The many paths you must take to achieve financial independence.

There is a very simple calculation that credit companies use to calculate what you can borrow. The trick is in reversing this algorithm so you may use it to your advantage. Note that this method will not, in any way, harm your credit and will actually help it in the long run. These steps will help you get out of debt with only a minimal added amount that you will not even notice.

The steps to get out of debt are as follows.

1) Calculate what you have left over after you month's expenses and put aside 10% of that. It doesn't matter if it's only $10 it will work.
2) Add that 10% to the debt with the lowest balance's minimum payment. Pay the minimum on all other debts.
3) Once the debt with the lowest balance is paid, take the minimum payment, alongside that 10% of what you had left over after expenses, and add it to the next lowest debt's minimum payment.
4) Simply repeat the process of adding the minimum payments and the 10% of what you had left over after expenses to the next lowest debt in line.

Lets see this in action, I will not even calculate progress before it is the next debt's turn to be targeted.

Let's assume that after all of your monthly expenditures, you have $100 left over each month. 10% of this is a mere $10. Let's also assume that you have $150,000 in debt. $110,000 for the house, $30,000 for your vehicle, and another $10,000 spread between two credit cards. The first credit card has $4,000 and the other has $6,000. The minimum payments for the cards will be $40 per $1,000 debt for the sake of argument. I will not calculate interest since I am not calculating progress before the debt is targeted.

Your minimum debt payments are as follows:

Debt payment

Card w/ $4,000 bal $160

Card w/ $6,000 bal $240

Vehicle $400

House $900

Total monthly payments to debt= $1700

Note: The first debt is always the hardest to get rid of, so if you can do more then %10 on this one, it's always better.

First Debt
The minimum payment is $160 for the $4,000 debt. Add the 10% and you are making a payment of $170. With a payment of $170 this debt will be eliminated in 23.5 payments.

Second Debt
Now, here is where the magic happens. The minimum payment of the second lowest debt is $240 with a balance of $6,000. Add the $170 you were paying on the other debt and you are making a payment of $410 without paying anymore then you were while targeting the first debt. With a payment of $410 a month this debt will be eliminated in 14.6 payments.

Third Debt
The third debt is the vehicle. The monthly vehicle payment is $400. Add the previous payment from the last debt, which is $410 to this monthly payment. You are now paying $810 per month to this debt and it will be eliminated in 37 payments.

Fourth Debt
The fourth and final debt is the house. The monthly payment for the mortgage is $900. Add the $810 to the $900 minimum and you are now paying $1710 per month without even paying anymore then you were previously. With a payment of $1710 per month your house will be paid off in 64.3 payments.

As you may have figured I have just shown you how to pay off $150,000 in debt in only 11.6 years with only $10 extra to put in each month.

Switching your credit card debt to zero interest credit cards and refinancing to a lower interest rate mortgage takes a very high credit level these days, but you can save tons of money by combining the two methods. You can also use some very fast, and yes, legal methods to raise your credit. I recommend a specific e-book that I have read through and implimented some of the techniques and achieved better then expected results. Click here to find out more.

There are a variety of rules when it comes to putting your money in the right places. I will state the most useful here.

Rule #1) Never use a regular savings account. Savings accounts give a very low interest rate so you are better off using a money market which averages around 3-4% interest per year and you have easier access to your funds.

Rule #2) Never invest more then 10% of your funds in any one venture. This is akin to never putting all of your eggs in one basket. Many investors have been financially ruined because they invested to heavily in stocks, mutual funds, bonds, ect.

Rule #3) Make sure to only invest 10% of your money in anything that involves risk, you can easily get 10% interest or higher investing in tax liens, government bonds, or certificates of deposit. The more risk, the more potential for reward, but make sure to do your homework.

Rule 4) Compound interest is one of the most powerful tools at your disposal. Manhattan Island was purchased for $24 in trinkets. If that same $24 were put into a bank account with a 6% interest rate, it would now be over $26 trillion, or $26,000,000,000,000.

Rule 5) Oddly enough, the big money throughout the world follows a pattern with their investments. Their pattern of investing is based on solar and lunar cycles. The reason for this is because the majority of purchases are made during certain solar and lunar cycles as this affects the mood of every living thing. Look at the major stock purchases made during certain times of the year and month and then try to beat the big money to the punch by investing first.

Working for yourself does not mean that you have to quit your job. You may if that is your desire, but it is not completely necessary. A good way to start off is with web pages.

You can find plenty of "systems" advertised that guarantee that you have an unlimited income potential, and all your problems will be solved if you start a website through them. Chances are, you've seen them on late-night infomercials. Do not buy into it unless it is brand new. If you are one of the first people, you can make massive amounts of money with the proper marketing and SEO(Search Engine Optimization). Don't get me wrong; as long as the market isn't flooded, you can still make money, just not as much as they keep promising.

The only one that I recommend using specifically is
Profit Lance since they provide both extensive information, great sites, and great customer service as well as an eight month money back garentee. You also get several sites instead of just one, and it teaches you how to build your own in the process.

If you are looking to start any type of business you need to learn to steal ideas. I'm not saying to violate any laws, however, you need to look at all of the successful businesses that operate around you and observe how they conduct business on a daily basis. Take note when you see advertisements that just seem to catch your attention and write down what the advertisement said in the exact format. Normally you will have the name for the ad, the benefit to the consumer, and the call to action. Something like this will be the normal format.

Credit Secrets Revealed
Increase Your Credit Score by up to 247 Points
$20 Below Retail, Limited Time Only

(That is one of my websites but it beats throwing someone else's up there) Let's look at this carefully. The first line states what it is, normally the relevance since in the case of an internet ad, the potential customer typed in one of the words in the title, so they immediately identify with it. The second line states the benefit that a person can "increase their credit score by up to 247 points". And the third is the call to action, in this case, a discount since people with a concern for their credit are also concerned about price.

You also need to learn to give something away. In the case of the internet it is information. If you were running a school that teaches art, you may want to include some handy tips in the web page on your site regarding the class subject. If the potential student finds the tip helpful then that will spark their interest in taking the class. Giving something away will also get people talking and is one of the easiest ways that many businesses use to attract customers to their doors. Even announcing a sale on the TV or radio usually gets tons of people to flood into stores. The company is giving that discount and in turn receiving an increase in sales and revenue because people will not only buy the item on sale, but other items as well.

These days, it seems to be getting harder to get credit to buy a property, but simply put, you don't need it. If you are looking to purchase an investment property, the best ones are the bare properties sold at tax-deed auctions. A tax-deed is issued by the government when a tax-lien has not been purchased. A tax-lien is a type of lien where-by the owner of the property could not pay his or her taxes on the property. You never have to kick someone out of their home like you do with bank foreclosures, and the properties are sold for as low as the tax owed on the property.

All you need to do is call the county clerk's office for your county and ask when the next tax-deed auction will occur. Normally these are held at your county's court house. Make sure to bring the required amount for the deposit with you. Normally, you have only 24 hours to pay the entire amount of the auction price, but you're getting properties valued at over $20,000 for only around $2,000.

A word of advice is, only buy tax deed properties that have warrenteed deeds. If you buy any other type of deed at a tax deed sale, you may have to wait for up to four years to sell the property.

I hope that I have given you some very valuable information that you will be able to use and teach to your friends and family. If you follow the simple guidelines found in this guide "The many paths you must take to achieve financial independence" then you should be able to be debt free and retire comfortably, and maybe even early. I look forward to any comments or questions. Check out the following section for some books that you may be interested in.

Thank you for your time and good luck on your journey to financial independence.

Author: AurumMaximus