Goode Steps To Financial Freedom
 
Step One. Don’t create more debt for yourself.
 
If you want to get yourself out of debt the first thing you have to do is to stop creating it, and believe it or not there are ways, firstly get rid of those comforting credit cards that you use for emergencies by cutting them up and throw them away. Put it this way if you were going to give up cigarettes you wouldn’t keep a few packets around just in case would you.
 
Credit cards can be addictive and if you are addicted, there is no room for temptation. You are more likely to abuse your credit card than use it for an emergency so by following these steps you’ll soon have plenty of extra cash on hand.
 
Step Two. Place your debts in order of the fastest payoff.
 
A definition of a debt, It's something you owe that you can theoretically stop owing. Your mortgage is a good example of a debt. But your taxes are not; they're an ongoing expense. Your Visa is a debt, but your utilities aren’t. Your car loan is a debt, but your car insurance is an expense. Right, now you are clear of what your debts are you must make a list.
 
During this process you will need to draw up a table and write down your debts. This should include the company or person you owe money to, how much it is and what the minimum monthly payments are. To do this you’ll need to divide the amount you owe by the minimum monthly payments. Now all you need to do is to put them in the order you’re going to pay them off the lowest number going to first place on the table.
 
After you have divided your monthly payments into the amount of each debt; you’ll be left with the number of payments you have left until that debt has gone, and by focusing on the debt with the least amount of monthly payments you’ll soon see that this debt will be gone the quickest. Once you get into this process you’ll find that you have extra money that can be used to wipe out the next debt on your list. 
 
The first thing that you notice about this system is that it is designed to keep you on track and give you the best results you can get in the fastest time possible.
 
Step Three Set 10% of your gross monthly income aside to build a debt destroyer.
 
You will need to minimize your personal risk to exterminate that debt, to do this you could set aside 10% of your monthly income, the first thing you've got to do is figure out how much that number is. So start with how much you make a year. Divide that number by 12, and then multiply that number by .1 and you're there.
 
Most people would rather cut off their right arm than have to family budget but it really doesn’t have to be a big deal. Being on a budget doesn’t mean going without it simply means paying attention and setting priorities; and to do this you must keep track of where your money is going, such as expensive items that you could live without.
 
Once that is done you can make decisions on how to allocate your money and spend it. And obviously one of your main priorities is going to be funneling the money you save, and to put into your debt destroyer.     
 
Step Four pay off your debts!
 
Start with the debt at the top of the list. Pay the minimum monthly payment plus the Debt Destroyer amount of 10% of your gross income until that debt is gone.
 
For debt number two. Pay the minimum payment + Debt Destroyer+ the old minimum payment from debt one, until debts number two is gone.
 
For debt number three. You need to pay the minimum payment + Debt Destroyer+ the old minimum payment from debt one +the old minimum payment from debt two.
If you stay with this system all your debts will become dust within no time.
    
Step Five. When your debts are gone
 
You could keep on using this system to save money for anything. So that old Debt Destroyer will become a new money making machine and for the first time in your life you'll be calling the shots.

Mark Goode - Goode Advice

 

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