Prerequisites: Money Management Concepts - Part One
In part one, we discussed the lies and misconceptions that the financial establishment has been feeding us for decades so that we don't think twice about paying them billions of dollars for instant gratification. In part two, we are going to offer you a way to stop the vicious cycle of debt if you are one of the millions in that situation or prevent you from getting there if you trapped yet.
As I alluded to in part one, for a small businessperson, your personal financial strength will affect your business financial strength and vice versa. For you to be able to weather any economic storm, the principles we are about to go through need to be applied to both at the same time. If you are still in the exploratory phase and have not yet started your business, get your personal financial house in order first, unless you need to create some money to live on, quick.
I will be going through this 'take back you life' program with just the basics and the theory behind it. At the end I will be giving you some suggestions on how to study the concepts in more detail. The most important point I need to make at this point is that the program needs to be accomplished in the order listed below.
The Two-Ton Weight
Ask a marathoner how he managed to run for over 26 miles and he will probably tell you he did it one step at a time. But he just didn't get up one morning and run a marathoner. Try that and you will fail every time. No, he started with a mile, then added another mile, then another two miles. The more he ran and practiced, the better shape he was in, and the faster he could add more miles to his training until he could surge across the finish line.
Getting off of the debt merry-go-round works the same way. You take a small step at first and then another. As a baby gets stronger and more stable with each step it takes until it can run, your debt will be paid off faster and faster as you change your behaviors and renew your commitment to the finish line.
So many people can only see this two-ton weight around their necks. They are immobilized by the thought of successfully tackling such a large project. They start to feel hopeless and listen to those who say the only way out their situation is bankruptcy or everyone lives paycheck to paycheck, that's just the way things work today. Our purpose here is to take the two-ton weight, melt it down, create I-beams and then use them to build you the solid foundation that will last you a lifetime.