fbpx

Our Debt Free Family

Commit. Plan. Take action.

Barbara Friedberg Shares Her Secret to Wealth

| Leave a Comment

<p>Barbara Friedberg and I had a chance to sit down and have a chat recently. Usually, when I talk to people about their finances they are sharing some inspiring and amazing debt freedom stories. What is most inspiring about what Barbara had to say is that she never really had any debt, to begin with. For her, the idea of accruing debt never occurred to her. (Why couldn’t I have had that mindset, right?</p>::Pexels

Barbara Friedberg and I had a chance to sit down and have a chat recently. Usually, when I talk to people about their finances they are sharing some inspiring and amazing debt freedom stories. What is most inspiring about what Barbara had to say is that she never really had any debt, to begin with. For her, the idea of accruing debt never occurred to her. (Why couldn’t I have had that mindset, right?)

Here’s a look at the highlights of our discussion and the full video below.

What is the ‘Secret’ to Wealth?

According to Barbara, the secret to wealth has been hustling. There has never been a time she and her husband didn’t have multiple jobs or hustles at once, she said during our interview. Here are a few more of the highlights of the discussion…

  • Investing is a huge part of Barbara’s key financial plan. She emphasizes that everyone should invest in some fashion.
  • Emergency funds are another must, but it should be whatever amount makes you feel comfortable (i.e. three months, six months, or a year+ of expenses).
  • Be flexible with your finances, especially right now. Be ready to make changes and look for new ways to make money.

Have a listen to the full chat below.

Final Thoughts

I enjoyed getting to talk to Barbara. Her mindset and ideas about money are something to be looked to for motivation. No matter where you are financially, you can hustle and make your goals happen and succeed.

As far as the secret to wealth or success in your finances, I think Barbara was right in many ways. You have to be willing to be a little uncomfortable to truly improve your situation. No good change comes from being comfortable. Paying off debt is uncomfortable. Living frugally to meet savings goals can be difficult. Hustling to get by or meet your investing goals can be nerve-wracking.

In the end, though, it is all worth it. Your financial freedom will be your reward. For every uncomfortable moment during your journey right now, infinite comfort awaits once you are free from financial worry.

Read More

How Brian Paid Off $30,000 in Student Loan Debt His First Year Out of College

| Leave a Comment

<p>Any time someone chooses to seek debt freedom and succeeds in it is amazing to me. Dave Ramsey’s “debt-free scream” is always a heart-warming celebration to see online and speaking to people who have paid off debt always inspires me. Brian Meiggs’ story is yet another inspiration. He took the time to participate in a quick Q&A to share how he paid off $30,000 in student loan debt.</p>::Pexels

Any time someone chooses to seek debt freedom and succeeds in it is amazing to me. Dave Ramsey’s “debt-free scream” is always a heart-warming celebration to see online and speaking to people who have paid off debt always inspires me. Brian Meiggs’ story is yet another inspiration. He took the time to participate in a quick Q&A to share how he paid off $30,000 in student loan debt.

How He Paid Off $30,000 in Student Loan Debt

When it comes down to it, Brian was able to pay off his student loan debt by pure determination. When he graduated, that was his sole focus. He did not want that debt to have a hold over him for 10+ years, as it does with so many other graduates. Here is how Brian Meiggs got started on his journey and led him to debt freedom.

<p>A: My name is Brian Meiggs and I’m an entrepreneur who spends most of my time building finance-niched websites from the ground up and making them profitable. Some of my recent projects include My Millennial Guide, Saving Junkie, and SavingExpert.</p>::PexelsQ: Tell me a little about yourself. What inspired you to seek financial freedom?

A: My name is Brian Meiggs and I’m an entrepreneur who spends most of my time building finance-niched websites from the ground up and making them profitable. Some of my recent projects include My Millennial Guide, Saving Junkie, and SavingExpert.

I’ve always been a hustler. In college, I bought used iPhones and flipped them for a profit. I had a few corporate finance jobs after college, but I found myself bored and without a purpose. I knew I didn’t want to work a 9-5 until I retired so I looked for a way out. I started a blog and eventually, it took off, and now I do it full-time. I enjoy every moment of it and the freedom it brings.

