10 Reasons Why You Are In Debt - LOVE THIS xxx #1 You buy miscellaneous crap you don’t need or use – Stop buying ‘stuff’ on impulse! Avoid the mall! The mall is not a source for entertainment. It’s a source for personal debt. There’s no reason to tease yourself by staring at a bunch of brand new crap you don’t need. And as you know, the novelty of a new purchase wears thin long before the credit card bill arrives. #2 You use credit to purchase things you can’t afford to buy in cash – If you can’t pay for it in cash today, don’t buy it today! It’s as simple as that. #3 You think of certain product brands as fashionable status symbols – A car gets you from point ‘A’ to point ‘B.’ A purse holds your personal belongings. A pair of sunglasses shades your eyes from the sun. A shirt keeps you warm. If you’re paying premium prices just to get a fashionable brand name labeled on each these products without any regard for how well the products actually serve their practical purpose, you have a problem. #4 You buy a brand new car every few years – See my previous point. A car is a means of transportation to get you from one place to another. If you’re buying a new car every few years even when your old car works fine, you’re likely trying too hard to impress the wrong people. and you’re going broke in the process. #5 You own (or rent) way more house than you need – When you buy or rent a house that’s bigger than you need, you end up wasting lots of money on larger monthly payments, higher upkeep costs, higher utility bills, and lots of random ‘stuff’ to fill up the extra empty space. #6 You don’t follow any sort of formal budgeting plan – Do you assume that if you wait around and make more money your finances and credit debt will magically resolve themselves? I’m sorry to say, you’re dead wrong! It takes a lot of planning and proactive budgeting to erase a pile of debt and build a nest egg of wealth. So start now! #7 You don’t leverage the small investments you do have – You have to give your money the opportunity to make money. Any capital you do have, no matter how small, should be invested using a basic, long-term investment strategy. If your capital isn’t invested, it’s just losing value as inflation rises. #8 You’re married to (or dating) a spend-thrift – You’ll never get out of debt if you’re married to a person who spends every dime you make. So help your soul mate become financially responsible, or except life in the poorhouse. #9 You waste too much of your own time – They say “time is money,” but I think time is way more valuable than money. It’s the single greatest constituent of life. If you fail to properly manage your time, you’ll absolutely fail to properly manage your money and you’ll likely fail in every other aspect of your life as well. So focus your time and energy on the important stuff and forget the rest. #10 You aren’t enjoying life’s (free) simple pleasures – The best things in life are free. Stop wasting your money on second-rate entertainment and take a good look around you. Mother Nature offers lots of entertainment free of charge. Go hiking, go skinny dipping, play in the rain, build a bonfire with your friends, watch the sunset with your lover, etc. - See more at: numberandknowledge.blogspot.au/2013/05/10-reasons-why-you-are-in-debt-1-you.html#sthash.kQB3SoxX.dpuf
Posted on: Thu, 18 Jul 2013 20:00:46 +0000
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