23 February 2013

Balancing the egg is like balancing finances

Balancing finances seems very difficult in these days as there is always some tax to pay and the load of liabilities seems endless. How to stay balanced in a system that manufactures imbalance all the time?

It's like trying to balance a raw egg on a nail in the northern (or southern) hemisphere - it's impossible due to the gravity spin.

This photo was taken on a recent trip to Ecuador at the equator. There is no gravity spin at the equator so it's easy to balance a raw egg on a nail. This is very real. I'm sure the female readers like to know this: Because of there is less gravity at the equator a person weighs in average 2 kilos less. Good news, eh? The objective to loose some weight gains a bit of momentum if started in Ecuador, tee-hee.

Make your finances balanced - like the egg on the nail.

In order to achieve financial stability all that is really needed is a bit of ‘spending less than you earn’.

Remember abundance is natural. To have a surplus is a natural part of your daily action in the market. If you’re in the process of getting there, all you have to do is to write down every little expense you have for a few months. That brings you simply to awareness on how much you spend every day.

You’ll find out amazing things and you will be able to simply ditch unnecessary expenses, stuff which you don’t need.

The all-time famous example is the chocolate bar at the gas station. You can buy those in bulk in the super market and save up to 50%.

All these little savings add up to a substantial amount of money throughout the year.

Another simple money trick is the monthly versus yearly expense or saving. And this is a trick often used by sales persons. ‘It’s only 2 Eur per day’ or ‘Only 20 Euros per month’. The number sounds small but 2 Euro per day times 30 days make 60 Euro per month or 720 Euro per year. Always calculate the yearly expense and then decide if you want to spend the money or not.

On the other side: If you cut unnecessary expenses by 50 Euro (or US-Dollar, etc.) a month that adds up to 600 Euro per year. What can you buy for 600 Euro? – It’s almost 1/2oz of pure gold.

Sometimes you achieve substantial savings if you prepay a service for three to six months. Check on the loan if you have one, you may be able to switch to another provider and save substantially.

Once you have that surplus - called money in the bank – you need to invest wisely, make sure you’ve got taken care of all risks. Currently the greatest risk of course is inflation. You hedge this by owning physical gold and silver.

In summary, be aware of your expenses, buy chocolate bars in bulk, get a feel by calculating yearly savings and expenses. That helps you to feel safe and balanced. Just like the egg sitting on top of the nail.

Balance Egg

Author: celticgold.eu

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