SAVING 35% — CUTTING DEBT 35% — EARNING 35%
BEFORE THE PANDEMIC CORONAVIRUS COVID – 19 CRISIS THE SAVING RATE WAS LESS
THAN 10% FOR THE AVERAGE AMERICIAN. NOW THE RATE IS OVER 20%. SOME ARE
SAVING MORE AND SOME LESSBUT THE AVERAGE IS THE HIGHEST IN HISTORY.
AS FOR DEBT, THE FEDERAL RESERVE, THE FEDERAL GOVERNMENT AND CORPORATE AMERICA
IS OUT OF CONTROL. DEBT DEBT AND MORE DEBT.
STARTING A HOMEBASED BUSINESS IS THE SOLUTION TO EARNING AN ADDITIONAL 35%.
WITH THE ECONOMY IN A DEPRESSION LAY OF WILL CONTINUE AND PAY CUTS RATHER
THAN PAY RAISES WILL BE HAPPENING.
THE MORE ANYONE HAVE THE BETTER OFF EVERYONE IS. IT IS ALL POSSIBLE FOR
ANYONE. LOT’S OF BOOKS GIVE ANYONE WHO CAN READ, OR EVEN LISTEN TO AUDIO
BOOKS CAN ACHEIVE WEALTH.
IT IS NOT DIFFICULT. IT IS JUST TRYING TO ACHEIVE THIS AND MAKE SMALL STEPS
AND BUILB OVER TIME ON YOUR SMALL ACHEIVEMENTS. IT HAS WORKED FOR MILLIONS
AND CAN WORK FOR YOU.
VALUE OF CUTTING SPENDING DISPOSAL INCOME
Your disposable income is necessary if you want to decrease payments to your creditors when you can no longer afford the common contractual payments.
Debt management companies use your disposable to work out what you can sincerely afford to repay your creditor commitments.
Below we have explained how to work out your disposable income for yourself should you need to reduce your debts without contacting a debt management company – that being said we would imagine a debt management company would get a better response from your creditors as they are under no obligation to accept any new payment arrangements and putting this to them through a debt management company will normally yield better results.
Work out your income.
You will need to work out your income on a monthly basis as most creditors will prefer to have regular monthly payments.
The basic to working out your income is not to take the lowest or highest amounts you might get each month but relatively an average of what your normal takes home pay would be.
This can be easily done by adding up your last 6 or 12 wage slips and diving the total by the number of wage slips you added together. For example, if you added together your take-home pay for the last six months you would divide the total amount by 6 to give a normal monthly average of your take-home.
Work out your committed outgoings
Your committed outgoings are what you need to pay each month. With things like your phone bill or water bill which you may be paying quarterly simply divide your normal quarterly bill by 4 to get a monthly allowance.
After you have added all these together, which will ensure you, have made allowances for the essential living costs we can deduct this from your monthly take-home pay. What’s left is your disposable income and is what you can genuinely afford to pay your creditors. MAKE MONEY NOW
What amount of my disposable income should my creditors get?
Your disposable income should be spread around your creditors on the basis that whoever you owe the most to get paid the most. This is normally referred to as payment pro-rata, which can be worked.
Owing to a total of £10,000 to 3 creditors with a disposable income of £200 Creditor A £5,000 Creditor B £3,000 Creditor C £2,000a Total owed £10,000
First, we need to work out what percentage of the total debts you owe to each creditor. To do this you would simply take the amount owed to the creditor, divide by the total owed nd multiply by 100.
Creditor A= £5,000 ÷ £10,000 (total owed) * 100 = 50% Creditor B= £3,000 ÷ £10,000 (total owed) * 100 = 30% Creditor C= £2,000 ÷ £10,000 (total owed) * 100 = 20% We then apply these percentages to your disposable income as follows.
Disposable income is £200
• Creditor A £200 ÷ 100 * 50 = £100
• Creditor B £200 ÷ 100 * 30 = £60
Doing things this way means each creditor would receive a payment based on the percentage of how much you owe them and how much you can afford to pay which is the fairest way of spreading your disposable income around your creditors.