No matter what you do in life, where you what to go in life, or how fast you want to get there the single most important step one must take before they do anything is to establish a solid foundation financially where they owe no one! Better known as being financially secure. The sooner that one can establish this foundation the better for them.
Just for clarification, when a person is financially secure they have no outstanding debt or loans and even has enough money saved up so that if they were to lose their income source they would be able to survive for at least six months to a year.
When I first graduated high school a good forty years ago, we were already being fed the false statements that college was the way to go. Well, not only was I interested in going to play football, but because of these false statements I also believed that I needed a degree to get ahead in life too. Unfortunately, I came to realize that I had no clue I wanted to do in life, and I also had no idea what sort of jobs my degree would offer upon graduation!
I can’t say if college today is any better about sharing what opportunities are available with the degrees they offer, but I do know that not much is different with the young adults being herded into college today regarding why they are going!
When one looks at the world today it’s common belief that the sooner we are placed into debt the better. Teenagers are being offered credit card applications even before they graduate high school and have jobs! Then get going to college, and let’s start racking up student loans!
Statistics show that the average college student graduates with more than $30,000 in debt, and has more than $6,000 in credit card debt by their late 20’s. Meanwhile, average median earning for 25-34 equals $36,000-$40,000. Just imagine starting your new career with a personal debt-to-income level right about 100%!
In today’s society it’s pretty well taken for granted that to get anywhere one must put themselves into debt. That’s not true, all that we have done is indebted ourselves to that establishment while they hold that debt over us! We’re now enslaved to them until the debt is paid off, there’s no getting around that.
The best time to establish one’s financial security is while in high school before they start to accumulate debt. This is possible and there are many ways of doing this for those who are ambitious enough and have the desire to control their future.
The next best time to establish our financial security is right now!
So, how can one establish their financial security and what’s it going to take?
We must first remember that this is our life and not someone else’s. So, when it comes to dealing with the finances we have earned and made we must be in control at all time!
Knowing what we need and what we want is huge, and important when identifying wastefulness.
Setting goals for paying off loans, mortgages, and credit cards and sticking to those goals is necessary for staying on top of one’s finances.
Putting a set amount away every paycheck into an untouchable saving account, and another for unexpected expenses is important.
Realizing that to get on top of everything quicker an additional income source may need to be considered.
When necessary get proper financial counseling, but always remember that what they are giving you is only their advice. It’s always best to realize who’s making the final decision and for whom.
Depending on one’s present situation, reaching a point of financially security most likely won’t be obtained too quickly. Most likely it will be seen anywhere over a period of either months to possibly even a few years. The other option is 10 to 30 years, you choose!
Now just think, instead of sending out what could have been thousands of dollars a month to organizations that you were indebted to, you’re pocketing it! Instead of taking a loan out for that new car you can pay cash! Or if you want to take a nice vacation somewhere you have the cash to take it! You can put more away for retirement. You can prepare for the addition to the house instead of getting a second mortgage; all kinds of things are possible while still saving away.
A program I’m very proud of, The Financial Fitness Program, has helped thousands of people to get control of their personal finances and put them on the road to financial security while helping hundreds to already reach that pinnacle. This program gets into a lot more of what one should do to become financially secure besides what I’ve just mentioned. In addition, for those who are willing this program will offer further steps that are necessary to obtaining financial freedom.
At this point you might be thinking why I should go through the effort to become financially secure when I can just get whatever I want when I go to the bank. That is probably the main reason for becoming financially secure, so no one would own you anymore! As long as one has debt that some financial establishment holds over them they truly are not free.
The sooner we remove that debt and owe no one the better!
Now once we’ve reached that point of financial security we can continue forward toward financial freedom where we have enough money coming in and saved up so that it doesn’t matter what we want or do, financially we have ourselves covered!
Believe in yourself!
Warren La Duke