How To Pay Debt Fast

Paying off all your debt fast by leveraging the community is an unusual way. With about $38k debt owed by American on average, debt is putting us behind and down. Certainly, they are many ways to pay off debt. Yet, leveraging the power of the community is a very effective way to be debt-free if done with people who have your best interest in mind. In this article, you will learn what it takes to make it happen.

What is debt?

Typically debt is described as any money you owed to a person or a business. The keyword here is:

owe

For example, ongoing bills such as electricity, phone bills, insurance, grocery or utility bills aren’t considered as debt yet. They will become as soon as you received the bill.

Nevertheless, we can list as debt the following:

  • Mortgage
  • Student loans
  • Credit card
  • medical debt
  • home equity loans
  • payday loans
  • personal loans
  • IRS and government debt

The first step in paying your debt is being honest with yourself, acknowledging how much money exactly you owe. Do a personal balance sheet. Even though most method existing out there will take you directly into the meat of the process. You should first and foremost start with budgeting and the value of time.

Paying off all your debt fast individually

The snowball method is probably the most effective method. Indeed strictly follow these steps:

  1. Buy a special notebook dedicated to the exercise
  2. Take a day off and find a calm place
  3. On the cover of the notebook labeled it “Debt payment book”
  4. In the first page write ” My name is…. and this is my debt payment book”
  5. Skip a page
  6. On the following page start by drawing 3 columns: Column 1: list all debt you have, column 2: list the amount, column 3: minimum payment required, Column 4: timeline
  7. Then draw another table to summarize the entire information: start with the least amount and the closest deadline then finish with the maximum amount and the furthest deadline.
  8. Take a short break of 5 minutes
  9. On the following page draw a table that lists Column 1: all your source of income, Column 2: the amount, Column 3: timeline ( now vs future)
  10. Then match debt payment with income sources again starting with the smallest to the maximum.
  11. If you have just one income stream as most people, distribute your debt by aggressively paying the smallest debt and making minimum payments on the rest. Perhaps you will need to take some harsh decision about your lifestyle and expenses. For example by cutting certain things.
  12. The remain debts usually the largest make minimum payments

Paying off all your debt fast by leveraging the community

When people come together there is no limit to what they can achieve. Yet, our society has conditioned us to always fight for ourselves. As a result, when we face challenges, we tend to look toward one direction in search of a solution.  But a community-oriented approach can help us be debt free fast. So, how can we do that?

Go deep:

Family: If your Dad, mom, sister, brothers, cousins, aunt, grandparents, etc… chip in maybe $50 per month then you & your boyfriend/husband add yours. You will find yourself with more than enough money for your minimum monthly payment. Notwithstanding, The motivation here is to help all family members quickly get out of debt and build sustainable wealth. But if you think $50 per person is high think of how much is spent per month eating out, traveling, coffee, or drinks. It is all about the interest of the family and relatives. A strong family means happy people.

Credit Card Rewards: every time you use it you are accumulating points. Again you can turn out and maximize those options by asking your roommate/family every month to do purchases and accumulate rewards for all with a single card. The credit reward is then redeemed and put towards debt payment. You organize it as a circle with each member of the community waiting for their turn.

Saving accounts: Some savings account can actually yield very high-interest rate if you keep in a certain limit for a minimum duration. For example, Goldman Sack saving account interest rate is 2,25%. Then imagine if you have $50k per month that’s an interesting $1125 per month. The principle here anew with your close circle is to open an account with at least the minimum amount require and use the interest generated to put towards debt and rotate that operation for every member of the circle.

Lending Circles: In some culture, lending circles are a way of life. Every person goes through an initiation phase from childhood. More than an association of individuals, they stand by yourself each time you need them. The bound enables them to get access to financial services at an unbeatable interest rate. Nobody is left behind and aside.

Debt buddy: Find a buddy, a person that is in the same mindset as you are and motivate each other to stay on track and always call each other out. That way you will not feel alone and you will have the support system in place to achieve your financial goal. Some people need that extra push and that constant reminder to be careful with money. That is when a debt buddy comes handy. If you can’t find one you can always join one of numerous money management programs out there.

In conclusion, this method is a very fast and reliable way to be debt-free. But It requires focus and people who share common goals and values. Nevertheless no matter the method that you choose, you will need to work in the long term, as it would require patience, determination and focus to achieve your goals.

Ways To Save Money In 2019

We only start saving when we develop a mindset shift towards healthy money habits. One way to achieve that is to always balance what is important vs what is necessary. Nonetheless, here some ways to save money in 2019.

