personal finance investing

This Is How Debt Freedom Really Works
By Bruce Hokin
Lots of folks are confused as to how debt reduction and freedom from debt really works. It is not rocket science. There is a proven, simple system that works every time - if followed. These steps are listed below in order and can be actioned easily by anyone interested and keen enough to succeed. Is that you? Great! Let's start.

Step #1. Acknowledge there is a problem.
What are the symptoms? Not enough cash to meet all your monthly commitments? Cash not being spent wisely? Can't put any cash aside for emergencies and large bills? Don't know who is owed money and how much?

It is important to answer these questions honestly and openly, so that the correct actions can be decided upon.

Step #2. Set up a plan and make it work. Don't give up.

Before you go any further do the following:
a) find all those credit card statements, bank statements, other debt balances, add all the outstanding balances.
b) make a commitment to reduce the debt to a certain figure with in a certain period of time.
c) once you have made this commitment you then can



start thinking of ways to make it happen.
d) imagine your life and the freedom you'll feel, once the debt burden is lifted and you can be your own person again.

Step #3.Work out ways to live within your means.

Do not use those credit cards again. Cut them up. Only spend money you have available from cash coming in each week/month.

There are many sites on the Internet devoted to helping you live without the need to rely on credit cards. Search for them and try their ideas.

Step #4. Don't compare your own circumstances with others.

If wanting to be like others, has been driving you to spend, think about this: Do you really know whether the people you look to, are committing the same mistakes as you used to? Do you really know their financial position?

Look to yourself and develop ways to reduce your living costs so you can start saving and paying down those debts.

These simple ideas may help.
a) Eat at home more often
b) Take made up lunches to work - don't buy
c) Reduce your bought coffees per day
d) Borrow DVDs, books, magazines from the local library
e) Spend less time at the malls
f) Develop a hobby, make it pay
g) Turn unwanted goods in the home and yard into cash at markets
h) Try to get along with 1 car - sell the other
i) Buy anything you need at a sale. Not many items have to be bought at the height of the fad or fashion.

Step #5. Pay off a small debt first.
Celebrate when it's paid off. This will give you the incentive to work on the rest of the debts.

Step#6. Keep some money for fun times.

The whole process needs to be seen as an adventure. Involve the whole family, gain their commitment also. Put some money aside for the odd items you've been wanting. Pay for it with cash. Enjoy the purchase.

This is just the beginning of the process but these steps will set you on the right path.To truly solve your debt problems you need to keep yourself under control. There's no one else who can do this for you. Ask for God's help also. You'll be so glad you did, once the debt burden has been lifted and you can become your own person.

Article Source: http://www.articlemap.com

Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budgets." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.

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