Most of us are not rich, and we’re not going to get rich. But this doesn’t mean that we have to be poor, destitute, unable to pay our bills. Being broke is for the birds. But unfortunately, too many people live here as a perpetual state of being. This isn’t the way it has to be for you and me. But it takes a little risk, a little planning, a little hard work to get away from hand-to-mouth. You’ve got to have a plan and stick to it, but I promise you, it’ll be worth it. Here are some steps to get you there.
First, you’ve got to stop stop STOP wasting money. This is a big one, and it’s a lesson that most people never learn. You’ve got to start living well beneath your means, eliminating you can’t afford. One such expense is debt. Debt, itself, is expensive. That’s why you have to spend such high interest on it. You can only eliminate debt if you begin living beneath your means. This is a process that can take years, as some people have accumulated many figures of debt, often exceeding their annual income. So take a few months and work on this. Don’t get discouraged. It takes time.
This is one of our first instances of spending money to make money. Spending as much extra money as you can scrape together on debt may not feel like you’re spending money. Rather, it’s more like filling a hole. But you can’t start making money until it is much reduced or gone completely. You want to get your debt eliminated as fast as possible, especially if it’s high interest. In a situation like this, it may be worth it to take drastic action. Cashinyourannuity.com is a place where you can sell structured settlements and annuities for the purposes of eliminating debt and other profitable goals. This is exactly the kind of situation in life where selling an annuity or structured settlement would be appropriate.
Now that you’re out of debt, you’ve got to start thinking of other reasonable investments which will increase your wealth and, potentially, happiness over the long term. One of these is education. Even if you are older than the typical undergrad or grad student, it’s quite possible that additional schooling will enable you to make a lot more money in the future. A lot of people are scared of school right now, unable to take that action for fear that they’ll be loaded with student debt for the rest of their lives. But this is only the case if you get the wrong kind of degree in a field that doesn’t need you. If you have a reasonable idea of your competence and your field’s need for the skills that schooling could provide you, higher education is still worth it.
Buying a house is another example. It’s an expensive investment, but after that you’ll save tens or hundreds of thousands of dollars over a life of renting. Plus you’ll save most of what you pay in a mortgage in the form of equity. Equity is amazing, and it has been one of the primary wealth growth methods for people like you and me for generations. But it requires a major investment. And it’s just another example of spending money to make money. By now, this process should seem intuitive. You’ve just got to do it.
This was a guest post.