Apr 24 2008
For starters, you need to figure out how much money you need to live your lifestyle. Get every cent accounted for. Determine a monthly figure, how much money you need each month. That will be your list of expenses. If you find things you don’t want to be spending money on, go ahead and curtail those. If there are things you’re going to want, like a new Porsche Carrera4. Figure out how much it will cost you. This is your monthly expense amount.
Next total up your monthly income. Every cent you earn. After taxes.
Now for the bombshell. Subtract the two. This is your cashflow. Thats it, told you it was simple.
What you want to do now is find out how to set-up a system to generate more income than expenses. Personally I love real estate. It just makes sense to me. Invest your monthly cashflow into something that generates money. Could be a stock trading system, a part time business (preferably automated), rental property, whatever. This will be your passive income. Once your passive income is greater than your expenses, you’re done, you’re free to move about the continent. Congratulations.
Just for the record, I’m a regular guy, no financial guru, I’m not going to try and sell you anything, except maybe a house or two, but nothing I wouldn’t buy myself.
One Response to “Basic Finances”
Leave a Reply
You must be logged in to post a comment.