Saving for the Future While Paying Off Debt

How can you save for the future when you're still paying off the past?

LET YOUR MONEY GROW

There is one simple thing that separates the rich from the poor – this one principal is the reason the rich build more and more wealth, and the poor get even poorer, and traditional streams of education fail to teach our youngsters meaning most are faced with having to figure it out for themselves… and most never do.

But first, let’s look at defining the problem in simple terms so we’re all on the same page – what’s needed is some basic definitions of common terms that are often misunderstood.

One of those big problems we face as a society in this modern age is debt. More specifically – bad debt.

There are two types of debt you can have – good debt and bad debt. The difference? Well, the simple defining difference is that bad debt is credit you obtain and then use to purchase liabilities – or several liabilities. This could be taking out a loan for a new car, or purchasing this years holiday on your credit card. Good debt is credit that you leverage in order to purchase assets – this could be taking out a mortgage to purchase a rental property that’s going to return you a second, almost passive income.

The first thing we should probably clear up is the definition of an asset and a liability – they are not what most people think they are! For example, the house that you own and live in – is it a liability or an asset? Let’s make the assumption that you’ve been lucky to pay off your mortgage and you own it outright – how would you answer that question bearing that in mind?

Most people believe their home is an asset – especially if they have no mortgage on it. How can it be a liability when I haven’t got any credit to support it’s ownership and I have a store of value in the property’s equity? Well, according to Rich Dad Poor Dad, the simple definition of a liability is something that costs you money to own, and an asset is something that you own that provides an income over and above the expenses incurred to own it.

So, in the case of your house, unless you’re renting it out and making a profit, it’s a liability – it costs you money to own it and live there! You pay water and electricity bills to keep it operational, you pay council tax for the pleasure of it existing within a certain jurisdiction, and you probably pay insurance to protect the potential downside. If you’re not charging rent to someone to live there over and above YOUR costs then it’s costing you to own it. It’s worth mentioning also that if you rent it out but don’t make enough from the rent you’re charging to cover the expenses then it’s still a liability – the defining difference is whether it achieves positive cashflow or not.

Hold on, I hear you cry, but I don’t have a mortgage and I can sell my property for hundreds of thousands of pounds if I wanted to so it’s an asset because when I sell it I’ll make lots of money! Erm, not quite. You see, you only realise the paper value stored in a property like that once you sell it… and you can only sell it for what someone is prepared to pay. For example, you might have been unfortunate in a relationship and going through divorce where you need to sell quickly – you’re a highly motivated seller, and there are no buyers in the market for your type of property who are prepared to pay what you want to sell it for. All of a sudden, the value in your assets diminishes considerably simple because of someone else’s perception of value.. which could be drastically different to yours! You only realise the value in an asset like that at the point of sale, and there’s no guarantee you’ll find any buyers at the time you’re looking to sell, and there’s no guarantee that if you find a willing buyer that they’ll want to pay what you think it’s worth. This doesn’t sound like a very reliable asset to me – especially given the potential return can so easily change based on multiple variables that are completely out of your control. Yes – you might sell and make a profit, but you might equally have to sell at a loss, and you won’t know which it’s going to be until the point of sale.

Now that we’ve clearly defined good and bad credit, and the definition of an asset and a liability, let’s have a look at the key problem most people face when it comes to finances – financial education.

The one key difference between the rich and the poor is this; the rich know how to master their money and create assets that provide multiple streams of income – more simply, they understand the art and the science of putting their money to work in a way that means their money makes them more money without the controlling person having to exchange time for more money.

But this is exactly the opposite of what we’re taught in school, where the focus is on finding a skill, becoming qualified, and then finding a position where you can exchange your time for money for the rest of your life.

Okay, but what’s wrong with that?

