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7 Types of People Who Can’t Avoid Debt

7 Types of People Who Can’t Avoid Debt

Living in a first-world country has a lot of perks and being able to buy things you can’t immediately afford is a big one. Taking out loans and acquiring a bit of debt is an essential part of life. In an ideal world, people would use credit for major, life-altering purchases like a house or a car and then pay off the debt within the next few years. However, this idealistic scenario hangs on the assumption that people are incredibly responsible and will be able to create an effective budget and stick to it, even if it means not being able to afford all the pretty, shiny things that they want. There are people out there who just can’t seem to avoid debt; they seem almost drawn to it. If you want to avoid becoming one of them, you need to understand what it is that causes problems with credit.

1. People whose buying decisions are influenced by others

The type of person that is most likely to accumulate debt is one who is unsatisfied with his life and always looks to others with envy.  These people falsely assume that if they buy the same things and live the same lifestyle as someone they admire, they will somehow be respected and achieve a sense of fulfillment. Just because the Johnsons from down the street have a Mercedes parked in their driveway doesn’t mean that you have to go out and get one, nor do you need some of the high-tech gadgetry and jewelry they flaunt at local parties – particularly if all these things are well above your pay grade. In order to avoid becoming this type of person you’ll need to sit down with your significant other or family members and have constructive discussion about what you can do to feel comfortable in your own skin and how much you can actually afford to spend on various items. There are a number of self-help books and motivational videos out there that will help you come to terms with your finances.  You need to realize that respect and happiness aren’t synonymous with owning a bunch of high-end equipment and expensive clothes.

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2. People who are impulsive buyers

Excited Shopping Woman

    Some people just don’t seem to have any self-control whatsoever. They will walk around the mall like  little squirrels gathering nuts for the winter, turning their heads at every “Sale” sign and stopping at every shop window. It doesn’t matter whether they need an item or not, they will buy a new blender, rowing machine, tablet or purse, simply for the thrill of it. Now, there is nothing wrong with going on an endorphin-inducing shopping spree every now and again, but impulsive buyers will accumulate large amounts of debt by constantly buying impractical items they don’t really have a use for, or even useful items that are way out of their price range. Knowing your priorities and being realistic can help you avoid using credit to make impulsive purchases. When you get an urge to buy something, take a moment to breathe and remind yourself that your finances don’t allow that type of purchase right now. Write some of those expensive, pretty things down in your wish list and quench your thirst for shopping by buying some inexpensive trinkets.  As long as you buy something new you will get that rush of excitement you usually get from shopping; just keep it cheap and simple.

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    3. People who take random advice from others

    While your family and friends can sometimes be a true source of inspiration and offer a helping hand and shoulder to cry on, not every piece of advice they give will be particularly sound. Remember, these people are not, for the most part, experts on business and finance, and there is a good chance that they have heard a few sentences on TV or read something online a few years back and now feel qualified to give out all kinds of advice on how to avoid debt or pay it off. If you want advice on developing a good budget and getting your finances in check you need to consult professionals. When a friend or family member gives you some financial advice, just nod politely and thank them, then double check it when you get home and see if what they suggest really works.

    4. People who don’t have clear goals

    It’s a sad sight to see, but there are plenty of people out there in their early thirties acting like teenagers and focusing on game consoles, video games and beer rather than investing in their home, their children’s clothes or paying off their student loans. When you are that selfish, irresponsible and have no real ambition and clear goals it’s easy to lose sight of what’s important and continue living in an imaginary world where things like financial stability, family, responsibilities and hard-work are disregarded in favor of  trivial things. Having some kind of idea of where you want your life to go is important if you don’t want to become this type of person. Setting goals for yourself isn’t really difficult – you need one or two major goals that you want to achieve in  5-6 years and few smaller goals that can be achieved within the next year. The goals can be as simple getting in shape or paying off your car by next year, but all of this should tie in to your long-term goal, e.g. getting a bigger apartment so you can move in with your partner.

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    5. People who don’t have a savings account

    A savings account with a couple of thousand dollars on it can serve as a safety net. If an unexpected event occurs and you don’t have any money stashed away, it can end up ruining your efforts to pay of your existing debt or cause you to fall further into debt. People who have at least a thousand dollars saved for rainy days can deal with all sorts of problems and suffer much less stress than those getting by paycheck-to-paycheck. Be sure to set aside a bit of money each month – even $100 or $200 every month can be enough. Change your thinking about windfall money; your tax refund, a bonus, or a generous gift should be seen as an opportunity to build your savings, not to buy some big-ticket item you’ve been wishing for.

