5 Steps to Financial Freedom

It is well known that there are many more poor and middle class people in the world, than there are rich people. So it would be logical to deduce that the majority of the population is worried about the economy. When the economy goes down, most people's standards of living go down with it. When it goes up, their standards of living go up. Of course, it doesn't help that this "wonderful" government of ours seem to think they can control every single person's standards of living�and for the majority of the population, they can. But think about this: what if no one can control your own personal standard of living?? What if you had perfect control over your future regardless of what the "feds" did or didn't do? If the economy recedes even further, how would you survive??

Think I am too optimistic? Actually, I am the opposite. I prefer to think of myself as a realist, and because I think that way, I prefer to not let the government or the economy control my financial future. If I did, where would I be when I'm an elderly woman: living in a run down shack, trying to keep warm and fed on the pittance the government gives me?? I prefer to make a better future for myself than that, and here is how I propose to do it.

Right now, I am in my early 30's, mother of three children and a freelance writer. We live on my husband's salary, and whatever I make goes into a savings account. Granted, most people are not this "lucky", but the principles I am about to show you can work for anyone! The following is something I learned not too long ago that changed the way I view money and budgeting. Something that showed me so many more possibilities! There are five principles I want to share with you, and then in the next section, I will give you an example of those principles at work.

1.Pay yourself first. (10% of your income, if possible. If not possible, work your way up to it.)
2.Pay your debts off next. (20% of your income, if possible.)
3.Live on the rest, within your means. (70% of your income.)
4.Learn the difference between assets and liabilities.
5.Investing is not speculating and speculating is not investing.