Q:  How much debt have you paid off?

A: I graduated from college with around $30,000 in student loan debt. Being a 23-year-old, that is a lot of money. I spent so much time building a rock-solid budget and maximizing my income in order to tackle this debt. I paid off all of my student loans within one year of graduating college. It was so liberating.

Q: How long had it taken to get to where you are financially?

A: It definitely took me a while to start making my desired income. I thought back and reflected, “man, I’m really doing it!” What helped me reach my income goals was looking at other bloggers who were making anywhere from $10,000 to $30,000 per month. I figured if they could do it, why can’t I?

It wasn’t until my 3rd year of blogging that I felt comfortable with quitting my day job. I was working as a Credit Risk Manager making around $85,000 per year. Once the income from my blog was making me more money per month than my job, I felt comfortable quitting.

I have a funny quitting story, but that’s for another time. Now, I’m making more than six figures per year with all my websites. I simply enjoy the financial independence and not the money itself.

Q: What was the key to your success?

A: My success came from looking at other bloggers who were successful and trying to make my website better. I’m at a tipping point where if I really want to grow, I’m going to have to hire a full-team to help with management. I really enjoy running everything myself but if I want to continue to grow, this needs to happen.

Q: What is the most important part of your finances?

A: The most important part of my finances is continuing to maintain the lifestyle I am currently living. I’m not opposed to splurging on things that I want or saving every penny. I recently purchased my dream exotic car (BMW i8) and I have no regrets about it.

Q: How do you stay debt-free now?

A:  Staying debt-free is done successfully by spending less, finding additional sources of revenue and scaling that up, and having a budget that I actually follow.

Q: What is something you wish you could tell your younger self about money?

A: Money is passive. It comes and goes and while it can make you temporarily happy, creating memories and experiences whether solo or with friends and family, that’s more valuable.

Q: What is your favorite quote?

A: “The root of joy is gratefulness”  – Brother David Stiendl-Rast

Q: Is there anything you would like to leave readers with?

A:  I just wanted to thank you for reading my story and learning a bit about me. I would say the best way to invest is in yourself. Never stop learning or teaching yourself new skills. Every day you should be better than the day before. What do you want in life? Go out and get it. Perseverance is failing 19 times and succeeding the 20th. 

Closing Thoughts

Looking at the success in Brian’s story and how he paid off $30,000 in student loan debt, I thought to myself, “Man, I wish I had done that!” Could you imagine starting out your adult life with absolutely no debt? Hopefully, sharing his story inspires other young people to consider doing the same or taking similar approaches to pay off debt and focus on financial freedom.

Readers, what do you think about Brian’s story? How would paying your student debt off immediately impacted your finances? Was it ever a possibility? 

Read More

How to avoid the common mistakes in the stock trading business

| Leave a Comment

Everyone wants to become a professional stock trader. Those who are skilled at trading make a decent profit without losing too much money. For the safety of the trading capital, you must follow a strategic approach and take the trades with proper discipline. As you gain more experience with this market, you will slowly learn to avoid the most common mistakes in the stock trading business. Sadly, the new traders in Hong Kong don’t even know what their mistake is. They are using the most aggressive method and trying to earn huge money without knowing about the key steps to take the trade. For this reason, some of them even blow up the account. Today we will teach you to avoid some of the common mistakes in the stock trading business. [Read more…]

Why is No One Talking About Shopping Addiction and Bankruptcy?

| Leave a Comment

<p>There is no doubt that your finances can have a hefty toll on your mental health and vice versa. I have been talking to more people about their money for the blog and just to make talking about finance a norm with friends and family. While discussing personal finance with them, I’ve noticed something many people aren’t talking about: the correlation between shopping addiction and bankruptcy.</p>::Pexels

There is no doubt that your finances can have a hefty toll on your mental health and vice versa. I have been talking to more people about their money for the blog and just to make talking about finance a norm with friends and family. While discussing personal finance with them, I’ve noticed something many people aren’t talking about: the correlation between shopping addiction and bankruptcy.

