Managing vs. Eliminating Your Debt

Managing vs. Eliminating DebtI have a question for you. Should you be managing your debt or eliminating your debt?

This is a key question that you must answer and your response will determine your level of success with your finances.

If you are comfortable with keeping and managing your debt, you will spend your time making just the minimum payments, worried about how to increase your FICO score, and looking for options to move your debt around to the next card that offers you a “free interest balance transfer”.

You will be ok with always having a car payment and just using credit to get anything you think you need.

Debt will always be your companion.

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However, if your focus is on eliminating debt, you will put your energy on how to increase your income or cut your budget so you can apply more of money to your debt snowball.

You are not simply playing with credit cards, you are ready to break up with them for good.

You will learn to be patient and save for the things you want to buy.

Debt will no longer your companion, but your enemy. The enemy of your financial prosperity. Once you are done with it, you can move on to bigger and better things.

What will it be for you? Will you keep working on managing your debt or will you put your focus and passion on eliminating your debt?

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What Do You Need to Win with Money?

What Do You Need to Win with Money?Have you ever seen the movie the “Wizard of Oz”? It is considered an American classic and it debuted 75 years ago this year.

My wife has been participating in a local musical production of the “Wizard of Oz” as a pianist. I had the great opportunity of watching the performance last week.

In the story, young Dorothy gets swept out of her home in Kansas by a tornado and she lands in the magical Land of Oz All she wants to go is to get home and she is told only the Great Wizard of Oz can help her.

So Dorothy goes off to see the Wizard and along the way she meets 3 new friends: a Scarecrow who lacks a brain, a Tin Man who lacks a heart, and a Lion who lacks courage.

All 3 of them join Dorothy on her quest to see the Wizard in hopes he can help them as well. In the end, they all get what they need, but the Wizard had very little to do with it.

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When I think about our finances, I think we all have the same needs Dorothy and her friends did.

Let me explain:

  • We need our brain to be activated. We need to be involved with what happens with our money. We need to learn new information and we need to be wise with our financial decisions.
  • We also need our heart to be engaged. If we are going to change our financial situation, a lackadaisical approach is not going to cut it. We need to put some passion and emotion into it.
  • Finally, we need courage. Courage to make tough decisions. Courage to make sacrifices and changes in our habits. Courage to be honest with our spouses in terms of finances.

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And most of all, like Dorothy we all need to go home. What do I mean?

You need to make sure your home is well taken care of in terms of your finances.

Do not disengage. Do not abandon your spouse in the management of money. Do not neglect the future of your children.

Go home and take care of business.

Fortunately for you, just like with the Scarecrow, the Tin Man, and the Lion you already have what you need. You don’t need a Wizard.

You have what you need you to take care of what needs to be done with your money.

Get after it!

Question: What do you need today to begin to take control of your money?