As at January 2020 almost 17 million Aussies hold a combined NON-Mortgage debt of $18.1 billion according to ING research. That's $10,600 each. Financial stress will erode your resilience and mental health and thinking "happy thoughts" won't cut it. Financial stress is bad for your mental health. Disclaimer: This does not take into account your personal situation. Talk to a financial counsellor or such for proper advice (Just be sure you understand how they get paid and what their incentives are).
If you have a number of debts, some people try to pay down the highest interest rate first. Some people try to pay a little of everything, some consolidate the debt for a lower interest rate. You must work out what is best for you. Here is an option that may or may not suit your money situation. Remember the video about sub-accounts? Buckets of money? https://youtu.be/Z-ioHYTMD9Y Well, you want to include short and long term savings buckets/accounts.
1. Keep paying into your savings while paying down debt and you'll skip right over the 0 break-even point.
2. Start with the smallest debt. Smash that one, then add what you were paying to what you must pay for the next smallest. When that is paid combine both payments and add to the third smallest. Momentum will build and you should eliminate your debt faster, as long as you are not playing funny buggers with your finances elsewhere.
Speaking of which, when you donate to a charity or ministry, once it's in their hands, forget about it, UNLESS your gift is for something specific. If you represent a church or charity you must be clear as to whether the funds are general or going somewhere specific. If it is specified, and you don't have a disclaimer to repurpose if needed, you cannot redirect it. (This is not legal advice, though it is about integrity.) I've not known "God" to change His mind very often... If you don't have enough money for something, tell the congregation. Don't cry, don't sell blessings and for goodness sake don't go to the bank with pledges as a deposit unless everybody knows that's what they are, including the idiot at the bank. Just be honest and see what happens. Better embarrassment now than prison bars later. Ask me how I know that!
The strongest prison bars are in your head and it's time for a jail-break! Entertaining and engaging, inspirational, motivational speaker Trish Jenkins delivers virtual (online) and live keynotes, workshops and interviews for leaders and teams on how to build resilience, adapt to change and love leadership. She is an author on financial due-diligence, and has a book out on her prison experience after unwittingly working for a fraud in a mutual fund. Trish enables people to break out of their prisons of self limiting beliefs so they can achieve their potential in life, leadership, sales, service and business. Find out more and book Trish for your event at www.speakertrishjenkins.com Thanks for joining me today! Please like, comment and subscribe. Click the bell to be notified when new videos are up! More samples, reviews and how to hire Trish for your group at www.speakertrishjenkins.com Ministry: www.trishjenkinsministry.com LinkedIn https://www.linkedin.com/in/jenkinstrish/ Facebook @TrishTVpodcast Podcast "Build Resilience with Trish Jenkins" Instagram trishjenkinstv Click https://square.site/book/3TPK6YD6HK7E8/trish-jenkins-international to schedule a meeting by phone or online. If booking from outside Australia, use Trish's phone number +61 418 556 198 #trishjenkins #buildresilience #beatcovidblue #debt #gooddebtbaddebt #gooddebt #baddebt
