Take Control of Your Finances
By Matthew Bartlett
Did you know that one of the biggest financial mistakes most people make is dependence? Dependence on others allows "outside" factors in people's lives to control them. Their jobs, the government & financial burdens like debt - these are the factors that control people's lives. Instead of feeling good about their finances, most people feel ill. The secret to financial security is learning to control the things you CAN control. You can't control taxes, but you can control ways to reduce your taxes. You can't control Social Security, but you can build funds for retirement. You can't control your employer, but you can develop alternate sources of income to eliminate your dependence. When you let others control your security, you're inviting insecurity.
So where to begin? Most people have too much month left at the end of the money! You may also be thinking you don't have any "extra money" to help your financial situation. Many families feel they do well just to pay their monthly bills and keep their "heads above water." You're probably thinking the same think this very moment. Even families with above-average incomes are feeling the financial pinch these days.
But don't give up just yet! If you're serious about building financial security for you & your family, there ARE ways to arrange your present income (what you actually earn on a monthly basis NOW) to free up funds for investment.
Here are some options:
1. Pay yourself first - This means putting yourself & your family before any other demands on your money. Deposit a set amount EACH & EVERY MONTH into an investment program, no matter what other financial obligations you have. It's amazing how fast your money will grow if you invest even a small amount regularly at a good rate of return.
2. Adjust your priorities - Start with putting together a budget for each month. Try not to make it so much trouble that you won't keep it up. Whenever family money is spent make sure to keep track of when, where, and on what the money was spent. At the end of the month you will have a real eye-opener regarding how the little things add up to big dollars!
3. Adjust your lifestyle - You can't have everything. Separate your wants from needs. Do you "need" a new car? Or do you just "want" a new car? If you want to achieve debt freedom and financial independence then sacrifices must be made for a period of time.
4. Earn additional income - Consider a part-time job to earn the extra money you need to start your investment program.
5. Re-align your assets - There are TWO major areas to target in your families budget to ensure you are getting your money's worth.
(A) Low-interest savings accounts, accumulations with banks, savings & loans & insurance companies. You can take money from a 3% savings plan and invest it in an area with a greater potential for a higher rate of return.
(B) High-cost life insurance. You can replace your outdated, expensive whole life insurance policies with term insurance and potentially save thousands of dollars in premium over time!
6. Avoid credit traps- -Pay off your credit card charges at the end of each billing cycle. Otherwise, you may be paying double-digit finance charges. Installment loans are another area to beware of. Avoid paying for items "on time." If you are unable to pay for them in full by cash then save your money.
See how many options you have! And just a short time ago you were convinced that you could'nt come up with any money to start on your path to debt freedom and financial independence! You can do it. You just need to know how money works!
