If you don’t have the money under control, then the money is in control of you, so it’s important that you start building wealth today. Because we know how important it is that you do not have to worry about money, we are writing this blog so that you can start building capital today. Don’t make it too complicated for yourself. Start small and just do it. So you can go for the Evergreen wealth management. So valuenetorksandcollaboration.com Track record can show that it is not.
A big mistake we see a lot of people make is that they think they need a lot of money to build capital. But that is precisely not the case. It is about developing a system for yourself with which you consistently and structurally make a plan to build up capital. Building a little bit of capital every month suddenly pays off a lot. That is why you should start today.
Develop Your Money Management System
To start building capital, it is important that you develop a system for yourself: a money management system.
A money management system is a system in which you divide the money over different pots with an iron discipline, based on percentage.
This is the basis for creating financial freedom. Everyone has a different definition of financial freedom. In my view, financial freedom is when you are not limited and feels limited by your financial status. This feeling is of course subjective and also depends on your expenses and needs. This of course depends on whether or not you have a need for luxury.
How Do You Start With A Money Management System?
You open different accounts and then you divide your income over different pots. Instead of spending your money like a headless chicken, now divide your money over the jars. You can decide for yourself how you are going to divide the different percentages. These percentages may shift over time because you topped up your emergency fund.
Fill Your Emergency Fund
The first steps you can take to build up financial freedom is to set up an emergency fund. This is a fund for yourself that you will use when things go ‘wrong’. If you have no income for a while, you can use this fund to make a living. This fund is in a separate account, where you only arrive in emergencies.
The number of months you want to live from your emergency fund is different for everyone. This depends on what you are comfortable with. What are your monthly costs? Know this about yourself. How many months do you want to feel safe? Know yourself. Are you prepared to take risks or are you prepared to take less risk? However, it is my suggestion to have at least an emergency fund of six months with which you cover your fixed costs.