The Making of a Financial Crisis
How do we get into a financial crisis?
I was having a late dinner with my friends in church when the issue of money and spending came up the table. I have seen for the past year a lot of people going through a financial crisis. Most of them don’t know how it happened. It just did.
ONE PESO AT A TIME.
If your income (money in) is lower than your expense (money out) = financial trouble.
ex: You earn P25,000 a month. That’s your money in. Then you spend P28,000 monthly. That means you have P3000 liability every month.
P3000 x 12 months = P36,000.
If these goes on for 3 years
P36,000 x 3 years = P108,000 not counting the interest that you incur with the debts you made.
1. Downgrade your lifestyle. Cut cost in some of your expenses.
2. Earn More.
MONEY IN MUST ALWAYS BE BIGGER THAN MONEY OUT.
This excerpt is taken from Dennis Sy’s new book Rich for Life: Secrets of Those Who Stayed Rich for Life and How You Can be One available at Amazon Kindle for only $4.99. Hurry until promo ends. Original price of the book is $9.99.