Why living frugal can bring you ever lasting wealth

Can being frugal give you the way to riches and wealth?

The way you can achieve being a wealthy person or family is that you create value for this world in forms of services or products to the people. But to keep your wealth or income is to become frugal.

Once you have created this value and you receive your harvest, then you should save a portion of this harvest. Once you save a portion of your harvest you can plant the seeds to grow more harvest in time. This is called compound interest.

The harvest is the income you receive for providing value to the Marketplace. Your boss, your company or clients that you serve through your own business.

With that harvest you have to pay for your expenses that you occur like things you have to pay to provide a ‘good’ life for yourself and your family. If you have a business then a portion of the harvest goes to the business expenses to further provide and expand you empire to a greater degree.

After paying all the necessary bills you have with the harvest. You have the option to spend money on things you would like to buy. The problem with most people is that they go way overboard on the spending part of the harvest. They don’t focus or even thinking about planting seeds for the future.

Planting seeds is highly important for building a wealthy future. If you don’t plant seeds you will have nothing in the future. If all you do spend, spend and spend you will destroy the opportunity to reward yourself with freedom that you deserve.

Grow that money tree!

Money tree

So what is the plan?

The way to get a better grip on your future is to become more frugal.

So

DON’T WASTE YOUR MONEY.

A lot of people think being frugal is something of the past, something from an era where there was not a lot of food and work was impossible to find. A situation like the great depression in 1929.

But being frugal has nothing to do with that, sure a lot of old people still have the same mindset because their parents or themselves have experienced major poverty in their life time and that is completely understandable. But the issue with having a ‘broke’ mindset is that it will control your entire life.

I personally believe that thinking the frugal way is that you want the most out of something. That things you buy with your money will last forever so you don’t have to keep investing money in such things.

If you search a coffee maker, find one that is reliable and brings a lot of value for the money you put into that thing. In that way it is worth the money you buy it for. You don’t want to be buying a coffee maker every single month because of a shitty design. Wasting your time and your money away.

You should always search good items if you want to buy something and keep in mind that you need to keep it untill it dies. Once you decide what you want to buy and you want to keep it forever. Then your mindset will be different. You wont just buy something because you will see it. You will wait before buying and researching different kind of items for which one is the best fit for you.

The best bang for the buck.

The problem is that you can go overboard with the idea that more expensive is always better. You can buy yourself a $150.000 BMW but it will get a flat tire the same way a BMW for $5.000 would have. So don’t use that excuse to buy something very expensive. I have personal experience with this guy at work, he has this crazy expensive car to show off and has a lot of problems, it’s always in the shop. The car I own is way cheaper and my time is more on the road then in the freaking garage paying shit for a shit car, wasting money away.

Don’t go into a new car dealer and buy yourself a new car just because you had some maintenance with your older car. You will never be cheaper with a new car. For the money a new car depreciate, you can rebuild your entire car and have some money left over to give to people and have some new friends.

You want to find the perfect time where something has depreciated to a point that you can buy it on a cheap price and the product has a lot of years left in it.

An example.

Say you are looking for a new car. You want a nice and reliable one. The reason you want to upgrade is because first off you have the money set aside from your emergency fund and paid off your debt.

Second reason is you car is old, rusty, not very comfortable and breaking down on about every corner right now.

My suggestion would be to look for a car that has had the biggest depreciation hit, that means looking for a car 3 – 5 years old with low miles. Take in consideration that the higher the cost of the vehicle, the more it will depreciate.

A Kia rio from 2018 new is around : €19.995.

A year later with around 10.000 miles its worth : €15.000.

If you take a look for a Kia Rio that is 3 – 4 years old it will take a big step from that Original price of €19.995.

When we take one from 2013 with around 40.000 miles you have to pay : €8.900 for the same car that is 5 years older.

Thats a depreciation hit of -€11.095, that spread over 5 years is -€2.219 each year. A lot of people don’t even have that money in the bank. How retarded are you if you accept to let that money flush down the toilet. And this car doesn’t even depreciate that fast.

