How To Get From Rags To Riches.

Money has rules and laws that govern how it is created, used and destroyed. Try to learn the rules so that you can play along and actually win. This is similar to playing BlackJack and making decisions based on the odds. When you learn how money works in life, you can turn the odds in your favor.

Money is just simply that…money. It has form and agreed upon value. Money is also a big bad illusion that makes David Copperfield proud. Everything that you heard about money is probably true. Money can’t buy you love, make you happy, buy you friends or make you better.

How do we go about fixing our finances? It starts within all of us. Until you change your attitude about money, you will continue to be a financial disaster. Being financially successful is available to all of us and the first and biggest step begins with us taking responsibility for our present condition. Remember that YOU are the cause of your current financial state.

You have to stop playing the victim game in money. Stop blaming others for your financial mess. Many people blame our problems on others with money, our own kids for being a burden, George Bush and our partners for not making enough money or spending way out of budget. The number one reason that couples get divorced is because of money and finances.

Once we’ve changed our attitude and beliefs about financial responsibility, we can begin taking these 3 steps to financial freedom.

1) Begin by getting an accurate financial picture of where you are currently. Create your own financial statement that includes assets, liabilities, income and expenses. Assets can be cash, investments or real estate. Your liabilities include your car, credit card debt, student loans or home mortgage. Keep track of the money that comes in and the money that is being spent.

2) If you are in a financial mess with a huge massive debt, then take charge and admit responsibility for it. It definitely will not go away magically by itself. It may feel stressful at such times, but the experience will make you stronger in the end. Clean up the past first before looking toward the future. Having the mess will only keep you from getting where you want.

It is not necessary to overwhelm yourself with the entire problem. Be patient and take as much time you need. Start the repair process piece by piece. Get in touch with your creditors and people you owe money to work out a plan to clean up your debt. Most companies are willing to work with the customer to help them get out of debt.

3) Write down what you would like your ideal financial situation to be. Include goals and milestones that you want to meet by certain time periods such as within 1 month, 3 months, 6 months, 1 year, 2 years, etc… Always keep an eye on your timeline as it can change depending on how fast you reach your goals.

Set financial goals that are realistic and achievable. If you plan on decreasing your debt, write down your goal as a reduction of $500 for the 1st month. Then you can increase the size of your goal to a $750 reduction for the 3rd month. Another example is having a goal of saving $100 dollars per week, then increasing that goal to $125 per week and so on.

We live in a get-rich-quick world full of dreamers and greedy people. The act of writing down goals and moving up piece-by-piece and step-by-step may seem like a slow process to many. However this is the way to go. Donald Trump did not get rich overnight. He was in debt at one point in his life before he made billions. He started with nothing and ended up a billionaire over time.

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