Have you ever wanted to be released from something that was holding you back? For instance, when you count up your payments each month - Visa, car, insurance, line of credit, furniture store, mortgage, etc. - you're astonished at how the list goes on! A multitude of payments with no where to go brings on frustration upon frustration. By the time you meet just the minimum requirement on each obligation, there's no extra money for a vacation or any of the little extras that would make life more enjoyable.
Here are some tried and true methods for getting out of the financial hole and increasing your cash flow. To start with, keep a daily diary of literally every cent you spend. With every expense, document each as either a want or a need by putting an "N" or a "W" next to it. After that, calculate how much you spend monthly on wants versus needs, and you may find that you actually spend more on wants! Even if you do not, however, the truth is that we could all cut back a bit on luxury spending. We could make it through the month for much less than we choose to; however, spending habits aren't easy to break.
Begin to rectify the situation by trimming off half your lattes, clothes purchases or eating-out costs, and put that money against your highest interest debt. Before you know it, you'll have some breathing room again to make wise financial decisions. Lack of financial margin is like trying to launch our boat while it's still hooked to the trailer.
The second idea is a bit dicier. Instead of making payments that didn't increase my margin, I borrowed $15,000.00, invested it and paid it off over three years. After three years, the investment was worth $20,000 ($5,000 growth). I began to redirect these payments from things that decreased in value to items that increased in value.
After the original $15,000 was paid back, I repeated the process and over the next few years saw a $5,000 growth again. The fringes of my finances were finally widening. Through this, I learned that before you can direct finances into items that appreciate in worth rather than items that remove capital, you initially need to find out how all of that hard-earned cash is disappearing.
Here are some tried and true methods for getting out of the financial hole and increasing your cash flow. To start with, keep a daily diary of literally every cent you spend. With every expense, document each as either a want or a need by putting an "N" or a "W" next to it. After that, calculate how much you spend monthly on wants versus needs, and you may find that you actually spend more on wants! Even if you do not, however, the truth is that we could all cut back a bit on luxury spending. We could make it through the month for much less than we choose to; however, spending habits aren't easy to break.
Begin to rectify the situation by trimming off half your lattes, clothes purchases or eating-out costs, and put that money against your highest interest debt. Before you know it, you'll have some breathing room again to make wise financial decisions. Lack of financial margin is like trying to launch our boat while it's still hooked to the trailer.
The second idea is a bit dicier. Instead of making payments that didn't increase my margin, I borrowed $15,000.00, invested it and paid it off over three years. After three years, the investment was worth $20,000 ($5,000 growth). I began to redirect these payments from things that decreased in value to items that increased in value.
After the original $15,000 was paid back, I repeated the process and over the next few years saw a $5,000 growth again. The fringes of my finances were finally widening. Through this, I learned that before you can direct finances into items that appreciate in worth rather than items that remove capital, you initially need to find out how all of that hard-earned cash is disappearing.
About the Author:
Learn more about personal finances. Stop by Jack Oosterveld's site where you can find out all about investments and what it can do for you.
