4 Simple Steps to Starting On the Path to Becoming Wealthy.

Getting into financial shape does not have to be complicated. It really is not, and it takes more discipline than anything. I wrote this post to show what I did to get on the road to becoming wealthy and stop wasting money and living check to check. I found that the most important thing is motivation and determination. Once you have that and you follow these steps you will be on the road in no time.

1. Organize Your Finances. You need to know exactly what you have and don’t have. Don’t think you have to buy some expensive software to do this. You can simply use an Excel Spreadsheet. I started with Microsoft Money and found that it is way to complicated for what I was doing. There are only certain things you need to keep track of and a simple spreadsheet is all you need.

Start by gathering all of your bills, bank loan statements, credit card statements, and anything that has to do with debt. Put them all in one easy to access place. I used a folder in a file cabinet next to my computer.

Start by listing each of your debts in the spreadsheet. Include the name of the debt, the due date of each payment, the amount you paid last month, the minimum monthly payment, interest rates and the total balance of each debt. Keep track of the total debt by sub tracking what you pay each month from the total balance. I created a sample spread sheet that you can use if you are not that good with excel. Email me or comment on this post and I will send it to you.

2. Destroy Your Debts Without Destroying Your Credit. You should focus on unsecured credit card debt first. They tend to have the highest interest rates. Close all of your accounts, except one. Don’t let anyone tell you otherwise. You only need one credit card, period! And you should only use it for emergencies. If you are like I was and have 5 mall department store cards, 3 visas, and some off the wall other cards, then you are probably too far into debt than you need to be.

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