Hello! David J here again bringing you more of the steps on my journey toward financial independence.
This post is going to be more inspirational than informational because, if you're like me, sometimes we need to find something in the world around us that gives us the impetus to keep going in the face of adversity. When things aren't working the way we'd like we get frustrated and we need something to which we can look to help us see that yes, it is still possible and that we just need to keep going.
Two points we'll cover today:
1. "Fake it 'til you make it"
2. "You'll See It When You Believe It"
Now, the first of those is from the world of learning new life skills, acquiring a new career or a new direction in life. We all start out learning how to do or be something we've never done or been before. We need knowledge and skills which, once acquired, will create our new self, our new experience, our new world.
The second is actually the title of a book by Dr. Wayne Dyer. It seems a little backward compared to "conventional" wisdom, yet it is an immutable truth. We tend to ignore that which runs counter to our beliefs. When we expand what we are willing to accept, we expand our possibilities and a whole new world of exerience and joy will open up to us.
The two tie together when you want to create a real change in your life, especially in the area of what we loosely call "success". However you define success, make it something that is natural for you, that comes easily to you and just fits effortlessly. If you have to force it, it will never feel right to you and your efforts may lead to something less than your true desire.
You'll need to decide for yourself what success means to you - no one can define success for you. Create the definition - in writing, if that helps. Make it real and make sure it fits you naturally, effortlessly.
One way to achieve success is to actually see yourself being successful, whatever success means to you. Make it so real you can actually picture it your mind. See yourself being successful - create your own "picture of success", if visual images have the most meaning to you.
If feelings mean the most to you, then imagine how you would feel being successful. Stand and walk the way you would if you felt truly successful. Sit as you would sit if you felt truly successful. Breathe and walk the way you would if you felt truly successful.
If words and sounds mean the most to you, then speak the way you would if you felt truly successful. Play the music you'd most want to hear as your successful self. Surround yourself with those sounds you'd most want to hear as your successful self.
If you imagine yourself as successful, and really make it real, now your brain has a specific target. It knows what you expect from yourself and it begins to figure out how to make that your reality.
One of the most powerful features of us as beings is our subconcious self. It works all night, even as we sleep.
Try this: as you're settling in to sleep, bring to the front of your conscious mind a specific question to which you seek an answer: something you need to figure out, a problem you need to solve for whatever reason. When you awake in the morning, unless you've had a restless night due to storms going by, children needing attention or other every day things, you will likely discover that you have answer to your question or problem, perhaps even something you might not have considered before.
It may take more than one night, so keep at it. Many things can disturb our sleep and make this less effective, so stick with it. When your mind understands that you REALLY want an answer, it will provide one.
When you act as if you already have the success you desire, your subconcious mind will figure out what you can do to make your reality match your life as you imagine it.
-THAT- is what "fake it 'til you make it" REALLY means: not to deceive yourself or anyone else, but to create in your imagination that which you desire and make it so real - by your actions and the very way you act and carry yourself - that your brain must change your thoughts to make your life match the success you seek.
If you want to BE successful - whatever that means to you - make it real in yourself and, as long as it is something natural for you to be, it will become real in your life.
I listen to and read many successful people in my personal quest to become more than I have been. In this blog, I provide to you the benefit of what I have learned from my success "coaches", my "adopted mentors". This post is, in fact, a combination of Tony Robbins and Dr. Wayne Dyer.
Choose successful people to model and study. Read or listen to their accounts of their lives, what they have learned and how they have changed their lives because of it.
"Success leaves clues", as Tony Robbins says. Study success and learn all you can about it.
Be a life-long learner!
We'll talk again soon!
Take care - be well!
Much Success!
Showing posts with label wealth building. Show all posts
Showing posts with label wealth building. Show all posts
Sunday, June 23, 2013
Friday, September 30, 2011
Debt Reduction - 101
Hello! David J here again bringing you more of the steps on my journey toward financial independence.
Wanted to share some insights on the topic of debt reduction I've picked up along this journey.
The first comes from a Multi-Level Marketing company I hooked up with back when I was first laid off, back in the fall of 2009.
To get on track toward your debt reduction goals, you first need to assess what you owe and what are the interest rates on those accounts. Order them first by the lowest balance, then by the highest interest rate.
The first goal is to achieve the first pay-down.
"Pay-down"? Don't you mean "pay-off"? Well, not quite. We'll discuss that in more detail in a moment. For now, let's just focus on that account we can knock down easily because it has the lowest balance.
What you want to do is pay above the minimum on all your accounts except your house payment. Most of all, you want to figure out how you can pay down the lowest balance first as soon as you can possibly get it paid down.
Once you get that first balance knocked down to 10% of where it was when you started your pay down plan, pull this payment back to the new minimum payment and apply the surplus to the second account on your list. If you can, pay $100 plus the amount of finance charge on the current statement. If that's too much to handle, do what your budget will allow, but by all means do as much as you can to knock these debts down - they're literally killing you, financially!
In fact, if you can, pay the minimum payment plus $100 or more. It will be uncomfortable while you're working your way out of the hole, but you'll feel SO good when you're done!
Do the same when you've paid the second account down to 10% of the balance it had when you started your pay-down plan: pull the second account payment back to the new minimum and apply the surplus to the third account. Again, pay at least $100 plus the amount of finance charge on the current statement, if you can, or the minimum payment plus $100 or more. This should be getting easier as you knock these balances down.
...and so on. The technique is called "debt stacking". You pay the same amount toward your debts every month, even as accounts get paid down. You just shift money around so it goes toward the next highest balance or interest rate account.
Now: Why "Pay Down" and not "Pay Off"?
Well, perhaps anecdotal evidence will explain it better than I can.
