Financial Advice Free ImageHere is some simple financial advice -free– that your $10,000 schooling never taught you.  This applies more today than it ever did.

Financial Advice #1:

Start building some sort of passive income NOW.

We need to stop thinking that getting a “secure” job is the answer to your money worries.  It’s not the way to financial freedom that we all seek.

The Industrial Age is over and you cannot depend on a company to be there for you like the old days.  If I remember correctly, United Airlines was one such company that could not fulfill their promise to pay pension benefits to employees that worked 20 – 30 years.  How devastating is that?

The Information Age has made this a global economy.  There’s no such thing as a “safe” job.  However, the information age has also leveled the playing field so someone with just a few $100 has just as much an opportunity to generate  hundred’s of thousands, and even millions, of dollars as that conglomerate in your back yard.

Passive type income is coming to be a need rather than a want in today’s unstable economy.

Real Estate has been a very popular type, but I find something called affiliate marketing much more fun.  You can read “Increase Google Rankings For Your Articles” to find out what it’s about and compare it to real estate investing.

You can continue to work for extra income but work your way up to building enough passive income to cover at least your core bills, especially health insurance.

Here’s the problem in being an employee.  If your health insurance is contingent upon you working X amount of hours, what will happen if you are hospitalized for 5 months and all your sick leave and vacation time are exhausted?  You’ll lose your insurance just when you need it!  Now, THAT can bankrupt you.
Financial Advice #2:

Do NOT consume with debt.  In other words, do not buy consumables with debt.

If you don’t have the money now, don’t buy that iPad yet.  Once you get into this habit of “I want it now” or “I can make the monthly payments,” you will end up down the road of financial hell!  Remember, there is a LAW of “cause and effect” and the effect WILL affect you sooner or later.

Those that didn’t heed this advice suffered serious consequences, i.e. broken marriages, chronic stress, health problems, broken friendships, etc.

That sticker “I Owe, I Owe, So Off To Work I Go” is sad but true for many Americans.  Don’t set yourself up to living the “I have to work” life.  Form habits that will allow you to live the “I want to work” life.

Here’s a simple habit that will compound in more ways than one.  Financial Advice Free Image 02

Every time you have money come in, look at it as capital.  Every time you want to buy something that depreciates in value, put it on your “want” list.  Now take your capital and find a way to create more capital.  A simple example would be you earn a $100 and you want to buy a $50 gadget.  After doing some research on eBay to see something that sold for $200.  You buy that same item locally for a $100, then sell it on eBay for a “lousy” $185, and walk away with a net of $80 profit.

NOW, you go and buy your $50 gadget.  But, look here.  You have your gadget, your original $100, and $30 extra.  This is all because you bought an asset first (asset = something that  can potentially make you money) and the liability second (liability = something that makes you lose money).

So, to repeat the simple financial advice above, start building some sort of passive income (or near passive income since everything is going to require some of your attention) to the point where it can cover at least your basic expenses.  And, to avoid unnecessary expenses, NEVER buy consumables with debt.

And like this site mentions, the lower your expenses, the FASTER you will achieve financial freedom.

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