Live 20% beneath your income!
Sounds like words that should never have to be instructed for financial freedom but our society is built on over living.
We are guided, instructed, cajoled, prodded, subjugated, and constantly influenced to live above our income.
A law had to be passed to make it illegal to advertise credit card application on college campuses. Really? Have you seen the cost of a college education lately? Students have their hands full trying to get prepared for an adult working life. They seldom have any income and definitely not enough to pay for an expenditure later at 29% interest.
Have you ever wondered why your parents never taught you personal finance? It’s because they are winging it themselves. The average family has less than $1,000 in the bank. Generation after generation we have followed down a path towards a moderate life and less than moderate retirement. Debt has become our second income stream ready and waiting to fill those wants. Why wait and plan for what you want when you can get it now and pay for it later.
- 90 – 180 days same as cash
- 12 Months Zero Interest Credit Cards
- Home Equity Loans
- Title Loans
These are just a few ways you can live above your income with ease today and suffer the consequences of your choices much later. The odds are not in your favor.
Looks are Deceiving
Wealthy folks don’t spend all they make and have. They spend the interest not the principle.
The best thing you can do is live 10-20% beneath your income. Must do’s:
- What is Remaining after Bills
- Separate Goal Accounts
- Save 10% in your Company Pension
- Save 5% -10% in Your Personal Bank
Sometimes you need a push or a guide to help get what you need and want. Could you live 20% beneath your income. Decide what your willing to do yourself and fill in the gaps with all the external help you can invest. Time and energy are massive investments that will return 10x the original input with persistence and consistency.
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