Motivation to Get Out of Debts

One year ago I started writing this blog about financial freedom.
Until that moment I looked at the state of my accounts, just waiting to get my bank counselor's call towards the end of the month to warn me that I had an important overdraft and I had to do something about it.

In one of the interviews with my counselor she convinced me to ask for a new credit to pay the one I already had to cover the overdraft and with the rest I could buy me some extra things.

Obviously this was a big mistake that I'm still paying for.

Instead of increasing credit costs that had to be reduced, I should had put some money aside to lower the debt.

Besides this error, I also asked for other small loans to pay the continuous overdraft.

There you have the vicious circle: you spend, you go into debt, you feel guilty and back again.

Well, this created a huge snowball debt and at that point I started looking for inspiration to get out of trouble.

Seeking financial peace

The first was start putting things in order.

Reading the book Rich Dad, Poor Dad gave me great motivation to take my finances in my own hands.

Here are some of the basic ideas I've learned from the book:

• Being independent and not to rely on the government or your boss. Some people now are asking themselves whether they'll get a retirement pension here in Europe. It is wiser to have some snap to always be financially independent anyway.
• Make the difference between good debt and bad debt: good debt is used to invest. Bad debts are those contracted to buy consumer goods or to buy a car.
• Learn personal finances: knowing how to manage money and know what your bank do with your money.
• Having assets that generate income, or invest in real estate.
• Work to learn, not for money.
• Know who you need to talk to. If you want to invest in a domain, look for the right person (the agent, banker), which has already taken this step. Do not go through a broker who does not have the perspective of an investor.

Motivation to solve financial problems

To transform these parts of our lives that have become routines we need motivation.

That is why it is best to start small, with small gestures that will help us learn new habits and see the results that encourage us to move forward.

Of course, if you are 100% motivated, go on!

No need to be an expert in finances or taxes to begin with these changes.

Kiyosaki gives very simple ideas talking about passive income and how to get assets to generate them:

1. Buy or create passive income generating assets.
2. Every dollar saved and invested is a dollar that works for you.
3. Financial freedom is achieved when your passive income is at or above your salary.

What you do not learn in school

School is only a training center for future employees.

I think he's right, because that is where they begin to create the robotic race individuals.

On the other hand it is clear that we need advanced education, particularly regarding  money, something we've never learned in school and sometimes economic problems help us see that we have to change things.

What do you think?