I thought I would share this with you today, because like many people I once was consumed by debt many years ago. I know this does not have to do with online marketing per say, but it will help you, learn to get rid of some stress in your life, which will make your online marketing that much easier. This is one of the many reasons people come online to make more money, their personal debt is killing them financially..Bankruptcies in the United States alone have been at all time highs the last several years.
And more and more people are looking for a way out of their financial burden their debt has caused them..
Well this is how I did it..
The day I realized that my financial situation was spinning out of control and that I had way to much debt is the day I said enough is enough. I then took a piece of paper and pen with me every where I went and started writing down everything I spent money on everyday for two weeks. After the two weeks was over I sat down with my self and said self WOW, are you wasting your money foolishly, I spent half a pay check over spending on items at gas stations and out to eat food. I couldn’t believe how much money I was just throwing out the window! On top of that I have a bad habit (that I wasn’t about to quit yet for the sake of debt) I chew snuff, that was costing me $6.57 a day times 30 days equals 200 bucks a month! Watching for two weeks how I spent my money also made me realize how I put on all my extra weight over the years, gas stations and out to eat food. I was spending on average $25.00 dollars a day between bottles of pop, cans of snuff, out to eat lunches, snacks and other miscellaneous items from gas stations, that is around 750.00 dollars a month on peer junk plus I was slowly getting fat! This was only the beginning of my calculations I forgot to tell you I have a wife and three kids who spend money too.
How I started to save money
I decided from here on out I was going to stop over spending and get out of debt I also decided I was going to lead my family by example. I would learn how to control my spending habits before I would even worry about what everybody else in the family was spending money on. My first step I took to get out of debt was writing down all the ways I could save money.
1. Start buying groceries for my lunches and snacks I was no longer going to eat out or eat fast food for lunch anymore.
2. Start a garden, I got three benefits out of this, healthy food, exercise and saved a boat load of money.
3. Find a generic snuff I could buy that was cheaper (since I wasn’t ready to stop chewing yet)
4. Dont buy any items from a gas station that I could get at a discount store, buy only gas
5. Make my kids lunches instead of giving them money (this way they also ate healthier)
6. Stop drinking pop, (this was a hard one…I was addicted to it, it took a couple weeks to stop feeling tired and for the headaches to go away but they did
7. Save going out for dinner for special occasions and teach my kids how to cook
It wasn’t easy but I accomplished all the things on my list in about three months, it was a relief I actually had some extra money and I didn’t have to demand anybody in the family to cut spending money or anything like that, they just started following my example. It might have been the 25 pounds I lost in three months or my being less stressed out and happier but we all started being more conscious of how we spent are money and what we ate. And I had more money to use to invest in my online business to grow my income, I was able to buy more website traffic, and started making money faster online. My spending habits had been killing me two ways before, and now I was finally going in the right direction.
Paying Off My Debt
The Next step I took in my quest to get out of debt was writing a list of every place I owed money to and how much the monthly payment was. It looked something like the list below.
1. Mortgage $700.00 Monthly Balance $98,000
2. Car Payment $350 $12,000
3. Improvement loan $150 $6,500
4. Credit card1 $75 $2,500
5. Credit card2 $100 $4,700
6. and so on and so on….
I then made a budget I could live by, and started paying some of the extra money I was saving from my first steps I took to eliminate debt, and paid the extra money on the lowest balanced item in my list until it was paid off. I just kept moving from lowest balance to next lowest balance until I got to my house payment and by that time I had enough extra money to start tripling my house payment. I stuck to my budget and any extra money I made from anything else went straight to getting out of debt or growing my income online, I no longer spent money foolishly. It was really amazing how fast I was able to get completely out of debt. Today I don’t buy anything minor on credit, if I cant afford it I make it a goal and save enough money to pay for it in full. Not only in the process did I get out of debt, but I also amassed quite a nice nest egg because of this strategy.
The one thing I have to say is these are not all my ideas I got them from reading books if their is one thing I can promote to you is to read, information is power it not only reinforces what you are trying to accomplish but it inspires ideas. There are many ways to save money and ideas for getting out of debt, you have to do what works best for you. I have also realized through my debt reduction plan that most people don’t realize where they waste the most money is through everyday expenditures.
I once counseled a couple, and looked at their finances and what they were spending their money on, and they were absolutely amazed on how they wasted their money on nothing. They were always struggling, and never had enough money to pay their bills. They were like I was, and they were spending most of their budget on convenience items and going out to eat everyday. They didn’t think that spending $35 a day for out to eat food was very bad, but when you take that times 30 days in a month, that’s over $1050.00 a month to go out to eat!! They never had ever added it up, and just didn’t think about it. Lets say you buy a bottle of soda pop at $1.87 everyday, that alone is $56.10 a month. So what if you changed that to twelve packs of pop, and only drank one can a day. If the twelve pack of pop cost $5.95 and you buy three in a month, that only cost you $17.85 a month, and you now saved $38.25 monthly or $459 yearly! Think about the couple now if they stopped going out to eat everyday, and made their meals at home, easily a $400 savings in a month, take that times 12 months and they will save $4800.00!!
That’s the power of keeping a budget and sticking to it, then use that money you are saving to pay off debt, and create more income, such as I did online, I invested my savings in my online business and was able to grow it ten times as fast, all while paying down my debt..
1. You are what you do daily.
2. You first form your habits; then your habits form you.
3. It’s just as easy to form habits of success as it is to form habits of failure.
This is how you become financially free, and finally do the things in life you really want to, like going on vacation 4 or 5 times in a year, buying new cars and paying cash for them, adding on to your home…Think of the stress that gets lifted when debt is going down, and your income is rising…Because your no longer spending it foolishly..
Just like everything worth doing, it wont be easy to start and commit to, but will be extremely worth it!!
Hope this helps out..
Until next time
Let connect and be friends!