It seems like everywhere we turn we are hearing about more layoffs and foreclosures. The ripple effect that the housing market is having on the overall economy has been extraordinary. What does this mean for you and your finances? When it comes to real-estate a lot of things have changed. One of the main differences is that banks are a lot more conservative with the money that they lend out. What this mean to you is it may be harder to get a loan. You may be required to put at least 10 percent down and have an excellent credit score before banks will lend to you. A few years ago all you had to do was have a heartbeat and you could pretty much get the type of loan you want. Credit is harder to come by and this is one of the major reasons the real estate market has slow down. I believe it could take years before real estate prices return to their previous levels.
Yes, the economy is not so good at the moment but we should not use this as an excuse not to succeed with our personal finances. We must accept that the economy is not at its peak but that does not mean that we cannot thrive with our own personal economy. What it does mean is that you may need to be creative with your income. Focusing on one or two streams of income is not good enough anymore, it is time to have multiple streams of income. If one stream goes away you are still on track to accomplishing our financial goals because of the other streams you have in place. The plan of action should be to accept that the US economy is not doing so well but do not use this as an excuse and begin the process of finding multiple streams of income!
The State of the US Economy by Adam Mortimer
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Focusing on the processes of creating multiple funding sources is probably better done after one completes his/her Cash Flow Analysis and Credit Analysis. Many of us have worked more than one job for years, sometimes not really making substantial extra money, but gaining tax breaks and knowledge that would otherwise not be available .
At this point in time, it is my desire to create a funding stream that has low overhead, with minimal effort (thinking smart, but not working hard). I kept the saying found in the fortune cookie a long time ago, which read “you will be promoted and advanced through little effort of your own.”
For the right opportunity, an enjoyable one, I believe that I could work long hours again, if it generated a good funding stream or two, or three.