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ThinkRichYuppiesFreeChapter

# ThinkRichYuppiesFreeChapter

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09/27/2011

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Sha Nacino | Trace Trajano

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Yuppies! _____________________________________ This book is presented to: _____________________ _____________________ 3 .Think Rich.

Sha Nacino | Trace Trajano _____________________________________ 4 .

Think Rich. Yuppies! How to Overcome Credit Card Debts and Start Becoming Truly Rich 5 . Yuppies! _____________________________________ Sha Nacino | Trace Trajano Think Rich.

“What is the one thing that is stopping you from getting out of the ‘rat race’ and onto the fast track?” one of the most common answers is debt...i hate this kind of life. It’s a variation of “Hey Trace..com When I ask the question.bank keeps calling at my office. Yuppies! _____________________________________ Chapter 8 Deep in Debt: To Control Your Debt.i thought having a credit card is great but I’m wrong coz now my debt is greater than my income.000… How will I be able to get out of this? 7 ..Think Rich.” —Anonymous’s comment on http://tracetrajano. You Set it and Forget it! “I’ve grown my debt and now it’s haunting me. I’m earning enough for my family but I have this big credit card debt… It’s ₱100.

” It’s like this: I tell you the statement. This is called the “Law of Attraction. it’s always smaller than inﬁnite.Think Rich.” What color of the elephant are you thinking of? Exactly — purple. “I’m getting out of debt. As we know in Mathematics. So if you say. That’s how the Law of Attraction works. “I am not thinking of a purple elephant. Here’s the other thing I’d like you to think about. Yuppies! _____________________________________ So take comfort in the fact that you can create inﬁnite income.” But here’s the problem: the Law of Attraction cannot distinguish or understand if you put the word “no” in front of it. “Do not think of a purple elephant” and you repeat that after me. no matter how big a number is. It doesn’t see the “no. Here’s the truth: Your past does not determine your future. I want you to be undeterred by debt and use it instead as your stepping stone to ﬁnancial success. by changing how you think now. You can change your future by changing your present. And here’s another truth: what you think about.” Then guess what? You will get more debt. 9 . comes about. I’m getting out of debt. You will attract debt because you are thinking about debt.

000 a month.000. We’re going to do a little bit of math. as one of my mentors. I just want you to get the principle.000 pesos every month. You owe Ram ₱20. but what exactly is a debt repayment program? Let me illustrate this in an example. if it’s ₱1 million per month or USD100.000 per month.000 or ₱5. 10 . This is just an example so do not think that this will only work for people who earn ₱100.Sha Nacino | Trace Trajano _____________________________________ In order to eliminate debt in your life. which is debt. Let’s say you’re a high earner. not the negative. It works in any of those cases. “You set up an automatic debt repayment program so you can focus on prosperity. let’s say you owe three people or three entities: You owe Ram.000 per month. the Hard Money Lender — maybe he is the stereotypical “bombay” doing 5-6 or whatever. which is wealth or income. Bob Proctor said. you’ve climbed the corporate ladder and now you’re earning ₱100. It can work whether your salary is ₱10.000 and you pay ₱2. This sounds very good. So going back to our example. you’ve been working for about ten years.” Focus on the positive.

You owe ₱50.000 per month for your debt repayment program. Yuppies! _____________________________________ You have a Visa credit card at 36% interest.000 a month. You are in deep debt in this example. You actually owe more than what you earn every month.000 from MasterCard.000 a month You owe ₱50.Think Rich. So let’s say you are able to allocate ₱10. I’d like you to do a little bit of math.000 and you need to pay a minimum amount of ₱1. Calculate the “Debt Cash Strain Factor” (DF) DF = Loan Balance Minimum Payment Lowest DF gets paid off ﬁrst 11 .” This is your total balance divided by the minimum payment you need to make on a monthly basis. Calculate what I call the “Debt Cash Strain Factor. Minimum payment is ₱2.