On an even broader note, many people don’t seem to notice the correlation between mental health and finance either. But don’t be fooled. Both addiction and mental health can have a profound impact on your financial situation and leave you stuck.

A Correlation Between Shopping Addiction and Bankruptcy?

I know a few individuals who have filed for bankruptcy. That is absolutely terrifying to me, but for many people who have filed, it doesn’t seem to phase them a bit. In fact, almost all of them have open, recurring debts for things they don’t really need. Programs like Afterpay and Klarna have only exacerbated this issue.

Even though they have filed for bankruptcy, which means they are holding much more debt than they could ever pay off for the foreseeable future. This has to be proven with documentation and, even then, you still may have to forfeit assets and pay off debts for another five years before they are erased.

However, filing for bankruptcy is doing nothing for the impulse control disorder that leads to compulsive shopping. For individuals with these control problems, bankruptcy offers them a clean slate to shop even more with new credit.

Are You a Shopping Addict?

While it is not formally recognized as a mental condition, shopping addiction is a real problem for many people. Luckily, it is manageable with therapy and direction from professionals. You may have a shopping addiction if any of the following applies to you…

  1. You spend a lot of time thinking about shopping and planning purchases. We aren’t talking about meal planning and budgeting here.
  2. It becomes evident that shopping interferes with other parts of your life (i.e. your financial future).
  3. Whoops! You go over your budget fairly often and rely on credit regularly.
  4. Your debt and finances as a whole are just entirely too complicated.
  5. There are secrets you keep about shopping.
  6. You have found that shopping gives you an almost euphoric high.

If you find yourself agreeing with more of these than not, you may want to seek help in getting your spending habits under control. You can also attend anonymous groups for addiction that allow you to connect with others who have gone through similar situations. Once you have a handle on how to change your habits, create a plan to move forward with paying off your debts.

This will ensure you break the cycle of shopping addiction and bankruptcy.

Mental Health and Personal Finance

Shopping addiction isn’t the only mental health issue impacting personal finance either. Addiction in general can have a wicked effect on a person’s finances. Additionally, mental health conditions, such as depression, anxiety, and cognitive disorders can also have a serious impact on the way you spend, save, and accrue debt.

In general, poor mental health can make it extremely difficult to manage and even earn money. Then, once you realize your finances are not in order, your anxiety about your money will just increase. Things can quickly start to seem overwhelming, even impossible.

Final Thoughts

All of these things can be helped, can be treated, and need to be talked about. The problem is, many people want to skate around the issues with bandaids or temporary fixes. That is why this week I’m asking why is no one talking about shopping addiction and bankruptcy?

Talk about money, debt, mental health, and hard issues with your close friends and family. Removing the stigma around these topics can help everyone heal and do better.

As always, if you or a loved one is suffering from substance abuse, addiction, or mental health issues, call the National Mental Health Hotline at 1-800-662-HELP (4357). They can help direct you to professionals that can better assist in dealing with the problem at hand. 

Read More

It’s Okay to Call It Quits

| Leave a Comment

<p>If you have been following the blog, you know our move to Atlanta has been less-than-kind to us. From the job we moved here for going out of business to relocating again within the city to the craziness going on everywhere in the world, our fight-or-flight instinct is kicking in and everything in us is saying flight.</p>::Pexels

If you have been following the blog, you know our move to Atlanta has been less-than-kind to us. From the job we moved here for going out of business to relocating again within the city to the craziness going on everywhere in the world, our fight-or-flight instinct is kicking in and everything in us is saying flight.

What Now?

That being said, we’ve decided to move again to somewhere cheaper and somewhere that has been calling to us for a while: The great state of Tennessee.

We’ve made it a personal goal to be moved by the end of the year. Currently, Chattanooga is looking like the top pick, though we have looked farther north in Eastern Tennessee as well. After doing some research, the cost-of-living there is much less and our taxes will be lower there, with us both being self-employed.

On top of that, the move all-around will buy us some happiness. We have always loved Tennessee and the mountains. Not to mention, we would be able to leave Atlanta behind and truly get a fresh start, with better financial prospects on the horizons (seriously, at least $400 in savings in rent per month alone). At the same time, we will only be about an hour and a half from our new friends here in the city.

