PRINCIPLE 4: THE PRINCIPLE OF HAVING A LONG-TERM PERSPECTIVE This principle relates to how you build your financial house. Building a solid financial capital requires not only a solid foundation but also a strong structure that balances the immediate, short-term and long-term needs to enable you pursue your goals as well as weather a variety …
While debt is one of the means of meeting financial needs, it definitely is not the only way but it is one often misused. Debt enables you to enjoy a purchase now as you pay for it later. Debt creates an illusion of prosperity to both the borrower and observer due to the visible display …
The statement ‘cash is king’ is commonly used in the business world to signify the importance of having resources in cash form that can be deployed immediately to meet financial needs. Without liquidity: the ability to meet financial obligations as they fall due, businesses collapse irrespective of their asset base and profitability status. Similarly, most …
WHY SPEND LESS THAN YOU EARN You probably have heard the statements “spend less than you earn” or “live below your means” from various sources. While they may sound obvious, many people struggle to apply the principle in their finances. Yet, all other money management principles are effective only if you set aside some of …
The principle of spending less than you earn resonates with many people. The challenge usually is applying it to personal finances. People cite varied challenges such as lack of a clarity in developing a financial plan, lack of confidence, high amounts of debt, low incomes, peer pressure and lack of patience. Borrowing from the example …
PRINCIPLE OF GIVING Sharing your financial resources is a critical aspect of managing your finances as it helps you put things in right perspective. As you apply the principles, your financial position will improve, you will weather the financial storms with ease and you are likely to create a surplus. At this point, you might …
According to Google, a principle is “a fundamental truth or proposition that serves as the -foundation for a system of belief or behaviour or for a chain of reasoning”. Simply put, a principle is a belief that guides thinking and ultimately behavior. What is your belief regarding your financial wellbeing during and after COVID-19? It …
