The rich rule over the poor, and the borrower becomes the lender’s slave.
— Proverbs 22:7
Do you despair when you see your massive credit card bills? Are you avoiding your friends and family because you owe them money? Are you earning insufficient to cover your expenses and debts?
If you dream of paying off all your debts, I have a SIMPLE 3-STEP PLAN from George S. Clason, the author of the finance Classic “The Richest Man in Babylon”.
Are you prepared? Let’s get started!
Step 1: Make a list of EVERYTHING you owe and the amount you borrowed from each.
When you write down your debts and total them up, you have a goal to work toward. As you continue to pay off debt and see your debts shrink, you will be more motivated to keep going until you have paid them all off.
Step 2: Set aside 10% of each salary for investment and 20% for debt repayment.
We all lived on lower wages before receiving promotions and pay raises as our careers progressed. Instead of having more money for savings and investments as our wages increased, our spending and consumption increased. For some of us, our spending has exceeded our income, and this is how we end up in debt.
We must learn to do the opposite. We must learn to SAVE FIRST and pay off debt BEFORE we spend and purchase things. As our savings grow and we pay off all of our debts, we learn to live on less and less money.
Step 3: Don’t borrow any more money because you’ll only end up deeper in debt.
You can’t get out of a pit if you keep going back and forth and bury yourself too deeply. If you want to pay off all of your debts, you must do so gradually and STOP borrowing more money.
Repeat those three steps until you’ve paid off all of your debts!
Paying off debt is analogous to felling a tree with an ax or pulling weeds in a rice field. You will also succeed if you chop down the tree a few times or pull some weeds in the rice fields every day. The tree will fall, the rice field will be cleared, and you will have paid off all of your debts!
Remember not to go into debt, and set aside 10% of your income for investing and 20% for debt repayment. You will be free of everything you borrowed if you discipline yourself until you become used to it.
Consider the day when you are debt-free. Isn’t that wonderful?
Is it too simple? You only need a little willpower to succeed! Save this article and give it a shot for a few months, then let me know how it goes in the comments!
By the way, if you think this will help your friends and family, please share this article as well!