Understanding How Money Works

In the previous section, you learned how to build a system that taught you know how to pursue and live a life based on your dreams, values and passions. As we discussed at the very beginning of the book, it takes money to fund your basic needs like shelter, food, transportation and clothing — not to mention the pursuit of your dreams and passions. Money and the proper management of your personal finances will provide you the freedom to pursue the life that you have designed. Conversely, mismanagement of your finances creates a huge amount of stress and makes it very difficult to focus on the important things in your life. Like it our not, the way our economy and society is structured, personal finance directly effects your personal life and vise versa. Your financial plan needs to be in sync with your personal plan. One should support and complement the other.
 

In this chapter, you will learn the principles and strategies necessary to build a winning financial plan. In the next chapter, you will learn specifically how to build your financial plan. It includes a case study where you will see a financial plan in action. You'll learn exactly how to apply these principles and strategies in a real-world scenerio . . .