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6 Tips That Can Help You Get Out Of Debt

6 Tips That Can Help You Get Out Of Debt

A lot of people don’t think that being in debt is a terrible thing. They think of it this way until they find themselves in debt without any options of getting out of it. Most people actually become indebted because of this attitude.

Fearing debt is a good thing — it keeps you in check. Things happen so quickly and before you know it, you can find yourself caught up in a difficult situation. If you didn’t have the right mindset before, when you really should have taken action to avoid the mess you’re in now, then it’s time to change your attitude and get back on track.

Don’t be scared; this happens to a lot of people and you are not the first nor the last person trying to get out of debt. There are many of us who have gone through the same thing, and if others could get out of it, why shouldn’t you?

There is no time for fooling around and you must start working on this issue seriously. It’s not going to be easy, but then again, nothing worthwhile comes easy.

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1. Create a plan

The first thing you need to do is sit down and look at all the numbers. See how much you are spending, where you are spending it, how much you are earning, and come up with a plan based on all the numbers. You can even see where you can save money by just looking at your budget.

Who knows? Maybe you subscribed to something a while ago and forgot about it since it didn’t mean anything to you back then, but now this money can be used for paying off your debt on a monthly basis. See if you have any unnecessary costs you can cut and come up with an amount you can afford to pay off each month.

Once you set this, you should make sure to stick to it and never neglect your plan. One of the most important factors when trying to get out of the debt is not to get demotivated. When you set monthly goals, you will achieve mini-victories and encourage yourself even further.

2. Pay off your high-interest debts first

If you have credit cards or some other form of debt that has high interest rates, you should look to pay them off first. Interest rates will pile up over time and the longer you wait, the more money you will lose. Pay them off as quickly as possible and improve your credit score as you start to get your finances back on their feet.

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3. Prepare your food by yourself

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    One of the first steps is to start saving up and, depending on the amount of debt you have, drastic measures might be required. This doesn’t mean that you won’t eat or that you will be forced to eat unhealthy foods. On the contrary, you can eat solid, healthy foods for a cheaper price than at restaurants or fast food joints.

    Get simple ingredients and cook decent meals. Set aside some time for preparing your food and you are good to go. When you buy pre-prepared food, you also pay for the service of preparing the meal for you — you do this yourself and cut those costs. There are many recipes for cheap and tasty meals you can find as well, so that your stomach can enjoy itself while you pay off your debt.

    4. Find a second job

    Times are hard, and if you are really that desperate and in a hurry to pay off your debt, you can find an additional part-time job that can earn you extra cash. Besides saving up money, it is also important to earn more, and you can do this by putting in additional work at your current job and working overtime or by working two jobs at the same time. Everyone has some skills or talents and you can try and monetize yours, no matter if we are talking about teaching English online, writing, babysitting, delivering packages, etc.

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    Anything you can find will mean a lot to you, especially if you get a job at a restaurant where you can get free food as well. It won’t be too fresh, but it’s still healthy food and you won’t pay a dime for it. There are a lot of people who have two jobs just because they want to advance in their careers, and if they can do it, why shouldn’t you try this method as well to save yourself from a financial disaster?

    5. Sell the stuff you don’t really need

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      Another way you can quickly earn some cash is to sell some of your stuff. Most people have a lot of stuff just laying around. We don’t really need this stuff to live our lives, and we just cling to it, hoping that we will do something with it in the future. Well, this is a good opportunity to do something with this stuff — sell it and help yourself get out of debt quickly.

      If you live in a suburban neighborhood, you can set up a garage sale. This is usually the quickest and the cheapest way you can sell a bunch of stuff without having to put in a lot of work and time. If not, you can sell stuff online on various marketplaces. This may seem like a long shot to you, but trust me when I tell you that no matter how much something may seem uninteresting to you, to somebody else, it might be the thing they were waiting for their whole life.

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      6. Move back in with your parents

      If you are still single and you don’t have a family, a good move is to try and move back in with your parents for a while (if they let you). This will give you the option to use that rent money for your monthly payments and speed up the process even further. Your parents might even offer you a meal from time to time — nothing wrong with that. Of course, you will have to listen to them give you lectures about your life and where you went wrong, but hey, this time it seems like they have the right.

