__________________________________________________________________ Making Lives Simpler Practical News and Tips for Living the Life You Truly Desire __________________________________________________________________ June 2001 Volume 5 Issue 4 __________________________________________________________________ IN THIS ISSUE: I. Eliminating Debt II. 5 Quick Tips III. 5 of Their Tips IV. References V. Just Wanted You to Know _____________________________________ I. ELIMINATING DEBT In my last newsletter, I talked about good stewardship of our possessions. One important aspect of that stewardship is the way we treat money and acknowledge what it can do as a part of our lives. The level of abundance and prosperity we enjoy is directly tied to our attitude toward our finances and our willingness to take responsibility for them. Unfortunately, not everyone has learned wise money management skills growing up. For millions of people in this country debt, sometimes crushing, is the result. When one is in debt, the topic of money can be a huge, fearful obstacle. It can drain one's energy, weaken one's self-esteem and create distractions from taking the very actions that can result in eliminating this burden entirely. Making the decision to look squarely at burdening finances and honestly evaluating the personal toll they're taking can be challenging. Deciding to do whatever it takes to get out of debt and reclaim your life can be enormously powerful. One day several years ago, my stepson, Craig Buell, did just that with remarkable results. Here's how he tells it: "After college, I got a great job that paid very well. It was my first chance to enjoy my own abundance, and I did. I spent money on everything and everyone. I gave little thought to if and when this all might end. Unfortunately, in the midst of this great new lifestyle it did. The company folded and overnight, I had zero money coming in. My immediate solution was just to pull out my credit cards and charge everything - groceries, gas, clothes, restaurants, entertainment, whatever. "Then a get-rich-quick sales job presented itself. I was told that, within a few months, I wouldn't have to worry about my debt any more. With that assurance, my then established rate of spending continued. It didn't seem to take very long before I was over $6000 in credit card debt with another $3000 in car payments. One month later, my paycheck from my new hot job bounced! Again, no money coming in and a debt that was bigger than before. "During a visit with my dad and Linda, I told them what had been going on. They were extremely understanding, although I'm sure a little concerned about the position I had gotten myself into. We talked a lot about financial planning, strategies and responsibilities. They offered some sound advice and one of the things they gave me was the book, 'The Richest Man in Babylon.' What an eye-opener! It confirmed that I wasn't doing anything at all to establish my financial foundation. I began to see all the money mistakes I was making. It also showed me how I could change my present situation for the better. And that's when I made the commitment. I was going to get out of debt. "I found a job waiting tables. I worked five days a week, with double shifts twice each week. With the money I earned, I started regularly chipping away at my mountain of debt and, as the book suggested, started putting another 10% into a savings plan. I cancelled all but one credit card and put that one away for emergencies only. A big help was that I could live at my mother's home for a while so I wouldn't have any monthly housing expense. "After about 18 months, I was finally out of debt! Then I continued to take the amount I was using to pay off my debt each month, and added that to my 10% monthly savings. With that money, I started my first mutual fund. Meanwhile I continued living on the monthly amount of money I had gotten accustomed to and began to put the rest into a house down payment fund. "Once things started moving forward, it all started to move very quickly! I got a new job (which I still have) that I love. I immediately enrolled in their 401K plan putting the full 15% maximum into the account, and with my regular savings still growing, I soon had enough for a down payment on my first house. "I now own my own home which is building equity, I put money into savings each month, and I contribute to my 401K each pay period. I've gone from almost $10,000 in debt just six years ago to having a house, a $30,000 stock portfolio, and $25,000 in my 401K today. My dreams of great vacations and early retirement now seem quite feasible! Oh, yeah, I even got married to a terrific woman last year!" One comment in Craig's inspiring story is particularly important; "Once things started moving forward, it all started to move very quickly!" It's been my experience with my coaching clients that once they make a commitment to get out of debt and start taking the steps necessary, the Universe moves forward in unexpected ways to help out. Always keep in mind, you deserve prosperity and abundance, and you can have it. Linda __________________________________ II. 5 QUICK TIPS FOR ELIMINATING DEBT 1. Accept the fact that you, and only you, are responsible for your financial situation. If you're still blaming your parents, spouse, employer or anyone else, you're dramatically diluting your own power to create abundance and prosperity in your life. 2. Realize that to become debt-free, you must make a concrete decision to eliminate debt from your life and start building a financially stable future. 