Archive for wealth

7 Fundamental Footsteps To Finding Financial Freedom

Achieving Financial Freedom – providing for yourself and your own family is certainly not easy, but independence has its rewards. It astounds me every time I encounter someone who takes pleasure in being dependent on someone else or worse, the government.

As soon as I graduated high school, I left home to go into the Navy where I would start providing for myself.  In fact, I enlisted in the Navy in October of my senior year.   I love my folks, but being dependent on anyone, including my parents was just not something that had any appeal for me.

These days, it is common for adult children to continue living with parents indefinitely.  They may move away for a while, then boomerang back home to enjoy the life of dependence.

Financial Freedom begins by achieving a state of Self-Sufficiency, being free from dependence on another for your basic needs. Sometimes there are good reasons for returning home. It is good to have parents that can assist for a while, but not when there is no effort to return to an independent life.

Break Free From Dependence

Maybe you have found yourself at the point where I was many years ago.  After serving in the Navy for about ten years, I was not earning enough to support my growing family without some assistance from the government.

You can read the long story of how I got to that point and how I recovered in Who is Responsible to Provide Basic Needs of Americans? That post laid out the problem and referenced next steps. This post should be more of a challenge to take the next steps toward independence and gives you clear steps to that end.Whether you are dependent on the government or on your parents, it is time to plot a course for self-determination and self-reliance. Click To Tweet

Now, if being broke and dependent on the government or someone else describes your situation and you are ready to start on your path to financial freedom, this article is written for you.

Don’t give up hope.  There is a way out when it feels like there is no way out.  It might not be quick and it may even get darker before dawn. Read More →

Your Commitment In Advancing A Strong Economy

What does it mean to make the economy strong or weak?  In what way are you participating in making your country’s economy stronger?

Economic Fundamentals

The Economy is talked about as if it has a life of its own.  From the news reports, you might think that the economy controls people’s behavior rather than the other way around.  The truth is that actions and beliefs of the members of society control the economy.  Individuals earning and spending determines whether the economy is growing or declining.

Let’s bring that concept home.  As an adult member of society, you participate in the country’s economic health by earning and spending money.  In order to earn money, you exchange some product or service for money.  Ideally, you will gain more money in exchange for the goods or services than it cost you to produce them.  If you are an employee, your role is to contribute to your company’s endeavor of adding value to the goods or services that they sell.  This is your most basic participation in the economic system.

Then, you take the profits or earnings you made from the first exchange and exchange that for goods or services that you consume.  And the person you purchased from turns around and repeats the process.  That continuous movement of money defines the economy.

If the people of a society only purchase items they consume and don’t add value and resell something, then the economy grinds downward.  You’ve got to add value and bring in positive cash flow.

Positive and Negative Cash Flow

The concept of positive and negative cash flow is a fundamental business concept.  Cash flow is a financial term that refers to money coming in relative to money going out.  Basically, it’s a way of stating whether the company is making or losing money over a specified period of time.  Positive cash flow happens when more money comes into your business or individual accounts than the amount of money that goes out.  A negative cash flow condition exists when your outgo exceeds your income.  You can apply the concept to your own wallet and bank account.  Are you earning more than you spend or spending more than you earn?A portion of all I earn is mine to keep! - George Clason Click To Tweet Read More →

9 Fundamentals of Sustainable Out-go and Reliable Income

If Your Out-go Exceeds Your Income, Your Upkeep Will Be Your Downfall!  This is a mantra that I have written about before.  In this post, I will go deeper into some fundamentals and practices that will help you maintain that critical balance.

As long as you continue to spend more than you earn, you will continually fall further and further behind. Eventually leading to a financial crash and burn.  This practice will lead you deeper and deeper in debt.  At some point you will eventually not be able to pay the interest on the debt you owe causing you to fall into bankruptcy.

Bankruptcy is a major personal setback and brings with it consequences that have a long lasting effect.  Credit becomes harder to acquire.  Its impact is felt by more than the individual who filed for bankruptcy.  Those debtors that did not get paid in the settlement now have to deal with the loss to their business as well.  The increase in bankruptcies and foreclosures took a toll on our nation’s economy over the past decade.  The trend had snowball effect that hurt us all.

How much have you spent on interest charges this year?  What does that add up to over your lifetime till now?  How much do you hate budgeting and how much would you be willing to pay to avoid making and living on a budget?

We’ll group the fundamentals into two groups; things to avoid and things to move toward.

  1. Avoid:
    1. Easy credit offers
    2. The trap of indebtedness
    3. Immediate Gratification
  2. Move toward:
    1. Improve financial literacy
    2. Desire to grow wealth rather than overspend
    3. Commit to a New Pattern of Saving before Spending
    4. Prioritize Spending – control your out-go
    5. Reduce Amount of Out-go to Finance Charges
    6. Improve Income Potential

Three Pitfalls to Avoid

Falling prey to offers from credit card companies, continued indebtedness and the desire for instant gratification are traps that threaten to sabotage our efforts toward achieving our desired outcome.  By identifying them and setting guards against them, you will have a safer road to achieving financial independence.

If Your Out-go Exceeds Your Income, Your Upkeep Will Be Your Downfall!

If Your Out-go Exceeds Your Income, Your Upkeep Will Be Your Downfall!

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