Become Debt Free NOW!

What Do They Really Have To Offer?

That seems to be the catch phrase of a lot of companies that want to give you financial advice, doesn’t it?  (Become debt free NOW).

Let us focus on this for just a moment.  The question becomes:  What kind of fancy advice or service can they really give you?

Debt is a widespread problem.   And it requires just a little bit of thought – not too much – just a little.

Basically it comes down to this – You have to spend less than you earn.  Use your monthly surplus to 1. pay down any debts. 2. Save money.

Rinse – Wash – and Repeat until you achieve any financial goal you happen to be after.

Not Enough To Reach Your Goals?

The other laughable thing about much of the financial advice you can pay for is that whatever scheme or plan they come up with, execution still depends on your financial abilities.

What if you have a goal that is beyond your ability to reach with your current source of income no matter how frugal you become?

If that is the case, you will want to develop new revenue streams.

Here are some ideas:

1. Start a business. It is not an easy thing to do and it IS hard work. BUT, there is potential there – if you can get it going.

Momentum is the key. You have to develop momentum. That is forward motion in simple terms. Getting a big rock to roll takes a LOT of effort. But once it gets rolling it can really go – feeding on its own motion.

Getting started is the hard part. Don’t fool yourself though. If the money coming in does not exceed the money going out, then you have a liability and not a business.

Do not quit your day job until / if your business reaches the point where you make many times the income that your day job provides. Only then MIGHT it be safe…

2. Passive income such as Real Estate, publishing books or music and no doubt a variety of other similar concepts can work to provide additional revenue.

By the way, publishing can feed upon itself and generate momentum. A good example would be writing a book that develops an audience. This would be a group that is hungry for your next book. Once you have a large enough audience, you just keep on writing and additional revenue comes in. Without the audience – not so much!

3. A second job? – No one likes the idea of taking on a second job. But if it can get you over the hump to where you get your debts paid off and can actually start saving, it might be a good solution. In college I would work several part time jobs just to keep things going. But, this is not for everyone.

Overall Lesson: Bring in more than you spend.

Additional problem to overcome: Money loses its value over time.

Disclaimer. I’m not giving financial advice here, find a professional for that.  I’m just sharing my thoughts!

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25 Responses to “Become Debt Free NOW!”

  1. Micah Says:

    Debt is a heavy burden on a lot of people.

    One option that has been helping a lot of people, myself included, is network marketing. It’s about the only business model that has low startup cost and will bring results as soon as your are willing to take action. But it’s not for everybody 😉

    Thanks Dave!

  2. Dave Says:

    I agree Micah, debt is a very heavy burden that many people, including myself, struggle with. MLM is certainly an interesting model. I tried it several times and I just couldn’t get it to work.
    I’ve mostly been using the direct, traditional ‘buy wholesale, sell retail’ route and I seem to do a little better with that. My current online store is

  3. Michael Harrington Says:

    Hi Dave,
    Excellent article.
    I love your last point…. “Overall Lesson: Bring in more than you spend.” Well said!

  4. Dave Says:

    Hi Michael. LOL, yes, I guess that makes it as about as simple as it gets. Thanks again 🙂

  5. Astro Gremlin Says:

    Dave, it’s so simple but folks seem to have to learn the hard way. “How can I be out of money when I still have checks?” It’s OK to go into debt but only for real estate. It’s easy to get into debt, but it’s a trap. Make more money than you spend. Shucks, even Ben Franklin knew that.

    Hey nice CommentLuv settings. “I’ll be back.”

  6. Dave Says:

    Good point Astro Gremlin! I’ve been experimenting with the idea that $1 is $100! It sure makes you think twice about buying a latte at a coffee shop.! It’s hard to rationalize a $300 cup of coffee. 🙂 LOL.

  7. Michael Belk Says:

    Saving money is what a lot of people struggle with. I wish we could save more and reduce our credit debt. I am glad you provide ways to help. thanks

  8. Dave Says:

    Hi Michael,
    It can be a struggle. But sometimes there are surprising ways to save money. Just think of the Duggars (?) with those 19 kids. Granted, they are rich now from TV, but they were allegedly debt free before the TV fame came along. They did things like making their own soap, etc. These types of things are always interesting.

  9. Pete Goumas Says:

    Hi Dave,
    Thanks for sharing your thoughts.You are right, If somebody wants to become dept free then he could start a business or look for passive income or could do a second job. In my opinion, second job sounds difficult but it is a simple and quick way to earn extra cash and if somebody wants an urgent solution of debt then he should do second job.

  10. Roy Dahlheimer Says:

    Over the years I’ve learned I would much rather earn less money and have little to no debt than earn a lot and have a ton of debt. I’ve been in both situations and no debt is definitely the way to go. As someone else said it’s a big trap that can be hard to get out of.

  11. Dave Says:

    Hi Ray, I agree it is best to have no debt rather than to have debt – that’s for sure! Thanks Ray.

