After all the financial turmoil, does any of the advise still makes sense? Why do you think all this happened? A quick answer will probably be “ greed” but this will not be a nice answer, because people don’t want to hear the truth in a straight forward answer, they like it to sound good, not harsh. If you over extend yourself, then the learning process is hard, it might even lead to loosing possessions that you’ve paid way to much for in the first place. Only because others had it, you also “needed” it. But it is on the end not all your mistake. The media and marketing campaigns are all against you. They make sure you want to buy, and buy a lot. The banks wants you to buy on credit, then they can get hold of you and keep you, as paying off your debt is not part of the game. They will extend your debt till they have you woven yourself in your own prison. You then become a slave of yourself, you have to work just to pay off the debt.
Well, now is the time to concentrate on your 5 year plan. How can the extra income from your website help your overall strategy.
I can only talk for myself, but this is what I’m doing.
· I need a certain amount per month for expenses, the rest is surplus. (income – expenses = surplus)
· Surplus is fed into a long term account. If you remember my 3 bucket methods,
o Invest in fast growing portfolio (growth)
o Invest in long term, safe portfolio (security and debt free)
o Your living expenses. (your life)
· From this account I feed my 3 buckets. Although at this stage I’m still building surplus funds and keep all this in my safe account. This helps with financial turmoil’s like we currently experience.
· My overall plan is to feed my living expenses and fast growing investments also from my income that should be fed from passive income. I do not want to work for money, but have money work for me.
Well I hope you as my reader, did not over extend yourself and can sit back and see how the investment possibilities are stacking up. Now is the time to do your calculations and not just buy because of greed and the possibility of a big capital gain. If you are not in control of your investment, be careful.
Remember the saying, Cash is King. Big companies are going down because of a lack of cash flow.
That’s it for now, till next time, stay well
Tags: cash, crisis, financial crash
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