Let alone if you buy that Mercedes or beamer.

ONLY BUY IT IF YOU CAN REALLY AFFORD IT!

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How to determine what you can afford?

So how can you determine how you can afford something? Like a car, a house or just a new couch?

How much to spend on a house?

For a house it is very easy but hard to adjust. I would suggest 20 – 30% of your ‘net’ pay. Because people are way to easy to buy a house that is very high in monthly payments. People are manipulated in thinking paying a lot for your house is a safe investment and that you need to buy as much housing as you can. Because that way you can live very nice and have something for the future.

But most people are ‘broke’ and don’t have money left over for things they really want to do in their lives. If you really love to have a nice house, want to spend a majority of you income on it then maximize your spending to 40% your net pay. This way you can buy your dream house, but don’t expect to do a lot of traveling and buying nice cars because it’s a choice you have made.

So if you make $3.000 / month, spend $1.200 / month on housing. What I personally think is fucking crazy. I make around that money a month and spend like $400 on housing. I would rather suggest you pay no more than 25% off your net income on housing. Putting the limit on $750 / month.

It’s all about priorities. My priority is freedom and positive cash flow brings that freedom.

What is your priority?

Being frugal or a house?

What about a car?

We’ll most people get a car payment, its understandable if you don’t have any money in the bank. The average person doesn’t even have $1.000 for an emergency, so how the hell can you come up with an extra $20.000 for a new car?

You cant and that’s why you get a car payment.

How much is the max you pay on a car?

We’ll we described above that a car depreciate like crazy and if you want to build up some money you have to really think drastically about a car purchase.

Do you love cars and you don’t bother to pay a lot for it? Sure you can splurge a little bit once you have your other priorities at place like some savings for when shit hits the fan.

I really love cars but I would suggest that you wont pay for a car that is more then 25% of your net pay.

Lets say you make $25.000 / year that means the maximum car you can afford is $6.250.

Making $50.000 / year? Means you’re not going to the beamer dealer for a brand new 5 series, you are going to be content with a used 3 series for $12.500.

$100.000 / year ? Well now you are going into the nicer cars area, used Mercedes or a new car. Putting the purchase price at around $25.000.

This way you can enjoy nice cars, be frugal in your ways and still have some money left over for other parts in your life.

Why do I suggest no more than 25% of your net income? Because the car is going hill fast value wise and if you splurge $40.000 on a car, your money that you worked for is going to be worth nothing in a couple of years.

Using a % of your income is a great way to focus on creating more income, you want a nicer car? Well find a way to grow your income so you ‘may’ afford that dream car.

What is my cars value regarding to my income?

More like 7% because the car I own at the moment depreciated very fast. The reason for this was extra ‘diesel’ hate created by our governments. Thanks for that!

So best thing to do is to keep driving this hunk of junk until it destroys itself.

The only thing you have to remember after getting that nice car is to drive it untill the wheels fall off. if your out buying such a car every single year, you’re gonna be fucking broke.

And remember pay cash.

What is your priority?

Being frugal or a car?

What about stuff like furniture?

Some people really like having a nice interior in their house and I can understand that you love a nice couch. Nothing wrong with that.

But having too much and spending too much on ‘stuff’ is a great way to be forever broke. You can always buy a new and nicer thing, that’s the entire problem with consumerism.

Sure you can like it but the enjoyment of that item can wear off quite quickly. If you want something, you need to wait at least a month before buying. This way you can save more and really think about if you ‘really’ want it. If this is the case you may buy it, because you will keep the item that much longer.

If you buy on impulse your excitement wears of in like a week.

Delayed gratification gives you more contentment from the item you want to buy, because you will always know how long you waited for that particular item.

So how much should you spend on that?

I would suggest that you put 10% off your net income a side and save it to buy something you like. Spend that 10% however you like, its something you reward yourself with after saving month after month for a long time. Lets say you make $3.000 / month and that item is $600?

