Financial Success Secrets for Dummies

When you read the title and it said Financial Success Tips for Dummies, it really means that these tips are for complete dummies. You would have to be a dummy to have not ever read these tips before. You would have to be a super-dummy to have not ever applied these tips before. These financial tips are very easy and super-practical and will lead you to financial success. The key to your success will be self-discipline and a strong sense of commitment and perseverance.  While managing money and exercising financial discipline may not be a very fun activity at first, I can assure that you will be thanking yourself down the road when you have money to spend and cash to spare.

I'm not the first to say that cash is king.  Countless others have said it before me.  However, most people have been content to let those words travel in one ear and right out the other one. 

If you desire to have any degree of financial success, you need to make cash your king.  If you don't have the cash on hand to pay for an item, then don't buy it!  I know this may not be something that your American consumerist mind wants to grasp, but it is the key component of financial success.  Using a credit card for something that you don't have enough cash for is foolish, and it results in a negative cash flow!  Last I heard, you wanted to have financial success - not lose money.

I can almost guarantee that if you switched to a complete cash basis for all transactions you would spend less.  Why?  Because it hurts to spend cash!  You can see the money transferring from your own hand to the cashier's hand.  That cash is no longer yours.  Swiping a credit card is a careless action and prolongs the inevitable.  Using cash carries the immediate consequence of you having less money.  If you want to spend less, pay in cash. 

There are zero advantages to having debt. Some think that debt is good so that you can build a credit score. Dummy News Flash - Credit scores are WORTHLESS! Can anyone logically explain to me why people would go into debt just to get a number that tells them that they are allowed to go into more debt? When you pay for things in cash, you don't need a credit score to buy anything. What about buying houses? It is still possible to get approved for a good rate home loan without a credit score. It is time to call the FICO score out for what it is, useless.

There are a number of methods that can be used to get out of debt. I have included a few books that lay out the best methods for getting out of debt quickly. No matter which method you choose, you need to commit to it and remain disciplined and dedicated to making your debt dissappear. When you have debt, you are not working for yourself. You are working for another company who you owe money to. It is time for you to keep all of the money that you have worked hard for, and let the credit card companies prey on other dummies.

I once heard someone say, "Budgets are for the weak."  How wrong they were.  Even the most financially successful people have budgets.  Multi-billion dollar corporations operate on budgets.  Others allow themselves to think that budgets are boring.  They might be, but they don't have to be.  Planning a budget includes more than just allocating money for bills and groceries.  You can plan fun activities and even vacations into budgets.  It's your money, you can break it up however you please.

When constructing a budget it is best to do it using the "importance" method.  Start by listing all of the things that are absolutely necessary for your living such as shelter, food, and utilities.  Then list the lifestyle add-ons like phone service, internet service, and newspaper deliveries.  Lastly, write down the fun stuff like shopping, vacations, eating out, and other activities.  Go through your list and number the items by level of importance to you and your family.  Allocate your funds accordingly. 

Chance are you have heard all of these "secrets" to financial success. And, chances are that you have heard these "secrets" more than once. Listening and following these tips will allow you to have financial success. However, it will take self-discipline and dedication. If you can remain committed to following these principles, there is no telling what kind of benefits that you can attain. You just have to be willing to go against what is popular and do what is practical.