Mistakes people make when paying off debt
You should always know how much debt you have in total. If you owe money to anyone for any reason, it is considered debt, including any loans or credit cards that are at 0% interest.
Accepting debt as a normal part of life is a NO NO. It may take some time, and it can be difficult at times, but being debt free is well worth the effort.
If you are in debt, here are some tips to help you get out:
• Establish an Emergency Fund before tackling your debt.
• While consolidating and/or renegotiating terms and paying off debt may put you in a much better financial situation, it’s vital to control your daily spending habits at the same time.
• Take the time to review where every penny of your paycheck is spent each month, and determine ways to cut back so you can live within your means.
• Your intensity should be like a building is burning down and you need to escape. Intensity gets you results!
• The problem isn’t your income, the problem is your mindset. It is not how much you earn, its how much you spend.
• Ignoring your debt means trouble.
• A structured, detailed plan, with actionable steps on will help you reach your goal.
• While the road to financial freedom may seem long at times, a firm commitment to living within your means in order to reach long-term goals will pay off in the end.
• Becoming debt-free and financially secure is possible!
What Kids need to know about money:
Here is a list of the most important items parents need to teach children about money:
• God owns everything – they are stewards
• If you don’t have the money, you can’t buy it. Great video example:https://www.youtube.com/watch?v=QzE76nUSjL8
• The difference between wants and needs
• The cost of debt (paying interest)
• Your financial success is not about how much you earn, it’s about how well you manage what you earn.
• Setting financial goals
• The magic of compound interest
Learn more at CompassCatholic.org
Join the Beans for informative and practical discussions about money: how to earn it, spend it, manage it, give it, save it, invest it, and even how to train our children to be money smart.