I recently lost over 60 pounds using an approach that I believe will help me keep that weight off permanently.
Because I’ve changed many habits that have caused me to become over 60 pounds overweight. In fact I’m still using those principles and habits and expect to do so for the rest of my life.
I still hear donuts calling my name when I go near a bakery, but that’s okay. We’re not friends anymore.
I may eat one or two through the year, but it’s not that likely.
I can’t afford it.
I can’t afford to make stupid choices about my weight.
I mention this because I see great similarity between weight and debt. It has been quite a while since I was overwhelmed with debt.
It was a happy time.
I had a hard time digging my way out of that hole.
Today, I realize that my weight gain and my debt problem both came from my carelessness. I was careless with my health and I was careless with my finances.
I ate just because I had a craving to get something, not because it was within my income limits.
The comparison is obvious. When we eat more calories than we burn, we will gain weight. When we spend more money than we earn, we will gain debt.
So, I believe some of the same principles that helped me lose weight can help you to get out of debt and stay there. They are exactly what I did years ago when my wife and I had accumulated a substantial debt while I was in the Navy. The comparison with being overweight just makes it clearer.
Why do most people make stupid decision about money?
Look around your community. Have you seen those signs for payday loan companies? These are the worse of today’s loan sharks.
They sell themselves as being concerned about your lack of money, but if that were the case, they could simply pay your bills for you. Instead, they set up contracts to insure that you are paying them.
The racket is, they have to pay back right away after payday or else pay a huge interest rate that will rob them for months to come.
Why do normally smart people make dumb choices about debt? Part of the problem is that people try to get the most pleasure as quickly as possible. It’s a short-term mindset.
That would not be so stupid if you knew you were only going to live till the money and credit ran out. However, those who enjoy living beyond their means may not live very well when those means fail.
In other words, if I spend tomorrow’s income today, I may have nothing to spend tomorrow. Individuals, families and even nations make the same mistake.
That same short-term thinking cause many debt crises. For example, they fail to do minor repairs to their homes and cars, resulting in major expenses that could have been avoided entirely.
They go into debt, sending a child to a major university rather than insisting that they attend a local community college that offers similar programs for a fraction of the cost.
Rather than packing a nourishing lunch to take to work, they buy junk food at the over-priced convenience store or fast food restaurant.
They destroy their health trying to save money, even though health care will cost them more later and may deprive them of the ability to make a living.
This is how you get out of debt in two spectacular ways
You must be determine to start living within your means. In fact, if you are going to get out of debt, you’ll need to live on less than what you are making. You will need to spend less right now so you can pay off what you spent in the past.
a. To get out of debt at least one of income or spending must change. Usually both must change to some degree. Either income must increase or spending must decrease. Or Both.
b. When you have a rising debt, it’s time to quickly understand what’s happening. Which is easier for you, increasing your income or cutting back on your spending?
The need for more income
If you only have enough to buy enough food to survive, then it’s obvious. You would need more income! So let’s assume you’re on the verge of starvation and work and work from there.
We’re assuming none of your spending could be reduced. If y so, you can’t get out of debt without making a larger income. That’s what I call a no-brainer!
So how do you solve that problem?
a. You could ask for a pay raise
b. Consider a change of occupation
c. Begin a side business
Over to You
I hope the tips will help you get out of debt without incurring any additional cost.
If you’ve enjoyed the article, kindly share your thoughts on the comments box for discussion.
About the Author
Bill Achola is a financial publisher who spends his time inspiring young and senior investors through talks and seminars. Check out his personal blog where he writes about best investing strategies and actionable ways of being debt free @ traderushreview.us.com.