Debt Free

It's true. You can make a fantastic salary or pull in a ton of cash from your business(es), but if you can't keep any, you'll have a tough time getting debt free or making a decent retirement nest egg. Next time you drive by one of those big houses with the brand new Lexus out front, take a good look. You're probably thinking “That's going to be me someday!”. Well, maybe that is going to be you some day, but you'd be amazed at how many of those households are leveraged to their eyeballs. The whole thing is an illusion; a house of cards supported by debt, ready to come crashing down at any moment.

There is a tendency in America to spend up to your income level, and a few percent beyond it sometimes. That will hold true no matter how much money you make. You just keep ratcheting up your spending to match, or slightly exceed your income. Many people have thought “If I could just make 'X' dollars, I'd be set.”. All too often, when they get there, they find themselves with the same thought, only a higher 'X' amount! If you don't stabilize the cash flowing out, you'll never attain that hallowed place of financial stability which you seek.

Here are some ways you can keep more of your hard earned money.

1. Stop climbing the mountain for a while. You don't have to have the best home you can afford, a sweet car like your brother-in-law, or a membership at the tennis club(unless it's a business expense). Stay where you are for a while, or even better, slide backwards a bit.

2. Raise your credit score. That will make many of your interest rates and expenses drop. It may take some diligent work and more than a few phone calls to pull it off, however. Many of the expenses you pay today, from credit card interest rates, to auto insurance, use your credit score as one of the primary factors in the equation when they set your fee and rate structure. Once you can raise your score, and maintain that for between 6 months to a year, you can often get a reduction on your rates, fees, or interest. You must make that happen, however, by contacting the companies, and browbeating them into it. They will not do it out of the goodness of their hearts.

3. Network with everybody. It's often been said “It's not what you know, it's who you know.”. That saying is oh, so true. But the key is not only in building up a large network, it's actually using it. You'll reap countless benefits. You'll find out about jobs, investments, and other opportunities. For the purposes of this post, keeping more of your money, you'll often find out about ways to get tremendous bargains on things you need. For example, I got an almost brand new, Maytag dryer for only $50! This is one of the really nice dryers, with the wrap over the top door, that sells for almost $600 new. The key is to actively seek out opportunities of this nature and avail yourself of them at every opportunity. Don't for get to return the favor, either. If you're getting rid of something, be sure and let everyone know. It'll help them out, and allow you to easily dispose of something at the same time.

4. Avoid extraneous fees at all times. These are fees that you get nothing for, such as late fees and bounced check fees. To accomplish this, start paying your bills online. It's much easier, and saves time to boot. You'll be less likely to get penalized this way. In addition watch the use of your debit card if you're running a low balance in your checking account. In many cases, the account will have an amount frozen for much greater than the purchase amount. This could cause you to bounce a check (or three), earning you several late fees. Formalize a system for paying your bills so your less likely to pay them late. Always remember, it's when the companies actually post your payment that counts, not when they receive it, so give yourself a few extra days. Don't cut it so close all the time.
   

This should help a small bit in your quest to get more money in your account, and less into your creditors.