Clear That Credit Card Now!

Live within your means, never be in debt, and by husbanding your money you can always lay it out well. But when you get in debt you become a slave. Therefore I say to you never involve yourself in debt, and become no man’s surety. 

Andrew Jackson, 7th President of the US, 1829-1837

It’s a fact that more and more people are sinking under the weight of credit card debt! They are using them to pay for their basic living expenses  even their mortgages  and it’s a trend that can only end in disaster, pain and plenty of tears.

Credit cards are traps and if you are in a debt trap compliments of credit cards, then the time to act is now. Credit card debt holds you back in so many ways:

It stops you from saving to your optimum level

It stops you from enjoying a life free of financial stress

and It prevents you from moving ahead with sound financial investments.

Put simply, credit card debt will stop you from getting anywhere financially. It makes sense to cut your credit card debt and it makes sense to do it now rather than later. So how do you go about doing it? Here are my recommendations to help you clear your credit cards now:

Budget effectively: Look at the money coming in each month, and look at your monthly outgoings. Account for every expense you have and ensure the pesos coming in cover it. When you do this, you won’t need credit cards to cover your essential costs.

Commit to paying the cards out: You know now you don’t need the cards to pay your essential costs.

Cut your cards up: No more using the cards end of story! Use debit cards because they are funded by your own money.

Pay more than the minimum amount: Paying the minimum repayment en-sures you stay in debt it is what the credit card companies want you to do. Pay more than the minimum out to clear those cards ASAP!

Use your savings to pay your cards out: There is no point keeping savings that make you a few percent in interest, when you are paying 16+ percent on credit cards. Use your savings to pay your credit cards out.

Transfer high interest cards to low interest cards: Research what the low interest cards are and transfer your high interest card debt into low interest cards. Be sure though to cut up the new card when you get it. You are NOT using it, just paying it out.

Avoid overspending and live within your means: Living beyond your means will always end in the whaling and gnashing of teeth. It’s really not worth it! You can only own so many pairs of shoes, so many polo shirts and so many gadgets. It’s more important to get yourself financial and debt free!

When shopping, make a list: No more impulse buying! Stick to your list! And avoid shopping centers unless you absolutely must go to get something you NEED!

Stick to your budget: You can’t go wrong with this!

It may sound like hard work, but it is ALL worth it! A life without credit card debt is possible. You just need to focus and be disciplined. When you are free of credit card debt, you will be able to get on track to enjoying a life of financial independence.

Helpful Tips for You:

Budget effectively

Commit to paying the cards out

Cut your cards up

Pay more than the minimum amount

Use savings to pay your cards out

Transfer high interest cards to low interest ones

Avoid overspending and live within your means

When shopping make a list

Stick to your budget

Shared by Coach Amos

0923-1520501

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Blog by John de Ridder, 0419-427-419, john@focusyourmoney.com.au, Canberra, Australia

Money Habits & Attitudes: More Important Than You May Think

“There is so much good we can do with money. Without it, we are bound and shackled and our choices become limited.” - Bob Proctor, Self Help Author & Motivational Speaker

As the old saying goes, “A man is as he thinks”. Our thoughts determine our reality, and the same can be said for money. Everybody wants more money, but not too many people are where they want to be financially. So how does one make financial security happen?

It all boils down to money habits and attitudes. The way you think about money and the way you treat it determines whether or not you will have money. Let’s compare people with money to those who don’t have it.

People with Money: People with money have a different attitude to money than those who do not. They see money as something they can easily acquire with perseverance and effort. These people see themselves as deserving of money if they put in the hard yards. Nothing is ever impossible to the successful person, and in deciding they want money, they will go out and get it. They actually dedicate their life to acquiring money, so they can have the options money gives them – options to live in a nice house, go on great holidays, drive a luxury car, wear the clothing of their choice, give their children a private education, etc. And when the money comes to them, they use it wisely. They have a plan for every pesos that comes into their household, and as a result, their pesos stretch a long way.

People without Money: People who don’t have money often complain about a lack of it. They whinge about being overworked and underpaid. They complain and make statements like, the rich are getting richer, the poor are getting poorer. They say things like, Money doesn’t grow on trees. Often as well, these people don’t think they deserve the money. They think,rich people are only rich because they have ripped somebody off or I can’t possibly make that kind of money or I would never live a lifestyle of a rich person. This negative thinking blocks them from attracting into their life opportunities for generating more money and they will be careless when any money comes to them. When money comes to these people, they spend it faster than they can think! Little wonder the money goes and they are left broke at the end of the month.

At the end of the day, to attract wealth into your life and ensure your money is used wisely, you need to have a positive attitude towards money. It’s almost as though a positive attitude towards money attracts money to you and ensures the money stays with you. It stays with you because your attitude towards money creates good habits surrounding money.

You need to allocate a job to every pesos you bring into your household. If you do not do this, the money will fritter away and you will be left wondering where it all went. You need to have an attitude to money that says you are deserving of it. And you need to commit to increasing your income, so you can have the lifestyle you want.

Money goes where it is appreciated, so start by appreciating the money you have. Think positively about money and treat it well. It will make a huge difference!

Helpful Tips for You:

Believe you deserve money

Commit to stretching your peso

Assign a task to every pesos you bring in

Commit to finding ways to make more money

Appreciate every pesos that comes in

Treat money well and it will come to you

Shared by Coach Amos

0923-1520501

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Blog by John de Ridder, 0419-427-419, john@focusyourmoney.com.au, Canberra, Australia

5 money mistakes 20-somethings should avoid

BY LIANNE MARTHA LAROYA

POSTED ON 06/02/2013 2:49 PM  | UPDATED 06/02/2013 6:55 PM RAPPLER

MONEY MATTERS. Being 20-something can make or break your future financial stability. Here are some tips!

