Tips On How To Deal With Problems

“It’s not the strongest of the species nor the most intelligent that survives. It is the one that is the most adaptable to change.” – Charles Darwin

 

A crucial truth we have to completely embrace about life is, nothing is static or linear. Life occurs in waves or cycles. Just look at all kinds of charts on inflation, unemployment rates, interest rates, stock market, etc. Life occurs like the waves in a chart, some up and some down with a support level. If we were to make a chart on our lives called the ‘happiness rates’ it would not be linear would it? The key point is to place our support level line in such a way that the ups and downs are not so steep.

 

One of the best definitions of the term ‘problem’ I have ever read was “a problem is a situation in which there’s a discrepancy between the present state and some goal state, with no obvious way of reducing it”. It is vital to keep in mind that there is always a solution even if it is not obvious. We just have to look for it with an open mind.

 

Be flexible and adaptable, changes are inevitable. Just think about all the changes in communication since the invention of the telephone. The speed of change will be quicker and quicker. So let’s fasten our seat belts and be flexible and adaptable. When facing a problem explore every possible solution even if it appears rather weird at the time, just brainstorm and write down everything that comes to your mind.

 

Try the solutions you have brainstormed and follow the trial-and-error route until you succeed. Use your intuition it is always a very powerful tool. The best way to do so is by asking yourself: “What is the best move to make in order to overcome the discrepancy?” Let it incubate for some time and remember what Einstein so wisely said: “Imagination is more important than knowledge”.

 

Past experiences are also a good source to even-out the discrepancy. Use events from the past that would help you with this new situation. It could be something that happened either to you or someone you know. Try also to distance yourself from the discrepancy and pretend you are the advisor. We always show more wisdom when we are giving advice.

 

Be very wary of the thought ‘I am OK, the problem is everyone else’s’. This is very tricky because we have a tendency to see what is outside a lot more than we see our most recondite feelings, thoughts and emotions. That’s fine! It must be God’s fault as He put our eyes facing the outside. WRONG! We can close our eyes more often and meditate and we will see those recondite areas and have some answers thrown out.

 

Be humble seek some advice and feedback. Talk to somebody you trust listen to what he or she has to say and be receptive and do not be prejudiced. If what you have tried before is not working try something new even if you think it is not going to work. Keep trying until you eliminate the discrepancy.

 

3 Tools Responsible For Shaping Your Destiny

“When an inner situation is not made conscious, it appears outside as fate.” Carl Jung Psychiatrist

 

Although humans share more than 99.6% DNA, we are incredibly different. Our appearances are just the tip of the iceberg. Our real and profound differences are on a much deeper level, they are in our hearts and heads. They are our beliefs, values and thoughts. So the next times you hear the words: “what counts is what’s inside” you will not only agree but understand the wisdom behind these words.

 

Most of our beliefs and values were silently built into us during childhood by people we grew up with. These were formed by our first experiences and also by the society we live in and the culture around us. Unfortunately most of us are unaware of them. We don’t even realise they are built so solidly inside us and already playing a decisive role shaping our destinies.

 

Values, beliefs and thoughts design who we really are. The ways we perceive everything around us are greatly supported by our values, beliefs and thoughts. They dictate how we see life, how we judge people and events, how we communicate, how we interpret what we hear and see. They determine our destiny for they can sabotage or support our goals.

 

Values, beliefs and thoughts are the reason we do and say things in a certain way and consequently produce the results we do. The results will of course reinforce our values, beliefs and thoughts forming a never ending cycle.

 

Our minds work to guarantee that our values, beliefs and thoughts are not contradicted. The conscious mind can only be occupied with a maximum of two things at the same time while the subconscious mind can perform zillions of tasks simultaneously. The subconscious mind commands our behaviour and our communication on all levels. It also controls the information we take in. If the new piece of information doesn’t match with our values and beliefs the subconscious filters it.

 

This process as you can imagine has quite a big impact in our lives as we will walk through life perceiving only things that are compatible with our truth and disregarding the ones that are opposite to our truth. We only see what we believe is possible. A very famous example of it is ‘The Christopher Columbus Story’. When the Columbus ships were approaching the Caribbean Islands, the Native American Indians couldn’t see them at all even though the ships were right in front of their eyes. The Shaman was the first one who started seeing weird waves over the water and it wasn’t until they actually landed on the beach that The Indians eventually saw them. The ships were so unlike anything they had ever seen before that their subconscious completely disregarded them.

 

Are you able to see the opportunities right in front of you? Or is your subconscious mind filtering them out? What are your values, beliefs and thoughts? Are they leading you in the right direction? If not, it is time for reflexion and a switch of values, beliefs and thoughts.

Out Of Debt FOREVER!

If I could show you a system which would help you pay off ALL your debts in just a few short years, would you be interested?

 

Would you believe me if I said I could show you a way to pay off a total debt (including a mortgage) of £125,000 in under 9 years?

