Posted in Building Wealth, Debt Free, Financial Freedom, Winning with Your Money, You and Your Money

I’ve Fallen and I Can’t Get Up

We all have seen or heard this saying before.  Every time I hear it, I picture the elderly lady laying on the floor, alone and helpless.  Until she hits the button and asks for help.  Do you feel like you have fallen and can’t get up?  Do you think you’ve made mistakes in your finances, your career, your relationships, and your life that are so big, you are stuck where you are?

That is simply not true.

Yesterday, like most Sundays, I was sitting around in my pjs, relaxing and watching football.  I happen to be watching the Washington vs. Atlanta game since my Eagles had a bye week.  For the last several years, Atlanta has made it to the post season.  They have been one of the top teams.  However, this year, just a few weeks ago, they found themselves with a record of 1-4.  This record is not good when you have Super Bowl dreams.  Basically, the Falcons had fallen.  And the question everyone was asking was would they get up.

The team answered that question with a resounding “Yes!”.

The announcers were talking about what Coach Quinn had done to rally his team out of their slump.  They talked about how members on the team stepped up and said this is not okay.  They begin making changes – what they had been doing wasn’t working.  They came up with a new plan, a new way and in the process, found success.  Their record after this week is 4-4 – they beat Washington (who is leading their division).  And Julio Jones, one of their key receivers, made a touchdown after 343 days.

So what can we take from all this jibber jabber?  We all fall – even the best fall.  The key to success and winning is whether you decide you get up or keep laying there.  When the lady fell, she reached out for help.  When Atlanta fell, they developed a new plan.

So back to the questions I asked in the beginning – have you fallen?  What are you going to do about it?  Are you going to get up or just lie there?  Are you going to develop a new plan or just keep doing the same thing over and over?  Are you going to ask for help or just stay where you are?

The decision is yours to make.  When I found myself over $200,000 in debt, a single mom, making $10,000 a year, I had these same choices.  I decided to get up.  I decided to develop a new game plan.  I decided to ask for help.  And in doing so, I found success.  Now, what are you going to do?

If you need to press the help button, simply click here and reach out to Debbi and her team.  They have developed products, books and services to serve you anyway that they can.  Personal finance is personal and Debbi and her team are here to meet you where you are and help you reach all of your goals and dreams!

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Posted in Building Wealth, Credit Cards, Debt Free, Financial Freedom, Winning with Your Money, You and Your Money

Building Credit Without Debt

 

There is a big myth out in the money world – you must have a credit file and the only way to get it is to go into debt.  Both are simply not true.

You can exist with a zero credit score just fine.  However, if you want to get a mortgage, it can be a little more tedious than if you have a credit score.  But it is possible and as a matter of fact, many millionaires have a zero credit score simply because they do not ever borrow money.  If you never borrow a dime, your score will be zero.  If you have borrowed in the past, it will take many years to get down to a zero credit score, but it can be done.

Most debt free people however have a high credit score.  How do they obtain this without going into debt?  It is simple – you get a credit card that you use for something like a utility, cell phone or any recurring monthly payment and then you pay if off every month.  This will give you a great credit score because your credit utilization will be low (and it will be zero if you pay before the statement date) and you will pay everything in full every month.

Having a credit file of some kind does make life easier and less expensive.  Insurance companies, utility companies and even some employers are using credit reports to determine your rates, to see if a deposit is necessary and even to see if they should hire you.  I highly recommend a credit report, but you don’t have to go into debt to obtain it.

Credit cards were designed to be a form of payment – just like a check, cash or now, a debit card.  However, over the years, we have let that get out of hand and we use them to get what we want now instead of waiting until we have the money.

So as you can see, you can build a credit score without going into one dollar of debt.  If you are already there, it is not too late.  If you already have debt, the best thing you can do for your score is to pay it off and never use cards again (at least until you can use them as a form of payment).  If you are new to the money thing and don’t have any credit yet, don’t hop on that hamster wheel.  Simply get a small card, use it once a month and pay it off immediately.  Voila – credit with no debt!

Learn more about Debbi’s journey from having $200,000 in debt to becoming financially free and debt free.

Posted in Building Wealth, Debt Free, Financial Freedom, Saving for Your Future, Winning with Your Money, You and Your Money

Snowball to Avalanche

In my last blog post, I spoke about planning to get out of debt and how to move forward toward the goal instead of just saying you are going to get out of debt.  Part of moving forward and part of the planning stage is deciding which way of getting out of debt is best for you.  It is important to note that either way works and whichever one you choose, if you keep going, will get you out of debt.  But it is vital to your success that you pick the one that will work for you.  And if you pick wrong, you can always switch later on.  The most important thing is that you are getting rid of your debt and setting yourself up for building wealth and reaching financial freedom.

So let’s explore the two most popular methods:

Debt Snowball – This is by far the most popular way because you can see immediate progress and quicker progress in order to keep you motivated in the beginning.  The snowball method has you listing all of your debts in order – the smallest one to the largest one – and paying them off in that order.  This method doesn’t take any math into consideration – it’s all about emotion.  You may pay a little more interest depending on your situation, but it won’t be enough to quibble over.  And in most cases it will be less simply because you will stay motivated, finds ways to save and earn more and pay your debt off faster than you originally planned.

Debt Avalanche – This method helps all the math nerds out there.  The avalanche method has you listing your debts in order by the interest percentage that you pay.  The pro of this method is that you can save some money using this method.  However, the con of this method is that many times your lowest interest debt can be a large one.  Therefore, it may take months or even years to pay off just one debt.  It can be a challenge to stay motivated in this scenario.

Let me repeat – the most important thing is that you pay off the debt.  Getting rid of the debt is vital to your wealth building journey.  It doesn’t matter which method you use – they both work.  You want to pick the one that will work for you.  I used the snowball method because it was extremely motivating to me when I paid off 4 debts in one month.  This helped me to begin to feel freedom and kept me going when the debts got higher and higher and took longer to pay off.

So as you being to develop your plan to get out of debt, take the time to be honest about which plan will work for you.  And if neither one suits you, make your own.  You need a plan and you need to start taking steps immediately toward getting rid of your debt.  Doing so begins your awesome journey to wealth and financial freedom.

Get all of Debbi’s award winning books right here and begin your wealth journey today!