Sunday, January 2, 2011

How to Get Out of Financial Debts




During the recession, many have lost their jobs while other had no choice but to close their businesses. One way or another all of us were affected by this. The question is, how do we get out of the situation? I've read books and watched TV program featuring the said topic.

To get out of the situation, just like any situation you are in, we need to acknowledge the fact that we are under debts. Denying it will only worsen the situation.

1.  Know the total amount of debts. To solve the problem, you need to know the exact amount that you need to deal with. From there you will be able to formulate a plan on how to get out of it without depriving yourself of anything.

2. How much is due every month.  With this you'll have an idea how much you'll need for the month. Take note of the things that you don't really need.

3. List down the expenses incurred for the basic needs like food, clothing etc.

4. Find ways to cut down expenses. Take note on how much you will be able to save if you do thinks on your own might it be polishing your nails or having you hair down. Even small amounts count.

5. Think before you buy. Posing for a minute might just be what you need to get out refrain yourself from buying something that you don't need that much.

6. Take note of the cash coming in less than the amount that is needed to be paid. This maybe hard at first, but in time this will help you a lot. Knowing the exact amount needed to be paid over the amount of cash that is coming in will set your goal straight. This will tell you how far you still need to go.

7. Get a high paying job or look for additional income. Get a better job or ask for promotions. According to the Smart Cookies, to attract promotion you should always look your best at work. Do overtime work if you can.


One thing that works well, is dressing up for success. The way you dress yourself will definitely boost your confidence and attract success.  

If there is anything else that you find interesting other than your current job. Start at it if you have spare time. If you will succeed  on it that might just your ticket away from the desk job that you're in right now. Keep in mind that your work is also a business and you are not there just to receive a 15-30 pay but to learn how to run a business once you have your own. With that in mind you should really learn to have a sense of ownership because someday you will have a business of your own.

 
8. Set a goal. Write the amount you need for your monthly bills or payables, for savings, emergency funds and leisure.


9. SAVE! Being in debts making it so easy to find an excuse not to save. What you need to do is to treat your monthly savings just like a monthly bill.

10. Spend quality time with your family.  Irregardless of your situation, there is still a need to pamper yourself and your family once in a while. It doesn't have to be that expensive. It can be eating out, going to the park, cooking something special for your family or going out of town. That is okay for as long as it did not affect your monthly target.  

11. Pray for your plans and take actions. As the saying goes, "Many are the plans in a person's heart, but it is the LORD's purpose that prevails.  Proverbs 19:21







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