Oprah Winfrey Quote

''Doing the best at this moment puts you in the best place for the next moment''

THE TOTAL MONEY MAKEOVER - DAVE RAMSEY

The total money makeover by Dave Ramsey is a helpful book on personal finance management and building wealth. This is a summary of what I have learned about total money makeover

A budget: In order to win with your money, you must set up a budget, a written budget, set up a new budget   every month.

Insurance: You must have insurance in some basic categories as part of a total money makeover

Auto and Homeowner Insurance: - Choose higher deductibles in order to save on premiums.   With high liability limits,   these are the best buys in the insurance world

Life Insurance—Purchase twenty-year  level  term  insurance  equal to  about  ten  times  your  income.   Term  insurance  is  cheap  and the  only  way  to  go;  never  use  life  insurance  as  a  place  to  save money

Long-Term Disability—If   you are thirty-two years old,   you are twelve  times  more  likely  to  become  disabled  than  to  die  by age  sixty-five.   The  best  place  to  buy  disability  insurance  is through  work  at  a  fraction  of   the  cost.   You  can  usually  get coverage  that  equals  from  50  to  70  percent  of   your  income.

Health Insurance

The Baby Steps

 “Baby Steps,” the premise of which is that we can do anything financially if we do it one little step at a time. “You  can  get   anywhere  if  you  simply  go  one  step  at   a  time”

Baby Step One: Save $1,000 Cash As A Starter Emergency Fund.

This   emergency fund is   not   for buying things   or for vacation; it is for emergencies only. No cheating. When you get the $1,000, hide it.  You can’t   keep the money handy, because it will get spent. Keep It Liquid

Baby Step Two: Start The Debt Snowball.

List   your debts   in order, with the smallest   payoff or balance first.  Do not   be concerned with interest rate or terms unless two debts  have similar payoff, then  list them with higher interest rate debt first. Paying the little debts   off first   gives   you quick feedback, and you are m ore likely to stay with the plan.

The Debt   Snowball method  requires   you  to  list   all   your debts   in  order  of  smallest   payoff  balance  to  larges t .  List   all your debts   except   your home;   List all of your debts —even loans   from   Mom   and Dad or medical   debts   that   have zero interest.

Use all nonretirement savings and investment to down your debt.

Baby Step Three: Finish The Emergency Fund.

A fully funded emergency fund covers   three to six   months   of expenses. You start the emergency fund with $1,000, but a fully funded emergency fund will usually range from $5,000 to$ 25,000. The typical family that can make it on 3,000 per month might have a $10,000 emergency fund as a minimum. Before using the emergency fund, back up from the situation and calm down.

Baby Step Four: Invest 15 Percent Of Your Income In Retirement.

Getting older is going to happen. You must invest now if you want to spend your golden years in dignity. Investing with the long-term goal of security is not a theory to ponder every few years; it is a necessity you must act now.

Baby Step Five: Save For College

In order to have enough for college, you must aim at something. Your assignment is to determine how much per month you should be saving at 12% interest in order to have enough for college.  

Baby Step Six: Pay Off Your Home Mortgage.

Never to take more than fifteen-year fixed-rate loan, and never have a payment of over 25 percent of your take-home pay. That is the most you should ever borrow.

Baby Step Seven: Build Wealth.

Money is   good for FUN.  Money is   good to INVEST, and Money is   good to GIVE. There are only three uses   for money:   FUN, INVESTING, and GIVING.  You cannot   claim   Total Money Makeover status   until you do all three.

WORDS TO LIVE BY

"Watch your thoughts, for they become words. Watch your words, for they become actions. Watch your actions, for they become habits. Watch your habits, for they become character. Watch your character, for it becomes your destiny" Lao Tzu

THINGS I HAVE LEARNED IN JUNE 2016

As we are almost at the end of the first half of the year,  2016 is a wonderful year with a lot of lessons learned through reading good books, Good websites, Blogs, watching YouTube channels, Meeting new people and New opportunities.

These are the lessons I've learned:

1. Don't try to Change People
Accept people as they are,  accept their strength and their weaknesses. Encourage them when they need encouragement,  appreciate what they do, and tell them that you do appreciate them,  it helps to build their confidence.
If you try so hard changing people they might develop resentment, moreover they will avoid you because you're hurting their feelings.

2. Early Awakening
Rise with the sun and start the day well.  We need a quality sleep to be able to wake up early. Ten minutes before and after you wake up are profoundly influential on your subconscious mind. You can end and start your day with prayers.

3. Be Present
Whatever you are doing be there,  put your mind to what you are doing. Either whether you are listening to a person who is talking to you give it all don't listen to reply,  listen to listen, show that you are listening and present. If you do it on your best or on  your worst people will notice.