Put that 10% Aka $300 / month for 2 months . Once those 2 months are over you got your money and 2 months thinking if you still want the item. That’s real delayed gratification.

And remember pay cash.

What is your priority?

Being frugal or stuff?

What about just plain fun money?

I put a personal spending limit for 10% of my net income. You make $3.000 / month? We’ll spend no more then $300 a month on fun stuff. Going out to drink with friends, taking a day off for the beach or going out for diner with your girl.

You can spend money very quickly eating out or drinking. That’s why I recommend getting that $300 out of the bank and put in a box in your house.  Every week you take out some of that money, like $75 and you can use it however you see fit. Is the $75 gone that week? Gotta wait until next week until you can go out again.

This way you can enjoy your money, learn to grow your income more for more fun money and not spend crazy on just dumb shit like 66 beers every month.

And remember pay cash.

What is your priority?

Being frugal or beers?

How this effects your frugality.

So how is this going to effect your thoughts and frugality?

We’ll once you’re in the mindset that you set up yourself budget wise in what you really want and you save on the rest, you’re frugal. You are focussing yourself on what you love to spend on and things you don’t care about have no need for spending.

If you want to drink & go out a lot and you spend only 20% off your income on housing, then you can do that.

Once you really think about where you want to spend your money and you save the rest, invest those in seeds and make it grow, you can achieve being a wealthy person.

It’s very simple :

Live below your means!

See you later,

Uuldriks Financial.

 

Is saving the way to wealth?

Saving your money and putting it in a sock or letting it grow in your bank account, is that really a way to find wealth and freedom?

We’ll lets find out.

What is saving?

Saving money is conserving a percentage of money or ‘income’ for a date in the future. You don’t spend it now, so you can use it at a later time.

The most common reason why people save money is to spend on something like a car or a house. Maybe a vacation or 2. And that’s fine.

But what a lot of people forget is that the money we currently or used to have are all currency’s used to trade for something you want.

Before we had money we used the barter system to trade things with Each other, but its proven that this way was way harder than accepting 1 currency that we all can use to trade things with. So a smart person, Lydia’s king Alyattes minted the first coins and later the chinese people created paper money. Because they started using ‘currency’ and left the barter system behind, trading began to easily grow around their country’s.

The problem with currency is that the value it contains is created by the trust it has given by the people. Example: If everybody trades their dollars for Yen because China takes over the entire world, your dollars will lose all their value. Bye Bye to your pile of cash under your matres. You saved your entire life for that money and now its all useless, That’s a fucked up situation.

So the reason we save our money is to exchange it for something, specifically something that ‘grows’ in value or provides an income.

They call them Assets. Meaning Stocks, Real estate, flipping cars, buying old cars and keeping them to increase the value. Other assets are businesses or royalties from creating books & video’s.

A huge Asset is your time and the value you bring with your time for other people. You can get paid sincerely for it.

If you don’t invest your money it will get worthless like the example above. There is a silent destroyer of your hard earned money and that is ‘Inflation’. Inflation is the rising costs of goods and services that you buy because the value your money is going down. Take a look at your monthly bills every year, there will be a steady increase because the companies that offer their services want to keep their profits at a good rate. The inflation Rate means how much inflation increases in percentage per year.

Most times your boss ain’t as nice for your salary to increase at the correct inflation rate and you are than getting behind on everything. Keep building up inflation over 50 years and most people who didn’t focus on this problem will begin to lack funds to even buy cheap things in life. People will complain about gas for their car, driving to other ‘states’ or here in Europe to different country’s because it’s just a few cents cheaper there. This is a shit show on wheels man, be carefull about inflation.

You don’t want to be worrying about gas becoming $10 cents more expensive next year.

The average inflation rate for the United States from 1913 untill 2018 is 3.15 % per year. So this means that the average savings balance  $33,766,49 is losing $1.063,64 of value every year. Poef, just gone. You could spend it on something nice right? Sure you do.

