My dear Thinette
Your granddad used to say, Debt is a swear word. Stay away from it as far as you can, it is contagious. Living within your limits is the only way. I am giving you tips on what I have learned from him, and best of all, guidance to solve the debt dilemma.
The best way to become debt-free, is to stay out of it, my dear. A hard one when you see all the temptations on offer. Staying out of debt keeps you in control, to later buy what you want, and it has so many advantages.
How To Solve The Debt Trap
You might not have a money-spending problem my dear … it could be an income problem! If the money you earn is not enough to cover your monthly responsibilities, you have a problem. Let alone having spending money. Let’s try and get to the bottom of it, and solve this debt trap problem.
Having gained freedom with age brings newfound excitement. You are free to do whatever you want, rushing through the shops, filling the trolley with all you want, giving in to many temptations. As long as you own your actions, it is good.
The urge to buy what you see and want can cause much grief and stress. The possibility of falling into the debt trap is imminent.
Avoiding debt is the outcome everybody wants. To be able to live debt-free, will need good planning and never to spend more than you earn. I hope the next will never be true for you!
In this letter, I am going to give you tips and hints, guiding you to solve the problem and Live a Debt Free Life.
It will not be the end of the world to have debt, as long as you are sensible enough, take responsibility and try to get out of it, my dear. Pick up the pieces, do your planning and walk away wiser from this experience. Never repeat it.
No no … money is not the monster my dear. The way you manage money or rather the lack of management makes it the monster.
Landing in debt can ruin your life. The worst thing that can happen is falling into the claws of the law.
You are so dear to me, I never want this to happen to you. This letter is to help you prevent seeing the inside of these offices.
Rules to Getting Debt Free
SPEND LESS THAN YOU EARN.
Try and buy less and less every month, it is possible, my dear. There are many things you buy that are not necessary. Ask yourself, do I need this item or do I want it? Set a budget aside to grant yourself the luxury of one extra item a month.
When confronted with a desire to buy, think twice. Make sure which will benefit the most. The money staying in your pocket, meaning sooner financial freedom, or breaking your budget keeping you poor.
Make it a rule, listen to the little voice sitting on your shoulder, buying less, and see how your savings accumulate my darling.
Never Buy With Money You Do Not have in Your Account
Try never to use a credit card to buy goods and therefore go into debt. You are using the bank’s money, they will charge you interest and you will have to pay back almost double the amount.
Not just the young people are guilty of it, but adults, out of control and who wants to compete with the Jones’s next door also falls into this trap. Not planning or in the social spiral can drain your funds too.
Buying Takeaways and Alcohol are the culprits. Most people are guilty of it. Don’t deprive yourself, but just do everything in moderation.
Have a fixed budget and planning for both those items per month and stick to it.
Without proper planning and discipline for your money, you will live from paycheck to paycheck for the rest of your life and never fulfil your dreams.
Your big dreams are possible to reach, with good planning, discipline and dedication. Do it from the start.
Pay Yourself First, you will reach your goals much sooner than the rest.
Patience and persistence are the keys to achieving.
It is important to realise a newly hatched birdie can’t fly like an eagle. You have to start at the bottom like everybody else and not where your parents are when you left the nest.
Build up your little kingdom step by step to the big Empire you want it, and appreciate every step.
There will be times when all is not what you would want it to be, just keep going and it will smooth out.
Know What You Want
Time for new habits to fit your dreams and goals are in the air, my dear. Out with the old lazy habits from your lifestyle as a kid, it will not suit your new lifestyle and dreams.
Feeling comfortable for too long is never a good thing. Find new challenges to enhance your exciting life, push your comfort zone boundaries.
• Find the pivotal point in your life when you realised the value of money and what money means to you. That will help you decide what you want for your money.
Mine came when I was 7 years old. On our way for our annual holiday, I left my pretty little bag with all my holiday money in at the table in a restaurant when we left.
Needless to say, we never found it. My dad was very strict and did not give me more money, I had to learn a lesson. This is when you get to know the meaning of tough love, with a great lesson taught with love.
Does money mean, comfort, luxury, necessity or will it be the vehicle to your dreams? Have a plan of action for the money you will earn for the rest of your working life. Make it useful with a purpose to fulfil the goals you have.
• Never waste money. To be honest, we all are guilty of throwing away food, or still usable stuff and clothes from a sale. Tell me will you tare up paper money and throw it in the dustbin? Well, this is what wasting money means.
