Have you ever wondered why even when you win a salary increase or a bonus at work or you get that much desired for house allowance, somehow you debts instead of reducing or disappearing become more? Have you ever wondered how your friend who earns much lower than you do, seems to be more financially stable, saving to buy a piece of land out of town, living a decent life without having to borrow money every time they want to go out with friends for a drink or two? Have you ever wondered how by the time you earn your salary half of it goes to repayment of debts you incurred during the previous month? Your journey to financial freedom begins as soon as you are able to figure out how to reduce your expenses, so that they are lower than your income. That means that when you get your salary, you can pay all your monthly expenses, and remain with enough until the next paycheck without having to borrow. The person who earns lower, but is more financially comfortable is just not lucky or has good fortune. They sit down and plan their finances so that unnecessary expenses are avoided. Being debt free, is not a function of how big your income is? It is a function of how you decide to spend what you earn. Some people believe that they have no choice but to borrow more. Whether you earn ten thousand francs or one million francs, you can decide to reduce your costs and save money or overspend beyond your income. You can choose to have the newest fashion clothes every time and appear ‘in vogue’ or you can choose to delay that gratification, and save or invest so that in two years, you can be in vogue without hurting your bottom-line – your income. Buying the fancy and expensive things is not the path to wealth; instead it is the path to ruin. Rich people do not have to show that they are rich because they do not need to show anyway. They are already rich. They sit down plan, save, invest and when they are really wealthy perhaps nice things just come by themselves, though rich people do not really show off. They prefer to just get ordinary things. So when someone has no debts, don’t assume that they earn five million francs every month, or that they are just from rich families. It might be true, but it might also be that they simply make smart money decisions every day. kelviod@yahoo.com
