Tips to Become Debt Free Owner

Dear Appreciated Friend,

Everyone is being affected by the current economy. There are those people you may think are rich or financially secure, but who actually may be on the edge of bankruptcy. On the other hand, those you may believe have average earnings, e.g., teachers and postal workers or those earning less than $40K a year, are financially independent and many are even millionaires! What is their secret?

We at Tony’s Body Shop are committed to bringing you and your family the latest information for your protection and well-being. This issue of our newsletter gives you some information to help empower you and your finances.

Wouldn’t you like to have cash to pay for your next car, that vacation you and your family want or the funds to pay for your child’s education without going into deep debt? Wouldn’t you like to eliminate all those interest charges that keep you trapped in a job you hate? Maybe you’d like to start your own business. How about becoming a millionaire? This is absolutely possible – just follow the principles.

Tonys Body shop voted best collision repair in Ventura County 2022

In this Issue you will learn the four principles to becoming debt free. How to:

Principle # 1. Track all your spending.

Carry a small notebook with you and write down every time you make a purchase no matter how small, e.g., that trip to Starbucks or the cleaners, gasoline or the newspaper you pick up on the way to work. Or whenever you run into the supermarket for just a “few” things and come out with a basket full. Note how much that adds up to monthly.

Principle # 2. Set financial goals for yourself and your family and develop a plan to achieve them.

Write down your goals. What do you really want to have in your life? What would you like to be able to buy? It is important to write down what you want in order to make your goals more attainable. By simply thinking about your goals you can easily set them aside and forget them. When you write them down on paper or in a computer file, they are real. What about that second home, a paid-off mortgage, a sailboat, a trip to Italy or an addition to the house? Don’t judge the possibility, simply write it down.

What if you want to be a millionaire? Save $200/month at a 9% return per year during a 40-year career and you’ll have $1M by the time you retire. If your income is $3300/month, $200 is only 6% of your income.

To realize shorter-term goals, you might start with $10,000 in an account that yields 6% return, and if you save $100 each month, at the end of 10 years you will have $112,449.50 in that account! See how you can get that first $10,000. Learn about compound interest by visiting and see how “money makes money”.

In the absence of clearly defined goals, we are forced to concentrate on activity and ultimately become enslaved by the activity.” “If the goals were taken out of sports, a bunch of people would be running around aimlessly after balls! Who would want to do that or watch that?!

Blaine Harris & Charles Coonradt

Proven Goal Setting Tips that Work:

Principle # 3. Live on less than you earn so that you can have extra to pay off your debt and invest in assets that appreciate.

This doesn’t mean you have to spend less, just spend differently. This means you pay yourself first rather than wait until the end of the month to see if there’s anything left. The trick to having a surplus for your financial goals is to pay yourself first, and then live on what’s left over.

There is no one, no matter how much they make, who can be financially successful unless they live on less than they earn.

1. Look at your debts.

If you could save $300 a month by your trimming suggested in principle #1, how long would it take you to pay off your smallest debt? Call the other creditors and tell them you are financially stretched and ask them how they might help you by lowering the rate on your bills. Assure them that you fully intend to pay off the account, but need some help right now. Most creditors will try. No one wants you to go bankrupt and not be able to pay them at all. You will be amazed at what can be achieved by asking.
Keep paying the minimum amount on those other credit cards on time. This is key. When credit card #1 is paid off take the monthly payments you were paying for credit card #1, which you aren’t paying anymore, and apply them to the monthly payments for the next credit card/loan with the lowest amount of debt.
Continue this process with each account until all debt has disappeared.

Yes, this will not happen overnight, but you will have a plan and at the same time you will be saving money and eliminating debt. By attacking the smallest debt first, then moving on to the next smallest debt, you will see results and the results will motivate you to continue.

Change your habits.

Start by cutting out a few items you normally spend a week and save that money. This might be a few Starbucks or CDs you’d normally buy. Make this a game, enroll your whole family and see what creative ways you can come up with to save what you normally spend. However, don’t forget about your goals and how saving, paying off your debts, and having a surplus will allow you more freedom to do things you and your family want to do.

Pay yourself first.

See how you can save 10% from your expenses and put that in a savings account. If your paycheck is automatically put into your bank account, then have 10% of each check automatically put into a savings account. Since you have already found items you don’t really need as discovered thru principle #1 and above, this won’t be too difficult.

Principle # 4. Learn how your money can work for you.

Once you are debt free, don’t just squander your money or you’ll be back where you began. Start spending your money on things that will appreciate.

There is much to learn about how your money can work for you. Start reading the Money Magazine or the Wall Street Journal. Take some classes. Learn about financial products that will make you money while you sleep. You’re on your way to the life of your dreams.

The people who understand money spend it on assets that generate wealth. Those who don’t understand money spend it on things that consume wealth, and thus the rich get richer and the poor get poorer

Blaine Harris

To Summarize

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