Where does Debt
Start?
The rising
cost of living it is becoming more and more
difficult to keep your head above water.
Unfortunately most people’s salaries hardly
cover the cost of living and this feeds loans and
credit card debt. Its too easy usinjg your credit
card to purchase anything you want. Realistically
though you are speding money that is not yours
but the banks. Or as they say you are spending
your slary or wages in advance. When something
pops up that you did not budget for during the
month, you overspend that month with the result
your salary is less when it comes to payday in
the way of disposable income. Instant
gratification and attractive advertiosing also
result in you using your credit card for things
you really do not need. It becomes worse and
worse until you are in well over your head. Debt
starts because people are not informed or
educated enough to understand interest rates and
some pople hardly understand properly how a
credit card works. So the problem starts with
lack of common sense financial education after
all.
It
starts when you are Young
When we leave school after 12
years of intense and intensive education, we each
know that we have a product that is vaguely in
demand: 160 hours each month which is the time we
have for productivity. We try to sell these hours
in the best way we know how to the highest
bidding company or employer. Usually this entails
drafting a CV [a personal product brochure
detailing how valuable our 160 hours each month
are], and then trying to find a single client to
buy all those hours. [This is also known as
looking for a job.]
If we're unlucky we
make an early sale, and we get a contract to sell
all our hours every month. This contract usually
involves traveling to an office each day [at our
own cost with no tax benefits], working a full
8-10 hour day for a paltry hourly fee: example
purposes….
- $5000/month
= $31.25/hour - 8 hour day,
- or
$25/hour if you factor in the 2 hours/day
commute time,
- or
$20/hour after factoring in the cost AND
time of the commute each day,
- or
$17.75/hour after factoring in the cost
AND time of the commute each day and your
IRS contribution to the government,
- And
Lord knows how low this figure gets after
we have clothed ourselves appropriately
[also not tax deductible].
Often that single client will have
offer contract that demands:
- Exclusivity,
in that you may not work for any other
client - even in your free time,
- and/or
the fruits of any work you do - even in
your own time - become the property of
this single client,
- and/or
you must attend an office from 08h30
until 16h30, even if there is now work to
do - punishing you for getting your work
done faster than your peers,
- And
any other innovative restriction that
limits your personal options.
Is
this the story of your life?
We commute to work in a car we are
paying off in clothes we are also paying off
bought on our credit card. We leave a home with a
hefty mortgage empty all day to go to work to pay
that off. And we look forward to going home to
eat the groceries we also bought on credit…
and so on it goes. Get the picture????
Somewhere along the line we start
looking for an out, a means
to change it and this
is how most people end up in a business
opportunity that does not suit them at all.
Perhaps you may moonlight in a night job as well
so that you have even less time to enjoy the
mortgaged home you bought. Those is why my friend
you need sit down and do your homework before you
even consider another Loan, credit card, clothing
account or anything else on credit…
Look
after your cents and the dollars will take care
of themselves.
Mortgage
Advice Below
Earn Extra
Money With Confidence
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