Winning in Your Own Cash Flow Game
I always heard the story that people keep complaining that they don’t have enough money to spend or don’t have any money left at the end of the month. They are living paycheck to paycheck. But to me they are considered the lucky one because many people are living credit card to credit card. Yes, they are having negative cash flow and have to use their debt to survive.
Actually in most cases, there is something wrong with their cash flow management. There must be something happening in their way to spend money before that caused this cash flow problem. The theory of the law of cause and effect applies here. If you want to know the reasons, you can refer to my article Reasons Why People Are in Debt.
Mind Your Own Cash Flow
If you read the book rich dad and poor dad before, you will know that one of the lessons that you need to learn is Mind Your Own Business. It is not about starting a business and taking care of it. In fact, the “business” here is your cash flow, your money and your future. Those are the important things for your life.
I always believe that if you want to success in your life, the first thing you must win is in your cash flow game. According to Anthony Robbins, there are 5 things we master and keep them in balance if we want to success. They are:
- Emotion Mastery – Master the way we feel
- Physical Mastery – Master the health of our body
- Relationship Mastery – Master our social life
- Financial Mastery – Master our personal finance or money
- Time Mastery – Master the time management.
As you can see, money is part of our success and it can affect other mastery too. Each of them is inter-related. I believe you have heard a lot of stories about how people ruin their relationship because of money or even loss control their emotion due to the debts.
So the conclusion here is Mind Your Own Cash Flow (Business) is the first step to success.
How to Become a High Net worth Individuals
Lately, I managed to get an audio course for a popular book; the Millionaire Next Door. This is a popular financial book. So I quickly spent my first week listening to the tape and learn from it.
The Millionaire next Door is a good learning material about wealth and wealthy people. The most amazing part of this audio course is it provides all kind of statistic and facts to discuss the spending habits, money mindsets and money behavior of the wealthy people. The course also shows us that most of the wealthy people looked ordinary and normal. However, the people who owned fancy car and biggest house, in reality are broke! They just look like a wealthy people and they are also the one who suffers from money problems.
Currently I almost finished 60% of the audio course and I get a big message that we should concentrate on our wealth instead of how much we make and earn or how many fancy materials we have. There are a lot of benefits becoming a wealthy people. So I quickly did some research on building wealth and I found a new terms for my mind – High Net worth Individual (HNWI).
What is High Net worth Individuals?
We all heard about millionaires, billionaires, rich people and their exotic lifestyles. However, recently, the term “High Net worth Individuals” is being used frequently to describe a person whose net worth is more than $1 million. This figure does not include the first piece of real estate owned by individual.
Needless to say, HNWIs know something about making money, managing money and growing their wealth. In fact, they accumulate their first million by sticking to some simple rules and formula. If you do the same thing, you also can become a High Net worth individual.
Federal Reserve Interest Rate Cut and Your Personal Finance
Last month was a busy month for stock market as Federal Reserve or the Fed made emergency interest rate cut from 4.25% to 3.5% due to the global plunge in the stock market. This is the first time Fed has changed the funds rate between the meetings since 2001 and this news has become the hot discussion topic for the media.
According to the news here, the Fed would cut interest rates again at its next meeting, on March 18. The interest rate cut has been made by Fed lately to help the US economy. You may read a lot of news on this. Do you really understand the true meaning behind the interest rate cut and what it really means for your personal finance?
The Role of Federal Reserve
Federal Reserve, also known as Federal Reserve System or The Fed, is the central banking system in United States. The primary job of the Fed is to control the inflation while avoiding recession. In a nutshell, it is a system to control the US economy.
All the banks in US are mandated to keep a certain amount of reserve balance in the local Federal Reserve branch office. This becomes the famous Federal Reserve Funds and the Fed has the power to raise and lower the interest rate for these funds. This interest rate will be charged on the banks if they borrow money from these funds.
