What's up Cousins, how are you? There's nothing worse than not being able to pay off your debts, right? And sometimes it's more than having debts, because it affects our performance, our routine.
We end up taking out on people around us, on our family, we let it implicate on our results. We're stressed all day long and the debt become more than a balance due, than the debt itself. Now, the question is: how to get out of debt?
How to leave it behind? So I came up with a step by step, actually these are five steps we must follow, to bounce back. Watch this video until the end and get to know the steps you should follow through to walk the wright path for your life.
Let's go. "Rich Cousin" First of all, Cousin, if you didn't know the channel don't forget to subscribe And if you already did it click the like button because it's really important to help more people get out of debt in Brazil. Well, since today's video is a step by step for you to get out of debt, you know who's really happy ousin?
Kaique back there who will be able to witness. Are you happy, Kaique? (I don't have any debts.
) You do, man, cut it out. (I don't, but I will. ) I know you've spent it all on World Cup figures and you don't even have Neymar.
(My album isn't filled yet, Panini help me out) If anyone wants to help Kaique leave a comment, ok? Ok, so first step. First step is: you need to understand that sacrificies are required to get out of debts.
So this first step is a mental one, not technichal, ok? So you must know you'll have to compromise and sometimes you'll have to exchange a present convenience for a future convenience. If you know someone that owes 500 reais, there's no reason for this person to go to the mall buy a sneaker.
How much does a sneaker costs nowadays, Kaique? (I don't know, R$500,00, R$600,00) R$500,00 a sneaker? I was thinking 200, but, anyway, R$500,00 a sneaker.
Do you understand? There's no reason. We must compromise.
For example: you're on a bus or any transportation. There's no reason for you to listen to music, when you could be listening to an audio book that would contribute to your knowledge, to your learning and it could be monetized afterwards. So we must postpone our present convenience in order to have a comfort in the future.
Second step is: rate your debt. It's simple, but extremely important. Sun Tzu used to say: "Know your enemies and know yourself.
" And why should we do that? Because we need to know our debt and understand how big it is and what it may become if we don't pay it off now or if we don't work it out. There's a huge difference between knowing we are in debt and understanding the impacts in the long term.
Having the informations about the debts and the interest, we can think about our decisions and choose the right one. Neglecting our debts and how much it may grow is to make sure that solving this issue will take much longer. Third step is creating a spreadsheet for your budget.
Do you know who's good at it? Caique, he register every dime he spents, right? (It's true, I do.
) Really, where? How? (On Excel) Oh, you're stamering Yeah, right.
I'll pretend I believe it. So, put all your expenses in the spreadsheet, but specially if you're on this situation. Because there's no use wondering "I think I spend too much on food, on going out, on clothes, whatever, on paying debts, interest".
There's no use thinking about that when I could know exactly how I spend my money and the spreadsheet is key for that. If you want to know a little more about how to work a spreadsheet, to help you on that I'll leave the link to a video I recorded that shows exactly how to do that, ok? Do you want an example?
Let's imagine that you spend R$25,00 a day for lunch, so you have: 22 working days. . .
R$550,00 a month. Usually what do I see happening around me? It's getting close to the end of the month, that it's when your meal expense budget is renewed and you have nothing left.
Your meal allowance usually is over one or two weeks earlier. So in the beggining of the month you're eating japanese food and in the end you're eating whatever you can afford. Therefore, imagine: R$550,00 a month for lunch.
You could spend like R$5,00 to cook your own lunch at home. You would spend R$110,00 a month. Take a look at the difference, how much you save, but it's sacrifice: you must go the market, buy the food, cook it.
This sacrifice will only be possible if you're aware of the problem and of the award you'll get. For that you must have everything on the spreadsheet. Kaique, put on the screen my Instagram picture of a filet mignon and risotto meal in which I spent less than R$5,00.
Step four: exchange your debt for a low interest one. And this is additional to the other steps, because it's useless to just save money. Sometimes if you exchange your debt for a debt with lower interest rate, you can save a lot of money.