    6. People who don’t know how to create an effective budget

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    Girl writting in notebook

      Writing things down on paper has an incredible way of enlightening you as to where you are going wrong. You can justify all kinds of bad decisions in your head, form a distorted picture of reality and even lie to yourself about how much you spend on things that are not essential, but when the cold facts are sitting in front of you, in black and white, it’s much easier to create a plan and make the right budget cuts. Write down how much you earn – coupled with how much other members of the household earn – and make a list of your monthly expenses. You need to divide the expenses into several categories, but the most important classification is necessary, fixed expenses (car payments, rent, bills, etc.) vs. flexible expenses (food, clothing, gas, hygiene products, etc.) vs. optional expenses (video games, new hat, blender, etc.). Savings can be made on flexible expenses (avoiding overpriced name brands, buying food in bulk, using coupons and looking for good deals) while a lot of optional expenses can be cut out of the budget altogether or put on hold for a couple of months until your finances start shaping up.

      7. People who use credit for everything

      It is quite reasonable to use a credit card in some situations and take out loans when a major investment is required, but there are people who’ll make 3-5 small store runs during the day and just keep putting things on their credit cards. When you buy with cash you have a very good idea of just how much you are spending.  When using a credit card it’s easy to get carried away and forget that all those little purchases add up to quite a bit. If you want to stay debt free, consider using cash for smaller purchases or creating a list of things you need for that day and buying them all in one go. Weekly shopping runs are a great way to save money because you buy in bulk and avoid unplanned, spur-of-the-moment purchases like random snacks and drinks. Having a list prepared ahead of time will help you to get everything you need in that one trip, and will also help curtail impulse buying.

      These seven types of people can’t seem to avoid debt for many different reasons. If you want to learn how to keep yourself from accumulating more and more debt and wish to pay off your existing debt,  you will need to identify the mistakes these people make, understand why they lead to more debt, and try to avoid making the same mistakes.

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      Ivan Dimitrijevic

      SEO Consultant

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      Last Updated on August 7, 2018

      How to Make Money with a Blog (According to 23 Successful Bloggers)

      How to Make Money with a Blog (According to 23 Successful Bloggers)

      Not too long ago, you believed that making money with a blog was impossible. But after seeing dozens of income reports from other bloggers, you became hooked. Now you’re left wondering if you could achieve similar results.

      In this article, I’ll consolidate the lessons learned from some successful bloggers and get you the advice on how to make money with a blog.

      How to monetize your blog the right way

      A blog is more than a website with words, it’s a brand that solves a problem. When you’re first starting off it’s difficult to make any money. Why? Because no one trusts your brand.

      The solution is simple, provide engaging content to build a large audience. Once your blog’s traffic and subscribers have grown, here are the most effective ways you can monetize your blog.

      1. Affiliate Marketing[1]
      2. Selling Courses[2]
      3. Coaching[3]

      “Get rich quick” schemes rarely work

      Some believe that bloggers had their success handed to them, but this is far from the truth. Their success required sacrifice, discipline and courage to work. And this is where most people run into trouble because they’re unwilling to put in the work.

      Your first step to building income through your blog is to stop believing it will be easy to achieve. The trick is to only listen to a few bloggers who are at the position you’d like to be and take massive action.

      It can take months or even years before you start earning income.

      And when the going gets tough, keep going. Don’t stop. Learn to love the journey more than the outcome and you’ll build a profitable blog.

      Executing the right advice leads to success

      You need to learn from bloggers with diverse backgrounds.

      What motivates someone to build an online business may not inspire you. But there’re strategies some bloggers will share that you’ll resonate with.

      So what’s the next step? To start taking action.

      How to make money with a blog: Lessons learned from 23 successful bloggers

      Browse the list of some of the most influential and down to earth bloggers in today’s time. Chances are that you’ll resonate with a few of them. Take their practical lessons and apply them to your blog.

      These bloggers may spark light bulb moments for you and change your life forever.

      1. Gary Vaynerchuck – Down to earth entrepreneur who’ll transform your life

        Gary is a proud “D” student who helped his dad grow his wine liquor store into a 60 million business. He left the wine business to start his own digital agency, which now generates over $100 million.

        Today, he inspires entrepreneurs of all ages through his blog, vlog, and Podcast to take full control of their lives doing what they love.

        Lesson: Have the patience to build a successful business.

        2. Pat Flynn – Online Jedi who’s fearless to try new ideas

          Pat built several sites, is an author of many books and has launched many podcasts. His blog is one of the most popular sites on the web for beginner and experienced entrepreneurs. Despite Pat’s success, he’s still humble and willing to help others.

          Lesson: Don’t let fear stop you from stepping out of your comfort zone.

