Personal Finance Strategies A Proven Guide To Pay Off Mortgages, Student Loans, Credit Card Debt, Save More, Investing And Money Management

By Robert Anderson

Do you owe too much money?  Are your debts crushing your spirit, embarrassing you, and stressing you out? You're not alone. The good news is that you can fix that.  And this book will show you how.

The debt trap is a serious problem. Who is in her, has a real problem. But most people react like rabbits to snakes: they just stand there paralyzed and do nothing until they are eaten. Keep a clear head and always tell yourself:

There is nothing that can not be solved. You have to get out of your own rigidity and tackle the problem before it eats you. 
As usual in life, every problem also offers a chance to do better. 

You just have to analyze it clearly. When I have a mountain of debt, I have to part with things and habits that have become dear. Of course, it is difficult for those who have always sat only at the fleshpots, now only to be allowed to spoon the soup. But this is the way out of the debt trap, and you want to get out of it.

You're about to learn time-tested strategies for winning your battles with debt. And I'm also going to share with you some strategies for increasing your income, as well as some important precautions you can take to minimize the risk of unforeseen events ruining your plans.
 

• Language: English
• Publisher: Robert Anderson
• Release date: Sep 4, 2019
• ISBN: 9781393731429

Robert Anderson

ROBERT ANDERSON is also the author of Little Fugue. He lives in New York City and teaches writing at the Nationwide Institute in Flushing, Queens.

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Introduction

Debt can paralyze - sometimes for a lifetime. Debts spread fear and take the joy of life. Debts burden and can destroy relationships. Who lives constantly from hand to mouth, for whom life is no longer worth living. Not a few people even take their own lives. It is not for nothing that many family tragedies happen for financial or debt reasons.

But there is nothing unsolvable. There is a way out for everything, even for the debt trap. No matter how hopeless the situation, there is always a way. Often you struggle for months for a solution that is close to despair, and suddenly there are several ways out. As the saying goes: Hope dies last! Who can no longer hope, has given himself up.

Have you ever wondered how some people earn a small income, and they never complain about it, and then some have a lot of money, but they can’t manage to pay their monthly bills? Or how millionaires manage their money? 

One of the most important steps towards being independent is financial independence. This means you are in total control of your expenses and the money you make.

Money is crucial when it comes to living well in the community, but you don’t need too much money to become independent, happy, or even successful. You merely need to know how to control your expenses and manage the money you have so that it can work for you. 

Debts can be a source of worry and anxiety for many people, and sometimes, it can be tough to know where to start when you want to manage your financial debts. This book will help you to get started on the path to paying off all your debts and become debt free. The book will provide you with a clear picture of how much money you owe, and to whom, how you can contact credit card companies and negotiate interest rates, how you can prioritize which debt to pay off first, which strategy to adopt to clear your debts, and how to create a budget. Also, the book is meant to teach you the most important aspects of personal finance. 

Besides that, you will further learn how to get started with investments and make sure that your money works for you, and not the other way around. You will be taken through many exciting tips and lessons that you should follow to fulfill your financial goals. Get ready to learn interesting stuff, including how you can become debt free without much hassle.

Chapter 1: Where Does Your Money Go? 

It’s the end of the month, your salary just hit your account, and for the first time, you have called all your bills to a meeting. You have a calculator ready, a pen, your bills, and a sheet of paper with the total sum of your cash written in big letters. 

One after the other, you write down everything you need to pay, and things don’t look right. You need more than you can spare. You go through your list for the fifth time, trying to figure out what you can save, what can take a back seat, and what must be paid right away. 

It’s been hours, and you are still short. What do you? Should you take another loan? If you do, next month’s expenses are going to be tighter, so that’s not an option. You try to think of someone who can loan you some cash and come out blank. You owe almost everyone you know. 

How did you end up here? 

Diving into your expenses is scary, especially if they are in a mess. But don’t let that discourage you. Every journey has a starting point, and for your expenses, the fixed starting point you need is knowing where your money goes. 

Whether your starting point is worse than you realize, getting a real financial picture can help you figure out the next step to take. Every aspect of your finances matter. You can’t focus on the big stuff and forget the small things. You need to look into every element that feeds your financial situation if your path to prosperity is to become clear. 

Your financial picture has more than your bills, loans, and paychecks. Most of us focus on the familiar part, but to see the bigger picture, we must know what we need to look at. Here what you need to look at:

1.  Networth 

Your net worth refers to everything you owe of significance less your debts and liability. This could be your assets, investment, your home, any real estate, jewelry, and anything else of value. Liabilities include your car loan, mortgage, student’s loan, and any other payables you need to make. Your net worth is your financial health. It clearly says what you would remain with if you sold all your assets and paid all your bills. 

2.  Cash flow 

Personal cash flow looks at cash circulating in your account for a specified period. Cash inflow includes your salary, interests on savings accounts, dividends from your investments, capital gains from sold financial securities such as stocks and bonds. It also includes any income gained from selling assets such as houses and cars. 

Cash outflow represents all expenses. This may include rent and mortgage payments, your monthly utility bills, groceries, entertainment, and gas. Any repairs on your car or house fall here. 

3.  Credit scores 

A credit score refers to a number that measures your creditworthiness based on your credit history. Lenders such as banks will use this score to predict your probability of paying a debt. 

4.  Your complete debt details. 

This will include your balances, the interest rates charged, your monthly contribution towards their payment, and the expected payoff dates. 

5.  You must also look at your retirement account. Look at your contribution, your balance, any asset allocation, and the average return. 

Our expenses are usually what traps us in the financial race we so often find ourselves. Have you ever notices that as your income increases, so do your expenses? To harmonize your financial picture, start by tracking your daily expenses. 

There are tons of apps you can download online that will help you track every dollar you spend. Be ready for surprises when you start this exercise. Your casual and credit spending is what skyrockets your monthly expenditure. You buy lunch every day, but when you look at the monthly expense, it will cost you about $200. 

To track your expenditure and account for every dollar, you must follow every expense you made, but most importantly, you must track what you did with the balance. We are often tempted to ignore the