Some people think that debts and loans are normal. An integral part of modern life. “Loans are needed to take them,” they say.
And because they live head over heels in debt. All life.
If you had everything in order with money - would you take a loan?
Would you humble yourself in front of bank clerks, convincing them that you can pay the debt?
- Would you put yourself in a stupid position, confusedly calling a friend and asking once again to help you out with money?
- Would you be chained to work by credit chains, voluntarily surrendering yourself to slavery of monthly payments?
No wealthy person will take a loan. Loans are not at all “a normal part of modern life”.
And by the way ... loans are inherited. According to the Civil Code of the Russian Federation, in the event of the death of a borrower, his heirs are required to pay the loan.
How do you like the idea of leaving your children a legacy ... a loan that they will carry like a cross? Like? What would a child say to that?
Certainly not “Thank you so much, mommy!” Or “You're the best in the world, daddy!”.
And even if you do not get loans for children, your credit thinking, if you do not get rid of it yourself, will inevitably fall into their brain. Like a dangerous disease. Like a cancerous tumor of consciousness.
Loans are inherited. Did you know?
“Credit thinking” leads to permanent loans and debts.
Credit thinking is the inability to admit that you do not have something. That you cannot afford what you want. That you don’t have enough money. That you won’t have something.
This behavior is weak. You can’t achieve, earn, and surrender to slavery.
Addicts behave the same way. They cannot refuse a temporary high. Although they understand that they themselves are ruining.
When you take out a loan, you act like a drug addict. You are not able to give up momentary pleasure - and surrender to credit slavery. How long will you enjoy the new purchase? Day? A week? Then the buzz will pass, but the loan will remain.
Credit thinking is the inability to admit that you do not have something.
If even you yourself do not open loans, then because of credit thinking you can run into other people's debts.
"I was the guarantor of a friend’s loan, the second guarantor was her daughter. The loan was paid back 90%. She was penniless. Suddenly my friend dies. The court orders me to pay back the amount equal to the loan again. After 3 years of trial, the appeals court decided to divide the debt by 2 guarantors, despite the daughter’s statements about transferring the entire amount to her. Now the daughter pays as much as she can for me and herself for the second year. "
There are other options:
- You gave a friend money in debt, and he fell through the ground. Does not call, does not answer calls, avoids you. No money, no friendship.
- Your relatives are constantly sitting on your neck. They ask for a loan, promise to give it back, but in practice they “forget” about it. And you are ashamed to remind them and demand their money, somehow uncomfortable - it seems like people are still relatives.
- You took out a loan “for someone”, but you took out a loan for yourself. Then the relationship fell apart, a man somehow left your life. But the loan is left to you, and pay it to you.
What to do with all this? Get rid of credit thinking by following three simple anti-credit principles.
Positive cash flow
Cash flow is the difference between your income and expenses.
- If you spend less than you earn (that is, you have something left) - the cash flow is positive.
- If you spend more than you earn (that is, borrow, borrow) - the cash flow is negative.
It is cash flow that determines whether you feel secure, whether you feel safe. And not income, as is commonly believed.
Many high-income people spend exorbitant amounts, more than they earn. And even with large incomes they don’t feel well off.
Cash flow needs to be maintained positive. That is, live within our means, spend less than you earn. Ideally, running expenses should go no more than 50% of your income.
Cash flow (not income) determines your financial stability and security.
Cash flow is not an easy topic, it’s worth a good understanding if you want to solve problems with money.
Maintaining a positive cash flow is only possible if you follow the principle of “deferred compensation”.
Deferred remuneration is the ability to work today to get results sometime in the future.
Live within our means today so as not to have problems with loans later. Invest in training today to create new sources of income in the future. Slowly develop your business today (even without income) in order to be provided in a year or two.
Most people do not know how to live in a deferred reward mode. They spend more than they earn, plunge into debts and loans, cannot refuse optional expenses.
Deferred remuneration is not the same as saving and stingy. No need to deny yourself everything.
You just live within your means. I am pleased to buy what you have enough income for. Gradually, you increase your income, and your “within your means” becomes more and more.
Energy is resources, abilities, attention, strength, human skills. We use this word in a worldly sense, without any mysticism.
