If you’ve ever felt restricted then you know there is no better feeling than the feeling of freedom. Not being able to go where you want and do what you feel can bring about feelings of discouragement. Money, or rather I say the lack of it, can bring about these very emotions. If we dig a little deeper, amassing debt through credit cards, mortgages, school and car loans can feel burdensome at times. If you feel or have ever felt the mounting pressure of owing folks money then you’re not alone. Millions of people can concur, but there is light at the end of the tunnel. We can all gain the courage to face public enemy number one by having a plan and being disciplined enough to stick to it. The Price of Freedom The question is simple. What are you willing to do to dig yourself out of debt? Are you willing to give up your daily coffee at Dunkin Donuts or Starbucks for the next 12 months? How about downsizing to a smaller home or you and your partner deciding to live off of only one income for a few years? If someone propositioned you with a list of things you’d need to give up in order to gain financial freedom would you do it? For many of us, this may seem like a no brainer, but for those who are embedded in the routine of life it may be a little harder to buy into this idea. If most of us take a closer look at how we spend our money I’d bet the farm that we can identify several hundreds (even thousands) of dollars that are frivolously spent annually; money that can be applied to eliminating mounting debt. We could also identify certain behaviors that attribute to our laxed money management skills, which can range from paying high interest rates on credit cards due to lack of attention to the desire to live in an oversized house not realizing being house rich but penny poor leads to nowhere. Take a minute to read a few concepts I’ve come across over the years that have allowed many people to eliminate debt and ring the bell of financial freedom. 1. Read the Fine Print: I do believe the invention of automatic payment was designed for a good reason; so that absentminded people like myself don’t forget to pay bills on time and end up with a slew of late charges. However, in all of its goodness, there is a dark side. Automatic payment should not mean giving up all ability to conduct account status checks once in a while. Suggestion: If your one of those folks who set up and check out, do yourself a favor and review your statements if not monthly, then at least quarterly, especially those payments that will be around for 6 months or longer. Ever so often credit card, utility and insurance companies change rates (interest/APR) and terms to your policy agreements. Staying abreast of this information will keep you happy in the long run, I promise. 2. Make A Plan and Stick To It: I recently read a few articles about people who paid off significant amounts of debt - from as little as $1,000 in a few months to $100,000 in under 2 years. You may think its magic, but I promise, the strategies that these folks adopted were not anything spectacular. In fact, you’d be surprised how a far a little determination and a lot of discipline can take you. If you have the dream of living debt free, then why not live debt free? Suggestion: Start from scratch and analyze just how much you owe. Next, construct a plan that will chip away at it until it’s gone. This could mean debt restructuring or consolidation where you transfer balances to one card (with the best rates of course). Or you can cut unesscaary spending (i.e. shopping, eating out, travel), and focus primarily on applying that money to paying off what you owe. Simply put - size up the enemy and design your plan of attack and don’t chicken out until your victorious. 3. Celebrate the Small Victories: In all this chatter about how to fight the good fight, you mustn’t forget to pat yourself on the back for the small wins. The process of debt repayment and gaining financial control can seem very overwhelming in the beginning especially if you are starting with a large amount of debt to conquer. Remember that everything takes time; this is not a sprint but rather a marathon. So, as you move forward and are able to pay your debt off little by little, celebrate those small feats because the journey is just as important as reaching the destination. This month’s take away comes from a woman I read about who refused to live under the shackles of debt. She decided one day to pay off $30,000 in credit card bills. She sized up her enemy, made a plan and stuck with it, celebrating the small victories along the way. In the end she realized that living frugally allowed her more time and mobility. I don’t know about you, but I like the end to that story. Now why not get focused so that you too can find your happily ever after, free from the burdens of debt! Till Next Time, Happy Living and Learning The S.P Team HAPPY BLACK HISTORY MONTH TO ALL! P.S. If you want to start caluclating how long it will take you to save money to put toward debt repayment visit Soldon Properties News and Resources page and use the newly added savings calculator (at the bottom).
2 Comments
Lina E.
3/3/2014 05:46:44 am
Thanks for the advise Soldon Properties.
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Maya
4/3/2014 03:23:42 pm
Making a plan and sticking to it is so important. I will try to stick to my goal of paying off my credit cards this year! Thanks for the advice!
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About The AuthorSolonge Robinson is a Co-Founder of Soldon Properties, LLC and proud contributor to The Soldon Corner. Archives
January 2020
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