      Try out these hacks and I guarantee that you won’t regret it. Like I mentioned before, this is no game and you will have to take your debt seriously if you want to deal with it as quickly as possible. No matter what type of debt is burdening you, there is a way out of it. You just need to work hard and take responsibility for your actions. Do not even think about getting a loan to pay off your old debt — it is an endless loop of interest rates and you will make it even harder on yourself.

      Featured photo credit: Cathryn Lavery via unsplash.com

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      Ivan Dimitrijevic

      Ivan is the CEO and founder of a digital marketing company. He has years of experiences in team management, entrepreneurship and productivity.

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      Published on January 15, 2020

      9 Millionaire Success Habits That Will Inspire Your Life

      9 Millionaire Success Habits That Will Inspire Your Life

      As technology evolves and information becomes more accessible, it has also become more challenging to define success. A lot of people are trapped in the rat race while trying to discover the actual formula for success.

      You could become overwhelmed with what tools, techniques or philosophies to imbibe while trying to get tips over the internet. At every click and turn, there are ‘how-tos and quick-fix’ on how to become successful overnight. You will find several courses, articles, videos and books on how to achieve financial success.

      But what if I tell you it doesn’t have to be complicated as people made it out to be? What if you could achieve success by merely following these 9 millionaire success habits?

      1. Read for Personal Development

      A daily habit I have discovered millionaire share in common is reading. For instance, if you are an entrepreneur, you need to read to become an efficient leader and a productive business owner. Reading helps you to grow and learn without going to a business school.

      A research conducted by Thomas Crowley indicates about 85% of self-made millionaires read at least two or more books each month. [1] Warren Buffett is one of these examples. He spends 80% of his day reading. In the early days of his investment career, he would read 600 to 1000 pages in a single day.

      While millionaires sometimes read for pleasure, they also learn to improve themselves. They read topics on leadership, how-tos, self-help, biographies, lifehacks and also follow current events.

      2. Establish Multiple Sources of Income

      Another success habit I noticed about success is that they don’t depend on a single income source. Every millionaire possesses multiple sources of income. This helps them to manage economic challenges and also make more money.

      They are passive income addicts. They earn interests from loans, rental income from real estate, royalties from intellectual properties, dividends from investments. They also launch a side business or run a website or sell information products.

      How income is made either passively or actively is what separates the successful from the wannabes. They are always learning ways to build multiple streams of income.

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      3. Live on a Stipulated Monthly Budget

      An average millionaire does not believe in luck and jackpot. They take the time to understand cashflow-income and expenses. Based on this, they establish a monthly budget and religiously stick to it.

      The essence of the budget is to minimize unnecessary expenses. This will help you gain complete control of your financial life. Budgeting helps you to avoid overspending to achieve your financial goals. Here’re some tips to help you stuck to your budget: 32 Hacks for Sticking to Your Budget

      4. Manage and Maximize Money

      The most significant education for a millionaire is financial intelligence. Nobody attains financial freedom without gaining financial intelligence. This is the more reason millionaire regardless of their income update their knowledge about tax strategies.

      They always seek to reduce their tax bills. One approach they employ is by living or incorporating their business in states with no income tax.

      Do you know that about 60 companies paid $0 legally in the 2018 tax year? Some of these companies that ‘avoided'(note: not evaded) federal income tax include Chevron, Amazon, Halliburton, General Motors, Delta. The total income. Their total US income was totaled at $79 billion with an effective tax rate of -5%.

      What’s the deal? They got a tax refund. How do they accomplish these?

      An ITEP report indicated that they have the culture of throwing huge sums at tax experts who assist them in discovering creative, as well as convoluted means of paying little tax as much as possible. [2]

      5. Avoid Debt

      Another habit that separates the millionaires from the rest of the world is how they manage debt.

      They don’t live an extravagant lifestyle and only buy what they need and can pay for. They do not book hotels and flights by using their credit cards to pay for them.

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      They are conscious of the interest rates even when they use credits cards or take loans. They use those facilities for their advantage or pay with cash because of its zero percent interest rate.

      6. Set Daily Goals

      It does not matter if they are setting business, career, or financial projections; they have the success habit of setting short term goals. They plan daily and weekly to generate momentum in achieving their long-term goals.

      Ensure you prioritize when setting daily goals. This will help you to achieve the most important to-dos on your list.

