Saturday, June 7

Time To Get Debt Free

Paying the BillsWhen you think about becoming debt free do these ideas come to mind? Insurmountable, herculean, titanic, hopeless, or perhaps even impossible?

These are some of the thoughts that can stand in the way of eliminating debt. Other concepts, perhaps such as deprivation, are also wandering around threatening to make an appearance.

How on earth can mere mortals tackle problems of this scope?

If you have given up, or don't think it's possible, then don't bother worrying about the concept of eliminating debt right now. Just take a few steps towards managing your money more effectively. This slight of mind is a simple trick but that doesn't mean it won't help.

Here is a short checklist you should keep in mind:

- Develop a budget.
- Increase your income.
- Reduce your expenditures.

See, that's pretty easy isn't it?

Developing a budget and looking for ways to save money are the easy parts. You can find all kinds of advice in this blog and elsewhere on the Internet. The task of increasing your income is much more complicated and can take a lot of time to achieve.

Some ways to increase your income include:

- work additional hours.
- take a second job.
- convince your employer to promote you.
- apply for higher paying jobs elsewhere.
- acquire training to qualify for different jobs.
- complete your formal education.

Additional things to consider include soft skills:

- do you have a professional attitude?
- are you a team player?
- do you work well with others?
- are you a hard worker?
- are you punctual?
- can others rely on you?

Be honest with yourself. We all have areas that we can improve upon. Remember that while you feel you might deserve a better job, nobody will promote you until you demonstrate that you can do a better job.

Other income ideas might include:

- convert a hobby or skill into an income.
- offer casual labor or temporary work.
- long term savings and investment.
- accept family contributions towards family expenses.
- sublet a room or parking space.

So where does this leave us? On the road to being debt free! All it takes is some discipline to avoid incurring more debt while at the same time working to ensure that your income exceeds your expenses. If you can get to that point, then being debt free is only a matter of time.

Excepting a mortgage, I'm planning on becoming debt free over the next two years. Anyone care to join me on this quest?