Why Get Out Of Debt Starting.... TODAY ?

Today , I received a phone call from my mom. During the phone conversation she was mentioning about how bad the financial situation has become. Now, remember that I'm going to start a new family of my own soon and right now not in my home country which is Malaysia.

My dad has been a God fearing , good husband and father all these years of my life and has disciplined me and taught me well about life's lessons. But if there is one weakness that he had it was financial management.

You see, he had to take loans to cover personal expenses and at the end of the day; the bank account that he had was still relatively zero in savings.

Wonder where all the cash went ? Well, normal daily expenses like lifenecessitiesties.
I'd like to point out a warning and advice to all my team and friends out there reading this.

Never get yourself in debts so much that it had become almost second nature to swipe that credit card or take out a bank loan to pay for something you want upfront.

The KEY to success and financial freedom is knowing between a good investment and a bad one. Bad one are things that we don't really need like a nice car, big house, big TV or entertainment set, vacations. I'll stop here because you're totally thinking ...

"but that's the main reason I started with my very own internet business?"

Yes, but we all need to learn how to think delayed gratification. If you can't resist the temptation offline of the worlds many wonders and thrills, then you will equally fall prey to online temptations well. Heck, anything and all thats marketed to you will entice you to the result of swiping your nice little credit card!

Some Steps that you should do today is :

1. Check that you have at least 6 months to a years worth of savings for daily expenses

2. Place a budget or allocation for each section of your life from the balance after expenses is deducted.

Say for example,

Your Current Income or savings alloted for this month is $2500

Balance after Expenses/Necessities = $1000 (that's already 40%)

Then, take your balance if $1500 for other items :

Business = 30% $450
Investments = 30% $450
Entertainment = 10% $100
Emergencies = 15% $225
Back In Savings = 15% $225

The figures and percentage is an estimate and you should decide on your own ratio.
* If you have not done this before , go ahead and DO IT NOW.

3. Stay Within Your fixed budget and be disciplined to follow it. The most difficult times are the times when you want something really bad and can't wait to have it! But you are sure to improve overtime with training and discipline.

Thats basically all that I have for you today, if there is one way of getting started to financial freedom is to be financially intelligent in money management. This is the basic foundation for everyone and especially if you are serious in creating a steady financial rock to stand on when the storm comes.

Regards,

Vern How

To Learn more about how to start your financial nest egg, Click Here

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