4. Manage Your Finance
Control your finance,  live within your financial limit, have a simple budget,  Save your money for investment.
I have learned that the quickest way to get rich quick is not to get rich quick. Disciplined savings will outpace any investment scheme.

5. Personal Reflection
Take time to get to know yourself.  Think enough to thrive, take time to think. Get into the regular habit of personal introspection. Reflect on your day, what you've done and all that you've thought,  do an assignment, whether your activities and thought were positive in nature. If they were positive continue giving your precious energy to them as they would pay a huge dividend in the long run.
Figure out what's wrong and what is right in your days and in your life. There's nothing wrong with making mistakes. Mistakes are part of life and essential for growth. Just learn from them and be aware of them.

6. The Power of Spoken Words
Have a collection of words strung together to create a positive mind. Recite in the morning, noon and night . This practice is immensely effective in keeping you focused, strong and happy.
The word you say to yourself affect your self-image and your self-image determines what action you take.

7. Knowledge is Potential Power
Read regularly to have abundant knowledge,  do not read just anything,  you must be selective about what you put in your mind. It must be something that will improve both you and the quality of your life. "A book is a best friend of the wise"
Every answer to every problem you have ever faced is in books.  The answer and solutions are all recorded on the pages of books.
Read the right books,  learn how those who have preceded you have handled the challenges you are currently facing.

8. Find Passion in what You are Doing.
Passion is how you do what you are doing. All of your energy,  enthusiasm, innovation and creativeness in your work will determine the end result. If you do it half-heart You"ll achieve half result. Find a way to enjoy and have fun on whatever you are doing to make a living. Add value and you will celebrate the glory of work. Work is the man's best friend.

I am Looking forward to enjoying the second half of the year. Am excited for next moth as it's my birthday month, I hope I will learn a lot and grow spiritually, financially, mentally and academical. 

MAKING A SIMPLE PERSONAL BUDGET

Choices must be made concerning spending and savings. Can you afford another cell phone? Can afford to save? Can you afford not to save? Can you afford to invest? Can you afford to live at Masaki? You can find the answer to these questions. With a budget, your choices and alternatives become clearer, and you can learn to use money effectively.

Step 1 Know Your Real Income

List all sources of money you can rely on. Money sources may include allowance, part-time job, errands, and interest on savings. If you have a job, note all deductions from your paycheck.  Record only your take-home as income.

Step 2 List Fixed Expenses

Fixed expenses are set in advance and they must be paid regularly. Examples are car or rent payments, auto insurance premium and tuition. Many people include savings as fixed expenses because they regularly save a part of their income.

Step 3 List Flexible Expenses

Flexible expenses are necessary but changes with circumstances. Food, clothing, gasoline, cell phone recharge voucher are examples of flexible expenses.

Step 4 List Optional Expenses

Optional expenses vary and are not always necessary. They may include entertainments, personal care or school supplies.

Step 5 Total Income and Expenses

Compare income and expenses. Obviously, expenses should not exceed income. Most people cannot follow their budget exactly. One expense may turn out to be higher than planned, while another may be lower.  A consistent pattern of overspending suggests that the budget should be readjusted or followed more closely.

A Walk To Remember

 
You wake Up early in the morning, you don't have any plan of what you are going to do today because you have a lot in your mind and less or nothing in your hand.
  
You decide to take a walk, you don't know where the road will lead you but you Keep going because inside you there is a spirit of a winning person.
  
On your way you see a person who is desperate and lost all Hope of life, the winning spirit inside you keeps disturbing you and you win your battle by telling the desperate person you have to be Strong or you get walked on.
  
The desperate person gain strength and walk the talk.
 
You smile and feel the walk.

Does Your Business Plan Answers These 6 Questions

The right questions can give your company – and your business plan – the focus it needs. The answers can also give future partners and investors confidence in your venture.

1. What problem are you going to solve? 
Explain what you do, why it’s important and why it’s not available anywhere else.

2. Who are your customers? Who’s your market?
Explain how old your customers are, where and how they live, how they spend their time and how you anticipate they would use your product or service.

3. Why are you the right person to run this company? 
VCs and future partners will want to know what makes you uniquely qualified to run your business. Share your education, past leadership experience and your track record. Then share the same information for the other key leaders in your company.

4. What's your time table?
Investors want to know how their money is going to be utilized and when. Make sure your business plan provides a solid timeline of milestones, including growth and profitability.

5. What is your business model?How will you make money?
Explain if you’ll get revenue from advertising or subscriptions or if you’ll charge for upgrades and add-ons.  

6. What puts you ahead of your competitors? 
Know what you do differently from your competition. Are you faster or less expensive? Do you have more responsive customer service? Underscore what sets you apart.