Well lets say you get that money that’s stashed under your matres and put it safely in a bank savings account. One of the best interest rates we can find is the Ally bank savings account wich provides 1,85% annually. This interest rate would give you $624,68 year, meaning with that kind of inflation rate you are netting -$438,96.

Inflation rate from 1910 untill 2010: (Source wikimedia).

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That’s not a great way to grow your money. You will never get rich saving your way to a million bucks. Banks are in the business of making money and not losing it, so the interest rate you will receive will never exceed the rate your bank will ‘loan’ you money.

You will have to find an other way to grow your money to the status of wealth.

Should you have some money in your bank and in your wallet? Sure, you always need some money incase shit hits the fan. Your car could break down or you can experience a layoff or 2 in the future and you will need to be prepared for these nasty situations.

I would say to at least save 6 months of your monthly expenses and if you’re a 1 income family or you can’t find a job easily increase that amount to 12 months of savings.

If you spend $2.000 a month on your ‘recurring’ expenses, things like food and housing that would be like $12.000 – $24.000 in your savings account. Maybe you can save some money on things like car gas and spending in the personal area if you are out of a job, meaning you can use your saved money for a longer time.

Once you have reached your savings goal to de-stressing your family’s financial situation you can focus on the bigger goal and that means creating financial independence for yourself. Meaning you can do whatever the fuck you want and never having to stress about finances again.

Be sure to pay any ‘bad’ debt off before you start your journey to saving 6 – 12 months of expenses, because you sure ain’t gonna get more of a return then your credit card rate of 18%. Pay that shit off before you start anything else.

You want to save and pay off debt? That’s useless man, when you pay off a credit card and an emergency comes your way without a savings account, you can still get money from your credit card to pay for the emergency. The chance that it will happen is also very slim. Paying off car payments or personal loans is in a different category as these loans usually don’t let you take money from it if you need the money. So be sure to at least get $1.000 in your bank account for nasty situations like a flat tire on your car.

Once you pay off your bad debt and achieved your savings goal. You can focus the rest of the money on investing to grow that money.

Most people invest in :

  • The stock market, be it 1 stock or multiple stocks like an index fund. The index fund is one of the best and safest ways to grow your money over a long time. Long term vision is required for this. You won’t get rich fast this way. The index fund will follow the DOW or S&P500 and give you an average 9,7% rate per year. Beating inflation easily. These returns will vary every year. From -5% to 13% a year.
  • The real estate market, investing in a single family home or multiple appartement building. The most common way is putting a down payment of 20% and borrowing the rest from a bank. Using that money to buy a home and renting it out for more than the costs of the mortgage and maintenance per month. Netting you a profit and a cashflow. Cash flow is one of the best things you can get from investing. The average profits a year are around the 10%.
  • Building a business, investing in a business or building your own from scratch. Takes a lot of balls, patience and time for you to build a succesful business. So it’s not for everybody but you can make a lot of money once you achieve success. But you can also fail, if you quit…. If you are a hard worker and have good ideas why not go your own way? Working at a job is not rewarding for a person that works hard, you will never get richly rewarded for your actions. Because the boss man will always need to earn more than you to profit, remember that.

 

These are some great ways to grow your money, but you will first need to learn to save your money. That’s the first step to financial greatness. If you are still living paycheck to paycheck or deeply in debt you will first need to get out of that mindset and situation. The current savings rate for the US is a meager 4% a month. That’s just to little, no wonder the average person can’t get ahead. it will take you more than 45 years to just save 1 year of living expenses. By the time you will retire, you can be really proud of yourself that you finally achieved your savings goal of 12 months expenses. And now you can live 1 year from savings in retirement and then you will have to get a new job.

That’s a no go, don’t you agree?

