Posted by on Mar 24, 2018 | 0 comments

6 Financial Tips to Help You Get Out of Debt and Build Wealth Fast

Building wealth and increasing your net worth are two of the biggest struggles most people face. Unfortunately, these two require that you make tough decisions regarding how to spend money and how to earn more. There is something else that the successful ladies and gentlemen swear by – learning from the experiences of others.

How do you get out of debt personally and how do you get to run a billion-dollar enterprise a few years after your business digs sinkholes?

  1. Pick the harder but right path

There are many easy but wrong paths you can follow to get rich but, most of the time, you end up poorer and worse than how you were before. For most entrepreneurs, they have learned a tough lesson, and when things are hard, it is safe to reduce the number of people employed or some assets instead of dying in debt.

While it is hard to invest when you are just starting out in life, say after you fill in your first employee write up form but, you will realize later on that that tough decision has higher compounding effects later.

  1. Make something out of people’s money

No, you don’t need to scam people to get their money. The simplest explanation for this is where you gain a financial edge by using other people’s money as leverage for you to gain more money than the amount borrowed.

Other people’s money means money borrowed from your parents, the bank or collateral. You have to be smart and also careful about this because you can lose the money if invested in the wrong place.

  1. Take risks and fail

Life involves taking big risks, failing, learning lessons then using those lessons to succeed. Most of the success stories we hear around are of people who risked it all, failed severally but eventually succeeded. By thinking of failures as learning steps, then you are setting yourself up for success.

  1. Pay debt with debt

This may not be the best idea on the books but, when applied correctly, it can help to get out of a high-interest debt and be left with a low-interest debt. For instance, getting a personal loan to pay off high-interest credit card debt is a smart move. Also, taking a debt consolidation loan and remaining with a low-interest loan is a smarter option than dealing with creditors and expensive loans. Regardless, in some instances, it may be worth hiring a reputable CPA.

  1. You shouldn’t trade long-term pain for short-term gains

Most people prefer convenience over saving because convenience offers short-term benefits. While buying the latest gadgets is addictive, it means that we are saving less money and spending more. Your future self will not thank you for the big car and the big screen TV you have now. As mentioned above, you should think of investing earlier rather than later. One of the best investments is education. While pricey in the long-term, having a tutor and investing in education in the short-term can yield large yields.

  1. A house isn’t an investment

Even though it is in your name, the value of the house will most probably be lower when you sell it, especially with economic crunches. Also, renting may be a better option than buying a home. A house is a need, not an investment.

Final Thoughts

Even though these sound like harsh pieces of advice, they work. If you want to lead a successful life, then you have to implement these strategies.

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