Financial Resource

The components to debt free living are not new. It’s the same as dieting- everyone wants a NEW approach- a “never been seen before” way to lose weight- when the simple fact remains that the only way to lose weight is to take in fewer calories than the body uses.

     To become debt free- you must spend less money than you make and pay down the PRINCPLE of your debt so you are no longer paying interest on money owed. Simple right?

     The first thing you need is to truly assess the situation- lay out all the bills on a table and write out how much money is owed each month in comparison with how much money is coming in.

     A BUDGET has to be set and you have to stick to it. It’s hard at first, but you get used to it.

     I like Dave Ramsey’s “Snowball Plan” where you attack the smallest debt first and then keep applying those amounts to each debt that gets paid off until you only have a mortgage.  Don’t bother with those consolidation services. If you are completely over your head, then bankruptcy may be an option you have to consider.

     The second component is to increase your income, but be careful. It’s alright to work hard, but please don’t destroy your life in the process.

     I am concerned with people’s quality of life as they try to reduce debt and increase income streams to accomplish these goals in a timely manner.  There are only 24 hours in a day and no one can work all of them all of the time!

     My wife enjoys eating out- it’s foolish to eat out if you can’t afford it- don’t put a meal on a credit card unless you can pay the entire balance on that credit card at the end of the month, so no interest is accrued.

     Many “Debt Specialists” will then advise you to never eat out again until you are out of debt- a fair recommendation except they don’t know my wife! So- what do we do?

     We increase our income to the point where we quickly get out of debt and can afford to eat out on a regular basis, so there is no debt and a happy wife J.

     Remember- debt is not mandatory!

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