Well, I’ve now been blogging for a while, so I’d like to let you in on a little more of what is really important to me, and why. Perhaps you’ll find it’s important to you as well. For those of you that know me, you probably already know how much I hate debt, and I’ve found that I do love what I do, at least the launching of my new business. That’s why I started this crazy path that has connected me to many of you, and has given me more late nights of programming and blogging than I care to admit. While I have yet to be able to fully transition to doing JaveLLin Solutions full time, I know it will happen soon. This does mean that I’ll need a decent cash reserve. Because when I move into my own business I will be working on more a milestone (also knows as feast or famine) mode. =) The only way to weather that is to have a solid cash reserve, preferably 3 – 6 months (minimum).
The second half of this equation is minimizing the amount I need to spend each month. Hence the whole debt thing is REALLY bad. Imagine you have $20,000 saved. If you have monthly expenses of $2,000/month, then you have 10 months of savings. However, if you have $5000 in expenses, you only have 4 months. Needless to say, the math is pretty simple, minimize your expenses. The easiest way to do this is eliminate your debt. Get rid of the credit cards, car loan, mortgage, etc.
While there a lot of good reasons to get out of debt, this is the easiest math to present to you. Given the state of our nation and out of control spending, the best thing everyone could do is live within their means and kill off all debt. But perhaps I’ll go into that more another time…
As always, thanks for reading and don't forget to check out our SAP Service Management Products at my other company JaveLLin Solutions,Mike