Money is a measure of energy. You used your skills and strengths and got paid for it. They exchanged their energy for money. Money can be exchanged back for energy - for the abilities and skills of other people. That is, buy something
- When you spend what you earned, your purchases match your energy level. You spend available energy - which you already have.
- When you take out a loan (that is, spend what you have not earned yet), your purchases DO NOT MEET your energy level. You spend your future energy, spend your future life.
Credit is energy outflow. You are wasting energy not on your life, but on maintaining a loan.
Hence the unpleasant feeling of burden on your shoulders when a loan or debt hangs on you. And a sense of relief when you get rid of it.
For the same reason, debts destroy personal relationships. If you want to quarrel with someone - borrow money from a person, or give a loan.
Do not take loans. Spend the energy that you have. Do not waste energy from a future that you do not have yet.
Money is a measure of energy. When you spend credit money, you spend the energy of your future. Spend your future life.
How to get rid of debts and loans?
Now you are helped by the three principles of a life without debt:
- Positive cash flow. Spend less than you earn. Maintain a positive cash flow. Plan your expenses so that you spend no more than 50% of the income.
- Deferred remuneration. Invest today to get results tomorrow. Live within your means, and gradually increase your income.
- The available energy. Do not take loans, do not waste the energy of the future. Spend what you have already earned - available energy.
If you have already accumulated debts and loans - you cannot get rid of them overnight. But if you follow these three principles, then gradually close the loans and you will be free.
1. Put the money in place. To the right place
David Krueger, a financial trainer and former psychiatrist in Houston, Texas, claims that people often use money as a means of self-affirmation. “We attach great importance to money and make it a synonym for opportunities, the embodiment of power and the proof that we are worth something in this life,” says Kruger.
Think about what values have become the embodiment of money for you. Just ask yourself questions:
- Why are the most expensive, branded things important for my image?
- Why is money so important to me that I sacrifice my health for it?
Answer them honestly, but rather write down. This will help you take a different look at money, and from the right attitude to solving problems is one step.
2. Credit is an illusion of freedom
One recent study showed that most often people borrow to feel stronger and freer. When you have already spent all that was possible with your credit card, when you increase the limit, you feel the release. Likewise, taking the next few thousand, you feel freer and stronger than before, even if the amount of your debts is already pulled by the kidney and lung.
This is a matter of short-term perception. You know that you have to give more, but NOW you have more opportunities, and it's nice. Remember that this is just an illusion that will collapse very soon, it will help to spend a new loan more rationally or not to take it at all.
3. Bleed the "muscles of self-control"
Roy Baumeistey, a social psychologist at the University of Florida, investigated the problems of human will and self-control. The results showed that the stock of human willpower is limited. In other words, wasting willpower on some things, you do not leave self-control for others.
But you can turn your attention to finances. Every day, monitor your expenses, write the final amounts and plan more rationally. This will help you pump your "muscles of self-control" towards finance and spend your will on the right things.
4. Do not go to the store when you feel depressed
Studies published in the Journal of Experimental Social Psychology prove that very often people go shopping and make expensive purchases on credit in order to maintain their self-esteem. It doesn’t matter what the ego suffers from: the boss gave a report at work, or on TV they showed once again, “how to live in order to be worthy” - when self-esteem rapidly falls, the ego requires decisive measures.
The author of the study, associate professor of the Department of the London Business School, Niro Sivanatan, says that when buying new, expensive things, people seem to express themselves in a positive way and at the same time they feel whole and full.
The very process of buying an expensive item creates a feeling of comfort.
But the author of the study found a cure for this need: when buyers focused on something else, they remembered what was of paramount importance to them, for example, family, health, relationships with friends, their race for expensive, status things stopped.
Before buying a new expensive thing, you can stop and evaluate why it is needed - for convenience, beauty, comfort, or for your restrained ego? In addition, buying new things will not raise your self-esteem and mood for a long time, on the contrary, the joy of it will pass very soon, leaving only new debts.
5. Beware of the “What the hell?” Effect.
This effect was discovered by researchers from the University of Toronto in Canada and was originally related to diets. It turned out that dieters tend to “break loose” and eat up at the slightest sense of guilt from not following their diet.
That is, a person eats a little more, feels guilty, and says to himself: “What the hell! I ruined everything anyway. ” After that he goes and eats up. This works not only with diets, but also with any manifestation of willpower, for example, when a person quits smoking, becomes addicted to alcohol or wants to stop spending money on unnecessary expensive things.
