Why you need a Closed Circle, Part 2

As discussed in my other blogs on the Closed Circle Budget, when creating and managing a Closed Circle we should break down our spending into Obligations, Necessities and Wants.  Obligations are items that you are obligated to each month, Necessities are things that are needs but are not obligated to, and wants are your material wants.  For more on creating a Closed Circle in more detail, please see my other blogs.

One of the main reasons we create a Closed Circle is so we can have regular overflow in our life.  Overflow is the abundance of finances that come in above and beyond your closed circle.  Once you have answered the question as to “How Much is Enough?” you can then decide where overflow will go.  Overflow can be used for many different things. Overflow can be used for Accumulating Wealth and Creating Passive Cash Flow (investing).  It can be used to pay debt faster, give more or to help you achiever other goals that you and/or your family may have.

Let’s face it. The majority of people in the world are not operating on good financial principles.  2 of the main superpowers in the world, the United States and Europe are both in great financial trouble!  Do you think any of their financial troubles could have something to do with the way they spend?  Don’t get yourself into financial trouble and become a slave to debt, instead take control of your finances with a Closed Circle!  To learn more about the Closed Circle, read more of our blogs, contact us, and come attend one of our Financial Boot Camps!