How To Be Smart With Your Money

Have you ever fall into the money problem cycle? That means money is always not enough. You have to borrow money but you can't repay the loans. These loans get bigger and bigger. It comes to a point when you face a decision of either paying the loans or paying for daily expenses.

If you repay the loans, you don't have enough for daily expenses then you have to borrow again. If you pay for daily expenses then you don't have enough to repay the loans, you have to borrow again also. If you are in this cycle, you are in a serious problem. How can you get out of this cycle when you are in it? It's like a rat running in the wheel. The rat keep running and running, but it is not going anywhere.

There are ways to get out of the situation. Firstly you must work on your money mindset. There are many books on "how to get out of debt" but first you must work on yourself. The strategies out there is great and it's always there. You are the one who is going to make it work. You are the one who has control over everything in your life. You create your own destiny. Therefore you also create your own financial result.

It takes some pain to get out of this cycle. It may take you out of your comfort zone. Imagine a wheel turning at a high speed. In order to stop the wheel, you must put a brake, shaft something onto the wheel. You will need to apply some force against the wheel. It will create some friction and heat. The force represents your determination, and the heat represents the discomfort that you'll be feeling.

Mentally you got to be prepared for the uncomfortable things. Physically you have to do something extra daily. Every morning, tell yourself that you want to be free. You want to break free of this cycle. Write down why you want to break free of this cycle. Finding the WHY gets your desire and commitment up. Human take action based on desire, thus boosting your desire gets you going. With commitment coming along, it gives you the mental strength to overcome discomfort.

I know how you will feel initially because I was there before. Lifestyle got to change, spending got to change, habit got to change. But hang in there, because your financial results will also change. At least mine changed.

Start by buying a small notebook. Use this small notebook to record every single expense. Record the outflow and the inflow of your money. Basically record these three things: Date. Money Used For and Amount.

Consolidate all these amounts at the end of the month. Categorize the items into meals, phone bills, coffee, entertainment, snacks etc. If you do this properly, you can have a clear view on your spending, and where did your money goes to?

Example, you may found out that you spend a huge chuck on coffee. From this you start to look at your habit from a third person view, you are now aware of your coffee habit. Can you change that habit? Either drink one coffee less a month or buy a cheaper brand of coffee.

Another example - if your entertainment spending is too high, probably it's time to cut down. Maybe start by cutting down one entertainment outing per month.

Do you believe that by making a little bit of changes to your habit, you can save up $100 - $200 a month? Use these extra to pay back your loans first. Gradually you will be able to cut down more expenses, save more. Very soon you'll discover you out of that cycle.

Of course to change a habit is not easy. It takes a bit of courage and perseverance. But I encourage you to hang in there. Nothing is as good as being debt free.


Joe is an enlightened entrepreneur starting his business with only $20. Since he has created for himself a five-figure income and 3 sources of income. Being in the training business, he has inspired thousands of people. Now he is using this blog to inspire more people http://www.inspiration-junction.com