… 3 Steps To Your Financial Rebound

Money comes and money goes… but that’s a recipe for living paycheck to paycheck. Through February 2015, credit card debt nationwide was a staggering $3.34 trillion. As a word bent on consumerism, its easy to fall into the “Keeping up with the Joneses” trap.

It has been clinically proven that debt and financial burden is a lead factor of deteriorating health. With so much debt and a government digging a multi-trillion dollar deficit, people are suffering stress on a level experienced only by those during the Great Depression.

Getting into debt can be very easy to do… BUT, so can getting out of debt… It all revolves around your mindset!

Changing your mindset is one of the easiest yet most difficult things to do. There are a few ways that you can implement to help you transition from an indebted consumer to a financially free spirit.

  1. Stop and smell the roses…

The first thing you need to do is relax. Take a deep breath. Life is short and you don’t want to spend your youth or your retirement stressing about what’s around the corner. Stop and smell the roses. When was the last time you decided to walk or ride your bike to work?

You might be wondering, “How does this apply”? Well it does and here’s how. Driving to work costs you money in several ways… First off, gas prices are on the rise and will hit the $5 per gallon before we know it. Vehicles require maintenance. More miles means more in-depth maintenance which will cost you more money.

Work might just be too far to walk or ride a bike to… Well, that’s why there’s ride share. Sure you may have to pitch in some cash but, with several other co-workers, the money you spend on ride sharing will be far less than the money you would spend on gas and maintenance.

Not to mention the health benefits of taking turns dealing with the stress of traffic.

  1. Enjoy Your Freedom

You are well on your way to becoming financially free… Now go out and play… FOR FREE.

Most of us think of shopping or to a restaurant when considering “going out.” Try gong to a park and enjoying the sun and fresh air while reading a book or watching a show or movie on your laptop or iPad.

Go for a run or a long walk. This is a great way to take some alone time and figure things out. Reinvent yourself by coming up creative ways to do things with little or no money. Find a friend and play tennis or another sport that doesn’t require any money.

  1. Implement the 10% / 10% / 80% rule.

featured-imageYou should be setting 10% of your money into a savings account for those inevitable rainy days. The other 10% can go into a separate emergency account, charity, or IRA. The other 80% can be used to pay the bills.

The trick here is to live below your means. If you spend less than you make then you are operating “In the black.” If you spend more money that you make… well, you are operating “In the red,” consequently accruing debt and slipping away from true freedom.

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