Finances: Part Two "where art thou"

This is part two of my last post: Hope you enjoy!


I hope you now understand the importance of this financial principle and I hopeyou are ready to be open and honest about your financial situation.

Well the first place to start is right at the top of your financial statement, and thatplace is your net income. How much money do you make after taxes? How muchmoney do you bring home? The reason I am looking for your net income and not your gross income is because we need to figure out what we can do with the actual amount that comes into your hands per month. This is the actual number you will use when you do your budget and financial forecasting. After you have written down your Net income I want you to write down absolutely every monthly expense that you have and I mean every expense. After you have a total dollar amount for your expenses subtract this number from your total net income.

The next question you need to ask yourself is on the subject of Debt. How muchtotal debt do you have and what is the monthly cost to service this debt? In other words how much money do spend each month on your debt such as credit cards, personal loans, or any other high interest payments.

I want to stop right here and I want us to focus on some very important issues in regards to your debt. This is the only part of this process where you have to do some real soul searching. Once you get to the bottom line and you know how much debt you have and how much you spend monthly I need you to see whether this is a main cause of your financial struggle. I had you stop the process for a second because this is a very sensitive subject. Debt is a cancer to your finances and it has to be cut out.

It is a real fight to stop charging things, but you may have to be tough on yourselfand cut up those credit cards. This was one of the hardest things I ever had to do but you will never survive and get out of this crisis if you continue to finance your life on credit. That is what has destroyed countless homes, families, and even our Government. Pay with cash and begin to regain control of your finances. Well what if it is out of control? Well I hate the idea of bankruptcy and I know it can be very devastating but it is almost a must that you get your payments lowered. The only way to salvage your credit is either to pay on time or re-negotiate with your creditors the terms.

Everyone is different because you will have it tough for a while. You will deal with harassing creditors, bill collectors, and negative people but if your situation is a real crisis and you have to choose between good credit and food for your family please choose your family. You can always restore your credit but you can’t always restore your family.

I can go on and on about this subject of debt but then this would be a different book. I guess you will just have to wait for my next book on Debt, but forright now do some research on the subject and read other books like Kevin Trudeau’s book “Debt cures” for tips on dealing with Debt.

I got off the path a little bit, but let us move on to the next question you need toask yourself. Do you have any assets like equity in a house or something youmight have that you can sell for cash? You would be amazed how much stuff we have just laying around that could be sold on eBay for some extra cash. The key is to examine everything you possess and write down the item and a value that you feel you could get for that item.

The idea here is to look for extra income to help you survive these tough times.The next question is do you have any skills that you possess that you couldimmediately use to generate extra money? If you are a teacher could you tutor kids on the side for extra money? Could you mow grass on the weekends or help fix cars for a better rate then your local mechanic? What about cooking and selling your food or work part-time from home. The key here again is to locate quick additional streams of income. Brainstorming with all these questions are the opportunities you have been looking for. You would be surprised with all the ideas you will come up with.

The last question is “what skills do I possess that can not only be used to make money, but are things that I am passionate about. The true key to digging your way out of your crisis and eventually thriving is to find something you are passionate about that you can make money with and do it with all of your might. I love people, food, and giving advice.

I make my money writing books to help people and in the restaurant field. Your passion does not follow money but money will always follow your passions. I hope this has given you the starting point you need to start seeing your way out of this financial crisis and we will continue to dig deeper in the next chapters.

Overview: Brainstorm, Brainstorm, Brainstorm!!!
1. List income and expenses.
2. List all your debts(who & how much you owe)
3. Decide on a strategy to deal w/ your debt & research all the possibilities first!!!
4. List all assets that could be converted into cash to help survive this crisis.
5. List all the skills you have that you are passionate about that you can use to makemoney with.