How to consolidate debt? Stop borrowing money and manage your expenses. The reason why we are trapped in debt, we tend to go above our means. Therefore, live a life beyond your means. If you want a much better life then increase your cash flow to sustain the chosen lifestyle.
Here is an example: A 100,000 expense for a month is not sustainable if the income is only 80,000. The 20,000 difference will definitely in debt. Increase the cash flow if you want a 100,000 lifestyle.
How will you increase the cash flow? Look and find for other ways of acquiring income. If you are employed right now then maybe you can have a business to earn extra money.
What’s good about putting up your own business? You are the boss of your life. The income capacity in the business has no limits. If you will venture in the business industry, the time is yours.
Are you tired of being employed? Then this is the right time to make the decision to attain financial freedom. Before letting go of the job, make sure you have a fallback. A very good fallback that can sustain a lifestyle even if we are not working still you can earn money. Yes, money must work for us.
A while ago, we were talking about not borrowing money. It is ok to borrow as long as you can pay it on time and the cash is ready. The bad thing about borrowing is not paying it on time because it will accumulate interest. Consolidate debt by means of managing the expenses and increasing our cash flow.
Use the power of leverage by borrowing money to earn from it. If you will be borrowing 100,000 with an interest rate of 1% per month, make sure to place it in a portfolio or business that can earn higher than 1% to compensate the interest.
This will be a win-win situation. You borrowed money and earned at the same time. We need to stick with the game plan to avoid the mismanagement of the business or portfolio. Splurge at the right time. At the starting phase, the profit from the passive income is recommended to be rolled-over.
Start the snowball rolling. The start may seem to be small but eventually it will turn huge. Perseverance is the key here. Your faith and believe will drive the enthusiasm to go further.
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