How to Improve Your Cash Flow and Get Financially Healthy and Wealthy

This article provides just the basics about how to create more cash flow and over time -- improve your overall wealth. Realize there is sometimes wisdom in the simply things. So once you read this article, bookmark it as a favorite and come back and read it often. Consider these the three golden keys by which to organize and live your financial life. On the surface they will maybe seem trite and too simple but that is the zen of life. Consider this only a place to start. Take these three tips and research each one in greater detail.

Instructions

Difficulty: Easy

1. GOLDEN RULE 1: INCREASE YOUR INCOME.
   
   There are many ways to increase your income. Again, this article won't tell you how ... but keep an open mind. You can increase your income by getting an advance degree, or you can increase your wealth by having weekly garage sales, or selling all your junk on half.com and Ebay. The idea is to make more money - and if you can do that without increasing your taxable income all the better.
2. GOLDER RULE 2: DECREASE YOUR OUT FLOW (SPENDING).
   
   Here is where discipline come in. If you really want it you may have to go without. Do you really need a new IPod, a new cell phone, a new whatever? STOP SPENDING! I had my first TV set for 20 years and it was a 19 inch set. It worked! Stop being so consumption oriented and save.
   
   Trust me, if the day ever comes when you have to make a dollar last you will do it. So don't wait for hard times - not only should you put away more discretionary income - but you should decrease your spending. Forget about all the personal treats and pampering. If you need to look like the big spender take some inventory and see what else is missing in your life that causes you to buy-buy-buy.
   
   STOP and THINK before you spend!
3. GOLDEN RULE 3: AS A LONG-RANGE STRATEGY DECREASE YOUR TAX RATE - PAY LESS TAX.
   
   Assuming we are talking 'legal', we all have to pay taxes on our income. But there are many strategies for paying a low rate - and here is where a tax advisor comes in.
   
   Also, I realize that you may have to have substantial wealth before you can implement a lot of tax strategies - but learn now. Even if you aren't interested in opening a business, learn about tax write offs for business expenses. You may have a hobby that can allow you in legitimately deduct the cost of your hobby expenses, etc.
   
   Again, the tax arena is vast and my objective is not to tell you how or when to implement tax strategies. My objective is to tell you to research, learn, and implement when appropriate.

Tips & Warnings

• As a general rule, think long-term not short-term and develop these three disciplines for life.
• Make a budget and stick to it - that will help you to limit your spending.
• Track all your additional income - even if it's from a lemonade stand - and then save it - don't splurge.
• Think long-range and create a vision for the future -- attainable goals to measure your success.