Frugal Lifestyle over Big Wins
Surely, it’s hard to think big when you’re overwhelmed with your debt struggles. In most cases, penny-pinching becomes norms, and your monthly obligations month after month is your sole focus. Unknowingly, this can help, but it might not be the best way possible in facing your debt problems.
Addressing the Immediate Danger
In martial arts, your coaches may emphasize that you should be addressing the immediate danger. This means that if an opponent is obstructing your neck, your utmost focus is to free your neck and followed by your counter defense.
Putting this circumstance in the perspective of your obligation, if you get a shutdown notice for your electric bill, you are likely to prioritize it. In most cases, most of us are regularly facing an array of immediate dangers, where we usually react instead of acting on it as a more appropriate response. If you are currently in this kind of situation, surely you perceived a constant struggle, which limits your capacity to prepare for the future. Besides, it may hinder you from potentially build an emergency fund or save more money for Tax-Free Savings or any purposes.
What it Means to Think Big?
Putting an end to being the bondage of your recurring expenses may not be easy. If you’re in a struggle to pay on your $100 obligation, then $1,000 is indeed Big. Besides, if your income totals $20,000 each month, obtaining $40,000 is surely Big enough. In certain cases, people who are earning $40,000 might still have the same shortcomings as those earning $20,000. The point is whether you think big it does not equate to becoming debt-free.
By all means, what matters is your attitude towards spending and how you manage your overall finances. It all boils down to how you strategize your income over your expenses and how you create your budget. Besides, repaying your debt takes a lot of discipline and an effective debt management plan.
Penny Pinching as a Strategy
Penny Pinching is a strategy that requires a significant amount of your time. Some examples are couponing, or making your own lunch or coffee at home rather than buying it outside, and some others. Though it is of great help, it is not a feasible strategy to suffice your entire needs in the long run. This means that along with this strategy, you must also think of other possible means that can help you attain your goal.
Think Big – Creativity and Resourcefulness
When you think big, you consider means which can help you earn extra and save more money. Whether what stage are you in, as early as possible, it is a must that you also learn how to earn money as a teenager. It would help if you set your mindset similar to how an entrepreneur thinks. You have to take advantage of each opportunity that can potentially increase your income.
Moreover, it isn’t a problem if you wish to stick to your job, yet it will greatly help if you attain something bigger. If you have certain knowledge or talents, it might be a great chance to use it to earn extra. Besides, going into free training can also help you acquire new skills which might be useful in getting a second job, or fill greater roles with bigger compensation.
Look into the Success of Others
Perhaps seeking inspiration or a source of motivation will greatly influence you in attaining your goal. You don’t have to doubt your potential if others can do it so you can. Also, you must know the warning signs of depression that is caused by your piles of debts and act on how you can overcome it. Besides, you can ask people who were able to successfully surpass indebtedness and get some useful tips on how to recreate your social life while paying off your debt.
On the last note, a frugal lifestyle does not only help you in becoming debt-free, it can totally transform your life and finances to be more stable and becoming.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.