Tracking Your Spending to reach Wealth

 The major of spending may the food, cloth, electric, the gas, and gasoline. Perhpas you have other 

most people feel tracking spending is not important to tacking my spending. the important things is making more money. I believe it because i am a simple man. I rerely eating out and use brand name any fashion so i live in very low budget.

 

Some people feel they cannot decrease thei spending because thay have decreased all theirr spending. It's imposible to reduce the spending again. Well, though it may be uselles. you can try tarcking it.

 

There si some steps in Nerd wallet. I also consider the major spending. The major spending is food and beverages. most people use debit card to withdrawn the money. Off course they can note all spending. actually it is like pieces of cake.

 

Second step of tacking spending is categorize it. 

The major of spending may the food, cloth, electric, the gas, and gasoline. Perhpas you have other 

third,  build budget 

Budget is not easy to me. Creating budget meanig therea area rule 50.30/20 The half of your money allocate to your needs. and 20% first for your saving. and 30% for wants. 

Fourth, usde budgetig apss

some budget app is good some is not. clevery use the app. I just use the traditional way using the notes. 

After budgeting, we should monitor it regullary. is the psnending beyong the budget. 

The seven step is the ways to lower your expenses. Perhasp there is a little bit spending that we can save. other ways , we can save money using the discount ? 

The last is the difficult step. i have no idea to make money today. however i should explore to make money. 

Five Elements Financial Goals

The Financial goals is an essential element in financial planning. The goals should have at least five element or ingredients. Here are the elements:

1. Create wealth
The aim of financial goals is to make the people wealth. They can create wealth with some ways. Most people prefers to work for the boss. They can shows the boss that the company deserve to pay they more. They can choose any company that promise high salary,
Some other prefers to open a business due the business can make more money than working as an employee. Some of them are success in business.
2. Maintenance wealth
If you nave reach the wealth, you have to maintenance it. Manage the money that come from your boss or the business well. The money that come to you or cash inflow should be balance with the cash outflow or spending. List the spending for the next month completely. The spending must be lower than the income so you can invest the money or save the money.  
3. Increase wealth
Our jobs is not finish when we have reach the wealth. You should not satisfy when you just get $ 30,000 a month. You can also increase the money to a hundred of thousands. The employee can ask the boss promotion or the business man can add a new store so they can generate more money. A business man can try other business. Example: They can open a car workshop.
4. Protect wealth
Some people may protect the wealth with insurance. The life insurance can help the family survives. The health insurance can protect from hospital fee that is very big. The sick will not disturb the wealth again.
I prefer asset allocation than the insurance, due it is cheap. In asset allocation, we do not have pay the premium. We alone determine to put the money to various asset. Do not put your money at financial asset only such as stock, bond, mutual fund, derivatives, and other. You can put your money to real asset such as land, property, and else

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How to increase net worth

People try to increase the net worth that depict the wealth. Net worth is the difference between the assets and the liability. A rich man may not have high net worth if he or she borrow money to buy asset. Off course, the high debt makes the people or unwealth. Example, Mr. Jordy has luxorious car, and big house but he lease the car. Each month, he has to pay two hundreds dollar while his salary is only $ 2,500. Meanwhile, his neighbor Mr Jones has no car. He just got $ 1,000 from the business but he has no debt. He has paid the house previous years. Though Mr Jones salary is lower than Mr Jordy, Mr Jones has higher net worth.
The higher net worth, the more rich people. There are some ways to increase the networth:

1. Increase the asset
This strategy is good for people who cannot reduce the liability side. They should work hard to increase the asset side to balance the liability side on the right.
Increase the cash stream by working for other company, opening a business, selling stuff at internet, selling the stuff at the garage, and so.
You can also increase the house. Buy some house and hire those house to the renter. The renter can pay the rent expenses each month or each year.
Beside buying house, you can also buy other aseet to keep your value of money. Buy some productive asset to increase your networth. Some plantation or livestock can make you money. The plantation can produce fruit and cereal and you can sell it to the market.
2. Decrease the liability
This strategy is fit for someone who cannot increase the asset. They have to decrease or reduce the debt so it can lift the net worth. Try to decrease the useless liability such as plasma tv, luxorious car, and other.
Settle the debt as soon as possible. Use your asset to pay the debt with interest. The high debt decrease your net worth and it may reduce the asset. 
3. Increase the asset and reduce the liability
This strategy can increase your net worth fast. Surely, everybody can do it but the result may vary.  Despite you have much money, you do not spend it for luxorious things. They prefer to save or invest more money to make other money. As consequently, the asset may increase because the asset can generate money.
Our investment such as stock, mutual fund, or ETF price might increase. When we sell the investment, we will get money.