ASPECTS OF DEBT FREE LIVING !

A huge part of living debt free is having large cash reserves. As you progress on your path to debt free living you will go through the following guideposts:

1. Getting rid of all credit card debt. This usually has the highest interest rates and you tackle the card with the highest interest rate first. When I started my last journey to debt free living I had 11 credit cards to get rid of. Once this is accomplished you can still use credit cards ( we use them to accumulate air miles ) but you must pay them off at the end of every month.
2. Next to go are the car payments. Again go with the car that has the highest interest rate. Once your car payments are finished, keep putting the monthly amount you where paying into a separate savings account and you will be able to pay your next car with cash. Don’t buy a new car, get one with low miles and 2-3 years old.
3. Next on the list is your home mortgage. Just add an extra 10% to your monthly payment and this is equivalent to paying an extra payment per year. Add on the other payments you where making ( credit card payments, one car payment, and add this to your monthly mortgage payment. You will be surprised at how fast this accelerates.

If it took you 10 years to get in debt, don’t expect to get out of debt in 2 years. Be patient. The reward of debt free living is worth it.

Once you are debt free the name of the game is to put money away. Let me give you an example. Just in the last month, I had to put on a new roof on one of my properties, put in a new furnace, and put extensive repairs in one of my vehicles. I had the cash on hand to pay for all of it.

We had made plans to visit our daughter in Florida after Christmas. We spent 11 days in Florida, went to see Mickey the mouse and we had the cash to pay for the trip!

Remember it’s a process. You can do it!

Jacques
CreatingWealthThatLasts