Well, nothing if that approach aligns with your values and allows you to achieve your goals in life. However, the key limitation with this approach is this – you only have 24 hours in a day like everyone else, so what happens when you reach a point where you’re exchanging all those hours for an hourly wage? Well, when there’s no more hours in the day to exchange, you’re not only burnt out and unfulfilled because you have no time to direct towards the things you love in life (let’s face it, most people are far from doing a job they love), but you have now hit your earnings ceiling. How do you earn more when there’s no more time to exchange? This is the key limiting problem with this approach.

Yes, most of us will have to start with this inefficient exchange in order to generate our first income, but it’s what we do with the fruits of our labour that really defines where we’re going to mature into wealthy people or poor people. For those of us who have been lucky enough to have some financial education, we start to do things with our money that let it grow all on it’s own. For those who don’t, they spend all their spare money on holidays, new gadgets, and toys – aka liabilities!

This behaviour sends us into a downwards spiral that can be extremely difficult to get out of. You earn money, and use that money to buy liabilities. Those liabilities increase your monthly outgoings, meaning you have to exchange more time for money to increase your income so you can continue to service the new liabilities you have purchased. You increase your income further so you again have some surplus (but you’re now working 12 hours days and barely seeing your family), and then you use that surplus to purchase more liabilities… and so the vicious cycle continues. Can you see now why this behaviour is so destructive to people’s finances? Can you see why we have such a problem with bad debt these days? All because financial education is considered unimportant by our educational institutions. This needs to change, and this change starts with you educating yourself, so you can go on to educate others and set the next generation up for greater levels of financial success.

So, how do the wealthy grow their money?

There are multiple strategies people use, but they can all be classed as one form of investment or another. You could invest in stocks and shares that not only appreciate in value but that pay you a dividend throughout the year whilst you own them. You could invest in the wild west market of crypto-currencies and benefit for the massive bullish gains we’ve seen in those markets in recent years (I was trading Bitcoin at $900 at the start of 2017, and it’s now broken right through $10,000 – all in under 12 months). You could put your money into cash-flowing investment properties, or you could either start your own business or invest in one.

There are so many strategies you can employ to make your money work for you, rather than you working for money. All it takes is the commitment to educate yourself in whatever vehicle you choose and get started.

I’ve written several blogs on trading and investing that you can find by searching those tags so please feel free to check those out to get some more information on these strategies – there’s also loads of great resources on-line, but there’s also a lot of shit. Be careful and do thorough research from reputable sources.

You can also join my trading education group on Facebook by clicking the following link: LG Trading

You can find some of my trading and investing blogs at the links below:

• Trading: The Basics

• Understanding The Stock Market & Trading

• Financial Wealth: What, How & Why

Enjoy! Please drop me a comment if there’s additional content you’d find value in me covering on this subject!

Source: https://littlegreysays.com/2017/11/29/let-your-money-grow/ 

HOW DEBT CAN GENERATE INCOME

Robert Kiyosaki of Rich Dad Poor Dad talks about how debt can generate income.

3 Tips for Eliminating Credit Card Debt

3 Tips for Eliminating Credit Card Debt

Healthy financial habits will have you sleeping like a baby

If you’ve ever woken up in the middle of the night panic-stricken about the amount of debt you have racked up, you’re not alone. Credit card debt is the second-most-common type of debt after mortgage debt (and I’m going to assume we all know that your house is not an asset and therefore your mortgage is not considered good debt, right?). In fact, the average American family owes $8,377 in credit card debt, according to personal finance site WalletHub, which analyzed credit card debt trends in 2016. That’s certainly enough to keep someone up at night.

As a reminder, there is good debt and bad debt. Good debt is debt you use to acquire assets. Bad debt keeps you trapped, pulling you back instead of moving you ahead. In most cases, credit card debt is bad debt. And that’s why you must get rid of it, because it’s serving no positive purpose in your life. Here are some suggestions for obliterating your credit card debt once and for all:

1. Pay off new credit card charges every month

Credit cards have their advantages so don’t cut them into pieces or put them in the freezer. Instead, use them as a convenience, as a record-keeping tool, and as a way to verify to other creditors your ability to be financially responsible.