My personal savings rate is currently 20 – 40% depending on how much I earn each month. But I used to save 0% like everybody else and it is very stressing that you ain’t got no money to pay bills once you are in a dire situation. What I did is cut all the unnecessary bullshit like a big house, car payments and useless junk. Sold it all and got my expenses as low as I could. Housing payment under 20%, no car payments and no new iPhones.

It’s all about priority. Some people want the latest stuff and if you still do then get rid of that shit, because it’s costing you a lot of money and your future. Do you really want to be stressing about every financial decision and eating dog food in your 70s? Not me, I rather live a time without and enjoy 10x more later, than living like trash later on.

When you can save a lot of money monthly you can also use it for different things. Like buying a nice car to enjoy and driving it for a long time. Taking your family on a vacation without worrying about the cost. Saving for a nice house and paying for it in cash.

Be sure to remember this:

”Cash flow that brings you money right into your bank, without being constrained by monthly expenses, is what brings inner peace and financial enjoyment”

Once you have money that is free from recurring expenses like car payments or other debt payments you can feel freedom.

Freedom from working untill you die because you can’t retire.

Freedom from stressing about how to pay your bills every month.

Freedom to do whatever the fuck you want.

How would you feel if you don’t have to pay your housing payment anymore? Taking the average payment of around $1.033 a month, you will have an extra $1.033 every month for yourself to spend or to invest.

This is the difference between the poor mindset and the wealthy mindset. Focus on creating ‘net’ cashflow right into you bank account. So you can create more cash flow, untill you have enough to live off, then you can live life wealthy and free. No more Job, No more stress and no more working for the ‘man’.

So is saving the way to wealth?

Sure, in a way it is.

Savings rate is very linked to having wealth in the long term.  If you don’t save your money, you will always be poor. Once you saved your money, invest it like the rich or get killed by inflation. Be sure to out perform inflation rate, keep your eyes on it every year so you can decide what goals you need to create in your investing strategy. The most common way is the stock market, netting you ‘after’ inflation, around 4 – 6 %.

This is the way to wealth, by saving and investing.

Be sure to check out the book: The Richest Man In Babylon, writing by George S.  Clason. Where the most idea’s for building wealth come from and this book will teach you how to make money, keep your money and investing it to grow a wealthy future everybody desires.

Keep stacking that paper, watering it and letting it grow until your nice money tree arrives.

Until later,

Uuldriks Financial.

 

 

 

What is Minimalism?

Man,

Lets talk a little about minimalism shall we?

We all like stuff. We love our iPhones… we like our nice cars… and the houses o man it is al beautiful.

The problem is, that we get to attached to them.

There are people called hoarders. They take all that stuff and put it at a place they don’t even know where. And it all stockpiles up like nuclear weapons were stockpiled during the cold war.

how-to-find-preppers-in-your-area-fb

I tell you what, I rather be hoarding cash then have 10 stocks off iPad or 100 cans of dried food incase my house get bombed.

At least I can do something with my cash. You can invest that shit.

Anyway, the problem with carrying too much stuff is, it’s always there… You are thinking about it, it costs money and stressing about where to put it. Ah damn, I need another garage for this pile of shit I just bought, you say to yourself. Once you have another garage, you need to pay for that aswell. Another $100 bucks away every month just to hoard your stuff.

Well quit it, what the hell do you need with 2938 cds or 33 pants anyway? Sell it, give it or trash it. And then enjoy your freedom from all this ‘stuff’.

There is a group or cult people talk about and it is called old fashioned Minimalism.

I really love minimalism, all though some people take it way far. Living just with a mattress in a tent is not the idea I have regarding minimalism.

Hell, if you want to do that. Be my guest I don’t give a fuck.

But personally I also love the finer things in life. The idea is minimize to maximize. I understand that you want a nice house or be driving a BMW, and that is cool.

But learn to save on stuff or things you don’t like. If you can save yourself $50 every month because you change from a 5mb/sec to a 1mb/sec internet, then do it.

