“If you want to know what God thinks of money, just look at the people he gave it to.” ― Dorothy Parker
Do you regret not earning truckloads of money that could buy you the luxury life you’ve always wanted? I’ve seen people become depressed because of their poor finances. Many teenagers miss out early in life just because their parents cannot afford the latest gadgets their rich friends can afford.
However, money is not everything. Money might buy you things that make you feel happy, but happiness from within is what money can’t afford.
I have a lot of friends who have very little money to spare, yet live a rich life. Their lifestyle, their personal satisfaction, and their acceptance of themselves are what makes them seem rich. Non-monetary things can also make you happy – and believe me, they will be your biggest asset in the long run.Advertising
Here are a few ways you can live a rich life without lots of money.
1. Learn to accept yourself
It can be hard for you to understand that money should be not a top priority. You can become rich in an instant and then lose it all the next day. You need to replace your personal desires with acceptance and learn to stay happy with what you have right now.
Seek inner peace and learn to control the uncontrollable in life. If you find yourself obsessing over things you want but don’t have, take a paper and write down that it’s okay to not have those things.
2. Become creative
You need to become creative to manage your personal finances and remain happy even if you don’t have much. If you are rich, you buy. If you are not rich, you create. Yes, not having much money can help you be creative.Advertising
Learn to find happiness in small things. Draw a picture, take a photo, and invent something that keeps you at peace. Happiness is within you.
3. Stay authentic
You need to stay true to yourself in order to live a rich life. When you find inner peace and do things you love, you are reflecting your inner-self. There is no greater wealth than understanding what you are meant to do in life.
Regardless of your financial situation, try to believe in yourself so that you can stay happy, enjoy the small things in life, and keep yourself motivated.
4. Do what you love
Making tons of money is what most people might call being rich. However, if the person is not happy with their job, he probably considers himself the poorest person on earth.Advertising
Floyd Mayweather’s net worth would not have been $700 million today had he not been a boxer. Similarly, Bill Gates would not have been the richest man on earth if there was no Microsoft. People who pursue what they love have always prospered more than people who work out of compulsion. The more you start doing what you love, the more money will continue to flow into your life. Even if it does not, you still get to stay happy as you grow rich within yourself.
5. Stay gentle
Gentleness was considered one of the greatest virtues by a philosopher named Confucius. When you are humble, you develop an ability to sense your environment and work accordingly.
For example, look at people like Buddha and Gandhi and compare how lived their lives. They were gentle, realized the value of their lives, and always stayed strong in their thoughts. Buddha left materialistic prosperity to live the life of monk and find the richness within himself. Gandhi belonged to a poor family, and despite leading one of the largest revolutions in the world, always stayed gentle.
Try to be soft and smile to make others smile. If you succeed in making other people happy, then you are truly rich.Advertising
6. Become generous
Giving money is not the only act of kindness. In fact, I would not call it being generous at all. Generosity is what comes from within. When you give someone something from your heart you feel happy, and that feeling is what makes you feel rich. You also need to realize that sharing what you have, without even thinking of what amount you have, is what an act of kindness means.
Also, provide undivided attention to people who need help from you. Nothing is more generous than giving all you have and making others feel good.
7. Build relationships
The real wealth that you build and will be remembered through your relationships. People need to value their relationships more than anything else. Seek to make emotional connections with your family, your friends, your partner, and people that you meet regularly.
“Matters of the heart are important to me. All this materialism and all the money and wealth are things that you don’t take to the grave. One day you have it. The next day you don’t.” — Shari Arison
Featured photo credit: Flickr via flic.kr
Published on January 8, 2021
How To Pay Off Credit Card Debt Fast: 7 Powerful Tips
Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.
The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.
Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.
What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!
Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:
1. Pay More Than the Minimum Credit Card Payments
Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.
Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.
You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.
The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.
2. Start With High-Interest Credit Card Debt
If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.
First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.
At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.
3. Revisit Your Budget
Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.
You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.
Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.
If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.
4. Avoid Using Your Credit Cards
Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.
The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.
It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.
5. Start a Side Hustle to Boost Your Income
You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.
If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.
Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.
It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.
6. Sell Your Used Items for Extra Cash
Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.
A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.
Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.
When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.
7. Know When to Seek Help With Your Debt
Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.
There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.
In extreme cases, the debt solution can be:
- Debt relief – where your debt is partially or wholly forgiven
- Debt consolidation – taking out one loan to repay others
- Debt settlement – the creditor forgives a significant portion of your debt
- Bankruptcy – legal process for seeking relief from some or all your debts
It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.
Wrapping It Up
Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.
So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!
More Tips on How to Pay Off Debt
- These 6 Practical Solutions Could Help You Pay off Debt Sooner
- 5 Things to Do When You Are Buried in Debt
- How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide)
Featured photo credit: rupixen.com via unsplash.com
|||^||The Balance: 3 Reasons to Pay More Than Minimum Card Payments|
|||^||Investopedia: Debt Avalanche Definition|
|||^||Nomoredebts.org: 5 Signs That You Need Professional Help with Your Debts & Not DIY|