Debt Management - Wealth Building, How to succeed?

Dear Splinters,

Peace

Debt is a tool. It can make you very wealthy or can keep you poor depending on how you use the debt system.

One thing we often pay less attention to while spending is the type of product that we purchase. Cars, shoes, and purses are liabilities that should not be a major part of our credit. the reimbursement of this debt is making Bankers rich. However, credit can serve to buy rental properties, hard assets that pay with cash flow setting us right on the path to becoming rich.

In general, the consumer will never have a chance to become wealthy because of using all of this liquidity to go out and purchase objects they will discard in a few days. When we finance our shopping activities through the help of debt it means that we're going to the bank to help them pay for our car. Also, we're going to the bank with our credit card to help them pay for our wardrobe or some new name-brand clothes. When we borrow a thousand dollars from a loan or a credit card or a home equity line of credit we're borrowing a thousand dollars that we will return a thousand dollars back from tomorrow's income plus interest.

Debt is often the means of destruction of people's finances. Also, the reduction of the opportunity to ever become wealthy. If a person knows how to get rid of this consumer debt he or she can use money the right way to become wealthy instead of just making the bank rich. Student loans, credit cards, mortgages, and car loans are not the end of our financial success. How much debt and types of debts do we have on our name? How much interest these debts are costing every single day?

Honesty is a key factor in the success of this process. Can you discipline your spending habits?

One strategy consists of listing our debts not by the interest rate that we're paying but by the size of the debt. It is now time to pay off the smallest debt first and then go to the next smallest and then the next smallest.

The second strategy focuses on the sorting of the debts based on the interest rates and then we are gonna pay off the highest interest rate debt first because that's the debt that's costing you the most money.

The biweekly process to pay off the debt is preferable to the monthly one. The quickest and simplest way to resolve one's debt profile is to cut down some of your expenses so you have some extra cash. The discipline to cut back on some of your expenses are vital so we have some extra cash in our pocket.

Besides, experience showed that we can only know that we are able to afford something if we are unable to buy five of them.

There's no limit to how much money you can earn. If we can earn more money, we have to solve our debt issues with this extra cash. The faster you can earn this extra cash the better we will pay down our debt.

The opportunity to share content on the internet and be rewarded for our effort is one way to diversify our income. You can try to get another job where you're earning on commission. In addition, we can spend some time learning how to make money on the internet because people all around the planet are joining the internet in growing numbers. Now is the time to understand how to create content that brings eyeballs to whatever it is we are developing as a brand. Also, we have to train on the production of content that people want and turn this content into something that's going to generate income. Our new stream of income will surely contribute over time to our financial success.

The study doesn't stop. The expected steps are to learn how we create passive income or new income streams from the money that we have and how you invest your money to build wealth.

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The majority of people will never have a chance to ever become wealthy because of using all of their money to go out and buy things that we classified as liabilities which keep them poor. when you finance your shopping activities through the help of debt it means that you're going to the bank to help them pay for your car. Also, you're going to the bank with your credit card to help them pay for your wardrobe or some new name-brand clothes. When we borrow a thousand dollars from a loan or a credit card or a home equity line of credit we're borrowing a thousand dollars that we will return a thousand dollars back from tomorrow's income plus interest.

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Disclaimer: This Article's purpose is only educational. I am not a financial advisor. Just a random blogger on the internet. Please never put in crypto more than you can afford to lose.

Posted Using LeoFinance ^Beta

Posted Using LeoFinance ^Beta