Eliminating Debt Creates Self Confidence

Friday, April 12, 2013, 1:00 AM | Leave Comment

Depending on what economic experts you read, the economic situation of the United States seems to be getting better, albeit slowly but we see some improvement. Unemployment even though still quite high but most months it is on a downward path.

I guess the country as a nation has started to believe in the old adage, “Slow and steady wins the race.” It seems that’s the path most economists are looking at.

United States economy is not terminally sick. It always creates new life in itself. The rest of the world depends on the recovery. And why not? When the U.S. sneezes, the rest of the world catches cold.

The situation is not pathetic and it can’t be. United States is like a big tanker. To change its direction and bring it on the path of recovery (some say the recovery has already begun), it’ll need more time to do so.

We’ll give the economic recovery the benefit of the doubt. We can’t do anything else either.

We are the American public. We strongly believe in no speak, no see, no hear.

Enough with the national economy. But it can’t be enough because close to 70% of the economy depends on consumers’ spending.

When we spend more, the economy gets in motion and is said to be doing better.

So we cannot stop thinking about the national economy. In return it gives us what? Well! We’ll leave it to the politicians to give us something, anything.

That’s more politics than the economy itself. Both sides of the aisle – Republicans and Democrats – keep bickering and nagging each other without doing anything concrete for the betterment of the people they supposedly represent.

Getting Out Of Debt Creates Self Confidence

Huge debt creates lack of self confidence. Always thinking about how to pay back debt is extremely detrimental to your health.

You always keep wondering: “How did I get into this debt mess?” If you are the victim of bad economy, then you must be extremely more diligent to have control over your spending.

If you are in debt and heavily I might add because of your never-ending shopping and spending spree, then you are completely responsible for your own financial demise. In that case, you might as well start thinking about declaring bankruptcy.

In either case, you may have lost self confidence and consequently your self esteem. You might start feeling you are not worth anything. You feel ashamed and embarrassed in front of your family especially your kids.

As a matter of fact studies have shown that heavy and unmanageable debt leads often to depression which may turn out to be yet far worse than the burden of debt itself.

Tips to regain financial confidence…

There are definite things you can do to have positive attitude even though you may be in deep debt shit.

1. Disconnect from negativity

   The very first thing you gotta do is to disconnect from the negativity that debt may have put you in. When you hear on national TV the economy is getting worse or perhaps better, don’t go out for needless shopping.

2. All resources are limited

   You must live with the thinking that the world’s resources are quite limited. Everything has limits so does your own income. On the same token, your spending must have limited resources as well.

3. Make plans to restore your finances

   Live with the new reality that the bad economy has so kindly bestowed upon us. Your home value has decreased, your 401(k) has nosedived, most companies quit offering pension plans. All this means that you gotta have a basic plan which you can start following today.

4. Eliminate debt

   Start working to reduce your debt and eliminate it altogether. That ought to be your goal. The new reality of the bad economy is to get rid of debt before another recession gets a hold of your finances. I have written articles that you should read to manage your debt.

5. Start Saving

   Forget about the national economy. Let the experts fix it or screw it some more. Start working on your finances. If you have steady paycheck coming in, to avoid a recession in your personal finances, make sure you set aside a percentage of your income in the event your employment situation changes.

   Don’t think for a moment that you have a steady job. Nobody has. Even the C-Level executives are not exempted. Put a stop to your needless and reckless spending.

   When you have some saving at the end of the month, you would obviously avoid having to borrow because of it. Your financial status and your sanity will improve significantly each month.

6. Learn new skills

   Learn a new skill while you still have a job. Ask Human Resources what courses the company will pay for. Select one and educate yourself. Companies usually offer courses internally or will pay for if you take them in college.

7. Find financial adviser

   Once you start saving and you think you have enough to invest, look for a good financial adviser if you don’t have the time or know-how about investing.

In a Nutshell
You can always whistle in the economic darkness or you can start doing something about it.

Now may be the best time to start saving, working towards reducing your debt and leave your finances to your family with a strong foundation so that after your demise, they can build on it further.

Confidence that you are on the right path of saving and reducing debt is the first and most important step toward your financial security.

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