It’s Okay to Call It Quits

I’m not going to say calling it quits doesn’t suck in some ways. It definitely does. We moved here in March of last year with stars in our eyes, thinking Atlanta would be life-changing for us and bring new opportunities. It just hasn’t been what we thought it would be or what we needed it to be.

You know what? That is okay.

What isn’t okay is continuing on in a place and mental space where you are mentally drained constantly. So, if your sanity relies on it, and (in our case) your finances also benefit from it, it is okay to call it quits. You aren’t a failure. This experience, place, thing, plan wasn’t for you.

Lessons Learned

Before we do move, we have discussed some overall lessons learned from this…

  • Don’t move anywhere that you’ve never spent time. At least go check it out for a weekend before making the decision.
  • Just because you can afford it doesn’t mean you should do it. This is especially the case with housing – we are overspending in Atlanta in a huge way.
  • Don’t be afraid to say no and also don’t feel like you owe anything to anyone. A lot of our problems here in Atlanta were due to us giving loyalty to people that didn’t deserve it.

Final Thoughts

This can be a hard thing to swallow, especially when you have put a lot of time and effort into making something work. However, it applies to just about everything in life: relationships, jobs, situations. It doesn’t make you a quitter or a failure. It means you know you want something different.

One thing we are both looking forward to is what this move will mean for us in terms of our debt freedom journey. I can’t wait to keep you updated on preparation for the move and how we continue to tackle our debt in the months to come.

Readers, have you ever moved to improve your lives financially or otherwise?

Read More

A Few Things to Know About Loans

| Leave a Comment

The current life standards have forced many people to think about the option of getting a loan whenever they want to buy something or enjoy a good holiday abroad. Even though people are paid much better than 20 or 30 years ago, the standards have risen to a point where you need to apply for loans several times throughout your life.

This is not something that we should be ashamed of. After all, those are things that we have to get used to. Some research has shown that more than 60% of the people in the world are living in some kind of debt. There are many things to know about loans and paying them off, but we wanted to share a few interesting facts about them which are highly informative.

Debt Consolidation

When you get a loan, it’s important to have a plan on how to pay it off. If you don’t have a plan, you might end up not being able to keep up with the monthly payments which can lead to a lot of trouble. One way to manage to overcome a problem like this is debt consolidation.

Debt consolidation is a form of refinancing in which you take a loan which will pay off all other loans. There are many advantages to it, like lower interest rates, fresh start on monthly payments, etc. But, these advantages come only if you get this type of loan form a good and credible company. So, it’s extremely important to choose a good company which will help you deal with your financial difficulties.

The overall lower interest rate is what makes debt consolidation loans so popular and handy for anyone who is having trouble paying off their debts. With this type of loan, the repayments can spread over to a larger period.

They Are Available Online

As we all know, there are plenty of advantages that came with the rise of the Internet. Many services have been made available online. Such is the case with online loans. Many online lenders hand out loans to people all around the world and they became extremely popular lately. The reason for that is that they are very easy to deal with.

Online lenders are flexible with their clients. To make things even better, their approval rates are much higher than the ones of the banks. Online lenders have a 70-75% approval rate, whereas the banks have around 55-60%. The applying process is also much faster – all you need to do is fill out an application and wait a few days for feedback.

Countries With Low Interest Rates

The top 3 countries with the lowest interest rates in the world are Switzerland, Denmark, and Japan. The good economic state, as well as the politics of the countries, have been huge contributors in making them stable and ‘affordable’ to the people. Feel free to check out the top 5 list here.

Side Jobs Can Help You Pay Loans

This may sound a bit funny, but many people around the world take up some side jobs as a way to help them pay off their debts. And they can extremely helpful, a lot more than you would think. There are plenty of easy profit-making side jobs that can better your financial status and ease your worries when thinking if you are able to pay off your debt. Going online to make money is also a good idea.

