Secret No. 5: Raise Your Financial I.Q. (Part 1)

We are more than halfway through Bo Sanchez's 8 Secrets of the Truly Rich! Secret No. 5 is Raising Your Financial I.Q.!

Financial Ignorance is Expensive

Some people think that buying books or attending seminars about finance / personal finance are a waste of money. But what these people don't know is that being financially ignorant is actually more expensive! You may be an expert in your current profession but knowing How money works is a totally different field of expertise.

Lesson 1: Avoid Bad Debt Like Bad Bacteria

Robert Kiyosaki in his bestselling book Rich Dad, Poor Dad explained that bad debt is when we buy things that take money away from our pockets.

Bo Sanchez suggests the following crucial actions you need to make if you are buried under a lot of debt.

  • Declare your Freedom Day
Set a target date when you want to be debt-free and call if your Freedom Day. Read, think, and pray about it daily. Focus on your freedom and not on all your debts.
  • Create New Ways of Pleasure
Examine your lifestyle and cut back on your expenses. Find new and simple ways of joy, and pleasure. Preferably, find substitutes that are free or much more less expensive but that can provide the same level of pleasure or even more.
  • Schedule Your Steps to Freedom
Schedule your debt payments. Start paying off high-interest loans first. Try looking for loans with lower interests, where you can transfer your current high-interest loans.
  • Don't Borrow When You Can't Affort it - Period!
And I will quote Bo on this, "Don't borrow to buy consumer goods ever again. If you don't have money right now to buy it, then don't buy it." If you can't discipline yourself to use credit cards then get rid of them.
  • Negotiate with Your Creditors
Banks and other lending institutions are ran by human beings after all. Meet with them regularly and assure them that you'll pay. Negotiate with them. Ask them if they can lower the interest rate. Don't back down simply because they say it's policy. Everything is negotiable.

Have articles sent to your Email for FREE. Subscribe by Email

Related Posts Plugin for WordPress, Blogger...

Related Articles: