1st step to being debt free

To be debt free one has to rid of bad debt. What is bad debt? Credit card debt is bad debt. We use credit card for our expense and there is money spent - money gone forever.

I am not suggesting that you cut up your credit card. Reduce your use of the credit card, use cash. If you are prone to spend money online then use a debit card. This will help to only spend what you already have in your bank account. These are effective steps that I've taken to help me reduced my debt.

Yes, number one is to rid off high interest rate credit card debt. Remember, the faster you settle your credit card payment, the lesser you pay interest. You do not want to be "enslaved by the bank". Do you?

2005 Resolutions - modest monthly income

As far as financial resolution is concerned, 2005 is the create-a-stream-of-income-a-month year. Yes, I will build 12 streams of income in 2005. And I've got the blueprint to follow.

Here's is the plan. Every month I will build at least one website to generate a modest income of $300 a month.

1. Research keywords
   
   
2. Build content
   
   
3. Drive traffic
   
   
4. Earn referral fees from affiliate programs
   

My budget for building each website is US$250. Monthly running cost for hosting and PPC advertising, $120. The target cost to earning ratio is 1:2.5 and improve to 1:3.5 within 6 months.

The total costs of building and maintaining these 12 websites are are $3,000 for building cost and $1,440 monthly cost ($17,280 yearly). I may have to take up a small loan of $5,000 for a period of 12 monthly to get the project start. The US$5,000 is working capital before the websites start making a monthly income. The projected nett monthly income is US$2,160.