Tag Archives | financial success

The fundamental financial discipline

Key and old woodBeing successful in any arena requires discipline. The most fundamental discipline that is required to be financially successful is to maintain positive cash flow.

Positive cash flow is a simple concept. You will hear it communicated in different ways time and time again.  Here are a few of the more common ways it is articulated:

  • spend less than you earn
  • a part of all you earn is yours to keep
  • saving is income not spent
  • pay yourself first
  • the total of your taxes and expenses must be less than your total income

In other words, the cash that flows out of your bank accounts for bills and expenses, must be less than the cash that flows in from your work, investments or pensions. The difference is the amount that becomes available to save, repay debt and invest.

It may be a simple concept but it is a discipline that is hard to forge. As human beings we are often tempted to “have it now”. When we choose to buy something now and spend more money than we have earned, we take away from our savings or our investments or we go into debt. We are making a choice that takes us a step backwards financially.

Positive cash flow is a simple concept that comes with a simple truth – if you are not committed to maintaining a positive cash flow, then you will never experience true prosperity.

So now is a good time for you to decide whether you are prepared to commit to this discipline.  If you are not, rather than save your money, save yourself some time and disengage from this blog. Without a commitment to this fundamental discipline, my blog won’t help you. Feel free to come back when you are ready. For the rest of us, let’s commit to this fundamental financial discipline and remain on the path to prosperity.


Personal Finance

Have you ever wished someone a prosperous new year? Perhaps you have received such a wish. Have you ever thought deeply about what that means? Better still, have you ever seriously imagined what a prosperous year might look like for you?

To be prosperous means to be in a successful, flourishing or thriving financial state. Imagine what your life might look like if your personal finances were flourishing.

Unfortunately, most people never achieve prosperity. Even among those who enjoy significant financial success, many do not describe their financial position as flourishing or thriving. Instead, they still have reasons to worry about their money.

The good news is that true prosperity is a state that we can  all achieve. It starts by creating a vision for your life that incorporates financial success. Then, by making good decisions about your money and aligning the actions you take today with that vision, you will begin making progress towards it.

The principles of making good decisions about money have been known for ages. It is not the knowledge of what to do that is hard to come by. It is the practical implementation of that knowledge day after day, that obstructs most people from financial success.

In this blog I will reintroduce the age old lessons of personal finance, but I will present them together with tips for implementing these lessons in the 21st century. I hope that my modern interpretations put you on the path to experiencing prosperity, a state which will afford you the opportunity to live the life that you want.


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