Top 15 Ways to Get Out of Debt and Into the Money
Getting out of debt is not as hard as you think, here are time-tested principles to help you get out of debt. Get inspired.
1) Pay Adequate Attention to Your Finances
Many People tend to confront something only when it becomes a problem. If you want financial freedom you will have to regularly invest time into assessing your finances. What you pay attention to is where you get results. The first rule, if one must excel at anything – Is to pay adequate attention.
2.) Stop Focusing on Debt
You get what you focus your attention on. Stop thinking about the debts you have and instead start thinking about how you can earn an extra $1000 this month. Ask yourself bigger and more empowering questions and your subconscious mind will come up with the solutions. Always ask yourself, “how can I do something”
3.) Good Debt vs Bad Debt
Rich people buy assets. Poor people buy liabilities. Rich people have lots of debt, but they have debt that is used to buy assets that produce ROI. An asset is something that puts money in your pocket. A liability is something that takes money from you. A 1 bedroom apartment that you buy and rent out to someone that gives you a positive return an income each month is an asset. There’s also the long term equity. On the other hand, a liability is a car that you get a loan to buy and make repayments each month.
4.) Learn to Sell and Then Start a Service Based Business That Somebody Else Provides
There needs to be some form of leverage and scalability. You cannot sell as well as deliver the service. You need to focus on one thing. Alternatively, you do the service and find someone else to sell. Or find someone else to sell as well as someone else to deliver the service and then you just project manage them both. You be the ideas person.
5.) Always Look Out for Investment Opportunities
They are all there. In Financial Magazines and Business Reports to mention a few. A few minutes on your bank’s website might be all you need for your creditors to be paid on time and for your debt to start shrinking. What are you doing in the newspapers – checking out for entertainment, hell no! You should look out for investment opportunities.
6) Have You Considered the Law of Attraction?
The law of attraction is the belief that by focusing on positive or negative thoughts a person brings positive or negative experiences into their life. You can either be optimistic or pessimistic. Trust me, the former is an easier route to get out of debt. There is always something positive about every ugly situation.
7) Increase You Capacity
If you are an employee, what stands you out of other employees? To increase Capacity, you embrace responsibility. As a result, you gradually become indispensable. Consequently your income goes higher. However, It`s of utmost importance to reiterate here, that as your income goes up, it`s wise to keep your expenditures on the decrease. They have to be inversely proportional if you will be out of debt in no time.
8) Cut Down on Social Events
You should cut down on Vacation, partying and other social events that drain you financially. You want credit to work for you and make money for you, not just give you some memories of Cancun. The interest payments will bury you and will outlast any Facebook selfies you post from the top of a mountain. Any social event that will make you expend some money is not good for you at this time.
9) You Should Have an Emergency Account
One of the biggest mistakes people make is not having an emergency account in place when things go other than they planned. As economic events of the past ten years have shown us, the unexpected happens. In order to make your wealth recession-proof you should set up emergency accounts that are never touched except in crucial situations.
10) Avoid Impulsive Spending
One of the fastest ways to go broke is to spend impulsively. Think through before opening your wallet. Do not allow yourself to be cajoled. Understanding and logically arrive at why you should spend whenever the need arises. You are walking past a shoe store, before allowing the store-man get in your head, THINK!
11) Improve on your Accountability
Accountability is important, if progresses will be realized and maintained. You can have someone serve as your Accountability partner, with whom you commit to saving a proportion of your income regularly or such a person can be adopted as an additional signatory to your bank account. It depends on what you want.
12) You Might Need to Sell a Few Stuff
Many of us have been used to harboring lots of unnecessary stuffs at the house or office. Why not walk around the garage, store, go round your compound, take an inventory of items you have in your abode. There might be some, you will never need again. Check out for the very bad household appliances, condemned vehicle parts and even waste. When you have so many of them, they give you tangible money.
13) Who is Your Financial Mentor
There is no way around this, you need a mentor on the subject of “Money”. One who has been to where you aspire to be, as one can only reproduce after his kind. Your mentor should have the results you seek. To excel in life financially, you have to pick up “Money as a Career” and one of the fundamental ways of doing this is to recruit a mentor.
14) The Magic of Affirmations
It is great if you could have this pasted on an obvious background in your room “I am glad, I live the life of my dreams, I am debt – free”, where you affirm every word with a powerful conviction every morning. Psychologists have told us that when we make the right affirmations, our mind and every part of our beings immediately go to work to see those affirmations accomplished in our lives. Early in the morning speak the right words, in the afternoon speak them, at bedtime speak them.
15) Ask Rich People
If your goal isn’t just getting out of debt, but being financially free, then this part is for you. Even when you are done settling your debts, never throw away all that discipline in the trash can. The discipline that brought you out will take you higher. Keep investing, Keep cutting down unnecessary expenditure, you will be there in no time.