Many
people are on a roller coaster called DEBT. Their DEBT goes up
and then they pay it down and then something comes up so DEBT goes
right back up.It seems like we are going in circles. Everyone knows someone somebody
who is financially free. What did they do to get them there? They put there
minds to it and stuck with there plan. Here are a some of the secrets of the
financially free.
1. Debt Snowball
This is the number one secret. This method has been proven successful by most financial experts. Here is how it goes: list your smallest debt first all the way to the largest. Pay as much as you can on the smallest while just paying the minimums on the rest. Finally, take what you were paying on that debt, and add it to what you are already paying on the next smallest debt. This is how your payments snowball. When it comes time to start paying more on the final debt, you will have a large amount of cash to pay it off with.
This is the number one secret. This method has been proven successful by most financial experts. Here is how it goes: list your smallest debt first all the way to the largest. Pay as much as you can on the smallest while just paying the minimums on the rest. Finally, take what you were paying on that debt, and add it to what you are already paying on the next smallest debt. This is how your payments snowball. When it comes time to start paying more on the final debt, you will have a large amount of cash to pay it off with.
2. Stop
Spending
The second secret seems obvious, but it is the hardest one to accomplish. Creating more debt will just get in the way of eliminating your debt. Only spend money on what you need, not what you want.
The second secret seems obvious, but it is the hardest one to accomplish. Creating more debt will just get in the way of eliminating your debt. Only spend money on what you need, not what you want.
3.
Create a Budget
Finally, you need a budget. It is surprising how many people do not have an active budget. Some people just have an idea of how much they can spend but do not have an exact amount. Sit down, bang out a list of bills and expenses, and pay off your debt with the rest of the money.
Finally, you need a budget. It is surprising how many people do not have an active budget. Some people just have an idea of how much they can spend but do not have an exact amount. Sit down, bang out a list of bills and expenses, and pay off your debt with the rest of the money.
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