Money management is one of the few arts that dominate and almost not taught. A couple of months ago I was privileged to attend a family conference of entrepreneurs in Huntsville, USA, with my daughter. It was very interesting, since 50% of the public had less than 20 years of age. One of the speakers spoke about how to reduce our debt. He asked that everyone stand up who ever had a debt. All adults are stopped, me too.
Then asked to be seated those who had already paid off its debt. I was the only one to sit again. The rest of the audience was standing-with his eyes on me. Apparently it is unusual to find an adult without debt today. The debt is like a leprosy seems to be on us and passed on to our children unintentionally. Can we live without debt? There are two types of debt, some are good and some bad.
The good debt is that which is investing in a lucrative business that gives higher returns than the rate of interest on the debt itself. This type of debt puts money in our pocket. Bad debt, however, is that which afflicts more than 90% of families in the world is debt for consumer goods. Get more background information with materials from Katie Haun. This debt takes money from our pocket. Encouraged by the media we are constantly tempted to spend more than what we have. Financial institutions offer attractive plans to borrow around every corner, and credit cards provide us with further spending yet. When a card is just the next deal. Independent of what we earn, our expenses always tend to be higher than our income. And worst of all is that we are a bad example for our children. How can we get out of this self-destructive downward spiral? It is very simple. We have to learn one of the basic principles of money management that any successful person learns at some point in his life: Spend less than you earn! If you win $ 10, spends $ 9. Never reaches $ 0, under any circumstances. The $ 1 left over each month you use it to pay all your debts, one by one. Once you’ve done that, you start to invest to work for you. It’s that simple! It will not make the overnight. It will take time, but the basic principle of money management will always lead to economic prosperity, guaranteed! Oh … and please share this with their children. As parents make an effort to prevent the disease is contagious debt to our children! If you need help with financial education for their children (and yours!), I invite you to where you will receive a free virtual book that will teach you 10 facts that a mother taught her children about how to own their own business.