Just keep your old cell Phone that is just working fine for $40 and save yourself $1.000 for not changing to a ‘new’ Phone. Crazy how expensive these things are nowadays. By saving that kind of money, you can save yourself half a month time at work. So would you rather work or don’t spend that money for junk and save yourself time?

How much is your time worth to you?

You need to over think every purchase of trading that money for work. Work is not bad, there are parts of it everyone enjoys. But you ain’t wanna be trading that time meaningless to pay for your shit every month.

Lets say you make $20/Hour , you work 8 hours so you’ll be getting $160 a day. Then the Tax man is gonna get hes share, that is around $40 bucks in my country. So that means your netting an average of $15/Hour.

After a long week of working hard and hustling with your boss man, you get $600 on your account. Gotta pay them bills and car payments right! But your o so tired from working and don’t wanna be cooking all day, so you go to a restaurant with your partner.  After paying $100 for eating out, you think to yourself now we are here in town, we can walk a little bit and check out the stores.

So you and your girl go the electronic store and she says what a nice Iphone. I would buy it if I was you! And you are over thinking because its $1.033 this time. But what the hell man, she said it wasnt a bad idea. So you get a conformation to buy it and your heart is saying buy it. Gotta enjoy life you say!

Later that night you realized that you only had $300 after paying the bills. And you still went out to pay $1.133, netting you -$833 that week.

For only that week you have to work 3 more weeks to finally pay it off. You also believe that is dumb? Sure it is, if you want to go eating out with your girlfriend and enjoy that. Getting value out of a meal together once a week. Then sure!

It’s all about trade offs and what you really love to pay for. Personally I would take the dining out experience over a new IPhone everyday. Especially with prices like nowadays. Once you have a lot of money and you want to buy that IPhone without hurting your finances, you can buy it way easier and without stress.

Once your out of the zoo that is materialism, you can really set yourself up to be a unique ‘you’. Your friends are stilling buying all that shit what the marketing monster sells, but you are as free as a bird. When you cut your attachment to stuff, you have created freedom.

The money that you save from all these things the world has the offer, you can use it for what really fuels your fire on this planet. What do you really like? Don’t forget that what you really like can change in time, with the seasons. Summer & Winter. Night & Day. Hot & Cold. Up & Down.

  • If you are in your 20’s saving and buying experiences like traveling can be high on the list. (Personally we are in this stage).
  • Once you reach the end of the 20’s and going in your 30’s maybe you want to buy a house and settle down for a family.
  • After that you will be busy getting your legacy up and going, this going forward until your retirement age.
  • When you enter the age where your legs are too sloppy to move, then traveling we’ll get harder. Sure you have all the time in the world in retirement, but most likely your health won’t agree with your choices of Climbing mountains.

 

No disregard to elderly people, some of them have body’s and health a lot of young people can be jalouse of.

It’s all about freedom of choice. That is what money is for, fueling what you really want in life.

At this current moment my girlfriend and I really want to travel more, learn more from different kind of country’s, cultures and seeing nature at its finest. The second goal is building an income/business outside of our day jobs so we can have more freedom to do so. Saving a lot of money on our expenses and not buying crap every time we are in town.

On the other side we are also saving to buy a small house so we can save on rent, rent is very high here and we are off the believe that we are just throwing that money away every month. Renting is good, if you want to stay on a very short time frame. But we are staying here for a little while.

This is the reason we like Minimalism, we want to use our Money for things we really value.

We don’t value ‘stuff’ like a new Phone, new car or a new house. That doesn’t mean we don’t like it. A new car is very nice to drive and the features they provide are great! But I just can imagine paying so much money for something and a year later the value of that drops like a rock. It makes me ‘Uncomfortable’, that is what important. If you feel Uncomfortable once you want to buy something or you already bought it and you keep thinking about it, stressing you out. Then that’s your gut saying you made a wrong decision. You need to love the decision and have thought it over if it would bring you long-term happiness.

