Today marks a milestone in my life for deciding on making some investments. I came across this one which helped me into finally landing on one. For my #DIYMonday post, allow me to share these steps from the lifemanagement4filipinos.weebly.com for you to have a way to review your financial status. It is in the website's appendix.
"How Financially Healthy Are You?
The Lord will grant you abundant prosperity... The Lord will open the heavens,
the storehouse of his bounty, to send rain on your land in season and to bless
all the work of your hands.
You will lend to many nations but will borrow from none.
Are you financially sick or healthy?
It depends on how many steps you've taken towards financial health.
As a way of review, I will share with you the Six Steps to Financial Health. If you notice, I put a Step #0 because this is a faith act. How can a poor person give? But that is the challenge. When he becomes generous, he attracts more generosity upon his life. Here they are...
Step #0: Give to God a Monthly Love Offering (Start with 10 percent)
This is the purpose of money - to use it for love. And tithing is the "training wheels" to learn how to do this. Each month, set aside a fixed percentage of your income to God and the poor. And be open to the blessings that will flow to you.
Step #1: Free Yourself from All Bad Debt
List down all your bad debts and declare when your Freedom Day will be. Never borrow for anything that doesn't put money into your pocket. Renegotiate with creditors if you have to.
Step #2: Increase Your Income and Start a Sideline
Grow yourself, your skills and your abilities. In your job, be known as someone who works fast. Always get more responsibilities. ("Sir, I finished the project. Is there anything else you want me to do?") Your boss will be forced to promote you. And sell something on the side and keep on learning.
Step #3: Get Protection (Insurance) Equal to 10 Times Your Annual Expenses
Your goal is to be self-insured. But while your investments haven't reached that point where your passive income is equal or greater than your expenses, you need to buy insurance.
Step #4: Create an Emergency Fund in the Bank Equal to Six Months' Expenses
These are for your daily expenses as well as unforeseen expenses. Having an Emergency Fun prevents you from dipping into your long-term retirement fund.
Step #5: Create Passive Income via Businesses and Investments Equal to or More Than Your expenses
This is financial freedom. It is the place where, even if you stop working, you can still live your present lifestyle.
As you take one step after another step, you gain in financial health.
Friends, this book is only a start of your exciting journey towards material and spiritual abundance.
Keep learning. Read books on money. Attend seminars on money. Get mentors and financial coaches.
Remember: You create your future by your choice today!"
1. RICH DAD, POOR DAD - click to check out why this is one of the 21st century's best books about finance, money and saving.
2. PARADIGM SHIFT - what I did when I learned the power of compounding interest, the 8th wonder of the world
3. A STEP BY STEP GUIDE TO SUCCESSFUL STOCK INVESTING WITH EIP COL EASY INVESTMENT PROGRAM - click for a simple way to know about stocks and mutual funds