Trying Times and how to Beat Them

The Family craves security, that they can count on us and will always be taken care of. As leaders we have to accept and take on that challenge!  I decided that I am going to be the responsible one who's going to make sure my families taken care of. The major issues we all face in life can be resolved by ideas and right thinking, its not about money, its more about mindset.

  How do we save money? What do we earn and what do we save? Why do people have insurance? Just in case!

  How many months can your family get by on if something happened and there's no income coming in? After 3 months you sell off the big screen TV, after 6 months you lose the car, and the house goes before the year is out. You have to determine how many months do I have in the worst case scenario, and there's no income coming in. Here are some simple steps you can determine where you are on the real "Financial Survival" reality show.

  1. You have to know exactly how much you make each month, your true Income, not including your If-come, or money you think you might be getting if everything goes as planned. Get the real number, your net income. If-come doesn't work in the real world.

  Remember, the only thing needed to achieve financial freedom is Discipline. Develop the disciplines to win when it comes to financial management.

  2. Know what ALL your expenses are, write them down. Write down everything, gas, utilities, food, expenses, EVERYTHING! Include the average for unexpected expenses such as auto repairs, and things that crop up and cost you money throughout the year.

  3. Use a financial management program to keep track of your income and outgo.

  4. Pick a random amount you can call your allowance. If your married create an allowance for you and one for your spouse. For example, if you figure $200 a week for yourself, once you reach your limit that's it for the week. You'll have to do without until the next weeks allowance kicks in.

  5. Give an allowance to your children too, for doing chores and getting good grades, even for reading a good book and doing a book report on it! Help your kids start a bank account and start teaching them financial principles early. 

  6. The Ultimate Goal: Owe nobody anything!

  7. Get your expenses down to no more than 75% of what you make net income. That's what pays the bills. Anything you spend over the 75% and your robbing your future for the present.

  8. Take the 25% each month and save it, every 4 months buys you a month of Financial Freedom in the event that something unexpected happens to your income and you have to draw on your Life Saver money to get by.

  Are you aware that there are many people who earn $500,000 or $5,000,000 or more per year have the same challenges as someone who's earning 25,000 a year? Why is that? That is because they wind up spending more then they earn, just like the guy who's earning only $25,000 a year! 

  You know your finances are in control when you are doing good and you don't change your lifestyle, instead you shift to a save 50% discipline. That buys you a month of Financial Freedom every 2 months. You have to earn your way to a better lifestyle, and not borrow your way to a better lifestyle.

  If you buy anything you want to have the cash to buy it, or else don't buy it. You don't want to sell your family's future out from under them!

Stay tuned for Part II of this series on Financial Freedom, all ideas and comments are welcome!