Do you save a lot of money on a House and you think one yearly vacation is enough? Hell, then that dream car you just bought is fine man. Enjoy it !

Like Apple and you ain’t paying that much in rent every month so you can stack money? Sure buy the new Phone every year.

Love a nice house where your family can comfortable live life and got a beater old car just for getting to work? Sure enjoy the nice house where you can rest and enjoy your family after work.

It’s all about choice in your life, that’s where the money is for.

Remember that.

Until next time.

Uuldriks Financial.

 

 

 

 

 

 

 

Are you in debt?

Are you in debt ?

A lot of people today are in debt, around 80% of people are in debt to somebody.

A big percentage of that debt is of course mortgage debt.

Mortgage debt is one of the debts I can understand, if you take a small mortgage and don’t spend more than 20% of your gross pay on housing than you got yourself some reasonable housing. Other than most people who are drowning in housing debt.

Our own housing payment is currently under the 20% I recommend, more like 11%, you can believe me when I say I have no stress regarding housing.

I once had a rental that cost around 30% of my monthly NET income, and even then I was stressedI just don’t like giving other people my fucking money.

Our article on housing debt Do you live for your house?

The rest of debt is student loans, credit cards, car payments and medical debt which I believe is one of the worst. People get sick and get debt to pay those bills, but every month you have to repay those bills you get a reminder of that terrible time again, again and again. Then you go to work to pay those medical bills, while there is a great chance the work itself created the sickness or accident.

Thats a nasty situation you got yourself in.

Debt is never good and you should get out as quickly, debt will hold any man stuck in his situation. I know the feeling myself.

Been there, Done that.

I thought it was so easy to get a ‘new’ car and got myself a beautiful thing called a Car payment. And what a mistake that was. Check out the idiocy that are Car payments

The feeling of having debt is the feeling of walking around with an iron ball stuck on your foot, you know what kind of one…. they also use it at work camps to keep you from escaping. Well that says enough.

The debt that nice banker got for you looks like a nice present to give. So you can easily afford everything, looks like they know how to sell it at a great rate, ‘you don’t have to pay 5.000 now, just 66,45 every month for 88 years’ .

Once you write down at the dotted line, you sold your soul to the devil, the ‘Slave master’ and now you are his Slave. And work 50 years for that shit called debt.

Well fuck that, doesn’t really sound like a great deal after all right?

Being a slave is the biggest misery some one can have, because it is sneaking into your life. The problem with debt today the day is that it is accepted in our culture. You keep paying it every month and you are thinking to yourself where the hell is all my money going.

You are making some banker rich. Because you keep paying those suckers, well I must say, if you keep yourself in debt… then you are the sucker. The banker is laughing all the way to his bank account, counting the 19% return he gets every month from your credit card. The average credit card debt is now $9.333 , that’s gonna be $147,77 every month of interest. That money is just gone man, gone forever out of your pocket.

And you keep slaving away your time away at some shit job. Just because you can pay them every, single, month.

You need to get rid of that shit man, you need yourself some freedom to do whatever you like. You gotta be going your own way. And your debt is getting in the way to make that even possible. Every time you want to make a decision for yourself or your family, you will always be thinking about that debt. And that’s why its holding you back like a prisoner in a jail cell.

Want to go on a cruise? No, daddy gotta work because them bills ain’t paying themselves.

Want to chill out and spend more hours with your family? Nope, you gotta make them hours count with your nice people at work because the boss need them hours too you know.

Just want to sit on a bench and sleep al day? No can do, because you are a damn debt fool.

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Anyway, the debt game is what the current system is all about. Civilization, The machine, The matrix, The empire or whatever the fuck you call it. They are making the system like this so you get stuck into it.

Once you start going to school they get you with credit card and student loans, because you need to be as hip as the other kids. You want that new flashy Phone, go out of state, live in your own place without ever going to work after school. But you know what? Those bills are stacking upon each other and once you get to work you start with a negative net worth.