3. Stop being vague about your finances. Get a clear picture of exactly how much you bring in and how much you spend each month. Then develop a realistic plan to minimize expenses and maximize income to free up money to pay off debts and start saving. 4. Don't hesitate to reach out for help if you need it. In some of the books listed below, you will find references for credit counseling. But don't add to your debt; choose a nonprofit organization. There are also bankruptcy counseling and other resources offered. 5. Once you have your plan in place, the most important thing you can do is to STOP dwelling on thoughts of lack and fear. If that turmoil in the pit of your stomach begins again, immediately turn your focus to the fact that you ARE doing something, you ARE now financially responsible, and you ARE on your way to prosperity -- because you ARE! ___________________________________ III. 5 OF THEIR TIPS "Whatever you have, spend less." - Samuel Johnson "He who restrains his appetite avoids debt." - Chinese proverb "Annual income twenty pounds, annual expenditure nineteen six, result happiness." - Charles Dickens "A man who wants to do something will find a way; a man who doesn't will find an excuse." - Stephen Dolley, Jr. "Just remember...if things look hopeless...maybe you're facing the wrong direction!" - Zippy (Tom Wilson +TOMII) ________________________________________ IV. REFERENCES To find more resources or to order these go to http://www.simplifylife.com/reference.html The Richest Man in Babylon by George S. Clason (Room 4 - Get Clear on Your Finances, http://www.simplifylife.com/stratgy4.html) While this book teaches the principles of money management through the use of parables set in ancient Babylon, they are principles you can put to use today. As you read the stories you begin to understand good and bad habits in relation to money (spending, lending, budgeting, making bad investments, the importance of saving some of what you earn). How to Get Out of Debt, Stay Out of Debt and Live Prosperously by Jerrold Mundis (Room 4 - Get Clear on Your Finances, http://www.simplifylife.com/stratgy4.html) Written by the founder of Debtors Anonymous and based on the successful strategies used by that organization, this book offers a step-by-step guide on how to liquidate debts, escalate income and improve the quality of life. Your Money or Your Life: Transforming Your Relationship With Money and Achieving Financial Independence by Joe Dominguez, Vicki Robin (Room 4 - Get Clear on Your Finances, http://www.simplifylife.com/stratgy4.html) This best-seller offers a nine-step program for getting out of debt and living a more meaningful life. "The book's premise is based on life force: we drain it in order to earn more so that we can consume more. Many readers may never follow the book's prescription in its entirety, but few will come away without questioning their own priorities." -Amazon.com ________________________________________ V. JUST WANTED YOU TO KNOW My newest book has just been released. Check out my website to read about, "Panic and Anxiety Disorder, 121 Tips, Real-life Advice, Resources & More." http://www.simplifylife.com/b-panicbook.html Highly empowering while realistically powerful, this collection of valuable insights imparts the encouraging messages that "you are not alone" and that "this disorder is treatable." Written from the perspective of a panic sufferer's own special world, this unique book is a welcome addition in understanding and helping in the search for sensible concepts and realistic goals, whether you suffer from panic and anxiety disorder or know someone who does. Foreword by Brenda K. Wiederhold, Ph.D., MBA, BCIA, and Executive Director of the Virtual Reality Medical Center. _________________________________________ MORE ABOUT "MAKING LIVES SIMPLER" Linda Manassee Buell is a full-time Personal and Business Coach, and author of the audio tape, "Simplify Your Life, 7 Simple Strategies for Doing What You Love to Do." She has also recently revised her helpful eBooklet, "Simplify Your Life: 101 Ways to Create the Life You'll Love." To order your personal copy by check or credit card, just go to http://www.simplifylife.com and click on Shop the Store. Anyone is welcome to subscribe to "Making Lives Simpler." To subscribe or un-subscribe, send an e-mail to requests@lists.webvalence.com with "subscribe MakingLivesSimpler" or "unsubscribe MakingLivesSimpler" as the subject. (Be sure there aren't any spaces between the words MakingLivesSimpler.) This mailing list is confidential and will not be sold, traded, or bartered. Linda's e-mail address: Linda@simplifylife.com Linda's Website: http://www.simplifylife.com "Making Lives Simpler" (c) 2001 Simplify Life All Rights Reserved