Quick Budget - Financial Independence - Part 3

Hello to the entire PH community. Today we are going to continue with the topic of introducing yourself to financial independence. You can read the previous articles here:

Part 1

Part 2

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Today's topic is called “quick budget” . This is a good way to organize our priorities and really know where we need to spend our money.

We discussed this in article number 2 on compound interest, in order to use this formula correctly, we must have a clear budget. Have control of our income and expenses, know exactly what is happening with our pockets.

To get to this, the first thing we have to do is know what each and every one of our income is, be it passive or active. That is to say; you have a salary from the work you do, but for example, you may have extra income, let's say that every 20 days you receive $ 20 from an investment you made. Then your salary will represent your active income and your investment the passive income.

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Knowing this, you must now collect each and every one of your income. See what investments you have, what interest you are generating in your bank account or what other income you can generate. Once you have this clear, total your income.
After totaling your income, you must now total your expenses no matter what the expense is.

From the candy that you like to consume, to the basic services that you must cancel. You have to put absolutely everything, know your spending habits, if, for example, you go to a candy store 3 times a week and always buy a cookie, also write down the grocery, you can't leave anything out. This is very important.

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Now having a total of your expenses and income comes the part of eliminating unnecessary expenses. Among all the expenses you have, you must separate them by priority. For example, food and basic services. If you have children, you must have a section for your children, school, medicine, insurance, etc. Depending on how you live, you will have different priorities than others.

But here comes the difficult part for many people, in general, many impose expenses that seem to be priorities but are not. Be careful, this does not mean that you are going to stop enjoying or spending money on things that you like. But this way you will realize where you are spending your monthly money, and perhaps you will find an expense that really does not have any priority importance.

Sincere with yourself and having done this, you are now ready to implement your budget fast. You already have a clear idea of ​​what your cash flow is like. This way you will know more clearly how much you can spend on the compound interest formula and begin to see how your income increases.

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Remember that more money will not solve your money problems. Money problems come from the wrong concept of money and a poor internal management of our emotions. Financial independence does not come with a magic formula for a business that becomes a millionaire within three days.

The quick budget and compound interest are two real ways to increase your monthly income, based on organization and discipline. They are not a mysterious business, it is something that if you put it into practice you will see results.
In the next post we will talk about a very interesting concept, the consciousness of money.

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Alejandro Aristeguieta
Junior Ambassador in Nutbox
CEO in Trading Capital - Investment and trading conmmunity on Steemit