An extract from the XTL Journals

If you missed part 1 – Know Thy Numbers and how to find your true financial position – You can read it HERE

If your budget is in the BLACK, it sounds like you have a pretty good handle on your money, Well done.

If your budget is in the RED, here are a few clues…

How to get out of debt.

A quick recap…

  1. Reduce expenses
  2. Increase income

Reduce Expenses – Stop buying things you don’t need and things you can do without. Considering selling items and cutting back expenses. This will also put some cash back in your pocket.

Increase Income…

If you work for someone else, you are limited in how much you can increase your income.

You can…

  • Work over-time, but that has family repercussions and if long-term, can cause burnout
  • Get a second job, but has the same problems as above
  • Ask for a raise – Best Option
  • Start your own business, but that can be risky and is not a short-term proposition
  • Ask family to help get rid of high interest loans and set up a repayment plan with them – Not my favourite option
  • See if a bank will combine all debt for a lower interest rate

If you are really in debt and perhaps people are chasing you for money and none of the above works for you or will even help, consider using the services of a professional budget company.

  • They will take over your finances
  • Contact the people you owe money to and negotiate better terms
  • Work with you to create a budget that works
  • And, teach you how to budget for the future

Creating a positive budget cash-flow is all about discipline and habits. Your past spending habits got you into trouble, don’t you think it is time to change your thinking around money and change your spending habits?

Being in debt can be very stressful, so, be solutions orientated, don’t be bullied by people chasing money, and don’t stick your head in the sand hoping it will magically go away.

Consider the options above and stay positive.

One more thing, DO NOT PAY PEOPLE FOR ADVICE, there are plenty of sharks out there praying on the desperate. And before you consider bankruptcy, talk to the professional budget service people.

Disclaimer – I am not a financial advisor and before you make any decisions, have a chat with your accountant. The tips above are designed to kickstart your budget in the right direction only.

Yours in positive thoughts,


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