There can be no doubt that debt consolidation is a good start to financial success. However, many people who go to the trouble of amalgamating all their debt into a single all encompassing payment then set about making all the same mistakes again. This then leads to them being even worse off. So, what is the solution? Rack up debt then re-finance it all at regular intervals? That doesn't sound like too much of a plan to me.

Debt consolidation certainly has its place in a financial plan. However, like the giant aircraft carrier, the USS Enterprise, it takes time to turn the ship around. The captain of the Enterprise can make a decision to bring this mighty ship to a complete halt in one second but the ship itself cannot stop on a dime. It's the same with financial affairs. You have to plan ahead.

You can make a decision to improve your finances, sure, but then you have to back it up with action. And old habits die hard, particularly bad habits.

Four steps are required:

1. A decision to change (you have to want to succeed)

2. Financial education (you need greater knowledge than what you have now)

3. A plan of action (without it nothing will change)

4. Discipline to stay with the plan (committing yourself to your plan)

An often over-looked area is the reason behind the lack of financial success of the past. What caused it?

Consider this:

Earning $100 and spending $101 causes pain and distress

Earning $100 and spending $99 eases pain and distress.

It is a simple formula that to earn more and spend less will create a buffer for financial success to commence. You will also need to research the concepts of "assets" and "liabilities" and "good debt" and "bad debt." These are terms that you will need to understand. Once you understand the basics then you can commence your wealth creation strategy. You might also like to consider engaging the services of a qualified Financial Planner.

One final thought - the sooner you start, the easier it will be. Just think of the Enterprise...

This article comes with reprint rights providing no changes are made and the resource box below accompanies it.

Gary Simpson

Gary Simpson lives in Perth, Western Australia.

His passions are writing (of course), reading, karate, body building, investment and growing tropical palms.

His website is devoted to helping people achieve greater success and self esteem through personal development.

Gary is a regular contributor to numerous magazines and newspapers. His articles and short stories appear in many forums. Thanks to the wonders of the internet, they are now being shared worldwide.

He has written eight books:

LARGE VOLUMES:

- "Journey,Life and Destiny" - personal development (2 vols)

- "How to Save $1000's and Increase Your Personal Net Wealth"

- "Brain Training - Affirmations to Strengthen Mind and Body"

- "Strike Back 1" - Self Defence Instruction Manual

- "Strike Back 2" - Self Defence Instruction Manual

SHORT VOLUMES:

- "The Power of Choice" (FREE e-book) - a popular story about a man looking back on his achievements from the hereafter. It is a poignant story that has received accolades from all over the world - from Iceland to Canada to Great Britain to Morocco to New Zealand to the Czech Republic to the USA - and dozens of countries in between.

The Power of Choice is a free resource and can be downloaded directly from Gary's website.

- "Using Motivation and Self Esteem to Excel in Everything You Do" (FREE e-book) - valuable resource to introduce newcomers to the wonders of personal development. This book is available on request. You can secure your copy by leaving your name and email address (no "hotmail" addresses accepted) at his Motivation & Self Esteem for Success website.

Gary's unique approach has been shaped by his 35 year pursuit of karate and his 15 year study of the principles of motivation. He has two personal mottos. These are:

"Excellence of Execution."

and

"Imagination is Infinite."

You can learn a great deal about all matters regarding motivation and self esteem at his website. You will find articles, interviews with achievers, motivational messages and other material. You can even opt to receive free material by visiting the "zenspiration" page.

The Motivation and Self Esteem for Success website was constructed by Linda Caroll who Gary has called the "Kyoshi of Website Design" (In karate terminology Kyoshi means "Polished Master"). Visit Gary's website to see for yourself.