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Quadrant I
Families that have negative cash flow and negative net worth
are in Quadrant I.
Prosperity Concierge can help you achieve positive cash flow.
Cash Flow
The first step is to achieve a positive cash flow. And reducing
spending is where you need to focus first. Once your
spending is reduced you can begin to look for opportunities to
increase your income.
Savings Program
Once you have a positive cash flow you need to start a
savings program that allocates 10 percent of your income on
a regular basis toward savings.
Debt Management and Investments
After you have spending under control and you've begun a
savings program you need to focus on two areas: debt
management and investments. The goal here is to allocate a
total of 20 percent of income to a combination of debt
reduction and investments.
Your debt reduction should be tailored so that all of your
credit card debt is eliminated within three years. Above any
amount that you allocate toward debt reduction you should
allocate the balance of the 20 percent toward investments.
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