2 Essentials For Anyone Seeking Financial Stability Or Independence

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Avoid Credit Cards

I know this might seem a little 'Pie in the Sky'-esque for many people who might feel that a credit card is their financial “buffer” in some ways. For the millions of people who struggle to make ends meet each week, and for whom the financial struggle is an ever present and corrosive feature, a credit card can seem like one's only option.

It can be such a soul destroying experience, to feel like you are constantly at risk of losing your home due to increasing rent or mortgage rates, or to struggle to make your car payments, or to even afford fuel to put in the thing. To be in a situation such as this and then you find out the boiler has broken, and suddenly, a credit card can seem like a God send. Don't take just my word for it though, have a listen to one of the wealthiest self made billionaires in the world (Warren Buffet) who makes his stance on credit cards most clear; 'just forget about them'. The APR levels are not only a disgrace but frankly it should be illegal to charge such high interest rates. Remember over borrowing was the main cause of the huge financial recession which struck in 2008. If you have avoided Credit Cards till now, then please, just maintain that trajectory!

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However, if you already do have debts from credit cards, it might be worth considering looking into a debt management plan, which can at the least help with the stresses of managing your debts, especially if you have several debts with different companies. There are many sites with free advice pertaining to setting up a debt management plan and with all kinds of related advice depending on your own particular circumstance.

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Further to this point I would actually like to say that there are some debt management companies which are actually run as charities and hence do not charge a commission for their services unlike private companies. StepChange is one such charity and every penny you pay will go towards paying off the debt, you can find out all sorts about plans and the companies on their website, so be sure to check it out.


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Generate Passive Income Streams


I was reading a best selling book written by entrepreneur Robert Kiyosaki around a decade ago when I first came across the term, 'Passive Income'. This was just one of a number of lessons I learned from reading Kiyosaki, more of  which I shall discuss in future posts. After reading this first book of his I decided to do a bit of background research into the author and his life. I discovered he had been a helicopter pilot in the Vietnam War and after returning home to the US after that conflict he had decided to apply himself in an entrepreneurial way in order to secure his financial future.

His story is not one of growing up in a rich family with a private education and a silver spoon, but a tale of someone who worked extremely hard to get to where they are today despite suffering setbacks and failures along the way; (which in my opinion always make for the best stories). He worked his way to a position whereby he could retire in his early 40s and now lives off the various passive streams of income which his various business interests generate. He apparently owns gold and silver mines as well as hundred of properties around the world all of which generate him a huge passive income.  

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In order to maintain a degree of financial stability and independence I believe the concept of passive income can be very useful to be familiar with regardless of your current financial status. If you can generate streams of income through investing in businesses which generate cash flow without your constant presence being required means you can utilise that free time to come up with even more ways of generating income/or spending quality time with family or whatever your goal actually is.


Property as an Example of Passive Income:


There's always money in bricks and mortar: In terms of Passive Income generation, the example of buying a property to lease/let or rent out, is one of investing in a business venture which should generate passive income. The idea of buying an apartment in order to let it, is that as the owner of the building you automatically are entitled to income in the form of rent, and from your end of the bargain, all you have to do is to collect each week or at the end of the month. So without your attention nor presence being required you are actually generating income. It seems a simple notion on the face of it, but any business venture is fraught with dangers and unforeseen difficulties of course, but in simple terms buying to let is a good example to use when discussing passive income.

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Please stay tuned for more business related posts as well as some tips for those wishing to generate income or those who simply wish to alleviate some of the financially related stresses of day to day life.



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