Avoid Debt Secret
Financial talking heads on television and radio try to tell you
how to get out of debt, stay out of debt, or what dance steps to
use to avoid debt. Just about everything they say is the wrong
thing. I don't mean they are lairs and you should ignore them.
Actually, many of their ideas do make sense.
They are wrong when talking about debt because they say "live
within your means". By focusing on this phrase, what they are
not telling you becomes a secret - the true secret to avoiding
debt. Do you want to know the secret? If you didn't, why are you
reading this?
The secret to getting out of debt and avoiding debt again
is...Living below your means.
I'm serious that this is the true secret to staying out of debt.
If you live within your means you are spending everything you take
in. While this avoids going deeper into debt, it will not dig you
out of debt or keep you out. Living within your means is like
walking on a treadmill, you work hard but you fail to go anywhere.
How do you live below your means? The best way is to create a
spending plan. This can be a simple hand written graph listing
your expenses or it can be as complex as a fancy computerized
program tracking every dollar you spend through PDA and laptops.
Why is living below your means so important? When you live below
your means you are generating a surplus amount of money each
month. This surplus is money you use to pay extra on your debts
until you are debt free. This surplus can be used to build an
Emergency Fund, develop a savings plan for your children's college
or prepare for your retirement.
Living below your means is the real secret to personal financial
success. It also will not come easy. We people like to live as
high on the hog as we can. However, this doesn't help us have a
surplus each month. You might have to make some difficult
decisions to produce a steady supply of surplus money each month.
How difficult of decisions? You may have to sell your house and
move into a smaller rental. Perhaps you will sell one car, stop
eating out except for special occasions, come home from work
instead of stopping by the bar or even taking on a second job. Be
careful of the second job, though. It comes with more taxes,
stress and its own set of issues.
When you are done reading, I want you to think about what you can
do to start creating a surplus this month. What plans are you
going to make, and steps you will take to provide a surplus to pay
off your debt and begin a regular savings program?
After you have thought about them, go talk to your spouse about
creating a surplus. When you are done talking, writing the surplus
creating plan down and hang it on your refrigerator. If the two of
you work together, you will be able to conquer your debts and put
your family back on a secure financial footing.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. THIS IS IN NO
WAY GIVING ANY LEGAL ADVICE OR REPRESENTATION. THE INFORMATION
CONTAINED HEREIN WAS COMPILED FROM VARIOUS ARTICLES. FOR ANY LEGAL
ADVICE OR REPRESENTATION SEEK YOUR OWN LEGAL COUNSEL.
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