Costing 1 – 3 years of your life, depending on how much debt you have. Don’t even get me started if you have more then $100.000 debt and your annual income is under $50.000. Then take out half a decade just to pay school back. Holy shit you really want that?

Once you get out of school, you still need to impress other people right? So you want a nice car and house, bringing your monthly expenses up to or over your income. Then you’re in a situation that stops you from paying back debt, working untill you are death.

If you keep going further in that situation you will become Bankrupt, you don’t want that, that will be going after you your entire life and sets you back at least 10 years of you life if it ain’t more.

Now that you know in what kind of situation you are, how are you gonna get out of that hole?

Fill it up with cold hard cash.

 

How to get out of debt

 

  • First: check what kind of debt you have and to whom you own it, then write it all on a paper. No, not on the computer you are watching this with, write it with Pen and Paper. There is something about pen and paper that gets you more going, like you are feeling that pain going off on that paper. So DO IT.
  • Second: write Lowest amount up and go down as the amount of money grows. Don’t mind the interest rate, just the amount of $.
  • Third: start looking where you can save some money, Gas & Electric, Groceries, Biking more, Sell your stupid house and move closer to work, in a cheaper house. Sell your expensive car and get a cheap, good gas mileage car (Beater Toyota or Nissan).  Everytime you save money use it to pay off that debt.
  • Fourth: once you saved as much as possible, start working more on your job if that is possible. Aint it possible or are you working 60 hours a week? Then try to start a side business, create an idea where you can make some money without a huge investment cause you ain’t got no dough to go.
  • Fifth: you are making more money then your expenses and using that cashflow to repay debt. Your now getting out of the ‘hole’ great, congrats on your first steps to a bright future.
  • Six: Once you pay 1 debt off, you use that money that you pay on the next debt. This is the snowballing way of paying off debt. Also known as the Ramsey way, he is a real hero regarding getting out of debt. Check out his site Dave Ramsey

 

After doing these 6 things you are on your way to getting out of debt. You’re a real hero that you are going to change your family’s future. Stay believing in yourself and you will get there, whatever you think with action added, you will attract.

Getting out of debt is mostly psychological, its biting you and you we’ll be thinking that all the money you use to pay of the debt is going nowhere, it’s just gone. And that is what is making it hard. But remember that the money you use to pay off debt, is saving you money. Saving you from paying ‘bills’ every month and not to forget all that interest you are saving.

Once you are out of debt, you can use your income to create a big legacy for yourself. You have the freedom to do whatever you want.

Start a business ?

Go on holiday a few times a year?

Save for your dream house?

Save for your dream car?

You can all do that ,

Once you are out of Debt.

 

Until next time,

Uuldriks Financial.

 

How to achieve Freedom

Freedom,

what does that mean for you?

Does that mean having a large housing payment to live in your enormous house on the mountain, overviewing Beverly Hills?

Does that mean having a big car payment so you can enjoy your new and depreciating car that you drive everyday to work, to impress your co workers?

Does that mean that you only take 1 holiday per year with your family because after a year of paying the bills there is nothing left over?

Does that mean that you work every week 60 – 80 hours to keep up with your bills and the Joneses that are stockpiled up to their eye balls into debt?

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Freedom, what it means for me?

It does mean having a small housing payment so I don’t live for my damn house and can save for my Freedom.

It does mean paying cash for a damn used car so there is little depreciation and you don’t have to work to pay an extra $500 every month. So you can put that $500 dollars a month to work for your Freedom.

It does mean having the monthly cashflow surplus so you can take yourself and your family more on holiday, so you can enjoy your damn life and your Freedom.

It does mean that you don’t have to slave your life away for a boss that doesn’t even appreciate you. Cut your work hours in half and take your Freedom to do whatever you want with the remaining hours, like building your hobby into a business.

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Once you have your freedom, you can buy whatever the fuck you want.

Cash is king, debt is dumb.

So stack that paper and enjoy your Freedom.

Until next time,

Uuldriks Financial.