“The rich rules over the poor, and the borrower becomes the lender’s slave.”
– Proverbs 22:7
Are you scared of opening the mail and looking at your gigantic credit card bills?
Do you hide from your friends and relatives because you owe them money?
Is your income not enough to cover expenses and pay your debts?
If you want to get out of debt and pay them all back, here’s a VERY SIMPLE 3-step plan from George S. Clason’s “The Richest Man in Babylon” (Click link for the book):
3-Step Plan to Get out of Debt:
STEP 1: List down everyone you owe money to and how much money you owe to each one. Contact them and inform them you’ll pay them back a little every month.
STEP 2: Right as you receive your paycheck, take 10% for investing and take 20% for paying off debts. The rest of your paycheck can be used however you like. Do this every payday and you’ll learn to easily live with the remaining 70%.
STEP 3: Avoid borrowing more money and getting into more debt.
Repeat those three steps until you’re paid!
Living on Less is Easy
If you think that you can’t live on a lower income (the remaining 70%), remember that there are people who provide for their families, have as much fun, and have as many things as you do EVEN IF THEY EARN LESS. Like income tax, if you budget for investing and pay debts first BEFORE you pay bills and buy groceries, you’ll learn to waste less money.
Paying off debts is like chopping a tree with an axe or plucking weeds off a field. When you take a few swings with the axe and pull out a few weeds every day, you’ll eventually succeed. The tree will fall, the field will be clean… and your debts will all be paid!
Remember: Avoid borrowing any more money and take 10% of your paycheck for investing and 20% for paying debts. If you discipline yourself and do it until it becomes a habit, you’ll eventually be free from everything you owe.
Imagine the day you no longer worry about your debts since you’ve paid them all back. Wouldn’t that be nice?
Sound too simple to work? All you’ll need is a little disciple and you’ll make it! Bookmark this article and try it for a few months, then tell me how well you did in the comments!
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