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          3. John Lee Dumas – Entrepreneur on fire, inspiring others through his voice

            John is the host of EOFire, an award-winning business podcast, interviewing top entrepreneurs. He’s interviewed successful entrepreneurs such as Gary Vaynerchuk, Tony Robbins and many more. John is also the author of the #1 ranked book for Podcasting in Amazon. He’s an excellent example of what happens when you chase your dreams and remain committed.

            Lesson: Follow one course until success (FOCUS).

            4. J Money – Rockstar money expert who injects “cool” into finance

              J Money is an award-winning personal finance blogger, company advisor and money rockstar. He injects a “fun” personality in his blog, adding a sense of “coolness” to personal finance. He’s the founder of RockstarFinance, a personal finance directory filled with useful resources.

              The fresh perspectives J shares about money will leave you pondering for days.

              Lesson: Have fun with your blog to stand out and create engaging content.

              5. Mr. Money Mustache – Badass blogger who’ll transform your financial lifestyle

                Mr.MM’s goal is to help you live a “badass” life. He has unique money saving ideas up his sleeve, such as cutting your grocery bill in half, and DIY solar panels. There are no “generic” articles in his blog, only thorough and well-thought ideas.

                Mr.MM is financially independent and willing to share his secrets if you dare to listen.

                Lesson: Focus on your needs and wants to live your dream lifestyle.

                6. Sam – Thoughtful blogger sharing smart insights

                  Sam is a blogger and a real estate investor. His blog has received millions of views and featured in Forbes, Lifehacker, CNBC, and many more. Sam dives deep into topics like real estate, retirement planning, and career strategies. Read his blog and discover why it’s “bookmark-worthy”.

                  Lesson: Keep investing in yourself to be better prepared for the future.

                  7. Joshua Dorkin – The persistent entrepreneur who never lost hope

                    Joshua is a well-known entrepreneur and speaker who’s featured in major publications. He’s built the nation’s largest real estate investing blog and co-host of the BiggerPockets podcast.

                    He’s the ultimate example of what’s attainable when you pursue your dreams. His blog is one of the only few you’ll need to reach financial independence with real estate.

                    Lesson: Keep working towards your goal despite who tries to stop you.

                    8. Ramit Sethi – That “cool” teacher who’ll help you reach your next level

                      Ramit is a New York Times Bestselling author. He prides himself on being different, which is why he loves giving away 98% of his material for free. His content is binge-worthy and will bring out the awesome out of you.

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                      If you’re ready to master your inner psychology or finance, then stop by Ramit’s blog.

                      Lesson: There’s always a way to get what you want as long as you’re willing to put in the work.

                      9. Paula Pant – The entrepreneur who took an enormous risk chasing freedom

                        Paula is a writer, speaker and freedom enthusiast. It didn’t take long after landing her “dream” job to know it wouldn’t offer the freedom she’d craved.

                        Today, Paula has reached financial independence by building many income streams. Her writing style is engaging will leave you questioning your limiting beliefs.

                        Lesson: It’s worth risking the odds to live your desired lifestyle.

                        10. Steve – Early retiree, fearless to take a stance

                          Steve reached financial independence 30 years earlier than the typical American. You can find his work in major sites such as Forbes, Business Insider, and many more.

                          Currently, Steve writes detailed content on his blog helping readers achieve financial independence. If you’re looking to save money, or retire early, you’ll love Steve’s blog.

                          Lesson: Plan ahead to reach your desired goals.

                          11. Robert Farrington – Millennial Sensei for college students

                            Robert is a consultant, and a writer dubbed as America’s Millennial money expert. His passion for managing money at a young age led him to create The College Investor. In his blog, you’ll find great resources to crush student loan debt and invest your money.

                            Lesson: Be open-minded with how you can express your passion.

                            12. Joe Udo – The writer who took the road less taken

                              Taking risks ain’t easy, but there are always a few people who take it anyways. Joe is a blogger, investor and a great example of what risk takers do. He retired before turning 40, after leaving a job he’d been working for over a decade.

                              Joe’s blog shares proven ways to building passive income, and managing your money.

                              Lesson: Taking risks becomes easier when you prepare daily.

                              13. Elle Martinez – The financial superwoman for struggling couples

                                Elle has a passion for money, so much that she’s been writing about personal finance for over a decade. She enjoys helping couples build their finances together, and live on one income.

                                Elle’s blog helps you avoid money fights, boosts your savings, and much more.

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                                Lesson: Find ways to solve the problems you’re obsessed about.

                                14. Len Penzo – Creative blogger who makes personal finance entertaining

                                  Len’s blog has received over 9 million visitors. He’s featured in major publications such as the NY Times, Forbes, and many more.

                                  Len transforms boring money subjects into engaging content that hook readers for more. If you want to make smarter financial decisions, his blog is a must-read.

