Get out of debt plan and consolidation program.

A personal finance and free online debt reduction planner website base on christian money management.

An Online Free Christian Magzine on money issues

Debt Management Part 2

Last chapter we spoke of thinking Long Term, and in order to think long term, you need a plan.Why banks loan out money, it is part of a long term plan, think of the interest you are paying them every month, it may not seems big to you, but if you multiply that by thousands and millions, you will get the idea.

Goals setting is part of the plan. Your goal right now is to be debt free, of course along the way you may need to set smaller goals, that way you will be able to take it at bite size. As you have heard “A man does not plan to fail, but they fail to plan”. So if your goal takes you ten years to reach, and along the way you have to make some ajustments, that's okay. The essence of goal setting is to set a destination and arrive.

There are three types of goals, the first are Short Term goals. They are goals that can be achieve within a year. For example you have been craving for that high-tech gadget which cost $2400. So you plan to save $200 monthly and within a year, you can go and purchase that gadget you have been dreaming of. The second is Mid-Term goal. Mid-term goals need between 1 to 5 years to achieve. A good example will be saving up to buy the dream car of yours. By setting a side some budgeted money every month, you will be able to achieve that within your time frame that you have set for yourself. The third one is Long-Term goals. Any goals that takes more than 5 years to achieve are long term goals. If you have been saving to invest in mutual funds and allow the compounded interest to accumulate over time, that is long term goal setting.There are also some keys to define a goal setting.

Step 2
Firstly, it has to be achievable, if your goal is to be the youngest F1 driver champion in the world and you are living in the mountains, well, I think that is pure day dreaming. Secondly, it has to be measurable. The last chapter you have already assess your debt situation, if you have not, go back to debt consolidation part 1 and read it up, if you have read debt consolidation part 1 and still do nothing about it, do not go any further because you are not serious about getting yourself out of debt. If you are serious about managing your debt, do it this instance. The third will be determination, the “nothing is over till it's over” attitude. If your attitude is easily swayed by negative remarks, you have to work it out yourself. Sticking to the plan is important. And finally, Time.

In every goal setting, you need to have a cut off date, or time set. If your goal is becoming debt free, that is simply not enough, you need to set a time for yourself to reach that goal.Okay, now we know that your goal is to become debt free. So along the way you will have smaller goals, and the first one is “Emergency fund”. You need to save up to 3 months of emergency fund within a year. You may think that it's crazy, if you are capable of doing that, you won't be reading this right now. But let me tell you, every financial expert will advice you to do that. Just imagine that you are out of work in such uncertain times, you still have 3 months of savings to live on. And usually 3 months is a long time, and it is enough to turn things around. So having that life line is important. So don't sweat about it, it is not as hard as you thought it might be, we will let you know how to do it in later chapters. I can't tell much enough that this journey is not a short trip, so motivation is important. Keeping good records of your goal sets is a must, when you look at the records after a few months, you may discover that you have completed 15% of your journey . And the closer you stick to your goals the clearer your goals will materialize. Don't lose heart, find some support from your wife or friends, remember you will emerge a winner!

Debt Management Part 3

<Previous page on part 1 ||||||||||||||||||||||||||||||||||||| money budgeting - part 3 >

Website for Christian man on christian riches and christian wealth building, free debt reduction, christian money management and various issues. Free debt consolidation and management helps individuals get out of debt fast. Money issues providing self help articles on investments and getting rich. Absoluteguys covers USA, UK, Australia and Singapore.

Home / Christian Money / Personal Finance/ Community / Sitemap / Absolutedirectory / Sitelist / Debt Free Search Results / Money Blog

ALL COPYRIGHT OF WWW.ABSOLUTEGUYS.COM 2006 an online Debt Reduction Planner and Christian Money magazine