Wealth Building Lesson From A Mentor

Being in debt and being indebted is surely not an ingenious way to get rich.  A good recipe for wealth building is first getting rid of your indebtedness and staying out of debt. An arduous task in these days of materialism. However you could achieve these if you follow the advice of my mentor. He is one who has experienced it all and is in a better position to inform and educate. Hope you enjoy reading this article and learn from it as much as I did. Happy reading.

- Adekunle Agbaje.

 

How to Get Out of Debt Fast

By Mark Morgan Ford

Do you spend more than you make? I used to.

When I started working as an editor at a Washington, D.C.-based newsletter publishing company, my salary was $14,000. My wife was earning less than that. Our two salaries barely covered our basic living expenses. On top of that, I was attending graduate school and we were paying off student loans. Then our first son was born. For the first six months of his life, he slept in an open drawer in our bedroom.

Meanwhile, I was spending money I didn't have on things I couldn't afford. Struggling to pay for my education and brand-new family, I overspent because it seemed to provide some happiness, some relief.

But the thrill of buying stuff soon waned. Each new object brought less relief.

Eventually, I realized that I was getting 80 percent of my pleasure from experiences that didn't cost much money. But recognizing that you don't need junk food and kicking the habit are two distinct things.

Here's how I got myself out of debt:

First, I got rid of all my credit cards. I figured that what I couldn't buy with cash was either worthless or worth saving for. Although the fear of going without credit was great, I never experienced any anxiety after I trashed the cards. It seemed like a drastic decision before I made it, but after half an hour I never gave it another thought.

The second thing I did to get out of debt was to start saving. I had made myself a promise that I would save a percentage of my take-home pay, but I never did it. The breakthrough came when I was talking to a friend about how the IRS manages to collect a big chunk of our income through the evil genius of withholding. I recognized I had to do the same thing to myself. The only way I was going to save money was through force.

The solution was available in a new-at-the-time savings-bank program, one that withdrew a set amount of money from my primary account every month and put it in another one. That program allowed me to gradually increase my saving from 10 percent of my income to 25 percent and pay down my debt in a few years.

If you are spending more than you are making, get rid of your credit cards. And to get used to spending less, remind yourself repeatedly that most of the junk you buy (a) becomes unused after a few months and (b) doesn't provide you with much value anyway. Remember that the best things in life - the picnics you have with your family, the walks you take by yourself, the time you spend with your friends - are free, or nearly so.

Create a separate bank account that you'll use to pay down your debt, or have your debts automatically deducted from the one account you have. You might even consider a debt consolidator. (But watch out. Most of them are crooked.)

Increase the amount of your take-home that goes into debt payments every month. You might start, for example, with 10 percent and then increase that by 5 percent a month.

Six months from now, you could be living on half of what you spend now - and I'll bet you will be feeling a lot better about yourself. You'll have less stress, more energy, more confidence, and the beginnings of a lifelong habit of wealth building.

There are so many ways to save money. You can spend less on just about anything without giving up either the pleasure you take in buying or the quality you get from your purchases.

Instead of buying new clothes that will be out of style in a year, buy vintage clothing that looks great and distinguishes you.

Instead of signing a lease for an expensive car, buy something old but still good that has a personality.

Instead of going out to lunch every day, eat some fish or other protein at your desk. This is one of the things I did. By eating a can of tuna every day instead of going to lunch with my co-workers, I saved almost $2,500 in a single year. Plus, I went from staff editor to publisher by applying that extra lunch-hour time to improving the business.

Instead of plodding along in your same old job, make the decision to earn more money.

I did that by making myself a more valuable employee. Until then, I was doing my job and leaving when my job was done. To prepare for my raise, I started working extra hours - even though I didn't have many. I used those extra hours to help my fellow workers do their jobs (which they appreciated) and launch a few new products. I didn't know anything about marketing at that time, but those two activities turned me into the go-to guy at the office.

Several months later, I walked into my boss's office and told him everything that was wrong with the business. "You are not telling me something I don't know," he said. "If you let me run this business I will fix all these problems," I promised. He liked my moxie - and he had no one else to turn to - so he let me take over. With my added responsibilities, he gave me a raise. Every six months, I asked for more money, and I got it. In three years, I had nearly doubled my salary.

In addition to working extra hard at my primary job, I earned a second income by teaching a class of undergraduates early in the morning. It wasn't a ton of money, but it helped pay off those debts.

I was working 14 hours a day, spending two hours with my family, and getting it done.

It wasn't easy but it was a lot of fun.

What I discovered was that working hard when you are motivated is a lot more fun than hardly working when you don't like your job. That was a lesson that made a big difference in my life. If you are in debt and have too little income, it's a lesson you should teach yourself.

Work more. Save more. Spend less. Waste less. You'll be out of debt and on your way to building real wealth in no time.

Money Making Opportunity – Creating Wealth Using the Principle of Compound Effect

Are you interested in a money making opportunity that will help you in creating wealth quickly without even costing you a dime to achieve your goal? Money making or creating wealth has always been a source of concern to human beings since time immemorial. Human beings have often worried themselves about the ways to build wealth to achieve their financial goals and live the live of their dreams. Those who know how to create wealth however do not worry much because they know the money making opportunities available and how to apply them. One of such wealth building opportunities is the principle of compound effect which the rich have always applied to get rich and this is free for you too to use if you desire to make money.

What is Compound Effect?
Compound Effect is the principle of reaping huge rewards from a series of small smart choices. Arising from these is a final result which is often massive such that the steps taken to achieve it really do not seem significant.

Small smart choices +consistency + time = Radical Difference (Changes).

The power of the principle of compound effect lies in its simplicity. If the small smart choices are applied consistently, over time some radical differences will be observed in the individual applying them. However the most challenging part of the principle is that we must keep working away consistently for a while before we see our efforts paying off. If not there will be no change.

The Principle of Compound Effect as a Money Making Opportunity
It is no secret that the principle of compound effect is behind every achievable success in creating wealth. It is only the wealth built consistently overtime that stands the test of time. No wealth created quickly and without foundation can endure. Using the principle of compound effect to create wealth and make money is therefore is time tested and the most effective. Every wealthy person realizes this and that is why their wealth endures and appreciates. The Bill Gates and Donald Trumps of this world apply the principle and effectively too.
Dan and Ken are friends in their mid forties. At the time both were twenty years and in college, they both set a goal to be financially free by the time they will be in their in their mid forties. At twenty both decided that when they start working and earning steady income they will be saving a certain portion of their income consistently every month. Back then, they set a goal of saving a minimum of $100 per month until they reach age fifty five when they hope to retire from active working life. Ken did this for a few years and stopped. Dan on the other hand continued saving consistently $100 or more every month since age twenty, investing his savings and using the principle of compound effect has been able to make money enough to be financially free at age forty five. With compound interest, Dan has become a millionaire and could afford whatever he desired. Ken on the other hand is still struggling financially and trying to make ends meet.
You see, using the principle of compound effect, Dan made small choices of saving a minimum of $100 or more monthly consistently over the past 25 years and that is the result we are seeing today in his being a millionaire and financially free. He has used the principle of compound effect to achieve the radical difference (change) which is the financial freedom he has always desired. To be financially free, Dan lived through saving and investing consistently. He lived through sheer agony and sometimes frustrations and disappointments to become the wealthy and financially free man that he has become.
Your path to success in money making is through a continuum of mundane, unexciting and often difficult daily denials in creating wealth. The wealth and financial freedom of your dream can be yours when you put the compound effect to work for you like Dan did.

Making money demands a lot of denials and frustrations. You can however save yourself these denials and frustrations in creating wealth by clicking here now!!!