When you want to eliminate debts , manage your money better , save more and better, etc. You will see that the advice they give you on websites, blogs, tips from financial experts and gurus, often contradict each other.
To end debts , for example, some tell you to pay first those with the highest interest rate or, conversely, to start with those with a lower total amount, to have a moral reinforcement to see that you are moving and eliminating some of your debts.
Different methods indicated for different people . Yes, in theory they work and we can establish better methods from a financial point of view, but does that mean that way will work for you?
The best method is one that works for you . It does not matter if it is not the best, nor the most recommended, if it does not work for you it is worthless. Change it and find another.
Eliminate Debts Step by Step
If you are fighting debts, the first thing you have to do is not borrow more . Do not increase the mountain of debts even more being increasingly difficult to get out of it.
Stop using credit cards , immediately. As you pay the debts from the cards, go canceling them one by one. Without excuses. You do not need credit cards to live. No one needs them.
Until you have self-control, and you prove to yourself that you can have a credit card without borrowing but if you take advantage of its advantages, do not have any.
It’s like an alcoholic who keeps a couple of bottles of whiskey in the mini bar. Eliminate temptation. Eliminate the problems.
The next step is to understand how money works . It is basic, but many ignore it. You need your income to be bigger than your expenses every month, never the other way around.
It is the secret to save more and better and have healthy finances. It may sound very silly but it is very important and the fundamental pillar on which to build your heritage. Work to reduce your expenses and increase your income .
Without this, it doesn’t matter everything you learn about investments , about tricks to save or spend less, you don’t care. You will always be in debt.
How can you increase your income?
- Sell things you don’t need . If you have a car sell it, and if you need to have one, study the possibility of selling the one you have and buy a cheaper one that meets your needs.
- Sell everything you bought while you borrowed . That latest model laptop or that smartphone that does everything.
How can you reduce your expenses?
- Leave as little as possible from home .
- Do not go to the mall or shopping areas .
- Try to expose yourself as little as possible to advertising .
- At the pressure of friends and family to buy and spend .
- Read books, magazines and personal finance blogs .
It’s very simple. Avoid temptation.
Maybe too radical? Think that the more radical you are before you will end your debts, the sooner you will take a huge weight off, the sooner you can enjoy the things that you are now taking away.
Debt may seem like an insurmountable mountain. Do you think you will not be able to end it? The good news is that you can perfectly with her. The bad news is that it will not be easy.
It requires effort and a lot of work to change or radically eliminate the harmful habits that have led you to this situation.
Read about and with people who have left their debts, it will serve as motivation. Set goals and work to achieve them .
The most important thing is to start now . What are you waiting for to get down to work and start getting out of your debts? Waiting doesn’t help you at all. Start now, little by little, without hurry but without pause.