Welcome to Sunday Morn Musings.  This is my weekly free fall – writing about whatever it is that occupies the mind on a Sunday Morn.  The idea of a “no topic” posting is the stepchild to a blog I used to write:  Four O’Clock Thursdays which is still up there if you want to check it out – more likely, I will repurpose and republish some of those posts here over time.  On Sunday Morn Musings the topic may be about blogging but just as likely it may not.


Last night I was listening to a radio talk show – a money talk show.  I like to tune into this show as a way of keeping myself somewhat current with what is happening in the world of finance.  This is a show that is targeted to the average person, people like you and me; not bankers, not economists.  Tuning into this show does not make me an expert but at least I get a good layman’s perspective on the world economy and how that impacts my country on a larger scale of things and me on a minute scale of things –  I also get some good tips on how to manage money.  It’s my way of improving my financial IQ.


On yesterday’s show the host challenged us to create our own economy.


Create my own economy?


As I listened I realized how powerful that challenge was.


I also realized that without knowing it I was already creating my own economy and could do a lot more to make it a much healthier one.


The more I listened, the more the idea of a personal economy appealed to me.  The imagery is far more powerful than the one that comes to mind when you say budget.


But an economy is more than just a budget.


Creating your own economy is just another term for personal finances which includes income, budget, asset growth, net worth, wealth preservation and that most sought after position of all:  the cashflow. Cashflow is the money you have left over after the bills are paid.


The talk show host went on to say that in your economy, everything you own should cashflow.


Well, there it was.  Pure and simple.  That is why my net worth suffers from anemia.  Most everything I own drains and costs rather than contributes and that it seems, is also the main problem with the world economy right now, but there are bright spots, countries like Brazil and China are enjoying good economies compared to most other countries; he posited these two countries vs what is now being termed as the Greek Tragedy.


You can’t do much to make a difference to the world economy, but you can to make a difference in your own.


To create a healthy personal economy you have to turn the tables and start thinking differently.


Whether you are employed or are in business for yourself, how much of your money do you put to work for you?  For that matter how much do you pay yourself?  You see it appears that most of us don’t do a good job of our income and outgo.  We get the money and pay bills.  We may contribute to some sort of a retirement plan and perhaps put a few dollars into a savings account.  The reality is that most of us don’t even do these bare minimums, let alone grow our net worth.  Even high earners are up to debt in their alligators.  Now according to the talk show host, debt does not necessarily have to be a bad four letter word, there is such a thing as good debt, and that is when the debt incurred actually produces cashflow. Most personal debt produces outgo.


That got me thinking.  The concept is not new to me and I am sure it is not to you.  But it got me knoodling.


I wrote out my financials.


Not a pretty picture.


Too much red ink.


Now in my case a lot of the red ink is tax deductable.  Items such as communication, transportation, insurances, accommodation and utilities are partially if not completely tax deductable as my businesses are  run from my home office and each qualifies as a home based business.   Still, when examined with microscopic attention the economy on the home front needs a lot of restructuring.


The biggest gaping hole was that the “economy” was not set up for preservation of capital.   That according to the talk show host should be job one because preserved capital grows, and as it grows it can be put to better and higher use so that the resulting cashflow is passive rather than linear.


Aha!  But isn`t that what you and are trying to do with internet marketing?


Yup!

We’re on the right track.


But don’t you just love the concept of creating your own economy?


Somehow the sound of  “creating your own economy” has a much more powerful ring to it than budgeting


Are you ready to set out and create your own economy?  A buoyant one?  Let’s go for it.

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