      Setting priorities will help you to focus on highly rewarding activities. If you desire financial freedom, it is wise to pursue activities that earn you thousands of dollars than hundreds of dollars.

      7. Don’t Act Rich

      The goal is not to act rich but to be productive. Interestingly, Thomas Stanley buttressed this in his book that the most prestige brands of cars, about 86% percent are toys of the non-millionaires. People with huge fortunes tend to drive exotic cars but in reality, the largest consumers of pricey cars are aspirational. [3]

      According to findings by Experian Automotive Researchers, 61% of individuals who earn $250,000 or more rarely buy luxury brands. Instead, they buy Hondas, Toyotas, and Fords like the rest of the world. The reason is they are not ready to spend money on premium cars that tend to drop in value in a couple of years as it would cost money. Millionaires invest in assets that appreciate. [4]

      8. Own or Buy Businesses

      In Robert Kiyosaki’s cashflow quadrant, he divided how you earn income into four quadrants. The E and the S quadrants take the left position while the B and the I are on the right side. According to Robert, it is possible to be on all quadrants, but the millionaires are not.[5]

      • E stands for employee – they work for others
      • S stands for self-employed – they work for themselves
      • B stands for a Business owner- employees work for them (500 or more employees)
      • I stand for Investors – Money work for them like Warren Buffet.

      Your goal is to move from the left quadrant to the right quadrants where you own big businesses or make money work for you.

      It is possible to become financially successful by pursuing what you love. For instance, if you love writing, aspire to be the best seller. Wealth and passion work together.

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      9. Avoid Get-Rick-Quick Scheme

      A millionaire holds patience as an essential virtue. It takes patience to become successful, not only in finance but in every aspect of life. While it is possible to become financially successful at an early age, most millionaires hit it at age 50. They live a moderate life, invest in their future and retire rich.

      Bonus: How Can You Develop the Millionaire Success Habits?

      Having learned these habits, the next question is,

      How can I develop the Millionaire Success habits?

      Here are six values you will need to develop:

      Establish Your Life Vision

      You need to be clear about what you want in life to set yourself for a life of success. Your vision has to go beyond becoming a millionaire to understanding why you want to become one. Any great entrepreneur you will ever find has a clear vision and an established mission.

      Understanding why you are doing what you do will drive you to become the kind of successful person you want to be.

      Make Your Passion a Profession

      When your passion becomes your profession, work becomes pleasurable. Loving what you do enables money to flow to you and through you.

      So what’s going to be? Wake up every morning by speaking positive words into your work, love what you do, and focus on the work that brings you joy.

      Take a look at this article and learn how to make it happen: 5 Steps To Turn Your Passion Into A Career

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      Focus on Solution

      Focusing on the solution means establishing the problem that you or your business address. This will help you focus on the solutions when others are faced with challenges.

      A millionaire has a mindset that is fixed on the solution. He or she knows there’s a way out, and that every problem is an opportunity in disguise.

      Improve your problem solving skills with these tips: 6 Effective Ways to Enhance Your Problem Solving Skills

      Develop Your Leadership Skills

      Leadership skills are an asset that is indispensable if you want to develop a millionaire success habit. The more you hone your leadership skills, the more you will attract leaders who share your values.

      Be Growth-Focused

      Millionaire entrepreneurs prioritize self-improvement. Here’s how to achieve it:

      • Get a coach. Coaching will impact your life, and you will achieve peak performance in life and business when you have a life coach.
      • Be coachable. It is not enough to have a coach; you must be coachable. Sometimes, you need feedback and counsel to reposition your life and business. A coach has the wisdom and experience to counsel you from a higher perspective. The more you receive feedback and work on yourself, the more you become better at what you do and who you are.

      Flip Your Thought Pattern From Acting To Being

      It is not enough to have a millionaire success habit, you must also become a person of positive influence. This is how you can become significant. Bill Gates is not only rich; he is changing lives in Africa and different parts of the world.

      If you want to become successful, you must first be and think like a successful person. This is how resources you need can flow into your life.

      Here’s a final thought from me:

      It is not enough to do something to have something; success is about being someone who possesses what is needed to take positive and inspired actions.

      More Success Habits

      Featured photo credit: Austin Distel via unsplash.com

      Reference

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