• Have respect for money and it will come to you in abundance. No, not by magic my dear, but by realising the importance of every cent.
• Greed and Envy are two evil monsters as a result of money. Avoid them like the plague my love. It should never bother you what others earn or have. You don’t want to know how deep in debt they are too.
It is best to mind your own business.
Everybody has, NEEDS and WANTS.
NEEDS are necessities you cannot function without
WANTS are what your heart desires
Never buy on the spur of the moment and never buy what you cannot afford. Make a choice that will fit your purse and budget. Be patient … your time will come, but you are not there yet.
Steps To Success
Set yourself up for Success my dear
Start on the right foot, find an infallible method and try not to fall into bad habits ruining your future.
PAY YOURSELF FIRST
• Have you heard of the saying, my dear? It means what it says. It is just a fixed way to save money regularly.
Every month when you get paid a salary, have a debit order or do the payment yourself via the Internet into a one-way savings account. Never have the card of that account around, keep it in a file or better still cut into pieces.
This is money you will never use till your retirement day. When you start early it might be a million or two to add to your retirement funds.
Just pay and forget! Time brings changes, so many older people do not have enough pension funds to survive. Please start to prepare early on for that day.
• To reach your goals you have to climb the steps of success. Getting onto the first step is by helping other people in need. You might be struggling yourself, and have to get assistance from time to time, but helping someone in need is the first important step.
• With that, you distance yourself from your situation of inferiority, by getting out and building your self-esteem.
You are getting on to the first step of the ladder to success when focusing to help others. You will have a positive feeling that brings newfound confidence.
• The next step is to stay out of Debt. Some people brag about strings of credit cards hanging from their purses. Don’t be fooled my dear those banks own all their money and they have to beg or loan some every month.
• If you have a credit card with a limit, never use it to go into debt. Give your employer your credit account number to deposit your monthly income into. Use it as a debit card to purchase, this way you will always be aware of your limit and will save on interest too.
• Pay all your monthly responsibilities with the card, yourself first, your house rent, water and electricity, medical aid, insurance, car payment etc.
In the beginning, until you have formed new habits, decide how much money you will need yourself for personal use and draw your money cash.
• Divide it into four equal amounts and put in four envelopes marked week 1, week 2, week 3 and week 4. Every week just use what is in the envelope. Don’t feel tempted to ‘steal’ from the next week or go into debt for a Want.
• The media plays a major role to get you into Debt and the Banks make it so easy to get an overdraft, keeping you a prisoner of your debt. Don’t fall into their money-making ploy love.
They add almost and sometimes more than 20% interest to the amount you pay. You almost pay double the amount for the same item, leaving you with an empty purse.
Never spend money you do not have, love, rather have patience and save.
It becomes a bottomless hole your money disappears into, leaving you with nothing.
• Have this golden rule:
NEVER BUY FOOD OR CLOTHES ON ACCOUNT
It is long gone and you are still paying …. bad choice!
Here is an idea. Go on a PHOTO shopping spree with a friend. Take some photos of the stuff you like in the shops, even try them on and let her take a photo. Sit on a couch and take a photo.
Go home and look at all the photos, see if the top or pants will match with the other clothes in your cupboard. Make an informed choice according to your budget. You will be impressed and proud of yourself.
When is something a responsibility? It is when something or somebody is placed in your care to give shelter, to feed and to clothing, you have to look after their well-being.
If you have a pet, it is your responsibility to clean after them, feed, love and care for them. Have the extra funds to take them to the veterinarian when they are sick.
Be realistic and not emotional, will you have the money to take on that responsibility my dear? If not, don’t do it how cute it might be, rather go and visit a friend with a cute pet.
Think ahead, first of all, Honour your responsibilities no matter what!
My Dear, know what the goals for your hard-earned money will be.
• Do some proper planning though you never have learned it. Have a plan for the future of your money. Start at your end goals. Know how you want to live when you have my age. How are you going to achieve it, most of all, how will you plan the journey? See how much you earn and if it will be possible.
• Set a goal for every five years. Plan how you are going to meet that goal. Will it be with more official studies, self-studies, extra relevant courses at work to enhance your position? Become an entrepreneur on the Internet, first of all, have a website and market products and write blogs and reviews?
You will know best, make a study and ask help from someone you respect if you are stuck and serious.