SOME SUCCESS PRINCIPLES ARE SO OBVIOUS that they would not seem to require repeating. On the other hand, as we become immersed in our live’s activities, accomplishments and problems, it’s possible to lose site of the fundamentals of living an enjoyable life. One such principle centers upon how we manage our personal finances. In this case, how YOU manage your personal finances.
Financial Success Principle #1
It may be easier to say it, than actually apply it, particularly if you consider you are not making enough money. But the thing is, it effects individuals and families that have low income and much higher income.
What’s the principle?
It boils down to simply spending less money than you make.
Obviously, this implies two directions towards managing your money:
a) Spend less
b) Create more income
Some would argue that they cannot spend less and some would argue that they cannot expect more income. If either were true (and they are not), then such a person, or family, would be doomed to financial disaster.
Continually borrowing against credit cards or other personal loans, and hoping that you will become solvent by winning the lottery or finding an unidentified money sack on your front porch are not viable options for successful living.
Reducing one’s expenses may be uncomfortable, but it’s vital if you cannot pay your monthly bills. Look for any recurring bills that represent services that you can do without – and reduce or eliminate them – at least until you create more income. Only you can determine the priorities of what are absolute necessities and what you can live without, but certainly, on a very fundamental level, you need food, clothing and some form of housing to survive. But even those basic needs may be reduced, if needed. But what about everything beyond that?
Of course, instead of reducing expenses, the better solution is to create more income.
Create More Income
On a temporary basis, creating additional money could mean doing extra work, whether that be working longer hours at your job (for hourly workers), or taking on a temporary or seasonal part-time job, and/or taking on a longer-term second job, if that is what it will take to handle your finances.
However, working two jobs for the rest of your life may not be what you consider a successful living arrangement. Ideally, it might only be necessary for a shorter period of time, perhaps no more than several years, depending upon your financial circumstances.
If you are particularly industrious, starting a secondary source of income that is a part-time business could be a potentially viable way to handle your finances. This is easier said than done, and there is no shortage of business failures. So, this is not for everyone.
But if you are a persistent individual and can truly deliver a product or service that people will pay for, and you can get that product or service known by people who will pay, you have the basis of a business.
In some cases, you might even find that, over time, your business provides a greater income opportunity than your job.
Reduce Your Debt
You have one more option to reduce your debt. You can reduce your existing debt by way of a professional debt negotiation service. To find out more, click “Contact Effective Financial Solutions” for a no cost, no obligation consultation on you can benefit from a professional debt negotiation service to substantially reduce your existing debt load.