Takeaways: Ways To Save Money In 2019

In today era there is a lot of distractions, attractions, and temptations. New gadgets, products, and brands are popping up practically every second. In addition, marketing agencies are more aggressive than ever pushing contents across multiple platforms. Thus, we are hammered throughout the day with ads. When we manage to escape media coverages, we have to face society and the pressure that comes with. It is often a lost cause if we don’t have a strong mindset. One simple way to avoid being trapped is to always to take 5 seconds to ask a simple question :

Is this purchase important or it is necessary?

If the answer is important then don’t buy, if the purchase is necessary then go for it. By sticking to what is necessary we avoid making emotional, impulsive and society-oriented purchases.

Advantages:

  • Pretty easy to set up
  • Leverages the power of the community
  • Augment our emergency fund
  • Improve our moral, emotional stability and boost our confidence

Learn: Ways To Save Money In 2019

1. Your daily budget/period

Budgeting is the first start. It clarifies your money habit. But I recommend setting up a daily budget then you break it down at a granular level per period (morning, afternoon and evening). Then, you input all details in your calendar. Finally, synchronize all the information with all your smart devices. Then activates your reminder to keep track of your habits.

2. Find a uniform for work and at home

This minimalistic lifestyle will free your bank account, reduce stress and keep you on track financially.

3. Build your community

Find people who share the same value and connect with them. Swap products, recycled items, exchange used products and organize grocery group buying activities to take advantage of savings. The potential is infinite.

4. Buy really solid garments

This might sound contradicting because solid usually refers to expensive. Especially in today’s environment. Yet we all have this ugly, rock-solid pair of sneakers, shoes, shirts we bought some years ago. I remembered when I was in high school my dad gave me a pair of Salomon sneaker I wore them throughout my high school. They lasted forever. I passed the shoe to my cousin when I graduated. Today again I still have the same pants, shirts, pullover I bought 5 years ago. They might be expensive but the quality will go a long way to save you tons of money in the long run. As you won’t see any need for replacement.

5. Shop thrift store

You can find really good products at a thrift store. The thrift stores shopping movement is on the rise in the entire country.

6. Resist social pressure

Generally, we succumb to our primary impulsive buying habits because of friends, family or relatives. As an illustration, we will buy an iPhone X because this person has one or because we want to be accepted by a group. More we want to show off social status. We subscribe to 100 channels cable TV because everybody has one. Even though we only watch 2 channels per week. In essence, social norms can influence up to 30% of spending habits. I know it’s said than done. But remember at the end of the day you will be on your own with your bills. If you can’t afford to pay them the same people that were encouraging you to spend will reject you.

What Is a Medical Cost-Sharing Program?

Medical costs have an abyss negative impact in the life of average people. Hence, getting health coverage is paramount. However, there is a vast majority of people out of the look because of the prohibitive cost. Thankfully, more and more alternative options are gaining mainstream. Consequently, those alternatives strengthen communities and provide great relief. One of those is a Healthcare cost-sharing program also known as Medi-Share. The principle requires participants to pool their resources together to share each others’ medical cost.

Takeaways:

Even though, the program spurs many benefits for its members. It does have some drawbacks such as compliances with certain practices, faith, lifestyle, and culture. In addition, it does not cover all treatments. Plus a medical doctor can refuse to treat you.  Accordingly, it is important to clearly pinpoint

Healthcare sharing programs are not binding 
contractual agreements!

Nevertheless, it is a valuable alternative for people in desperate need of coverage.

Advantages of having a Healthcare cost-sharing program:

The alternative does offer some good benefits for its members. Arguably, that is why the subscription is growing very fast.

  • Cheaper than traditional health insurance: the programs function much like a regular insurance policy at a lower overall cost. Furthermore, it provides generally the same reimbursement benefits.
  • Alignment with your faith and values: many cost-sharing programs are from faith-based organizations that may exclude some services, such as abortion or birth control.
  • Leverage the power of the community: it really about the community and how well the community has your back. This a fundamental guidance of the program. Once you join the program is no more about I but you. They rely on each other for the program effectiveness.
  • Dual program option: if you can afford you can combine your personal health care plan to a healthcare cost-sharing plan.

Learn more: 

There are many programs available in the marketplace but below you will find a list of the most visible.

It is not surprising faith-based organizations lead the initiatives. Their dominance reflects the strong ties and trust between its members. A profound sense of attachment to the values promoted by the Ministries.

 

What is Carpooling ?

