POINT ONE FINGER AND THREE ARE POINTING BACK AT YOU!
There is a constant need to discover wealth and channel in tons of cash flow in this world today. It is a direct result of the economy going down the drain. Everyone wants to find leverage to get out of their bad financial situations. So, let's back it up a little bit. How did we get here? How did the economy get into the state it's in? We can blame the government, Wall Street, banks, etc, but it really doesn't matter who we blame. The fault lies within "us," greed and poorly financially educated citizens. Trust me the poor education it truly the main cause of it all. We, you and I, have caused our own problems. Don't believe me? Answer these questions:
Do you have credit score of 690 or better?
Are you in pre-foreclosure or foreclosure?
Does your debt account for more than 50-70% of your income monthly?
Do you have a car note?
SAVERS ARE LOSING THE MONEY GAME
If you answered YES to any of these questions then you lack some financial education that could have gotten you out of all these situations. What we think we know or understand about finances is probably out-dated or not even close to being relevant in this economy. Billions of people still believe that saving money is a good strategy to having money. We live in a world where if your money is not making money then you are losing this game. I'm not talking about 1% on the dollar. That's not even worth the time. Who cares to make a penny for every dollar?! How about making 20-50 cents for every dollar? That sounds so much better, right?! The point is that you have to increase your cash flow.
There is a constant need to discover wealth and channel in tons of cash flow in this world today. It is a direct result of the economy going down the drain. Everyone wants to find leverage to get out of their bad financial situations. So, let's back it up a little bit. How did we get here? How did the economy get into the state it's in? We can blame the government, Wall Street, banks, etc, but it really doesn't matter who we blame. The fault lies within "us," greed and poorly financially educated citizens. Trust me the poor education it truly the main cause of it all. We, you and I, have caused our own problems. Don't believe me? Answer these questions:
Do you have credit score of 690 or better?
Are you in pre-foreclosure or foreclosure?
Does your debt account for more than 50-70% of your income monthly?
Do you have a car note?
SAVERS ARE LOSING THE MONEY GAME
If you answered YES to any of these questions then you lack some financial education that could have gotten you out of all these situations. What we think we know or understand about finances is probably out-dated or not even close to being relevant in this economy. Billions of people still believe that saving money is a good strategy to having money. We live in a world where if your money is not making money then you are losing this game. I'm not talking about 1% on the dollar. That's not even worth the time. Who cares to make a penny for every dollar?! How about making 20-50 cents for every dollar? That sounds so much better, right?! The point is that you have to increase your cash flow.
ASSETS INCREASE CASH FLOW
There a number of ways to increase cash flow even at this time when everybody seems to be hurting financially. I won't get into all of them, but please understand that having assets is the key. I'm not talking about your house, cars, expensive jewelry, etc. These items are not assets. Assets do not depreciate with time. Assets appreciate over time. What do I mean? Money-makers include stocks, bonds, notes, mutual funds, and your own business. Those are just some assets that you can invest in right now with a small amount of money and it will produce more cash flow over time. When you begin this process the discovery of wealth will not be far-fetched.
5-STEP WEALTH-BUILDING CYCLE
Here are some steps you can take to discover wealth and channel in your cash flow right now.
1. EDUCATE: There are tons of books out there that will teach the trends of today. My number one recommendation is Rich Dad Poor Dad by Robert Kiyosaki.
2. KNOW YOUR STATUS: Right down all your forms of income monthly, then write down all your forms of debt and how much you pay monthly for each. Calculate the total amount of 1 month of debt by the total of 1 month of income. Now multiply by 100. This gives you the percentage of debt you have. (Ex. $900(total of 1 month of bills, gas, food, etc) / $1000 (total of 1 month of income) x 100 = 90% of debt. If it's 50-70% or more your finances could use a makeover.
3. CHANGE HABITS: Look at your list of debt. Figure out where you can make some cutbacks to bring your percentage down. For instance, are you eating out every night spending all your money at restaurants? Cut back to only going out to eat once a week or twice a month. You can use this extra money for step 4 or step 5 or both.
4. PAY YOUR DEBT DOWN: The faster you pay your debt the less you have to pay in interest. Think about how much interest you would have to pay over 5 years versus 2 yrs. The longer it takes you to pay off all your debt the more money it costs you.
5. INVEST NOW: Take the money you are saving and start investing. This doesn't mean that you don't need to have money for a rainy day. But find out what you want to keep for a rainy day and have some to start making you more money. This is how you increase your cash flow and channel that money back through this 5-step cycle.
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