I was at the library on Saturday looking at books and came across the book, "Rich Dad, Poor dad" I have heard about this book but have never read about it. I truly believe that in life when we are ready for something, suddenly it becomes very convenient that we stumble upon it. I have not only been trying to learn about financial literacy for my own life but for work purposes as well. I am in the education field and as my job has evolved over the past couple of years so has the questions that I am asked when people call me. I am a one stop shop (so to speak) for people to call and get information about loan forgiveness. As the economy has plummeted the seriousness of the questions has evolved as well. Back in the spring these calls were becoming more and more common. I told my supervisor about these calls and then I went to a conference on Financial Aide and apparently it is across the board becoming a problem. More and more people are experiencing a financial hardship.
The problem is too many people have dug themselves a whole and instead of putting the shovel down, they keep using it to shovel deeper, thinking if I could just make more money my problems would go away. Then as society/government has taught us, the entitlement factor kicks in, Isn't there some sort of government program out there to help people like me?
Instead of sticking your hand out, why don't you try a different approach. I don't care if you use, Dave Ramsey's, Robert Kiyosaki's, or Suze Orman's. Bottom line is if your current way of thinking is what got you into this mess, you need to try a different approach.
If you are reading this thinking there is NO way to fix your debt issues unless you get a new job or a pay raise try doing this, stop using your credit cards and stop buying liabilities. Immediatly sit down and do a wallet detox. Remove ALL credit cards from your wallet, and if your debit card keeps getting you into trouble toss it as well! Next, set up a budget. I can not express how much I LOVE Dave Ramsey's software online for setting up a budget.
Next, when setting up your budget, stop paying more than the minimum due on your credit card and start putting every extra penny in the bank until you have $1,000 saved up for an EMERGENCY! A true emergency. No more going out to eat, no more "I wants". The only thing that is to be satisfied is basic needs.
Basic Needs are:
1. Food
2. Clothing
3. Shelter
If you are thinking YAY! Rule 2 says I get to go shopping - return to the top of this blog entry and start rereading - that is the thought process that got you into this mess in the first place!
If you are thinking WOW, this chick is a genious, nope, it is Dave's get out of debt process. Check out his website at www.daveramsey.com
You can also listen to him live everyday from 1pm-4pm on this website or on the radio.
Very interesting. Definitely food for thought.
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