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Pay Attention To The Details!
Managing your finances is all about paying attention to the details! What rates of interest am I paying on credit cards? How much interest am I earning on my bank accounts. What does my cash flow look like each month? Is there more going out than coming in? Am I paying down debt or holding my balance in place? Best way to become debt free is to look into the details and create a plan to get out!
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Think Long Term!
Getting out of debt is a long term plan, for most people its 3-5 years. Thinking long term requires you to make significant changes in your spending habits and forces you to make harder decisions about buying what you actually need and not what you want. When you start its a good idea to say I'm putting this much money away each month no matter what happens, or I'm going to pay this much on my debt each month to pay down credit cards. Its about committing to your plan regardless of circumstance, because in the long-term you will come out ahead!
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Don't Be Afraid to Ask!
The most common thing I hear from people is that they are nervous to call their bank or credit card company to inquire about interest rate reduction, or see if there are options available to them like balance transfers or temporary rate reductions. CALL YOUR CREDITORS! More often than not people are willing to work with you. Life is unpredictable and we do suffer setbacks like unemployment, unforseen medical expenses, car accidents, etc. Communication is key to getting out of debt and might save you some interest points which can help you pay down debt faster. You'll never know until you ask!
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Start Saving & Start Paying!
I'm taking the step right now because I've struggled financially since getting out of college. Start saving something per month whether its $20 or $100 and throw as much money at debt as possible. My wife and I decided were going on vacation in december. We figured out that saving $50 a month from each of our paychecks would give us $1200 in december to go on vacation at our favorite place in Cannon Beach. Were also making additional payments on credit cards and have recently paid off 2 of them. This strategy does work and takes a bit of time, but you will be proud of yourself when it happens! Stay committed to saving and paying down debt with any additional income! Paid off credit card means extra income in your pocket every month!
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Experience over Material
One of the best ways to refocus yourself financial is to think experiences vs. material. Sure we all want a nice car, flatscreen tv, and the latest cell phone, but what about travel, expericing the world? I use to be a very materialistic person, however recently I decided that I've missed out on a lot of experiences to see the world and get new perspectives from places away from where I live. By focusing on experiences in life your able to save more money for longer periods because you'll be more focused on using that money you would have spent on a car or tv or phone, on a trip worth a 1,000 pictures and words!
Keep saving and paying down debt and you'll start experience a new life at home and into the world!
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