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The Flip Side of Debt
By Daphne | March 20, 2008
Wealth creation is just the flip side of getting out of debt. Either way it relates to your relationship with money. Will your money grow in this current climate or flounder? You can make it grow if you plant the right seeds.
If you aren’t in debt, you can still use tips for getting out of debt to help you with wealth creation.
Instead of paying down high interest rate credit cards, add a little extra to those steady investments that always yield a return. Depending on your comfort level, that may be by buying some bonds or adding more to your mortgage principal (your only “debt”) or by adding more to your savings account.
Even if you don’t have to save money or compare prices, you will be able to stretch those dollars if you do. If you do not want to cut back or do not have to. Can you make better financial choices? Shop the sales. Most frugal people do shop the sales but have certain brands or item that they prefer. The point of being frugal is to be able to spend your money on what you need and what you would like to.
If this means that you are going to avoid going out then you are burying your head in the sand. Debt reduction doesn’t mean that you have to go cold turkey. Instead of cutting back in all areas, set aside an extra amount each month to add to your wealth creation fund. If that means that you are going to use to money to invest in the stock market when things are low or add it to your existing accounts, you are making an effort to create wealth.
When you start to see some returns on your money… do not be tempted to take the money and run. When you spend the money that you are amassing you are not building wealth.
Another tip that works for debt reduction is to determine the fees that you are paying. If you are paying high fees for withdrawing money or to invest money, search around or see if you can negotiate a better deal. Not possible, there are other companies that you can use for investing.
Coupons work for people who are trying to save money. Some people have recommended using coupons and then taking the money you saved at the store and putting it aside. Instead use coupons to stretch your money and allow you to use the money you didn’t spend for investing.
Think of your money as a garden: Plant the seeds and watch them grow. If you don’t plant it and encourage growth your money won’t.
Topics: March 2008 |