A Rich Man; A Poor Man With Money.

Posted by ECOKID on Jul 3rd, 2009 | no comments home title

I’m sure that many of you are familiar with the saying “a rich man is a poor man with money.” Well, after todays post, you may actually think it to be true. Why? Because the next step in reaching financial freedom is working on expanding your emergency fund. Essentially the goal is get your already created emergency fund to where it could potentially sustain you and your family for 4-6 months if there were to be a cut in your income stream. The emergency fund in case of a job loss would be something separate from the original amount set aside for potential emergencies. Not only is your goal to have 4-6 months of income in savings but to also have that extra 500-1000 dollars in emergency money in case of emergencies! Attaining this level of achievement in this process is extremely important. Once here, you will start embarking on a journey where you stop working hard to earn money and start letting your money work hard for you!

Here is where things start to get a little shaky. One way to fill up this new emergency fund is by making sure you continue to make those once debt payments to the fund. This will increase your net worth and slowly bring you to a point where the dollars that use to feed your creditor now feed you! One thing to remember in this process is to try and be as strict as possible with yourself in obtaining the 4-6 month emergency fund in case of job loss.

Now, if you’ve made it this far, let me just say “congrats!” It’s not an easy thing to follow these steps and I’m going to just say that I’m super proud of you if you’ve made it this far. By now you probably feel ten times more alive than you ever have before. Your financial situation is probably a whole lot better now than its ever has been. You’ve reach a point in your financial advancement where what once use to be a dangerously life altering matter would now only be a mere inconvenience.

In the follow segment of this series, we will begin to uncover some really useful methods of investment that will jump start your money-generating, financial freedom machine! This is where your money starts working for you folks. You won’t want to miss it.