Thursday, September 25, 2008

On your way to Financial Freedom !

You got rid of your credit card debt. Great ! Now don't make the same mistake that I did and go back to your old money habits. You need to buy something. Save the money first than buy.

You can pay cash but it might not be the new car you wanted but a good second hand car that is 2-3 years new and you don't have to pay the depreciation on it. I drive my cars till they drop. You can get up to 200, 000 miles on a car. All the time that you are not making monthly payments you can put the money away for the purchase of the next car.

Believe me if you have $15,000, $20,000, or $30,000 in cash you will be very aware of what you are spending on the next car and you will not be so quick to get the new model with all the gadgets. Hey, if you are doing well and can afford to pay cash for the new model, go for it if it does not impact other aspects of your finances.

On a smaller scale, you will be able to pay cash for clothes, things for the kids, a new washer or fridge when the old one goes. The payoff: no stress of where the money is going to come from.

To come: multiple streams of income.

No comments: