Three important Tools of Personal Finance

To achieve financial independence and freedom as outlined in our previous posts, it is crucial to learn 3 key tools and apply them all in harmony in your day to day life. These are:

1. Budget – spend less than you make, so that you can save more. Invest your savings in assets to get you more income;
2. Balance sheet – own more than you owe. Learn and understand the difference between assets and Liabilities. This is important key for your cash flow (income); and
3. Life plan – know what you want, what are your life goals. Write them down; make plans how to get it. Focus and act inspire of fear or circumstances (that is called faith). Remember you aim at nothing and you will achieve it. The contrary is also true.

Our upcoming posts will detail these 3 tools, and give practical examples of how you can apply them to your life.