Being Financially Successful.

Want to be financially successful? It's a lot easier than you may think.

1) Save. Sure, it may be boring and dull, but it's the tried and true road to financial freedom. Putting aside something each and every month - or each and every paycheque - is just smart. It might be $50 or $100 each time, or it might be, say, 10% of what you take home. Sock it away in something safe, like interest-bearing savings or certificates, and add to it each month or payday. Most banks, trust companies and credit unions pay lousy interest on deposits, but those not having the expense of operating branches - like ING and President's Choice, etc. - seem to pay a bit higher. And the federal government now allows tax-free earnings on deposits up to $5,000/year. Discipline is the key to any savings plan, but if you stick with it the rewards are huge.

2) Debt. Buying something on time or on a credit card is great - if you pay the balance off in full when the statement arrives. if you don't .. well, I'll give you an example. Recently our Mastercard statement arrived. The balance was high for us, about $3,600, due largely to the car insurance renewal. Creditors are now required to state on the bill how long it would take to pay off the amount outstanding if only the minimum payments are made each month. In this case, it was an astounding 24 years and 3 months! No thanks. We were fortunate to be able to pay it off before the due date.

The lesson here is that most debt is interest. You want to earn interest (see Save above), not pay it to someone else. Paying interest makes business sense if you are borrowing to earn money, but it makes no sense if you are just buying 'things,' be they meals, TVs, groceries, computers, etc. If Saving is smart, Debt is dumb!

Here's something to shoot for. Promise yourself that at the end of each year (ie: by Dec. 31) you will be debt free. In other words, before the end of each year, pay off any and all debts you may have. (If you have a big-ticket item like a mortgage, well, that's clearly not possible. I'm thinking here more about credit cards, personal loans, lines of credit, that kind of thing). Going into a new year debt free is a great habit to get into.

Save and avoid debt - that's really all there is to it. No great secret here: simple and easy to understand.

But is it easy to do? Well, that's up to you.

<< Return to Articles main

K & G Debt & Credit Professionals care about your situation and want to help.

For more information on our Debt Settlement Program? Contact us today, see how we can
help you Eliminate Your Debt with our Debt Settlement Plan!

All content © K & G Debt & Credit Professionals 2012

Site: imTheWebGuy