Financial independence is not a result of earning big income. There are many people who earn five figures monthly and yet they are living on a hand to mouth existence. No saving, they are loaded with debts and hounded by creditors and collection agents.
On the other hand, there are also many people who earn modest monthly income and they are financially stable: they have savings and up to date on payments of their bills.
Financial trouble for those with big income is a consequence of mismanagement of their finances. While those with modest income and are financially stable they manage their finances well.
One of the keys of achieving financial stability is to prepare a monthly family budget, where you have to list down your net income and your expenses. Expenses should be classified as essential and non-Essential. Essential expenses are your needs not wants. Your basic needs include: food, clothing, shelter, and medicine. After those basics needs, you set aside an amount for your savings, and the rule of thumb is 10% of your net income. It is a force savings for the future.
If you still have surplus after those basic expenses and savings, you can use the amount in purchasing items which are not essential but important. Avoid using your credit card for it is expensive. Interest rate goes as high as 28% to 30 % per annum. You may use your credit card if you could pay the amount in full when it is due.
You and your spouse should prepare a budget together. If you have dependent children and could understand figures, let them join with you in the discussion of your family budget for it needs cooperation for each family member.
Without cooperation among family members, a family budget could not be followed and you always tend to overspend. Without discipline on your part and members of your family, you cannot follow your family budget. Discipline is required to make your family budget works. When you make it works, you can achieve financial health.
Considering the importance of family budget, a two-part “Personal Financial Management” seminar is scheduled on Saturdays - August 28 and September 4, 2010.
This seminar covers: the importance of family budget, how to prepare a family budget, causes of financial problems, differences between man’s way and God’s way of managing finances, and ways of solving financial problems which include: debt consolidation, credit counseling, mortgage refinancing (equity take-out), consumer proposal and bankruptcy.
This seminar is sponsored by Word Became Flesh Ministries and will be presented by this writer, the president and Senior Financial Consultant of Debt Clinic of Canada Inc. and the author of the book, “You Can Negotiate All Your Debts”. At the conclusion of the seminar, participants will receive a free copy of the book, “You Can Negotiate All Your Debts while supplies last.
Since space is limited registration is on first-come, first served basis.
Registration fee is $10.00 for admin and cost of materials. Place of the seminar is at 224 Mills Street, Brampton, ON L6Y 1T8. The seminar starts at 2:00P.M. To register visit: www.wbfmfamily.com or call 905-452-7708 or email: firstname.lastname@example.org
Adam Aspilla is a Senior Financial Counselor of the Debt Clinic of Canada Inc. and the author of the book, You Can Negotiate All Your Debts. He also writes a biweekly column, “What Matters In Life” in “Taliba Newspaper. For free initial, professional and confidential consultation, please call 905-306-7572.