How To Achieve A Debt Free Lifestyle

Having too much debt seems to be a problem that a lot of people today are facing. Debt can be crippling because, the deeper you get into it, the harder it is to get out. The problem is compounded by the fact that having a lot of debt, especially unsecured debt like credit card debt, is more expensive if you have a bad credit score.

If your debt situation is particularly severe, you may be asking yourself how you can get rid of debt. The first thing to do to get rid of debt is to admit that you are facing a serious problem that needs your full commitment in order to resolve it. Here are steps to being debt-free:

Figure out how much debt you really have

First, you need to do what you should do whenever you face any serious problem: determine the nature of the problem and how bad it really is. In other words, you need to take careful account of your debt situation. When in debt, especially if you have multiple sources of debt, it can be tempting to avoid facing the truth about how much you really owe altogether. So, sit down with a piece of paper or a computer spreadsheet and simply add up all of your debt. The number you come up with is what you will target to become "zero" in the very near future. Imagine the relief you will feel when that happens!

Put your debt into categories

As you add it up, put each type of debt into its own category. The reason for this is that different types of debt should be treated differently. Examples of relevant categories include credit card debt, department store card debt, mortgage, second mortgage, auto loans, and equity lines of credit. Also, if you have multiple credit cards, for example, be sure to list each one separately.

Arrange in order of which to pay off first, by interest rate

Now, next to each debt instrument you have, write down the amount you owe and the interest rate for each one. Most likely, your credit cards will carry the highest interest rates, for example. Now, re-copy your list in the order of highest to lowest interest rate.

Pay off one at a time

Put together a plan to pay off each of your cards, one at a time. Each month, start by making the minimum payment on each of your cards, except for the highest-interest card. For that one, pay it down as much as possible each month. As you successfully pay down each card, you will get a feeling of accomplishment that will encourage you to keep fighting your debt monster until it is completely dead. By paying off the highest interest cards first, you will be freeing up more money each month to pay down your remaining debt faster.

Work on your credit score

One of the smartest ways to get rid of debt that many people overlook is to take the steps necessary to improve your credit score. You could potentially save a lot of money per year in interest payments simply by improving your credit score. The reason is, a better score will mean you will be eligible for lower interest rates, and it is the high-interest rates associated with debt that keeps people in debt longer.

Buy what you can afford.

If you are an individual who wants to have a debt free lifestyle then you shouldn't spend more than you earn each month. You should use a credit card and think of it as a useful tool to help you pay for things that you can pay off at the end of the month, but not consider it as an extension to the amount of money that you have to spend.

Debt counselling.

This involves working with a real professional debt advisor. They can show you various methods and possible means you can take to become debt free. An advisor can guide you while lending their knowledge of each step of the process. You will be able to choose the one most suitable for you.

If you are looking to get a debt-free lifestyle then you will need to keep track of and know what your finances are, and you will also need to resist the temptation to spend more than you have. You should also ensure, as time passes, that you are reducing the amount of overall debts that you have, even if this process is very slow.

For more information visit [http://www.debtfreeplace.com]

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Andreas M. Antonopoulos Educates Senate of Canada About Bitcoin (Oct 8,...

More Andreas!!!

Background on the “Study on the use of digital currency”:

In Canada, the public debate surrounding Bitcoin and cryptocurrencies is currently being formalized as the official “Study on the use of digital currency”, a consultative exercise conducted at the initiative of the Senate of Canada’s Banking, Trade and Commerce committee.

Although the Senate of Canada exerts less authority than the House of Commons, its standing committees have proven to be an influential source of expertise and opinion. It also enjoys considerable international attention: according to Stuart Hoegner, general counsel at the Bitcoin Alliance, “no other parliamentary body in the world has publicly canvassed the breadth of materials and opinion that this committee has”.

Eight Habits That Can Drive You Into Poverty

Do you ever wonder why some people are successful but most remain poor, in spite of the fact that everyone operates in the same economy? Records show that wealth and poverty have existed side by side in older civilizations. And it's not different today.

Granted.Some people may have certain advantages over and above others but it's a known fact that majority of the people who have become successful, also had several odds against them just like the rest. But they were able to weather the storm and emerged successful.

