The second solution to debts

Let me just give background information to those who are reading my blog for the first time. The topic of discussion here is how to manage debts arising from student loan, car loan, mortgage, and family expenses. In my last post, I said the first solution is to sell the car and buy a cheaper used car. You cannot spend more than 15% of your take home pay on vehicle. I used a worker on an annual salary of $50,000 with a $30,000 car loan. Someone on this income shouldn't buy a car of more than $8,000 and should pay it cash. After solving the problem of car, the second issue to tackle is the mortgage. The reason for the choice is that student loan is a constant which must be paid. There are two options as regards the mortgage problem. One option is to look for another job to increase your income so you can continue paying the mortgage. The second option is to sell it to another person or to return it to the seller so you can get out of the mortgage debt immediately. In the second case, you need to live with your parents until you can save enough money to make a bigger down payment. While saving money for the down payment, you should be paying the student loan. You must pay all the student loan before getting into the mortgage again.      The problem is not a difficult one if one is committed changing his or her lifestyle. The solutions I have been providing here are exactly what I would do in the same situation.
     I will give more tips in my next posts.

      

First solution to managing debts

In my last post, I mentioned the problems of different type of debts. Now, let me give some tips on how to reduce these debts. The first solution is to deal with the problem of car debt. One of the problems of the working class is buying expensive cars. They like using new cars. How can someone on an annual salary of $50,000 finance a car of $30,000. It is too expensive even when one is single and live with parents. So, the solution is to sell your new brand car and buy a used car of between $5,000 and $8,000. The difference you receive from the sale of a new car should be used to pay student debt or mortgage. This should be the first solution to the problem. Think about this and take action immediately. 
     In my next posts, I will provide more solutions.

      

How to manage student debt, mortgage, car loan, and family expenses

Many workers are currently struggling with student loan debt, mortgage payment, car loan, and family expenses. This problem makes me reflect on how these factors shape our lives. How can one manage these expenses? The student loan has been used and must be paid back. Mortgage payment should also be paid so one cannot sleep on the street while car is necessary for commuting and carrying stuff from the grocery. Family expenses involves education of children, grocery, utility bills, car maintenance, among others. There is also another potential expenses which may complicate the situation. The potential expenses is the one that should be dedicated to improving your career. Many people do not make progress in their careers as a result of these expenses. The problem is that we don't think about these complications at the time of choosing our college majors and careers. By the time people discover the problem, it is almost late. There is no more time to change the profession and the family has already been constituted. The object of this post is to alert those who are about to choose their careers so they don't make the same mistake as those of the present generation. 
     In the next post, I will suggest some ways this problem can be reduced.    

Take control of your career

Your career is in your hands. Do not make the mistake of leaving it into other people's hands or control. It is the only thing you have and through which you can make it in life. If it is left in the hands of others, then your life is in the hands of others. Consequently, others will dictate how your life should look like. Therefore, take care of it carefully!

Turn your wish into desire

It is interesting to hear many people say things they would like to have. Some even say they would not like to work if they had enough money. But, when you ask them why they think they cannot get what they want, the answer is always the same - if I had ............... We know that when we use the second and third conditional sentences, we mean the action is not possible to occur or was impossible to occur in the past, respectively. People make such statements because they only wish for something. They never desire for things. Wishing for something to happen means the same as keeping your fingers crossed. In a simple language, it means be waiting for something to happen or simply, no action. On the other hand, desiring for something means taking action so your vision is turned into reality. The major difference between those who make it and those who don't is simply action. Another disadvantage of wishing for something is the inability to take the advantage even when you accidentally meet what you want. Just take a look at people who make it easily and lost them all and went back into poverty from where they came. So, turn your wish into desire today!

    

Input and output

Whatever the output you want in your career, there should be a corresponding input into it. This is very important because there is no miracle if you are not well-prepared. You should ask yourself what you can put into your career so you can reach your target. If your input is low, it is impossible for you to have a higher output. There is no need to complain. Everything in life works in the same way. You must plant before you harvest. We know what happens when one tries to harvest where he or she did not plant. 
     Think about this!