 

What if I said I could show you a way to pay off the same debt in under 7 years?

 

All of the people I asked these questions have replied positively and of those people I personally know who are implementing the system, all are well on their way to achieving their ultimate dream…debt free forever!

 

The system which I am about to show you is really very simple and straight forward. Absolutely anybody can follow it.

 

(Note: The numbers used in this example are not in any particular currency. Therefore, no monetary sign is associated with the figures).

 

Here’s how it works.

 

1. Write out a list of all your expenses (needs vs. wants). Don’t miss anything out as this is the most important part. You need to know EXACTLY where you are before you can ever begin to get where you want to go.

 

2. Now take those expenses you have listed and separate ALL the debt from the usual monthly expenses which cannot be avoided. For example utility bills, telephone, TV licence are considered to be monthly expenses whereas mortgage, credit cards and student loans are considered debt.

 

3. Once a list of all the debt has been established, we can start to put them into a table along with the total amount owed for each debt and also the minimum monthly payment.

 

(Note: The following types of debt and figures have been made up for the purpose of this exercise)

 

1	2	3
Type of Debt	Total Debt	Min Monthly Payment
Mortgage	100,000	700
Master Card	1,200	60
Visa Card	2,300	140
Switch Card	1,800	100
Store Card	1,200	50
Car Loan	8,500	300
Student Loan	10,000	150
Totals	125,000	1,500

 

4. Calculate how many months it will take to pay off each individual debt. Take the figure in column 2 and divide it by the figure in column 3. Put this number in column 4.

 

(Note: For the purpose of this example interest rates have not been included)

 

 

 

 

1	2	3	4
Type of Debt	Total Debt	Min Monthly Payment	Col 2 ÷ Col 3
Mortgage	100,000	700	143
Master Card	1,200	60	29
Visa Card	2,300	140	23
Switch Card	1,800	100	26
Store Card	1,200	50	20
Car Loan	8,500	300	28
Student Loan	10,000	150	87
Totals	125,000	1,500

 

5. Prioritize column 4 from the least amount of months it takes to pay off the debt to the highest. Put this into column 5.

 

1	2	3	4	5
Type of Debt	Total Debt	Min Monthly Payment	Col 2 ÷ Col 3	Order to Pay Debt
Mortgage	100,000	700	143	7
Master Card	1,200	60	29	5
Visa Card	2,300	140	23	2
Switch Card	1,800	100	26	3
Store Card	1,200	50	20	1
Car Loan	8,500	300	28	4
Student Loan	10,000	150	87	6
Totals	125,000	1,500

 

Now we get to the part where we can see the debt being paid off. To help with paying off the debt quicker, an accelerator is used. The accelerator used is a percentage of your income. For this example we will use 10%, however it can be as much or as little as you like. Therefore if you earn £2,000 per month we will use £200 as the accelerator.

 

6. The Store Card payment (#1) has the highest priority so this is paid off first.

1. Monthly payment = 250. (#1 monthly payment of 50 + accelerator at 200)
2. Debt paid off in 5 months. (Total Owed ÷ Accelerated Monthly Payment)

 

NOTE: ALL OTHER MINIMUM PAYMENTS MUST BE PAID AS BEFORE.

 

 

1	2	3	4	5	6	7
Type of Debt	Total Debt	Min Monthly Payment	Col 2 ÷ Col 3	Order to Pay Debt	Accel. Monthly Payment	Mths to Pay off 2 ÷ 6
Mortgage	100,000	700	143	7
Master Card	1,200	60	29	5
Visa Card	2,300	140	23	2
Switch Card	1,800	100	26	3
Store Card	1,200	50	20	1	250	5
Car Loan	8,500	300	28	4
Student Loan	10,000	150	87	6
Totals	125,000	1,500

 

7. Once monthly payment #1 has been fully paid off you can start to pay off payment #2 (Visa Card).

 

8. 

1. Add the monthly payment from #1 (250) to the minimum payment for #2 (140).
2. The new monthly payment is now 390.
3. To pay off the entire debt of 2,300 it will take 6 months.

 

1	2	3	4	5	6	7
Type of Debt	Total Debt	Min Monthly Payment	Col 2 ÷ Col 3	Order to Pay Debt	Accel. Monthly Payment	Mths to Pay off 2 ÷ 6
Mortgage	100,000	700	143	7
Master Card	1,200	60	29	5
Visa Card	2,300	140	23	2	390	6
Switch Card	1,800	100	26	3
Store Card	1,200	50	20	1	250	5
Car Loan	8,500	300	28	4
Student Loan	10,000	150	87	6
Totals	125,000	1,500

 

9. Repeat steps 6 and 7 of adding the previous monthly payment to the next debt in sequence after each individual debt has been paid off in full.