From this day forward, if you so agree, do not accumulate additional credit card debt. If you charge an item to your credit card, then pay that amount off when the statement arrives. If you have credit card debt that is more than 30 days old, then pay off all newly acquired debt and put a plan in place to pay off the old credit card debt. Why?

Credit card interest is always compounding, and over time it quickly adds up. Let’s say you have $100 in debt and it accrues 20% interest every month. In your first month, you will be charged $20, which gets added to your original debt. The next month, you are again charged 20%, which now comes out to $24. So after only two months your debt has gone from $100 to $144. Yikes. That’s literally throwing money away and nobody can afford to do that.

2. Don’t charge the small stuff

It’s astounding how quickly all of our minor daily purchases add up—from your daily coffee fix to a magazine at a convenience store. And it’s becomes very easy to justify all those small purchase at the moment. Only $3 for a lip balm because I accidentally left mine at home? No problem! But at the end of the month, those purchases really do add up.

Using physical paper money creates tangible awareness of how much you’re dolling out each day. It might even cause you to reconsider some of those small purchases when you find yourself running out of cash too quickly. Starting today, try using cash for any purchases under $20 and see how your spending habits adapt.

3. Pay off existing credit card debt

Robert and I were in a great amount of bad debt years ago—around $400,000. It was incredibly stressful. Talk about sleepless nights! But we paid off all of our debt in less than 10 years, including credit cards, car loans and home mortgages.

For our credit cards, we came up with an extra $100 in income per month. How? By getting creative. We then applied that additional $100 to our monthly payment on only one of the credit cards and paid the minimum payment plus the extra money on that one credit card. While we were focused on that, we paid only the minimum amount due on all other credit cards.

Once the first card was paid off, we applied the total amount we were paying each month on that card to our next credit card. This mean we were paying the minimum amount due on the second card plus the total monthly payment we were paying on our first credit card.

Continue this process with all your credit cards—with each debt you pay off, apply the full amount you were paying on that debt to the minimum payment of your next debt. As you pay off each debt, the monthly amount you are paying on the next debt will escalate.

It is possibly to become debt-free—often within five-to- seven years—but you must make the decision to do so and start today.

Source:http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/April-2018/3-Tips-for-Eliminating-Credit-Card-Debt.aspx 

The 4 Money Principles That Will Make You Rich

Everyone wants to be rich, to have enough money to live and create their dream life without the need to work for someone else to make that money.

But most people believe that it is only the very lucky who will get there, or have to rely on a lottery big win to ensure that happens in life.

Here’s the truth – ABSOLUTELY ANYONE can be rich enough to have the life of their dreams with commitment and dedication.  

All you have to do is know and trust a few simple money principles and keep your eye on your financial goal.

Here are the four principles tried and tested that will get you to your goal.

Step 1: Start investing in your future today and DON’T STOP!

The single most important principle, and the younger you apply it the better, is to pay your future self a portion of every pound you earn right now.

A good place to start is aiming for 10% of your Gross Salary each month to go straight to your future self in Pensions or Investments.

Reason being if you use a portion of your money each month to generate income when you choose to retire from working, you are creating security and income when the days come that you don’t want to or can’t work.

To aim for the Goal of financial freedom and retiring earlier than normal retirement age of 65 – you want to aim for as high a percentage of your Gross Salary as you can comfortably live, and usually at least 25% and above.

Understanding the power of Compound Interest on your money and investments, where the natural laws of time allow your money to grow and multiple faster, is key to this wonder of saving a portion of your money each month.

Normal savings accounts currently offer between 0.1% – 1% interest rates if you are lucky, so do all you can to feel comfortable and research investing in Stocks and Shares to get the maximum return on your money you are investing.  

A good place to start might even be to look at ISA accounts (Cash or Investment) where the government will not charge you Tax on your interest increases up to a limit of £20k a year per person.

