Don't let your money tell you what to do instead take control with these 3 things

If You Want To Make Your Money Grow Keep These 3 Things in Mind

Brian Ruiz, Finance| 

Many people believe all types of debt is bad debt. They see debt as a curse, something you should feel ashamed of. But let me tell you that’s not the case, you may have heard that there's two types of debt. Good debt is defined as money owed for things that help you build wealth or increase your income overtime. Bad debt is credit card debt and any other consumer debt that does little to improve your financial outcome. If you have found yourself acquiring bad debt it’s not the end of the world you can still turn it around with these three steps.


1. Consider not tackling your biggest debt first

When you are deep in debt with multiple credit cards, freeing yourself may seen impossible. And It may seem rational to pay your loan with the highest interest rate first, but according to Dave Ramsey in his book, "The Total Money Make Over". He suggests, “the snowball method” which is tackling the lowest debt first and paying minimum payment on the rest of the loans. By getting rid off the smallest debt first not only are you going to have more money to tackle the rest, but also it gives you a boost of satisfaction and accomplishment to keep going. The goal here is to develop a behavior change rather than focusing on the numbers. The snowball method is one of Dave Ramsey's most common advice to start your journey of financial freedom.


2. Don’t justify silly purchases

If you want to become financially independent, you have to figure out where you can cut any non necessary expenses. Making excuses by saying, “I work so hard I deserve this” is what keeps most Americans in debt. A budget is a tool that can help you figure out your needs versus your wants. Budgeting will prevent you from over spending and making any spontaneous purchases. Learning how to delay wants and focusing on the needs is what would help organize your personal finances. According to Dave Ramsey on an interview with ABC news he said, “Debt is not the problem, its the symptom. Debt is the result of disorganized, immature, buying things I don’t need and stuff for people I don’t like.” Making sure we aren't stealing from our needs to pay for our wants is what would keep us on the right track for financial independence.


3. Why spend when you can invest

If you have read my previous blogs investing is one of the things I mostly talk about. Many believe investing in the market is like gambling which is not the case. Millions of Americans benefit from investing in the market. It has been proven that this is one of the ways to build wealth. Start by understanding how the market works and how you can benefit from it. Investing in yourself is the most lucrative investment you can make. Start investing your money and time in things that really matter and can give you a high return on your investment. Education, learning a trade, and building that entrepreneurship spirit are some ideas that can have help you achieve financial independence. Either way if you are planning to build wealth overtime investing is the way to go. 


If you want to take control of your personal finances I recommend reading "The Total Money Make Over"

 Click here to get the book


Don't forget to follow 

Makesenseofyourfinances       Bruiz_          @brianruiz1523

 



 
Location: 80 Rockwood Rd, Hammonton, NJ 08037, USA

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