Carpooling is best known as the activity of making a regular journey in a single car with one or many people. Usually, two or more people come to an agreement to take turns to drive the others. However, one person can drive each commute. In addition, the model involves all sort of mobility vehicles.

Takeaways:

Carpooling is a great way to organize your commute among colleagues, classmates, neighbors, friends or even family members. Whether, it is for grocery shopping, work, school, sports games, or any social activities, this system turns out to be extremely useful and effective. Nevertheless, it is important to have everything agree upon such as the cost-sharing, the driving arrangement, driving responsibilities, beforehand.

Advantages of carpooling :

  • Increase well-being: less time driving equates to a better health condition and a better overall sense of well-being. There is growing evidence of correlation car pollution with some health diseases.
  • Save money: you will save a lot of money on car insurance, car maintenance, parking, gas, and lease every month
  • Cut down on traffic: nothing worst like traffic especially after a long day.
  • Cut down on pollution: for those concerned with the environmental impact generated by main cars on our road, carpooling will be an alternative.
  • Community buddy: one of the biggest benefits of this type of commute is the social bond and network that you creates within your community.

The math:

You share a car with your wife. She drives you to work every day and pick you up after work.

  1. Cost:
  • Buy a car depending on your budget
  • Share gas cost
  • Car maintenance cost
  • Insurance cost
  1. Savings: a conservative approach 01 car per family.
  • You get to save on car payment
  • Car insurance
  • Gas
  • Car maintenance
  • Opportunity cost

Total savings: between 30% to 40% an average per month. That is additional money in your wallet. Obviously, this will require a mindset adjustment. Also, you can estimate how much you can save with this website service https://www.rideshare.com

How to make money carpooling?

Unlock multiple benefits by driving your friends or coworker to work. Such cash, parking vouchers, gas and of course making new friends.

Washington, D.C., metropolitan area, has implemented a program that allows carpoolers to make up to $2 per day over a 90-day period for a maximum incentive of $130. Check out more information on the official website commuter connection. Your earning can increase based on incentives.

Across the country similar programs are being implemented:

    • Birmingham, Alabama, drivers make up to $70 over 90 days for taking alternative transportation or carpooling.
    • South Florida, you can earn up to $150 (depending on the size of your carpool) per month or eight free hours toward a car-sharing program in Miami if you register or are part of a carpool. More information here.
    • Near San Jose, Calif., drivers get up to $60 in free gas for carpooling. People who drive on the busy highway between Boulder and Denver can make more than $75 for carpooling or vanpooling. Check more details here.

Find carpooling members

Website such as rideshare is an awesome resource to help out. In addition RideJoy, Carpoolworld, eRideShare, Carticipate, and Zimride.

Easy tips to make ride a success

  • Establish a payment method
  • Set a meeting point
  • Agree on rules and the cost
  • Be clear about your destination, drop off point and pick off point

 


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What is Shop Sharing?

New businesses, don’t usually have enough financial resources. Thus to keep the start-up budget low many options are explored. One of the possibility is “Shop Sharing”. Basically, it means sharing a space with another business. Similar to co-working spaces with some nuances. The concept is relatively new but increasingly becoming mainstream.

Takeaways:

Rather than putting the same business outlets with the same target audience in one location as an illustration food court, complementary businesses will share one location. For instance, a laundromat that has a restaurant or a sporting outlet with a gym or a high-end clothing shop with a premium beauty shop. Those businesses are independently managed. It is very effective among small shop owners.

Advantages of shop sharing :

  • Space optimization
  • Expenses sharing: rent, utility, and others cost like ads or marketing budget. This will allow you to envision prime location.
  • Outreach: by working with other brands you benefit from tapping into their following too
  • Maximize work hours and productivity: many hands make light work, and the more people you have working together the easier it is to get the job done.
  • Prime location because of the shared space.

Wanna learn more about shop sharing:

Read this amazing article: https://www.appearhere.us/inspire/blog/collaborating-on-shop-space

 

The Mindset Shift Require To Build a Strong Community

Building a community can yield enormous opportunities for its members. Because at its core logic the success of the community = sum total of individual successes. We have numerous examples that serve as a testimonial of the ability of people to achieve collective greatness.

When people come together nothing is impossible.

Across cultures and history, we have acknowledged the effect of team prowess. Accordingly, we can highlight some:

  • Africa, Ubuntu, I am because of you. The concept does not only represent a philosophy but also a set of social norms that put humanity, collaboration at the center of everything.
  • In Israel, the Kibbutz movement embodies those values of collaboration, teamwork, collective success, and community achievements. As a result of a group of people sharing common interests and goals.
  • Furthermore, the concept of microfinance and microcredit pioneered by  Nobel Prize winner, Muhammad Yunus has dramatically improved people’s lives by leveraging the power of the community.

