Sir,
As we know that debt is the very common problem for the middle-class family, as everyone needs money and when we use that money here and there then we understand that the most important work is left and then we need debt, but the problem is we not able to pay that debt on time. But this is a case of middle-class and if we talk about business then debt is very important and common words you today's young entrepreneur.
As it is common to start a business or startup, just like eating a burger, today everyone wants business and startup, yes sir if you read news then you able to relate that lots of people suicide just because they do not get success in there startup, they not even think what is the mistake and if they do not have money then they use debt to start a business. In fact, this is not wrong but only if when you get success in that business because if you want debt for your business then someone trusts you that you get success in that field one day and you pay that debt and due to your mistake you not able to do this.
Today everyone wants to start business and for that lots of people use debt from many institute or individual but they go into very huge burden of debt and one of the most important region for that is they not calculate that what amount they need and when they get success and the perfect time interval to pay that debt.
Due to no knowledge of financial planning, they not able to take a good decision and they stuck between huge debt or EMI.
People think that accounts and finance are the same things but I want to explain it for all my young entrepreneur that rice and wheat are not same means like sky and earth accounts and finance are also different from each other. accounts are making a bill and record all incoming and outgoing money. but finance it take care of money, means real money in a pocket company, not on paper. Many startups fail because they have money in debt in orders but not in hand.
1. Hyper Tension.
2. Anxiety.
3. Blood Pressure.
4. Stress.
5. Depression.
So, remember - To Become happy, you don't need a piece of finance, you need financial peace.
The 1st point is that you have to make a list of all loans it may be a personal loan, home loan, education loan, unsecured loan, car loan, in ascending order according to an interest rate.
Many people do a very big mistake and that is they make an EMI to all, no friends the debt having high-interest rate start the attack on it and try to finish that loan first, EMI having high-interest rate finish it slowly.
Fill the E.M.I as much as increase you can, means suppose if you fill 5000 per month then your debt ends in 41 months but if you calculate then you able to understand that if you fill 20,000 per months then EMI will ends in only 6 months and if you fill 10,000 EMI per months then debt ends in 13 months.
Means if you take more time then you pay more but if you take less time then you have to pay less.
To understand this you have to understand one beautiful quote of Warren Buffett that -" If you buy things that you don't need, you will have to sell things that you 'need' "
If you do not use any items for one year then that item id just a depreciate item in your home. So, you have to sell that item and as you know that due to Quaker, OLX, it is very easy to sell any useless item, so if you sell your useless item then you can get money of 2 to 4 EMIs of small loans.
You have to understand that an intelligent person but appreciating assets but a less mind person only buy depreciating assets. That depreciating assets create burden EMIs in the home.
So, if you are suffering from high EMIs then you have to evaluate some depreciating assets and reduce it to live tension free in which you get-
1. Gratification expenses.
2. Dineout expenses.
3. Entertainment expenses.
Many time wife an husband both are working together then you must try to pay loans from one income and use another income for house expenses.
But in many places only one person is working then you can start planning for some additional work for some additional income and that will be freelance, blogging, industry consulting, Tele-calling, MLM, e.t.c.
To make free from loans it is important to understand how to make less use of loans, and for the use of small money not take loans, for small needs of money always make savings. Invest in liquid funds, means if you invest then good but try to invest some less amount of money which you take any time when you needs.
Have a data-driven approach to your spendings, keep your intelligence above emotions. If you able to plan all expenses in a budget then it controls your emotions to spend here and there which is very important to control debt.
Remember - Those who don't manage their money will always work for those who do.
Budget always helps you to make data-driven spending and control all type of emotional spendings.
If you get any extra amount from anywhere then put it in your loans or debt, means if you get any tax refund, car sale money, property inheritance from a family member, or get any bonus then try to put all these money on your debt not on enjoying.
Because you only enjoy when you do not have a tension of money.
All these are some tips to make you free from all type of debt and all the because today a very big amount of country goes into debt and peoples not able to pay for it. Debt is an important term for family and business and if understand the way to free from debt then you can become a part of best happy family and business.
So, try to take loan or debt in very emergency and pay your debt or loan first before using the money for enjoyment pay it for debt.
As we know that debt is the very common problem for the middle-class family, as everyone needs money and when we use that money here and there then we understand that the most important work is left and then we need debt, but the problem is we not able to pay that debt on time. But this is a case of middle-class and if we talk about business then debt is very important and common words you today's young entrepreneur.