I have here enumerated eight habits that can be responsible for a guaranteed poverty. It does not matter in which country you find yourself. As long as you take cognisance of these eight habits and decide that you're going to do otherwise, success can be assured.

1. PROCRASTINATION

The first habit is procrastination. It is said that procrastination is the thief of time. If you want to be successful, grab opportunities as soon as they come your way because you might never know when such opportunities will come your way again if you fail to do so. Also, endeavour to set realistic expectations. It is unrealistic to expect that success will come too easy and quick. Bear in mind that success takes time.

2. INDECISION

This is a state of being unable to make a choice between two or more opportunities. For example. One may be talented in sports and music but finds it difficult to choose which to pursue. Most times, people with this kind of dilemma may choose to pursue the two opportunities at the same time but end up being average persons. To be successful, you should choose to do one thing at a time for it is better to be a master of your game than a jack of all trades.

3. INABILITY TO ACQUIRE NEW IDEAS

Successful people make it a point of duty to always seek new ideas. They associate themselves with books rather than entertainment. They continuously seek self-development through the pages of books. If you make a visit to their houses, one thing you can be sure of finding is a study library. People who crave for entertainment at the expense of knowledge, are often times condemned to a life of poverty.

4. FAILURE TO LEAVE ONE'S COMFORT ZONE

A Comfort zone is a zone in which you do something that allows you to simply eke out a living. It is called a comfort zone because it is less demanding. Often times, you find people willing to stay in a poorly paying job for over thirty years and retire poor. This happens because of their unwillingness to leave their comfort zones.

If you want to be successful, you must be willing to leave your comfort zone. This is not say you should resign your job but be willing to go into other engagements that will enable you build residual passive income.

5. WAITING FOR THE RIGHT TIME

To wait for the right time before engaging in an undertaking, is to wait endlessly because the right time may never come. Experience has shown that every successful person faced disadvantages. The right time never came in their case but they faced their challenges with dogged determination. Moreover, waiting to learn everything about, say, a business opportunity before engaging in it, is to plan to fail. Successful people rather learn on the job. They may, no doubt, fail. But they regard failure as an opportunity to learn better ways of doing business.

6. HAVING A CLOSED MIND

A closed mind is the surest road to poverty. One who has a closed mind does not see beyond where he is. He is, as a matter of fact, oblivious of the opportunities around him even when they are shown to him. Anyone desiring to make a success of life must be open to other opportunities. The essence is to create streams of income. There is a general believe that an average millionaire has at least, seven streams of income. If any of these income streams closes, he will still keep afloat.

7. WISHING CIRCUMSTANCES WERE DIFFERENT

Some people are poor and they have come to believe their circumstances are responsible. They spend all there life in wishful thinking. They wish they were born in a different country, by different parents, had different relatives etc. More often, you here people say, "If I was born by rich parents or born in so and so country, I would have been this or that by now". That may be correct though, but it is a known fact that majority of successful people never had rich parents that bequeathed some future to them and their success was not by any stroke of luck.

What then could be responsible for their success? First, they earnestly desired success. Second, a plan of action was set to meet their goals. Third, they accepted that success will not come easy but were ready to keep moving.

As Jim Rohn said "If you really want to do something, you will find a way. If you don't, you will find excuses." So stop the excuses of circumstances. Desire success and work very hard to meet your goals. Your destiny is in your hands.

8. COMPLAINING ABOUT LACK OF CAPITAL

If you want to be wealthy, you must do your own business. You will never be wealthy working for someone else. But setting up a business demands huge startup capital which majority of the people cannot afford. This singular factor has put a lot of people away from setting up their own business and therefore consign them to a life of deprivation. With the advent of the internet however, this has been made relatively easier. Presently, you do not need tonnes of millions of dollars to become a business owner. There are several online businesses that you can do to be successful.

The problem with a lot of people is ignorance. Also, many want quick gratifications. So many people are not ready to stay in a business for as long as ten years or fifteen years. If they are not getting immediate success, they give up. But know now that success takes time. Know also that you can now become an entrepreneur with very little money. All you need to do is to research or ask questions from people who are doing online businesses.

Why do some people become successful while so many people remain in deprivation? Knowledge and habits seem to be at the center of wealth and poverty. People who are in the know, have continued to warn about imminent economic crisis the result of which is that many will fall deeper into economic deprivation.

