At the present time, we are debt free. It's a great feeling to have some financial debts. In fact, it is said that the first step to save is to get rid of our debts. We are in agreement.Your lifestyle can siphon money faster than the speed at which you earn. A fortiori if you lead a fast life where you are aware of the symbols of status, social image and can spare any time to manage your finances. Such a life puts in a race from perennial to update stuff to follow the latest trends. The result is more debt, the debt and the debt. Credit card debt, auto loans, housing mortgage, loans, insurance and more. Therefore, you are weighed down by a mountain of debt that aspire to it fun life.Experience teaches us that it is possible to escape the stranglehold of debt. The answer is commitment. We were determined to get out of debt, and we stayed on course until we were debt-free.
There were difficulties, but we have does not compromise and has jumped ahead. In the process, we have developed a simple strategy for a life free of debt. We call it TCT - Track compare Trim.TrackTo keep a tab on the cash flow, we recorded each expense (exit) as well as income (inflow). We have divided our outflows into three sections:Fixed - mortgage, insurance premiums, utilities, telephones & Internet, loan paymentsVariable - food, maintenance of cars & gas, household, medicine, travel, charityVarious - entertainment, memberships, hobbies, giftsWhen we started, we used Excel spreadsheets to track our cash flow. Now a day we use QuickBooks Pro.However, it is not necessary to use a recording of cash flow software, you can do so using a cheap paper specifications. We love the little Mantua Moleskine notebooks and use them to record daily expenses. But software is much more powerful and empowers you with the ability to generate a large number of reports useful and views.CompareOnce we started to record our cash flow, weekly added us our spending and compared with our weekly receipts. At the beginning, we were shocked to see the huge difference between our disbursements and affluence. Our spending largely caught up with our income.
But since the beginning of monitoring and comparing the cash flow, we could see where we were at the end of each week. Earlier we would be clueless on where our money went!TrimStep final and most difficult to become free of debt was to cut our expenses. We had implemented monitoring and comparison of our cash flow devices, so we knew where our money goes. Now all we had to do was to eliminate unnecessary expenses and optimize the most needed. We thought of ways to reduce the costs for meals, gas and groceries. We have sold old electronic gadgets recycled shippers, cars transit whenever possible, had haircuts at home and tried many more frugal hacks. We have constantly sought new ways to optimize our needs with creativity and it led to hundreds of dollars in savings per year.Becoming free of debt we did not deprive us of fun.
All we did was to identify where the money was going to (Track), to analyze the inputs and withdrawals (compare) and reduce our expenses to identify our needs and desires (Trim) in. We paid much attention simply in how we spend our hard earned $.In short, we took a very small step at a time and slowly paid our debt each month with great determination. Today, we are debt-free, and it's a great feeling.TST has helped us to prepare to fire (financial independence early retirement). It's not really important that we do not some of the latest electronic gadgets, the hippest car, a fancy linen House and expensive. Long-term, we thought that we would be happier if we had a worry-free life is full of inexpensive pleasures and not on a mountain of unpaid debts. Be debt-free is really beautiful and we can vouch for it!We are eager to hear about your creative ways of debt reduction. Please do not hesitate to leave a comment
There were difficulties, but we have does not compromise and has jumped ahead. In the process, we have developed a simple strategy for a life free of debt. We call it TCT - Track compare Trim.TrackTo keep a tab on the cash flow, we recorded each expense (exit) as well as income (inflow). We have divided our outflows into three sections:Fixed - mortgage, insurance premiums, utilities, telephones & Internet, loan paymentsVariable - food, maintenance of cars & gas, household, medicine, travel, charityVarious - entertainment, memberships, hobbies, giftsWhen we started, we used Excel spreadsheets to track our cash flow. Now a day we use QuickBooks Pro.However, it is not necessary to use a recording of cash flow software, you can do so using a cheap paper specifications. We love the little Mantua Moleskine notebooks and use them to record daily expenses. But software is much more powerful and empowers you with the ability to generate a large number of reports useful and views.CompareOnce we started to record our cash flow, weekly added us our spending and compared with our weekly receipts. At the beginning, we were shocked to see the huge difference between our disbursements and affluence. Our spending largely caught up with our income.
But since the beginning of monitoring and comparing the cash flow, we could see where we were at the end of each week. Earlier we would be clueless on where our money went!TrimStep final and most difficult to become free of debt was to cut our expenses. We had implemented monitoring and comparison of our cash flow devices, so we knew where our money goes. Now all we had to do was to eliminate unnecessary expenses and optimize the most needed. We thought of ways to reduce the costs for meals, gas and groceries. We have sold old electronic gadgets recycled shippers, cars transit whenever possible, had haircuts at home and tried many more frugal hacks. We have constantly sought new ways to optimize our needs with creativity and it led to hundreds of dollars in savings per year.Becoming free of debt we did not deprive us of fun.
All we did was to identify where the money was going to (Track), to analyze the inputs and withdrawals (compare) and reduce our expenses to identify our needs and desires (Trim) in. We paid much attention simply in how we spend our hard earned $.In short, we took a very small step at a time and slowly paid our debt each month with great determination. Today, we are debt-free, and it's a great feeling.TST has helped us to prepare to fire (financial independence early retirement). It's not really important that we do not some of the latest electronic gadgets, the hippest car, a fancy linen House and expensive. Long-term, we thought that we would be happier if we had a worry-free life is full of inexpensive pleasures and not on a mountain of unpaid debts. Be debt-free is really beautiful and we can vouch for it!We are eager to hear about your creative ways of debt reduction. Please do not hesitate to leave a comment
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