The only way that you can get out of debt bondage is to understand why you owe it at the first time. Let’s take some examples; you will not be able to save even though income / your salary goes up. You will not be able to save even though you have paid off a car loan. You will not be able to save even though your children have been able to finance their own life. And even if you have money in your hand $10,000 today, you still will not be able to set aside for one penny.
How could this happen?
Therefore, you can only save when saving becomes an emotional habit. So here are some things why you could entwined with debt:
1. You buy unimportant goods
Stop buying goods according to your heart! There is no reason to pamper yourself by buying branded goods which are actually not needed.
2. You use a credit card to buy goods that you are not able to buy them in cash.
If you cannot buy in cash today, do not buy them! This is the simple formula. If you are trapped in a difficult situation due to improper use of credit card, you need what called debt settlement.
3. You think that a particular product brand signifies social status
Car takes you from one place to another. Wallet is a place to store money and important papers. Sunglasses protect your eyes from the sun. If you always pay a high price for these products for the sake of social status, you are in big trouble.
4. You buy a new car every few years.
See my previous points. If you buy a new car every few years even though your old car is still functioning well, then you’re trying hard to impress “something is wrong with people” … and you alone are in the process leading to bankruptcy.
5. You do not have the budget plan.
Do you assume that if you wait and make more money, then your finances will be improved? If you think like that then you are wrong! You need a serious budget plan to eliminate your debt and start building wealth. So start making a budget plan now!
6. You do not optimize capital you have.
You must make your money the opportunity to make the money back (leverage). Each of capital you have, no matter how small, should be used for investment. If your capital is not invested, then your money will lose its value due to inflation.
7. You are never equipped with basic education about the financial arrangements.
You should be enough to get the provision of education on financial arrangements, whether through formal education or self-taught. If not, you will not go-anywhere, remain in indebtedness.
8. You wasted a lot of your own time.
They say “time is money”, and I add here time is more valuable than money. Time is the greatest thing in life. Money lost, can be searched again, but time is not replaceable. So if you fail to manage your time, then you will definitely fail to organize your money … and you will fail also in every aspect of your life. So focus your time and energy on things that are important, forget the others.