Tuesday, October 19, 2010

How To Get Out Of A Financial Mess

Defensive Strategies

Cut down what you are already spending on. You can’t start a business being in a financial mess. Cash Flow is more important than revenue. And you need to have lots of cash flow coming from your pockets if you are going to succeed.

Here are some things you can cut down on:

Smoking – if you can’t quit, just cut down on a few sticks
Alcohol – booze can drain your finances faster than a running tap
Night outs – spend some nights at home thinking about making more money
Gambling – if you plan to gamble, it is better to gamble in a business
Vacation and Country Clubs – you won’t die without a few memberships
Food – eat healthily and you can even think clearer
Laziness – The biggest thing that will hold you back!

Most important of all, don’t buy anything that constitutes a liability. A liability is anything that takes money out of your pocket no matter what they are worth in the future. Think in terms of cash flow. What can I invest in today that will give me funds tomorrow?

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