The Reason Why we Get Into Unwanted Debt

The Good Book says: "Do not wear yourself out to get rich; have the wisdom to show restraint." Proverbs 23:4.

Well, this is King Solomon, the wisest and wealthiest king that ever lived, telling about his experience when it comes to getting rich.

I realized, in my own life, that I have been trying to get rich. I've focused on trying to get rich. That's not bad isn't it. Everyone wants to get rich. So why am I telling you this?

I got into big debt trying to get rich.

The Plan
One day, a friend visited us in our office. She came with the sales representative of a big real estate company selling condo units. I was called by my partner to that meeting. The sales pitch was this: buy a unit which cost about P1.9M, pay the reservation fee of P20K, then pay the 10% downpayment in 18 months just in time for the building to be finished, thereafter, pay the balance.

The plan was to have the unit rented and use the money to pay the monthly amortization. So it's self liquidating. A passive income in the making. Any investor can see that.

The Dotted line
So I signed on the dotted line. The only problem was, the money I was expecting, an increase in my salary didn't come. So, I had to borrow to pay for my monthly downpayment. I got over that in 18 months on borrowed money.

Here comes the balance. I applied for a loan, I was only given 70% of the amount I need to pay the balance. My world crumbled. I had to give up the unit and forfeit any money I paid. I had no choice.

Fortunately, my sister got interested in the unit and paid it cash. But I had to pay interest charges and the penalties that came due to delays in the payment of the balance. It was in the contract, only I didn't read it. They are in small letters.

Today, I am still paying for the penalties.

Two lessons I learned:
1. Don't be presumptuous. Study the offer and know your financial capability. I wasn't ready. I was day dreaming and wishing my increase will come to take care of the downpayment. It didn't. My income can't sustain the monthly payments of the condo unit.

2. Learn from lesson number 1.

To your debt-free life,
Jimmy

2 Things You Can Do With Debt

On my way to the office, I have breakfast at Burger King near the Rotunda in Quezon City. Why not? You see, almost daily, I bring my breakfast, which is prepared for me by my cousin. Do you want to know what my favorite breakfast is? 

My Morning Power Drink
Well, before we go there, I also want you to know that we follow a daily regimen of drinking a dose of Vitamin C, the natural way. Everyday I squeeze Twenty Eight (28) pieces of the local lemon called "Calamansi"in a glass and drink it. That's it! I learned this from Bo Sanchez in his 52 Healing Habits. My wife and I take 28 pieces of Calamansi (local lemon) each almost daily. This is our morning power drink! Uhmm, why did I tell you that? Why do we drink Calamansi? Well, Click this, and let Bo explain it to you better.

Breakfast
Back to my favorite breakfast, One (1) hour after drinking our morning power drink. My favorite breakfast is Fried DILIS (anchovies) with cut tomatoes and a cup of rice! Almost daily!!!!! 


Frugality
You see, I save a lot by bringing my favorite breakfast with me and eat it in my office. Savings is the issue here. If I eat at McDonalds or in this case at Burger King, it will cost me P125.00! Compared to my favorite Dilis (anchovies) breakfast which will cost me only less than P25.00! That's a lot of savings! Every centavo counts if we are serious in getting rid of our debts.


Treat for me
But that day, I can afford to treat myself for breakfast at BK. You see, in our budget, my wife and I allocated an amount for "Entertainment". The money put in this item can be used for treating ourselves or our friends. We can do this because there is a budget for it.


Two (2) Things you can do
Now back to my main issue about debt. Do you know that debt is a reality of life. If you are in debt, there are two things you can do: 
1. You can accept it
2. You can do something about it


If you accept it, you wallow in it and it becomes your lifestyle. You will have every reason why you are in debt and will be in debt. But the truth is, nobody wants to be a slave to debt and to a creditor. 


Another way is to do something about your debt. I recently had an exchange of ideas with Bradd Chaffee. I posed a question on how one can get rid of his debt if his income is not even enough to cover his expenses. He gave me a simple but practical answer: increase your income! Whoaaa! So simple yet we often miss it. 


The best way to get rid of debt, after doing all you can to reduce it, is to increase your potential to earn more money. How do we do that? SELL ANYTHING!

• Sell items that are stored in your house and have not been used for a long time
• Buy and sell item on Sulit.com.ph. I know people who makes money doing this on the internet. LAWAY lang and puhunan. Their capital is just their "Saliva".
• Recently, I attended a real estate seminar because I want to explore selling REAL ESTATE PROPERTIES. If you sell MILLIONS worth you get MILLIONS too.
• So SELL, SELL, SELL ANYTHING THAT WILL GET YOU INCREASE IN INCOME.

But many people are afraid to go into selling. Here's my recommendation: Be willing to be trained. Invest in yourself by training yourself how to get those deals that will give you increase in INCOME. I tell you, you will never be the same again.

To your debt-free life,

Jimmy

P.S. Recently, I enrolled in Jomar Hilario's Online Mentoring Club so I could learn how to blog. It's been almost six (6) months and I am getting better. This blog that you are reading is a product of what he is teaching me. I have not yet submitted this blog and monetize it through Google Adsense. Once I do that, I start earning passive income.


P.S.S. I plan to invest again in myself and plan to attend Jomar's Online Wealth Breakthrough Seminar to be held on June 28, 2011. You see I want to move to the next level and I need to be equipped to know how to SELL products through the internet. I want to bridge the gap between my skills in blogging and my GOALS, to earn extra income!!!!

Get Ready for Abundance!

Do you want to be free from debt and financial stagnation? Here's one seminar that will change your life. They say that if you want to be successful, learn from a successful person. I believe that we do not need to go through the mistakes we will commit if we do things our own way. We can avoid a lot of mistakes and hard aches if we follow and learn from those who have gone before us. 


http://www.flickr.com/photos/66335021@N00/3882793857
One successful person who have been there, done that is no other than Bo Sanchez. He's been in debt and even lost a lot of money on bad business deals. But that didn't stop him from being one of the successful entrepreneurs of our time. Today, he conducts the famous HOW TO BE TRULY RICH SEMINAR. This seminar will free you from financial stagnation and rescue you from years of financial misery.Do you know that 90% of your money problems are mind problems? Through Bo Sanchez’ transformational How To Be Truly Rich Seminar, you’ll learn how to solve your money problems by first solving your mind problems. Bo will take you through the journey towards what you deeply desire: True financial and spiritual freedom. Yes, it’s possible to get out of debt and earn passive income. It’s possible to become wealthy so you could start sharing your wealth to others.

http://www.flickr.com/photos/29650319@N06/2903513401

So here it is, you can be one of those who wants to be financially free. I’m inviting you to join Bo Sanchez in his How To Be Truly Rich Seminar. It will change your financial thinking—which will change your financial habits—thereby changing your financial life. Yes, the Seminar will bless you. 


To your debt free life,
Jimmy


P.S. Join now by signing up. The seminar fee has been marked down from P8,000 to ONLY P497 per person (first come first serve). The date is May  14,  (Sat) at 8:30 am - 12 noon.