How to Get out of Debt Series 2 We often get into debts when our Expenditure > Income and we incur debt anytime we borrow to feed ourselves. You can borrow to make money BUT it is very dangerous when you borrow to feed yourself. Lets get this straight. Debt is when you borrow not to do business but to feed yourself or buy that which does not generate income for you. Lets take a cue from rich people, they invest in assets first and then use the money they get from the assets to but what they need. So like I mentioned earlier, a car is a liability because you spend on it rather than gain money from it. Your house is a liability because you keep spending on it till the day you die. How do you balance this? Simple, I’ve seen some very crazy things being done under the earth. I know of a man who owns a property in a lucrative part of Lagos who chose to rent it out because his earnings from his property not only paid his rented duplex in another not too expensive area of Lagos, it also covered his other expenses. It pays to be financially smart. That leads me to point two of how to get out of debt. 2. Become financially disciplined and start a financial plan The major reason why a lot of us incur debt is because we are not disciplined when it comes to spending money plus we don’t plan our finances! First off, you must understand that you should not overspend; don’t overshoot your expenses. Stay in the confines of your income. Stop all unnecessary expenses. At the end of every month, make a budget of all of your expenses. Take a good look at it and take out everything you REALLY don’t need. Be sincere with yourself! If you don’t need it, don’t buy it! Ask yourself: Do I really need this now? PLUS, stop borrowing! I have talked about you saving a minimum of 10% of your income and investing the lump sum on assets. You might want to read the Richest Man in Babylon and practice the principles there. SAVE and INVEST! That’s the sure way to Wealth. Let me quickly suggest a spending plan. And this is how I do it or at least I try to (lol!): I give 10% to God, Pay myself 10% which I save and never touch; I invest it, I use 30% to pay my debt, Put another 5% aside for contingency And lastly spend the rest 45% on monthly bills and groceries. Now, when you are in debt you must ensure that you don’t go hungry. Make allowances for food in your house. A hungry man will never think straight, plus only a living man can work to pay back debt. BUT in all actively make sure that you service your debt as often as possible. Don’t leave it to grow in interest and over time before you start to pay it. Always make sure you pay something out of it as often as you can. That way, it decreases over time. Remember: Reduce your expenses to only the essentials. You don’t say you want to get out of a pit when you have not stopped digging. Secondly, look for ways to actively increase your income so that you can make up for the funds allocated to debt repayment. Explore more steams of income, read voraciously, and search for knowledge. I’m coming to terms with it that there is no job security anywhere, unless of course God is your employer! Yep, you heard right. I’m not going there today and I’m not saying you should go get a cassock. There are many ways to work in God’s employ. Go do your research and get back to me on that one! (Smiles) So, work at it. You can do some freelance, some part-time job, take on a weekend job, learn a trade etc. Ask questions. Explore your talents, conduct a talent analysis. Develop a checklist of your skillset and find out how you can convert your talent into treasure. Work at it and very soon, your income will overtake your expenses and then you can really become financially free. I look forward to seeing you there! Lastly, this point here is a choice BUT I have found it to be a great way of getting out of debt. GIVE! Give to God, give to the poor, give to the needy, give to the motherless and fatherless SUBSTANTIALLY! This approach has never failed me. You should try it too. Give and it shall come back to you in GOOD MEASURE, pressed down shaken together and running over SHALL men give to you back. I know personally of men who gave to God and humanity and their debts were cancelled. One in particular amazes me; he owed a bank in the tune of over a million YET he chose to give and the bank called him to tell him that his debt has been cancelled! Wow! There is power in giving. I wish you all the best in getting out of debt. I see you getting out of debt! I see you becoming wealthy beyond your dreams. You will Succeed. I hope this really helps someone and thanks for taking time to read this. You can share if you have someone it can help. I care. Dr. 3pleA Outperformance Coach +2347055778282 adeniyi.atiba@yahoo
Posted on: Mon, 11 Nov 2013 14:00:43 +0000
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