Rapid ways to make money and get out of debt

Comments 2 Standard

My husband and I completed Dave Ramsey’s Financial Peace Course two separate times. What can I say, we’re slow learners.

But we’re not alone: the average credit card debt load in U.S. households is nearly $16,000. Thanks to Dave Ramsey and our own commitment to building a wealthy mindset, we are well below the household average to now $0.

We make it our focus to rapidly pay off our credit card debt. The solution we keep refining is preventing it in the first place. The leading trigger for household debt is unplanned medical expenses. More than a 1/4 of American households have difficulty paying for medical care, according to the Kaiser Family Health Foundation.

abba, moneyThe irony of the blogs you read giving you tips on how to make money and make it fast, work under the assumption you are in good health and you have the energy to take on an extra job.

So, if you don’t feel good enough to get a job delivering pizzas as Dave likes to recommend, what are some other ways to rapidly raise cash?

Here are a few ideas:

Sell what you have:

  • Pawn some unused electronics, guns, or jewelry. The risk is you might not get the item back if you can’t get it out of hawk, but it’s better than running up the credit card debt. Pawning your goods is less labor intensive than a garage sale.
  • Sell unused gift cards. The Gift Card Exchange kiosks will trade your card with a $20 minimum balance, for a voucher minus its fees for you to exchange for cash at the retailer where the kiosk is housed.

Borrow your own money:

  • Some retirement plans will allow you to take a loan out on yourself. While the money isn’t in the account making a return for you, you are repaying YOURSELF with interest. Doesn’t that sound better than repaying the bank or the credit card company with interest?
  • Borrow from your own life insurance policies. Some whole life, or permanent life, policies will allow you to borrow a certain amount, which you have your WHOLE life to repay. If you don’t get it repaid, the insurance will still pay out the amount of the policy, minus what you borrowed.
  • Do you have a stash of savings bonds you’ve been saving up for a rainy day? If they have reached their term, then you might consider cashing them in because after 30 years, they no longer earn interest.

Increase your income:

If you’re not feeling well, then you might not be up to getting a part-time job outside of the home. No worries. With technology, you can earn money from your bed if you need to. Some ways to do that could be:

  • Freelance writing or building a blog. If you have a unique health situation, then sharing your story to a niche audience may help them while it’s helping you. You may not earn a lot of cash the first day, but if you keep at it, you will overtime. And, you will learn a new skill which you could market to business owners who are too busy to keep up with their own blogs.
  • If you live in a house with a nice-sized yard, then you can dog sit for people who are traveling. Just be sure to check your city’s ordinances before providing this service.
  • Rent out a spare room. This might be mutually beneficial if you’re not feeling well. Knowing another person is within ear shot could give you peace of mind. Even better is if you have educational centers which offer nursing programs. Nursing students or traveling nurses would LOVE the low-cost living arrangement you could offer in exchange for their checking up on you.

Cut your monthly expenditures:

  • We had our car and home insurance company review our plans. During our requested audit, we learned that the company hadn’t given us all of the discounts for which we were eligible. It was an “oversight” on their part. They retroactively paid us over $300 and we lowered our premiums more than $100 each month.
  • If you need the extra cash, you will muster the discipline to change cell phone plans. It’s nice to have all the bells and whistle on your phone, but they’re not necessary. If you start a side business and can show proof of your business structure, you could qualify for cell phone business plans, which can run about $100 a month with unlimited voice, text, and internet.
  • Consolidate your debt and look for introductory rates for credit cards. But a word of caution, make sure you mark it on your calendar when the introductory rates end, or you could find yourself owing more than when you started.

While spending money seems to occur more rapidly than making money, take heart. You do have options to keep yourself from drowning in debt. New Thought, Right Action is here to help you develop the skills and mindsets you need to achieve your financial goals.

via Daily Prompt: Rapid

Set a smart goal and be vague about it

Leave a comment Standard

SMART GOALS

Be
S pecific
M easurable
A ttainable
R elevant
T ime bound

not vague when you are establishing goals for yourself. “I want to lose weight,” is a vague goal. “I plan to lose 10 pounds by my high school reunion in May” is a SMART-oriented goal.

An outline on paper will allow you to reflect on what a SMART goal looks like. Questions to help you think through the five areas of a SMART goal include:

Specific: Be a journalist and ask the five “w” questions. Who is this for and who needs to be involved? What do we want to accomplish? Why are we doing this? Where will the goal be achieved? Which resources will we need?

Measurable: How often will you  measure success. For example, if you want to lose 10 pounds, will you weigh myself daily or once a week? If you want to complete a training module, how may sessions should you complete in a day or a week?

Attainable: Most of us want to be millionaires and that may be a goal that can be attained eventually. But if you need a million dollars by 2 p.m. tomorrow, then you may be setting yourself up for disappointment.  Also, be careful about setting goals that other people have power to approve or deny. If you plan to borrow a million dollars from the bank, then be prepared for them to tell you no if you don’t meet their good credit criteria.

Relevant: You have a higher chance of achieving your goal if it’s a goal you want to achieve. So, ask yourself if this is the right time and if you’ve got the energy and motivation to achieve it.

Time-bound: The brain focuses more when a deadline is set for achieving a goal. So take out the calendar and manually circle the date you want to have your goal completed by. For example, if you want to earn a master’s degree, then find out what all the required courses are plus any required practicums and internships and write down your graduation date. This will give you a realistic view of what your time investment will be to achieve your goal.

One final thing about a goal, though. When you’ve decided on your goal, don’t talk about it. Be vague. In research about this phenomenon, a study documented that people who were praised for working on a goal lost motivation to achieve it because their identity was then tied to the goal. Others often mistakenly praise an individual on personal qualities, rather than process approaches. So, if a person is praised for how smart they are and then they don’t do well on a test, then that sets up a negative feedback loop and prompts a person to be less motivated to try harder on the next test.

So, identify your goals and be vague in sharing them with others but SMART in achieving them.