Become Debt Proof
Everyone has a need to create wealth. With wealth on your side, you are able to handle whatever comes your way financially. As an entrepreneur, it is important for you to establish a secure financial base for now, and for the future. In order to accomplish this, you need to learn how to create a monthly budget that works best for you.
It is easy to blame others for your financial status. However, in all actuality, the only one to blame for your situation is you. It is important that you realize that you and only you are responsible for your financial future. It is all up to you to create wealth and invest the money that you make wisely in order to continue creating more and more wealth.
Many, many temptations to live beyond your means exist. It is too easy to drown yourself in credit card debt through unnecessary spending. High credit card balances leaves you with nothing but high interest rates.
In order to build financial stability, it is important to build a solid base financially. Imagine a pyramid, which is big and strong at the bottom, but small at the top. However, pyramids are a very strong structure that has proven to stand the test of time. Now, picture your money going into the top of the pyramid and working its way to the bottom, gaining strength and stability all along the way.
The base of a pyramid has four corners, so you need to divide your monthly income four ways into four separate accounts. Seventy percent of your income should go into the first account to cover your daily living expenses. Ten percent of your income should go toward having fun and living life. Another ten percent must be deposited into a high interest savings account for emergencies only. Finally, the last ten percent needs to be invested wisely.
Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2010
July 12th, 2010 at 1:19 am
Hi Sean,
I like the 70/10/10/10 split for income, but I believe that it is first essential to remove credit card debt and other forms of bad debt. Once these debts are gone it becomes much more possible to create wealth.