Home » Debt Elimination » KYM Special Series: The Debt Factor – Cash Is King! So Turn Off The Credit Machine

KYM Special Series: The Debt Factor – Cash Is King! So Turn Off The Credit Machine

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Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

 

Know Your Money
Wednesday – May 7, 2014

Knowing Your Personal Finances
The Debt Factor:  Cash Is King! So Turn Off The Credit Machine
By Donell Edwards

 

Bad decisions, lack of willpower, seeking prestige, impulse buying, lack of planning, are all factors that contribute to getting bogged down in debt.  However, the greatest culprit is the credit machine.  This colossus that was given birth by the commercial system and is fed and maintained by all of us is the major reason so many find themselves burdened with what seems like, and in some instances is, insurmountable debt.  How do we fix this problem?  There is no quick remedy, but we are going to provide you with a starting point.

First, turn off the credit machine and stop using credit.  I know that you may be in a position where you feel that it is impossible for you to survive without using your credit cards until your cash flow improves.  That is why we emphasize learning to have willpower, and being willing to make sacrifices.  It takes willpower and sacrifice to forgo some of the things that you plan to do, purchasing some of the things you plan to buy, and enjoying some of the things that you now enjoy, so that you can pay down your existing credit, and pay cash for everything else that you MUST buy.

 

 

Credit Card Locked

 

 

Cash is king!  Converting from a credit budget to a cash budget may not be easy, but it will help you to progressively whittle down your debt, while at the same time teach you to have the discipline to spend more wisely, because unlike with credit cards, if you don’t have the cash available you can’t spend anything.  So, you learn to do without anything that is not essential.   This is just one of the many advantages of using a cash budget.  Learn more about using a cash spending plan in today’s Must Read, 10 Reasons to Use A Cash-Only Spending Plan.

Another way to get out of debt is to find ways to earn more.  In our other Must Read for today from Money$martGuides, writer Jon Dulin discusses the importance of recognizing your greatest asset, yourself.  Mr. Dulin discusses many ways that we are all assets to ourselves, and how we can become greater assets.  This is really a must read for anyone who is serious about wanting to improve their financial situation and eliminate their debt.

Here are some other ways to capitalize on your greatest asset, yourself, and earn more money:

Check with your company’s Human Resource Department to investigate your opportunities for career advancement.

Find and attend career development workshops in your area.  Sometimes your employer will pay for these, or community colleges or government agencies will offer them for free or for a very minimal fee.

Read trade publications related to your specific position and industry, and keep up with the latest techniques, procedures, and practices.  Become the company expert in your area.  Get noticed.

Consider going to college, or going back to college for additional education.  There are also some great and reputable online colleges if time and scheduling is a consideration.  See if your employer offers tuition assistance to lessen the cost.

Utilize the skills and experience you already have to create additional income streams.  There are lots of things that can generate additional income such as becoming a virtual assistant (VA).  If you have experience or training for bookkeeping, doing online research, data entry, developing PowerPoint presentations, managing email, coordinating social tasks, conducting travel research, scheduling and managing clients’ calendars, conducting industry research to keep clients’ up to date, and much more, you may be able to earn a considerable second income as a virtual assistant.  

If you are interested in learning more about starting a virtual assistant business, read the article,  Starting A Virtual Assistant Business , from Entrepreneur online.  Also, get additional information from The Virtual Assistant Networking Group, or from The International Virtual Assistants Association.  If you have skills and experience, becoming a virtual assistant may open doors for you to increase your income and help reduce your debt.  It may also help you discover a new found love for getting paid for doing something you enjoy.  Of course there are many other ways to create additional income streams, this is just one that provides opportunities for people with a wide range of experience and abilities.  We will dedicate a post to discovering ways to generate additional income streams in coming weeks.

So, getting back to our main discussion for today, recognize the need to turn off the credit machine and use a cash budget, and also to find ways to utilize your greatest resource, yourself, so that you can earn more.   

 

Must Reads:

10 Reasons to Use A Cash-Only Spending Plan

http://ht.ly/uZyDX

 

You Are Your Greatest Asset

http://www.moneysmartguides.com/you-are-your-greatest-asset

 

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to comments@knowyourmoneyglobal.com.

 

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Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

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