                                  Lesson: Create engaging content to build a large audience.

                                  15. Farnoosh Torabi – Finance expert, inspiring women to unleash their full potential

                                    Farnoosh used to borrow clothes and eat $5 Footlongs until she climbed out of debt. Today she’s a journalist, author, TV personality, and financial expert. Farnoosh is the host of SO Money, one of iTunes’s top financial Podcasts. She’s a leader and inspiration to other women.

                                    Lesson: View your shortcomings as gifts and use them to stand out.

                                    16. Michelle Schroeder-Gardner – Young entrepreneur achieving success on the road

                                      Michelle started blogging in 2011 with hopes of improving her finances. Today, her blog is one of the most popular personal finance blogs you’ll find. There’s a slim chance you might catch her on the road, as she’s touring around the US with her husband. Her blog contains advice for growing your income and living a better lifestyle.

                                      Lesson: Be transparent about your struggles to build a supportive audience.

                                      17. Phillip Talyor – Money expert who knows how to throw a finance party

                                        Phillip Taylor or “PT” is a blogger, CPA, and a finance enthusiast. At one point, he’d accumulated a ton of debt and was in need of financial wisdom. He created his blog to document his financial wins, and collaborate with others.

                                        Because of Phillip’s passion for finance, he created FinCon. Today, Fincon is the go-to conference where influencers and financial brands meet.

                                        Lesson: Hard work is more important than experience to achieve your goals.

                                        18. Stefanie O’Connell – The financial role model every woman needs

                                          Stefanie started blogging around 2008, at a time when most of America was in a financial crisis. Despite this, she went from living on less than $500 a week to dubbed as a Millennial money expert.

                                          Stefanie spends her time helping ambitious women adopt “rich” habits. Join Stefanie’s tribe and start feeling empowered with your finances.

                                          Lesson: You can be a role model for others if you’re brave enough to face your fears

                                          19. J.D. Roth – Finance enthusiast who’ll leave you thinking smarter

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                                            J.D. was a contributor of the “Your Money” column for Entrepreneur magazine. His blog is one of the best personal finance blogs on the web and has received millions of visitors. You’ll find in-depth articles that will leave you making smarter money decisions.

                                            Lesson: No matter how big your problems are, there’s always a solution.

                                            20. Catherine Alford – Entrepreneur mom, inspiring women to chase their dreams

                                              Catherine is a speaker, writer, and a proud mom of 2 twins. She’s an inspiration for women looking to spend more time with their families. Catherine became best Contributor/Freelancer for personal finance in 2014.

                                              Discover why you don’t need to choose between your career and family at Catherine’s blog.

                                              Lesson: Your story can become the inspiration many are searching for.

                                              21. Natalie Bacon – Life coach and entrepreneur inspiring women to design their dream lives

                                                Natalie is an inspiration for those looking to pursue their passion. She’s featured in major sites like The Huffington Post, Forbes, and many others. Natalie follows her dreams and isn’t afraid of hard work. Her blog contains quality content that will inspire you to take action.

                                                Lesson: Don’t be afraid to change course because you’ll be one step closer to finding your dream life.

                                                22. Crystal Paine – Inspirational entrepreneur who loves to give back

                                                  Crystal is a personal finance blogger who’s been writing since 2006. Her site has creative ways to save money on groceries, clothes, toys, and much more. Crystal donates a percentage of her blog’s income towards life-impacting ministries.

                                                  Her blog will not only teach you how to save money but also how to live an abundant lifestyle.

                                                  Lesson: Focus on helping others first and you’ll build massive wealth.

                                                  23. Liz – Frugal expert who’ll transform your bad spending habits

                                                    Liz is an author, writer and a frugal expert who enjoys helping others save money. She’s featured in NPR, Forbes, Liz’s blog contains creative ways to save money and reach financial independence.

                                                    Lesson: Be bold enough to prioritize your opinion above others’.

                                                    Start your blog and achieve jaw-dropping results

                                                    Imagine waking in your pajamas and opening your laptop. You notice a few hundred dollars were deposited to your Paypal account. This money didn’t fall from the sky, it came from your blog.

                                                    Not too long ago you believed making money from a blog was impossible, but now you’ve finally achieved it. Amazing isn’t it?

                                                    This can be your reality if you learn from these successful bloggers. Go through this list and pick your top three bloggers. Take a look at their content (Blog, Podcast, Video), and break your bad habits.

                                                    The time has come to transform yourself into the blogger you’d like to become. You’re not someone who only wants to accumulate a ton of cash. You want to live your dream life and impact others doing what you love.

                                                    What’s stopping you now?

                                                    Featured photo credit: Pexels via pexels.com

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