Improve Money Problems By Reducing Debt and Improve Your Life
How Do I Fix My Money Problems and Reduce My Debt?
When you consider your money problems, chances are the debt you would like to reduce was not piled up over night. It is not likely that the solution to your money problems will make your debt disappear overnight either. OlyLife will share some opinions here and then we recommend that you work with a certified financial planner or certified public accountant before you take action. If you have created a situation where you have a severe debt problem, you may perhaps want to look at a re-design of your living boundaries. What we mean by living boundaries are the lifestyle that you have created for yourself in order to have a certain social status. You may have to adjust to a small apartment from a house or a large apartment, or you may have to trade in the 2010 vehicle and drive a seven year old car. When you make these changes, you are freeing up cash-flow that can be used to accelerate the paying down of debts.
Starting Over Is Frustrating But Also Can Be Freeing as You Fix Money Problems and Eliminate Debt
Look, it is tough starting from scratch and giving up much of what you have worked to acquire. The reality is that when you purchase merchandise using credit, you are just borrowing from future wages. Then when you go to work, you are just earning money that you have already spent. This cycle can be very depressing. When you agree to change your paradigm and start over, you begin working and earning for your future instead of just paying for past consumption. This new way of thinking truly begins after you have payed off the old debts, of course. You and your financial planner would identify all of the areas where expenses can be reduced, such as lower rent, lower car payments (or no payments as you pay cash for an old but working vehicle),lower utilities such as cable, cell phones etc. Once you transition to this very low consumption life-style, you would then use the income and expense difference to pay off old debts. After debts are paid, the key is to build savings and to never go back to advance spending, by only purchasing what you can afford to pay cash for after saving some of your pay. So, move to a no-debt way of living and you will have less stuff, but feel more free as you become closer to making the most of your one and only life – That’s OlyLife!
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