For more than 20 years, Tom Sirois has endeavored to share
his insights on personal finance to help people manage their finances. He is
active on Facebook where he regularly engages his followers on money management
skills. His Yelp profile can also be resourceful for those who wish to follow
his insights closely. His experience in the mortgage and finance sector as well
as his in depth knowledge and skills in money matters makes him one of the most
respected financial advisors in the country. According to Tom, one should
observe the following personal finance rules so as to achieve financial
independence.
Come up with a plan
A comprehensive financial plan will go a long way to help
you stay grounded. It is in fact, one of the best ways to improve the quality
of your lifestyle. Be smart and start
exploring ways that can help you protect your assets and financial resources. That way, you can
reduce future uncertainties significantly. TOM SIROIS notes that you can avoid
debts only through control of your financial affairs. With a comprehensive financial plan, you can
avoid bankruptcy and depending on others for financial security.
Tom further advises that a comprehensive plan can also
improve the quality of your personal relationships. You can then have an easy
way communicating with anyone who may be affected directly and indirectly with
your financial decisions. As you develop a plan and see it come into fruition,
you will attain a sense of financial freedom. Your decision making skills will
also improve because you will have to make hundreds of money decisions
daily. With a good plan, your personal
financial matters should be able to address three crucial needs.
·
Spend – your plan should make it easy for you to
spend on things that matter the most. In other words, your plan should help you
to know when and how to prioritize your needs.
·
Save – what is left after you have taken care of
all pressing needs? Address this question then start saving. You should however
note that the best way to save is to have an automated system that can make
prompt deductions from your income and save some amount before you can start
spending.
·
Share – consider what you share as the surplus
from what is left after you have saved and spend what you need to.
Fulfill your goals
This can be easy if you have a plan that is realistic. With
such a plan, you should be able to set financial goals that can you can fulfill
without struggling. Tom advises that the goals you come up with should be
developed according to your current situation. In other words, be realistic and observe your
income and expenditure trends before you can set financial goals. The goals
should not deprive you your comforts or force you to live a hard life. You
should have access to quality food, decent housing and enjoy your social life
with friends and loved ones.
Once you have your goals in place, make a habit of reviewing
the goals on a consistent basis. This will help you note where you have tripped
and where you need to make prompt adjustments. In the end, you will find it
easy to fulfill both long term and short term financial goals.
Come up with
alternatives
These are Plan B’s. TOM SIROIS advises that following your
financial plan without alternatives is not a smart move. He notes that you should be able to analyze
and assess your plan so as to know what to expect each time you make a
decision. You may have to make rushed decisions which can easily have an impact
on your lifestyle and plan. With a good alternative, you will get back on your
feet without hurting your finances or without feeling like you have taken a
thousand steps back. He further points out that your plan B should be easy to
implement within a short time.
Day to day
expenditure
This has a lot to do with your spending habits. Tom explains
that your purchase power has a direct link with the rise and fall of inflation.
Therefore, your decision to spend on any time should be based on the cost of
that item and the kind of impact such expenditure will have on your plan. In a
nutshell, make purchases and spend on items that last. The items should also
have positive long term effects on your finances.
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