Conquering your debt will be easier to tackle when you reduce it to its lowest common denominator.
During the last major recession in the early 80s, newly married and drowning in my husband’s debt even though he had a terrific job, I sought the counsel of a fee based certified financial advisor. The advice he gave me was so simple I was surprised he charged for it, yet it is as timely now as it was then.
“You have two choices,†he said. “Increase income or cut expenses. And preferably both!â€
Today, let’s tackle how you can increase income.
Four Things You Can Do Today To Increase Income
1) Get A Raise Have you upgraded your skills, taken on new projects, handled a tough assignment, landed a new account, saved the company money or time, found innovative solutions to a problem, created a new revenue stream or in anyway gone above and beyond your basic job responsibilities which might enable you to convince your boss how valuable you are and deserving of a raise? If not, start working on one of these today. If so, write it down and present it to your boss as evidence of your value to the company.
2) Change Your Tax Status Are you getting a big tax refund—more than $1200 perhaps, and thereby gave Uncle Sam an interest free loan all last year? If so, change your deductible today and keep $100 a month or more of your own money this year.
3) Work A Second Job Can you take on a part time job, even just a few hours a week? Anything from freelancing in your field to waitressing at the local diner adds extra income. Think creatively, adversity always provides opportunity in some area. For example, consider two 60-something women in hardest hit CA laid off from their high tech jobs with almost no prospects of future employment, who have begun sprucing up foreclosed homes for a local bank. Did you know that Merry Maids was started by an out-of-work corporate executive and his wife who started cleaning houses to feed their children? They worked hard, did well, franchised and sold the company eight years later for millions. Don’t let your foolish pride rule anything out. Check Craigslist.com and other job postings in your area and talk to everyone you know to see what might work for you. And remember, even though unemployment is 8%, 92% are still employed!
4) Sell Something What can you sell? Auction unwanted electronics on eBay. Take your designer bags & clothes to a consignment shop. Revert to a one-car household – at least for a while. List your unaffordable home at a realistic price and move to a comparable rental at 30-50% less.
Next time we’ll talk about cutting expenses. In the meantime, think it over and let me know what YOU are NOT doing that you could do to make a measurable difference conquering your debt.