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If you are an entrepreneur, you surely know that keeping your finances 100% is very difficult. The term “entrepreneur” is often viewed as something that is fashionable and trendy, something that is simple and does not require much effort. But you have to know that the reality is that the entrepreneur has to struggle a lot with the flow and especially with his personal and business finances.
Jim Ron said that 97% of people are not happy with their jobs, do not save, do not have good relationships, do not have good control over their finances, and finally the majority have already thrown in the towel because they are not looking for a solution to their problems or Find .
However, there is a small percentage of 3% who is constantly trying to improve and go against the grain in all areas of his life.
Let me tell you that all entrepreneurs should strive to be 3% of the population doing things differently. And that means we have to take responsibility for how we build our financial life.
What percentage do you want to be yourself?
To achieve this, the first step is a very clear goal, because as I mentioned in the article on 5 steps as an entrepreneur, what is not measured cannot be improved. You have to think about what I want to do with my money. What is my financial goal for this year? How can I do more? What is my company’s billing goal? What do I want to use my money for?
After you have achieved your clear goal, you need to change your financial habits. I would like to give you the following recommendations:
1. Stop working for the weekend
Don’t move anything, on the contrary, set a date or day to work on. There are many people who leave everything to the end, and we all know that even if you say that you will do it over the weekend, you end up doing it without it.
2. Don’t live one step up
This is very important, you have to adjust your belt. Don’t buy what you can’t pay right now. Always try to live at your level and be very aware of where you want to go.
3. Research and learn
An entrepreneur must know absolutely everything and know what surrounds his business. You have to keep updating. The best battles are fought in known areas.
4. Have a clear goal
As I mentioned before, unless you have a clear goal, there is no path to your goal.
5. Don’t move the target
If you keep moving the target, it’s just the same as if you don’t have a target. You can never get there.
He then introduced you to a savings model with which you can implement them based on your financial goals:
Chests: financial model
This model will help you keep your finances in order, and I want to tell you that it applies not only to entrepreneurs, but to everyone who wants to improve in this area of personal finance.
The idea is to spread 30% of your income across the 3 chests, and for that you have to fill them individually.
Here I give you the example: if you earned 10 pesos, you would fill the first chest with 30 pesos in 1-3 months, after 3-6 months you would fill the second chest, which corresponds to 60 pesos, and finally it is Chest of dreams filled with goals clearly what you want a year.
Image: Courtesy of Kiperfy
Here I explain it step by step:
If you win 10 pesos, you should allocate 3 pesos to fill the first chest in a 1-3 month period. If you keep this river box full, you won’t be able to rely on anyone in the next few months.
The second is the emergency box and fills up after you have already filled the reserve or flow box. It ranges from the most liquid to the least liquid, ie 3-6 months of money in valuables such as jewelry, paintings, dollars or anything else that can be exchanged for liquid money at this time.
Chest number 3 is the box of dreams and desires and depending on your age you can invest your money aggressively or less aggressively. For example, if you are 30 years old you can risk 70%, if you are 40 years old you can risk 60%. This is because if you still live in your parents’ house, you have money that you do not spend on children, the supermarket, or any of these tasks. The older you are, the greater the responsibility, which is why you have to take fewer risks.
There is a sentence that I like very much that says that if we collected all the money in the world and distributed it evenly, the money would get into the same hands in a short time. And it means that people who have a lot of money can make more money again. People who have no discipline and good financial management will spend the money that will ultimately be in the hands of wealthy people.
Now it’s your turn, start small and make it a habit until your money grows.