August 29, 2010
Filed under: Manage Your Money — Gloria and Alpha @ 1:00 am
This is a concept that may seem pretty simplistic, but it’s one of the main ways you can really start to reduce your debt.
The first step is calculating how much debt you actually have, and the sources of it. It’s not a pleasant process, but extremely necessary. Make a list of what debt you have and with whom the debt is sitting with.
If it’s predominantly on credit cards, you can often open a new credit card and the transferred balances incur a lower rate of interest for an introductory period.
Keep your eye out for these types of deals, as they will accelerate your debt reduction process.
A very important aspect to this however is to then CANCEL all those credit cards you previously had balances with. Remove the temptation. You will feel lighter, and it will also improve your future credit prospects.
Likewise, if you have a home loan, and there is some equity in your property, you may be able to increase your home loan to pay off all your credit cards. The interest rate on a home loan is generally substantially lower than credit card interest rates, and it also simplifies the repayment process, as you only have one bill to pay off at the end of the month.
Again, the important caveat to this is cancelling the cards that have been paid out. Just keep one (or possibly two) credit cards, and ensure they have a low credit limit.
This is also not a strategy to repeat every other month. Be disciplined. Do it once and learn from your spending mistakes.
Getting into debt can happen without you really notice it, so take steps to reduce the debt and move on. There’s no need to dwell on the process and spiral into a depressive state. This may sound easier in theory then practice, but we’ve all been there at some point or another. Learn from the lesson and don’t let a state of debt define you.
More Information on Eliminating Debt
August 22, 2010
Filed under: Manage Your Money — Gloria and Alpha @ 5:11 am
If you’re faced with a level of debt that you’re not comfortable with, think about how it came to be in terms of timing. It happened little by little, or purchase by purchase.
Unless you receive an unexpected financial windfall, you will need to approach reducing your level of debt in the same way.
To start with you need a plan for reducing your debt. Pick the debt that has the highest rate of interest charged on it, and focus more of your money on paying that off.
Break down your earnings in terms of how much you can use to service each different source of debt that you have, and allocate more to the source you’re focusing on.
(more…)
More Information on Eliminating Debt
August 16, 2010
Filed under: Manage Your Money — Gloria and Alpha @ 8:54 pm
Years ago, there used to be a saying, “Boys and their cars…”, but today, many women are also very car conscious.
By that I mean, they are very fond of their car and really take care of it. I say, many and not most deliberately, because all the women in my family, although we love our cars, we aren’t fanatical about them. However, it is just as important to watch the expenses you incur in looking after your car as are the expenses when grocery shopping or any other part of your financial outlays.
So here are 9 simple, effective steps to owning a car
(more…)
More Information on Eliminating Debt
August 11, 2010
Filed under: Manage Your Money — Gloria and Alpha @ 7:35 pm
Grocery shopping is probably the simplest way to spend more money than you anticipated. Not only is looking at all those beautifully displayed foods pleasing to our visual sense, but the lingering smells as you walk around a supermarket or shopping mall….
It’s a well-known fact that, our sense of smell has the quickest and most direct line to our brain, and so, when we smell all those tantalising aromas, our brain says, “I must have that.”
Even the most disciplined buyer can be tempted to ignore the well-thoughtout shopping list. You then end up spending at least a quarter as much again as you had planned to spend.
Here are 6 grocery shopping tips to stay on track
(more…)
More Information on Eliminating Debt
August 6, 2010
Filed under: Manage Your Money — Gloria and Alpha @ 6:15 pm
Do you feel that you could handle your finances better? Are you finding it hard to get ahead? How often have you vowed to take a grip and spend less, only to find that you slip back into old over-spending ways?
Spending money is a habit. In fact, everything we do is a habit. And, just as we created that habit, we can also get rid of that habit.
Notice I didn’t say, “Change that habit”. I said, “Get rid of that habit”. Habits cannot be changed, they must be replaced by another habit, so that it fades ‘off into the sunset’.
Just imagine back to when you first started work and you received your first pay. You had all these good intentions to save, didn’t you?
(more…)
More Information on Eliminating Debt
August 1, 2010
Filed under: Money and You — Gloria and Alpha @ 12:04 am
Money means something different to everyone. What money can provide for you depends on your values and expectations.
Let’s have a look at some common phrases that appear in our daily lives, which provide an insight into how we view money:
“Money doesn’t grow on trees”
“The love of money is the route of all evil”
“Money isn’t everything”
Now, considering we all want, and need, money, yet are brought up hearing these phrases, no wonder we get ourselves in a subconscious twist and often self-sabotage our chances of becoming wealthy.
If you can relate to any of the quotes above, then I highly recommend you read Paul Zane Pilzer’s book, “God Wants You To Be Rich: How And Why Everyone Can Enjoy Material And Spiritual Wealth In Our Abundant World”. Paul Zane Pilzer is an Economist, and this book will definitely shake up any pre-conceived limiting ideas that you have about money and wealth. It’s a very easy read. It really should be a must-read for everyone who is in a profession where they make financial decisions, for example, politicians
(more…)
More Information on Eliminating Debt
July 27, 2010
Filed under: Money and You — Gloria and Alpha @ 11:58 pm
Money makes obtaining what we need to survive easier. If we strip our survival needs right back, our core need is water and food (in that order).
Now, if you live in a first world country, you’re already ahead of the game. Obtaining basics like food and water is relatively easy, depending on your circumstances. Even so, there most major cities have soup kitchens.
The concept of exchanging something for “money” is a relatively new concept. Previously, people bartered goods they produced for things they didn’t, or couldn’t produce. Even a live animal was used as ‘money’. There are still parts of countries today that count in the number of camels, cows and other animals that something can be bought with.
The earliest record of ‘money’ came in about 3,000 BC, when gold bars were weighed to measure their value, in Egypt and Mesopotamia (parts today known as Iraq). Now, that may sound a long time ago, but if you think how far back human civilisation is recorded on earth, 5,000 years ago, isn’t that long ago.
(more…)
More Information on Eliminating Debt
July 21, 2010
Filed under: Manage Your Money — Gloria and Alpha @ 10:27 pm
I’m often astounded that there is no education in our school systems about how to handle money.
- What money is
- What money is not
- The different ways to save money
- The different ways to spend – which ways are fruitful and which are fruitless
- What you can do with money – apart from the obvious
- What money is not for
- How to spend money so that it works for you
- What happens when you spend money foolishly – short-term and long-term repercussions
- Money and investing
- The different types of investing
- Money and borrowing money
- The many options for borrowing money available today
- What credit cards are
- What credit cards are not
- And so on, and so on
(more…)
More Information on Eliminating Debt
