Wednesday, July 26, 2006

How To Finish Rich




I still have my feet on the ground, I just wear better shoes.
Oprah Winfrey (1954-)

Let’s talk about something that everyone wants but no one has enough of. No, I am not talking about the number of sexual encounters with Mr. Right. I am talking about the ever-elusive dollar. As the number of Americans in debt continues to increase each year, the need for debt recovery and debt management resources becomes more apparent. This fact makes the beginning of the new fiscal year a perfect time to look at your finances and make changes that will help you get that summer vacation debt off your back.

The first step, make sure you find out what every loan officer, bank, creditor, or potential landlord already knows about you. Take advantage of your free annual credit report. Many of those who have acquired debt assume that since they stop getting past-due credit card statements in the mail that those credit card companies have simply forgotten that you owe money to them. I recently took advantage of this and found out a few things that I have forgotten about.

The next step is to get all of your paper work in one place. Many times, I have tried to organize all of my financial paperwork in hopes that it would prompt me to start making my way out of debt. Of course, this did not happen, because I had no idea what I needed to find and put together. Here is a great place to find a comprehensive list of papers that you should have in one place.

Last but not least, the only way that you are ever going to save money is by making a plan. As Antoine de Saint-Exupery once said, "A goal without a plan is just a wish." Depending on the level of debt that you are in and your financial situation, many different savings and budgeting plans will expedite your travels to financial freedom. I have focused paying off the debt that is costing me the most ( i.e. interest bearing debts) Once those are paid off, then I plan to focus on the debt that I can pay off the fastest.

The longer you delay, the longer it is going to take for you to finish rich!

1 comment:

Anonymous said...

very true. I do a financial analysis at least every week. Look at my bills as well as my debits from various places to make sure that I am prepared. I am not always great at it but I know what is going in and going out. the best thing of all is the fact that I do my very best to pay myself first!