Debt Free… How I Wish

Debt Free… How I Wish

Finding out your net worth can be both challenging and disappointing at the same time.

Recently, I started using Quicken (again) to keep track of my finances. The application was easy to learn and use and there is also an option there to find out your net worth which sparked my curious (yet slacking) mind. I really find it convenient to use accounting software for managing finances ever since running into Quickbooks in my previous job.

So I ran the “getting started” wizard and placed all (or most) of the needed information. I then started to gather my recent payslips, list of bank accounts and statements, credit card balances and other finance-related stuff which turned out to be a half-day task for a disorganized, non-accountant like myself. I was lucky I did keep them all together in a single folder but that file was somehow buried somewhere in my personal space.

By saying files and folders I meant an actual, physical folder with real pieces of paper in it and not soft copies found on a hard drive. “Elusive” was the word of the day but I was a man with a mission and nothing could stop me from finding out my net worth. I found it somewhere underneath a pile of magazines and old “unclaimed-scanned-photos” box and then got back to my PC.

So after three hours of internet-free PC work (yes, my “high-speed” smartBro connection is not working as I forgot to pay the damn thing), I managed to get a glimpse of what my net worth is.

Sadly, it turns out I’m in the red after placing all my debts and bills. I haven’t finished enumerating my “assets” (not plenty at all) and all my income streams on the list yet so maybe that will change
by just a bit.

However even if I finish putting in all my assets and income streams the results will still reflect that I’m more into debt than I actually thought. But exactly how does one keep all their debt manageable? You have bills, credit cards, credit cooperatives, your mom, brother and best friend and keeping track of all these manually can be a very boring chore.

Getting out of debt can be a very steep climb. It’s like falling into a dried out well and then trying to climb out with one hand tied behind your back. But even if your debt looks more than you can handle, no matter how complex everything may seem, there will always be a way out.

Believe me, I know I have debts, but it wasn’t until I actually wrote everything down where I could see it all in-my-face, was when I really saw the “big picture”.

On the lighter side, not having any debt can sometimes be a bad thing. It can either mean you’re filthy rich, which is rarely the case for most of us slackers, or you are not in a position to be lent anything at all as you have a bad credit standing.

The past few months has been very difficult as I had to make regular payments for each loan as I wait for my next “big” project which will put me back in the green. The inevitable regular loan payments has greatly affected my “cash flow” (if you can still call it flowing). I not a big spender. I hate shopping and never had that addiction, I don’t gamble or party real hard but certain events in the past year has forced me to max out my credit cards and have me take on a few loans.

There is no instant solution to debt much like with weight problems. You can start losing weight, by consuming fewer calories than we are used to burning up and debt cannot get any worse if you stop spending too much than you can afford.

Here’s my gameplan;

  • Keep spending to a bare minimum. Buy only what is absolutely necessary.
  • Cut down on basic utilities like electricity, gas and other costs.
  • Find more income streams (both passive and active).
  • Slowly approach a strategy to finally get rid of debt (Paying it all back).

I am hoping my cash flow improves in the next few months as I get my debt down to a more manageable level. This is also as I start to monetize a few more blogs and setup a few dozen website ideas I am thinking of.

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9 Comments

  1. Tim Ramsey says:

    I found your blog on Yahoo and read a few of your other posts. Nice blog.

    Tim Ramsey

  2. bendz says:

    last year, at the hight of my being broke, i had a negative P150,000 net worth and I was receiving as much as 30K a monthly income.

    I got into politics at 17 so managing my finances is something I don’t know about. heheh.

    Now, I don’t have a job by my net worth is back to +100,000 heheheh. It’s still a small amount but it’s better than a negative.

    bendz’s last blog post..BlogBank: Phillippine Advertising Network

  3. Bendz says:

    You can earn extra if you submit your blog to payperpost heheh

    Bendz’s last blog post..Why Manny Pacquiao Should Not Be a Role Model

  4. Wangbu says:

    Life is always a gamble, however prepared we might be. There are always obstacles to evrything we do which will just come our way and steal our sucess. We got to live with it and play with the game of life to get ourselves out of it. Solutions are nevertheles changy. Just believe we can handle it to get through.

    Wangbu’s last blog post..On a Posting Pause

  5. [...] var vcommentform = “commentform”; « Debt Free… How I Wish [...]

  6. I have the single best tool for you: A BUDGET!!!!!

    I did it (became consumer debt free) just this past month (Feb 08) by using a budget to plan out any and all spending :)

    Debt Free Revolution’s last blog post..Biggest Money Mistake – Credit Cards

  7. [...] goal of becoming debt free within the year is one of the main reasons why I joined PayPerPost. Another reason is curiosity [...]

  8. I maybe getting a decent paycheck as well but still I’m in debt no matter how I look at it.

    Working smarter is the key.

  9. buttercup says:

    I tried smorty before, is payperpost better with payments?

    buttercup’s last blog post..with all i am

  10. Thanks…

  11. Congratulations on your achievement, it really is a steep climb to being debt free.

    You’re right about havin’ a budget

    Thanks

2 Trackbacks

  1. By Get Paid to Blog - The Smorty Way | Archon Digital on March 20, 2008 at 10:56 pm

    [...] var vcommentform = “commentform”; « Debt Free… How I Wish [...]

  2. By Paid Blogging with PayPerPost | Archon Digital on April 3, 2008 at 4:25 pm

    [...] goal of becoming debt free within the year is one of the main reasons why I joined PayPerPost. Another reason is curiosity [...]

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