How we eliminated our debt PT. 1: Another Follow-up to "F#ck Debt".
This video shows specifically what my wife and I did in order to get our debts/bills under control and begin to manage our finances to the point where we were able to see the fruits of our work financially. My experience is that if you do something similar, 85% of your problems will become a thing of the past within 1 calendar year.
By your 2nd year you're already used to and have a great understanding of how to manage your finances. Before you know it, you'll begin to see all of the opportunities that you can now take advantage of.
The most important thing is to make sure that you account for every dollar that you bring in. Before you know it your proper allocation of money will quickly eliminate those debts.
Another thing that I did was I figured out what were the "One-Time" debts that only had to be paid off once, the "smaller debt amounts" that could easily be managed and the "larger debt amounts" like student loans for example. What we did was immediately paid off those "one-time" bills in order to get them off of the books, implemented the "smaller debt amounts" within our weekly bill breakdown and the "larger debt amounts" we were able to set up a payment plan that was affordable. The moment we were able to free ourselves from the less expensive bills/debts it freed up money for us to put more money into the bigger bills as well as to establish savings.
Oh, and let me not forget! We COMPLETELY cut out credit cards! We all know the saying about building your credit up, but how many people do you know wrecked their credit with this method? I know I was one of them. People who have money dont need credit. Im not saying that having credit/good credit is a bad thing, Im saying that in my experience, having credit so readily available to me put me in a situation where I was spending money before I even had money to spend....because I had credit. THIS WAS NOT A GREAT IDEA FOR ME and only put me behind the 8 ball, not because of the initial money spent, but because of the interest they were getting from me. I became a cash cow, and I didnt like that feeling.
Please comment down below and lets talk about it!
Jeti Knight.
as always... great video bro! resteemed+upvoted!
btw, here is the app I use to track all my $ ( http://homebank.free.fr/ )! it is really very useful to keep me on track of my expenses!
Thanks Kintar0! Upvoted! I'll also check out that link brother.
you're welcome bro!
download it, and create your different accounts on it! then, per each trx you made, you make a input on the app with the amount and were it was spent/received! it has some cool stats also to look into! really useful tool! before I used excel, but this replaces it definitely! :)
Sounds great. I was using a word document. I wasnt even on the microsoft excel level yet!
Bro.. I can relate to the that old Sprint bill. Damn. I think the process of getting out of debt can bring couples closer together and it seems like you guys have a great relationship! Germany? That's what's up! Thanks for the transparency you give!
For sure man. After doing the first video I think im going to create a playlist worth of videos talking about some of the loopholes that either I fell in or I seen many of my friends and family fall into. Thanks for checking out the video!
There are two types of debt, bad and good. Few people know how to utilize it the correct way. I will be writing some articles about debt very soon actually. Oh and credit cards? I use them for mye every purchase, cashback credit cards are great if used correctly.
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Not being able to differentiate between good and bad debt or not knowing how to use credit cards correctly is more what im discussing. You shouldnt use what you dont understand. The majority of people who have debt use things like credit cards and dont understand how to use it...which in turn creates their debt situation. You're like at step X, Y and Z...im talking more about steps A, B and C. Thanks for taking the time though. I'll definitely check out your articles.
Very nice. Having control over your money is a great way to learn how to control your entire life. A lot of people just let things get chaotic, and never learn how to have structure. This goes for everything. Structure and dicipline are two "forgotten" values in modern society.
I agree. The values have certainly changed in modern society, primarily because marketers and advertisers now inform us what is deemed valuable.