Biz Development
by Laurus Nobilis

2011
2010
2009
2008

Many studies on human behavior in management of personal finances show that the common thing for the people who bankrupted is the fact that they were not able to postpone the pleasure – they wanted everything now. This is the point where the credit industry is stepping in. Unfortunately, the „benefit” of banking intervention in your personal finance is devastating for your financial future.

It is wonderful thing to be debt free. Imagine the situation where you do not need to pay installments for the car or your apartment. The only thing that you would have to pay is utility costs. The rest of the money would be yours. That would be your money. You would be deciding what to do with the money. You could invest, travel, etc.

But in order to come to the point of satisfaction of material need in the life there are several steps. First you must be resistant to temptation of advertisers for uncontrolled consumerism. Also, you need to be resistant to aggressive banking advertising that tries to stimulate your consumerism. The advertisements from products and loans are all around. Therefore, you need to be careful.

Secondly, you need the initial income. The income depends from your personal education, effort and time dedicated. At the beginning it may be even hard.

But later, if you save and invest and reinvest, you will multiply your incomes and your wealth. Eventually you will be less dependent of your job, since you will have alternative sources of income.

This approach is more difficult at the beginning stage, since it requires you to save and invest, rather than spend and accumulate debts. But on long run this approach will turn your debts into your fortune. All this is the matter of your approach to your personal finance.

What is financial independence? This is the situation where you owe nothing to anybody. You are the owner of everything that you possess and use. It also means that you have enough free money for comfortable life.

Net wealth is the best way to measure your wealth. Net wealth is the value that you possess deducted by the value that you owe. If you live in the huge house, but the house is mostly owned by the bank, than you are not wealthy. You only have the illusion of wealth. You are wealthy if you have house that is not that huge, but is 100% yours.

The real financial freedom is the state of being debt free. In that case you are wealthy, since all money that you possess is yours. The choice is yours.