Stress is born from guilt, a person needs to calm down, and if he is used to calm down in a certain way (usually the one that he wants to quit), this is what he will do.
It works perfectly with debts: a person is in debt, has stress and to take it off, one must take it again - the illusion of freedom and the joy of buying, short-term comfort and stress again. A vicious circle that can only be destroyed by evaluating your emotions. A little self-reflection the next time you go to get a loan, and you will be able to cope with feelings of guilt and stress.
Life without debts
Half of my life went from paycheck to paycheck, but the week before this paycheck, money always ran out ... There were no savings books, like many people did in our family. Our family never parted with debts, debts were faithful companions of life. Then I got married and again the same picture - there was always not enough money.
And they lived like that until I came across George Samuel Clayson's book, The Richest Man in Babylon. Here, the author reveals the secret of the welfare of many people.
The book, as it turned out, is a world bestseller that every millionaire read at the beginning of his life. It's a shame that the book has not come across to me before. But as they say, better late than never.
Very often we do not live as we would like. The presence or absence of money plays a large role in people's ability to cope with life's difficulties. The book "The Richest Man in Babylon" was published in 1926. It has become for many the main guide to managing personal finances.
Every month we receive a salary and completely give it away for food, for clothes, for housing, for the Internet, for entertainment ...
We pay everyone, but do not pay MYSELF!
How to live without debt? Everything is very simple: you need to pay yourself 10% of the amount of salary and other cash receipts - put aside in savings. The main thing is to do this systematically.
Everything is just brilliant! And this is not a discovery. Many, knowing this simple secret, live without debt and enjoy life! But no one taught me this before reading the magic book.
I decided to try it. Everything worked out! 10% was postponed from each cash receipt. Then I took the accumulated small amount to the bank to save me from inflation. The account began to replenish periodically ... Two years ago, I opened a $ account (I was interested in forecasts of the behavior of the currency). Money began to grow.
The opportunity to travel
As time passed, 10% slowly did their job. We lived without debt, an opportunity to travel the world. So I learned to live without debt.
It is proved that you can live on 27,000 as well as 30,000. These 10% even discipline, make you go to the market and to the shops with a list of products or things that you need.
And today's stores are an ocean of temptations! Try to resist! It is not simple. Money is spent on various trifles that catch the eye of a pre-compiled list. In stores, all goods are “traps”, they are arranged according to a special “science of temptations”, but this is another topic.
In my article “Books that successful people read,” I noted the book “The Richest Man in Babylon,” today for those who have not read this book, my information will be useful. The book "The Richest Man in Babylon" is only 78 pages. It can be found on the Internet: buy, download or read - there are many options.
Read without fail, you will not regret it, you will learn a lot of useful things for yourself. I am sure that this particular book will change your life for the better. This is the answer to the question: how to live without debt.
The secret from ancient Babylon
In ancient Babylon there lived a very rich man named Arkad. Legends were made up of his wealth. And he had several friends of youth who once came to him and said:
“You, Arcade, are more fortunate than we are.” Once we were in an equal position. Learned from one teacher. Played one game. And neither in studies nor in games did you surpass us. Why, tell me, capricious fate chose you to give you the joys of life, and left us behind?
And then Arcad answered them:
- I opened the road to wealth when I decided that I should keep part of everything I earned for myself. Getting my earnings, I put aside every tenth of the earned coin. And, strangely enough, I did not get poorer from this.
I almost did not notice the difference in the fact that now I had less money left for expenses. True, I was often tempted to buy myself one of those beautiful things, but I wisely abstained.
“Then what would you advise us to get rich too?” - asked one of the friends.
- Determine what part of the earnings you can save. Try to make it at least one tenth. And immediately set it aside. Soon you will realize what a great feeling it is to recognize yourself as the owner of a treasure, to which only you alone are entitled.
As your accumulations grow, this feeling will become a powerful incentive. Your life will be filled with a new joyful feeling. You will feel a surge of strength and energy that will allow you to earn even more. And the more you can put it off.
Enjoy life while you are alive. Do not overwork and do not try to save more than reasonable. If, postponing a tenth of your earnings, you continue to live comfortably, stop at this share.
Live on income, but don’t be afraid to spend money. Life is rich, and you should not give up its pleasures. ”
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