 

The final table will look as follows:

 

1	2	3	4	5	6	7
Type of Debt	Total Debt	Min Monthly Payment	Col 2 ÷ Col 3	Order to Pay Debt	Accel. Monthly Payment	Mths to Pay off 2 ÷ 6
Mortgage	100,000	700	143	7	1,600	63
Master Card	1,200	60	29	5	750	2
Visa Card	2,300	140	23	2	390	6
Switch Card	1,800	100	26	3	490	4
Store Card	1,200	50	20	1	250	5
Car Loan	8,500	300	28	4	690	13
Student Loan	10,000	150	87	6	900	12
Totals	125,000	1,500				105

 

(Note: No other loans are to be taken out from any source as this will greatly affect the time it will take to pay off all the existing debt).

 

Calculation Summary

1. Detail list of expenses (needs vs. wants)
2. “Accelerator” (10% of income)
3. List all:
   1. Debts
   2. Balances
   3. Minimum Monthly Payments
4. Debt balance divided by minimum monthly payment
5. Prioritize least to most
6. Monthly payment #1 plus Accelerator Base
7. Monthly payment #2 plus #1 plus Accelerator Base
8. Pay minimum monthly payments except Accelerator Debt
9. Pay off Debt

 

Special Note:

This example is based upon a single person with a monthly income of 2,000 using an accelerator of 200, (10% income) and no interest added to the loans each month.

 

The accelerator figure should be adjusted to a suitable figure for each person applying this strategy. The more of an accelerator which can be used, the quicker the entire debt will be paid.

 

• A couple with a joint income may be able to pay 400 as an accelerator. If so the same debt would be paid off in 83 months or 6.9 years

 

• A person with no accelerator would be able to pay off the same debt in 138 months or 11.5 years.

 

This is a simple illustration of how to apply the strategy and the figures will be different when applying interest rates from the lender.

 

It is strongly advised to use an accelerator when using this system as interest does have a great affect in the duration of time it takes to pay off a debt when simply paying off the minimum amount each month.

 

A quick illustration of how interest will affect your payments can be seen in the amount of time it will take to pay off debt #1 using an interest rate of 1.3% per month.

 

• Without an accelerator it will take 38 months (3.2yrs) to pay off in full
  • 1880 paid in total, an extra 380 (25%)
• An accelerator of 200 will see the same payment paid off in 8 months
  • 1565 paid in total, an extra 65 (4.5%)
• An accelerator of 400 will see the same payment paid off in 4 months
  • 1525 paid in total, an extra 25 (1.5%)

By Russell Beese

www.beeseproperties.com

Tips To Get You Through The Financial Storm Unharmed

Are you feeling spooked by the latest financial news?

 

You are not alone my friend. The majority of the population are struggling to find a way to survive. When we hear that huge financial institutions are collapsing overnight it is really hard to know what to expect tomorrow.

 

You can still take control over your financial situation. However you will need to be very disciplined and determined.

 

Take some time to write down your financials on paper.

For those who are not used to dealing with numbers it is a great help to see all the income and expenses written on paper. This will also help to motivate you to take the necessary action. To see the whole picture will help you to identify mistakes and “the little excesses” – the apparently inoffensive expenditures that can be the biggest villains when you add them all up.

 

Make a list of all your income and expenditure over a month.

Be very meticulous, at least for once!  EVERY time you make a payment write it down in a little notebook straight away showing what it was for and the amount spent. Do not miss anything because things like mid-afternoon coffee or the little thing you buy when getting the newspaper are frequently overlooked. Record everything you spend AS YOU SPEND IT. Otherwise you will miss items. The reason budgets blow is mainly because of these small expenditures which people think are too small to worry about and then tend to ignore. Look out for these small payments through the month and you will see just how much difference they really make.

 

Identify where you can reduce your expenditure and put a limit on the non-essential items.

The secret to making a good financial plan is to put a serious limit on unnecessary payments and to be very disciplined to follow this limit. If you look at your notebook you will be surprised at how much the apparently inoffensive items can affect the health of your finances. There will be some payments which are not under your control such as rent or mortgage, taxes, fuel, and electricity and gas bills, but food, personal and hygiene products you can control by comparing prices and choosing different brands. For clothing and leisure you can establish a limit on your spend and stick to it no matter how fantastic are that pair of jeans or shoes, or how fantastic it might be to go out every day.

 

Establish precisely how much you can spend each week or month.

Make your plan of how much you can spend each week or month by making a list as follows:-

 

• Write down one under the other all the payments you must make which are out of your control like rent, electricity, gas, etc. and add up these items.

 

• Using your record of payments in your notebook make a plan of how you will spend any income left after paying for the non-controllable items above. Choose the essential items first such as food. This must include EVERYTHING that you can possibly spend money on including all of the small daily expenses.

Ideally your total planned spend should be LESS than your income after tax so that you have something in reserve for any calamity that might occur. However in the current financial climate just make sure that it does not exceed your net income because that is a perfect recipe for rough times ahead.

 

Now add loads of willpower and determination to stick to this recipe and you will be able to see the first rays of light when coming out from the other side of the tunnel. Hold tight!