For most of us, the problem starts at school. So if we don’t learn to manage money at home, where will you acquire these skills?
Before the introduction of credit cards (Practical Guide To Eliminate Credit Card Debt) generally, people would have to save for the things they wanted to buy. We now live in a, “buy now pay later” society.
Too Much Debt
As a global society we are carrying too much debt, the average household debt in the UK is around £60k. The average debt for an individual is around £30k. We need to have an indication of how debt we are carrying. We buy multiple things we don’t need and can’t afford. Many of us today believe we can’t live without credit cards. In the UK many of us are living in homes we can’t afford.
We have to change the way we look at debt and create a situation where we are living off the income we earn and are not spending on credit. We need to change our mindset to the way we look at money and formulate strategies to deal with this issue and move forward. A mindset is a frame of mind, a way of thinking that forms the habits we have.
Refer to the article on (COMING SOON – How to Manage Your Salary)
We need to reduce our expenditure and attempt to find some breathing space in our budget so that we can start to reduce our debt and put ourselves in scenarios where we are not creating new debt.
Additional Income
As part of the process, consider ways we can bring in additional income. For me, my second job was learning how to manage my finances effectively, so I spent a significant amount of my own time reading books on how to manage money and debt. Also, look to see if you are able to get a promotion or salary increase at work. An alternative is to see if you can search for a better job.
If you are not already on LinkedIn, sign up to it, it is a fantastic place to find employment. All the large employers are on Linkedin. In many instances, you apply directly to the employer. Multiple jobs are also available with employment agencies via LinkedIn
COMING SOON – HOW TO FIND A BETTER JOB
Also, see if you have any hobbies(or interest) that you can use to generate an income. I currently invest in property and I’ve created this blog about property, money management, and learning techniques. I enjoy reading and learning about all three subjects. I started to learn about money management because of the amount of debt I was carrying.
Below is an affiliate link, if you purchase this book I will get a commission.
My favourite book on general money manage is:
NEXT STEPS
Formulate a strategy to reduce and clear your debts.
Explore ways to generate an additional income, like blogging or getting a better job.
Are we on the path to learning strategies to eliminate our debt?