n this consumer based
society we live in we are Well the major difference is
spoil for choice in terms smart investors use credit to
of the consumables we are leverage their investment
offered. Regardless if we exposure. This simply means they
actually need these products or borrow to invest. Smart investors
not billions is spent in the do not take on credit if in the
media to convince us that we do. long run it will not lead to an
The vast majority of the increase in income and a positive
population do not live within cash flow. The average consumer
their means. The increasing on the other hand spends
availability of credit is one thousands on new cars that
factor that is blamed for the depreciate rapidly, holidays they
increasing amount of personal can’t afford, large plasma TV’s,
debt in western society. designer clothes, and houses they
can’t afford to live in.
On the surface it seems that the Ironically some smart investors
availability of credit has do like the life of luxury but
plunged many into huge amounts of they almost always certainly live
debt that they will spend the within their means.
rest of their life paying off but
this same weapon called credit it The message is quite simple if
used by savvy investors to create you must live a life of luxury
a life of luxury and prosperity never borrow money to do so
in which they can afford the invariably you will end up
finer things in life. spending years to pay off huge
debts. These crippling debts
So what is the major difference often lead to stress, depression
in how successful investors and and in allot of cases divorce.
the average consumer use credit? Millions of people worldwide live
in the bondage of debilitating extra money or spend it on
debts and the only reprieve they repaying debts off quicker.
are offered is more debt over a
longer time period to ease their 2. Avoid paying Interest only
current debt repayments aka debt
consolidation . Extreme caution Interest only loans may seem
is advised if you choose debt cheap in terms of monthly
consolidation as an exit from a repayments but in the long term
life of debt. the overall amount you repay can
sometimes be as much as 50-150%
So how can one make the of the original loan.
transition from debt to
prosperity 3. Live within your means
1. Evaluate your Cash Flow This is quite simple forget what
you have been brainwashed to
Determine how much money you have believe, you don’t have to drive
coming in each month and how much a new car or have the finer
money is being paid out in debts, things in life at the expense of
expenses and other liabilities. personal debt. Buy only what you
Start with your expenses and get can afford to pay for in cash. By
rid of monthly outgoings that are forming the habit of only paying
not necessary. This is foregoing cash you are forced to purchase
temporarily certain amenities for only the things that you can
a permanent solution to debt. afford.
Club memberships and other things
that are not necessary can be 4. Pay of Loans early
cancelled. Once you have trimmed
down your monthly outgoings by Paying debts of quickly means you
100-200 pounds / dollars save the end up paying less in the long
run. Think about it why are banks afford to retire.
so happy for you to pay less
monthly? The key is investing your money
(yours and the banks) and getting
5. Consult a financial planner it to work as hard as possible.
Once your outgoings are reduced
Sit down with a financial planner and you live within your means
and draw a road map to get you you should now be looking to
out of debt. supplement your income with
investments and / or small
Taking any of the above steps business. This time you use your
will free up a few extra hundreds old adversary called credit and
a month. Now that we have a bit turn him into an ally.
of free money you must start to
invest if you don’t want to By using financial leverage you
retire poor. Remember regardless are simply speeding up the
of what you have stored for your transition.
retirement cash based assets have
continued to devalue over the But before you even think of
last hundred years and even investing a dime invest in your
further back. This simply means 1 financial education by buying
million 10 years ago had more books on success, prosperity,
buying power that it does today financial planning and budgeting.
and its only reasonable to assume Once you have gained better
1 million today will not have the insight into the financial world
same buying power in the next 10 seek financial advice.
years. Drastic steps must be
taken to secure your future Some of the things you can invest
otherwise you may retire with the in include buy to let properties,
nasty shock that you simply can’t franchises, small home based
business just to name a few. But pay loans of early, live within
most new investors start of with your means and used credit as a
real estate. But be smart real tool to increase your investment
estate is all about timing and income and not for personal
pricing so if you do start of by extravagance.
acquiring real estate make sure
you no what your doing and the Good luck and hopefully you join
timing is right. me and make that transition form
debt to financial prosperity.
In summary cut your outgoings,
About the Author:
Financial Services and Advice
http://www.approvedCreditFinance.com
Read more articles by:
Daniel Benjamin
Article Source: www.iSnare.com 
