At the end of November, I look back on the days I used to use online pay day loans to either make it to pay day or for spending. Interestingly enough, the online pay lender I used was featured on the show Dirty Money on Netflix. Starting the process of Christmas shopping, I feel thankful on being able to pick up these Christmas gifts knowing that I’m not adding to a credit card balance. All of these purchases are paid for, and I feel good knowing that I’m shopping for other people. What got me into credit card debt to begin with was my love of spending money, people pleasing, and being generous. Knowing that I can do these things and pay for them out right is a completely different feeling. We’ve done the baby steps out of order, we completed step 1 and 3, and we’re working on baby step 2. Having baby step 3 completed is a safety net that gives us comfort. As I’ve said in previous posts, I’ve come to realize that there are three paths in personal finance, a path where people use debt, people use no debt, and a hidden path which is self-lending. If you are going to use debt, then understand that you are playing with a grenade without a pin which will eventually blow up. If you must use debt, then I suggest using a loan to value/loan to cost of 20%, which means you are able to put 80% down in cash and have a loan of 20% or less.
Self-lending is having the ability to use the same mathematics that bank’s use and charge yourself interest. I continue to focus on paying down the car loan, and I’m thankful that this year is almost over with. I’m still thinking of a way to create another stream of income in the new year. It’s important to continue to stay focused. Do you see yourself debt free?
If you want to learn more about the self-lending principle or if you need a financial check-up, then contact me.
This month’s video is HoneyDew Podcast #200 | Jodie Sweetin from the Ryan Sickler YouTube channel.
“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
I believe in your journey to….
A Debt Free Me