Wednesday 3 September 2008
How to Start Living a Life Debt Free and Never Worry About Money Again
The information you will read today covers some very familiar territory, but will also cover some not so familiar territory.
I have a personal bone to pick. The bone I have to pick with most of these kinds of articles is not that they don't provide valuable information. The truth of the matter is that they do provide valuable information. A person can become debt free and live a debt free life. The problem I have is what they ask you to do. In my opinion, they ask you to adopt a mindset of poverty. You have to take drastic measures to eliminate your debt and maintain those measures, occasionally rewarding yourself for staying within your self imposed restraints.
So, in this article we're going to take a look at some of the conventional methods suggested to help you live a life debt free. We'll also look at some out of the box thinking that many purists may not agree with, but will teach you not only how to live a life debt free but also never worry about money ever again..
Steps to Getting out of Debt and Living a Debt Free Life:
1) What are you spending? You need to record what you are spending your money on. This is a key component to getting out of debt. You may find the concept of writing down everything and I do mean everything you spend money on to be annoying and useless. The truth of the matter is, most people are in debt because of spending more money than they have. Most of our debt comes from spending here and there that amasses over a period of time. So, getting out of debt starts with knowing what you are spending your money on. So every day for one month (at least), write down every penny that you spend, no matter how small you think that purchase is.
2) Stop increasing your debt. This may involve a little pain. If you have any credit cards that are maxed out, cut them in half. I told you that this may hurt a bit. After you stop crying, look and see how many cards you have left. Get ready to cry some more. Cut those cards up until you have only one card remaining. Cut up any "convenience" cards, such as gas cards, department store cards, etc. Take some time to mop up your tears from the floor. When you're done you should have no more than one card. You will use your one credit card ONLY to buy items that are "must haves" until you get your spending under control.
3) What are "Must Haves"? Your "must haves" are those items that you must have. Wow, that was difficult. Seriously, your "must haves" are mortgage, food, medicine, etc. These are the things that if you don't care for will cause you serious harm. There are two other categories to consider. There is the "should haves". These are things that you need but can do without for a little while. Those items could be new clothes for work, gym memberships (go run in the park). Another category is the "like to haves". These are things that you don't really need but makes your life fun. Included in this category can be but not limited to magazine subscriptions, newspaper, weekly dining out, cable or satellite tv. You don't want to get rid of all the "should haves" and the "like to haves", but take a look at them first. You are taking steps to get out of debt. Be ruthless where you can.
4) Make a budget based on your spending record. Write down the amount you spent in each category of spending last month as you budget for the next month. Don't get upset if you feel like the amount is too much. What you are going to do for right now is just write everything down. If you spent $100 last month eating Mickey D's, write it down. If you spent $500 on clothes last month, write it down.
5) Figure out how much you owe and to whom. Try not to get overwhelmed. Sit down and put together a list of all of your bills and who you owe. Include in your list the name of the creditor, your total balance, your minimum payment, and your interest rate. It goes without saying that now you proceed to pay down your debt.
My question is, what kind of life is that to live? These methods lend themselves to a mindset of deprive and lack. A mindset of poverty. You're always watching pennies and trying to avoid going back into debt. Why not look at ways of generating enough income so that money is never an issue? Not enough income is usually the reason for too much debt. Increase your income flow significantly, and you'll never have to worry about being in debt, ever again.
There are so many things a person can do to bring in more income. Some are more risky than others, but I think you get my point. There are other options. Explore, and don't accept living a life with a poverty mindset. Find out how to have all the money you could ever want.
Become Debt Free/Never Worry About Money Again http://alifedebtfree.com
Stop Living Paycheck to Paycheck/ Never Worry About Money Again http://betterfuturenow.com
Article Source: http://EzineArticles.com/?expert=Peter_Christian
I have a personal bone to pick. The bone I have to pick with most of these kinds of articles is not that they don't provide valuable information. The truth of the matter is that they do provide valuable information. A person can become debt free and live a debt free life. The problem I have is what they ask you to do. In my opinion, they ask you to adopt a mindset of poverty. You have to take drastic measures to eliminate your debt and maintain those measures, occasionally rewarding yourself for staying within your self imposed restraints.
So, in this article we're going to take a look at some of the conventional methods suggested to help you live a life debt free. We'll also look at some out of the box thinking that many purists may not agree with, but will teach you not only how to live a life debt free but also never worry about money ever again..
Steps to Getting out of Debt and Living a Debt Free Life:
1) What are you spending? You need to record what you are spending your money on. This is a key component to getting out of debt. You may find the concept of writing down everything and I do mean everything you spend money on to be annoying and useless. The truth of the matter is, most people are in debt because of spending more money than they have. Most of our debt comes from spending here and there that amasses over a period of time. So, getting out of debt starts with knowing what you are spending your money on. So every day for one month (at least), write down every penny that you spend, no matter how small you think that purchase is.
2) Stop increasing your debt. This may involve a little pain. If you have any credit cards that are maxed out, cut them in half. I told you that this may hurt a bit. After you stop crying, look and see how many cards you have left. Get ready to cry some more. Cut those cards up until you have only one card remaining. Cut up any "convenience" cards, such as gas cards, department store cards, etc. Take some time to mop up your tears from the floor. When you're done you should have no more than one card. You will use your one credit card ONLY to buy items that are "must haves" until you get your spending under control.
3) What are "Must Haves"? Your "must haves" are those items that you must have. Wow, that was difficult. Seriously, your "must haves" are mortgage, food, medicine, etc. These are the things that if you don't care for will cause you serious harm. There are two other categories to consider. There is the "should haves". These are things that you need but can do without for a little while. Those items could be new clothes for work, gym memberships (go run in the park). Another category is the "like to haves". These are things that you don't really need but makes your life fun. Included in this category can be but not limited to magazine subscriptions, newspaper, weekly dining out, cable or satellite tv. You don't want to get rid of all the "should haves" and the "like to haves", but take a look at them first. You are taking steps to get out of debt. Be ruthless where you can.
4) Make a budget based on your spending record. Write down the amount you spent in each category of spending last month as you budget for the next month. Don't get upset if you feel like the amount is too much. What you are going to do for right now is just write everything down. If you spent $100 last month eating Mickey D's, write it down. If you spent $500 on clothes last month, write it down.
5) Figure out how much you owe and to whom. Try not to get overwhelmed. Sit down and put together a list of all of your bills and who you owe. Include in your list the name of the creditor, your total balance, your minimum payment, and your interest rate. It goes without saying that now you proceed to pay down your debt.
My question is, what kind of life is that to live? These methods lend themselves to a mindset of deprive and lack. A mindset of poverty. You're always watching pennies and trying to avoid going back into debt. Why not look at ways of generating enough income so that money is never an issue? Not enough income is usually the reason for too much debt. Increase your income flow significantly, and you'll never have to worry about being in debt, ever again.
There are so many things a person can do to bring in more income. Some are more risky than others, but I think you get my point. There are other options. Explore, and don't accept living a life with a poverty mindset. Find out how to have all the money you could ever want.
Become Debt Free/Never Worry About Money Again http://alifedebtfree.com
Stop Living Paycheck to Paycheck/ Never Worry About Money Again http://betterfuturenow.com
Article Source: http://EzineArticles.com/?expert=Peter_Christian