I have a note with some numbers to show you: imagine that you went R$500,00 into overdraft. In the month of may the overdraft interest rate was 12,52% a month. That means that within a year this R$500,00 debt will be worth R$2.
059,33. In five years our debt would cost us R$592. 588,77.
That is, in five years R$500,00 will become almost R$600. 000,00. Now let's think about another scenario: Imagine you went R$500,00 into overdraft.
But then you get a loan with 2,53% interest. In one year your R$500,00 debt will cost R$674,81. In five years R$2.
238,88. Can you see it? Can you understand that if you change you can save a lot of money?
It's really important that, once you identify the problem you work out the solution. You can't put off the solution. So if you realize something went wrong work it out as fast as you can.
Don't let it become a snowball. And the fifth step is to renegotiate your indebtedness. And here we may have a big problem.
You have already achieved the previous steps, but you still can't pay off. You can't save money as well, that is, you cut expenses and still owes money. Time multiplies your outstanding balance, what can we do?
Talk to the bank or the person you owe money to and try to parcel your debt or to pay it with discount. Renegotiate. Because it's the bank's concern that you pay.
So they can help you negotiating on terms that are good for both of you. Put yourself in the bank's shoes: you don't want that loss. Would you like to make a loss, Kaique?
(No) No, right? So: between charging high interest and not getting paid, and loosening up so the client can pay you, even if it's a little less, what is the best option? Usually the second one, right?
The problem is that many people miss the timing. So they don't seek for the bank when they have good conditions for a loan. They seek for the bank when they don't want to do this.
So we miss timing. Do you know when you need money but you can't get good credit? And you know when you need money and eveyone is landing on different conditions?
I'm sure this happened to you, because I see it happening all the time. So when a bank is landing and you need money you must seize the moment, right? Caixa got in touch with me to let me know they're open to renegotiate the debts.
So if you didn't pay the housing financial, for example, or your credit card bill and others you can go there to renegotiate, that is, if you didn't pay some of those things: housing financial, credit card bill, go to the bank and renegotiate so you can pay it and end this situation positively for your life and your future. Your wallet will be thankful. Then, when the bank wants to renegotiate it's recommended that you take this opportunity because, after all, what usually happens?
We get better fare. It's better renegotiating now than waiting this process to get more complicated, right? Besides, with the internet you don't have to go to the bank anymore.
You can do this with your phone and even on Facebook. If you want to do this online, you can go on this link, Caique will help me. Put on the screen, please.
But don't procrastinate. Solve this problem, better now than later. Message given.
The debt you can't pay off is not like an investment: there's no perfect timing for you to think and invest. The time is now. You can't let your debt last long.
So, remember step 2 when we rated our debt so we could truly understand how it woks and how big the debt is? It's useless to renegotiate if we can't afford to pay the portion we agreed on. It's useless to renegotiate if we still can't afford, ok?
Don' forget that. And today we have a bonus tip. What's the bonus tip?
Caique, let's see if you are good with predictions. No, you can't peek. What's the bonus tip?
Gui, bonus tip? Extra income, that's right. Bonus tip is: extra income, because sometimes you did everything you could do.
You spared everything you could spare, saved money, but there's no way out. What could you do? Extra income.
Extra income helped me a lot back in the days and I have many videos about it on my channel, ok? I show you how you can earn almost R$195. 000,00 only by extra income in four years.
You can do it from home. You can start a freelance business. There are lots of things you can do and I have a whole video about it here.
All you got to do is click right here to watch. I'll show you how to earn, in four years, R$195. 000,00 only by extra income, right?
So, if you're in debt you must: accept and face it. If you are in debt comment "I'm in debt, but I'll pay it off", ok? And if you are not comment that you are an investor and you're getting closer and closer to become your family's Rich Cousin.
And if you have World Cup stickers let Caique know, because he needs to fill his album, you know how it is. Do you have Neymar? (Yes, yes I do) Well, that's it, I'll see you on our next video.
