Let’s face it. Many Americans struggle with their finances. If you are like most people, you were not educated by your parents or at school about how to handle money and become wealthy. But this blog is not about how we got into our situations, but instead how to get out of it and reach financial security and freedom that we all dream about.

Here are the first 3 steps you need to consider in order to get to financial security and freedom.

1. Reduce Your Spending. 
The way you do this is to create a budget. The reason why is because you have to know where your money is going. This might take some time. A simple method is to list all the categories of what you spend your money on… food, clothes, entertainment, alcohol, utilities, phone, cable, mortgage or rent, car   payments, etc…. then decide what you don’t have to have. For example, some people will turn off their cable TV.  For others, set a limit on your spending. What other things can you think about cutting back on?

2. Manage Your Finances
Here are a few basic tips.

If you are a Christian, the first principle should be to tithe. This is not easy for many people, but it is a way that we support our local church and their efforts to help others.

The next principle is to “Pay Yourself.” This means putting aside a little each week or paycheck into a savings account. Preferably, this too should be 10% of your income but even a smaller amount to start is better than none. You need to do this in order to create an emergency fund and to have a large amount in order to make investments.

The next principle is to pay off your existing debt. The technique is referred to as the “Snowball” effect as suggested by Dave Ramsey.  The process is paying extra on your smallest bill and then when that is paid off, take that payment and add it to what you pay on the next largest bill. In addition to this method, when I get a larger chunk of money I take that and pay off my highest interest rate. For example, if you have a credit card with 24% interest, for every $1,000 you pay off you are saving $240 a year in interest!

Here are some more ideas by Robert Kioysaki (author of Rich Dad, Poor Dad) about How to Get Out of Debt to get you started.

3. Create More Income, Especially Passive Income
I learned how to do “the math” early in my life. I know that I can work 40 hours a week for $10 an hour or I can work 10  hours a week for $40 an hour. Of course, we are all looking for those promotions and higher paying jobs. But regardless of how much you earn per  hour, when there are only so many hours in the week and only so much energy you have to put into the day.  And jobs do not go on forever.

You can also get a part-time job for extra income, but that means more hours away from the family and it is not always enough income to help you to get out of debt quickly or to get out of a job situation that you are not happy with.  Or you could start your own business, but for most situations this requires a lot of upfront money to invest.

So the next method to consider is to create passive income. This is money you receive each month that you do not have to put in extra time and effort for. You can create a passive income by investing in real estate, the stock market, writing a book or doing something else you can collect royalties from. The problem is that these take money and often have a high degree of risk involved.

Instead, there is another low-cost, viable method that many people turn to… a home-based business opportunity. The best opportunities are of those with a product or service you like with a company with a good reputation, a product that is consumable, a low financial investment, and with a company that provides coaching to help you succeed.

Shaklee Corporation is a company that has an over 60 year reputation for quality products and business opportunity. The company is the #1 natural nutrition company in the world. They have scientific proof that their products work in the Landmark Study , they have also been used by over 100 Gold Medal Olympic Athletes and have helped thousands of people to create healthy life and financial security.  In addition to a substantial income, they offer a bonus car and incentive trips!

And the good part is you can start this right away and make this the first step to helping you to get out of debt and create long-term passive income to create a better life for you and your family.  Contact me today to find out more about how you can get started.