If you feel confident enough to – Put your money into the stock market, giving someone else your money for short term to make more money with on their efforts and create passive incomes from your savings too.

Never pass up the opportunity for FREE ADDITIONAL Pension contributions from your employer towards your future.  

Most companies offer additional pension contributions as a way to effectively pay you a higher wage, without the tax costs to themselves.  

If you company offers your matched contributions, make sure you sign up to the maximum percentage you can afford as for every wage you put in they are also adding even more money to it for your future.

Want to become Financial Free? There is even some simple maths to find out the exact amount of money you need to have saved to generate income for life.

Simply take the total amount of money you need each year to live and survive, or have the life of your dreams with, and multiple that by 25 to give you your exact Financial Freedom Goal Number.

Next is to work on a plan to save and achieve it.

Step 2: Spend your money like it was your last penny.

Rich people who stay rich for life spend their money smarter than most people.

They take time to find the best deal, time to consider if they really need that purchase and make sure that it is an investment worth their while and won’t lose money.

Too often we end up mindlessly spending money on luxuries we don’t really need, so perhaps give yourself a 24 hour cooling off period each time you “Click to basket”.

Check if you truly want that item, have found it at the best price possible, before you hit the order button.

Take time to be more mindful with your spending and you will find that the pennies all start to add up quickly to a small fortune.

Step 3: Keep your living costs as low as you can

Minimise all your expenses and keep looking to exchange your hard earned money for what you truly love only.

When you start a journey to financial security or freedom, we need to take time review our spending habits each month and make sure what we spend money on is worth it.  

Regularly look for ways to reduce your subscription spending – think car, home insurance, phone contract costs, credit card charges and ask the company for a better deal.  

You can save potential hundreds of pounds back into your pocket with a 10 minute phone call and a little effort with comparison websites.

Test your spending every few months by taking non-essential bills (such as that magazine subscription or gym membership) and go “cold turkey” for a week or monthly only.  By setting yourself a temporary goal of going without for only a short time, the sacrifice won’t seem so tough and you never know what you might find out about your spending patterns in the past.

Use the 10% Overpayment Rule to get rid of as many debts as you can, if you can without any overpayment penalties.

By paying 10% more on your monthly repayments for any debts, such as your home, car, credit cards and store cards you will very easily and without noticing pay one extra monthly amount towards that debt each year.

That overpayment could take years off your payments, returning more money to your pocket sooner than the bank or company would have liked.

Step 4: Start your own side business.

We live in a world where a single source of income, one job all your life, is no longer guaranteed.

We also live in a world where we have information and resources are literally at the touch of our fingers via the Internet, and absolutely anyone can put in the time to start their own side business.

Look to start a side income to add even more money to build your fortunes with, and also something you are passionate about if possible.

When you are able to control and generate profit from your own business, rather than work for an Employer, there will be no limit to the confidence it will bring in our life and to your earning potential.

By diversifying your household income as much as you can with a few income streams is not only a smart thing to do, but a great way to protect your financial security in the future too with your own talents and merits.

Think about turning a hobby into a small weekend business, or perhaps using a talent from your main job as a freelancer for some income in the evenings.

Over to you now…

Source: https://blog.themoneyshed.co.uk/the-4-money-principles-that-will-make-you-rich/

Financial Advisor Told Me To Invest Instead Of Paying Debt

That's a big question - is it better to invest my money and pay of my debts with my returns, or should I get my debt cleared first?

You'll get different advice from different people - so who's right?

Check out this great video that should answer this very question for you!

Saving for the Future While Paying Off Debt

Check out this short video on how you can save for your future and repay your debts!

Martin Lewis on Debt Problems: Where to start and what to do

Are you struggling with debt? Well you're in safe hands with this video from Martin Lewis of Money Saving Expert

Check out his top tips for how to start managing your debt...

... and where to start!