5 Things to Avoid to Live Debt-Free

| Leave a Comment

<p>Reaching financial freedom is far from easy. Only 29% of Americans consider themselves to be financially healthy. Once you obtain debt freedom, you want to be able to stay there. So, there are several things you’ll want to avoid to live debt-free.</p>::Pexels

Reaching financial freedom is far from easy. Only 29% of Americans consider themselves to be financially healthy. Once you obtain debt freedom, you want to be able to stay there. So, there are several things you’ll want to avoid to live debt-free.

1. Budgeting is Always Crucial to Your Financial Health

You had to budget to get out of debt. That doesn’t stop just because you no longer have creditors to pay off. In fact, budgeting is even more important once you’ve paid everything off. If you don’t set a budget you run the risk of racking up debt again if an emergency arises.

Remember that your budget needs to be 100% cash. Don’t consider your credit cards or any other form of money spendable.

2. Overspending is a No-No If You Want to Live Debt-Free

That directly ties into overspending. If you start considering the money available on credit lines to be spendable, it is more likely you’ll restart the cycle of debt in your life. You certainly don’t want that after all of your hard work to get where you are.

Instead, plan for bigger purchases and save up for what you want. You should also have a set budget for recurring expenses and other plans. Don’t deviate from that budget.

3. Don’t Stop Saving Your Money

Saving money isn’t just important during your debt freedom journey either. As mentioned in the point above, it is important to save money for large purchases and planned expenses. However, it is also always a good idea to keep money saved.

Having an emergency savings fund will keep you from tapping into credit lines if something comes up. Additionally, saving money can help you secure your financial future and ensure you’ll be able to retire someday.

4. Giving Up on Investing Isn’t an Option

When it comes to saving for retirement, you should also continue to invest while you live debt-free. Even though you may not have as much cash flow or you may be tempted to spend cash, it is a good idea to invest in a diversified portfolio.

Not only will this allow for you to have financial freedom throughout the rest of your life but it can help you expand your current finances. Avoid being afraid of the stock market once you’ve paid off your debts.

5. Neglecting Insurance Will Cost You

Renter’s insurance, homeowners insurance, car insurance, and health insurance. Purchasing coverage is important to protect your finances. In the event of an accident or emergency, these policies can help you avoid racking up debt.

Even though the monthly cost of insurance may seem like a pain, it can help you replace damaged items, restore your health, and protect your belongings. Without it, it is easy to swipe your credit card. Insurance is crucial if you want to live debt-free.

Readers, what else would you add to the list? How do you live debt-free?

Read More

How to Choose the Best Loan for Your Needs

| Leave a Comment

<p>Starting a new business means a lot of expenses. Rent, employees, stocks, just to name a few of the expenses that every new business faces on a daily basis. Sometimes, it’s hard to make ends meet. That’s why loans are there to help you cover those extra expenses that would otherwise be impossible to afford every month. They help you address specific needs and find ways how to support financially your business. After all, there’s isn’t a business that doesn’t need a little extra money.Capture Alt Title There are different loans according to the sum of money and the conditions. It’s very important to estimate the capacity of your business company to deliver reimbursement on time and pay the whole amount of money in the given period of time. Banks and other financial institutions offer a variety of loans under different financial conditions. Check out the regulation before you decide on which loan suits your business the best. Here is a list of loans most popular among business companies nowadays.</p>::PexelsStarting a new business means a lot of expenses. Rent, employees, stocks, just to name a few of the expenses that every new business faces on a daily basis. Sometimes, it’s hard to make ends meet. That’s why loans are there to help you cover those extra expenses that would otherwise be impossible to afford every month. They help you address specific needs and find ways how to support financially your business. After all, there’s isn’t a business that doesn’t need a little extra money.

There are different loans according to the sum of money and the conditions. It’s very important to estimate the capacity of your business company to deliver reimbursement on time and pay the whole amount of money in the given period of time. Banks and other financial institutions offer a variety of loans under different financial conditions. Check out the regulation before you decide on which loan suits your business the best. Here is a list of loans most popular among business companies nowadays.

Personal Loans

Personal loans are the most convenient method to receive the funds that you need. The money that you borrow from a lender you need to return them back, and you pay an interest rate for a given period of time as mentioned in the bank contract. You can use the money from a personal loan for whatever your needs are. For example, you can pay off credit card debt with a personal loan.

