First Step – Emergency Savings
I recommend doing this by creating a series of 6-month CDs. Then, when they mature, just roll them over into another 6-month CD and do not cash them out. For some of us, this is a difficult step, but it’s a necessity.
The emergency fund is your life preserver. It will allow you to keep your head above water when the *&%* hits the fan. Without it, you would have to take drastic measures to survive, if a financial emergency occurred. This could include taking out a second mortgage or even taking on debt, which you’d rather not do. You could also be forced to rely on others, but is that really an option?
Notice I said *carve out* money for your emergency fund. You don’t want to touch this money. Every time you write a check to yourself, it’s just an extra little bonus in your pocket, every month. So, by having this money set aside you’re putting yourself on the fast track to wealth.
Second Step – Financially Free
(Getting out of debt.)
If you want to get out of debt, you have to get your act together. Every month, you will need to set aside a certain amount of money for paying off your debts. For example, you can set aside money every other week as opposed to every month.
Also, another easy way to pay off your debts and become financially free is to create a 10-year plan. Based on your monthly expenses, look at how much money will be left out of your income every year. This way, you can save this amount and use those savings for paying off debts.
Also, one of the best ways to pay off your debts is to pay more than the minimum payment amount. This is the most important part of your 10-year plan and will get you out of your debts much faster.
Final Step – Wealthy
Before you complete the 3 steps in order to get rich, you must think about an alternative plan in case you do not achieve your goals for a specific step. Because if you don’t get what you want in the first step, then you will not have your back-up plan in order to succeed. All three steps are important to achieve wealth of success.
First Step – Setting up your Money Theory. Set up your money theory by following these money affirmations. The first step to becoming wealthy is by using positive affirmations with a vision of someone who is rich. Affirmations are the key to success because it is through affirmations that you play out the wealth in your mind and begin to see it in your life.
“I believe I am wealthy and prosperous. I am ready to be wealthy.”