Do you think that you are financially smart? How can you measure this? In this, we will learn everything just by the help of just 3 points. Their points are:-
- Household cash flow.
- Net worth and income.
- Retirement plan.
These three points will clear many questions and doubt regarding this topic. There are some
important points which can help you to find out this. First of all, measure your income and expenses
as well. To measure income you have to make a point regarding all your sources of income. It can easy for those who have a single source of income. It becomes a little tough for those who have some different sources of income. After making the list it is time to make a list of expenses. You have to make a perfect list of all expenses. Never try to ignore or left any smaller to bigger. All expenses you do must be covered under this.
The questions here rise again that, what are your household flows? It doesn’t just mean how much
money is coming home and how much is going out. But you have to also include those things which
can improve your conditions and situation. The availability of your assets what are your liabilities. All
of this factor will help you to find out. The assets include cash, savings, emergency funds,
investments, equity funds, or any source you have. Your car mortgage and other property in which
potential varies should be excluded from this list.
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You are also required to make a list of all debts, expenditures, and liabilities. This is in the term of
credit card balance or even credit card loans or debt or any other loans. The loans may be a student
loan or even a personal loan. Any types of loans you have come in the category of debt.
Understanding your net worth requires you and your family position. Whether you are in a position to get retire or path towards financial freedom or just how wealthy you are.
The last question and the very important question is, where are you in terms of retirement? Do you
follow the track according to your aim? Not to follow someone’s goal. Only your goals and plans
can help you to find out the retirement track. The goal or aim is different for different people. So
never try to follow someone else regarding this. It also depends when you want to retire and how old you are It depends on your choice at what age and after how much time you want to retire it also depends on your plans after retirement.
Do you plan to live a king-size life traveling all around the world? Enjoy the beaches of different countries with cocktails or just to live simple till death. There are certain other plans for people some people try to help poor people if they have a chance. There are many types of retirement plans available you have to select them according to your will. After that, you must try to achieve the goal.
For being economically smart doesn’t need any rocket science or a very trained mind. You just have
to understand some basic principles. Those simple principles could change your position. You
have to get motivated by the people who had already done it. There simple steps like
- Proper plan to retire.
- Work smartly and hardly.
- Cutting down your extra expenditure.
- Selecting a suitable retirement plan.
- Saving from initial days of earning.
- Try to work honestly and loyal towards your aim.
- Make your money to work for you.
- Do early investments.
Well, these are very popular and simple ways to achieve a good retirement. However, many more ways depending on the will and condition of the people. What you want to achieve indeed depends on your will power and love towards work. There are many problems whose solution lies within the problem. Some problems can be achieved from inner planning.