Your Personal Wealth Diary

There is a difference between getting rich and having wealth. I want to teach you to get rich, but I really want to teach you how to get wealthy. You can get rich quick but nobody gets wealthy quick. Wealth is the abundance of something in such surplus, that no condition can destroy it. It’s abundant—you can’t get rid of all of it. There’s so much that no matter what happens around the world, it can’t go away. Making a lot of money is one thing—getting wealthy is something entirely different. How do you learn to do what wealthy people do? To start, stop saying things like, “Money won’t make me happy” because that’s false. People who are just getting by talk about money as though it’s a bad thing—but I promise you having buckets of money isn’t going to be a reason you’ll ever be unhappy. I want to outline the mistakes that most people make that the wealthy don’t.

#1 Not Using Debt—You’ve been told don’t use it, never use it, it’s evil. My boy Dave Ramsey says all debt is bad debt. If you do your homework and don’t just listen to the popular thinking that debt is somehow killing everyone, you’ll understand there are different kinds of debt.   There’s time to use debt and there’s time not to. When do you use debt? There’s no always in anything. All big companies use debt. Debt can be used to expand a business. Debt is my ability to go into the marketplace and produce more income, not buy more things. I never use debt for consumption. Consumption is things like groceries or cars. Not all debt is created equal.   I use debt to build income. Debt is me going to the bank to borrow money to build my business. Look at Apple, they have $270 billion in cash. They borrow money from Japan. Why? Because they can use debt cheaper to explode income, to invest in equipment, and to do research to blow up their top line. I have over $200 million in debt. I’m not paying it—the tenants who live in my apartment buildings are paying down my $200 million debt while I get the write-off from the interest they are paying. So when do you use debt? When it makes you more money, when you get a write-off, and when you can expand your business. Don’t believe that all debt is bad—get wealthy by using debt smartly. 

#2 Money Shortage Mindset—If you were brought up poor or middle class you have a certain mindset. You believe that there is a shortage of money. Money doesn’t grow on trees, right? Well, there is more money on this planet than there are trees. You can print money faster than you can grow a tree. Money, here in the US, was actually printed from a cotton bush. By definition a bush is a tiny tree. That paper was cotton, so it’s not true that money doesn’t grow on trees. Money is everywhere. Go outside and look around—the cars, the buildings, the people wearing clothes and ties, the retail centers, and the purses. There is no shortage of money. If you were brought up poor or middle-class you were brought up by people that believed money was in shortage. Turn the lights out, eat all your food, save the pennies—look, a penny is a PENNY. Fix this money shortage mindset. Start looking for money. See how much money is around you. There is abundance and opportunity everywhere. Get wealthy by seeing abundance. 

#3 Looking at Prices—You know the old saying that if you have to know the price you can’t afford it? That’s actually not true.   Why are you looking at prices? If you’re looking at price you already have deceived yourself. Price is not your problem.   The price is not what you are buying. I did this for years—I’d go to a restaurant and look at the prices on the menu. Do you think the super wealthy worry about the price of a steak or a cup of coffee? Wealthy people don’t worry over price. They aren’t worried over a $30 book or a $1000 program. Their attention is focused on success. Be focused on your income. The average American makes $52,000 a year where the average cost of living is higher than $52,000 a year. 76% of all Americans live paycheck to paycheck in the wealthiest country in the world. It’s no different for a person in America than it is for a guy in India making $2 a day. Neither has enough income. It’s no different. All the attention is on what things costs. Shift your attention away from price because price is not your problem. The problem is you don’t make enough income. Looking at prices is an indication that you’ve contracted financially. Get wealthy by focusing on your income, not prices. These are just a few ways you can get started on the road to wealth. This is not a get-rich-quick scheme where if you start doing these things you’ll be a millionaire next week. These are rather broad principles that you need to embody if you ever want to become wealthy. Have you dreamed of becoming not just rich, but even super rich? Quit focusing on prices, refuse to see money as a shortage, and know that not all debt is bad. Get on Playbook to Millions for much, much more to get you on your way to your first million. People are doing it, when will you? The reality is there are two options, invest in yourself or give up on ever being wealthy. Which will it be?

