Continued from yesterday here
The reason why you need to increase your income is because, in managing your expense, you must have a monthly amount going into paying off your debts. There is no wisdom, nor honor in avoiding your creditors. You may not be able to call them or speak with them face to face, but you will need to text or mail them, apologizing for defaulting so far, and tell them you are working on repayment and that you will be paying them so, so and so monthly. With such commitment, you have taken a huge step towards making more income because you need to meet monthly expense objectives.
Also, one person you must not forget to pay is YOU. Ensure that, no matter how small, you have savings you have budgeted for monthly. You want to ensure that you develop new habits, like saving regularly, budgeting every bit of your expenses, increasing your income, engaging in business activities.
Guys, this is a pain-staking process but it is for your future. The lower you fall, the higher you can jump. Interesting things begin to happen when you manage you budget – manage is different from just reducing. You may reduce your budget but that may affect your standard of living, but managing can help you maintain your acceptable standard of living, but position you only where you need to spend no where you want to spend.
This getting out of debt matter is a big deal guys. Don’t put yourself under unnecessary pressure to get out as fast as possible because chances are, in the bid to come out, if you do not unlearn the habits that put you there in the first place, even if a lottery falls on your laps, you will find yourself in debt again shortly. You didn’t get into debt by mistake, it took many years of unconscious dedicated effort on your part. But as it is with all laws, if you fulfill the cause, the effect will follow. Its like, if you jump up, without trying or putting any extra effort, you will come down. This series was meant to get us into the thought pattern, habits, character and behaviors that would deliver a healthy financial life. To have more, you need to become more.
In the final analysis, the following are absolutely necessary:
1. Get A Financial Coach Or Mentor: you will escape a lot of curved balls just because you had someone advice you before hand. You need guidance, you need help. You need accountability. You need to be motivated to keep at it. This is almost the most important factor. Get mentor-ship, personal experience is capital intensive!
2. Take Records: you will need to record your progress beginning from where you are now. Assuming that you are good to go and have it all figured out because you read my articles is a big lie. It took years of home, school, church, mosque, etc, conditioning your mind to produce the destructive financial habits that you have. You will need to dedicate yourself to what we call, “school 2”.
3. Have A Plan: the fact that you draw up a plan doesn’t mean things will go exactly as planned but at least you have a map to work with and when you encounter different obstacles, you can overcome them. This is where your mentor can offer amazing help and guide.
4. Grow Deaf: when you set out of this journey, managing your expenses, giving less time to fun and play, engaging in extra income generating opportunities, you WILL lose social capital. But its fine. You have a goal. Goals require a commensurate level of action. Dedicating yourself to a cause demands corresponding action. The worst attacks may come from those closest to you; spouse, kids, siblings, friends, family or colleagues. Shut your ears to them, when hings turn around, they will shamelessly come and eat from your table.
5. Delay Gratification: people say enjoy your life because you have only one life to live. I have no problem with you enjoying your life, but that something is right doesn’t make it alright for you. There is a time for everything. Saying yes to gratification today might be saying no to financial freedom tomorrow. Darken your present to brighten your future.
6. Go For Financial Freedom: the momentum with which you use in getting out of being indebted should not wane when your income and expense level out because if you can come from a deficit to having a healthy personal balance sheet, why stop there? Keep up the momentum and grow your income, managing your expenses and creating an escrow account to save all you’re surplus. So that you can invest in assets that will in future provide passive income for you. Financial freedom is a situation where your passive income exceeds your living expenses.