Getting Out of Debt: Rule# 2

"Keep your money off your pocket!"

Once you honor Rule# 1, the next rule to honor in order to get out of debt or stay free of bad debt is 'Keep your money off your pocket!'

What do you do after you receive your salary or your income or your commission or your sales? Spend it? Keep the money in your pocket or wallet or ATM? Or do you allocate it first?

You response is very crucial to getting out of debt or staying free of bad debt.

If you keep you money in your pocket or wallet or ATM, you can kiss your money goodbye. The money in your pocket or wallet or ATM is money here today and money gone tomorrow. And usually you won't even remember where did it go! So keep only in your pocket or wallet or ATM the money that you can afford to spend.

If you choose to spend first before paying your debt then chances are that nothing will be left to pay off your debt. All the while the interest keeps piling high, burying you deeper into debt.

However, if you choose to allocate first before spending anything then you are putting yourself in a better position to pay off  your debt or stay out of bad debt.

This is my suggestion to you. Once you receive your salary, income, commission, sales, etc. allocate them right away! For example, put inside an envelope (with appropriate label on it) your payment for electricity, telephone, water, debt, etc. Don't spend this money.because these money are not yours anymore.  

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.)