First Step In Getting Rich That Nobody Does! Magic Of Financial Statements

Do you know in the way to become rich, what the first step is?

Let me tell you about this secret!
As I have talked to different people about money issues and financial problems, I’ve noticed that they are not willing to talk about their financial life and they don’t want to share their story. Sometimes I have a feeling that I have to take a secret agent hat to dig through their words to find out what the real problem is and most of the time I fail because they stop talking.

But, I have noticed something else as well. People who have a very successful financial record and people who seem they have solved their financial problems and got out of debt and now are making money (either passive or… ), they are more willing to talk about money, and I mean not bragging!

What’s the story here?
I think people are scared or afraid of talking about money because they think if they are in debt and poor, it means they have failed in life exam just like school, and that’s true. People who are not successful in managing their money and Cashflow are the people who do not have enough (if any) education about money and finance. They feel embarrassed when they want to talk about money problems and it makes them feel more secure and happy just by not talking about it.

So, Here is the tip for you!

Go out and find a financial planner. They are very knowledgeable people (they will be your financial doctors) and they are very expert in finance and money management. Talk to them about your problems and how you ended up here. They will ask you about your debts and incomes, your assets and liabilities and all the details about your financial life and at the end they provide a financial plan specifically crafted for you. You will find out where you are and which way you should go, and if you follow your map you will definitely find your treasure somewhere along the way.

BE Mindful About The Money You Earn And Always Have a Good Plan For It.

Some People Have Asked Me: Financial Planner? Financial Statement? Do I Really Need It?
As I told you above about visiting a financial planner and organizing your first financial statement and how much this first step can help you in moving from poor side of the equation to the rich side. Here I’m going to insist on it. It’s like the time you go to a new shopping center and don’t know where to go. There is a big map in front of you with a big red arrow on it that says: “You Are Here” and then you can find the best way to get where you want to go. A financial statement does the same. It’s a map that show you where you are in terms of finance and money. Then you can plan your journey and find the best and quickest way to reach your goal.

Be sure to write a financial statement as soon as you can, but do not get stressed. You can write it yourself( maybe not as good as a financial planner but still it shows you some hints).

Try these 4 simple steps to write your first financial statement:

  1. Take a piece of paper or you can use a computer program like Excel.
  2. List all of your incomes. If you have a job, list the before taxed income (you will find out later why). If you have other sources of income like getting rent or a business or selling a book or…
  3. List all of your expenses. If you pay a home loan or gym subscription or your car service or… (your tax is an expense)
  4. Now balance in each column, add all the numbers and compare them.

Your income balance should be greater than your expenses or at least equal. If not, you are in trouble financially and you must find a way to balance it. You can cut some of your unnecessary costs like going to cinema every week or having dinner our every weekend or… or you may want to find some other form of income (which looks very harder)

These two simple steps won’t take much of your time and once done, trimming and adjusting it later will be much easier than the first time.

Do this and write your first financial statement and start gaining control of your life ship. It’s never late!

But, I still recommend visiting a financial planner and show him what you have prepared. A Financial Planner will be a great help to write a more sophisticated and well written financial plan specifically crafted for you.

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