  12. GoodTrader Says:

    We need more financial education to avoid falling into the debt trap. Unfortunately, many learn the lesson the hard way.

    Somewhere I read that is a cycle that lasts three generations :

    The generation that lived his childhood and early youth with shortages and hardships save and not fall into debt.

    The second generation live better and begins to take debt.

    The third generation falls completely in debt and hardship begin again, completing the cycle.

  13. Dave Says:

    Hi Good Trader.

    Thanks for commenting. If I make a suggestion? You might consider using your real name or at least ‘a real name’ for commenting. Your comment ended up in my spam folder. Fortunately, I was able to check it today and pull your comment out. I just want you to maximize your efforts and not waste time and energy. – Just a friendly suggestion.

    Good points on debt. I actually think that getting out of debt and then moving toward investing is a thinking man’s game. Debt is something that happens when you 1. cannot meet your monthly expenses or 2. are not thinking about the impact of what you are doing. – or some combination thereof.

    There is not a good cure besides thinking about it and waking up. we can only talk about it, but it is up to the people to ‘get it’.

  14. Astro Gremlin Says:

    Dave, I just wrote a short blog (below) about debt versus savings and why the two are more different than many appreciate.

  15. Danny Says:

    Good topic choice, David…

    Looking at this topic from a broader perspective, it can either be quite complex, or incredibly simple…

    If we look at everyday life examples, from our family , friends and neighbors, or read about “the pathways to wealth—financial freedom—etc” by some of the big ” movers & shakers” out there, we can see that there is not much difference in what people are doing(or not doing) that get’s(or gained) their results…..

    As you have mentioned, being frugal does not always turn out to be the best way forward…..
    We can cut corners, here and there, though, it can be a tough road with this approach…

    Wealth creation should be the goal.
    Though, done gradually, with only well thought out calculated risks, when appropriate…(eg: investments in shares–property–small or large, etc)

    For some, this may be near impossible, as they may already be ” hard wired” to take enormous ” all or nothing ” gambles(risks) and often even if the gamble pays off, they will go and “blow” their gains almost immediately…in an effort to try and increase their profits(win)….

    On the other hand, other people will not take any risks at all, so they get by…though, only just….

    There are so many life metaphors that fit just these two examples, alone….

  16. Dave Says:

    Hi Danny, you nailed it pretty well on this one. some people do seem to be predisposed to take big all or nothing risks.

    I read somewhere that you should never put more than 20% of your capital on any one venture, no matter what.

    I think that was sound advice. All or nothing can leave one with ‘nothing’. And that is a scary thought.

    Gambling can be a particularly nasty attachment. Anyone who wants to build wealth needs to tackle that one head on…

    Thanks again for your insight Danny, good points!

  17. John Says:

    Enjoyed reading it! A friend of mine once sought my advice on if he should pay off his student loans at 6% interest or put that money in a “great” CD for 2.5%. To us the answer is simple, but for those that don’t know it just isn’t common sense.

  18. Dave Says:

    Hi Cameron,

    Excellent comment. Does that mean that you believe in ‘fate’ over ‘taking action’ or is success a combination of both?

    Since you subscribed for comments. I’m going to post a link direct to your comment on twitter, facebook, google plus an linked in – what do you think about that?

    Thanks for visiting and commenting Cameron!

  19. Haroun Kola Says:

    Debt is a horrible debilitating thing to have, and especially because the elite of the planet want to keep the mass of humanity indebted, really enslaved. If every person took your advice, spent less than what they earn, and more importantly grow a passive income, we’d all be better off.

  20. Dave Says:

    Hi Haroun,

    That is an interesting concept you bring up about global elitism.

    You may want to post your 20% discount code for your promotion on this page:

  21. Joe Seals Says:

    People in this country are taught how to make money everyday and some people are really good at it. The problem is, there are no courses of debit and how to manage it. I can remember getting my first credit card and maxing it out in less than an hour. When the bill came, I looked at it and laughed. Thinking to myself, I only have to pay them $20.00. This is great. I paid the minimum for a few months before I noticed the amount of the bill was going up even though I wasn’t spending anything. I should have been paying more than the minimum. And someone needs to teach our youth how to manage these things.

  22. Dave Says:

    Joe, you are absolutely right about that. It is a shame that so many people find out the hard way. Sometimes it gets to be too much and people really have to struggle then.

    I don’t recall every being taught any debt avoidance / management techniques in school, do you?

  23. Umich Says:

    A debt management plan (DMP) could be ideal for people who are genuinely struggling to meet their unsecured credit contractual or minimum repayments, particularly if the problem is likely to be relatively short term.If you are in this situation a DMP could allow you to make a repayment to creditors you can afford, after deducting all your necessary living expenses.Debt outcome is a undoubted choice to filing bankruptcy.

  24. Umich Says:

    Debt declaration is a honest-to-goodness preference to bankruptcy.

  25. Dave Says:

    I would actually disagree with that premise. There are times when bankruptcy is preferable. For people reading this, if they have any specific questions, they should address those questions to a legal professional.

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