The secret to getting rich

The secret to getting rich is as powerful as it is unexciting: live below your means.
That’s it. The bigger the difference between what you earn and what you spend, the sooner you’ll find yourself with enough money to do what you want with your life.
Now, I realize that “live below your means” may sound obvious or trite. That doesn’t make it easy. It’s actually much harder than it sounds. Many of the people you see with big houses and fancy cars are up to their eyeballs in debt, which means they’re violating this basic principle. They aren’t rich at all. They’re in debt.
The challenge is recognizing that you can’t amass real wealth if you try to keep up with such people. Real wealth comes from spending less than you earn, again and again, month after month, year after year. It’s a slow and steady process. It isn’t particularly exciting. But it is the surest way to reach your biggest financial goals.

Happy debt free 2018 !!

Happy debt free 2018 !!

We all cannot be entrepreneurs or businessmen or business women.
Most of us rely on a salary to live, so with that in mind; how do we make sure that our we enjoy our time on in this world on our salary.
The sad thing is most employed people(people who earn a salary) are deep in debt. How do they get into this debt trap?
It’s simple really, living beyond our means is a sure way of ensuring you get into the dark hole of debt.
Getting control of your finances means you become realistic about what you can and cannot afford.
That is why some people end up with impaired credit records.
Contentment with what you do have, and actually appreciating it; is a habit we should all adopt.

Building wealth

You might be drowning in debt, feeling like I want to die; take heart you can get out of debt.
I was in the same position at one point, you wouldn’t believe it if you were to see me today.
Getting out of debt may require lifestyle changes.
It requires commitment, patience, goal setting. Believe me it can be done.
I am now in a position where I am looking at investing in real estate, something I had never imagined I would be able to do.
Those I want to die thoughts, change them to I am on my way to a debt free life. Once you change your mindset and take action you are truly on your way to a debt free life. I already invest in some companies on the Johannesburg Stock Exchange, imagine from having 5 debt judgments to investing in the stock exchange!

The minimalist

In 2013 while searching for financial freedom I came across these guys on the internet, Joshua Fields Millburn and Ryan Nicodemus.
They are behind the website www.theminimalists.com, and that’s when my own journey began.
Now Joshua’s story is amazing; he had a well paying job, the big house, but was in debt. So, he simplified his life by getting rid of all the clutter and debt.
These guys inspire me in my own journey to be debt free and to live life to the fullest.
I am almost there, and you bet I’m enjoying the ride.

Fixing that credit record

To fix my credit record I got a copy of my credit report from the credit bureau.
All credit bureaus(Transunion);(Experian), can give you a copy your credit report once a year.This gave a clear picture of how many accounts I had and what I owed.
It showed me which ones were in arrears, which ones were judgments and which ones were defaults etc.
This gave me a clear indication of what I needed to do to fix my finances.
When you have your credit report you can verify that all the information is correct as well.
If anything is not correct you can advise the credit bureau and they will correct the information.
I realised that making payments on time on my accounts is very important.
I also realised that I did not need all those accounts.
One or two accounts are enough to build a credit history.
You do not have to over commit yourself opening unnecessary accounts.
We often buy things we don’t really need, just because we have credit available.
You see it’s easy to spend on credit than spending your cash.
I also decided to simplify my lifestyle, basically I try to live below my means as far as possible.
Now, before I enter into any credit agreement I ask myself do I really need it.

I was blacklisted…

So there I was at 25 years old blacklisted, with 5 default judgments and many defaults against my name at the credit bureau; all hope was gone

It was difficult to accept the reality of the situation. Would I ever break free and be able to get credit to buy a house, a car?

I became depressed and could not bear the reality I was facing. I simply owed too much, how was I ever going to pay it back.

I could not even change jobs because of the listings at the credit bureau.

I was devastated. I tried short cuts to clear my name, none worked.

The stigma of being blacklisted almost crippled me and I almost lost the will to live.

In the end I decided to face my problem head on.

This meant paying every month whatever I owed. I knew it would take a long time but time flies.

I was committed to get my life back and be debt free.

I paid every month, in no time I was able to pay off some of the debts.

This gave me courage and hope that one day I would not be blacklisted.

Fast forward some years later and I have no judgments no bad debt defaults.

Hence I can say I was blacklisted once I no longer am.

It was not by magic; there is no silver bullet, I simply took a decision to be responsible for my actions.

One mistake I made at first was borrowing to pay off my debts, which never works.

To pay off debt you have to pay using your income (if you are lucky enough to have an income).

I hope you find encouragement if you happen to find yourself in a situation where you are blacklisted, you will one day not be blacklisted.

I mean I was once garnished; and in 2012 I had to appear before a Magistrate Court for failure to pay a debt I owed.

It was not an easy journey by any means, but it can be done.