Right now, it’s buried in your current monthly expenditures. Your Debt Relief Cash doesn’t have to be a lot of money. It’s like a snowball you begin rolling down the hill. Pretty soon, it will turn into a boulder-sized ball that you can make a snowman out of. Like the snowball, your debt started out small and grew until it too is the size of a boulder.
The Debt Relief Cash amount is striving for approximately 10%t of your take home income. If the only debt you have is your mortgage, strive for 25% -30% of your monthly take home income for your Debt Relief Cash.
For example, if your take home pay is $2,500 a month, you will try to put together 10% or $250.00 a Month in Debt Relief Cash.
Here are a few suggestions on finding additional money to use as your Debt Relief Cash:
Let’s look at places where extra money may be hidden or being wasted in purchases or monthly expenditures.
Here are few basic suggestions.
· Don’t buy a brand new vehicle.
Buy a vehicle that is never newer that 2 years old. You don’t take the
immediate depreciation, and taxes and insurance tend to be lower than if you bought a brand new vehicle.
· Finance your vehicle for 36 months or less.
It’s a good idea to never buy a vehicle with borrowed money. However, if you must, consider the shortest finance period possible. You’ll save money on the interest.
· Forgo the “Credit Life Insurance” on a Vehicle Loan.
This is a cash-cow for the finance company if you think about it. They are asking you to pay for an insurance policy on which THEY are the
beneficiary. If you’re worried about not being able to make the payments in case something happens to you, you may be better off with a term life insurance policy.
· Don’t Take ANY Extended Warranties.
Like most forms of insurance, a warranty is never likely to be needed by the person who bought it. If it was likely that the product you purchased will need repair, they would not sell the warranty to you! Most electronic items today are so affordable that if they did break down, they are more easily replaced than repaired.
· Life Insurance.
The purpose of life insurance is NOT to make your beneficiaries rich, it is to assure them the continuation of your income stream should you not be able to provide from them. For most people, the best choice is term insurance. You may want to reconsider this option is you have expensive Whole Life or Universal Coverage. Check with your insurance agent for a thorough explanation and to see which one is the most beneficial for you and your family.
· Automobile and Homeowners Insurance.
If you blindly accept all the coverage and deductibles available to you, you may be paying more than you need to. Compare insurance coverage and deductibles and you may be able to save money, while being adequately insured.
· Everyday Conveniences.
We waste so much money on everyday conveniences such as frozen foods, going out to dinner, and other such conveniences. By doing a little more preparation, there may be hundreds of ways you save money.
· Keeping Up with the Joneses.
So many people try to keep up appearances by competing with themselves. Remember, the Joneses are going bankrupt. Examine your life ruthlessly to see where you are wasting money on and eliminate the waste. By doing so, you will quickly find your Debt Relief Cash.
Remember, your goal here is to find at least 10% of your take home income.
· Cutting back on eating out at restaurants
· Brown-bag it at least twice a week
· Transferring your credit cards to a lower-interest credit card
· Buying store brands at the grocery store
· Buying items in bulk
· Finding a cheaper insurance for your car and home
· Increasing your IRS deductions on your paycheck
· Refinancing your mortgage
The Debt Relief Cash is the amount of money, which you will be adding to the monthly payment of your bills one after the other until it has been completed zapped!
As each debt is paid off, you’ll continue to add what used to be its monthly payment into your Debt Relief Cash.
By the time you get around to your home mortgage, you’ll be able to focus your now much larger Debt Relief Cash on it until your mortgage has been paid in full!
For most people, this process usually takes between 5-7 years and depending on how committed you are, it may even be less.
If you don’t currently have a mortgage payment, you will concentrate on paying off all of your revolving debt first (credit card, store cards, gas cards, charge cards, car loans, boat loans, etc.).
Then you can focus on putting all the money that you’ve been paying monthly into a low to moderate risk investment account to save up for the down payment and closing costs for your new homes.
Then, as soon as you begin paying the mortgage, you’ll immediately start the process of paying off your home mortgage.