Are your still struggling with that – getting out of debt?
If you are in your 20s and if you have been following this blog and reading about how to invest, put your money into earning more money and you will probably get very fired up. Yes, I can relate to that because I was just like you but unfortunately for me, when I was in my 20s, there is nowhere I could turn to, to learn about investing and getting rich. I have got to put a lot of trials and errors into play. However, I can tell you this – living a debt-free life is bliss, its richness in itself. Yes again, you don’t have to be filthily rich to retire rich. All you need to have is enough, depending on individual needs, to live a carefree lifestyle. That is richness in itself!!
So before you can really start to invest you have to “Get out of Debt” first. I can bet that everyone working on this earth, whether young or old, has some kind of debts in their hands. Most debts are mortgages and personal loans. Majority will be credit card debts.
Lets aim for “zero” debt level. “Zero Debt” should be your ultimate goal. It is not easy but it is achievable. Time is the essence; however, the faster you get out, the lesser you spend (unnecessary) and the quicker you start to earn.
You are probably frustrated with your financial situation, why is there never enough?. The big mistake is that you are spending more than you earn. That is where your debt originated. Let’s get real. It’s time to take stock of your expenses. Re-look into what is necessity, what is dire need, what is want, what is want but not real need and above all what is extravagance.
If you have spent more than you should and your output is more than your input, you are in debt. Remember, this kind of lifestyle is eating into your wealth. Until and unless you change your spending habits you will never be debt-free or can I say F R E E…….
Decide to stop using your numerous credit cards NOW…. THIS MINUTE. Cut them up….list all the outstanding amount of each card and make a plan to clear the owing by dividing the amount you can afford monthly/fortnightly to repay your debts. Here you will now know the duration it will take you to finalise your card debts. Once you are done with the debts, the amount you put aside to repay your debts should now go into some kind of investment, whatever you are comfortable with.
Life is not a bed of roses……..