There are MANY ways to starve your debt! However, I have listed a few ways that will do more than put your debt on a serious diet. Cash is king and is a key essential that could be used to starve your debt. If you incorporate these simple practices into your daily lives, your debt will cease to grow.
- Say “No” to your wants – Many times your wants will scream louder than your needs. First, determine the difference between a “Want and a Need”. Wants are things that you can live without. Your needs are things that are must haves. No, no! Not the kinds of things that you must have but, can live without. You need water, food, a roof over your head, clothes on your back, shoes, heat, electricity. In contrast, sometimes wants can be dining out every day of the week, buying four pairs of shoes and you only need one, buying a six-bedroom house and you really only need three or driving a Bentley and you can only afford a Honda.
- Refuse to “Charge” – Only purchase the things that you can afford. Develop a new discipline and practice leaving your credit cards at home! Use cash! If you do not have enough restraint to use your debit card, leave it at home as well. Use cash…many people become more emotional about letting go of the dollar. Refuse to Charge!
- Refinance for lower interest rates – The sole purpose for refinancing is to stop digging deeper and paying more interest. For example, requesting a loan for a lower rate for a mortgage, credit card or car loan is not for getting into deeper debt, but to get out of debt. Avoid refinancing if your bad financial behaviors are still out of control. Use the extra money to pay down the debt with the next lowest balance.
- Eliminate your bad behaviors – Do your very best to identify the bad financial behaviors that are preventing you from moving forward exponentially. The “Wants” are usually the culprits; identify those and you’re are well on your way towards eliminating the financial success destroyers; “Bad Behaviors”.
- Be intentional with your planning and spending – You must intentionally write your financial plan or vision and watch how you spend your money. Avoid being wasteful and adopt the idea of becoming intentionally wealthy. Wealthy in knowledge, actions and your bank account.
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