Source: https://grantcardone.com/blogs/grantcardone/your-personal-wealth-diary

When’s the Last Time You Calculated Your Wealth Number?

Written by Kim Kiyosaki | Thursday, December 14, 2017

Read time: 4 min

Surprisingly, it’s time (not money) that will gauge how much you need to be financially free

Brace yourselves. I’m starting off with a question that could very well make your palms sweat and pulse race: If you (or you and your partner/spouse) stopped working today, how long could you survive financially?

If your answer is less than a month, sadly you’re not alone. According to a 2017 GOBankingRates survey, more than half of Americans (57 percent) have less than $1,000 in their savings accounts. And even worse, 39 percent have no savings at all. Now that’s a number that makes my palms sweat.

I’m sure you can see why I asked this critical question—it’s one that most people will never stop to calculate. Perhaps that’s because they feel invincible. Or maybe because it’s just too darn scary.

This is why, when the unexpected happens—like a job layoff, an illness, an accident or a divorce—so many people are not financially prepared. Unfortunately, it’s precisely at the time of the unexpected event that most people, for the first time, experience the reality of where they are and how long they can survive financially. And that’s the exact moment where you will be faced with the cold hard truth of your situation.

What Do Need to Live On, Anyways?

For most people, calculating what they want and need means thinking in terms of money. For instance, “I need $1 million to live on for the rest of my life.” And even when you talk with financial planners, they will mention your nest egg, and discuss how much money you should set aside for retirement.

However, there is a far better way to answer the question. Instead of measuring your wealth in terms of money, it makes more sense to measure your wealth in terms of time. And that, ladies, is what I call the Wealth Number.

When it comes to discovering your Wealth Number, there are two important parts to the question: “If you (or you and your partner/spouse) stopped working today, how long could you survive financially?” Let’s break them down:

1. If you stopped working today…
   That means there are no more paychecks coming your way. Something has happened and you can no longer work for a business or job. Therefore no income is coming in from those sources.
2. How long could you survive financially?
   We’re talking about survival at your current standard of living—not if you downsized your house, sold your car and rode the bus, stopped eating out, and gave up your manicures. With your current level of expenses in mind, how long would your money last?

Defining Terms

Let’s get clear on some basic definitions to make sure we’re on the same page. When it comes to calculating your Wealth Number, your money consists of your savings, CDs, retirement accounts, liquid stocks (stocks you could sell today), physical gold and silver you have in your possession—basically anything that can be converted into cash today. It does not include selling your jewelry, your furniture, or your second car, for example, because that would lower your current standard of living. It does include cash flow from dividends, rental real estate, and other investments that produce income without your effort.

Perhaps you’ve done this calculation for yourself before. Well, I encourage you to do it again now. Why? Your finances are dynamic; they are constantly changing. You may come up with a similar answer as the last time you completed this exercise, or you may be surprised by your new outcome.

Do the Math

It’s all too easy to lie to yourself (or incorrectly guestimate) about how much you actually spend on monthly expenses. So be sure to include all your expenses because you want to expand your financial means to meet the lifestyle to which you aspire, not live below your means.

Use this equation:

Your wealth number = Your available money / Your monthly expenses

Once you put these numbers into a spreadsheet and divide how much money you have available by your monthly expenses, you end up with your wealth number. What does that mean?

Your wealth number is measured in time—in this case, in months. So if your wealth number is 24, that equates to 24 months. If your number is 6, that equates to 6 months. And what does that mean? Your wealth number is the number of months you could survive if you (or both you and your partner) stopped working today.

So, what’s your number? Less than you thought? Hint: It’s rarely more than people think.

Welcome to Reality

For most, the outcome of this calculation is sobering. It brings you and your money face to face, which can be uncomfortable. But it is the most realistic and telling demonstration of exactly where you stand today financially.