How can you get what you want from others?

The goal of everything we do in life is to provide good service or product for people to buy and pay us. This means that the end game of our knowledge and skills is providing something to others. We have to give others what they want before getting what we want. In other words, your success depends on others giving you what you want. If this concept is correct, then, there are two questions you should ask yourself. These are: 

• what can I give to people in order to get what I desire and?;
• how can I give it to them so they can give me what I desire?

The objective of everything you do or you are going to do in life is summarized in these two questions above. Think about what you can do and how can do it so others can pay you without hesitation. Remember, you may have the product or a good service you can provide, but you may not know hot to do it so others will pay you adequately. This is the problem may people have. They think that having a product or service is enough. The "how" side of the equation is even the most important part. If you can answer these two questions, your success is half way gone. This concept is applicable to both entrepreneurs and employees. These questions help you shape your choice of professions and college education. They also help your career in any organization you find yourself in. Think seriously about these two questions!!

Dream and Action

Dreams are good, but only action can take to where you want to be. The subconscious mind is a powerful tool to give you whatever you strongly desire. However, only action can make it tangible. Taking action starts with taking decision and having committment to it. The difference between those who make it and those who don't is the action. You may have the best knowledge or best intention in this world, but if it is not transformed through action, your result will remain the same. Then, what comes next is complaint. The person who complains will never accept responsibility for his or her fault, but will always blame others for his failure. Take action and stop complaining!

The conflict betwen investing in your career and spending

The post today is about investing in your career and spending, and the conflicts arising from the decision as to which way to go. 
     Many people are in trouble today because of the bad financial decision they made regarding investing in their careers or spending money on things that give them immediate pleasure. We know capitalist economy offers the opportunity for people to advertise their products and services. In this way, they can attract you to buy them. This is a known fact and we all are subjected to that. The problem lies on how you make your priorities, especially, for those on low income. Do you buy things just to impress people or be in fashion, or do you buy things because you really need them? If you belong to the first group, then think twice. It is very important to know that the decision we make ultimately determines our end game. If the decision is a good one, the end game has to be good. If the decision is bad, the result will also be bad. Many people will always give the excuse of poverty as a justification for not making progress in life. However, a closer look at their spending habit will show you that they are not saying the truth. Their main problem is that they are trading their future for the present. That is, the spending side of the conflict is winning the investing side. They overspend their income on things that give them immediate pleasure. As a result, they can never make progress in their career. This will eventually lead them to enter into a rat race or catch 22 phenomenon. A rat race is a situation whereby a person does not make enough living because He or she does not have the necessary skill. On the other hand, the person does not have the necessary skill to progress in career because he does not make enough money to pay for the skills. The problem gets worse when one is married and has children. Therefore, you should only buy only what you need so you can invest in your career now. There is no need of complaining later because that will not change your situation even if someone may sympathize by listening to you. Take action today!

Wealth and paid employment

The word success or wealth is most often seen as restricted to entrepreneurs. This is not true since entrepreneurs depend on talented people to manage their businesses. The people they trust their businesses to should also be wealthy. The members of the C-suite of large organizations are also rich because their compensation are in the millions of dollars. Another point to consider is that not everybody can be an entrepreneur. Therefore, employees can also be wealthy. It is interesting to note that many employees think that they cannot be wealthy. It turns out that they can be. The problem is that many make wrong decisions. They consider themselves as workers who do their 9 to 5 job. This concept leads to mediocrity. No one can get to the top if he or she is a mediocre. These don't have strong desire for success and don't invest in their career.
     In summary, anyone can be wealthy if he or she follows some guiding principles. These are applicable in any situation, whether in entrepreneurship or in paid employment. The main deciding factors are strong desire, decision, and committment. Think about these factors and how they apply to you. How committed are you to your job? Make that decision today!