I recently commented on an article in an on-line publication regarding the topic of credit. I saw a post from a fellow calling himself, "Justin".
“Justin” posted, “had about 8K on credit cards, always paid on time, never had any credit issues, I was paying it down slowly (leftover college debt), then I came into some money (overseas assignment) and paid it all off in about 3-4 months. I thought, wow this is gonna be good for my credit...wrong! All the credit card companies cancelled my cards and said I was a credit risk. I had a mid 700 credit rating, well paying, solid job and always paid on time. Makes absolutely no sense to me, any insight?”
A fellow calling himself "Peter" chimed in.
“Peter” responded, “Yeah, if you have no debt, the bank isn't making money. Therefore why should they give you a credit card?”
This was my response:
While Peter kind of missed the mark, the essence of his thought was valid. I'm guessing Justin’s creditors got nervous from the sudden, radical change in his fiscal habits.
Bankers can't handle radical changes - they're greed-driven, not rational. They will always assume the worst (picture the comic-strip character with his own private storm cloud over his head). Best to break it to them gradually, no more than 10% per month of your starting balance when you begin the payoff, then carry a small balance - say, 10% of what you had before you paid it down, just to show them you're still a reliable source of income.
I know, should we come into a large sum of cash, there's a tendency to want to "cast off the shackles of yesterday" and run free. I'd like to do that myself, actually.
I do have some personal financial issues - not related to credit - I will want to dismiss with the first big payouts I get from my entrepreneurial pursuits. No bankers involved there, so I'll clear those up post-haste.
After that, though, I'll begin a gradual reduction in my credit utilization so it becomes clear from my credit report that I became able to reduce my balances without appearing to be "spending wildly" or indicating huge changes in my fiscal habits.
I will, of course, resume building and then begin using the credit of my LLC, so large expenditures and subsequent payoffs do not appear on my personal credit.
Your comments are always welcome!
We'll talk again soon!
Take care - be well!
Much Success!
Wanted to share some insights on the topic of debt reduction I've picked up along this journey.
The first comes from a Multi-Level Marketing company I hooked up with back when I was first laid off, back in the fall of 2009.
To get on track toward your debt reduction goals, you first need to assess what you owe and what are the interest rates on those accounts. Order them first by the lowest balance, then by the highest interest rate.
The first goal is to achieve the first pay-down.
"Pay-down"? Don't you mean "pay-off"? Well, not quite. We'll discuss that in more detail in a moment. For now, let's just focus on that account we can knock down easily because it has the lowest balance.
What you want to do is pay above the minimum on all your accounts except your house payment. Most of all, you want to figure out how you can pay down the lowest balance first as soon as you can possibly get it paid down.
Once you get that first balance knocked down to 10% of where it was when you started your pay down plan, pull this payment back to the new minimum payment and apply the surplus to the second account on your list. If you can, pay $100 plus the amount of finance charge on the current statement. If that's too much to handle, do what your budget will allow, but by all means do as much as you can to knock these debts down - they're literally killing you, financially!
In fact, if you can, pay the minimum payment plus $100 or more. It will be uncomfortable while you're working your way out of the hole, but you'll feel SO good when you're done!
Do the same when you've paid the second account down to 10% of the balance it had when you started your pay-down plan: pull the second account payment back to the new minimum and apply the surplus to the third account. Again, pay at least $100 plus the amount of finance charge on the current statement, if you can, or the minimum payment plus $100 or more. This should be getting easier as you knock these balances down.
...and so on. The technique is called "debt stacking". You pay the same amount toward your debts every month, even as accounts get paid down. You just shift money around so it goes toward the next highest balance or interest rate account.
Now: Why "Pay Down" and not "Pay Off"?
Well, perhaps anecdotal evidence will explain it better than I can.
I recently commented on an article in an on-line publication regarding the topic of credit. I saw a post from a fellow calling himself, "Justin".
“Justin” posted, “had about 8K on credit cards, always paid on time, never had any credit issues, I was paying it down slowly (leftover college debt), then I came into some money (overseas assignment) and paid it all off in about 3-4 months. I thought, wow this is gonna be good for my credit...wrong! All the credit card companies cancelled my cards and said I was a credit risk. I had a mid 700 credit rating, well paying, solid job and always paid on time. Makes absolutely no sense to me, any insight?”
A fellow calling himself "Peter" chimed in.
“Peter” responded, “Yeah, if you have no debt, the bank isn't making money. Therefore why should they give you a credit card?”
This was my response:
While Peter kind of missed the mark, the essence of his thought was valid. I'm guessing Justin’s creditors got nervous from the sudden, radical change in his fiscal habits.
Bankers can't handle radical changes - they're greed-driven, not rational. They will always assume the worst (picture the comic-strip character with his own private storm cloud over his head). Best to break it to them gradually, no more than 10% per month of your starting balance when you begin the payoff, then carry a small balance - say, 10% of what you had before you paid it down, just to show them you're still a reliable source of income.
I know, should we come into a large sum of cash, there's a tendency to want to "cast off the shackles of yesterday" and run free. I'd like to do that myself, actually.
I do have some personal financial issues - not related to credit - I will want to dismiss with the first big payouts I get from my entrepreneurial pursuits. No bankers involved there, so I'll clear those up post-haste.
After that, though, I'll begin a gradual reduction in my credit utilization so it becomes clear from my credit report that I became able to reduce my balances without appearing to be "spending wildly" or indicating huge changes in my fiscal habits.
I will, of course, resume building and then begin using the credit of my LLC, so large expenditures and subsequent payoffs do not appear on my personal credit.
Your comments are always welcome!
We'll talk again soon!
Take care - be well!
Much Success!
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