Thu 4 Aug, 2011 09:17 am
Hello My Friends.
I want to show you part of my book. It's translate. So, please read my book and tell me about errors, style ....
Any comments are welcome.
Thank you !
Ability to manage own capital is more important than any education in the world.
Money - a foundation of any economy, any society, any nation at any times. Yes, in different times money was repre-sented by different things from different material. It can be said that even when we trade one thing for another we use money as well, substituting it by some object.
According to the official history, barter was used before money on the planet. People just traded one thing for another. Though the value of thing was determined by many factors: location, time of year, political factors, religious and na-tional affiliation. Life is not possible without money, since if you possess any thing - food, water, land or anything else, then you already own money or its equivalents because everything can be traded for something else.
For example - a homeless man without a cent in his pocket. Has he any money? He has! He has clothing, some house-hold objects, empty bottles and so on. It means that he owns a product and, therefore, money. Of course the reader might sneer and say: - Who needs his dirty and smelly jacket?
It is true. But only in part, since the jacket can be washed and cleaned and will become a decent object for trade.
What idea am I trying to tell you? Very simple. Even those readers who think that right now they have no money are greatly mistaken! They have it and even a lot of it! Often you just can't see it!
Besides, 80% of people on the planet can’t handle money. Yes - money loves correct and smart management!
But even if you are not in your best financial shape, worry not! This practical guide will make a real professional in money management and accruement out of you! You don’t believe it? Try using advices and practical guidelines from this book for a week and you will be surprised by your results!
There are a lot of books about managing money. But all of them are initially aimed at earning and are written in a com-plicated and hard language. A man needs a short and precise guide so that each day he could choose an option which would increase his capital from the vast amount of daily decisions!
Thus - this first book will provide you with all necessary information in a nutshell. It will prepare you to become an investor. You think that you don’t need preparation? Almost everyone needs such preparation. Even those, who do everything right, need to return to these unshakable basics from time to time.
The second book will be dedicated to the process of investment but I do not advise you to read it right away. Advices described here are very important since they are the foundation. I particularly pay so much attention to these issues since many will want to go directly to the second part, but it will be a huge mistake!
Another moment - simplicity. Yes, life is very simple and the rules are very logic and easy. Many books and people themselves think that if its more complicated its better. No! Everything is easy. Life is simple and investing is also very simple. Therefore, everything you will find here - examples, rules, ideas - will be simple and understandable. As prac-tice shows, particularly such approach is most efficient and brings happiness and satisfaction to a person.
What other useful information this guide can give you? The chapter about psychology is one the most important chap-ters. Since the cause for 90% of money failures is the psychology of people. In this chapter you will read about how they cheat and use us, about how can you be your own enemy and many more.
What is the worst thing you can do now? Put this book aside, delete it from your computer or think that you will not find anything new and stop reading. Do not do it! This book is written for you and for you to be happy! No matter what they tell you, but the right use of material wealth brings happiness and satisfaction! It brings harmony in your life and lives of your dearest!
Important - each thing, situation and example has its own exclusions. And it is impossible to account for all nuances. Example: purchase of house for yourself is an investment into spending. But purchase of a house for renting flats - investment in income. Always remember it - thoroughly think and estimate your investments.
The one who thinks that luck and success lies in difficulty will make his luck and success difficult.
2) Most important money in the world.
Capital can be different. For someone it is knowledge, for someone material wealth, faith for someone else and all to-gether for somebody different!
Intriguing name? What money or its equivalent can be the most important? Dollar or Euro? Maybe gold or diamonds? No ! Most important money in the world is time! Yes, friends, time is money as well and most important money in biologic sense. All of us, want it or not, age. And how we spend our time determines what are receiving in future - pov-erty or wealth, health or sickness!
I’ll tell you more, time is your actual time machine! You don’t believe it? A simple example - if you will spend at least 10 minutes a day for sports, then, want it or not, but you will improve your body and strengthen your muscles. And after a period of time you will improve your health. Therefore, the activities you spend your time on, want it or not, develop in time! And that’s the time machine.
Our future life is determined by our actions in the past and present.
