Getting out of debt appears to be great advice in this situation. On the surface, it appears to be due to the fact that people should not be piling up consumer debt or devoting enormous quantities of their money to automobiles that they cannot afford. But what does it mean for an independent business owner? I'm aware that my former upline instructed our group on how to get out of debt. However, I believe that my prior uplines were acting in their own self-interest when they taught me this. Allow me to translate what I believe they were trying to say:
"You should avoid taking on any debt because it will limit your ability to purchase additional PV and tools. If you have debt, it has a negative impact on my cashflow."
Ironically, despite the fact that many, perhaps the majority, of IBOs are trained to "get out of debt," the end outcome is often more debt. There is greater debt as a result of the increasing cost of items and tools on the market. How many families truly spend $300 a month on household supplies (the approximate cost of 100 PV)? After there comes the additional expenditure of tools that can range from $150 per month to more than $500 per month depending on whether the IBO is married or single, as well as the level of devotion the IBO has to his or her efforts to be "successful." As a result, independent business owners are now spending at least several hundreds of dollars that they had never spent before.
The majority of IBOs, particularly new IBOs, make less than $50 a month on average. In fact, earning $50 a month in this business would set you apart from the rest of the pack. The majority of IBOs make less than $20 a month. Nearly all "serious" independent business owners operate in the negative and never generate a profit with that amount of income and the expenses I outlined above (tools = voicemail, books, standing orders, and functions), according to my research. IBOs can only make money if they sell Amway items like crazy (which I have never experienced) or if they sponsor enough downline to cover their losses. The only people who have truly achieved success are those who sell the tools.
The reason why I believe that my former uplines (who are still in WWDB and appear to teach the same things now as they did when I was an IBO) are teaching self serving advice is because, while they advised me to "get out of debt," they made an exception and stated that it was perfectly acceptable to go into debt in order to attend functions or purchase additional standing orders. IBOs were also instructed to do "whatever it takes" in order to advance to the next function or to purchase additional tools. It is for this reason that I have observed some crosslines go bankrupt and more than one couple lose their houses as a result of upline counsel. And these couples were assured that they need not be concerned since they will be able to pay cash for their properties when they become diamonds. This appears to be yet another evident falsehood perpetrated by WWDB officials, particularly those who have had their own homes foreclosed on.
Let's be very honest about this. It is considerably more likely that you will fall into debt or increase your debt as a result of your participation in Amway's system, which includes voicemail, books, standing orders, and other functions, rather than making money and getting out of debt. If you are willing to look at it objectively, the math supports your position.
Getting out from under financial obligations is a goal shared by a great number of individuals, and with good cause. Being in debt can be stressful, can limit the financial flexibility you have, and can impede you from accomplishing the goals you have set for yourself. Nevertheless, getting out of debt is not always an easy task, particularly if you have a substantial amount of debt to pay off.
To get out of debt, the first thing you need to do is take an honest look at your financial situation. Create a list of all of your debts, including the amount owing, the interest rate, and the minimum payment required for each debt. This will assist you in determining the order in which you should pay off your debts.
The next step is to make a financial plan and budget. Take a look at both your income and your expenses to determine where you may make reductions. This may require cutting out expenses that aren't necessary, such as going out to eat or canceling subscriptions. Put the additional funds toward paying off your existing debts.
Consolidating your debts is one more method you can use to get out from under your financial obligations. This entails obtaining a loan in order to pay off all of your existing debts, leaving you with just a single payment to make each month. If you have debts with high interest rates, like as credit card debt, that are difficult to pay off, this may be a smart alternative for you to consider.
If you are having trouble meeting your minimum payments, you may want to try contacting your creditors in order to negotiate a lower interest rate or a payment plan. This may be an option for you if you are having financial difficulties. A good number of your creditors are eager to negotiate with you in order to find a resolution that is satisfactory to both of you.
Maintaining one's motivation while working toward paying off debt is essential. Establish short-term objectives for yourself along the road, such as paying off one of your credit cards or reducing your entire debt by a predetermined percentage. You may help yourself stay on track by celebrating each milestone as you reach it.
Finally, it is imperative that you refrain from accruing additional debt while you are working to settle existing debt. This entails not making use of credit cards unless you are in a position to pay off the entire balance at the end of each billing cycle and not taking out additional loans unless it is an absolute need.
Getting out from under financial obligations is not a simple task, but it is doable with enough commitment and self-control. You can achieve financial independence and lead a life that is less fraught with worry if you make a plan and then adhere to that plan.
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