– Maureen Rhea, CPA,sent through FB
”Paying your Debts is already a form of Investment”
Believe it or not, Getting Out of Debt is a good investment and having a good reputation is essential in business and investing. I worked for the biggest high-speed internet provider in the U.S. which provides the fastest connection among others and I’m in both tech and sales.
When we have new customers who want to subscribe to our services, we screened them through credit check through their social security number. Companies profile them through credit scores and that’s how they gauge them in getting loans and other financial leverage. I even talked to an OFW who told me that to be able to make your life easier in the U.S., you just have to maintain a good credit standing.
Good credit standing gives you a good night sleep. Here in our country, we have a different process but without having much debts can get you out of many troubles. Few years ago, I promised myself that I will not borrow even how small the amount is not unless it’s for business purposes. Borrowing is a bad habit and it’s all complimented with our impulsive behavior.
I’m not against using of credit card, it is just I’m not a fan of it. Spending through credit card is using the money you haven’t earned yet and it gives you a high price tag in return. With the convenience it gives you, if you fail to pay it on the allotted time, you’ll gonna pay a very high compounding interests in the company’s favor. If you have a credit card, my financial advise is to use it responsibly.
“You can’t Get Out of Debt by Paying it from another Debt”
Read my blog on How I Escaped From Being Broke to Become an Investor.
“There’s only one Good Debt. When you use it for Business Purposes”
Before setting up your business, build first your emergency fund to use for this purposes. Have a 3-6 months buffer funds. A Singaporean business tycoon told me that he made his emergency fund good for one year so that if his business fails, he can still have one year to look for a job.
“Debts can’t be use to Invest”
“Getting Out of Debt needs Action Plan”
Getting Out of Debt is a personal decision and it needs a timely application. Borrowing is more on behavior and to turn against it is to change our mindset. I knew somebody who always become sad when she doesn’t have money and ends up borrowing and borrowing all the more. It is never too late to turn things around! Once you were able to get out of Debt, you’re one step way to your Financial Freedom!
Kindly read this blog The Art of Borrowing to learn more on how to live a Debt-free life.