Issue #2 How To Eliminate Your Debt And Explode Your Savings For $16

Posted on April 6, 2010 // 2 Comments

Screw it.

I was going to talk about how to improve your yellow page ads, but seriously one day of writing isn’t enough to really give you some good material.

So buckle up.

I’m just going to come out and say it:

I Flat Out Suck With Managing My Money
The More I Make The More I Spend

Seriously, it WAS brutal. It’s over now. I took control of my debt because I went out searching for the best material out there that could maybe teach me how to manage my money.

It really was easy to get in over my head. It all started with a $1000 limit credit card. It seemed harmless. I was a freshman in college and figured I’d only use it if I had too. Well my idea of “had too” was a sure cry from sparingly.

So I racked up a $1000 bucks real quick and just got another card, no interest either.

Sweet.

I pretty much get a interest free loan for a year I can definitely pay back and my limits increased to $6000.

I’m sitting pretty.

Well, four years letter I was officially 6K in the whole with a 20% interest rate. I also had school loans coming in and a ridiculous car payment.

I didn’t have a job either.

I’m going to be honest. I had help. My dad helped me with rent, my car, and some other stuff here and there. And when I say here and there, I mean it.

It was no free ride and still isn’t to day. I’m proud of this too. It was my goddam fault and the only way I could ever learn how to handle money would be on my own.

So real quick, you want to know how I racked up $6000 so quickly. Well for one thing, two spring breaks out of the country didn’t help. Frequent trips to the Wrenthem Outlets didn’t help either.

Also, pretending I was Gene Simmons at every bar I went to, sent me back a few bucks (hint: bar tabs).

But I got better once I read this short and simple book.

I stumbled upon it at Barnes and Nobles and it was suggested to me a couple times by my friend Mike.

It’s called “The Richest Man In Babylon” by George Clason.

What a read.

It’s cool, it reads like a fiction but is a non fiction. It does this through story.

I came away with a lot. I learned how to manage my money, what it means to be “well off”, the harsh reality of time, the power of compound income, and the most efficient way to save.

For the guys and gals who need this, write this down:

The First Person You Should Pay Every Week Is You

It’s a funny concept. Why the hell or how the hell do you pay yourself?

Well read the book.

That would be evil to leave you there, but Clason’s advises take 10% of all your earnings, bank it and never touch it. Let the power of compound interest go to work.

You are building wealth.

I have a 15% account, which means 15% of my paycheck goes into a savings account automatically (most you guys can set this up if you have direct deposit).

It’s worth it. Start living off 10% then your use to. You wouldn’t believe how EASY it is and your actually building wealth.

This is just one of the few things I got from the book. There are probably 30 lessons in all. I wrote down every one of them too.

So if your struggling make your last purchase today. Buy this book.

If your really hurting, go to Barnes and Nobles on the weekend for like 4 hours and you can crush the book for free.

Learn from me. I by no means think I was ever in a financial fiasco. But for me it was real. I don’t care if your in millions of dollars of debt. It’s all relative. It’s all real, especially for the person going through it.

But what’s cool is that getting out, no matter how deep or how long you’ve been in debt, the same principles will get you out.

Best of luck,

Out,

Chris

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