Personal Finance Education, The Five Basic Rules - Part 2

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Personal Finance Education Rule #3
Protect What You Own
Yes, you need to pay for insurance. No one likes paying for insurance -health, life, car, home, etc, including myself. But I'm sure glad it's there when I need it. Being stuck without insurance is a sure way to deplete any savings and ruin your personal finance plans.

Life insurance is a key part of your plan that I saw too many people try to avoid during my financial planning days.

I want you to think long and hard about something: If you want your family to have a great life while you're here, don't you want to make sure they're safe if you pass away early? I hope you said yes! Otherwise, I feel sorry for your family if something ever happens to you.

This may not be the most exciting personal finance education rule, but protect what you own. Everything!

Personal Finance Education Rule #4
Control Your Income
It's financially unhealthy to depend on only one source of income these days. If you have a great job making a great income, are you absolutely sure you'll have that job all the way to retirement?

Be honest with yourself on this personal finance education rule. Your financial abundance depends on it.

What happens when your salary gets fat and they can hire two kids out of college for the same price? Are you sure they'll keep you and that retirement package you're expecting? Or will they dump your expense and pick up a cheaper employee?

Think long and hard about that one. It's happening everyday around you, whether you want to believe it or not.

So, whether you have a great job or you're struggling with income, I believe you'll be doing yourself a huge favor by adding other income sources.

Begin a home business, build a website, invest in real estate, etc. Do something that will eventually allow you to control your own income. The last thing you want in the coming years is to be dependent on someone else to allow to keep working for them.

Personal Finance Education Rule #5
Leverage
This personal finance education rule deals with controlling your income. You want to leverage your income. This means you earn income that is not completely dependent on your efforts.

A job is the opposite of this. At your job, you don't make any money unless you're there trading your time for money.

However, what if you could work the equivalent of 100 hours per day? That's what a business or real estate can begin to do for you. For example, if you build a website, you can earn even while you sleep when people in other parts of the world are visiting your site.

If you own real estate, you gain appreciation on that real estate. You're not trading your time for money anymore. If you had a couple websites and some real estate, you may find that you can replace that job.

Now we're talking about financial abundance and freedom! Learn to leverage your income.

I hope you take these financial education ideas seriously and use them. If you do, you'll create the financial abundance that will free you to live an over-all life of abundance.

Change your life,

Matt

Having a quality health insurance plan is as important for your animal as it is for you. When you're trying to find the best health insurance for you be sure to get cheap health insurace quotes online before buying. There is nothing better than to have a cheap health insurance with the quality health insurance policy you want.

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