| Creating your own personal wealth, from | | | | good financial plan (but this is by no means |
| whatever means of income you enjoy, requires | | | | th only one):1. The money you are currently |
| knowing where you're going, and accounting | | | | investing or putting into your savings |
| for your own personal finances. It is | | | | account every month, divide the total of it |
| essential to know what you are worth - your | | | | by 3, then - 2. Pay off one third of this |
| assets and liabilities - and Owner's Equity - | | | | money every month to your outstanding |
| before you can start to develop a good | | | | debts.3. Pay one third of this money and |
| | | | deposit it in your savings account at your |
| financial plan to create wealth. In the | | | | bank. This will accumulate into a pool of |
| world of accounting Assets = Liabilities + | | | | money for your monthly needs. Over time you |
| Owner's Equity so this is what we have to | | | | can use it to finance your family's future |
| establish now.Firstly you have to work out | | | | needs or apply it to the goals of your |
| what your assets and liabilities are, then | | | | financial plan.4. Pay the final one third of |
| you can calculate your Owner's Equity. When | | | | this money to buy 1-5 year Certificates of |
| you know what you are worth, developing a | | | | Deposit, but save up until you can buy CD's |
| financial plan to reduce your debt and | | | | of $1000.00 every time you invest. Do this |
| achieve your financial goals is the frst | | | | buying at one CD every three months to six |
| | | | months, but ensure you keep enough cash in |
| step to personal wealth.Step 1. Calculate | | | | your checking and passbook savings for any |
| the amount of your outstanding liabilities | | | | emergency.The biggest barrier to financial |
| (or money you owe). This means you write down | | | | success is large credit card debt and not |
| in a list exactly how much you owe right now | | | | paying it off as quickly as possible. By |
| on | | | | following these tips you will pay off your |
| | | | liabilities in an appropriate manner. By |
| your mortgage, credit cards, and any other | | | | investing in 1-5 year CDs you're earning |
| bills or loans.Step 2. Now make a list of | | | | interest and compounding your money by |
| all your assets (dollar value you would get | | | | purchasing more CDs at definite intervals. |
| for these if they were sold). For example | | | | Compounding is very powerful.It is also |
| your cars, home and cash you have in the | | | | suggested when you've enough money saved up |
| bank - list all your major assets.Using the | | | | in your normal savings account, you begin to |
| Assets = Liabilities + Owner's Equity | | | | speed up your mortgage payments every month. |
| equation we gave you before, calculate what | | | | Most mortgage lenders allow extra payments |
| you are worth. Most financial or credit | | | | per month but check this out with your lender |
| advisers agree you need to allocate money | | | | before you increase your payments. If they |
| every month into responsible saving, | | | | do, start paying extra every month and you |
| investing and paying down your debts as | | | | will build equity in your home faster, save |
| crucial part of your financial success. It's | | | | on interest charges and complete the mortgage |
| not enough to just put money in the bank when | | | | much sooner. This financial plan is only one |
| you are also carrying a credit card balance | | | | of several, but these principles are basic |
| because you are losing the benefits of any | | | | and necessary to reduce your debt faster and |
| interest earned on your savings.To increase | | | | build wealth for you and your family quickly. |
| your Owner's Equity you must pay down your | | | | It will also help you acquire spending, |
| liabilities and avoid borrowing more money to | | | | saving and investing habits that are |
| buy more assets. It's dificult sometimes to | | | | conducive to your personal wealth |
| stick to this plan when there's advertising | | | | creation.Author: Carmel Muggeridge. Carmel |
| in your face all the time to buy this, buy | | | | is an online publisher, and owner of a |
| that and buy it NOW! - the "must have | | | | website offering a wide range of the credit |
| everything now" attitude. But you must stay | | | | card options - Rights Reserved. Article may |
| with your financial plan if you want success | | | | be reprinted as long as the content remains |
| and personal wealth.Here is an example of a | | | | intact and unchanged and links remain active. |