Being 20-something is tough. You look for a decent job, save up for your dream house and try hard to please your parents. Being a young adult is a confusing rollercoaster ride.

If you’re 20-something, chances are you may feel that you’re not ready for the "real world" just yet. Therefore, you are prone to committing money mistakes that can cost you your dreams, your slim bank account, and even your relationship with your loved ones.

You’re in good company. I know what you’re going through.

Don’t be a victim. Equip yourself with information by reading this guide specifically made for you.

1. Falling into the trap of lifestyle inflation.

You can either be a fresh graduate or a senior employee – the amount of your salary doesn’t matter! What matters is where your salary goes.

Does it happily go to investments? Is your bank account healthy? Is your investment portfolio progressive?

Or does your salary sadly go to luxury purchases? Do you have a love-hate relationship with your bank account? Do you have any idea what an investment portfolio is?

Believe me, I’m not trying to sound like your mother here. I’m trying to sound like a concerned friend.

Having money that you worked for really lets you feel that you’re in absolute control. So does this mean that with your new job, you immediately need a new condo, a new car, a new set of clothes and a new gadget to go along with it?

Absolutely not.

My friend, if you start falling into the mindset that you need the latest things just because you can afford them, then you will find yourself mistaking this materialistic pleasure as happiness. If this is the case, then you’re going to be stuck in a never-ending cycle of fake bliss.

This cycle of fake bliss is incredibly expensive.

Advice: Don’t depend on your possessions for your happiness. All new things get old after a while. You will never be contented.

2. Thinking of credit cards as 'free money.'

Did you know that major credit card companies have a list of young adults who they can contact as soon as they’ve landed their first job? Expect that nagging phone call. These companies would call you up and tell you that you’ve met their “requirements” so you’re eligible for a credit card account.

What are the basic requirements for a credit card account?

Seriously, if you have disposable income and are willing to pay out-of-this-world interest rates if you failed to pay your monthly dues, then you’re qualified!

My friend, your credit card is not free money. It’s a piece of plastic that you use to buy things that you can’t afford at the moment. It makes you buy impulse purchases just because you can.

I have a friend who used her credit card to buy a toothbrush. The toothbrush was P108. She thought the interest would just be minimal so she neglected to pay her dues on time.

After a while, she finally decided to check on how much she owes. She used her credit card to buy one toothbrush. She never used it again but she never paid her balance as well. Now, she owes P3,500.

That’s a difference of roughly P3,400! Do you really want to shell out extra cash just for the sake of instant gratification?

Advice: If you don’t have the self-discipline to pay your monthly dues on full and on time, I suggest that you refrain from even opening a credit card account. Don’t even think about it!

3. Ignoring the importance of budgeting.

The idea of budgeting seems overwhelming, I know. Some friends of mine take the concept of budgeting to extremes.

Some of them have charts, graphs and Excel recordings of everything up to the single centavo.

And the others? They don’t even have any idea of how much they spend every month!

I’m in the middle ground. I know budgeting is crucial.

After all, how can you treat a disease if you can’t even diagnose it? How can you find your way if you don’t know that you’re already lost? How can you solve your problem if you’re not even aware of its existence?

However, I’m not that extreme – I believe in having a basic spending and saving plan.

Advice: Why don’t you try implementing the 60-20-10-10 rule? Out of all your take-home income, 60% should go to your living expenses, 20% is for your personal saving goals, 10% is for your retirement, and 10% is for giving back to the community.

Here’s a template that you can get started on.

4. Failing to invest in yourself.

Just because you’ve finished college doesn’t mean that you should stop learning altogether. Actually life after college is the best time to continue your education! No one will be around to encourage you to improve yourself, so you should have the initiative to pursue personal development.

Don’t mope around and expect that you will grow magically when you’re not really exerting the right amount of effort.

Also, don’t think that you can’t afford to spend money on personal development right now. At the end of the day, you’re not really spending your money – you’re investing it. You will reap the rewards in the future so be patient.

Advice: Attend seminars on how to expand your job eligibility. Network with relevant people in your dream career and learn from them. Take up a new language. Apply for scholarships abroad. Enroll in cost-effective courses that are related to your industry. Read inspirational books!

5. Neglecting precious opportunities to start saving up for retirement.

When talking with people in the same age range as I am, I just can’t seem to stress the topic of retirement enough.

Get this: we should start saving up for retirement while we’re still young so that we can enjoy the reward when we’re already old!

When we start early, we can afford to invest small amounts because we have more time. This makes sense, doesn’t it?

Warren Buffett once said, "The rich invest in time, the poor invest in money."

I mean, come on, why should you wait until you’re old enough to save? Doing so will just make you more pressured. Plus, if you wait until you’re substantially old, you need to invest larger amounts of money because you’ll have less time!

Advice: Sure, enrolling yourself in SSS is a common plan of action. However, don’t just be content with this pension plan – you should move one step further and start investing in the stock market. If you still have 10-20 years before retirement, putting your retirement account in the stock market as an investment, not as a trade, is the best option, in my humble opinion.

Keep these tips in mind to help you take on the real life. Your older self will thank you for it.

Are you ready to take on the real life, then, colleagues? – Rappler.com

Lianne Martha M. Laroya is a pro blogger, advocacy writer and freelance copywriter committed to producing compelling content for passionate small and medium enterprises. A nurse entrepreneur, Lianne believes in winning at all aspects of life so she founded The Wise Living.

Connect with her on Twitter: @MsLianneLaroya

Shared by Coach Amos

0923-1520501

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