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The shaky economy has many people looking for ways to make money and get out of debt. IT also has some people realizing, including myself, that we can't use credit cards and loans as crutches any longer.
In the book, "Total Money Makeover," by Dave Ramsay, he presents a way we can all change our habits, get out of debt and start saving. All we have to do is cut the fat and sell everything we can.
Now, I'm not in credit card debt or dealing with a foreclosure, but I did go to an expensive college and purchase a condo. I realized reading this book that I made two mistakes. The first one was going to a school I couldn't afford. Now I had cashed in bonds and stocks that we had invested in when I was in middle school, but it didn't pay for my entire four years. So, I took out loans, but I couldn't qualify for government loans so we took out private ones. Not only were they private BUT with variable rates.
The second mistake I made was buying a small condo. At the time my husband and I thought it was a good investment, and maybe one day it will turn out to be just that, but right now, it is holding me back from moving on.
So, although I am not swimming in credit card debt, I do want to pay off my student loans.
So if you are like me and you...
A - want to get out of debt...
B - are tired of working to live...
C - need to start saving more...
THAN listen up.
The secret to making all those desires reality is the TOTAL MONEY MAKEOVER.
The book is straight forward and makes you dust off the 'ol piggy bank. No more Debt card... no more credit card... no more excess... no more spending. Everything goes toward the loans. The mortgage will get paid off once the place sells - hopefully in a year or so, in the mean time there is a renter paying the mortgage... SO that is money in the pocket.
The trick is figuring out what you can live without. See I am not a big shopper, but I do love friends and food. Unfortunately, I've had to cut both out... NOT the friends entirely, but there are no more random expensive nights out.
No I don't work for Dave and I'm not selling his book...
I just realized recently that this economic sinkhole we are in may actually help spin the country out of bad practices and poor choices. We should not be built on debt we should be built on wealth. Some people think having the ability to charge thousands of dollars and take out loans to buy what they want makes them wealthy - but really it makes them gambles and, in some cases, liars. IF you think about it charging this and that... taking out loans for a school you can't afford... it is all taking a gamble. If we don't have the money to burn we shouldn't be taking the risk - at least that's what I've learned from my gambling relatives. Anyway - that's my two cents.
Let me know what you think and please let me know if you also feel the country needs real change... I'd love to continue looking into how we can fix things - with you. Also, if you like this topic - I will interview experts for their secrets to financial freedom.
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