The benefits of personal loans are numerous, especially when want to pay off the debt for a longer period of time. To qualify for a personal loan, borrowers need to fulfill several criteria, like credit report, credit score, and debt-to-income ratio. You need to take all of these things into consideration and discuss them with your bank to find out whether your current financial situation allows you to receive a persona loan. To receive the lowest rates for credit, you need to have an excellent credit score, among other things as well.

Term Loans

Term loans, also known as long-term loans, are the most common loans nowadays. Business owners looking for high funding shouldn’t look elsewhere. They aren’t very appropriate for recently opened businesses because lenders want to make sure that you have a clear track record. Applying for a term loan takes a longer time than for other loans. Once the application is accepted, borrowers need to pay a principal amount. Afterward, what follows is the regular monthly payment of the principal amount plus the interest rate according to the contract’s conditions.

Short-term Loans

When you’re in a hurry for fast cash, a short term loan is the solution to your problem. Unlike the term loans, they don’t need a track history to be eligible to apply for a short-term loan. They don’t include loads of paperwork and long processing procedures. In fact, you neither need to have a great credit score, nor there is a need to wait a long time to receive your payment. Whether you want to expand your business or recover from the financial crisis, short-term loans are the answer to your problem.

However, paying a short-term loan must be made for a short amount of time. Unlike the term loans, you need to repay the whole amount of money for the time specified in the contract. Payment schedules may be weekly or monthly, while usually repaying the loan amount is no longer than two years. You need to look elsewhere for financing when the loan amount is not enough for financing your business.

For more of our great articles, read these:

 

How Often Should You Review Your Budget?

How Much Income Do You Need To Afford A Million Dollar House?

 

Financing Your Small Business

| Leave a Comment

You’ve got the idea, you know who your customers are, and it looks like everything is falling into place. However, making those plans realize is the harder part of every plan. The thing that some people need to make their ideas make to happen is money. No one can deny it that financing a business is a challenge that almost every business company nowadays faces on a daily basis. There are different ways how you can make things happen simply by thinking out of the box how you can finance your business company.

Probably, the first thing that falls on your mind is loans. There are different types of loans nowadays. Short term, long term, loans… They are still the most convenient way to help your business grow. They allow you to choose the tempo of how you’re going to disburse the money, the amount of money that you need, as well as the time you need to get your loan paid.

However, credit cards also give you benefits and have more advantages over the personal cards. It’s a good idea to keep your personal funds and your business finances on a separate account. To save yourself from terrible headaches, here are a few suggestions on what you can do to finance your business today.

Personal Loans

The most popular ways to finance your business are loans. The reason behind this is the possibility to get an amount of money to help you realize your business idea. You get the money for a short amount of money and you can plan ahead what you’re going to do with that money. By definition, you decide the amount of money that you need and banks define the rates. That’s why it’s important to evaluate the real need that you have for your business idea and make a plan of how you’re going to get that money back to the bank.

Many people are still in doubt about which loan type fits their business the best. If you chose a personal loan or a business credit card, the decision is up to your preferences. Both methods to finance your business have their advantages. For example, personal loans have never been easier to get. Especially when it comes to online loan lenders, they have a very high approval level up to 80%.

On the other hand, business credit cards give you the stability that your business company needs. The procedure for applying for a business credit card doesn’t take too long and you can enjoy the services that your bank provides to your business company. Also, business credit cards make it easier for you to control your financial situation at the moment and take advantage of credit card allowance.

Credit Cards

The question then arises which method will work the best for your business. Both types of financing your business have advantages. It’s upon you to decide what your priorities are and what your business company would benefit from the most. When running your business alone, it’s a smart idea to have a business credit card.

It makes it easier to control your funds and fall into a debt trap. For bigger companies, it’s a must to have business credit cards. They are not only useful to separate the funds, but also to have more flexibility with loans and leases later on. However, it makes things easier because all you need to do is apply for a new business credit card. In other words, you can still enjoy the same privilege as a client of the bank’s services.