24
BE INSPRED, FEBRUARY 2014
lowest debt should be on top and you have to pay off this first. Once you’ve paid off your
lowest bill, take the monthly payment you created for your smallest bill and add it to the next
smaller bill to pay that off. Continue this cycle consistently, and you could find yourself debt
free in seven years or less. You know, interest is the powerful money making machine for
the banks and they’re using it against you. So you have to pay off them as fast as possible.
Save At A Time
You might get frustrated when I tell you that you
can pay off up to $8,000 debt with a ten month
emergency savings. You want to tell me it’s so
unrealistic to create such an amount with this tiny
emergency saving. Well, if you don’t want to see the big picture of your debt, you have
to do that. You have to save a little amount at a time for the next ten months or so. Put
$50-$60 in a week; let it grow up with 2 percent bank interest. If possible, increase your
saving amount weekly.
Create a Spending Plan
Take a piece of paper and sit with your
spouse. Now, write the sums of your
monthly income excluding pay taxes and
minimum payments on your all debts.
Okay, the total sum is here. Now, make a
budget on how much you’re willing to spend in each area of your life including foods,
clothes, medicines, transport, reward fund, and miscellaneous.
Write all the expenses and determine the importance of them in your life. The most
important expenses should take the top position on the spending plan. Look at the
bottom of the list; find what is not that important and eliminate it from the list. You can
open a Fun-saving account if you can save a little more from your monthly expenditure.
Automate Your Income
How long you will be pulling the chain of your debt? Let’s give your income a chance to do
something for you. It’s only possible when you can make your income an autopilot. Your
IRA is the best example of an auto-investment. You just need to set up a system; your
money will go to your investment saving account. You can also apply the same system at
a discount brokerage or a fund company to help you invest in a Roth IRA. Automating your
income is a great way to save more money to pay off your debt.