Personal Finance Simplified

I was reading an E-book Managing your Money by Robert Kiyosaki and i found these tips to share with you…  

Before you can start on your way to financial freedom, you first have to pinpoint exactly how much bad debt you really have. For many people, figuring out how deeply in debt they are is like going to the dentist. You know it’s good for you, but it’s not always pleasant. Some people have already given up. They know they’re in a big hole but don’t want to deal with it.

But if you’re serious about building positive cash flow in your life, you have to start with the fundamentals of financial literacy. Here’s a quick quiz to get yourself going. Put a 1 next to any of the following questions to which you

would answer yes:

___ Do you routinely pay your bills late?

___ Have you ever hidden a bill from your spouse?

___ Have you neglected repairing the car because of insufficient funds?

___ Have you bought something recently that you didn’t need and

       couldn’t afford?

___ Do you regularly spend more than your paycheck?

___ Have you been turned down for credit?

___ Do you buy lottery tickets in the hope of getting out from

       under your debt?

___ Have you put off saving money for a rainy day?

___ Does your total debt (mortgage excluded) exceed your

      rainy-day reserve?

 Add up the numbers in the boxes. ______

• If your score is 0, that’s great! You’re already in control of your

cash flow.

• If you scored in the 1–5 range, you may want to think about reducing

your bad debt.

• If you scored in the 6–9 range, watch out! You may be headed toward

financial disaster.

If you really want to gain control of your cash flow, you’re going to need three

key ingredients:

1. A financial statement to know where you are financially 

2. Personal discipline

3. A game plan that’s going to take you where you want to go