Seven Tips For Getting Out Of Debt

Don't let debt keep you from experiencing true financial freedom.

The first step to creating financial wealth and security is to know your spending habits. You have to live within your means and spend less than you earn. When you live within your means, you create opportunities for you to start saving which allows you to explore more possibilities for creating wealth.  When you live within your means you also reduce stress in your life. 

To achieve this status, you need to do a budget and list all payments made.  You need to establish your spending patterns and determine what is frivolous spending and what is necessary spending.

Once you know where your money is going then you can start settling debt with monies that were previously spent on non-necessities. This is the start to building your wealth portfolio, this is the start to your financial freedom.

Follow our seven simple steps to a debt-free life:

1. Get to know your debt
How much do you owe, to whom do you owe and what is your minimum monthly payment? You can’t win a war against an enemy you don’t know.

2. The good vs the bad
Differentiate between good debts (home and vehicle finance), and bad debts (credit cards, loans, furniture and clothing accounts).

3. Communicate
Discuss your debt with someone whose input and support you value. You have a better chance working as a team rather than on your own.

4. Get a game plan
Start thinking about, what money is coming in, what’s going out and how much is left over. 
Set up a budget and get your family involved.

5. Set your plan in motion
Start working on your budget. Look into available debt repayment plans, and opt for something simple, effective & achievable.

6. Let go of the unnecessary 
Eliminate all luxury spending. Killing your debt requires allocating all your available resources. Remember that every penny counts.

7. Don't carry cards
Destroy, or at the very least, hide away your credit cards, clothing account cards etc. You want to learn to control and manage that urge to spend.

July 17 2017 By Noble Wealth Management Financial Planning