16 Money Principles That will See You Through Thick And Thin

We all desire to live comfortably through our working life and to retire into sustained comfort when we become inactive due to old age. Even in the challenging circumstances of inactivity induced by illness or accidental incapacity, the expectation of reasonable comfort does not diminish. The reality, however, is that maintaining a comfortable lifestyle necessarily costs money, which unfortunately, is not freely available. Building sustainable financial capacity is hardly a chance occurrence - it is programmed and worked for. So, if you are hoping to live a financially stable, fulfilled and comfortable life, you need to get programmed early for that success. This article provides a foundation of sixteen proven financial principles that you can leverage to achieve financial success.

1. Start Early
You want to get a grip on your finances? Starting early is a golden rule. Time, remember, is money and shouldn't be let slip. Time also nurtures your investments and the earlier you engage this process, the better for you. You not only boost the potential for investment growth through early action, you also position yourself to act more courageously in view of the ample opportunity available for remedial action, should anything go wrong. Timing is also critical to actions you take when opportunities emerge that can advance your financial standing. When you fail to act promptly, opportunities slip away and you miss the chance improve your financial position. Now is the time to begin to work for your financial success.

2. Articulate your Perspective on Money, Wealth and Success
You should be clear in your mind what money represents to you as you don't want to be buffeted by everybody's views on money. Is money an end to you, or just a tool for service to humanity and for sustaining yourself? If you want wealth for its sake, you'd probably do anything for it. Your quest for financial success should however be rooted in and aligned with your personal values and principles. It is also important to come to terms with the reality that your financial success depends principally on you and what you do. Buck-passing will never help. However, trust that the principles and systems that can empower and leverage you to financial success are learnable, if you apply yourself to that pursuit. You simply need the will and commitment.

3. Urgently Seek And Acquire Financial Literacy
Understanding financial success principles will empower and prime you for financial breakthrough. Your basic education and training are not enough if they don't condition you for confronting the financial success challenges life presents. The tools of financial management can accelerate your success, but you can't deploy them if you don't have the knowledge. Fortunately, sources of financial education are not hard to come by. This website is committed to teaching those principles and providing other tools that afford you the life-changing knowledge and information. So are many other websites, financial magazines, books, newspapers, TV programmes, seminars and numerous other channels. The opportunity for learning is practically limitless, except for the individual that chooses to remain in darkness.

4. You Need a Financial Plan
To get your personal finances into shape, you need to get organised about the process, and above all, you need a financial plan. Your financial plan will articulate your destination (long term goals) in specific terms and define your action plan for achieving the results you want. Having a powerful plan will inspire you and provide the impetus to achieve specific milestones. Don't try to coast through life, without clear, specific goals or a defined means to achieving them, because, that way, you will only be courting failure and financial trouble.

5. Build Your Earnings Capacity
When you set financial goals, you need a viable vehicle to ride to your targeted destination. Or, better still , a set of vehicles. Simply put, you need to keep growing your earnings capacity.Your choice of how to achieve this will depend on your interests, passion, skills and experience. Some options will include acquiring specialised skills (become an expert in some marketable field), boosting your contribution to and relevance in your organisation if employed (you will earn more when you become 'indispensable'), building a business or developing other channel(s) for passive income. Whatever options you prefer, your goal should be to earn your worth for the time and effort you invest. So, hone your skills to be a big earner. While what you earn will not automatically guarantee ultimate financial success (it could all be frittered away), earning meaningful income provides a strong platform for building financial independence, if you engage the resources wisely.

6. Develop and Operate a Budgeting System
A budgeting system ensures that the application of your earnings is based on a careful allocation which takes account of your financial goals and financial plan. A budget compels you to think through your spending profile and to deliberately justify the inclusion of any expenditure item. It also affords you an opportunity to evaluate your earnings to see if more spirited effort at increased income is imperative. A budget identifies your income sources and defines how much of this will be applied to purposes you have elected as your priorities. Build a habit of drawing up a budget because it is the basis of financial discipline which you need to succeed. An annual budget will provide an overall plan for the year but requires monthly breakdowns to allow you closely track the use of your monthly earnings. Good budgeting is complemented by a record of details of income and spending.

7. Nurture a Savings Mentality
A habit of saving is not so easy to cultivate, as important and fundamental as this is to financial success. The reason is simple: saving entails sacrifice, a decision to deny self or one's dependants, albeit for a superior purpose. Immediate gratification is a more natural choice for many and often people experience an impulsive and compulsive urge to satiate their immediate desires. When you seek financial growth, you can't afford to run riot with spending. In fact, you need a deliberate savings plan that ensures you save and save and save. You've got to clearly and firmly decide what proportion of your income to save on a regular, consistent basis. This has often been referred to as paying yourself, which should be the first claim on your income. If you develop a strong savings mentality, you are also likely to save every windfall that drops on you - bonuses, winnings, gifts, etc. Always weigh the benefit or pleasure of immediate spending with the potential value of an investment alternative.

8. You Must Invest
Learning to invest should be a logical follow-up to your budgeting and savings habits. The earnings you set aside should be carefully channeled into sound investments. Seek professional advice, if you have to, but ensure that what you save is ploughed into investments that offer the potential for reasonable returns and, more importantly, significant growth over time. You must therefore learn to seek out quality investment outlets with growth potentials. Strive too to invest with regularity (no matter how little) and as much as possible, to re-invest the earnings on your investments. Any retirement benefits scheme, if you work, should be driven to full advantage. Diversification will help to cushion risk, so you need to include achieving a diversified portfolio into your investment plan. This includes retaining some investment (you determine the appropriate ratio) in relatively liquid instruments to meet emergency funding requirements. You may also take advantage of age and get a bit aggressive to target higher returns. Much later in life, this will likely become less attractive, so now may just be it.

Copyright © 2006. Acceler8now.com. All rights reserved.

If you would like to receive coaching for launching and growing your online business or advisory support for building your offline small business, Acceler8now.com will provide the hand-holding to ensure your success. Contact us now for more information or visit www.acceler8now.com for online resources.