This is going to be Mary Hunt's module, at least at the beginning, because her excellent book 'Debt Proof Living' has such a wealth of good advice. She talks about the 'Principles for Debt Proof Living' and I have tried to distill the essence here, but I would recommend you read the book.

• You must never keep it all (otherwise known as tithing)

• You must never spend it all (this is the pay yourself first concept)

• There are only five things you can do with money. Give it, save it, invest it, lend it and spend it. Notice where 'spend it' comes in that list. Last.

• Accept that someone or something else is the source of your talents, intelligence, abilities and creativity. Your unique responsibility is to be a good steward of all that you receive and to use it to the max. Who are you not to shine?

• What you receive is what you deserve. A rather controversial statement really, but when you think about it, why would you deserve more if you can't learn to do the best with what you have?

• Pay cash. I'm not sure I agree with her here, because it is too easy to lose track of your expenditure if you pay cash. I prefer to think of my clients as grown ups and it's better to learn how to handle the various tools like credit cards, switch cards and bank accounts, than not.

• No more (stupid or bad) debt no matter what. Nuff said.

• Develop a strategy / plan. This is so important and so many people don't do it. You need to write out your short, medium and long term objectives and then look at each and decide what actions will best serve your objectives. Then go and do it.

• More money is not always the answer. The more you have, the more you will spend and if you have to earn it then the harder you will have to work.

• Pay in full now or pay twice later. Or even three times. And how profoundly depressing to think that you may still be paying for something that you don't even have the pleasure of using anymore.

Living without debt is like a tax free increase in income. Well, if you can liberate the amount you pay to your loans and credit cards every month, then it is like giving yourself a tax free pay rise.

Powerful stuff.

 

 

© Nicola Caincross of The Money Gym 2008. No content to be reproduced without written approval of the author.

Nicola is a Wealth Coach, Author, Publisher and Speaker, and the Director of The Money Gym.

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