As it is common to start a business or startup, just like eating a burger, today everyone wants business and startup, yes sir if you read news then you able to relate that lots of people suicide just because they do not get success in there startup, they not even think what is the mistake and if they do not have money then they use debt to start a business. In fact, this is not wrong but only if when you get success in that business because if you want debt for your business then someone trusts you that you get success in that field one day and you pay that debt and due to your mistake you not able to do this.
Why Startups Or Business Go Into Debt.
1. Due to the lack of calculation.
Today everyone wants to start business and for that lots of people use debt from many institute or individual but they go into very huge burden of debt and one of the most important region for that is they not calculate that what amount they need and when they get success and the perfect time interval to pay that debt.
2. Lack of Financial Planning.
Due to no knowledge of financial planning, they not able to take a good decision and they stuck between huge debt or EMI.
People think that accounts and finance are the same things but I want to explain it for all my young entrepreneur that rice and wheat are not same means like sky and earth accounts and finance are also different from each other. accounts are making a bill and record all incoming and outgoing money. but finance it take care of money, means real money in a pocket company, not on paper. Many startups fail because they have money in debt in orders but not in hand.
Effects Of Debt.
1. Hyper Tension.
2. Anxiety.
3. Blood Pressure.
4. Stress.
5. Depression.
- These all above problems are affecting your body but it is also very harmful to your business because as you know that a free-thinking is very important for business but due to debt problem businessman not able to think freely and that's why opportunity in business start losing.
So, remember - To Become happy, you don't need a piece of finance, you need financial peace.
8 Ways To Free From All Type Of Debit.
1. List Your Debt By Interest Rate.
The 1st point is that you have to make a list of all loans it may be a personal loan, home loan, education loan, unsecured loan, car loan, in ascending order according to an interest rate.
Many people do a very big mistake and that is they make an EMI to all, no friends the debt having high-interest rate start the attack on it and try to finish that loan first, EMI having high-interest rate finish it slowly.
2. Pay Incremental Gain Exponential.
Fill the E.M.I as much as increase you can, means suppose if you fill 5000 per month then your debt ends in 41 months but if you calculate then you able to understand that if you fill 20,000 per months then EMI will ends in only 6 months and if you fill 10,000 EMI per months then debt ends in 13 months.
Means if you take more time then you pay more but if you take less time then you have to pay less.
3. Sell Unnecessary Items For Aletleast 2 to 4 EMIs.
To understand this you have to understand one beautiful quote of Warren Buffett that -" If you buy things that you don't need, you will have to sell things that you 'need' "
If you do not use any items for one year then that item id just a depreciate item in your home. So, you have to sell that item and as you know that due to Quaker, OLX, it is very easy to sell any useless item, so if you sell your useless item then you can get money of 2 to 4 EMIs of small loans.
4. Temporary Downsizing.
You have to understand that an intelligent person but appreciating assets but a less mind person only buy depreciating assets. That depreciating assets create burden EMIs in the home.
So, if you are suffering from high EMIs then you have to evaluate some depreciating assets and reduce it to live tension free in which you get-
1. Gratification expenses.
2. Dineout expenses.
3. Entertainment expenses.
5. Pay Loans With The Second Income.
Many time wife an husband both are working together then you must try to pay loans from one income and use another income for house expenses.
But in many places only one person is working then you can start planning for some additional work for some additional income and that will be freelance, blogging, industry consulting, Tele-calling, MLM, e.t.c.
6. Have an Emergency Savings Funds.
To make free from loans it is important to understand how to make less use of loans, and for the use of small money not take loans, for small needs of money always make savings. Invest in liquid funds, means if you invest then good but try to invest some less amount of money which you take any time when you needs.
7. A habit of Budgeting is an Extra Blessing.
Have a data-driven approach to your spendings, keep your intelligence above emotions. If you able to plan all expenses in a budget then it controls your emotions to spend here and there which is very important to control debt.
Remember - Those who don't manage their money will always work for those who do.
Budget always helps you to make data-driven spending and control all type of emotional spendings.
8. Throw any excess cash on your debt.
If you get any extra amount from anywhere then put it in your loans or debt, means if you get any tax refund, car sale money, property inheritance from a family member, or get any bonus then try to put all these money on your debt not on enjoying.
Because you only enjoy when you do not have a tension of money.
Conclusion.
All these are some tips to make you free from all type of debt and all the because today a very big amount of country goes into debt and peoples not able to pay for it. Debt is an important term for family and business and if understand the way to free from debt then you can become a part of best happy family and business.
So, try to take loan or debt in very emergency and pay your debt or loan first before using the money for enjoyment pay it for debt.
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