The Key to Financial Freedom
by Dave Mauder
Are you living from paycheck to paycheck and barely paying the bills? Do you take money out of your savings, instead of putting money in? Have you ever borrowed on one credit card, just to make the payment on another? Have you ever wondered how you will pay for your children’s education? Do you look forward to retirement, but aren’t too sure what you’ll live on? Do you ever feel like you just need more money?
If you can answer yes to any of the above questions, don’t worry. You are no different than 96 percent of American’s who are in the same financial (sinking) boat. Fortunately, there is something you can do about it. In fact, there are many things you can do about it. And that’s just the sort of thing this website is going to focus on.
The most important strategy is what I call the “Key to Financial Freedom.” And that is–Eliminate Your DEBT! Sure, that may seem like a simple (and obvious) statement, but the fact is that debt is one of the most life crushing financial problems in America today.
Many so-called “experts” will try to tell you the reason you are in debt is because you don’t know how to manage your money. Sure, that may be part of it, but I’m here to tell you it’s not the main problem. Your income is no longer worth what it was a year ago. Everything has become more expensive, tax laws are more confusing, and the rules of money have become more complex.
The days of getting by with only one income earner in the home are gone. On top of all that, we are constantly bombarded with advertisements, junk mail, and TV commercials telling us how much better life will be if we get that new “Gold” MasterCard, or that “low interest” VISA. Heck, you can even buy a TV, stereo, a brand new computer, or anything else for that matter, and not make any payments for a year! How many people could turn down a deal like that? Unfortunately, not very many…
So, what can you do to start taking back control of your financial future? The answer is really quite basic–Decrease your spending and start paying off your debts! Now I know cutting your spending is about as fun as going to the dentist. It’s not something we like to do, but we must endure the discomfort if we are to keep more of what is ours. In this case, our money!
You must continually remind yourself that the goal is financial freedom, and that when the discomfort is over, you will be able to experience all the things you always wanted in life without having to give up your last penny to do it.
You don’t need information overload, not at this point, so here is one thing you can do right now that will decrease your spending and get you started down the road to financial freedom. Beginning today, right now: Never again use debt to purchase consumer products. Consumer products are those items you purchase from day to day which either get used up, or lose their value the minute you carry them out of the store. Things like: TV’s, stereos, appliances, clothes, furniture, gasoline, and of course, food. And don’t forget the one you drive out of your local automobile dealership. Now that’s a big time loser.
If you have ever paid for groceries with a credit card–you have a SERIOUS problem! Do you realize you will be paying interest, possibly months worth of interest, for something that served its purpose and left your body long ago? Going out to dinner and putting the bill on a credit card isn’t any different. By the time you pay off the bill, this stuff is either worth nothing, or only a fraction of the original purchase price (not to mention the high interest that was added).
Now, I’m not suggesting you become a tightwad (that’s my job) or do without the necessities in life. Next time you are thinking about purchasing some new gadget on credit, give yourself three days to think about. Then, if you still want (and need) the item, save up the cash each month until you can afford to buy it outright. Of course, always purchase gas and food with cash or check, and for heavens sake, never put a movie on your credit card unless you can pay the balance by the end of the month!
Well, that should give you a little to think about. Start paying down the plastic, and then cancel them puppies as soon as you can. Don’t just stash them in a drawer and lie to yourself that you won’t use them anymore. Call the credit card company and have the account closed. Then, CUT EM’ UP AND THROW EM’ AWAY! But if you really need plastic, use a debit card (sometimes called a check card) which has no interest, no annual fee, and good for as much as you have in your bank account.
Once you work these changes into your life, give yourself a BIG pat on the back! You just took a major step in the right direction toward financial freedom.
You’re not done though…
Take your debt reduction plan to the next level by learning how to eliminate ALL your debt, including your mortgage (no matter how big it is), in less than 10 years.
Until we meet again… Welcome to the first day of the BEST of your life!
Accelerate Your Journey to Financial Freedom with a
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