How are you? I am fine.
My blog began in 2015. Using newly discovered tachyon particles, I am writing to my seventeen initial readers from the year 2021 to give you tips for flourishing over the next few years.
Be aware that BIG THINGS are coming up, not all of them good. The Time Lords have forbidden me from giving you specifics, but I am allowed to give general advice that will help you to get through.
The economic sunshine will not last forever.
You have time to prepare.
Follow the ten steps to financial freedom that will enable you to get through no matter what happens, especially the first four, foundational steps:
1. Don’t get into (more) debt
If you’ve living off credit cards or other borrowing, you need to break that habit NOW or you’re going to be up shit creek some years down the track.
I can’t be any more plain than that.
2. Make a frugal budget
If you don’t have a budget yet, you need one right away or the rest of the steps here will not help you at all.
You can write it on paper, set up a spreadsheet or get an app.
3. SAVE AN EMERGENCY FUND
This one is in capitals for a reason.
How much do you need? It’s a bit of a ‘how-long-is-a-piece-of-string’ question. In the first edition of my finance book I recommend enough to live frugally for:
- 3 months if you’re still paying off debt (not including mortgage)
- 6 – 12 months if you have no debt
In the second edition, after seeing the madness that has taken place between then and now, I reckon I’ll increase the suggested amount for the debt-free to 12 – 24 months’ worth of living expenses. Maybe 36.
That’s too much to keep all in cash. Keep 6 months’ worth there and the rest in bonds or cash equivalents. Sorry, can’t tell you what happens with crypto. Roll the dice if you will.
4. Get out of debt
There’s no better time than today because (a) debts will cost you more the longer you have them and (b) you’re probably more able to get cracking on this now while the going is good.
Things will get a bit rough down the track so start preparing.
These are the first 4 steps in the 10-step guide to reaching financial freedom on a low to medium income.
Complete these four steps and you’ll reach the first stage of financial freedom: freedom from fear. Major and nasty things are coming, and these four steps will put you in a better position to cope than anything else.
Oh, also eat well, exercise and get plenty of sunshine.
To see the other six steps, pick up the book:
Also available on many other platforms.