Erasing debt does not have to be complicated.
In fact at its basic core it is about realizing that the things you really need are not that much and most items fall into the "want" category.
Here are some concepts to consider to Erase Debt by Realizing Your Needs Versus Wants.
Needs Needs fall into three basic categories: food, shelter, and clothing.
Basically you need to earn enough money to cover these three categories.
1.
Food - This is the one category that you will always have to pay for.
While you can stockpile some basic staples, for the most part you will always have to purchase food stuff to feed your family.
2.
Shelter - Whether you rent or have a mortgage, you are paying for shelter every month.
If you are among the lucky 2% of the population that owns their homes outright, congratulations, you do not need to earn income for this category other than to pay your insurance and property taxes.
3.
Clothing - When it comes to clothing, the truth is that you probably have enough clothes to last you many years.
If you are frugal, you probably have some basic shirts and pants that you wear all of the time.
So the only clothing you may need to purchase would be clothing for your ever-growing kids.
4.
Beyond this I would add one other need - transportation.
Some will argue that a car is not a need.
But most of us don't work within walking distance of our place of work.
And if you can't get to work, you won't be able to make money to pay for your basic needs.
So you will need money for some sort of transportation.
Whether that is a car, fares for public transportation, or bicycling to work, you will need money for some sort of transportation.
This doesn't mean you have to buy a $40,000 SUV.
A $2000 used car will suffice here.
5.
Health care costs.
One additional need would be medical care.
If you need medicines or medical treatment then you need income to cover this basic need too.
Wants So what are wants? Anything else that does not fall into the above five categories under needs.
That's right, anything else you purchase is just a want.
TV's, radios, furniture, coffee pots, most cars, fancy clothing, high-priced sneakers, cell phones, satellite or cable service, most Christmas gifts, are all wants.
You will work your tail off trying to accumulate things.
To accumulate your wants.
And most people will go into debt trying to purchase these wants.
Just think of it.
If you focus more effort on ensuring you have your basic "needs" and not "wants" then you can focus on building up true wealth.
Realize that you don't need most of what you have.
Once you have grasped this concept, everything else should fall into place.
Beyond your basic needs you can save the majority of your money.
Erase debt and you will eliminate all of the wasteful spending on the wants side of the equation.
Which means you can then build true wealth and never be in debt again.
In fact at its basic core it is about realizing that the things you really need are not that much and most items fall into the "want" category.
Here are some concepts to consider to Erase Debt by Realizing Your Needs Versus Wants.
Needs Needs fall into three basic categories: food, shelter, and clothing.
Basically you need to earn enough money to cover these three categories.
1.
Food - This is the one category that you will always have to pay for.
While you can stockpile some basic staples, for the most part you will always have to purchase food stuff to feed your family.
2.
Shelter - Whether you rent or have a mortgage, you are paying for shelter every month.
If you are among the lucky 2% of the population that owns their homes outright, congratulations, you do not need to earn income for this category other than to pay your insurance and property taxes.
3.
Clothing - When it comes to clothing, the truth is that you probably have enough clothes to last you many years.
If you are frugal, you probably have some basic shirts and pants that you wear all of the time.
So the only clothing you may need to purchase would be clothing for your ever-growing kids.
4.
Beyond this I would add one other need - transportation.
Some will argue that a car is not a need.
But most of us don't work within walking distance of our place of work.
And if you can't get to work, you won't be able to make money to pay for your basic needs.
So you will need money for some sort of transportation.
Whether that is a car, fares for public transportation, or bicycling to work, you will need money for some sort of transportation.
This doesn't mean you have to buy a $40,000 SUV.
A $2000 used car will suffice here.
5.
Health care costs.
One additional need would be medical care.
If you need medicines or medical treatment then you need income to cover this basic need too.
Wants So what are wants? Anything else that does not fall into the above five categories under needs.
That's right, anything else you purchase is just a want.
TV's, radios, furniture, coffee pots, most cars, fancy clothing, high-priced sneakers, cell phones, satellite or cable service, most Christmas gifts, are all wants.
You will work your tail off trying to accumulate things.
To accumulate your wants.
And most people will go into debt trying to purchase these wants.
Just think of it.
If you focus more effort on ensuring you have your basic "needs" and not "wants" then you can focus on building up true wealth.
Realize that you don't need most of what you have.
Once you have grasped this concept, everything else should fall into place.
Beyond your basic needs you can save the majority of your money.
Erase debt and you will eliminate all of the wasteful spending on the wants side of the equation.
Which means you can then build true wealth and never be in debt again.
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