How Do I Get Out Of Debt?
Copyright (c) 2012 Rich Stopher
This is a common question being asked by most of us today because somehow we've got ourselves into financial trouble and are now seeking debt relief. Whether we've spent the money on flash cars, flat screen TV's, designer clothes, shoes or gadgets, we're all guilty of having overspent at some point or another and are now anxious to become proficient in debt management.
There's little point in being critical of oneself for having got into financial trouble. Nor is there any point in spending time seeking answers as to how we got into debt in the first place. The reason, as we all know, is simple: we spent more money than we earned. We were careless, somewhat irresponsible and occasionally reckless and before we had time to realize what happened, the damage was done.
Do you agree?
Having got this part out of the way, I am here to tell you that debt reduction and debt elimination are easier than you think and certainly within your reach. So let's start by making certain that we feel empowered about tackling debt. Let's agree that a debt free life is not only possible, but definitely achievable.
Are you ready to find out how?
Here goes…
The first principle to debt reduction is to never, ever, spend more than 85% of your take-home pay and save the remaining 15%.
If you earn $100 per month, spend $85 and save $15. If you earn $1,000 per month, spend $850 and save $150. If you earn $10,000 per month, spend $8,500 and save $1,500.
Many of us might protest against this concept. "I can hardly make ends meet on my current take home pay, how do you expect me to save 15%"?
I understand your reasoning, however, it's time for a reality check. The truth is that most of us will not win the lottery, nor are we going to come into a huge windfall from the death of a distant relative. We're not going to inherit a multimillion dollar trust fund from our parents, nor are we going to make a killing on the stock market. Most of us will have to achieve a debt free life through the consistent application of a rational, prudent and realistic debt reduction program that is within our control.
Saving 15% of your income and allocating the savings towards debt reduction is a sensible, achievable and financially prudent way to eliminate debt. If only we manage to adhere to this simple rule, we'll never, ever get into trouble again. Not only that, but with a little patience, we'll soon be debt free and on our way to becoming wealthy.
This is a logical concept requiring nothing more than a modicum of self discipline to apply. So please, starting today, let's apply this simple, yet uniquely powerful concept and we'll soon be streets ahead of the ignorant Joneses whose senseless need for a celebrity lifestyle will condemn them to a life of chronic debt.
About the Author
Rich Stopher is a C-level executive with over 30 years experience in the finance industry and has served as President and CEO of both private and publicly traded companies.He has raised in excess of US$ 2.5 Billion in private and public debt financing.
He is a strong advocate for financial literacy and aims to help his readers discover how to get out of debt.
Rich Stopher. http://www.quashdebt.com
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