In my previous blog "Why You Work Smart, Not Hard" we talk about how time is a precious commodity that once it's gone, you can never get it back. When I was in debts, I realize just how much of my time was taking from me. Debts take from you in all aspects, it takes your time, happiness, and crush your dignity if you allow. Learning to balance your income and expenses will keep your life balanced. If you are currently working for money, try living below your means to ensure you have a little left over for rainy days.
Start by Understanding How you Got into Debt. Never look at life with mistakes, look at every event as an opportunity to learn. Understand how and why you accumulated your debts to avoid a future repeat of the same error. Addressing the underlying issues enable you not to go back to your old spending habits. The problem is not your debts; it's the bad habit you have acquired that builds debts.
Decide on the best approach for your current dilemma
Stop, don't panic, assess the situation before you come up with any solution. Crisis can seem much worse than they are if you panic so take a deep breath to understand what is going on in your life. The best solutions come to us when we use our brain power to assess instead of making assumptions about the situation.
“I join a debt management plan program to help me cut back on interest and set a monthly payment plan I could realistically stick to.”
My debt management plan worked for me because it allowed me to lock in my monthly payments and avoid high-interest rates. If you decide to join a debt management plan first think of your fixed expenses, next add your payment amount for your plan, and now you know how much cash you have left over. Gather all your debts and your income for the month and get quotes from debt management companies. Once you start the program, they lock in rates on your interest or eliminated them all together, lowering your debts considerably.
As long as you are responsible, you can still have a credit card, own a home, and take vacations. Take the time to understand interest and charges on your cards, learn to create good spending habits. When paying back your credit cards, if possible, pay more than the minimum payments or pay the balance off.
It only took me about six months to develop one of the worst habits of my life, frivolously spending money I did not have. After all the credit card debts had come in the mail, it all became real. One day I had a nice bank account balance well over $5,000, the next day it was not even enough to pay my debts.Not controlling your money and accumulating bad debts is a financial suicide mission. All you have to do is take care of your money; it will take care of you. Learn to cut all unnecessary expenses, keep track of your money no matter how little or big your account balance. Keep track of all your spending's and your income, use balance sheets and income statements. Taking the time to track your money will make you or break you financially. It is not just about how much you are making, but how much are you keeping after expenses. Earning money is great, keeping most of that money is even better. Conquering your debts require more than paying the bills every month, you need to overcome your debts permanently. Create and follow logical steps to get out of debts successfully.
Learning to control your money is learning to control your life. You need to acquire skills, practice monitor and build towards the future. Creating these kinds of characteristics traits will allow no room for failure, you can focus on becoming the best version of yourself.