Despite what many people think, the true secret to financial freedom does not lie in a fat paycheck. While a cushy job with a huge salary is nothing to sneeze at, the fact is that many of the highest earners are also the most in debt. Financial freedom, and freedom from debt, has less to do with income than with attitude. Getting a handle on your spending and your borrowing is the key to controlling your financial future. Until you are able to control your spending and borrowing habits, you will remain at the mercy of your creditors, no matter how much money you make.
In generations past, our ancestors were loathe to borrow money even to buy a home. The current generation is much more comfortable with debt, but whether that is a good thing remains to be seen. While even the most conservative financial experts agree that borrowing to buy the roof over your head is a good idea, controlling other types of spending and borrowing is essential to a secure financial future.
Getting spending under control is an essential first step, and no financial plan can succeed without that first step. Perhaps the most important step in controlling spending is to create a realistic monthly budget, and to stick to it. Creating a budget can be an eye opening experience, and it can help you recapture money you did not know was there.
A Budget Plan
A solid budget plan is essential, and without proper budgeting it can be hard to get ahead financially, even as your income increases. Many people find themselves in the uncomfortable position of increasing their spending as their income increases, buying bigger and more expensive cars, houses and toys, and getting further and further in debt even as their income continues to rise. Those with a solid budget plan are in a better position to control spending and use the extra money to save.
What about you? do you have a solid monthly budget that you follow and execute religiously?