how to pay off debt with low income [FAST & PROVEN]
Hi CF Lieu here. Now I’m a certified financial planner and
today I want to tell you two best ways to get out of debt or
to pay off your debt. Now these two methods, you know Make Your Choice But I prefer
for the second method over the first mentor. I’m glad but I’m going to
tell you the two methods regardless. Method one east no brainer and you are
actually probably all people around you are already telling you what to do, including probably your financial planner
and I’m a certified financial planner. But you know that is why I
know this method too well. But if you asked me, I would say that the method two is
more practical than method one. Yeah. So if you are not aware of that, no step one method one is a no brainer
but that is probably the hardest to do is because you had to list
all your debts one by one, itemize them in detail like
exactly how much you owe, what is the minimum Monthly v
payment that you need to pay, what it is you all what we call as the
duration of the debt Maybe it’s 18 months , maybe it is 10 years and so on and what
is the interest rate for all these debts now bay my you could be a fixed and a
flexi interest rate as well so you have to really make sure on that. If you’re not sure I urge should check
out the link below this lesson so whereby my second night game
cafe advise you on that. It’s just like small consultation
whereby you are going to your friendly neighborhood doctor to
taper flu and all that. So check on the link below
if you are not sure. Okay. Step two of this method one is to
create a plan to par down the debts. No, the part of the day you
must be real estate, right? You have to cause you your income level.
And realistically, how long would it take to
clear or the setup your debt. Now it is the set of too much of a n
two hive and they just go in and I’m not hitting that.
You’ll, you’ll be very disappointed and you will
lose the motivation to actually pay off your debt.
Some that’s could take like yours, right?
Not Months to actually pay off. So to get yourself out of that is that
you must at least pay the minimum payment and a minimum amount of each and
every of those debts that you, owe, I’ve got dog miss on your monthly
debt repayment pay the minimum amount, the school, right? It’s not the best, but it’s better than missing on
any one payment in this method. Number one is of course, change
your lifestyle. You know, when we change change you, I’m not moving to upgrade and saying
about downgrading your lifestyle and this is, you know, this is this, this three steps that are really generic
advice from every financial planner or anyone that you know, I
mean, it sounds logical. Ah, how many creative and it’s no fun at all,
right? And is adopting what I
call is a scarcity mindset. So let me get straight. Debt is not necessarily a bad pain,
right? Just because you have it
and is dragging you down, it doesn’t mean it’s a bad day. It’s only a bad thing if you are the one
only, uh, owing or debt to other people, right?
Likely the banks. Now that is a liability for people always. But imagine you turn this around
and people owe you money instead. Now the debt becomes your asset, which is why the debt that you owe
to banks very lightly is banks asset. I want you to seriously
consider method number two, focusing on paying off your
debt or getting out of that, focusing on the abundance mindset.
And what I mean by that, this is to generate more income than what
you already generating now to pay off your debt in the fastest way possible. This in fact view fast track you to
actually solve your debt problem once and for all. So look at the first
step in this method too, is to look at yourself in the mirror.
Like literally a, I’ll just wait for you to actually go
to a mirror and just look at yourself in the mirror. Yeah. The reason my goal was to
look yourself in the mirror, well not lit for leap perhaps, is to ask yourself and to
really have self awareness, what are you really good at? What are the problems that you know
you can solve for other people? Why are the things that you do eat
might be some things that you do, um, that you feel like is so easy, it’s so natural for you that other people
are finding is so hard to do what you do. So everyone has their own head and you
have to just do literally or figuratively look yourself in the mirror. Like what the what the Joker
says if you’re good at something, never do it for free.
Now the joker from the Dark Knight Batman, the movie has a very good point. You see the way I look at it is you
do not have a debt problem and no, I’m not saying poke. I’m not going to put into your lifestyle
and criticize your life style or like dizzy shared what you may in the past
cots that caused you to be saddled with debt in the first place. I’m talking about your income now a
debt problem on the second level is an income problem, which means that your income is not enough
to fall for for what you are spending. No, I don’t care if you spend
10,000 right, for a, for an LV back, if you’re earning my 50 pounds per
month, it’s no problem. You don’t. You should not judge people. We should
not just, people are based on wow, they buy expensive stuff, but who
knows? They are earning 100,000 a month. So a bag that costs
10,000 it’s not a problem. And the thing is if you do you deeper
in income problem is really a skill problem.
S K I l. L what you are doing is not giving you
income to spend on the things or lead the lifestyle that you want. That is right.
You are in debt in the first place. Now to counter that from, so you have
to nip the matter in the bud right? You have to, you have really have to go to the
root cause and solve the root cause. You need to develop and hone your high
income skill or I would quite high paying skill skill that can
pay you a lot of money. I’m not talking about illegal stuff and
all that. That’s why I want to ally say, ah, look at yourself in the mirror and
see what is your strength that for most people who don’t have the strength or the
natural talent you have and that skill is not like bouncing balls on your knees
because that still should be in demand. People are willing to pay for that and
it requires a requires detail up front investment except your time.
Now how you can do that. Now, if you know that you are an introvert
and you know that you are very good at coding, you are, you know you’re
working on software engineer, you can go to website like freelancer
or upwork and just get some side job, a side hustle to earn some money.
Now if you are an extrovert, I would say that you can tell like
you can do like you know cut time. You need trust. I laying down, oh they have to earn extra
income that will fast track. You go to pay off your debt and
get out of your debt situation. Don’t focus on your debt and the amount.
Okay? Focus on focus on a high paying skill, which you can come do the upgrade
and you continue to get better. That’s what people are willing to pay you
more for that you can comment a higher price, your service, right?
The service you are providing. Because if you focus on your debt
it’s not going to go away, right? You need to bring in the income,
the money, that that actually settle debt you see. They see money is a byproduct of
creating and delivering value to others. You don’t get money by being lazy and
you know in life you don’t get what you want. You get what you deserve.
A high paying skill, by the way, it’s not like a high paying
job. You can transfer, you know, if you can transfer your skill
in your job and get paid, get paid by clients or your own
merit, that’s good. Congratulations [inaudible] and you have a true high paying skill else. Many people in high paying job actually
had zero monetize able skills zero once they are not working in a company. But what if you don’t have
a high paying skill yet? Now you invest in yourself to acquire
it and brush up on your skill. There’s no better asset to
invest in rather than yourself. Don’t get fancy with investment class
investments strategy or whatnot. Be Fun. Invest in yourself if you don’t
invest in yourself as yourself. We’re actually building to invest in you. And the final aspect of this method too
is that logically you want to consider to pay off your debt in the
way that you listed out, right? The one that with the highest
interest rate sensitivity, that is where you want
to pay that off first. But there’s a wrong way to do it because
should look at the low hanging fruit. What I mean by that, you asked which of the low hanging fruit
where’s the debt that you can pay off the fastest and the easiest, easiest.
That means the lowest debt amount, right? You see as a human we need
to see progress, right? To get motivated to keep on doing what
we want to do is a rewarding kind of thing. That’s why, you know,
we went to go grocery shopping. There’s one requires a checklist, give a satisfaction to get this
item check one by one by one. So the thing is, as a human we
tend to think they are logical, but actually we are not willing to,
especially it comes to money. There’s a lot of emotional uh,
attachment attached to money, right? So that is all I have. I hope this
has been useful. This is CF Lieu, you’ve like this lesson.
Just, Ah, you know, I would really appreciate if you click
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