Takeaways:

An African old proverb says: “If you want to go fast, go alone. If you want to go far, go together“. Finding ways and opportunities to collaborate with your neighbor, roommate, colleague, family members, friends will make the community stronger. Consequently, community structures have been proven to be a strong catalyst contrary to general belief to individual progress. assessing the way we envision life from “I” to “We” will only make us happier, productive, and stronger.

Advantages of shifting mindset from “I” to “We” :

  • Makes us more likable, friendly and easily approachable
  • Connecting with like-minded people helps unlock opportunities
  • Valuable and genuine support from people strengthened communities, reduced violence and alleviate poverty

 

 

 

 

How to set up an investment club

An investment club is a group of people who pool their money to make investments. Join or creating an investment club could be the single best decision of your entire life.  The group decides to buy or sell based on a majority vote of the members. Club meetings may be educational and each member may actively participate in investment decisions. Nevertheless, as it is with all community-centered program, finding people who you trust is paramount.

Join or creating an investment club could be the single best decision of your entire life

Takeaways:


Investments clubs can be compared to mutual funds, which are investment securities that enable investors to pool their money together into one professionally managed investment. However, with investment clubs, the members of the club invest their own money and act as the management team. They are both manager and investor at the same time.

If you have a couple of dollars lying around every month, joining or creating a club could be a viable option to leverage that resource. Yet, you can start with a minuscule amount like $10.


Forming or Joining an Investment Club

  • Form a legal entity, such as a partnership or Limited Liability Company (LLC). So financial contributions can follow standard accounting rules.
  • There’s no real minimum or legal limit for the investment club membership but one club usually consists of 10 to 20 members.
  • To join the investment club, a new member will usually contribute a lump sum, then pay a pre-agreed amount, every time they meet.
  • Members will normally meet periodically, such as once per month, to discuss investment opportunities and which, if any, securities should be bought or sold. In addition to exploring investment opportunities, members will use the meeting to discuss general mater of interest.
  • It is highly recommended to work with an established investment professional or a brokerage firm.
  • Finally, the investment club should have a lawyer.
  • Always make sure you have absolute trust in all members. Do your reach and eventually hire a professional to get a better assessment of all members.

Advantages of setting up or joining an investment club.

  • Growing wealth: The club is a wonderful way to grow your wealth.
  • Social connection: It is a great way to create and reinforce social connection as the members of the club are each liable to one another.
  • Opportunity for all: There is no prior requirement. Literally, everyone could set up or join a club.
  • You get to do some investments that otherwise you will never do yourself.
  • Education and knowledge sharing is one of the best benefits.
  • Investment clubs are recognized by the Securities and Exchange Commission.

Q&A


SEC: Securities and Exchange Commission,

The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of the securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

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What is a lending club and how does it work ?

Lending clubs also refers to lending circles are networks of people who borrow money from each other on a rotating basis.  Yet each member pays the loan back on a rotation base. The loan is interest-free and can sometimes represent a very healthy amount. Specifically when the circle is very strong. As a result, it helps their members buy cars, make down payment for a house or completely pay for the house, pay tuition fees and run businesses.

Takeaways:

Lending clubs build financial inclusiveness and foster economic empowerment. In addition, they are thriving among immigrant communities. That is because generally those communities typically find themselves shot out from the traditional social system. However, because the model is entirely based on trust, members are carefully vetted and in some case, you must be co-sponsored or referred by an already member to join.

When to join a lending club?

Typically before you join a lending club, numerous steps have to be done.

  •  Have a goal: This is probably the most important aspect of the lending club. As a new member, they want to know what your goals are. You can join to help you buy a house, a car or to prepare for a vacation.
  • Members of the lending club: Never join a lending club if you don’t know anybody. Exceptionally you can pass through an agency. But make sure you trust and know each member very well. That is because you are building a strong community and relationship. If necessary do a thorough background check without any complaisance.
  •  How much is the minimum periodic contribution: The minimum period contribution is the amount of money you are supposed to contribute at every meeting.
  • Find out how many people: You need to know how many people are in the circle and appreciate the extent of your engagement.
  • The meeting period: This information is critical because it is associated with your commitment. Indeed at every meeting, you have to contribute the minimum amount required, be present. Also if you are the host depending on the type of program you might have to host all members.
  • Rules and regulations: it is important to read, understand and appropriate yourself with all the rules and regulations that govern the circle and how do you fit in?

