundred percent.. This is applicable for any relationship like love, employer-employee relationship etc., Give your hundred percent to everything you do and sleep peacefully.

Do not keep it to ourselves, share it with others. Alternatively, you may pass off this blog to others who are pursuing  for health and happiness,

Seeing you again and have a lovely day,

James