How to Eliminate Debt - the Art of War

I have just finished reading an article on Alexander the Great. It mention that Alexander doesn't have a huge army when he started his conquest to rule the known world. But, strategically he has a very diversified and well skilled army.

When confronted with a huge army, one strategy that he used is by attacking the smallest unit but yet he found most threatening first. In one case, it is the archery unit. And then he will use his mighty army to defeat the heavier unit.

I like to make the same comparison with how we can eliminate debt by using the same strategy. We can use all the resources that we have to eliminate the smallest debt but with the highest interest first. After we eliminated that debt, we can then use the resources we have to start attacking other debt is not critical. Just a thought.

Do It Now

Most desires for improvements and alternatives for action are relegated to tomorrow - and tomorrow never comes. If you want success, you must act. Success will not just happen. An excellent definition of insanity is doing the same thing over and over again and somehow expecting a different outcome. To get off the path has never provided happiness, harmony, prosperity, success, peace, or balance, you must get off the path. You must do something different. Not to do is insane.

Excerpt from "Wellness Just a State of Mind?" by Eldon Taylor

Forgive and let go

Do you consider yourself to be a victim? A victim of your circumstances? Or are you willing to assume responsibility for who you are? There are two ways to be tied up. One is to be tied, literally, by someone else, and the other is to tie yourself, figuratively, by refusing to let go of beliefs that limit your expression of the whole and complete being you are. In other words, as long as you shift resonsibility by blaming someone or something for who and what you are, you remove from yourself the power to be anything other than partial and incomplete.

In fact, as long as we blame, we effectively eliminate our ability to grow, to be in control, or to experience peace, balance, and harmony. Power to grow resides in forgiveness. Forgiving and letting go will set us free. Forgiving everyone, including ourselves, provides the opportunity to become more than we have been, which for many is but a mere shadow of our real selves.

Excerpt from "Wellness Just a State of Mind?" by Eldon Taylor

Compounding Knowledge

Everyone knows the magic of compounding.Even Albert Einstein was once amazed by the power of compounding and label it as the eighth wonder of the world. But do you know that not just money but knowledge also can be compounded over time. Try gathering as much knowledge as possible in your early years. In time, your knowledge on a particular area will grow as you grow old.

For example, if you know a thing or two about computers when you are young, the knowledge will start to grow as you start to read here and there. You will also start to notice things related to computer even without hardly trying. This is human nature that psychologist called Reticular Activating System or short 'RAS'.

Emotional Bank Account

An emotional bank account is a metaphor that describes the amount of trust that's been built up in a relationship. It's the feeling of safeness you have with another human being. If I make deposits into an Emotional Bank Account with you through courtesy, kindness, honesty, and keeping my commitments to you, I build up a reserve.... But if I have a habit of showing discourtesy, disrespect, cutting you off, overreacting, ignoring you and etc. eventually my Emotional Bank Account is overdrawn.

Excerpt from "The 7 habits of highly effective people" by Stephen Corvey

Hmmm... just realised that I always withdraw emotional account.. no wonder it's empty.. time to make some deposit asap. :)

Who took my money?

People always think that big paycheck can solve financial problem. For me, it’s partly true. The most important part before thinking and dreaming a big paycheck is to plan your expenditure.
Do you know that our expenses can be categorized into 3 parts?

1. Necessity
2. It’s Good to Have
3. You Don’t Die if You don’t Buy it

Firstly, let us look into Necessity expenditure. It is an expense that you MUST pay for it. If you don’t do it, you can lose yourself and your family. For example house mortgage payment, foods, diapers for your baby, water and electricity (utilities bill - but not ASTRO please!), charity & donation, your children school’s fees, insurance and others.

Next, It’s Good to Have expenditure. For most of people, a handphone’s bill. Books & Magazine. Annual Family vacation. Your first car that is used to go to office and for your family arrangement. Broadband connection for your home and others.

The the last and the most important category to be discussed, You Don’t Die if You don’t Buy it! It is expenses for your paid television channel - ASTRO, your second or third car, teh-tarik and roti canai at Mamak Bistro with you friends every day after work, new dresses and accessories just to follow the latest fashion on earth (which was actually also a new fashion in 1970s!) and all things that you buy and dream to have it for just for fun. And you will still alive healthily on earth even if you fail to have it.

However, different people have different needs. For me, handphone bills and broadband connection are necessity because I can’t make money without both of it. I’ve once “lost” around $5,000 - $10,000 just because I don’t pay my handphone bills earlier. Sigh. A very hard lesson for me though.

For now, just think about it seriously. Categorize your expenditure into 3 parts. Next post, you will learn how by doing these simple steps, you can reduce your debt headache, credit card burden and end-of-month financial cries, just by doing this.

excerpt from http://bicarajutawan.com/blog/?p=35