Increase Your Financial IQ Book Review ? Part 3: Budgeting Your Money
Posted by:After learning to make more money and finding out ways to protect your money, you next need to learn how to budget your money for maximum utilization.
According to the book, a budget is a plan to coordinate your most important resources (such as money and time) and expenditures. There are 2 kinds of budgets:
The reason most people are poor is because all their lives, all they’ve known is not having enough money, hence, they only have a plan for “budget deficit”. They have never experienced having more money than they could ever expect to spend. They think only lottery winners, corrupt politicians, or greedy businessmen can have a “budget surplus”. The key to having a budget surplus is realizing that it is possible for you to have it.
There are 2 ways to generate a budget surplus:
Both strategies will tip the equation to your favor such that your income will be greater than your expenses and you create that extra cash a.k.a. “budget surplus”.
Most people and businesses only know how to cut expenses, especially in these times of financial uncertainty. But you can only do so much in terms of cutting expenses without sacrificing your mental, emotional and physical health. You don’t need to starve yourself to create a budget surplus. If you apply Financial IQ # 1 – make more money, you can stretch the other side of the equation and achieve the same thing. The same applies to business. A business without sales is NOT a business. So aside from minimizing the costs of your business, you also need to learn to sell more and boost your income!
Robert Kiyosaki offers 4 tips to plan for a budget surplus:
Rich Money Habits Review Notes:
Tags: Book, Budgeting, Financial, Increase, Money, Part, Review