Hello cronies its been a while since I penned something . I just thought to share something I learnt recently. The world today is burdened by debt . The collapse of the US housing market the current impasse in the US which has ground the US economy is because of you guessed it!!!!!!!!
DEBT
The whole world is stuck in this great big whole and it seems it become invogue to leave beyond your means. The rat race has reached its peak and people are strangled by this never ending chain of borrow, borrow, borrow .
Today I want to propose a new way to survive a place where there is no long queue waiting like virtual scavengers for your income a place where you can save for that which you have always wanted. It sounds like a fairytale right ,but it can be done.
I read this book called The Richest Man in Babylon ithe book stresses simplicity and common sense in the
management of one's finances. It offers 7 remedies to getting your purse fatter and this will help you to become financially free if you follow these principles.
FIRST CURE: Start thy
purse to fattening.
The stream of money that flows into and out of one's life
is immense. Wealth and security can be secured from it, but only if portions of
that stream are diverted. Time and again, the book's "enlightened"
characters stress saving at least ten percent of your income every month,
without fail. Accomplish this by setting aside that ten percent before
all other expenses are considered.
"But when I began to take out
from my purse but nine parts of the ten I put in," Arkad said, "it
began to fatten. So will thine."
SECOND CURE: Control
thy expenditures.
The amount of money a person makes is important, but it is
secondary to the degree to which that person controls his expenses.
Budget and plan your expenses earnestly. Demand value for the dollars you
spend.
"That what each of us calls our
'necessary expenses' will always grow to equal our incomes unless we protest to
the contrary," Arkad stated. "Confuse not the necessary
expenses with thy desires."
THIRD CURE: Make thy
gold multiply.
Three words: interest, interest, interest. Take
care to see that all saved monies are kept in the highest-yield
interest-bearing accounts available. If you have the experience and education
to do so, invest a portion of your money by other means, always striving to
create a reasonable risk/reward ratio.
"A man's wealth is not in the
coins he carries in his purse; it is the income he buildeth. That is what thou
desireth: an income that continueth to come whether thou work or
travel."
FOURTH CURE: Guard thy
treasures from loss.
Forget about gunning for those astronomical returns
promised by market gurus and their "hot tips." And don't bother with
those wacky startup businesses you see boxed in the classified ads, either. If
you're going to take risks and invest your money, then make sure you have the
education to know how to guard and protect your assets. Only you can keep your
best interests at the forefront. Your savings control your future; treat them
like it.
"The first sound principle of
investment is security for thy principal. The penalty of risk is
probable loss. Study carefully, before parting with thy treasure, each
assurance that it may be safely reclaimed. Be not misled by thine own
desires to make wealth rapidly."
FIFTH CURE: Make of
thy dwelling a profitable investment.
In most cases, home ownership — even when financing is
included — is preferable to renting. At some point, the mortgage payments will
end, and ownership will be achieved. There is no ownership for the renter ...
ever.
"Thus come many blessings to the
man who owneth his own house. And greatly will it reduce his cost of living,
making available more of his earnings for pleasures and the gratification of
his desires."
SIXTH CURE: Insure a
future income.
The future cannot be known, but preparations can be taken
to assure a certain level of financial safety. Whether this is done via a
strict savings plan, outside insurance, or a combination of both, one must be
careful to provide for the wellness of himself and his loved ones in later
years. Disability and untimely death have caught and ruined families and their
finances since time immemorial.
"No man can afford not to insure
a treasure for his old age and the protection of his family, no matter how
prosperous his business and investments may be."
SEVENTH CURE: Increase
thy ability to earn.
Last among Clason's "cures" is action taken to
increase one's earnings. Acquire education, experience, and confidence in
yourself, and use these things to improve your income. You might begin a
second, part-time job, or simply freelance your abilities in your spare time.
Whatever you do, never underestimate the opportunity to turn a favorite hobby
or skill (woodworking, photography, home decorating, cooking, etc.) into extra
income.
"The more of wisdom we know, the
more we may earn. The man who seeks to learn more of his craft shall be richly
rewarded. Cultivate thy own powers, study and become wiser, become more
skillful, and act as to respect thyself."
