If you have been taught that the key to financial security is getting an education, getting a secure job and investing long term you might find yourself greatly disappointed by the direction of the current economy. It seems to be that job security is a thing of the past. So what does this mean when it comes to achieving financial security? Is it possible to have financial security without having job security? If so, what is the key to gaining financial security in the new economy? If you are interested in discovering the answer to these questions, this might be one of the most important things you’ve read in a long time…
The New Economy and the New Opportunity it Presents
Most of the news you hear these days is about how the large companies are downsizing and laying off employees. What you aren’t hearing about is the opportunities that this is opening up for small businesses to arise and to fill in the spaces left by these companies. Emerging internet technologies and global communications are opening up opportunities for budding entrepreneurs that the dreamers of the past never had. While it might be tempting to think that there is less security in working for yourself, it’s actually one of the most secure means of earning income possible.
Today, if you work for a large company, you could lose your entire income stream from being laid off. As a small business owner or self-employed entrepreneur, your income is drawn from a diverse customer base. If you lose a few of them, you don’t lose your entire means of income. All you have to do is go out and find more, which is something you are completely in control of. This building of positive cash flow through multiple income streams has become the new standard for cultivating financial security.
Building Positive Cash flow
Most people you meet are doing things to cause their cash to flow towards other people’s pocket books. Correcting these things is the first step to building positive cash flow and financial security:
- Trading hours for dollars
This is the process of giving your time to a company in exchange for an hourly wage or a salary. This process is designed by the employer to cause more money to flow into the company than into the employee’s pocket. While there was still such thing as job security, this made sense. However, today inflation taxes and high interest rates are making it difficult for people to make money fast enough to build financial security by trading hours for dollars.
Investing your time to help someone else build wealth will almost always keep you from building wealth and financial security for yourself. If you really want to build positive cash flow, the best place to invest your time and money is into building your own business or into your own education.
- Poor Spending Habits
One of the greatest obstacles to financial security is investing your money on things which are designed to cause your cash to flow towards other people. This means excessive spending on depreciating assets which bring profits to other people and take money out of your pocket. In addition to this, excessive use of debt which is designed to cause cash to flow from you and towards the lender is a hindrance to building financial security.
Start paying more attention to how you are spending your money and focus on the things which are going to add financial value to your life instead of to someone else’s. The best place to start is to put an end to borrowing money and paying high interest rates.
- Poor Lifestyle Management
Believe it or not, your financial life is directly impacted by all of the other areas of your life. Learning to manage these areas of your life properly is the key to building positive cash flow and financial security:
It has been said that you are only as wealthy as your ten closest friends. The influence of your relationships determines your level of desire for personal achievement which directly affects your ability to build a positive cash flow and financial security.
Health care costs continue to rise and medical bills are the leading cause of personal bankruptcy. This means that poor health is the single most costly financial liability. On the other hand, proper management of your health helps you to be more focused, energetic and creative which has a direct affect on your earning power.
Most overspending is due to the need to add more excitement to your life. So if you aren’t taking the spare time to enjoy your life, you’ll probably absorb the cost in your financial life.
- Personal Growth
Other areas which affect your financial life are your career, your personal growth and education and your willingness to and capability to add value to the lives of others. Proper management of these and adherence to the principles in this article hold the key to building yore financial security in the new economy.
John and Linda Ballis
For more helpful tips on balancing your life and further articles on building good relationships revisit this blog regularly, http://wheeloflifeblog.com or go to our website http://wheeloflifebook.com and purchase our book “The Wheel of Life’s 8 Keys to Success”