Welcome to weekly series of How Do I Handle My Money?. It’ll be featured every Monday on a weekly basis. If you haven’t read the first four parts, please do so at the right side bar under “Favourites” =)
So in this series, I’ve like to show you what you can potentially accomplish with what we’ve talked about in the first four series namely ,
* Record And Plan Your Expenditure
*Take Action To Cut Un-Needed Expenses
*Pay Yourself First
Many readers may ask, What does all this leads to? What does this promises in the future?
That’s what we’re going to talk about today, in adam khoo’s secrets of self made millionaires , he touched on the 4 levels of wealth a person can accomplish , today we’re going to talk about the first level of wealth which is ,
Financial Stability
To achieve this, adam states that you need to..
*1* Achieve enough liquid assets to cover 6 months of your current expenses
*2* Enough insurance(life and hospital) for you and your family should anything untoward happen to you
Please note that the amount you “pay yourself” does not contribute to covering your 6 months expenses! That’s for your future investments.
Hence I would encourage all of my readers to aim for this level of wealth as soon as possible, it is akin to having your own “reserve pool” of cash, so that even in times of economic downturn, you have a “buffer” created to tide you through the possible crisis.
So now, it’ve be good to sit down in front of a piece of paper or a blank excel sheet and start planning how you’ll achieve financial stability. It may take you one year or two (or even more) and remember the journey of a thousand steps starts with the first – you gotta start somewhere!
Go ahead, take action.
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