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Converting Debt into Wealth
a special report byRichard Boettner
www.richardboettner.com
Free 3 week course and newsletter.Subscribe toRichard's Money Minder .
The best kept secret of all time,there is no secret to building wealth.It only takes wisdom.Our true wealth is the good we do in this world. None of us has faith unless we desirefor our neighbors what we desire for ourselves.
Mohammed
We make a living by what we get, but we make a life by what we give.
Winston Churchill
 
Introduction
There won't be any great secret revelations made here. In fact, you will probably bedisappointed to realize that the fundamentals I am about to advocate are no secret at all.They are tried and true fundamentals that, when applied wisely, give you control over yourmoney. Enough control that you can direct it wisely and, even if you aren't making hugesums of money, you will be well on your way to a comfortable, wealthy lifestyle.I do not take credit for the techniques I am about to share. The steps I will explain can befound in much greater detail in books byDave Ramsey,Suze Orman,David Bach, andJohn M. Cummuta
. 
The purpose of this report is to introduced you to the techniques andencourage you to take control of your financial future by getting out of debt and on the roadto prosperity.What you have to understand first of all is that the greatest wealth-building tool you posses isyour income. To get you on pace to building wealth, you need to take back your income.Take it back from whom? From your creditors. Most of us are financially “floating” throughlife paying out most of our income in the form of debt payments. We make one or two carpayments, electronics, home furnishings, several credit cards, student loans, among others.Not to mention the never-ending mortgage. No wonder we are constantly feeling as thoughthere is too much month left at the end of the money!
A man in debt is so far a slave.
Ralph Waldo Emerson
 You can't build wealth until you have something to invest and in order to have something toinvest you have to get out of debt. According toDave Ramsey, in his book,The Total Money Makeover: A Proven Plan for Financial Fitness, debt is the most aggressively marketedproduct on the planet. And for good reason. There is a lot of profit in it! Banks know they canmake a fortune in interest rates and late fees by convincing you that you can't do withoutowning a credit card or taking out other loans for that new car, that plasma TV or themotorcycle or new car... all of which you can't afford. If you could, you would be paying cash,not using credit.If we had no winter, the spring would not be so pleasant;if we did not sometimes taste of adversity, prosperitywould not be so welcome.
 Anne Bradstreet
 
Step One:
Get out of debt! 
This may seem impossible but inPayIt Down!: From Debt to Wealth on$10 a Day by Jean Chatzkyhas atried and true method. InDaveRamsey'sbook he has a methodcalled the Debt Snowball. In a nutshell, you list all your debts, smallest to largest, and attack them in that order as aggressively as you possibly can. When one is payed, you move on tothe next thus creating a “Snowball” effect. Most people who do this are able to pay off hugeamounts of debt in 18 to 36 months. Tens of thousands of people have used these methodsto become debt free.Now I have given you a short overview. There are many more details outlined in Jean's andDave'sbook for you to make use of . For instance, before start you should have an emergencyfund, depending on your income. Another tool, creating a budget. What these authors haveto offer is indispensable and well worth the investment.Recommended books oncreating and maintaining a budget.
Step Two:
Put your money to work! 
Now that you are no longer held back financiallyby sending most of your paycheck to pay for debt,you are free to establish greater security andinvest in yourself. If you are diligently followingany of the suggestions the authors have made,then at this stage it will be time to boost your emergency fund. Now you will be able toquickly boost this to a fund that can cover six or more months of expenses.Once you are debt free and have a healthy emergency fund it will be time to start allocating apercentage of your income to retirement. It makes no sense to invest while you are in debt. You make a greater return on your money by investing it in getting out of debt. Besides, onceyou are out of debt, you will have a lot more money than you ever had before for investingand building wealth which will more than make up for whatever small amount you may haveinvested before starting this plan. At this point you will start building your retirement. If youhave children, or plan to have children, you will want to start saving for college.Some recommended books onInvesting in Yourself 
.
 “Wealth after all is a relative thing since he thathad little and wants less is richer than he that hasmuch and wants more.” Charles Caleb Cotton (1780-1832) Britishclergyman, sportsman and author. “Wealth is not his that has it, but histhat enjoys it.” Benjamin Franklin (1706-1790) American statesman, scientist andphilosopher.
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