Archive for Plan

Launching A Practical Get Out Of Debt Plan

The quote from Suze Orman that “Debt is bondage” is so true.  Debt not only holds you in bondage, it steals from you in the form of finance charges.

Do you find yourself avoiding answering the phone because you are tired of the bill collectors calling? I can remember being so broke that I had to spend extra money overnighting my house payment to the mortgage company. That was before the days of online bill payments. You have got it so much easier than ever before.

I have discussed debt and relayed my story about how I got into and out of nearly $100,000 of debt in earlier post Who is Responsible to Provide Basic Needs of Americans?

In today’s post, I want to help you create a plan of action and milestones. A good plan will lead you directly from where you are today to the point of complete freedom from debt. I will give you practical and actionable steps that you can follow to do what I did that got me out of debt.

Philosophy – The How and Why

Vale le Pena! Translation – It’s Worth It! Financial freedom is worth the sacrifice that it takes to get there. There will be some discomfort between where you are and where you want to be, but by enduring it you will reap the reward.Financial freedom is worth the sacrifice that it takes to get there Click To Tweet

When you are financially free, more of what you earn is yours to keep. You can buy and actually own more if you are not sharing a portion of your income with your creditors.

In the future, when you need to borrow money for big purchases like home or car, less money will go to finance charges allowing you to have nicer things.

Maybe you are in a place now where you are forfeiting too much of your hard earned income to finance charges. Perhaps you are not able to get the financing for a new car you want. Is your FICO score where you want it to be?

Pitfalls to Avoid

Setting the target unrealistically high

When you take account of how much you owe and how long it will take to get out of debt, the timetable of the goal could cause you to quit before you succeed. Read More →

Your Commitment In Advancing A Strong Economy

What does it mean to make the economy strong or weak?  In what way are you participating in making your country’s economy stronger?

Economic Fundamentals

The Economy is talked about as if it has a life of its own.  From the news reports, you might think that the economy controls people’s behavior rather than the other way around.  The truth is that actions and beliefs of the members of society control the economy.  Individuals earning and spending determines whether the economy is growing or declining.

Let’s bring that concept home.  As an adult member of society, you participate in the country’s economic health by earning and spending money.  In order to earn money, you exchange some product or service for money.  Ideally, you will gain more money in exchange for the goods or services than it cost you to produce them.  If you are an employee, your role is to contribute to your company’s endeavor of adding value to the goods or services that they sell.  This is your most basic participation in the economic system.

Then, you take the profits or earnings you made from the first exchange and exchange that for goods or services that you consume.  And the person you purchased from turns around and repeats the process.  That continuous movement of money defines the economy.

If the people of a society only purchase items they consume and don’t add value and resell something, then the economy grinds downward.  You’ve got to add value and bring in positive cash flow.

Positive and Negative Cash Flow

The concept of positive and negative cash flow is a fundamental business concept.  Cash flow is a financial term that refers to money coming in relative to money going out.  Basically, it’s a way of stating whether the company is making or losing money over a specified period of time.  Positive cash flow happens when more money comes into your business or individual accounts than the amount of money that goes out.  A negative cash flow condition exists when your outgo exceeds your income.  You can apply the concept to your own wallet and bank account.  Are you earning more than you spend or spending more than you earn?A portion of all I earn is mine to keep! - George Clason Click To Tweet Read More →