DEBT is a cause of unhappiness. It could be in a family or a marital relationship.
A debt is always retrogressive to all our endeavours to success, unless if it’s a good debt. The best way to set free from debt is just to get out of it and breathe some new fresh air. If you were truly rich, the first step is to plug potholes of debt.
Tune your mind to it The most important step in wiping your debt is setting your mind to it. Work it out in your mind, be honest with yourself and list all debts starting with the smallest to the biggest (I will explain why later).
Do away with all triggers that make you to over spend. Find other means of making yourself happy other than justspending money and be disciplined to knocking out all your debts!
Slash your spending Slash your spending at all costs and don’t spend more than you earn. There are things that we want but are not necessary. For example, you might be staying in a rented luxurious house which guzzles so much from your pocket because you want to impress your peers.
The fact remains: the house is not yours. Swallow your pride, step down to a cheaper apartment; after all it’s your life! Have you realised that it’s far cheaper to carry your home made food to work that buying take away? Cut down on fast foods.
The three-day-formula As I said in the previous writing, in every instance you get money delay your spending. Just put your money aside for about three days as if you didn’t have it. This gives you time to think, slash trivialities and budget. It’s not being stingy to budget neither is it healthy to be a spendthrift.
Chuck out to check in There are relationships that you have to check out in order to check in to your level of financial success. I have a friend who used to earn about $1 600 in a month.
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What he did was to go out on a drinking spree with celebrity soccer players. The next day he would be looking for a chimbazu to pay for his utility bills and other things. I have discovered that life has happiness when you live simply and not highly. That gives you an edge and better direction over the majority.
Bad debt will remain bad A loan used for investments in assets is recommended. But a loan to buy an ex-Japan second hand luxury car for pleasure and leisure I would not recommend. As long as something takes money from your pocket it’s called a liability; avoid it!
Knit your pockets Know where your money goes. You can’t live a life where you are not sure where your money goes. You will grow big in the area where your financial resources go. To get out of debt, you have to know where your money goes and re-channel your finances to right use.
Chop your credit card Credit cards can be so tempting at times. If you are in debt, do you know what you can best do; chop credit cards into pieces because they will continually bog you into debt.
Fashion comes and goes and if you are that person who loves to be in the wagon train, you will forever live a life chasing butterflies and for that matter miserable. Learn to buy things in cash or do purchases that don’t accrue in interest.
Reevaluate common spending areas You have to reevaluate your spending areas. Just give yourself time to add how much of air time you buy per day. Assess your prevalent buying areas such as food, sports, vacations, car and utility suppliers. Cut on extraneous expenses. You won’t die and you will get out of the debt quagmire!
The avalanche knock out rule When paying debt knock out the smallest debts first and then deal with the largest later. I have seen this giving me a clear picture in fighting debts. Know your debts with high interest, and those to be dealt with first.
Who do you bank with Some banks purported to be high-class while in reality they are high financial guzzlers. Make a survey of banks; their service fees, their loan interest rates and other charges. There are differences which most people overlook. It’s not about the service alone, but how much they eat from your pocket.
Did you know that the account you hold determines how my cents are taken by the bank? Some people don’t know this, but there are accounts that have no service fees at all. These are ideal for saving than using your ordinary saving account.
Parting point: Henrick Ibsen once said: “Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt.” Use stern measures to be free! Get out of debt!
For more money tips and advices go to www.successlife.co.zw, call 0772 581 918, e-mail: [email protected]
Jonah Nyoni is an author, success coach and motivational speaker.
