What financial reality you choose?

Financial reality, the financial world - is the set of economic policies that you choose and who you follow.

Simply put, the financial reality - this is your way, this is your way to earn a living.

After some thought, I was able to distinguish two separate ways and another option, which is a kind of symbiosis between the first and second.

Everything, as in fairy tales: "The right to go - death will find, to the left - the horse will lose, right - something else third." All paths are the same, each has its pros and cons. You choose. Thus, reveal the card.

Ask yourself: "What do I pay? "I am sure that there are two possible answers:

* For your efforts;

* For the benefit (or value) that you create for others.

Your answer - it's your choice own financial path. Let's look at these two roads a little more detail.

1. You get paid for their efforts.

If you read between the lines, it becomes clear that you are - the person receiving a salary (even higher). More often than not, in this case a large part of your salary - a salary rate or something else like that.

In this way has its advantages:

* You define the purpose of your activity (you do not have a headache about what to do);

* You promise to pay the money, you promise economic stability;

* You are required not so much the results as a certain level of effort (you always able to say that you tried very hard);

* If you continue to make an effort, then your financial risks are minimized.

Most people are happy with this situation. This so-called "safe option", which elects the vast majority of people. I myself believe that such a path is not bad for a start - to get used to life and to understand what you want from it.

However, this path has its limitations, and quite significant.

Meditate on what do they consist of? As we can see, choosing the first option, we shoot with the lion's share of responsibility, we reduce their risks to a minimum (basically - it's great). What we can not meet this way:

* The objectives of your activity is determined for you;

* Your level of income - is a stable amount, but it is far from the limit of your capabilities;

* By choosing this path, you get used to put the responsibility for their actions;

* The path does not stimulate you to give 100%, it does not stimulate your growth (as an individual);

* Often, with this approach - you have limited management capabilities, limited choices;

If you're satisfied with these limitations - you can happily continue to go this way ...

The rest, I'll tell you about other ways ...

2. You receive payment for your contribution (value benefit)

Terms of the game at the same time completely different. You will never be able to say, "I tried as best I could. I give 100%. " It is absolutely nobody cares. This fiscal path is much harder, but it provides appropriate compensation.

So, what are the requirements in this way?

* You choose the direction;

* You and only you are responsible for you created value;

* It is important not invested efforts and created benefits (while efforts should try to invest as little as possible - and it is difficult).

* You are all risks associated with the choice of direction (maybe you create the value of no use to anybody - the main mistake you can make in this model);

Let's look at a specific example.

Credit - a pill from financial weakness?

Consumer credit - the financial weakness of the pill?

Modern society offers a lot of quick decisions to combat the symptoms: a headache means, means for "humming" stomach remedies for cold symptoms, etc.

Consumer credit - one of these funds, however, like all the others, it only suppresses the symptoms of "disease" without solving the main problem in this case.

This article in today's ...

So quick decisions - Do They Exist?

Advertising advises us to take pills to help our stomach. Yes, indeed, they will help us get rid of the uncomfortable sensations after we vpihali in your stomach all sorts of rubbish.

Or it is better to think about healthy eating instead of killing the symptoms? Headache - is another symptom of the eternal, which are easier to drown out the pill than to eliminate the cause.

And the reason is simple - the excessive psychological tension or stress, both can be removed from your life, to develop a new, more peaceful approach to life itself.

The financial weakness - a problem most people, but lo and behold, we have come up for another pill - credit.

In his book, Bodo Schaeffer repeatedly draws our attention to this issue, however, I think there would be more detail.

Why credit makes us weak?

1) Because it gives us a false sense of prosperity and affluence.

Think about it, if you take the credit - it means that your earnings are not enough to ensure that you can afford a certain level of life.

Credit allows you to solve this problem temporarily.

But in the long run this is the credit even further weakens you - because you are paying for a product that, and so can not afford even greater amount (you have it paid in two installments, but this amount is not getting smaller ... or rather become smaller only psychologically).

It is played by the sellers. Here is a clear demonstration of the principle of (quite well) "The rich - richer and the poor - poorer" in action. Unfortunately, if you take a consumer loan, you will not find yourself on the side of the "rich" in this equation.

2) You loosen your financial capacity.

If before you had a chance to make their free funds to somehow work for you, now your credit payment will eat a significant portion of your available funds.

This in turn leads to two results:

- You lose the ability to invest (ie you continue to work for the money, rather than to make money work for you - namely that such a system was created as capitalism);

- You reduce the amount of their available funds (which in turn leads to the fact that once you engage the services of a loan - the cycle is closed).

In today's world we are invited to conduct the following formula:

The problem (lack of funds) - Quick Solution (credit) - the lack of funds - Quick Solution (credit) - ... - credit ...

Thank God, in our society, yet when a person is forced to take a loan to pay off the loan. However, such cases are not uncommon in the western world. And apparently, this situation may arise in our lives.

What kind of formula is offered in return? There she is…

The problem (lack of funds) - The extreme measure (loan) + change financial policies - investing - income increase - a change of policy of consumption - no problem of available funds.

Naturally the latter approach involves a more serious approach to personal finance. You are invited in the first place to undertake additional efforts to change the situation, which in itself is not easy and requires discipline.

In the second case, you are encouraged to begin to learn about financial instruments available to you, the opportunity to start their own business or to move up the career ladder. The second tool - a tool for long-term planning and long-term vision, he is sure to change your life for the better.

The second approach is a much greater potential than the first. Of course, in the lives of the people there are different situations. And it makes little sense to sacrifice family and any other sphere of relations for the sake of potential financial freedom in the future.

However, in this situation, you must keep your eyes open. It should be clear and honest look at their motives. Are we acting in the moment, for the sake of conservation relationships, or we just choose the usual more easy way, which is the majority?

Do not delay me personal finance issues on the back burner?

"This purchase is needed at the moment, I begin to engage in investment and an increase in their own financial capacity, when I decide this issue"

If your mouth flies phrase like this, then I think you should consider ...

I'll be glad if you write your thoughts on this, they will be of interest to me and other readers of the blog ...

P.S. All of the above applies only to consumer loans, and has nothing to do with loans to develop their own business. But it is quite another matter ...