http://youtu.be/u92ArkyuPeo
Open your mind to the idea of living on 70% of your net income. What’s up with the other 30% you say? You’re going to do some cool stuff with that remaining 30%.
That goes toward a good personal finance plan of:
1) Giving 10% of your income to charity
2) Investing 10% where you choose
3) Saving 10% for an emergency fund and beyond
This keeps you from living check to check, week to week. You have to have a solid personal finance plan. It starts with, of course, debt elimination. But along the way you should give to charity and put some money in savings.
Ideally, your plan could look like this:
1) Save $1,000 emergency fund.
2) Pay off all debt except the house, start with smallest balance debt first.
3) Once all debt except house is paid, save 3-6 months living expenses to finish your emergency fund.
4) Invest at least 10% of income, where you invest is your choice.
5) Pay your home off.
6) Keep investing, building wealth, and giving.
7) Teach everyone you know to do the same thing along the way.
So, if you’re spending every dollar you make on debt and living expenses there won’t be anything left when it’s time to stop working (retire). Get started now on the road to pay off debts and achieve financial freedom.
To Your Financial Freedom,
Greg Whitaker
