Black Money Business Jobs : When will you be debt free?

Discussion in 'Black Money Business Jobs' started by Full Speed, Dec 21, 2010.

  1. Full Speed

    Full Speed Well-Known Member MEMBER

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    I am no financial guru. So, I am not trying to pass myself off as someone with tremendous financial knowledge. But, I do have something that I want to share with you all. In fact, I am going to give you a mission...it's not mission impossible.

    Your mission, if you choose to accept it, is to purpose to become debt free and to determine the date that you will accomplish your mission. It's not as difficult as it may sound.

    We are going to do this together. The first thing I want you to do is to figure out your net worth. Once you have done this, indicate in this thread that you have done this. You don't need to annouce your net worth, that's your business. In many cases, that net worth will be a negative figure. Don't worry, we will get you out of the red and into the black.

    Figuring your net worth seems intimidating at first, but once you sit down and start to work on it, it's not that hard. It will require you to make a few phone calls, get a few loan payoffs, etc..but it can be done in a few hours. If your net worth is a negative value, it might be something you don't want to know/hear/see, but you will know your true debt reduction starting point. Each month your net worth will increase. Again, it won't be as difficult as it may sound.

    Next, we will look at a debt reduction strategy. Take a look at this tool. Debt Reduction Calculator This tool will help you determine EXACTLY when you will be debt free. It's a free download and an awesome tool for debt reduction. If you are comfortable with it, please download it. I am not affiliated with this tool in any way whatsoever. I have recommended it to a lot of people and have taught a lot of people how to use it. (just friends and family, I am not a financial consultant or expert by any stretch of the immagination.)

    If you are interested in this first and important step in economic strength and unity, indicate so in this thread then we will grow together and post our progress and lessons learned. While I am starting the thread and do have much insight in this area, I am NOT positioning myself as an expert. Everyone who has ideas and/or constructive criticism are VERY WELCOME to contribute to this exercise in financial freedom and economic unity. Everything can be done in a manner that no one has to be in your business or know your financial position. You set your own personal milestones. Announce when you have met them, not what they are UNLESS you WANT to. We will all rejoice together when individuals within our family meet their personal milestones, we will pray together for those who fall short or experience setbacks.

    If you have questions of me concerning this mission, please feel free to ask. Lets do this.
     
  2. MsInterpret

    MsInterpret Well-Known Member MEMBER

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    I didn't read this cause I just wanted to answer the title

    Hopefully in the next 5-6 years :em2300:
     
  3. Full Speed

    Full Speed Well-Known Member MEMBER

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    My guess is that with a definative strategy, you can cut that time in half. But, the debt reduction calculator can help you develop a strategy that will give you the definative answer to that question. It offers several different strategies that you can toggle between and see the result. My point is, I am encouraging all of us to have a definative plan and measure the milestones along the way. It works, its inspiring and motivating.
     
  4. Full Speed

    Full Speed Well-Known Member MEMBER

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    Once you establish your net worth and total your debts and monthly expenses, you might find that your monthly expenditures are more than your monthly income. If this is the case, the question becomes how do you work your way out of debt from a negative cash flow position. There is no secrets, magic, or fancy math here. You will either have to cut expenses, increase income, or a combination of the both.

    I recently helped a friend free up over $450 per month (If I remember correctly, it was $478 to be exact) that when she and I began discussing debt reduction strategies she indicated that she was just trying to stay afloat and had way to reduce debt.

    On top of freeing up the money, she also told me that she now saved on average of $100 - $200 in late fees she used to incur for paying her bills late and NSF fees that her bank charged when she overdrew her account.

    If you are not in this condition, you are in a great position to move to the next stage quickly. The next stage after debt elimination is wealth building. There are, of course, some intermediate steps in the process such as savings an emergency fund.

    Anyway, get started on your mission. Lets boost our individual and collective economic picture.
     
  5. Full Speed

    Full Speed Well-Known Member MEMBER

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    I realize it might be undesirable to participate in an online debt reduction experience. I do, strongly suggest that everyone have a solid handle on their finances. While I think it's beneficial to do it as part of a collective effort, that's not a necessity and certainly not for everyone. You should know your exact net worth. You should have a vision for the future. You should insure that your expenditures are appropriate in all catagories. In other words, if your car payment is 50% of your income something is out of balance.

    I know lots of people who make a lot less money than I do, but how drive a lot nicer cars than I do. I drive vehicles that are a few years old (2002/2002/1996/1998) but are in great mechanical condition. They look decent, are practical, but don't come with one important feature.....a payment book. They don't have 22" wheels or $250 low profile tires, but when my tires wear out, I don't have to go spend a grand to replace my tires. I spend about the cost of one low profile tire to replace 4 of my tires.

    I had an uncle who tried to teach me this stuff when I was a teen and young adult. I didn't start listening until my 30's.
     
  6. abstract219

    abstract219 ...standing on the shoulders of giants MEMBER

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    LOL
    I dont ever think I will be debt-free. I went to college.
    student loans are for life.

    This is a great thread tho...I learned a few things.
     
  7. Full Speed

    Full Speed Well-Known Member MEMBER

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    LOL, those student loans do stay with you for a while.

    One thing I like about the debt reduction calculator is that once you get a handle on your net worth and your income and expenses, that debt reduction calculator will bring you to the point where some decisions will be clear. It will oftentimes bring the user to the conclusion that with their current level of income, they don't have much room for debt reduction strategies.

    I usually show them how an extra $100 per month would significantly effect their debt reduction strategy. You have heard the term "the more you make, the more you spend". This is true if you are not working with a strategy. If you had an extra $100 per month without a strategy, that $100 would get absorbed into your spending without seeing anything for it. But, with a comprehensive strategy in place, that $100 has a specific purpose, to eliminate your debt. THEN, that $100 becomes part of the freed up money from debt to begin working on wealth building.

    It doesn't take bundles of money coming in at one time to make great things happen.
     
  8. abstract219

    abstract219 ...standing on the shoulders of giants MEMBER

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    Thanks for posting the info...got me looking at my finances....

    I was reading in one of your other posts, that this is a area that get overlooked...

    I agree.
    AT one of our community outreach programs...we had a black financial expert come in.....

    3 people showed up....the others were off into free gifts and philosophical concerns.
    So I understand what you say...the immediate need to work on these issues.
     
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