Secrets of Millionaire Mind- How To Transform Debt To Wealth

Wealth builders manage debt

In order to become wealthy, you need to know how to manage money.Transform debt to wealth

One of the secrets of millionaire minds is…they know how to manage debt.  In fact they know how to transform debt to wealth.

However  for the average person …personal debt is a  living nightmare that is affecting his family and financial well being.

One of the main reason most people end up broke and retire penniless is this: they spent most of their working life servicing debt instead of saving and investing money for their retirement.

Personal debt is a modern day Trojan horse that could torpedo you chances of becoming financial free.

The only reason why we have a prolonged recession in the United States of America and many parts of the Western world is high level of personal debt.

If you think I am joking here are some statistics:

 

As you can see, card debt is worst type of personal debt you can owe.

If you don’t pay off your credit card debt, it’s as if you have a big hole at the bottom of your piggy bank.  This hole will continue to leak money out of your piggy bank until you pay up.

This is why you must try as much as possible to clear your credit card debts or else you’ll never be able to have a shot at becoming wealthy.

You’ll always feel you are taking one step and then two steps backwards

I give this advice to you because I have owed debts at one point to the tune of over $50,0000.

Yes, I have been in debt, and I am still clearing debts.

The good news is …it does not matter how much you owe right now…you can use get out of  debt.

All you need to do is make a commitment to never allow  your debt to ruin your  dreams to retire wealthy.

Even if you cannot clear your debt immediately, … you must develop a plan to eliminate it. You can transform debt to wealth

How  I  dug myself out of  personal credit card debt

One way I have used to clear my  card debt balances… is to come up with a fixed repayment sum in addition to making minimum payments.

I use this fixed sum to pay down the highest interest loans first until I pay down the balance.

The next thing I do is to pay the next debt with the sum of the minimum payment I had made on my other and my fixed sum.

When you use a fixed sum (call it accelerator margin) to pay off your  card debt,  …you’ll snowball your repayment

and you should eliminate all your personal debt within 7 years.

 

I have mentioned eliminating personal credit card debt, as part of your wealth building goals.

I know you may be thinking “is it bad to borrow money?”

 

The answer is no, if you can afford to repay…or if you are borrowing money for investment in rental real estate that can repay the loan …or for a profitable business venture.

 

The key to managing personal debt is to only borrow money that will make you wealthier.

When you borrow money to buy consumer goods that you cannot repay, you’ll create a financial burden for yourself

 

On the other hand, when you are debt free, you will live within your means…save more and have enough money to invest so you can retire wealthy

 

The bottom line is this … if you are debt free … you’ll save enough money each month…and invest your money regularly.  And its a sure thing you’ll end up a millionaire at retirement.

Yes you’ll end up being wealthy, that is… if you have 20 years to retire and can stay focused.

 

If you want to be wealthy, you need to must make the pledge to be debt free

 


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