Ways to be debt-free

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                                source: http://antipinoy.com/

This is a follow up on my previous blog "What it means to be debt-free" if you haven't read it yet click here to read it.

So you decided to be free from your debt but your wondering how in the world can I do  that? So this topic will be  in parts since it covers a lot of things.

Let's discuss the very first step. Step one is accepting that you are buried in debt.

                                              source:http://interacc.typepad.com/synthesis/

I know you are lost why to be debt free one should accept that one is buried in debt. Just like any other addictions, the first step towards freedom from it is to acknowledge that one is addicted to it. Accept the fact that you are in debt. Most people will have a hard time doing this because of pride. They would say "no I'm not buried in debt, I'm just behind my payments don't worry money is coming".

It is sad that most Pinoys would just say that. They don't want to accept their situation thus they are always in denial mode. And so doing in order to cheer themselves they buy. They go shopping and go malling and when they see something they've always wanted they buy it and charge it to their credit card.

                                               source: http://blog.beliefnet.com/onecity/

Or if they are upset they escape by going somewhere else like going to a resort or watching movies just to forget that they are buried in debt. I remember my brother's comment about how so many people have the guts to get a loan to pay up another loan just to have money to spend, he says "Basta at least sumaya sila sa inutang nila."

So the very first thing is really to accept that you are buried in debt. It creates that realization inside of you that you have to do something about it.  That one must be responsible for it and not escape and show the world that everything is okay because it is not okay.

                                            source: http://www.selfishprogramming.com

Ever seen movie scenarios where the Dad or Mom secretly works in a night shift low paying job to support their family after losing their job while their children are acting like rich kids getting this and buying that. That is so pitiful and yet the parents keeps on denying it but in the end everything is ruin.

So remember step one: ACCEPT THAT YOU ARE BURIED IN DEBT.

 vv

What it means to be debt free?

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source: http://mamacanon.blogspot.com

We have been discussing stocks for quite sometime now and I would like to step back and talk about some issues that a normal person would like to tackle.

I was reading the blog Simple Mom regarding how she and her husband finally able to say to themselves that they are debt free. It came to me that most Pinoys are becoming like most Americans and that is living in debt. And with that I wonder if the same mortgage crisis happen in the Philippines when most Filipino families will become homeless because they are not able to pay their mortgage on their house.

One rule that me and some of my stock investor friends have always reiterated is to invest only totally free cash. There was one comment in one of my post asking how can one have extra money for investing when upon receiving her paycheck nothing is left. The thing is to be financially free or for this case debt-free is to have a discipline not only to master but also live on a day to day basis.

That is why I recommend Bo Sanchez's book Simplify and Live a Good Life. Being debt free is a goal which needs a plan. So right now sit down and look at your current financial situation. How many debts do you have? It could be a car loan, home loan, credit card debt, school loan, or any other loan you made out of emergency needs. List them down in the order of which is burdensome that is which one has a higher interest rate. As much as possible pay up first loans with higher interest and just give some to those that has a lower interest. This will save you from the dreaded charges that loan companies charge you.

                                     source:http://thedebtfreeusa.com
 

Start small steps towards your debt free life. And soon you'll realize the value of not owing anyone. There will be no more deadlines to catch. There will be no more allocations to be made for creditors now you can put those extra cash for investments that would generate more money for you till it comes that the money they generate will be more than your wages thus giving you passive income.

There are so many benefits from becoming debt free. How about you what do you do to become debt free and what are the benefits you enjoy now that you are now debt free. Share your thoughts.

Prosperity Consciousness and Psychological Wallet

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I read about Prosperity Consciousness in Bob Proctor's book You are Born Rich(To get a free copy of this book go to my webpage's Must read books tab or click here for the free ebook).

Bob Proctor explains that the things that were invented and enjoyed today has been there since before it was discovered. It was through one's consciousness about such idea or invention that lead to its discovery. So as with prosperity or abundance. 

source: http://www.re-motivate.com

Many people today are so blind that money or abundance or prosperity is within each and everyone's reached but seems so impossible. If we are only aware we could easily know what product would sell and give you profit or what stocks to invest to give a good return. But why is it up to now so many people are poor or so many businessmen failed in their business? Like the great scientist who discovered great knowledge that we use to day and sometimes we don't even appreciate, one has to be determined to see through the abundant source of information and abundant source of investment vehicles each and every man can have. When one has determination to learn and to harness such vast knowledge and resources then one has truly opened his eyes and finally sees that consciousness  unfolding little by little.

source: couponegg.com
 

What is a psychological wallet? In Bo Sanchez's book 8 Secrets of the Truly Rich psychological wallet was mentioned. Every person has this imaginary wallet. And each person knows how much money can only fit in that wallet thus in times of prosperity or when they made a jackpot in their business, or they got a bonus, or a promotion, the tendency is for them to spend the excess because they cannot fit it to their wallet. Thus when an employee got an increase  or bonus she or he plans where or what will he spend it for. Probably a treat at a pricey resto with friends, a Louis Vuitton bag, a vacation trip in Bangkok or in Boracay, or any thing as long as such excess money is spend and not tuck in their wallets.

Check Truly Rich Club for Bo Sanchez's secret to be truly rich.

source: livetradingnews.com

The thing is the secret to be truly rich is to accumulate and re-invest in a vehicle that will keep on earning and re-investing on its own. 

Thus for those spenders such wont be achieve because the money that they could have placed in a mutual fund or a stock investment is already gone. That is why it is recommended to change your psychological wallet. You can actually make that imaginary wallet  bigger so that you can happily put that extra earnings, save it, and invest it in an investment vehicle that will continually give you returns which you can now enjoy in Boracay or a Bangkok trip without you worrying where to get the money for it because it is now a fund that earns on its own.

The stock market is one good investment vehicle one can put one's free cash. The stock market may be running up and down but when you know when to buy and when to sell by opening that consciousness about the stock market you can prosper from it and reap its benefits in the long run or short run if the market is so good just like recently.

Again open your mind and be conscious of the abundant prosperity around us and always make your psychological wallet big enough to accept that incoming money from your stock investments.