Financial ‘Extremist’ may across as a heavy title, but it was only used to illustrate the kind of effort you need to make in order to manage your financial situation this year. Always remember that even in the hardest of times, financial freedom can become a reality provided that you are ready to fight for it.
The following are 10 tips that can help in your battle against debt. Read on:
1. Make Up Your Mind
Nothing can be achieved unless you your goals are clear in your mind. When it comes to financial troubles like debt and unemployment, you can respond in a couple of situations. You can simply choose to ignore and risk the problem growing out of proportion or you can admit the problem and think about changing it.
However, let this be clear from the start that you can only be successful at financial freedom if you make up your mind to do everything that can be done. Once you reach this stage of conviction, you will find it easier to implement the rest of the guidelines.
2. Increase your Income
Warren Buffet was named the 3rd richest man in the world in 2011 and he has this to say on earning:
Never depend on a single income. Make Investments to create a second source.
This principle becomes highly necessary when personal finances are a mess or the economy is in turmoil. I am sure that you would have made mental pictures of working overtime or multiple shifts. However, this is the age of the internet, and there are a lot of ways to earn money by simply using a laptop. Article marketing can turn out to be a great second income for you if can devote simply 2-3 hours each day.
A great option in this regard is a calculator. An ordinary debt to income ratio calculator allows you to see where you income stacks up against your lingering debt.. In addition, using one will also help you determine how much you need to make to cover your debts.
3. Cut Down Costs
Yes, that’s right. You need to bring your spending down to the bare minimum. This means giving up on the daily coffee, beer, and fast food. You don’t have to live in a cave and starve yourself, but you have to make a distinction between your necessities and luxuries. Luxuries should be given up, and necessities should be met by using cheaper alternatives.
4. Get Rid of Credit Cards
If you can’t resist using credit cards for rampant shopping, simply cut them off. This will not improve your financial position but will definitely keep you from getting further in debt. If you are finding it hard to take this measure, simply use a debt to income ratio calculator to see how much you owe. That will keep you from swiping those cards again!
5. Rely on Cash
In conjunction with previous points, make it a point to pay as much you can by cash. You may not be able to get everything you desire, but you will be able to sleep peacefully at night knowing that there are no pending bills from your recent shopping trip.
6. Garage Sale
This sounds traditional, but it is highly effective. You may have a lot of things you do not use, but there will always be a customer out there to purchase it.
7. Forget About Credit Score
Not literally of course! But do not pre occupy your mind with your credit rating that you find it hard to focus on making additional income and saving money by the end of each month. Even if your credit score is in ruins, you can become financially stable.
8. Cut Down Your Debt
Any delay in repaying your debt will push your goal of becoming a financial extremist further in time. Use the debt calculator to help understand your present situation, and then you can find the quickest techniques of debt amortization.
9. Sell your Vehicle
Now this is getting extreme! But think about it. By selling your car or motorbike, you will not only have a significant chunk of cash coming in, but you will be relieved of fuel, maintenance, insurance, and car loan payments.
10. Give Up on Entertainment
This can prove to be quiet difficult, but you are not being asked to cut down on cable and movies. Instead, you should give up on fancy dinners and expensive family trips. Even the holiday season puts many people in debt. You have to ultimately decide whether it is feasible to become indebted simply to make the family happy or being practical and securing their future.
About the Author
Eva provides online help to people who want to become financially stable. She believes that the smallest of financial tools can make a lot of difference. Using a debt to income calculator and other money management methods is the first step to becoming debt free.
Filed under: http://www.theleader.info/article/38612/
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