Eliminating Your Debt and Beginning to Build Wealth
One of the first steps to building wealth is eliminating your debt.
It is not necessary that you completely eliminate your debt before you begin thinking about your future and wealth building, but you will need a detailed plan that will eventually get you completely out of debt.
You can work on debt reduction and wealth accumulation at the same time.
However, the one thing you cannot do is continue to use your charge cards.
You can get out of debt on your own.
But if you have a lot of debt and you are not able to pay more than the minimum amount on each account, you should consider enrolling in a credit counseling program.
This will allow you to consolidate all of your unsecured debts and make a single payment each month.
Your payment will be about 2% of the amount that is enrolled and your interest rates will be reduced to about 10%.
This will allow you to pay your debt off in about 3 to 5 years.
Your first wealth building priority should be to get $1,000 in an emergency fund.
This will ensure that you do not have to use your credit cards for small emergencies.
This money should be easily accessible.
It should not be an account that cannot be accessed with something as simple as a check or a debit card.
Wealth building begins with increasing your income.
This is the bottom line.
The extra income can be used to escalate the repayment of your debt and begin a fund that will serve as money for investments.
Investments can come in many forms.
They do not necessarily have to be stocks.
Investments can be real estate, stocks and bonds or businesses.
In the early stages of the debt relief process, you should begin researching ways of increasing your income and methods of building wealth through investments and other methods.
Financial insecurity can be very stressful.
Eliminating your debt and building your wealth can help you eliminate the stress and move forward into financial stability.
It is not necessary that you completely eliminate your debt before you begin thinking about your future and wealth building, but you will need a detailed plan that will eventually get you completely out of debt.
You can work on debt reduction and wealth accumulation at the same time.
However, the one thing you cannot do is continue to use your charge cards.
You can get out of debt on your own.
But if you have a lot of debt and you are not able to pay more than the minimum amount on each account, you should consider enrolling in a credit counseling program.
This will allow you to consolidate all of your unsecured debts and make a single payment each month.
Your payment will be about 2% of the amount that is enrolled and your interest rates will be reduced to about 10%.
This will allow you to pay your debt off in about 3 to 5 years.
Your first wealth building priority should be to get $1,000 in an emergency fund.
This will ensure that you do not have to use your credit cards for small emergencies.
This money should be easily accessible.
It should not be an account that cannot be accessed with something as simple as a check or a debit card.
Wealth building begins with increasing your income.
This is the bottom line.
The extra income can be used to escalate the repayment of your debt and begin a fund that will serve as money for investments.
Investments can come in many forms.
They do not necessarily have to be stocks.
Investments can be real estate, stocks and bonds or businesses.
In the early stages of the debt relief process, you should begin researching ways of increasing your income and methods of building wealth through investments and other methods.
Financial insecurity can be very stressful.
Eliminating your debt and building your wealth can help you eliminate the stress and move forward into financial stability.