Advantages of Lending circle:

  • Build wealth: Lending circles are not exclusively for people with no access to financial services.  In fact, most successful businessmen and women are all part of a Trusted lending circle.
  • Raising fund: The programs are a great way to raise zero interest rate fund hassle-free. Lending circles collect and lend from a hundred to thousands per day.
  • Empower communities: They help build, rebuild and improve communities because all members have the same motive and nobody is left behind.
  • Financial inclusion: The service provides banking services to people often shut out of the financial system because of bad credit or no credit. In addition, the program helps improves their credit score by reporting to the 3 major credit bureaus.

Inconvenient of a lending circle:

Like any venture, it comes with some drawbacks.

  • Lost of your money: if you happen to join a program with people who are not trustworthy. Everything you put in can be lost. You might lose a really big amount of money.
  • Untrustworthy people: depending on the power of the circle, people can really bring you a lot of trouble. Because you are essentially inviting them to your house.

How it works

  • The lending circle is formed between a group of people. The number is not set stone and it depends on the members.
  • The loan amount also depends on the members, there is no minimum amount. The members decide based on the quality of the members.

Case study:

  • Number of members: 4 people
  • Profile: all family members and relatives
  • Amount: $500 every month
  • Circle:  Every 4 months a specific person goes with $1500  that is $6000 per year. That is a loan giving away at 0%.

 


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How to buy nothing

Save money buy nothing more than a mantra is among our top priorities. But finding opportunities to do so could be hard. As a result, gift economy movements and communities can provide great relief. Hence, the buying nothing project is one of those communities. Its members are tight by shared beliefs and driven by the desire to reduce waste and limit their exposure to the consumer society we live in. Started a couple of years ago the project is gaining momentum across the globe.

It is a Social Movement Promoting Gratitude, Connection & Community. Everything is free. Learn more about the initiative by watching Jamie Carbaugh.

Takeaways:

The initiatives offer a meaningful way to build strong communities where people can give and receive, share, lend and express gratitude. Thus reducing the need for buying. Save money buy nothing is easy said than done. But if done right it can yield great benefits.

Advantages of saving money buy nothing movement:

  • Building connection: By joining the movement, you make great connections, know your neighbor more and leverage the power of the community.
  • Free: Everything is absolutely, totally free and you can find anything. Just imagine how much money you can save every year.
  • Social good: Some people in need of things they can’t afford, will appreciate the project. Consequently, the movement facilitates access to a large variety of products and services.
  • Waste reduction: The amount of waste we throw away is ridiculous. By giving them to others we reduce our environmental impact and give a second life to those products.
  • Food: This is one of the best value of the project. The members donate excess food or crops available.

How to join the movement?

To join the project simply check the website: https://buynothingproject.org/ or check on social media notably Facebook to find out if there any group near you.

How 6 People Bought a House

Buying a house is very expensive. Consequently, very few people can afford to be homeowners. However, community ownership or co-buying could be a credible alternative. In this video, 6 people leveraged the power of their community to buy their dream house in their dream city.

Takeaways:

The concept definitely comes with some challenges but if done right with the right people, the advantages are enormous. Moreover, the option is probably one of the last chances many have left to be a homeowner.

Advantages of co-buying a property:

  • Loan eligibility: One of the biggest advantages of co-owning a property is that it increases loan eligibility.
  • Loan repayments: It is easier to repay the loan if there are two people or more paying off.
  • Tax Benefits: In order to claim tax benefits all-owners must apply for a joint home loan to claim a deduction.
  • Savings: The down payment is less
  • Wider Choice of Homes: When you pool your cash with a friend or family member, you’ll find that your options for where you can live increase considerably.
  • A good way to build wealth: If the operation is successful it would enable co-buyers to build up home equity and possibly expand the operation to other properties.
  • Shared expenses: Monthly utility bills, annual taxes, and insurance payments, and maintenance costs among other bills are all shared.
  • Fight loneliness: Socially provided you all get along well, you will always have someone to hang out with and provides support.

The math:

You want to live in a good and safe neighborhood. Trendy with social activities and positive vibes.

  1. Cost:
  • The property will cost you a fortune
  • Down payment
  • Mortgage Fees
  • Home maintenance fees
  • Home remodeling and renovation to provide privacy to all. For example multiple exit doors and private bathrooms.
  1. Savings: a conservative approach
  • Shared bills
  • Home equity can soar because of the location of the property, thus providing some loan equity to all.

Total savings: 50%

Learn more :

https://www.nolo.com/legal-encyclopedia/cobuying-home-30290.html