Author: Smart About My Money

Ultimate Guide To Attain Financial Freedom – Personal Financial Statement

Smart About My Money Finance

A personal financial statement is a layout for your financial freedom. Who doesn’t want to be financially free? Many people think that for it, one has to be good at numbers but, actually it is not the same. A personal financial statement assists you to understand where do you stand financially and what needs to be done to attain the financial freedom. It helps you to develop strategies to pace up faster towards your financial freedom. Personal Financial Statement assists a bank or any credit department to have a clear idea of an individuals’ financial situation in order to sanction the loan or mortgage application by the person.

Personal Financial Statement
Personal Financial Statement

The personal financial statement consists of two components – income statement and the balance sheet. The income statement shows you the amount of the cash flow in your life and the balance sheet gives you the idea of how much fortune do you have. Income statement is further bifurcated in two parts:-

• Income – It is the cash coming in your life.
• Expenses – It comprises of the cash going out of your life.

Balance sheet, on the other hand, is divided in two parts i.e., assets and liabilities. Assets are the component because of what you grow more income and liabilities are the one that make you spend more.

In brief, it is a tool that makes you understand the difference between your assets and liabilities so that you begin your journey towards the financial freedom. It will allow you to manage your finances more effectively and efficiently. So, if you still don’t have a personal financial statement, go for it today! Contact Smart About My Money by email at support@smartaboutmymoney.com

How to Manage Your Money with the Money Jar System

Smart About My Money Finance, Save Money

Saving and managing the money was never easy. With the money jar system, managing and saving money has become more systematic for the people. It has a strong focus on creating wealth and personal growth. When it comes to managing money, some people do think that it will end their financial freedom, but it’s just the opposite. It helps us to better carry off our income for our every financial need. Money jar system gives you financial freedom along with a carefree and happy life.

Money Jar System
Money Jar System

There will be many people out there who might be spending more than their income. This is money-mismanagement. Saving is the part that is done initially and not the amount that is left after the expenditures. To attain the financial freedom, you need to first learn money management that will help you to save for all your future endeavors and simultaneously allows you to enjoy your life and do the expenses that are a prerequisite.

T Harv Eker, the multimillionaire from Singapore, introduced the money jar system to the world. He gave a simple method, the money jar method, in which he states how to bifurcate the money in order to manage it. This money jar system is for everyone, whether rich or poor. Anyone can start saving with this system. Here are the six jars:

Financial Freedom Account (FFA):- In this account, you just put 10% of your income and try not to spend this money.  It should be a source to acquire more money. This amount will certainly help you when you will stop working.

Long Term Savings For Spending (LTSS):- Put 10% in this jar also which will let you to spend for the major future expenditures like buying a house, child’s education and marriage etc.

Education (EDUC):- Put 10% of your income in this money jar for your learning, interesting seminars and events. Learning makes us rich and not just the money.

Necessities (NEC):-  Put 55% in this jar that will cover up all your necessities like electricity & phone bills, rent, clothing, eating, traveling etc.

Play: – Then, put 10% in this money jar so that you can pamper yourself with this amount like going for dinner, going to the spa, or buying a new gadget etc.

Give: – Put 5% in your account jar which you can use to give away charities and donations to orphanages, old age homes or any other social community that needs our support and a little help. Contribute by ensuring to fill this jar.

Why wait? Give it a try right away. As this money jar system covers almost all the important prospect of our life, this is the best money management system. To know more about money jar system and money managing tips browse our website.