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Follow the Yellow Brick Road
Basics of financial freedom begin by understanding how your paycheck,discretionary income and your bills work together to make you "feel" wealthy and make your dreams come true.
Table of Contents
The importance of the basics
"This is a Football" are the immortal words of the great Vince Lombardi speaking about the basics of a game, a sport known to every American household in the modern era; Football.Coach Lombardi always spoke about the basics when it came to winning a simple game at the beginning of every football season. This was done to instill the importance of the basics into his players. This statement was the bricks of thier Yellow Brick Road to Realized Dreams What makes you "Feel" Rich
The legs of true wealth stands upon three principles
Revenues(Paycheck), Debt(Bills) and cashflow/ Discretionary income(money left over). These three things affect your day to day living, and future plans. How your paycheck, bills and money left over, interact, makes you "feel" rich.
I Need my Latte
A typical single American making $2538 per month, after spending $1925 for her bills has, $600 left over at the end of the month, or $150 per week to go out and play with.
If you are like her I bet you are feeling really rich, especially after several of those sinfully delicious Caramel Mocha Frappuccinos . Which brings up to the topic of discretionary income? Discretionary incomeis the chunk of cash left over after the month has gone and left with its memories. This is the money that you would use to go to the movies, a night out on the town with your friends,or grab a twelve of a micro brew or a bottle of your favorite Chardonnay. Your wealthy feelings are based upon this chunk.
So, what will make Me feel richer?
How about having more, Ca$h to do important things like, um, shopping.
How will we get her more cash? Well since Discretionary income is her Paycheck minus her bills. We either have to increase your paycheck, or decrease your bills. That is nice information but how do I make more money?
I want my Pay Raise, Now!!!
Three basic ways to give yourself a payraise are;
One you can either bug your boss for a raise, good luck, good with that, or find a higher paying job. Two, you can invest in someone else business through either direct investment or through the use of a broker and the stock market. Finally , you can become an entrepreneur, either by starting your own brick and mortar business, buy a franchise , or start a home based network marketing business . However, all require you to learn a new skill set, yet the sky is the limit as far as the rewards are concerned. The great thing about a America, or any capital society, is that we have choices. Since we now have an understanding how to give ourselves a raise, or making a bigger paycheck, let's take a look at debt.
Bills Bills and More Bills one more and my Boat will Sink
How many of us sing this tune?
How do we decrease our debts. Once again there are three basic ways. First we can renegotiate the terms with our creditors, thereby lowering your monthly payments. Secondly or we can pay of our debts by paying more to principle . Unfortunately, paying more to principle in the short run will not make us feel richer because we will have less money in our pocket for that Caramel Mocha Latte we soooooo Love, and gotta have. The final choice we have is to use a service that helps you manage your money while reducing our debts. You decide, once again that is what is great about thing about America , or any capital society, choices .
We are off to see the Wizard
Because of all of the Wonderful things he does.
When Dorothy was lost in the land of Oz, all she had to do was Follow the Yellow Brick Road.. Think of theses principles as the very beginning of your financial yellow brick. You have your trusty and faithful friend Toto(common sense) to protect you. Along the way you will make friends and have sometimes frightening and always wondrous adventures and as long as you Follow the Yellow Brick Road you will eventually make it to your Dreams true Home, somewhere over the Rainbow.
Great Stuff on Amazon
The Richest Man in Babylon
The Richest Man in Bablyon has 7 basic principles:
1) Start thy purse to fattening - save/invest
2) Control thy expenditures - watch out for self serving brokers
3) Make thy gold mutiply - use powerful investments
4) Guard thy treasures from loss - watch out for brokers with
their hot tips.
5) Make of thy dwelling a profitable investment - rental properties, your own home---but stay within your means.
6) Insure a future income - do work that you love to do. Become excellent at it.
7) Increase thy ability to earn - education never stops. Keep reading good books like this one
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- CammyStubbs CammyStubbs Nov 10, 2008 @ 3:37 pm
- This is a fantastic lense! Packed full of information and yet creative to keep your attention. You make this topic approachable for people. With the economy the way it is we all need to be proactive in our "money destiny". Thanks
Cammy Stubbs
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- mikewitt mikewitt Nov 9, 2008 @ 11:23 pm
- Excellent Lens, and advice. Life is great when you do what you love, makes you never want to go to bed at night :-).
Thanks for the great info.
Mike Witt
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- beckyjoubert beckyjoubert Nov 5, 2008 @ 5:43 pm
- Reggie,
I love this lens! I do not have a head for finances so I liked the fact that it was written in terms that I could understand. I would feel very comfortable contacting you to help me make the most with the money I have to work with. You'll be hearing from me!
Thanks, Becky Joubert
by MORPHEUSMIRROR
I am an Freelance internet marketer and financial services professional. (more)
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