Managing Your Money: Personal Finance Simplified

“What do you do when you find yourself in a hole? Stop digging.” – Anonymous
Before you can start on your way to financial freedom, you first have to pinpoint exactly how much bad debt you really have. For many people, figuring out how deeply in debt they are is like going to the dentist. You know it’s good for you, but it’s not always pleasant. Some people have already given up. They know they’re in a big hole but don’t want to deal with it.
But if you’re serious about building positive cash flow in your life, you have
to start with the fundamentals of financial literacy. Here’s a quick quiz to get yourself going. Put a 1 next to any of the following questions to which you would answer yes:
_ Do you routinely pay your bills late? Have you ever hidden a bill from your spouse?
Have you neglected repairing the car because of insufficient funds? Have you bought something recently that you didn’t need and couldn’t afford?
Do you regularly spend more than your paycheck? Have you been turned down for credit?
Do you buy lottery tickets in the hope of getting out from under your debt? Have you put off saving money for a rainy day?
Does your total debt (mortgage excluded) exceed your rainy-day reserve?

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