Some habits are the reasons why people experience poverty. I have explained some of them in this article. Should you determine to read this article, my hope is that you will find it helpful and it may enable you to determine to do otherwise and by so doing, you will achieve success.

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Andreas Antonopoulos - The Death of Money - PART 1/2 | London Real

The death of money? Andreas Antonopoulos is one of the World's leading experts on cryptocurrencies and has been living using Bitcoin for the last 3 years. 

Are we standing at the dawn of a new age? Is this THE biggest financial paradigm shift the World has seen since the introduction of the Gold Standard?

Check out Part1 of 2 NOW!

How to Handle the Effects of Inflation During Pre-Retirement and Post Retirement

We often hear from our parents and grandparents that they used to buy movie tickets for Rs. 5. Milk that we used to buy for Rs. 13 few years back has doubled now. Have you ever thought why such change in price happens?

The answer is inflation.

You can't AVOID inflation:

For the price increases to qualify as inflation, the rise in price has to be a sustained one. With time, for every rupee you own, you'd be able to buy a smaller percentage of good or service.

When inflation begins to march north, there tends to be a decline in the purchasing power of money. Let us consider the inflation stands at 5% annually. Theoretically, bottle of water costing Rs.20 today, would cost Rs. 21 in a year.

It is possible to control inflation and it is not possible to stop or avoid inflation.

How can you handle Inflation?

Inflation affects each person differently. As we progress in profitable positions in work, typically the amount we spend also begins to soar. While certain lifestyle changes with time are unavoidable, remember that every spending decision taken today can affect your finances of tomorrow. Read on to understand how we can combat the detrimental effects on inflation.

Handling Inflation During pre-retirement:

Inflation can be best handled with the right investments.

· Avoid excess spending and invest a percentage from your increased salary. Evaluate your budget and earmark specific areas of expense. Try to forecast your expenditure and work towards minimum deviation from your planned income to expense ratio.

· Design a lifestyle that suits your requirement. Decide how much you want to spend on luxuries. As you inch closer to the retirement finish line, ensure that your luxury needs are at the minimum.

· Try and work towards an annual growth in income generation. Explore new opportunities and ventures to augment your income.

Pre-retirement investments and inflation:

Remember that it is not enough if your investment makes sense; it also needs to make cents!

· Don't keep money stagnant in your safe. In fact, with time its value depreciates. What you can buy with Rs. 100 today will cost you Rs. 150 after a 6 or 7 years.

· When you make an investment, ensure that the rate of return is higher than the inflation rate. The difference in inflation rate and investment return rate is your actual return on the sum invested.

· Inflation trends have a profound effect how each portfolio needs to be structured. Allocate your assets based on your risk return expectations. Higher the risk, higher the returns. Embrace equities for long term.

· Proven Diversified Equity Funds: This investment option can churn good returns if you have a good appetite for risk, as the returns range an average 12-15%, which can suffice to beat inflationary trends.

Focus on what return your investment will yield post tax and invest wisely.

Inflation during Post-retirement:

"Inflation is the crabgrass in your savings." -Robert Orben. Failing to anticipate the effects of inflation on retirement finances can be a costly mistake. While it is important to keep investing after retirement too, the tolerance to risk also needs to be phased down.

· Plan for a fund that will sustain in your sunset years

· The inflation rate needs to be factored while deciding on the corpus fund.

· You need regular income after retirement. This regular income need to increase year after year to take care of the inflation.

· Creating a corpus that can provide regular income year after year.

· Creating another corpus, that can help in providing additional regular income that can take care of inflation.

What we need to understand is that the investment strategy after retirement is not to beat the inflation with investments; but to meet the inflation with investments.

Inflation is what every economy suffers from. It creeps on us with time. If not planned, it can sting us very hard. But as economists say, inflation is nothing to dread. Healthy rate of inflation has a positive impact of increasing consumption and keeps the capital in the economy flowing.

An important Mantra:

Invest your money and don't lock it up only with safe investments. The money safe in your 'safe' will not yield returns that can save you from inflation. For becoming a well disciplined investor and achieve your financial goals, you need to focus of creating a financial plan.

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Director and Chief Financial Planner of Holistic Investment Planners http://www.holisticinvestment.in a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in

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