On what do you spend your time on? Work, home, television and internet? A little rest during weekend and back to work? If so - then according to our example, I can tell you who you will be in future. Seriously! Old age of an average man with little income awaits you. Is this all you want from life? You will say - where can I find time? If I will tell you that you have a lot of time? You don’t believe it? Do you remember the example with the homeless man? Even he, without a cent in his pocket, had many, and most important thing that he has no idea about, he has the most important money - time! However, there is one important limitation - he is not using it. Yes, almost 80% of people on our planet use time - money in incorrect way by just throwing it away.
And so - time is our most important money. Would we just throw away money? Will you flush a package of money down the drain? No? Strange, but you do it all the time with your own time! And you are loosing it constantly. When we are young, we don't think about how fast this time will run out. How wrong! It goes away quickly and we have to use each minute with maximum yield.
Let us turn to investing. You know that investing is an input of own capital with an aim to gain profit or benefit. Invest-ing is important for any man with any rate of income. If you have middle income or small income, then investing mat-ters to you more compared to a rich man. Those who have large income rates are better off, but still they need to con-stantly invest in their finances. Investing can be compared to forward motion, it helps to improve and strengthen present level. By the way, you can invest effort, attention, talent and many more.
What is the main conclusion we can draw from it? Think and say the answer quietly...
Conclusion - use your time to invest it in wealth and not poverty!
You want to learn a language or undergo some training? Spend time on it.
You want to become rich? Spend time on increase of wealth.
You want to become happy? Spend time on it.
Everything is much easier than it looks.
1) The most important money is our time.
2) You must use your time with benefit.
Spend your time on body - you will receive health, spend your time on money - you will receive wealth!
3) Beginning to manage own finances.
Money without control is like a dog without a leash.
Lets look at how money should be controlled. I will give you a helper for this task. Yes, he will keep you away from necessary spending and increase your capital by making you wealthier and happier. I want you to keep it at home and always remember. Ready?
Introducing the accounting - for own self and the whole family. Yes, yes, it is accounting. How important is it? It Is The Most Important! It is Control.
Control means profit, no control means losses!
I will tell you more - if you have no accounting and you will not start it - stop reading and burn this book. You have no reason to read on!
In its importance I was assured by my own experience. Before that I read about the fact that all successful businessmen do accounting not only of their companies but separate accounting for themselves and their families as well. I, as 80% of all dumb people thought that I do not need it and that I control my money and spend it only on most important things. Time proved me wrong.
I assure you that after introducing such friend as accounting in your household your life will change for the better! I did not dedicate a whole chapter to this issue in vain since I was shocked after analyzing my own accounting records.
Did you notice that every company disregarding the size, has its own accounting department? Then why do we use it so rarely in our private and family activities? It is a huge mistake! We can see our mistakes and needless spendings only due to control and only due to control we can see where we can invest our finances.
Home accounting allows to control own finances and therefore to control own life!
Good, now we have understood that it is necessary. Maybe some of you already have it. Next question - what form should it take? To answer this question we must think - do we want to control ourselves at all times even in small change or not? Would you want to spend 50% of the life time with nearly no control over your actions and activities? Or would you like to have total control - even in the smallest issues? I think that you chose the last option and if so then the conclusion is obvious - accounting must be precise. Many use only superficial version. For example in the field date - they just indicate how much money they have gained and spent during the day. And that’s it! This option is better compared to no accounting at all, but anyway it can be compared to the example where you do not control yourself.
I personally used this type of accounting in the beginning. But eventually I understood that it is not enough. I moved on to precise - where each small thing is accounted for. And then the real miracles started, I began to control my money flow, both inward and outward.
Perfect accounting is such where all nuances, even the smallest ones, are accounted. Don’t be lazy to take receipts in shops.
Make the accounting of daily income and spending your daily habit.
Nowadays there is an opportunity to purchase a computer program for home accounting. But in the beginning simple pen and paper will do.
Simple accounting - table of income and spending.
We will have simplified accounting aimed at showing you how and what to fill in.
How to control your income and spending according to it.
How to use it in day-to-day life.
We will analyze it here. If you will have an opportunity to use a computer software form home accounting - it is very good. If you don’t have it, do a little research, maybe you will find something suitable for you. By the way, do not buy the most expensive one. Firstly, there is a lot of freeware software, secondly - in the beginning you would only most simple and easy version. You can manage your accounting on paper or in Excel software. Don’t think that the more complicated it is the better it is, on the contrary.
Lets look at an approximate version of accounting.