MasterCard has 25 and Visa has 50. except for Ram.000 = 25 P2. I’ll explain why. The Debt Cash Strain Factor (DF) is 10. you owe Ram ₱20. So in this example.000 12 .Sha Nacino | Trace Trajano _____________________________________ And what I want you to do is pay off the debt with the lowest Debt Cash Strain Factor ﬁrst. The idea here is you pay all of them the minimum monthly payment required.000 = 50 P1.000 a month. to whom you’ll have to pay more than the minimum amount.000 MasterCard: DF = P50. Ram: DF = P20.000 but you pay him ₱2.000 = 10 P2. you’ll be able to pay off your debts a lot quicker than you think.000 Visa: DF = P50. By doing it that way.

We don’t want you paying the minimum only. ₱2.000. it will take you forever to pay off your debt.000 for Ram. ₱1.000 per month but you need to pay a total of ₱5. is P1. 13 .000. But notice that since you now owe Ram ₱15.Think Rich. The interest due. And then on Month 2. your minimum payment should go down as well. When you pay Ram ﬁrst. you can pay him another ₱3.000.000 (that’s the minimum he requires).000 for Visa.500. you do the same thing. Yuppies! _____________________________________ Recall that you allocate ₱10.000 for MasterCard) as your minimum payment to all three. remember? That means you’ll be paying him ₱5.000 because you have paid ₱5. Because your total principal has gone down. In addition. if you do the math. If you do that. It would be a mistake to pay only the minimum. you pay him ₱2.000 (₱2.

500 pesos and your monthly interest due is only 950 pesos.000 P2.500 MC P50. Now. you only owe Ram 9. On Month 3.000 P1. So can you see how your debt gets paid off a lot quicker? 14 .500 And then on Month 3.000 P1.000 --- Additional P5.Sha Nacino | Trace Trajano Introduction _____________________________________ Month 2   Balance Payment Ram P15.000 --Visa P50. notice this. you do the exact same thing. Now you can pay Ram even more in terms of principal.

000 --Visa P50. By the time you pay off MasterCard. basically by Month 6. 15 .000 in additional principal payment.000 --- Additional P6.500 P 950 MC P50.Think Rich. you will have to pay ₱10.000 a month for Visa. You can now allocate your payment towards paying off the next one. which is MasterCard.050 If you do the math. Ram would have been paid off. you should be paying ₱7.000 P2. Yuppies! _____________________________________ Month 3   Balance Payment Ram P9. Instead of paying ₱2.000 P1.000 pesos only.

very powerful. what if I really made a lot of ﬁnancial mistakes and I can’t even afford to pay the minimum payment anymore?” Well.000 --- Can you see now how you can really accelerate paying off your debts by doing it this way? It’s a simple technique.Sha Nacino | Trace Trajano Introduction _____________________________________ Month 6 Ram Balance Payment Additional ---MC P50. there are several things that you can do.000 Visa P50. 16 . and it works! But what If you come up to me and say “Hey Trace.000 P1. It’s very.000 P2.000 P7.

no dinner out. It will help you to also get rid of all the clutter in your house as well. Postpone that expensive vacation or that gimmick. it does work in the Philippines and I know because a relative of mine did this. I owe you ₱50.000 a month. no.000 now and consider all the ₱50. Why not try approaching one of the credit card companies to whom you owe and renegotiate your debt. Opt for free or cheaper place of recreation. he did this not just once but several times across the different credit cards he had. As an example. Yuppies! _____________________________________ Step 1: Cut down on living expenses Forego that grand wedding you’re planning.Think Rich. Make it simple.” Well. you can call and say “Hey MasterCard. So offering them a big chunk of money versus their receiving payments in little increments 17 .000 debt gone?” Some of you might be thinking. No movies. Step 2: Renegotiate the debt. If you can sell some of those things or gadgets that you’ve accumulated over the years. do it. seriously cut down on a lot of things. What if I offer you ₱10. that doesn’t work in the Philippines. “Trace.000 and I pay you ₱1. And in fact. For a while.