Thursday, April 12, 2012

Getting Out of Debt: Rule# 1

"Stop spending more than you earned!" -- My mother

If you are looking for the most important rule to follow in order to get out of debt starting today, and to stay out of bad debt, this is it! Look no farther.

The truth is that, if you subtract a big number (say 9) from small number (say 2), you will always end up with a negative answer; it's -7 in this case. This holds true anywhere you go. So to get a positive result, most people would gladly crawl into a hole called debt by borrowing.

Here is the hard truth. If you couldn't stop yourself from spending more what you earned and instead become a habitual borrower, then you would always end up gasping for more money even if you would be promoted every year. And no matter how many businesses you will put up, all of them will collapse sooner or later. The law of subtraction is universal.

So stop fooling around. If you really want to get out of debt, make that firm decision today to honor Rule# 1 and do yourself and your family a favor.

(I don't claim that my mother is the originator of this timeless wisdom, but I want to honor her for introducing this to me, and drumming it into my head usually over dinner.)