For many people, their number is 3 or less. That means they could only survive without paychecks for three months or less. That means they are pretty much living paycheck to paycheck. And in some cases, people actually have a negative number, which means they are spending more every month than they are bringing in.

It really doesn’t matter what your number is. Your number is simply your number. You don’t need to make it right or wrong or continually stress over it. It is what it is. Period. Now you know something that most people will never take the time to figure out. And most importantly, now that you know, you can take action and change it if you choose.

So take a look at your finances. If you are unhappy, or even upset and sad, about that number in front of you—good. That just means it’s time to take some action. Consider enrolling in a free education workshop to learn how to build streams of long-term cash flow, or explore some free tools to help increase your financial intelligence. It’s never too late to start making some changes that will enhance your future.

Source: http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/December-2017/When%E2%80%99s-the-Last-Time-You-Calculated-Your-Wealth-Nu.aspx

How To Get Out Of Credit Card Debt

Have your credit cards run away with you, leaving you facing a massive monthly bill that just about covers the interest? We feel you.

Check out these tops tips for paying down your credit cards so you can be free from them once and for all!

Easy Steps To Get Out Of Debt — Explained By A Certified Financial Planner

Are you struggling with high levels of consumer debt? Are you so stuck you feel like there's no way out?

Then this video is for you.

Dealing With Debt - Overcoming Your Problems

Debt steals your freedom; it's even more virulent than cancer. You must do everything humanly possible to get out of debt.

You're in debt today probably because you lived above your means in time past or got into a messy business that drove you into debt. Three things I hate most in this world, debt, poverty and sickness. Debt could have come from your inability to control your impulses or as a product of the unexpected. Whatever the case may be you have debt and we need to deal with it squarely and eliminate it.

My guide won't just get you out of debt rather you'll get out of debt way faster than you ever imagined.

Follow the following steps to get out of debt now:

1. Control Your Spending

You can't spend money you do not have. Therefore, if you want to be debt free, you must spend less money than you earn. Start by eliminating the things you don't really need from your scale of preference i.e.. learn the act of prioritizing. How much money would you have to spend if you eliminated newspapers, magazines, cable TV, second cars and cut back on eating out?

2. Decide How You Spend Your Money

Every charity, church and good program is asking for money. "Just give a dollar." These dollars add up. If you have a job and a good income you can spend as much as you can. But if you're trying to be debt free then don't let other people tell you how to spend your money.

3. List All Your Debts

This is a very important move; it shows your seriousness to become debt free. Get a piece of paper, a Google sheet or a notepad on your computer. This list will help you have a decent idea of how much you owe. This eliminates guesswork. Another important aspect is to rank this debt from the smallest to the most expensive.

4. Set Periodic Goals

Becoming goal oriented is the best gift you can gift yourself, in all spheres of life. Goals help us churn really hard matter into tiny pieces. From your income you can set a target to pay a certain percentage monthly. The big picture of this goal oriented mission is to pay off all your debt and regain your freedom. Once these goals are in place, it will be almost impossible to ignore them. This will push you faster into accomplishing your goals than you would have originally anticipated.

5. Start Paying Off Your Debt From Highest To Lowest

Take every penny you receive above your basic living and all of the savings and apply them to your debt, Start by paying the highest then narrow down to the least. One by one pay off your debt. This will give you confidence and help you become debt free

6. Sell Almost Everything

Sell the things you don't need to raise money. It could be your TV, used books, furniture, clothes. The aim is to raise more money and pay off your debt. There's always time for stuff when you're debt free so sell them and pay off your debt.

7. Work, Work, Work

This one is mind-blowing; To pay off the faster you can work more. Overtime, second jobs, babysitting. More money simply means more debt repayment.

Let me stop here for now.

Gideon E. Richards M.D

http://gideonike.com

I'm a medical doctor, blogger and avid reader. Above all things I love dishing out life changing tips. Thanks for stopping by to read my post.

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