The first step is to determine needs and wants. We are talking real needs not, I really need them because I want them. It doesn’t mean giving up all wants, but let's clean up the thinking process. What fun is life if we don’t have fun? The key is balance.
Ask yourself, “Would you go to the bank to get a loan to go on a vacation, or to buy a guitar, set of golf clubs, an outfit or any other toys?” Maybe the answer is yes. Then ask, "Is this a smart and right thing to do?"
Take Control has a great calculator for seeing what you are really paying for something. Would you have gone out to dinner for $75 if you knew it would cost you $120 to pay for it? How much do you have to work for that $120? Paying $1,500 over eight years for a new television is the same as saying it is only $1,000 and we'll finance it for eight years of the low monthly payment of $16.25!
Figure that one out.
Decrease and Increase
Decrease spending and increase debt payoff.
Decreasing spending and use of credit while increasing the amount of debt paid off is the most basic formula to become debt free and set the stage for financial independence.
Most people do not want to hear about this. It is not easy, and it takes some discipline.
If you are reading this, great, you are serious about taking control and making a difference. I believe you can. Most people don’t make the effort and most of them can’t figure out why it is so hard or even possible to take back control.
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