The elements of The Financial Fence® - Part 2

Yesterday we were talking about the financial post and that sometimes we can be fooled into thinking that what we see with our eyes is a good indication of what someone's wealth is all about. Remember people can be like a duck - Cool calm and collected on the surface and pedalling like hell underneath to keep up. If you get too much debt and not enough equity, then no matter how much capital you accumulate , life is going to be a struggle keeping up with the debt repayments. best to sell some of your capital and get back to a sensible ratio. Today I want to talk about the top rail of The Financial Fence® Just like a standard fence, The Financial Fence® has two rails. The rails of the fence represent the activity in a business and the posts represent the milestones or achievement points. The top rail we call the CONSUMPTION rail and there are a few reasons for this. It contains a person's income and expenses. It represents the reources that you have received and expended for a period. Another way of saying this is ; it shows you what you've got left after your activity and in this world of instant gratification, the challenge is to have something left at the end of your consumption rail. Think about it though; If you have nothing left at the end of your consumption rail, how will you ever begin to accumulate the capital that you require to become financially free. How will you ever get off the treadmill of working hard all the time and never having enough. Make a decision today that you will make sure you have something left at the end of your conumption rail so that you can begin the journey to financial freedom.

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