Debt Control - Debt Fighting Tips, Part 6 : Keep Thinking Long Term
This is Part 6 for the series post Debt Control - Debt Fighting Tips, you can read my part 1, part 2, part 3, part 4 and part 5 by clicking on the links.
Debt Fighting is a long journey to everybody. You’re not going to be success in overnight, but if you don’t give up you will success. Please prepare your mind that you are going to have some difficulties, but that’s ok, your future will be bright. Keep Thinking Long Term.
Debt fighting tips number 5 : Keep Thinking Long Term
As I said, it isn’t an overnight process to fight debt, and you have to keep an eye on your destination. It probably will take few years to be success and at this time keep thinking long term is very important. Your goal for the future, things you need to get in your future, financial status that you dream will give you power to take actions and continue. So take some times, sit down, and think about what you want to get in future, make decision and take action. No matter what happen and how difficult it is, just keep thinking long term - Your Future.
When we spend our money, we also must think long term. What does it mean? Let me give you a little example.
Christmas is around the corner, you want to get a Big Screen TV for this Christmas. You pay $2000 with credit cards that charge 20% interest. You pay the minimum monthly payment of 2 percent of the balance. So you have to take 40 years to pay off the debt and costing you more than $8000 of interest. So if you can think in long term, the day you buy your big screen TV at $2000, you probably will know it will more than $2000. So does it worth it at that time?
What if you take the $2000, in cash and invest it in a fund that can give you 2% monthly interest. So the story will be different. For the same time, you can get back more than $8000 of interest. Then at that time you can buy your big screen TV with CASH!
The point to think long term is you must think and plan, do some math before you spend your money. Delay your gratification first and you will get even more after this.